1. (1) Public Safety Violations: $3,000- $5,000 per violation. This category is for violations which present a direct threat to public health or safety including:

   1. (a) cannabis sold to an unlicensed source;
   2. (b) cannabis purchased from an unlicensed source;
   3. (c) refusal to allow inspection;
   4. (d) failure to comply with testing requirements;
   5. (e) a test result for high pesticide residue in the cannabis produced or cannabis product;
   6. (f) a test result for high residual solvents, heavy metal, microbials, molds, or other harmful contaminants;
   7. (g) failure to maintain required cleanliness and sanitation standards;

   8. (h) unauthorized personnel on the premises;

      1. (i) permitting criminal conduct on the premises;
   9. (j) possessing, manufacturing, or distributing cannabis products that the person knows or should know appeal to children;

   10. (k) failure to follow an approved recall protocol; or

       1. (l) engaging in or permitting a violation of the Title 4, Chapter 41a, Cannabis Production Establishments, which amounts to a public safety violation as described in this subsection.

2. (2) Regulatory Violations: $1,000-$5,000 per violation. This category is for violations involving this rule and other applicable state rules including:

   1. (a) failure to maintain alarm and security systems;
   2. (b) failure to keep and maintain records for at least two years;
   3. (c) failure to maintain traceability;
   4. (d) failure to follow transportation requirements;
   5. (e) failure to follow the waste and disposal requirements;
   6. (f) failure to maintain separation between cannabis and hemp;
   7. (g) failure to follow labeling and packaging requirements;

   8. (h) failure to meet extraction requirements;

      1. (i) distributing a final cannabis product with an actual weight that is lower than the net weight listed on the cannabis fact panel;
   9. (j) engaging in or permitting a violation of Title 4, Chapter 41a, Cannabis Production Establishments or this rule which amounts to a regulatory violation as described in this subsection; or
   10. (k) failure to maintain standardized scales.

3. (3) Licensing Violations: $500- $5,000 per violation. This category is for violations involving licensing requirements including:

   1. (a) an unauthorized change to the operating plan;
   2. (b) failure to notify the department of changes to the operating plan;
   3. (c) failure to notify the department of changes to financial or voting interests of greater than 2%;
   4. (d) failure to follow the operating plan as approved by the department;
   5. (e) engaging in or permitting a violation of this rule or Title 4, Chapter 41a, Cannabis Production Establishments which amounts to a licensing violation as described in this subsection; or
   6. (f) failure to respond to violations.
4. (4) The department shall calculate penalties based on the level of violation and the adverse effect or potential adverse effect at the time of the incidents giving rise to the violation.
5. (5) The department may enhance or reduce the penalty based on the seriousness of the violation.

KEY: cannabis processing, cannabis production establishment, violations, targeted marketing, qualifications, and requirements

Date of Last Change: January 7, 2026

Authorizing, and Implemented or Interpreted Law: 4-41a-103(5); 4-41a-404(3); 4-41a-701(3); 4-41a-302(3)(b)(ii); 4-2-103(1)(i); 4-41a-405(2)(b)(iv); 4-41a-801(1)