<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".03" citation="COMAR 14.17.14.03" title_num="14" subtitle_num="17" chapter_num="14" heading="Inspections.">
  <paragraph num="A.">
    <text>Definition.</text>
    <paragraph num="(1)">
      <text>In this regulation, the following term has the meaning indicated.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Term Defined. “Investigator” means any Administration employee or contractor designated by the Administration to carry out an inspection under this regulation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Submission of an application to be a licensee or registrant irrevocably gives the Administration consent to conduct all inspections to ensure compliance with State law and regulations.</text>
  </paragraph>
  <paragraph num="C.">
    <text>The Administration may inspect all of a cannabis business applicant’s premises and operations to ensure conformity with its application, State law, and regulations.</text>
  </paragraph>
  <paragraph num="D.">
    <text>In the case of an inspection before the issuance of a license, the Administration shall arrange the inspection to take place at a mutually agreeable time.</text>
  </paragraph>
  <paragraph num="E.">
    <text>Announced and Unannounced Inspections.</text>
    <paragraph num="(1)">
      <text>The Administration may conduct announced and unannounced inspections of a licensee or registrant subject to the Administration’s regulation, mission, and function, to determine compliance with statute and regulations.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Failure by a licensee or registrant to provide the Administration with immediate access to any part of a premises, requested material, information, or agent as part of an inspection may result in the imposition of a civil fine, suspension of license, or revocation of license.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>During an inspection, the Administration may:</text>
      <paragraph num="(a)">
        <text>Review and make copies of any and all records, including but not limited to financial data, sales data, employment data, or other material that would otherwise be considered proprietary;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Enter any place, including but not limited to vehicles in which cannabis is held, dispensed, sold, produced, tested, delivered, transported, manufactured, or otherwise disposed of;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Inspect all equipment, raw and processed material, containers, and labeling;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Inventory any cannabis;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Inspect any equipment, instruments, tools, or machinery used to process:</text>
        <paragraph num="(i)">
          <text>Cannabis; or</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Cannabis product;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(f)">
        <text>Investigate complaints; and</text>
      </paragraph>
      <paragraph num="(g)">
        <text>Question personnel present at the location and any agent of the licensee.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>During an inspection, a material misstatement, omission, misrepresentation, or untruth by the cannabis business applicant, licensee, registrant, or agent may result in:</text>
      <paragraph num="(a)">
        <text>Denial of the application;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The imposition of a civil fine;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Suspension of a license or registration; or</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Revocation of a license or registration.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Sample Collection and Testing as Part of Inspection.</text>
    <paragraph num="(1)">
      <text>During an inspection, the Administration may obtain samples for testing of any:</text>
      <paragraph num="(a)">
        <text>Cannabis;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Cannabis product;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Media used to grow cannabis;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Chemicals or solvents used to process cannabis concentrate;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Labels or containers for cannabis;</text>
      </paragraph>
      <paragraph num="(f)">
        <text>Paraphernalia;</text>
      </paragraph>
      <paragraph num="(g)">
        <text>Environmental swabs;</text>
      </paragraph>
      <paragraph num="(h)">
        <text>Any waste material; and</text>
      </paragraph>
      <paragraph num="(i)">
        <text>Raw or processed material.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>An investigator may contract with an independent testing laboratory or the State Cannabis Testing Laboratory to analyze the samples for any deviation from specification questioned by the investigator.</text>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>Investigative Actions.</text>
    <paragraph num="(1)">
      <text>In the event that an investigator has cause to suspect an operational failure or conditions that create a likelihood of diversion, contamination, or a risk to the public health:</text>
      <paragraph num="(a)">
        <text>An investigator may:</text>
        <paragraph num="(i)">
          <text>Suspend the distribution of some or all cannabis from the cannabis licensee;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Order immediate evacuation of the premises and seal the entry door; or</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Quarantine some or all cannabis;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>The Administration shall undertake a review of the inspection findings and may:</text>
        <paragraph num="(i)">
          <text>Request a recall of the cannabis;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Request independent testing of affected cannabis;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Approve a procedure to reprocess the cannabis;</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>Notify law enforcement if diversion is suspected; or</text>
        </paragraph>
        <paragraph num="(v)">
          <text>Order the destruction of contaminated or substandard cannabis; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(c)">
        <text>The Administration may notify the local fire department or police department, or appropriate regulatory agency, regarding a risk to public health and safety.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>During an inspection or any investigation, a licensee, registrant, or agent, or employee shall comply with an Administration request to:</text>
      <paragraph num="(a)">
        <text>Appear for a sworn statement; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Submit documents responsive to any Administration request.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>The Administration shall leave a receipt and create a documented chain of custody for anything removed from the premises during an inspection.</text>
  </paragraph>
  <paragraph num="I.">
    <text>Report of an Inspection and Letter of Non-Compliance.</text>
    <paragraph num="(1)">
      <text>An investigator shall:</text>
      <paragraph num="(a)">
        <text>Prepare an investigative report; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Deliver a copy of the report and obtain a receipt for the delivery.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Within 10 business days from the receipt of a letter of non-compliance imposing a fine or demanding corrective action, a licensee shall:</text>
      <paragraph num="(a)">
        <text>Respond in writing to each demand for corrective action;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Set forth a plan for corrective action to be taken and the timetable for correction; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Pay the fine set forth in the letter of non-compliance.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Upon receipt of a letter of non-compliance, a licensee or registrant may request an evidentiary hearing on the same provided such request is made in writing within 30 days of receipt of the letter of non-compliance in accordance with COMAR 14.17.22.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>If a licensee or registrant does not submit a request for a hearing in writing within the 30-day period, the agency action becomes a final determination and is not subject to appeal.</text>
    </paragraph>
  </paragraph>
</regulation>