50-46-330. (Temporary) Unlawful conduct by cardholders or licensees -- penalties. (1) The department shall revoke and may not reissue the registry identification card, license, or endorsement of an individual who:

(a) is convicted of a drug offense;

(b) allows another individual to be in possession of the individual's:

(i) registry identification card or license; or

(ii) mature marijuana plants, seedlings, usable marijuana, or marijuana-infused products; or

(c) fails to cooperate with the department concerning an investigation or inspection if the individual is registered or licensed and cultivating marijuana, engaging in chemical manufacturing, or manufacturing marijuana-infused products.

(2) In addition to any other penalty provided by law, the department shall revoke a license issued under this part if the licensee:

(a) purchases marijuana from an unauthorized source in violation of this part;

(b) sells marijuana, marijuana concentrate, or marijuana-infused products to anyone other than a registered cardholder to whom the licensee is legally authorized to sell marijuana, marijuana concentrate, or marijuana-infused products;

(c) operates a carbon dioxide or hydrocarbon extraction system without obtaining a chemical manufacturing endorsement; or

(d) transports marijuana or marijuana-infused products outside of Montana.

(3) A testing laboratory that fails to meet the ISO certification requirement established by the department by rule is subject to:

(a) a fine of $500 a week for the first 4 weeks that the laboratory fails to meet the requirement; and

(b) a fine of $1,000 a week for each subsequent week the laboratory fails to meet the requirement.

(4) A licensee who violates the advertising restrictions imposed under 50-46-341 is subject to:

(a) a written warning for the first violation;

(b) a 5-day license suspension or a $500 fine for a second violation;

(c) a 5-day license suspension or a $1,000 fine for a third violation;

(d) a 30-day license suspension or a $2,500 fine for a fourth violation; and

(e) a license revocation for a fifth violation.

(5) Except for the license revocations required under this section, a licensee shall choose whether to pay a fine or be subject to a license suspension when a penalty is imposed under this section.

(6) A licensee whose license is revoked may not reapply for licensure for 3 years from the date of the revocation.

(7) If no other penalty is specified under this part, a registered cardholder, provider, or marijuana-infused products provider who violates this part is punishable by a fine not to exceed $500 or by imprisonment in a county jail for a term not to exceed 6 months, or both, unless otherwise provided in this part or unless the violation would constitute a violation of Title 45. An offense constituting a violation of Title 45 must be charged and prosecuted pursuant to the provisions of Title 45.

(8) Review of a department action imposing a fine, suspension, or revocation under this section must be conducted as a contested case hearing under the provisions of the Montana Administrative Procedure Act.

50-46-330. (Effective July 1, 2020, or on occurrence of contingency, whichever is earlier) Unlawful conduct by cardholders or licensees -- penalties. (1) The department shall revoke and may not reissue the registry identification card, license, or endorsement of an individual who:

(a) is convicted of a drug offense;

(b) allows another individual to be in possession of the individual's:

(i) registry identification card or license; or

(ii) mature marijuana plants, seedlings, usable marijuana, or marijuana-infused products; or

(c) fails to cooperate with the department concerning an investigation or inspection if the individual is registered or licensed and cultivating marijuana, engaging in chemical manufacturing, or manufacturing marijuana-infused products.

(2) In addition to any other penalty provided by law, the department shall revoke a license issued under this part if the licensee:

(a) purchases marijuana from an unauthorized source in violation of this part;

(b) sells marijuana, marijuana concentrate, or marijuana-infused products to anyone other than a registered cardholder;

(c) operates a carbon dioxide or hydrocarbon extraction system without obtaining a chemical manufacturing endorsement; or

(d) transports marijuana or marijuana-infused products outside of Montana.

(3) A testing laboratory that fails to meet the ISO certification requirement established by the department by rule is subject to:

(a) a fine of $500 a week for the first 4 weeks that the laboratory fails to meet the requirement; and

(b) a fine of $1,000 a week for each subsequent week the laboratory fails to meet the requirement.

(4) A licensee who violates the advertising restrictions imposed under 50-46-341 is subject to:

(a) a written warning for the first violation;

(b) a 5-day license suspension or a $500 fine for a second violation;

(c) a 5-day license suspension or a $1,000 fine for a third violation;

(d) a 30-day license suspension or a $2,500 fine for a fourth violation; and

(e) a license revocation for a fifth violation.

(5) Except for the license revocations required under this section, a licensee shall choose whether to pay a fine or be subject to a license suspension when a penalty is imposed under this section.

(6) A licensee whose license is revoked may not reapply for licensure for 3 years from the date of the revocation.

(7) If no other penalty is specified under this part, a registered cardholder, provider, or marijuana-infused products provider who violates this part is punishable by a fine not to exceed $500 or by imprisonment in a county jail for a term not to exceed 6 months, or both, unless otherwise provided in this part or unless the violation would constitute a violation of Title 45. An offense constituting a violation of Title 45 must be charged and prosecuted pursuant to the provisions of Title 45.

(8) Review of a department action imposing a fine, suspension, or revocation under this section must be conducted as a contested case hearing under the provisions of the Montana Administrative Procedure Act.

History: En. Sec. 15, Ch. 419, L. 2011; amd. Sec. 16, I.M. No. 182, approved Nov. 8, 2016; amd. Sec. 14, Ch. 408, L. 2017; amd. Secs. 24, 25, Ch. 292, L. 2019.