(a) The Director of the Alcoholic Beverage Control Division may issue a notice of violation if an inspection report or other credible information shows a transporter/distributor 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 division, the commission, or the department;
4. (4) Any law relating to marijuana; or
5. (5) Any law relating to taxation.

(c)

1. (1) A notice of violation regarding a transporter/distributor agent shall be delivered to the agent at the transporter’s/distributor’s licensed premises.
2. (2) A copy of the notice shall be provided to the transporter/distributor licensee at its licensed premises.

(d) The notice of violation shall describe the alleged violation or violations and cite the applicable:

1. (1) Constitutional amendment provision;
2. (2) Statute;
3. (3) Rule;
4. (4) Order; or
5. (5) Other law.

(g)

1. (1) A transporter/distributor or transporter/distributor agent that receives a notice of violation shall respond to the notice in writing and may within ten (10) days after receiving the notice, either:

   1. (A) Consent to the proposed penalty set forth in the notice of violation and waive the right to a hearing; or
   2. (B) Request a hearing before the director or an authorized hearing agent.
2. (2) If the transporter/distributor or transporter/distributor agent consents to the penalty and waives the right to a hearing, the licensee or agent shall fulfill the terms set forth in the notice of violation.
3. (3) If a hearing is requested, a hearing shall be scheduled and the transporter or transporter agent shall receive a notice of hearing in compliance with this part.