(Amended by Ord. No. 187,879, Eff. 6/2/23.)
(a) Violations of this Article. Within five years of discovering a Licensee has violated this article, the Rules and Regulations, or a License condition, DCR may issue a Notice to Correct (NTC), Notice of Violation (NOV), Notice of Suspension (NOS), or Notice of Revocation (NOR). DCR may impose administrative penalties or order corrective actions pursuant to Subsection (b). DCR’s action does not preclude any other 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 Penalties. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may impose administrative penalties on a Licensee using the violation classifications in the Rules and Regulations and the fine amounts specified in Section 104.19. Repeat violations may result in escalation to a higher class of violation.
2. Reduction in Penalties or Extension of Time to Comply. DCR, in its sole discretion, may impose a reduced administrative penalty or consider an extension of time to comply with an NTC or NOV, including the payment of any associated penalties, after considering the following factors: (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 occurred; (4) the history of past violations; (5) any mitigating evidence; and (6) the Licensee’s financial resources.
3. More Restrictive License Conditions. In addition to any of the remedies and penalties set forth in this article or any other law, DCR, in its sole discretion, may impose more restrictive License conditions after considering the following factors: (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 occurred; (4) the history of past violations; and (5) any mitigating evidence.
4. 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 to undertake corrective action to remedy the violation or prevent future violations by issuing a NTC or NOV pursuant to Subsections (c) and (d).
(c) Notice to Correct (NTC).
1. DCR may issue a NTC if DCR discovers that a Licensee has made modifications without DCR’s prior approval, including but not limited to: (1) modifications to the fictitious name or DBA, or the failure to submit fictitious name or DBA; (2) modifications to Owners and/or Primary Personnel, or the failure to disclose all Owners and/or Primary Personnel; and (3) any other violation of the Rules and Regulations that DCR deems appropriate in its sole discretion. DCR shall issue a NTC by electronic mail to the Licensee. There is no administrative penalty associated with a NTC. The NTC shall contain all of the following:
(i) a brief description of the unapproved modification or violation;
(ii) a brief description of the corrective action required; and
(iii) a timeframe in which the Licensee shall take corrective action.
2. DCR may issue a NOV, including administrative penalties, if the Licensee does not comply with a NTC within 30 days. A Licensee may request an extension pursuant to Subsection (b).
(d) Notice of Violation (NOV).
1. DCR may issue a NOV for any violation of this article or the Rules and Regulations. DCR shall issue a NOV by electronic mail to the Licensee. 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;
(iii) a timeframe in which the Licensee shall take corrective action and/or comply with the administrative penalties, if any, which shall not be sooner than 15 days from the date DCR sent the NOV by electronic mail; and
(iv) information on how the Licensee may request an administrative hearing pursuant to Section 104.14.
2. The Licensee shall request any administrative hearing within 15 days of the date DCR sent the NOV by electronic mail. The NOV shall include an invoice for the relevant administrative appeal fee, pursuant to Section 104.19, which shall be due within 15 days from the date the invoice was issued.
3. If no appeal is requested, the NOV shall be final and effective 15 days after the date the NOV was sent by electronic mail to the Licensee. DCR shall issue an invoice for the associated administrative penalty or fine, if any, which shall be due 30 days from the date the invoice was issued.
4. If a hearing is requested, the determination issued by the hearing officer shall be final and effective on the date the determination is sent by electronic mail and U.S. mail to the Licensee. An invoice for outstanding penalties or fines, if any, shall be sent with the hearing officer’s determination and shall be paid within 30 days of the date the invoice was issued, unless otherwise specified in the hearing officer’s determination. Any corrective action required of the Licensee shall be completed within 30 days of the date that the final determination is sent to the Licensee, unless otherwise specified in the hearing officer’s determination.
5. If, after a NOV becomes final and effective, a Licensee fails to comply with any administrative penalties and/or corrective action in the NOV, DCR may take one or more of the following actions: (1) denial of a License renewal; (2) imposition of more restrictive License conditions; (3) issuance of another or escalating NOV; or (4) suspension or revocation of a License or Operating Permit pursuant to Subsection (e).
6. Stipulated Agreements. Prior to or after issuing a NOV, DCR, in its sole discretion, may enter into a written agreement with a Licensee whereby the Licensee stipulates to committing a violation in exchange for a negotiated administrative penalty or corrective action. If a Licensee violates a stipulated agreement, DCR may issue or re-issue a NOV and impose any administrative penalties authorized under this section or the Rules and Regulations.
(e) Suspension or Revocation of Temporary Approval, Annual License, or Operating Permit.
1. Notice of Suspension. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may suspend Temporary Approval, an Annual License and/or an Operating Permit by issuing a Notice of Suspension for the reasons listed in Section 104.04(e). The Licensee may request an administrative hearing pursuant to Section 104.14. DCR may reinstate the Temporary Approval, Operating Permit or Annual License if the Licensee completes any corrective action(s) to remedy the violation, or if a hearing officer orders reinstatement following an administrative hearing. DCR shall issue a Letter of Reinstatement if the Operating Permit or Temporary Approval is reinstated.
2. Notice of Revocation. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may revoke Temporary Approval, an Annual License and/or an Operating Permit by issuing a Notice of Revocation after considering the following factors: (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 occurred; (4) the history of past violations; and (5) any mitigating evidence. The Licensee may request an administrative hearing pursuant to Section 104.14.
3. A Licensee with a suspended or revoked Operating Permit or Temporary Approval may not conduct Commercial Cannabis Activity pending the outcome of the administrative hearing.
4. The revocation of an Annual License automatically revokes the associated Operating Permit.
(f) 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 send notice of administrative hold to the Licensee by electronic mail 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, the Licensee shall identify the Cannabis and/or Cannabis product subject to the administrative hold in the State’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. A Licensee may voluntarily surrender Cannabis and/or a Cannabis product that is subject to an administrative hold if identified in the State’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.