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<regulation prefix="Regulation" num=".05" citation="COMAR 14.17.14.05" title_num="14" subtitle_num="17" chapter_num="14" heading="Fines and Suspension Proceedings.">
  <paragraph num="A.">
    <text>Definitions.</text>
    <paragraph num="(1)">
      <text>In this regulation, the following terms have the meanings indicated.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Terms Defined.</text>
      <paragraph num="(a)">
        <text>“Letter of non-compliance” means a written communication from the Administration to a licensee or registrant that imposes a fine or demands corrective action.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>“Respondent” means a licensee, registrant, or selected applicant who is issued a letter of non-compliance, notice of intent to summarily suspend, or order of summary suspension.</text>
      </paragraph>
      <paragraph num="(c)">
        <text>“Show cause hearing” means a non-evidentiary hearing to provide the parties involved with an opportunity for oral argument on a notice of intent to summarily suspend or a summary suspension.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>A licensee, registrant, or agent who violates Regulation .04 of this chapter or COMAR 14.17.20 is subject to a fine of up to $10,000 per violation.</text>
  </paragraph>
  <paragraph num="C.">
    <text>Each day a violation continues is a separate violation under this section.</text>
  </paragraph>
  <paragraph num="D.">
    <text>The licensee, registrant, or agent assessed a fine under this regulation may:</text>
    <paragraph num="(1)">
      <text>Elect to pay the imposed fine; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Request an evidentiary hearing in accordance with COMAR 14.17.22 not later than 30 days after the receipt of the notice of the fine.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>If a respondent does not submit a request for an evidentiary hearing within 30 days from receipt of the letter of non-compliance or administrative charges, the agency determination becomes final and is not subject to appeal.</text>
  </paragraph>
  <paragraph num="F.">
    <text>The Administration may impose late fees on respondents who do not pay fines by the date indicated in a Letter of Non-Compliance or in a final agency determination, as described in COMAR 14.17.22.10.</text>
  </paragraph>
  <paragraph num="G.">
    <text>The Administration shall remit any penalty collected under this regulation to the:</text>
    <paragraph num="(1)">
      <text>Medical Cannabis Compassionate Use Fund;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Cannabis Business Assistance Fund;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Community Reinvestment and Repair Fund; or</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Cannabis Public Health Fund.</text>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>Funds from fines remitted under §F of this regulation shall be distributed at the discretion of the Administration by evaluating:</text>
    <paragraph num="(1)">
      <text>Available fund balances;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Uses of the fund; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Future needs of the fund.</text>
    </paragraph>
  </paragraph>
  <paragraph num="I.">
    <text>Summary Suspension.</text>
    <paragraph num="(1)">
      <text>The Administration shall order the summary suspension of a license or registration if the Administration determines that the threat to public health, safety, or welfare requires immediate suspension of a license or registration.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Administration shall promptly give the licensee or registrant:</text>
      <paragraph num="(a)">
        <text>Written notice of the suspension, the findings, and the reasons that support the findings; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>An opportunity for a hearing before the Administration.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Service of notice of intent shall be made by:</text>
      <paragraph num="(a)">
        <text>Serving the notice of intent via hand delivery to the point of contact on file;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Sending the notice of intent via certified mail to the address the licensee or registrant is required to maintain with the Administration; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Other reasonable means to effect service.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>A licensee or registrant aggrieved by the action of the Administration under this regulation may request a show cause hearing by filing a written request for a hearing not later than 30 days after receipt of notice of the Administration's action.</text>
    </paragraph>
  </paragraph>
  <paragraph num="J.">
    <text>Notice of Intent to Summarily Suspend a License or Registration.</text>
    <paragraph num="(1)">
      <text>The Administration may issue a Notice of Intent to Summarily Suspend a cannabis license or registration if the Administration determines that a suspension of a license or registration is necessary to protect the health and welfare of the public.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Administration shall promptly give the licensee or registrant:</text>
      <paragraph num="(a)">
        <text>Written notice of the suspension, the findings, and the reasons that support the findings; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>An opportunity for a hearing before the Administration.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Service shall be made by:</text>
      <paragraph num="(a)">
        <text>Serving the Notice of Intent via hand delivery to the point of contact on file;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Sending the Notice of Intent via certified mail to the address the licensee or registrant is required to maintain with the Administration; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Other reasonable means to effect service.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>A licensee or registrant aggrieved by the action of the Administration under this regulation may request a show cause hearing by filing a request for a hearing in writing not later than 30 days after receipt of notice of the Administration's action.</text>
    </paragraph>
  </paragraph>
  <paragraph num="K.">
    <text>Show Cause Hearing.</text>
    <paragraph num="(1)">
      <text>If requested in writing, the show cause hearing shall be held promptly within a reasonable time after the effective date of the action.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The show cause hearing shall be conducted before the Administration’s director or a designee who:</text>
      <paragraph num="(a)">
        <text>Shall determine procedural issues;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>May impose reasonable time limits on each party’s oral argument; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Shall make rulings reasonably necessary to facilitate the effective and efficient operation of the show cause hearing.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>At the conclusion of the show cause hearing, the Administration director or a designee may:</text>
      <paragraph num="(a)">
        <text>Affirm the order of summary suspension or notice of intent to summarily suspend;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Rescind the order of summary suspension;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Enter into a consent order with the respondent on behalf of the Administration; or</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Enter into an interim order with the respondent on behalf of the Administration warranted by the circumstances of the case, including one providing for a stay of the summary suspension, subject to certain conditions.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>After the show cause hearing, if the Administration Director or a designee decides to continue the summary suspension, the licensee or registrant aggrieved by the decision may pursue a hearing in accordance with COMAR 14.17.22.</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Contesting a summary suspension or notice of intent to summarily suspend through a show cause hearing does not toll or otherwise excuse the requirement that an aggrieved party request a hearing within 30 days of notice of intent to summarily suspend, as set forth in §I(4) or §J(4) of this regulation.</text>
    </paragraph>
    <paragraph num="(6)">
      <text>If the licensee or registrant against whom the action is contemplated does not appear, the Administration may hear and determine the matter.</text>
    </paragraph>
    <paragraph num="(7)">
      <text>A show cause hearing is not subject to the hearing procedures set forth in COMAR 14.17.22.</text>
    </paragraph>
  </paragraph>
</regulation>