1. (1) The department shall revoke and may not reissue the registry identification card, license, or endorsement of an individual who:

   1. (a) is convicted of a drug offense;

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

      1. (i) registry identification card or license; or
      2. (ii) mature marijuana plants, seedlings, usable marijuana, or marijuana-infused products; or
   3. (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. (2) In addition to any other penalty provided by law, the department shall revoke a license issued under this part if the licensee:

   1. (a) purchases marijuana from an unauthorized source in violation of this part;
   2. (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;
   3. (c) operates a carbon dioxide or hydrocarbon extraction system without obtaining a chemical manufacturing endorsement; or
   4. (d) transports marijuana or marijuana-infused products outside of Montana.

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

   1. (a) a fine of $500 a week for the first 4 weeks that the laboratory fails to meet the requirement; and
   2. (b) a fine of $1,000 a week for each subsequent week the laboratory fails to meet the requirement.

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

   1. (a) a written warning for the first violation;
   2. (b) a 5-day license suspension or a $500 fine for a second violation;
   3. (c) a 5-day license suspension or a $1,000 fine for a third violation;
   4. (d) a 30-day license suspension or a $2,500 fine for a fourth violation; and
   5. (e) a license revocation for a fifth violation.
5. (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. (6) A licensee whose license is revoked may not reapply for licensure for 3 years from the date of the revocation.
7. (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. (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.