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SEC. 104.13.  ADMINISTRATIVE VIOLATIONS AND PENALTIES.
   (Amended by Ord. No. 185,850, Eff. 11/28/18.)
 
   (a)   Violations of this Article.  Within five years of discovering a Licensee or owner of Business Premises has violated this article, the Rules and Regulations, or a License condition (violation), DCR may issue a Notice of Violation (NOV) and impose any administrative penalties or order corrective actions as provided in Section 104.13(b).  Any action of DCR does not preclude any enforcement agency from taking its own enforcement action for violation of any local, state or federal law or regulation.
 
   (b)   Administrative Penalties and Corrective Actions.
 
   1.   Administrative fines: In addition to any of the remedies and penalties set forth in this article or any other law, DCR may impose administrative fines on a Licensee or owner of a Business Premises using the violation classes and fine amounts specified below.  The types of violations associated with each class shall be delineated in the Rules and Regulations.
 
   (i)   "Minor" violation – amount equal to 50% of the current Cannabis License fee for each and every violation;
 
   (ii)   "Moderate" violation – amount equal to 150% of the current Cannabis License fee for each and every violation; and
 
   (iii)   "Serious" violation – amount equal to 300% of the current Cannabis License fee for each and every violation.
 
   Repeat Minor or Moderate violations that occur within a two-year period and result in an administrative fine may result in escalation to a higher class of violation.
 
   DCR, at its discretion, may impose a reduced administrative fine after considering factors, including: 1) the extent of harm or potential harm caused by the violation; 2) the nature and persistence of the violation; 3) the length of time over which the violation occurs; 4) the history of past violations; 5) any mitigating evidence; and 6) the Licensee's or owner of the Business Premises' financial resources.
 
   2.   License Suspension or Revocation or More Restrictive License Conditions: In addition to any of the remedies and penalties set forth in this article or any other law, DCR may suspend or revoke a License or impose more restrictive License conditions after considering factors, including: 1) the extent of harm or potential harm caused by the violation; 2) the nature and persistence of the violation; 3) the length of time over which the violation occurs; 4) the history of past violations; and 5) any mitigating evidence.
 
   3.   Corrective Action: In addition to any of the remedies and penalties set forth in this article or any other law, DCR may order a Licensee or Business Premises owner to undertake corrective action to remedy the violation or prevent future violations.
 
   (c)   Notice of Violation.
 
   1.   DCR shall issue a NOV by mail to the Licensee's agent for service of process or the owner of the Business Premises as shown on the records of the City Engineer or the records of the County Assessor.  The NOV shall contain all of the following:
 
   (i)   a brief description of the violation;
 
   (ii)   a brief description of and rationale for the administrative penalties and corrective action, if any, imposed; and
 
   (iii)   a timeframe in which the Licensee or owner of the Business Premises shall take corrective action, if any, and comply with the administrative penalties, if any, which shall not be sooner than 15 days from the date of mailing of the NOV.
 
   The NOV shall also inform the Licensee or owner of the Business Premises that they may request an administrative hearing, pursuant to Section 104.14, within 15 days of the date DCR mailed the NOV.  The Licensee or the Business Premises owner's right to an administrative hearing shall be deemed waived if he or she fails to file a timely request for an administrative hearing.
 
   2.   The NOV shall be final and effective 15 days after the date of its mailing if no hearing was timely requested.  If a Licensee or owner of a Business Premises timely requests a hearing, any portion of the NOV upheld or modified by an appellate body shall be final and effective 15 days after the date the appellate body's decision is deemed final under Section 104.14.
 
   3.   If after a NOV becomes final and effective, a Licensee or owner of a Business Premises fails to comply with the administrative penalties and corrective action, if any, in the NOV, DCR may take one or more of the following actions: 1) denial of a License renewal; 2) revocation or suspension of a License; or 3) imposition of more restrictive License conditions.
 
   4.   Stipulated Agreements.  Prior to or after issuing an NOV, DCR, at its discretion, may enter into a written agreement with a Licensee or owner of a Business Premises whereby the Licensee or owner of a Business Premises stipulates to committing a violation in exchange for a negotiated administrative penalty or corrective action, if any.  If a Licensee or owner of a Business Premises violates a stipulated agreement, DCR may issue or re-issue an NOV and impose any administrative penalties authorized under Section 104.13(b).
 
   (d)   Administrative Hold.  To prevent destruction of evidence, illegal diversion of Cannabis or a Cannabis product, or to address a potential threat to the environment or public safety, DCR may order an administrative hold of Cannabis or a Cannabis product.  DCR shall give written notice, by mail, of the administrative hold to the Licensee and shall provide a description of the Cannabis and/or Cannabis product subject to the administrative hold, along with a statement for the basis of issuing the administrative hold.  Within 24 hours of receipt of the notice of administrative hold, the Licensee shall physically segregate all applicable Cannabis and/or Cannabis products subject to the hold and shall safeguard and preserve the subject property as required in the notice and the Rules and Regulations.  Following the issuance of a notice of administrative hold to the Licensee, DCR shall identify the Cannabis and/or Cannabis product subject to the administrative hold in DCR's track-and-trace system.  While the administrative hold is in effect, the Licensee is restricted from selling, donating, transferring, transporting, or destroying the administratively held property.  Nothing herein shall prevent a Licensee from the continued possession, cultivation, or harvesting of Cannabis subject to the administrative hold.  During the hold period, all Cannabis and/or Cannabis products subject to an administrative hold shall be put into separate batches.  Nothing herein shall prevent a Licensee from voluntarily surrendering Cannabis and/or a Cannabis product that is subject to an administrative hold.  The Licensee shall identify the Cannabis and/or Cannabis product being voluntarily surrendered in DCR's track-and-trace system.  Voluntary surrender does not waive the right to an administrative hearing pursuant to Section 104.14 within 15 days of the date of mailing of the written notice by DCR.