1. (1)

   1. (a) If a person that is a cannabis production establishment, a cannabis production establishment agent, a medical cannabis pharmacy, a medical cannabis pharmacy agent, or a medical cannabis courier, violates this chapter, the department may:

      1. (i) revoke the person's license or agent registration card;
      2. (ii) decline to renew the person's license or agent registration card;
      3. (iii) assess the person an administrative penalty that the department establishes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
      4. (iv) provide a letter of concern in accordance with Subsection (8).
   2. (b) Except for a violation that threatens public health or for the third violation of the same rule or statute in a 24-month period, the department shall issue a letter of concern before taking other administrative action under this section.
2. (2) The department shall deposit an administrative penalty imposed under this section into the General Fund.

3. (3)

   1. (a) The department may take an action described in Subsection (3)(b) if the department concludes, upon investigation, that, for a person that is a cannabis production establishment, a cannabis production establishment agent, a medical cannabis pharmacy, a medical cannabis pharmacy agent, or a medical cannabis courier:

      1. (i) the person has violated the provisions of this chapter, a rule made under this chapter, or an order issued under this chapter; or.
      2. (ii) the person produced cannabis or a cannabis product batch that contains a substance, other than cannabis, that poses a significant threat to human health.

   2. (b) If the department makes the determination about a person described in Subsection (3)(a), the department may:

      1. (i) issue the person a written administrative citation;
      2. (ii) attempt to negotiate a stipulated settlement;
      3. (iii) order the person to cease and desist from the action that creates a violation; or
      4. (iv) direct the person to appear before an adjudicative proceeding conducted under Title 63G, Chapter 4, Administrative Procedures Act.
   3. (c) If the department concludes, upon investigation, that a cannabis production establishment or a cannabis production establishment agent has produced a cannabis batch or a cannabis product batch that contains a substance that poses a significant threat to human health, the department shall seize, embargo, or destroy the cannabis batch or cannabis product batch.
4. (4) The department may, for a person subject to an uncontested citation, a stipulated settlement, or a finding of a violation in an adjudicative proceeding under this section, for a fine amount not already specified in law, assess the person, who is not an individual, a fine of up to $5,000 per violation, in accordance with a fine schedule that the department establishes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
5. (5) The department may not revoke a license without first directing the licensee to appear before an adjudicative proceeding conducted under Title 63G, Chapter 4, Administrative Procedures Act.
6. (6) If within 30 calendar days after the day on which a department serves a citation for a violation of this chapter, the person that is the subject of the citation fails to request a hearing to contest the citation, the citation becomes the department's final order.

7. (7) The department may, for a person who fails to comply with a citation under this section:

   1. (a) refuse to issue or renew the person's license or agent registration card; or
   2. (b) suspend, revoke, or place on probation the person's license or registration card.

8. (8)

   1. (a) A letter of concern shall describe:

      1. (i) the violation including the statute or rule being violated;
      2. (ii) possible options to remedy the issue; and
      3. (iii) possible consequences for not remedying the violation.
   2. (b) Under a letter of concern, the department shall provide the person at least 30 days to remedy the violation.
   3. (c) If the person fails to remedy the violation described in a letter of concern, the department may take other enforcement action as described in this section.
   4. (d) If a letter of concern is resolved without an enforcement action being taken under Subsection (8)(c), the department may not report that a letter of concern was issued to the licensing board.

9. (9)

   1. (a) Except where a criminal penalty is expressly provided for a specific violation of this chapter, or where civil and criminal penalties are provided for violations of Section 76-10-31, if an individual:

      1. (i) violates a provision of this chapter, the individual is:

         1. (A) guilty of an infraction; and
         2. (B) subject to a $100 fine; or

      2. (ii) intentionally or knowingly violates a provision of this chapter or violates this chapter three or more times, the individual is:

         1. (A) guilty of a class B misdemeanor; and
         2. (B) subject to a $1,000 fine.
   2. (b) An individual who is guilty of a violation described in Subsection (9)(a) is not guilty of a violation of Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, for the conduct underlying the violation described in Subsection (9)(a).

10. (10) Nothing in this section prohibits:

    1. (a) the department from referring potential criminal activity to law enforcement; or
    2. (b) the attorney general from investigating or prosecuting individuals or businesses for violations of Title 76, Chapter 16, Part 5, Antitrust Offenses.

Amended by Chapter 362, 2026 General Session