(a) The Director of the Alcoholic Beverage Control Division, the Director of the Alcoholic Beverage Control Enforcement Division, an enforcement agent, an employee of the Alcoholic Beverage Control Board, or assisting law enforcement officer may issue an inspection report, an advisory report, or a notice of violation before taking action to fine, suspend, or revoke a:

1. (1) Dispensary license;
2. (2) Processor license;
3. (3) Cultivation facility license; or
4. (4) Agent registry identification card.

(b)

1. (1) An inspection report documents an inspection of a licensed premises.
2. (2) An inspection report must be prepared on a form prescribed by the board.

(c) The Director of the Alcoholic Beverage Control Division may issue a notice of violation if an inspection report or other credible information shows a licensed facility or its agent is in violation of:

1. (1) The Arkansas Medical Marijuana Amendment of 2016, Ark. Const. amend. 98;

2. (2) Any rule promulgated by the:

   1. (A) Alcoholic Beverage Control Division;
   2. (B) Medical Marijuana Commission; or
   3. (C) Department of Health;

3. (3) Any order of the:

   1. (A) Alcoholic Beverage Control Division;
   2. (B) Medical Marijuana Commission; or
   3. (C) Department of Health;
4. (4) Any law relating to marijuana; or
5. (5) Any law relating to taxation.

(e)

1. (1) A notice of violation regarding a cultivation facility agent, a dispensary agent, or a processing facility agent shall be delivered to the agent at his or her place of employment.

2. (2) A copy of the notice shall be provided to the licensee of the:

   1. (A) Cultivation facility;
   2. (B) Dispensary; or
   3. (C) Processing facility.

(f)

1. (1) The notice shall describe any violation, and cite the applicable:

   1. (A) Constitutional amendment provision;
   2. (B) Statute;
   3. (C) Rule;
   4. (D) Order of the board; or
   5. (E) Other law.
2. (2) A violation report or notice may be the basis of a proceeding to fine, suspend, revoke, or otherwise penalize a licensed facility's license.
3. (3) The notice may include the Director of the Alcoholic Beverage Control Division’s proposed fine, as well as any proposed penalty to be imposed.

4. (4) A licensed facility, cultivation facility agent, processor agent, or dispensary agent that receives a notice of violation shall in writing, not later than ten (10) days after service of the notice, either:

   1. (A) Consent to the proposed penalty set forth in the notice and waive the right to a hearing; or
   2. (B) Request an opportunity to appear before the Director of the Alcoholic Beverage Control Division or an authorized hearing officer.