We regularly represent marijuana businesses that find themselves on the wrong side of an OLCC charging document. The charging document will list the particular rule or rules that the OLCC alleges the licensee has violated and always, in my opinion, lists only the most severe sanctions.
The OLCC sanctions schedule is laid out in tiers. For Category I violations, the default sanction is license cancellation. The default sanctions for lesser violations are lower. For example, the standard sanction for a Category II(b) violation is a 30-day license suspension or a civil penalty of $4,950. The standard sanction for a first-level Category III violation is a 10-day suspension or $1,650 civil penalty. The proposed sanctions cascade when the charging document includes several violations, or when the licensee has been in trouble with the OLCC before.
The first questions a new client usually asks are: Does the OLCC really intend to cancel my license? Is a settlement for something less than cancellation possible? How long can I operate my business before my license is cancelled? The answer to these questions always depends on the facts and circumstances that led to the OLCC issue a charging document.
One way to evaluate settlement