§ 7–1675.01. Penalties for commercial property owners of illegal cannabis businesses.

*NOTE: This section includes amendments by temporary legislation that will expire on November 21, 2024. To view the text of this section after the expiration of all emergency and temporary legislation affecting this section, click this link: Past Permanent Version.*

(a)(1) After the Alcoholic Beverage and Cannabis Board ("ABC Board") makes final determinations for the licensure of unlicensed establishments pursuant to §§ 7-1671.06a and 7-1671.06b for the first violation of § 7-1671.08(f), the ABC Board shall send a notice to the commercial property owner where the illegal activity occurred stating:

(A) The nature of illegal activity documented on the premises;

(B) The specific action or actions being taken against the licensee operating on the premises; and

(C) That the commercial property owner may be subject to civil penalties for any subsequent illegal activity under § 7-1671.08(f) pursuant to subsection (c) of this section.

(2) Notices issued pursuant to this subsection shall be provided to the Director of the Department of Licensing and Consumer Protection, and the Office of the Attorney General.

(b) For any subsequent violation of § 7-1671.08(f):

(1) The ABC Board shall issue a fine in the amount of up to $10,000 to the commercial property owner; and

(2)(A) The ABC Board shall require the commercial property owner to submit a remediation plan within 14 days after the notice of a fine under paragraph (1) of this subsection to the ABC Board that contains the commercial property owner's plan to prevent any future violations of § 7-1671.08(f).

(B) If the commercial property owner fails to submit a remediation plan in accordance with subparagraph (A) of this paragraph, or if the ABC Board rejects the commercial property owner's remediation plan, the ABC Board may issue additional fines.

(c)(1) A commercial property owner has the right to request a hearing with the Alcoholic Beverage and Cannabis Board ("ABC Board")" within 3 business days after service of notice of any actions taken under subsection (b) of this section.

(2) If a commercial property owner timely requests a hearing pursuant to this subsection, the ABC Board shall hold a hearing before an administrative law judge within 3 business days after receiving the request.

(3) The ABC Board shall issue an opinion no later than 30 calendar days after the hearing.

(d) Revenue collected from fines imposed pursuant to this section shall be deposited as follows:

(1) The first $100,000 shall be deposited into the Litigation Support Fund established pursuant to § 1-301.86b; and

(2) Any revenue collected from fines after the first $100,000 shall be deposited into the Medical Cannabis Social Equity Fund established pursuant to § 7-1671.08b.

(e) For purposes of this paragraph, the term:

(1) "Business days" means days in which the ABC Board is open for business.

(2) "Cannabis" shall have the same meaning as provided in § 48-901.02(3).