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 sent to an unapproved source;
   2. (b) cannabis received from an unapproved source;
   3. (c) refusal to allow inspection;
   4. (d) refusal to participate in proficiency testing;
   5. (e) failure to comply with testing requirements;
   6. (f) failure to report testing results;
   7. (g) unauthorized personnel on the premises;

   8. (h) permitting criminal conduct on the premises;

      1. (i) engaging in or permitting a violation of the Title 4, Chapter 41a, Cannabis Production Establishments, that 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; or
   6. (f) engaging in or permitting a violation of Title 4, Chapter 41a, Cannabis Production Establishments or this rule that amounts to a regulatory violation as described in this subsection.

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 41, Cannabis Production Establishments, that 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.

KEY: cannabis laboratory, cannabis testing, inventory control system, cannabis waste disposal, agents, security requirements, operation plans

Date of Last Change: August 21, 2025

Authorizing, and Implemented or Interpreted Law: 4-41a-701(1); 4-41a-103(5)