1. A. Definitions.

   1. (1) In this regulation, the following terms have the meanings indicated.

   2. (2) Terms Defined.

      1. (a) “Letter of non-compliance” means a written communication from the Administration to a licensee or registrant that imposes a fine or demands corrective action.
      2. (b) “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.
      3. (c) “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.
2. B. 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.
3. C. Each day a violation continues is a separate violation under this section.

4. D. The licensee, registrant, or agent assessed a fine under this regulation may:

   1. (1) Elect to pay the imposed fine; or
   2. (2) 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.
5. E. 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.
6. F. 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.

7. G. The Administration shall remit any penalty collected under this regulation to the:

   1. (1) Medical Cannabis Compassionate Use Fund;
   2. (2) Cannabis Business Assistance Fund;
   3. (3) Community Reinvestment and Repair Fund; or
   4. (4) Cannabis Public Health Fund.

8. H. Funds from fines remitted under §F of this regulation shall be distributed at the discretion of the Administration by evaluating:

   1. (1) Available fund balances;
   2. (2) Uses of the fund; and
   3. (3) Future needs of the fund.

9. I. Summary Suspension.

   1. (1) 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.

   2. (2) The Administration shall promptly give the licensee or registrant:

      1. (a) Written notice of the suspension, the findings, and the reasons that support the findings; and
      2. (b) An opportunity for a hearing before the Administration.

   3. (3) Service of notice of intent shall be made by:

      1. (a) Serving the notice of intent via hand delivery to the point of contact on file;
      2. (b) Sending the notice of intent via certified mail to the address the licensee or registrant is required to maintain with the Administration; or
      3. (c) Other reasonable means to effect service.
   4. (4) 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.

10. J. Notice of Intent to Summarily Suspend a License or Registration.

    1. (1) 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.

    2. (2) The Administration shall promptly give the licensee or registrant:

       1. (a) Written notice of the suspension, the findings, and the reasons that support the findings; and
       2. (b) An opportunity for a hearing before the Administration.

    3. (3) Service shall be made by:

       1. (a) Serving the Notice of Intent via hand delivery to the point of contact on file;
       2. (b) Sending the Notice of Intent via certified mail to the address the licensee or registrant is required to maintain with the Administration; or
       3. (c) Other reasonable means to effect service.
    4. (4) 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.

11. K. Show Cause Hearing.

    1. (1) If requested in writing, the show cause hearing shall be held promptly within a reasonable time after the effective date of the action.

    2. (2) The show cause hearing shall be conducted before the Administration’s director or a designee who:

       1. (a) Shall determine procedural issues;
       2. (b) May impose reasonable time limits on each party’s oral argument; and
       3. (c) Shall make rulings reasonably necessary to facilitate the effective and efficient operation of the show cause hearing.

    3. (3) At the conclusion of the show cause hearing, the Administration director or a designee may:

       1. (a) Affirm the order of summary suspension or notice of intent to summarily suspend;
       2. (b) Rescind the order of summary suspension;
       3. (c) Enter into a consent order with the respondent on behalf of the Administration; or
       4. (d) 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.
    4. (4) 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.
    5. (5) 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.
    6. (6) If the licensee or registrant against whom the action is contemplated does not appear, the Administration may hear and determine the matter.
    7. (7) A show cause hearing is not subject to the hearing procedures set forth in COMAR 14.17.22.

Authority: Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, and 36-901, Annotated Code of Maryland

Effective date:

Regulations .01—.06 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024

Regulations .01—.06 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)

Regulations .01—.06 adopted effective July 22, 2024 (51:14 Md. R. 678)

Regulation .02 amended effective April 14, 2025 (52:7 Md. R. 324)

Regulation .04D amended effective March 16, 2026 (53:5 Md. R. 244)

Regulation .06B, D amended effective April 14, 2025 (52:7 Md. R. 324)