Current through Bulletin 2024-06, March 15, 2024
(1) Public
Safety Violations: $3,000- $5,000 per violation. This category is for
violations which present a direct threat to public health or safety including:
(a) cannabis sold to an unlicensed
source;
(b) cannabis purchased from
an unlicensed source;
(c) refusal
to allow inspection;
(d) failure to
comply with testing requirements;
(e) a test result for high pesticide residue
in the cannabis produced or cannabis product;
(f) a test result for high residual solvents,
heavy metal, microbials, molds, or other harmful contaminants;
(g) failure to maintain required cleanliness
and sanitation standards;
(h)
unauthorized personnel on the premises;
(i) permitting criminal conduct on the
premises;
(j) possessing,
manufacturing, or distributing cannabis products that the person knows or
should know appeal to children;
(k)
failure to follow an approved recall protocol; or
(l) engaging in or permitting a violation of
the Title 4, Chapter 41a, Cannabis Production Establishments, which amounts to
a public safety violation as described in this subsection.
(2) Regulatory Violations: $1,000-$5,000 per
violation. This category is for violations involving this rule and other
applicable state rules including:
(a) failure
to maintain alarm and security systems;
(b) failure to keep and maintain records for
at least two years;
(c) failure to
maintain traceability;
(d) failure
to follow transportation requirements;
(e) failure to follow the waste and disposal
requirements;
(f) failure to
maintain separation between cannabis and hemp;
(g) failure to follow labeling and packaging
requirements;
(h) failure to meet
extraction requirements;
(i)
distributing a final cannabis product with an actual weight that is lower than
the net weight listed on the cannabis fact panel;
(j) engaging in or permitting a violation of
Title 4, Chapter 41a, Cannabis Production Establishments or this rule which
amounts to a regulatory violation as described in this subsection; or
(k) failure to maintain standardized
scales.
(3) Licensing
Violations: $500- $5,000 per violation. This category is for violations
involving licensing requirements including:
(a) an unauthorized change to the operating
plan;
(b) failure to notify the
department of changes to the operating plan;
(c) failure to notify the department of
changes to financial or voting interests of greater than 2%;
(d) failure to follow the operating plan as
approved by the department;
(e)
engaging in or permitting a violation of this rule or Title 4, Chapter 41a,
Cannabis Production Establishments which amounts to a licensing violation as
described in this subsection; or
(f) failure to respond to
violations.
(4) The
department shall calculate penalties based on the level of violation and the
adverse effect or potential adverse effect at the time of the incidents giving
rise to the violation.
(5) The
department may enhance or reduce the penalty based on the seriousness of the
violation.