§ 7–1671.08. Penalties.

(a) Any person who manufactures, cultivates, possesses, administers, dispenses, distributes, or uses cannabis, or manufactures, possesses, distributes, or uses paraphernalia, in a manner not authorized by this chapter or the rules issued pursuant to § 7-1671.13 shall be subject to criminal prosecution and sanction under subchapter I of Chapter 11 of Title 48 [§ 48-1101 et seq.].

(b)(1) Any person who makes a fraudulent representation to a law enforcement official of any fact or circumstance relating to the person's manufacture, cultivation, possession, administration, dispensing, distribution, or use of medical cannabis, or manufacture, possession, distribution, or use of paraphernalia to avoid arrest or prosecution shall be subject to a criminal fine not to exceed $1,000.

[(2)] The imposition of the fine set forth in paragraph (1) of this subsection shall be in addition to any other penalties that may otherwise apply for the making of a false statement or for the manufacture, cultivation, possession, administration, dispensing, distribution, or use of cannabis, or the manufacture, possession, distribution, or use of paraphernalia.

(c) It shall be an affirmative defense to a criminal charge of possession or distribution of cannabis, or possession with intent to distribute cannabis, that the person charged with the offense is a person who:

(1) Was in possession of medical cannabis only inside the qualifying patient’s residence or a medical treatment facility;

(2) Only administered or assisted in administering the medical cannabis to the qualifying patient and only within the qualifying patient’s residence or at a permitted medical treatment facility;

(3) Assisted the qualifying patient only when the caregiver was not reasonably available to provide assistance; and

(4) Is 18 years of age or older.

(d) The ABC Board may impose and adjudicate civil fines for violations of this chapter and rules issued in accordance with § 7-1671.13 committed by licensed or unlicensed cultivation centers, manufacturers, retailers, internet retailers, testing laboratories, and couriers.

(e) Within 180 days after March 22, 2023, the ABC Board shall submit proposed regulations to the Council setting forth a schedule of civil penalties, fines, and fees for violations of this chapter for a 90-day period of review, including Saturdays, Sundays, holidays, and periods of Council recess. If the Council does not approve, in whole or in part, the proposed regulations within the 90-day review period, the regulations shall be deemed approved. The schedule shall replace all civil penalties, except as expressly provided in this chapter.

(f) Beginning January 31, 2024, the ABC Board may issue the following fines to an unlicensed establishment that violates § 7-1671.06(c-1) or § 7-1671.06b(e), or has not filed an accepted and pending application with the ABC Board and knowingly engages or attempts to engage in the purchase, sale, exchange, delivery, or any other form of commercial transaction involving cannabis that is not purchased, sold, exchanged, or delivered in accordance with the provisions of this chapter or § 48-904.01:

(1) For the first violation, the ABC Board may:

(A) Issue a fine in the amount of $10,000; and

(B) Require the unlicensed establishment to submit a remediation plan to the ABC Board that contains the unlicensed establishment's plan to prevent any future recurrence of purchasing, selling, exchanging, delivering, or otherwise transacting any cannabis or cannabis products that are not purchased, sold, exchanged, or delivered in accordance with the provisions of this chapter or § 48-904.01;

(2) For any subsequent violations or if the unlicensed establishment fails to submit a remediation plan in accordance with paragraph (1) of this subsection, or if the ABC Board rejects the unlicensed establishment's remediation plan, the ABC Board may issue additional fines as follows:

(A) For the second violation, a fine in the amount of $20,000;

(B) For the third or subsequent violation, a fine in the amount of $30,000;

(C) For failing to submit a remediation plan or having its remediation plan rejected by the ABC Board, a fine of in the amount of $10,000.

(3) Revenue collected from fines imposed pursuant to this subsection shall be deposited as follows:

(A) The first $100,000 shall be deposited into the Litigation Support Fund established pursuant to § 1-301.86b(b)[(6)]; and

(B) Any revenue collected from fines after the first $100,000 shall be deposited into the Medical Cannabis Social Equity Fund established pursuant to § 7-1671.08b.

(4) Nothing in this subsection shall preclude the ABC Board from issuing a cease-and-desist order or the closure of an unlicensed establishment for a first or subsequent violation of this subsection.

(g)(1) Notwithstanding §§ § 7-1671.06(b) and § 7-1671.08(f), ABCA shall have the authority to inspect the entire premises, inventory, and business records of an unlicensed establishment to determine whether the business is conducting activity in violation of this title. If, after an inspection, ABCA determines that an unlicensed establishment presents an imminent danger to the health or safety of the public, as described in paragraph (2) of this subsection, the ABC Board may summarily close and order the padlocking, by ABCA or MPD without a prior hearing, of the unlicensed establishment, and ABCA or MPD may seize all cannabis and cannabis products found at the premises.

(2) For the purpose of this subsection, the term "imminent danger to the health or safety of the public" includes any of the following:

(A) The unlicensed establishment distributes or attempts to distribute cannabis or a cannabis product to one or more persons under the age of 21.

(B) The unlicensed establishment manufactures, produces, or cultivates cannabis or cannabis products at the building or premises.

(C) Once a testing laboratory has been licensed under this chapter, the unlicensed establishment distributes, attempts to distribute, or makes available for sale or exchange cannabis or a cannabis product untested by a testing laboratory licensed under this chapter.

(D) The unlicensed establishment distributes, attempts to distribute or makes available for sale or exchange cannabis or a cannabis product that fails to contain a label identifying the source of the cannabis or cannabis product, including where it was manufactured, the contents of the package, and the cannabis or cannabis product's ingredients, and tetrahydrocannabinol (THC) content, or is otherwise not labeled in accordance with this chapter.

(E) The unlicensed establishment fails to comply with a cease-and-desist order.

(F) The unlicensed establishment distributes, attempts to distribute, or makes available for sale or exchange Schedule I substances, or products that contain Schedule I substances, as enumerated in § 48-902.04.

(G) An employee, agent, or owner of the unlicensed establishment has unlawful firearms or weapons on the premises.

(H) A dangerous crime, as defined in § 23-1331(3), or a crime of violence, as defined in § 23-1331(4), was committed on the premises of the unlicensed establishment.

(I) The unlicensed establishment engages in any activity or operation established as an imminent danger to the health or safety of the public by the ABC Board by rule.

(3) ABCA shall provide the unlicensed establishment's owner and the property owner with written notice of the summary closure and the right to request a hearing.

(4) The owner of the unlicensed establishment shall have 5 business days after service of the notice of summary closure to request a hearing with the ABC Board, which shall hold a hearing within 5 business days of a timely request.

(5) The ABC Board shall issue a written decision within 5 business days after the hearing.

(h)(1) ABCA or the Metropolitan Police Department may post signage at the site of the unlicensed establishment indicating that unlicensed activity has been found to have occurred for violations of this chapter.

(2) If the ABC Board orders the closure of an unlicensed establishment, the ABC Board shall post 2 notices in conspicuous places at or near the main street entrance on the outside of the establishment.

(3) The posted notice shall state that the closure is ordered because of a violation of this chapter or of the regulations promulgated pursuant to this chapter.

(4) Any person willfully removing, obliterating, or defacing the notice shall be guilty of a violation of this chapter.

(i)(1) An ABCA investigator may test cannabis and cannabis products to quantify their THC content.

(2) In any proceeding before the ABC Board, labeling or packaging in an unlicensed establishment that states that the product contains cannabis or tetrahydrocannabinol, whether in whole or in part, or a derivative thereof, shall create a presumption that the product contains cannabis and contains the amounts of the chemicals indicated on the label or packaging unless such presumption is overcome by a preponderance of evidence to the contrary.