§ 7–1671.08. Penalties.

*NOTE: This section includes amendments by emergency legislation that will expire on July 7, 2024. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Permanent Version.*

*NOTE: This section includes amendments by temporary legislation that will expire on November 21, 2024. To view the text of this section after the expiration of all emergency and temporary legislation affecting this section, click this link: Permanent Version.*

(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 issue a written warning to the unlicensed establishment;

(2) For the second 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 that is not purchased, sold, exchanged, or delivered in accordance with the provisions of this chapter or § 48-904.01; and

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

(g)(1) Notwithstanding § 7-1671.06(b) and § 7-1671.08(f), ABCA shall have the authority to investigate an unlicensed retailer. If, after an investigation, ABCA determines that an unlicensed retailer has failed to comply with the provisions of this chapter, ABCA shall have the authority to summarily close the unlicensed retailer and seize any cannabis products inside the establishment.

(2) ABCA shall provide the unlicensed retailer owner and the property owner with written notice of the summary closure and the right to request a hearing.

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