1. (1) Public Safety Violations: $3,000 - $5,000 per violation. This category is for violations that 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 PIC requirements;
   5. (e) failure to maintain required general operating standards;
   6. (f) failure to comply with product recall requirements;
   7. (g) unauthorized personnel on the premises;

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

      1. (i) engaging in or permitting a violation of the Title 4, Chapter 41a, Medical Cannabis Pharmacy Operation and Agents, 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:

   1. (a) failure to maintain alarm and security systems;
   2. (b) failure to keep and maintain records for at least five 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 follow the walk- up, drive-thru, delivery, and curbside service requirements;
   7. (g) failure to follow targeted marketing requirements;

   8. (h) failure to follow agent duties and responsibilities requirements; or

      1. (i) engaging in or permitting a violation of Title 4, Chapter 41a, Medical Cannabis Pharmacy Operation and Agents or this rule which 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 10%;
   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, Medical Cannabis Pharmacy License 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: medical cannabis, medical cannabis pharmacy, targeted marketing, geographic regions, pharmacy cannabinoids, cannabis products

Date of Last Change: January 7, 2026

Authorizing, and Implemented or Interpreted Law: 4-41a-1101(12), 4-41a-1104(4), 4-2-103(1)(i)