1. (a) The department may impose an administrative penalty against a person who violates this chapter.
2. (b) The department must notify a retailer of consumable hemp products of a potential violation and provide the registrant an opportunity to resolve unintentional or negligent violations after being notified by the department.

3. (c) The department assesses administrative penalties based upon one or more of the following criteria:

   1. (1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of any prohibited acts, and the hazard or potential hazard created to the health, safety, or economic welfare of the public;
   2. (2) the history of previous violations;
   3. (3) the amount necessary to deter future violations;
   4. (4) the efforts to correct the violation; and
   5. (5) any other matter that justice may require in relation to the violation.
4. (d) If the department determines that a violation has occurred, the department must issue a notice of violation. The notice must state the facts on which the determination is based. The notice must include an assessment of the penalty.
5. (e) The notice of violation must be in writing and be sent to the license holder or registrant by certified mail. The notice must include a summary of the alleged violation and a statement of the amount of the recommended penalty and must inform the person of a right to a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty.
6. (f) Within 20 business days after the date the person receives the notice of violation, the person in writing may accept the determination and recommended penalty of the department or may make a written request for a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty.
7. (g) If the person accepts the determination and recommended penalty, the department issues an order imposing the recommended penalty.
8. (h) If the person charged with the violation does not respond in writing within 20 business days after the date the person receives the notice of violation, the department may determine that a violation occurred and assesses the penalty. The department must issue an order requiring that the person pay the penalty.
9. (i) If the person requests a hearing, the department refers the matter to the State Office of Administrative Hearings.

Source Note:The provisions of this §300.606 adopted to be effective August 2, 2020, 45 TexReg 5195; amended to be effective March 31, 2026, 51 TexReg 1860.