Maine Revised Statutes

§2448. Classes of licenses; license provisions

(CONTAINS TEXT WITH VARYING EFFECTIVE DATES)
(WHOLE SECTION TEXT EFFECTIVE 2/1/18)
1. State licensing authority may issue license.  For the purpose of regulating the cultivation, manufacture, distribution, sale and testing of retail marijuana and retail marijuana products, the state licensing authority, in its discretion, upon receipt of an application in the prescribed form, may issue and grant to the applicant a license from one or more of the following classes, subject to the provisions and restrictions provided by this chapter:
A. Retail marijuana store license; [IB 2015, c. 5, §1 (NEW).]
B. Retail marijuana cultivation facility license; [IB 2015, c. 5, §1 (NEW).]
C. Retail marijuana products manufacturing facility license; [IB 2015, c. 5, §1 (NEW).]
D. Retail marijuana testing facility license; [IB 2015, c. 5, §1 (NEW).]
E. Retail marijuana social club license; and [IB 2015, c. 5, §1 (NEW).]
F. Occupational licenses and registrations for owners, managers, operators, employees, contractors and other support staff employed at, working in or having access to restricted access areas of the licensed premises, as determined by the state licensing authority. [IB 2015, c. 5, §1 (NEW).]
[ IB 2015, c. 5, §1 (NEW) .]
2. Licensee to collect tax.  A retail marijuana store licensee or retail marijuana social club licensee shall collect sales tax on all retail sales made at a retail marijuana store or retail marijuana social club, respectively.
[ IB 2015, c. 5, §1 (NEW) .]
3. Retail marijuana store license.  The following provisions govern a retail marijuana store.
A. A licensed retail marijuana store may sell only retail marijuana, retail marijuana products, marijuana accessories, nonconsumable products such as apparel and marijuana-related products such as child-resistant containers, but is prohibited from selling or giving away any consumable product, including but not limited to cigarettes, alcohol and edible products that do not contain marijuana, including but not limited to sodas, candies and baked goods. Automatic dispensing machines that contain retail marijuana and retail marijuana products are prohibited. [IB 2015, c. 5, §1 (NEW).]
B. A retail marijuana store licensee shall track all of its retail marijuana and retail marijuana products from the point at which they are transferred from a retail marijuana cultivation facility or retail marijuana products manufacturing facility to the point of sale.
All retail marijuana and retail marijuana products sold at a licensed retail marijuana store must be packaged and labeled as required by rules of the state licensing authority and pursuant to section 2446, subsection 1. Notwithstanding the provisions of this section, a retail marijuana store licensee may also sell retail marijuana products that are prepackaged and labeled as required by rules of the state licensing authority and pursuant to section 2446, subsection 1. [IB 2015, c. 5, §1 (NEW).]
C. A person must be 21 years of age or older to make a purchase in a retail marijuana store.
(1) Prior to initiating a sale, the employee of the retail marijuana store making the sale shall verify that the purchaser has a valid government-issued identification card, or other acceptable identification, showing that the purchaser is 21 years of age or older. If a person under 21 years of age presents a fraudulent proof of age, any action relying on the fraudulent proof of age may not be grounds for the revocation or suspension of any license issued under this chapter.
(2) The state licensing authority shall adopt rules, which are routine technical rules as described in Title 5, chapter 375, subchapter 2-A, to prohibit certain signs, marketing and advertising, including but not limited to a prohibition on mass-market campaigns that have a high likelihood of reaching persons under 21 years of age.
These rules may include:
(a) A prohibition on health or physical benefit claims in advertising, merchandising and packaging;
(b) A prohibition on unsolicited advertising on the Internet;
(c) A prohibition on opt-in marketing that does not permit an easy and permanent opt-out feature; and
(d) A prohibition on marketing directed toward location-based devices, including but not limited to cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is 21 years of age or older and includes a permanent and easy opt-out feature.
(3) A magazine whose primary focus is marijuana or marijuana businesses may be sold only in a retail marijuana store or behind the counter in an establishment where persons under 21 years of age are present.
(4) A retail marijuana product may not contain an additive designed to make the product more appealing to children.
(5) Notwithstanding any other provision of state law, sales of retail marijuana and retail marijuana products are not exempt from state sales tax.
(6) Nothing in this chapter may be construed to limit a law enforcement agency's ability to investigate unlawful activity in relation to a retail marijuana establishment or retail marijuana social club. A law enforcement agency may run a Maine criminal history record check of a licensee, or employee of a licensee, during an investigation of unlawful activity related to retail marijuana and retail marijuana products. [IB 2015, c. 5, §1 (NEW).]
D. Retail marijuana and retail marijuana products may be transported between a licensed retail marijuana store and retail marijuana stores, retail marijuana cultivation facilities, retail marijuana products manufacturing facilities, retail marijuana social clubs and retail marijuana testing facilities. [IB 2015, c. 5, §1 (NEW).]
[ IB 2015, c. 5, §1 (NEW) .]
4. Retail marijuana cultivation facility license.  The state licensing authority shall create a statewide licensure class system for retail marijuana cultivation facilities. The Commissioner of Agriculture, Conservation and Forestry shall adopt rules to implement the statewide licensure class system. Rules adopted pursuant to this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.
A. The following provisions govern retail marijuana cultivation facilities.
(1) A retail marijuana cultivation facility licensee is permitted to cultivate retail marijuana for sale and distribution only to licensed retail marijuana stores, retail marijuana products manufacturing facilities, other retail marijuana cultivation facilities or retail marijuana social clubs.
(2) A retail marijuana cultivation facility may have a retail marijuana store if it is located on the same licensed premises as the retail marijuana cultivation facility. If the retail marijuana cultivation facility chooses the option to have a retail marijuana store, it must meet all requirements set by the state licensing authority, the Department of Agriculture, Conservation and Forestry and the municipality in which it is located. A retail marijuana store located on the licensed premises of a retail marijuana cultivation facility does not count against any municipal limits on the number of retail marijuana stores.
(3) A retail marijuana cultivation facility shall track the marijuana it cultivates from seed, clone or immature plant to wholesale purchase. The Commissioner of Agriculture, Conservation and Forestry may not make rules that are unreasonably impracticable concerning the tracking of marijuana from seed, clone or immature plant to wholesale purchase.
(4) A retail marijuana cultivation facility may provide, except as required by subsection 6, a sample of its products to a retail marijuana testing facility for testing and research purposes. A retail marijuana cultivation facility shall maintain a record of what was provided to the retail marijuana testing facility, the identity of the retail marijuana testing facility and the testing results. [2017, c. 278, §7 (AMD).]
B. Retail marijuana may be transported between a licensed retail marijuana cultivation facility and retail marijuana stores, other retail marijuana cultivation facilities, retail marijuana products manufacturing facilities, retail marijuana social clubs and retail marijuana testing facilities. [IB 2015, c. 5, §1 (NEW).]
[ 2017, c. 278, §7 (AMD) .]
5. Retail marijuana products manufacturing facility license.  The following provisions govern retail marijuana products manufacturing facilities and the preparation of retail marijuana products.
A. The following provisions govern retail marijuana products manufacturing facilities.
(1) A retail marijuana products manufacturing facility licensee is permitted to manufacture retail marijuana products pursuant to the terms and conditions of this chapter.
(2) A retail marijuana products manufacturing facility may cultivate its own retail marijuana if it obtains a retail marijuana cultivation facility license, or it may purchase retail marijuana from a licensed retail marijuana cultivation facility. A retail marijuana products manufacturing facility licensee shall track all of its retail marijuana from the point it is either transferred from its retail marijuana cultivation facility or the point when it is delivered to the retail marijuana products manufacturing facility from a licensed retail marijuana cultivation facility to the point of transfer to a licensed retail marijuana store, retail marijuana social club or retail marijuana testing facility. [IB 2015, c. 5, §1 (NEW).]
B. A retail marijuana products manufacturing facility licensee may not:
(1) Add any marijuana to a food product if the manufacturer of the food product holds a trademark to the food product's name, except that a retail marijuana products manufacturing facility licensee may use a trademarked food product if the licensee uses the product as a component or as part of a recipe and if the licensee does not state or advertise to the consumer that the final retail marijuana product contains a trademarked food product;
(2) Intentionally or knowingly label or package a retail marijuana product in a manner that would cause a reasonable consumer confusion as to whether the retail marijuana product was a trademarked food product;
(3) Label or package a product in a manner that violates any federal trademark law or regulation; or
(4) Include harmful additives in any retail marijuana product, including, but not limited to, those that are toxic, designed to make the product more addictive and designed to make the product more appealing to children or misleading to consumers, but not including common baking and cooking items. [IB 2015, c. 5, §1 (NEW).]
C. The following provisions govern the preparation of retail marijuana products.
(1) Retail marijuana products must be prepared on licensed premises that are used exclusively for the manufacture and preparation of retail marijuana or retail marijuana products and prepared using equipment that is used exclusively for the manufacture and preparation of retail marijuana and retail marijuana products.
(2) All licensed premises in which retail marijuana products are manufactured must meet the sanitary standards for retail marijuana product preparation adopted pursuant to section 2446, subsection 2 and must be licensed as commercial kitchens by the Department of Health and Human Services.
(3) Retail marijuana products must be packaged, sealed and conspicuously labeled in compliance with this chapter and any rules adopted pursuant to this chapter.
(4) A retail marijuana products manufacturing facility licensee may provide a sample of the licensee's products to a licensed retail marijuana testing facility pursuant to subsection 6 for testing and research purposes. A retail marijuana products manufacturing facility licensee shall maintain a record of what was provided to the retail marijuana testing facility, the identity of the testing facility and the results of the testing.
(5) A retail marijuana products manufacturing facility licensee may list ingredients and compatibility with dietary practices on an edible retail marijuana product.
(6) All retail marijuana products that require refrigeration to prevent spoilage must be stored and transported in a refrigerated environment. [IB 2015, c. 5, §1 (NEW).]
D. Nothing in this chapter may be construed to limit a law enforcement agency's ability to investigate unlawful activity in relation to a retail marijuana establishment. A law enforcement agency may run a Maine criminal history record check of a licensee, or employee of a licensee, during an investigation of unlawful activity related to retail marijuana and retail marijuana products. [IB 2015, c. 5, §1 (NEW).]
E. Retail marijuana products may be transported between a licensed retail marijuana products manufacturing facility and retail marijuana stores, other retail marijuana products manufacturing facilities, retail marijuana social clubs and retail marijuana testing facilities. [IB 2015, c. 5, §1 (NEW).]
[ IB 2015, c. 5, §1 (NEW) .]
6. Retail marijuana testing facility license.   The state licensing authority may issue a full or a provisional retail marijuana testing facility license in accordance with this chapter to a person to operate a retail marijuana testing facility for the purposes of developing, researching and testing marijuana, marijuana products and other substances.
A. A person with an interest in a retail marijuana testing facility licensed under this chapter may not be a registered caregiver or have an interest in a registered dispensary or in a retail marijuana store, a retail marijuana social club, a retail marijuana cultivation facility or a retail marijuana products manufacturing facility licensed under this chapter. A person who is a registered caregiver or who has an interest in a registered dispensary or in a retail marijuana store, a retail marijuana social club, a retail marijuana cultivation facility or a retail marijuana products manufacturing facility licensed under this chapter may not have an interest in a retail marijuana testing facility licensed under this chapter. For purposes of this paragraph, "interest" means an ownership interest or partial ownership interest or any other type of financial interest, including, but not limited to, being an investor or serving in a management position. [2017, c. 309, §7 (AMD).]
B. Retail marijuana and retail marijuana products may be transported between a retail marijuana testing facility and a retail marijuana cultivation facility, a retail marijuana products manufacturing facility, a retail marijuana store and a retail marijuana social club. [2017, c. 309, §7 (AMD).]
C. A licensed retail marijuana testing facility may not commence or continue operation unless the facility:
(1) Is certified for operation by the Department of Health and Human Services, Maine Center for Disease Control and Prevention in accordance with rules adopted by the Commissioner of Agriculture, Conservation and Forestry in consultation with the Department of Health and Human Services, Maine Center for Disease Control and Prevention;
(2) Except as otherwise provided in this subparagraph, is accredited pursuant to standard ISO/IEC 17025 of the International Organization for Standardization by a 3rd-party accrediting body or is certified, registered or accredited by an organization approved by the Commissioner of Agriculture, Conservation and Forestry. The Commissioner of Agriculture, Conservation and Forestry shall adopt rules regarding the scope of certification, registration or accreditation required for licensure as a retail marijuana testing facility.
The state licensing authority may issue a full retail marijuana testing facility license to a person who meets all applicable requirements of this chapter and rules adopted under this chapter and who has obtained accreditation pursuant to standard ISO/IEC 17025 of the International Organization for Standardization from a 3rd-party accrediting body or who is certified, registered or accredited by an approved organization.
The state licensing authority may issue a provisional retail marijuana testing facility license to a person who otherwise meets all applicable requirements of this chapter and rules adopted under this chapter and who has applied for but not yet obtained accreditation from a 3rd-party accrediting body or who has applied for but not yet obtained certification, registration or accreditation from an approved organization. The state licensing authority may not renew a provisional retail marijuana testing facility license more than once;
(3) Is determined by the Department of Agriculture, Conservation and Forestry to meet all operational and technical requirements for retail marijuana testing facilities under this chapter and applicable rules adopted under this chapter; and
(4) Is approved or licensed by the municipality in which the facility is physically located and notice of approval or licensure has been provided by the municipality to the state licensing authority. [2017, c. 309, §7 (NEW).]
D. A retail marijuana testing facility shall follow all testing protocols, standards and criteria adopted by rule by the Commissioner of Agriculture, Conservation and Forestry for the testing of different forms of marijuana and marijuana products; determining batch size; sampling; testing validity; and approval and disapproval of tested marijuana and marijuana products. [2017, c. 309, §7 (NEW).]
E. If a retail marijuana testing facility determines that a sample of marijuana or a marijuana product has failed testing, the facility shall offer to the owner of the sample that failed testing an opportunity for remediation and retesting in accordance with rules adopted by the Commissioner of Agriculture, Conservation and Forestry. [2017, c. 309, §7 (NEW).]
F. A retail marijuana testing facility shall maintain records of all business transactions and testing results in accordance with the record-keeping requirements of subsection 8-A and in accordance with applicable standards for licensing and accreditation under paragraph C and testing protocols, standards and criteria adopted by the Commissioner of Agriculture, Conservation and Forestry under paragraph D. [2017, c. 309, §7 (NEW).]
G. A retail marijuana testing facility shall dispose of used, unused and waste marijuana and marijuana products in accordance with rules adopted by the Commissioner of Agriculture, Conservation and Forestry. [2017, c. 309, §7 (NEW).]
H. A retail marijuana testing facility shall notify the Department of Agriculture, Conservation and Forestry of test results in accordance with section 2445, subsection 2. [2017, c. 309, §7 (NEW).]
I. A retail marijuana testing facility may develop, research and test marijuana and marijuana products for that facility; for another retail marijuana establishment or a retail marijuana social club; for a person who intends to use the marijuana or marijuana product for personal use as allowed under this chapter; or for a qualifying patient, a registered caregiver or a registered dispensary. A retail marijuana testing facility may develop, research and test other substances that are not marijuana or marijuana products for that facility or for any other person. [2017, c. 309, §7 (NEW).]
The Commissioner of Agriculture, Conservation and Forestry shall adopt rules regarding the testing of marijuana and marijuana products by retail marijuana testing facilities pursuant to this chapter, including, but not limited to, rules establishing acceptable testing and research practices for retail marijuana testing facilities, including, but not limited to, provisions relating to testing practices, methods and standards; remediation and retesting procedures; quality control analysis; equipment certification and calibration; chemical identification; testing facility record-keeping, documentation and business practices; disposal of used, unused and waste marijuana and marijuana products; and reporting of test results; rules establishing an independent testing and certification program pursuant to section 2445; and rules governing sampling and testing of retail marijuana and retail marijuana products pursuant to section 2448, subsection 8-A. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
[ 2017, c. 309, §7 (AMD) .]
7. Retail marijuana social club license.  The following provisions govern retail marijuana social clubs.
A. A licensed retail marijuana social club may sell only retail marijuana, retail marijuana products, marijuana accessories, nonconsumable products such as apparel, marijuana-related products and edible products that do not contain marijuana, including but not limited to sodas, candies and baked goods, but may not sell or give away cigarettes or alcohol. All retail marijuana and retail marijuana products purchased at a licensed retail marijuana social club must be consumed or disposed of on and may not be taken off the licensed premises. [IB 2015, c. 5, §1 (NEW).]
B. A retail marijuana social club shall track all of its retail marijuana and retail marijuana products from the point at which they are transferred from a retail marijuana cultivation facility, retail marijuana store or retail marijuana products manufacturing facility to the point of sale. [IB 2015, c. 5, §1 (NEW).]
C. The following provisions govern procedures for preventing sales to persons under 21 years of age.
(1) Prior to allowing a person onto the retail marijuana social club's licensed premises, an employee of the retail marijuana social club shall verify that the person has a valid government-issued identification card, or other acceptable identification, showing that the person is 21 years of age or older. If a person under 21 years of age presents a fraudulent proof of age, any action relying on the fraudulent proof of age may not be grounds for the revocation or suspension of any license issued under this chapter.
(2) The state licensing authority shall adopt rules, which are routine technical rules as described in Title 5, chapter 375, subchapter 2-A, to prohibit certain signs, marketing and advertising, including but not limited to a prohibition on mass-market campaigns that have a high likelihood of reaching persons under 21 years of age.
These rules may include:
(a) A prohibition on health or physical benefit claims in advertising, merchandising and packaging;
(b) A prohibition on unsolicited advertising on the Internet;
(c) A prohibition on opt-in marketing that does not permit an easy and permanent opt-out feature; and
(d) A prohibition on marketing directed toward location-based devices, including but not limited to cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is 21 years of age or older and includes a permanent and easy opt-out feature.
(3) Notwithstanding any other provision of state law, sales of retail marijuana and retail marijuana products are not exempt from state sales tax.
(4) Nothing in this chapter may be construed to limit a law enforcement agency's ability to investigate unlawful activity in relation to a retail marijuana establishment. A law enforcement agency may run a Maine criminal history record check of a licensee, or employee of a licensee, during an investigation of unlawful activity related to retail marijuana and retail marijuana products. [IB 2015, c. 5, §1 (NEW).]
D. Retail marijuana and retail marijuana products may be transported between a licensed retail marijuana social club and other retail marijuana social clubs or retail marijuana testing facilities. [IB 2015, c. 5, §1 (NEW).]
[ IB 2015, c. 5, §1 (NEW) .]
8. Inspection of books and records. 
[ 2017, c. 309, §8 (RP) .]
8-A. Inspections; record-keeping requirements; audit requirements; testing and sampling for product quality control.   A retail marijuana licensee shall submit to inspections and maintain business records in accordance with this subsection.
A. A licensee shall maintain a complete set of all records of the licensee's business transactions, which must be open to inspection and examination by the state licensing authority or the Department of Agriculture, Conservation and Forestry upon demand and without notice during all business hours. Records must be maintained by a licensee for a period comprising the current tax year and the 2 immediately preceding tax years. [2017, c. 309, §9 (NEW).]
B. The state licensing authority or the Department of Agriculture, Conservation and Forestry may require a licensee to furnish any additional information necessary for the proper administration of this chapter and the state licensing authority may require a licensee to submit to an audit of the licensee's business records. If the state licensing authority requires a licensee to submit to an audit, the licensee shall provide the auditor selected by the state licensing authority with access to all business records of the licensee and the cost of the audit must be paid by the licensee. [2017, c. 309, §9 (NEW).]
C. A licensee shall submit to an inspection of the licensed premises, including any places of storage, upon demand and without notice during all business hours and other times of apparent activity by the state licensing authority, the Department of Agriculture, Conservation and Forestry, a law enforcement agency or an official authorized by the municipality in which the licensed premises are located. If any part of the licensed premises consists of a locked area, a licensee shall, upon demand of the state licensing authority, the Department of Agriculture, Conservation and Forestry, a law enforcement agency or the official authorized by the municipality, open the locked area for inspection. [2017, c. 309, §9 (NEW).]
D. A licensee shall submit to the sampling and testing of retail marijuana or retail marijuana products upon demand and without notice during all business hours by the Department of Agriculture, Conservation and Forestry for the purposes of product quality control. Sampling and testing by the Department of Agriculture, Conservation and Forestry pursuant to this paragraph must be conducted in accordance with the requirements of section 2445 and rules adopted pursuant to section 2448, subsection 6. [2017, c. 309, §9 (NEW).]
[ 2017, c. 309, §9 (NEW) .]
9. Product pricing.  Nothing in this chapter may be construed as granting to the state licensing authority the power to fix prices for retail marijuana or retail marijuana products.
[ IB 2015, c. 5, §1 (NEW) .]
10. License fees.  The state licensing authority shall determine the revenue needed to set up the licensing and enforcement operations of the department and set the fees applicable to the categories as outlined in subsection 1 within the ranges specified in the following schedule:
A. Retail marijuana store license, $250 to $2,500, with a $10 to $250 nonrefundable application fee; [IB 2015, c. 5, §1 (NEW).]
B. Retail marijuana cultivation facility license, $10 to $100 per unit block, with a $10 to $250 nonrefundable application fee; [IB 2015, c. 5, §1 (NEW).]
C. Retail marijuana products manufacturing facility license, $100 to $1,000, with a $10 to $250 nonrefundable application fee; [IB 2015, c. 5, §1 (NEW).]
D. Retail marijuana testing facility license, $500, with a $10 to $250 nonrefundable application fee; [IB 2015, c. 5, §1 (NEW).]
E. Retail marijuana social club license, $250 to $2,500, with a $10 to $250 nonrefundable application fee; and [IB 2015, c. 5, §1 (NEW).]
F. Occupational licenses and registrations for owners, managers, operators, employees, contractors and other support staff employed at, working in or having access to restricted access areas of the licensed premises, as determined by the state licensing authority. [IB 2015, c. 5, §1 (NEW).]
[ IB 2015, c. 5, §1 (NEW) .]
11. License terms.  All licenses under this chapter are effective for one year from the date of issuance.
[ IB 2015, c. 5, §1 (NEW) .]
12. License renewal.  The following provisions govern license renewals.
A. Ninety days prior to the expiration date of an existing license, the state licensing authority shall notify the licensee of the expiration date by first class mail at the licensee's address of record with the state licensing authority. A licensee may apply for the renewal of an existing license to the state licensing authority not less than 30 days prior to the date of expiration. Upon receipt of an application for renewal of an existing license and any applicable fees, the state licensing authority shall, within 7 days, submit a copy of the application to the appropriate municipality to determine whether the application complies with all local restrictions on renewal of licenses. [IB 2015, c. 5, §1 (NEW).]
B. The state licensing authority may not accept an application for renewal of a license after the date of expiration, except that the state licensing authority may extend the expiration date of the license and accept a late application for renewal of a license as long as the applicant has filed a timely renewal application with the municipality. The state licensing authority or the municipality, in its discretion, subject to the requirements of section 2447 and based upon reasonable grounds, may waive the 30-day time requirements set forth in this subsection. [IB 2015, c. 5, §1 (NEW).]
C. Notwithstanding the provisions of paragraph A, a licensee whose license has been expired for not more than 90 days may file a late renewal application upon the payment of a nonrefundable late application fee of $250 to the state licensing authority. A licensee who files a late renewal application and pays the requisite fees may continue to operate until the state licensing authority takes final action to approve or deny the licensee's late renewal application unless the state licensing authority summarily suspends the license pursuant to subsection 16, this chapter and rules adopted pursuant to this chapter. [IB 2015, c. 5, §1 (NEW).]
D. The state licensing authority may administratively extend the expiration date of a license and accept a later application for renewal of a license at the discretion of the state licensing authority. [IB 2015, c. 5, §1 (NEW).]
E. The state licensing authority may, for good cause, elect to not renew a license. [IB 2015, c. 5, §1 (NEW).]
[ IB 2015, c. 5, §1 (NEW) .]
13. Inactive licenses.  The state licensing authority, in its discretion, may revoke or elect not to renew any license if it determines that the licensed premises have been inactive, without good cause, for at least one year.
[ IB 2015, c. 5, §1 (NEW) .]
14. Unlawful financial assistance.  The state licensing authority shall require a complete disclosure of all persons having a direct or indirect financial interest, and the extent of such interest, in each license issued under this chapter. This subsection is intended to prohibit and prevent the control of a retail marijuana store, retail marijuana cultivation facility, retail marijuana products manufacturing facility or retail marijuana social club by a person or party other than the persons licensed pursuant to the provisions of this chapter.
[ IB 2015, c. 5, §1 (NEW) .]
15. Denial of license.  The state licensing authority may, for good cause, deny approval of a license application. Upon denial of a license application, the state licensing authority shall inform the applicant of the basis for denial and the right to appeal the denial in a hearing.
[ IB 2015, c. 5, §1 (NEW) .]
16. Disciplinary actions.  In addition to any other sanctions prescribed by this chapter, or rules adopted pursuant to this chapter, the state licensing authority has the power, on its own motion or on complaint, after investigation and opportunity for a public hearing at which the licensee must be afforded an opportunity to be heard, to fine a licensee or to suspend or revoke a license issued by the state licensing authority for a violation by the licensee, or by any of the agents or employees of the licensee, of the provisions of this chapter or any of the rules adopted pursuant to this chapter or of any of the terms, conditions or provisions of the license issued by the state licensing authority. The state licensing authority has the power to administer oaths and issue subpoenas to require the presence of persons and the production of papers, books and records necessary for a hearing that the state licensing authority is authorized to conduct.
The state licensing authority shall provide notice of suspension, revocation, fine or other sanction, as well as the required notice of the hearing required by this subsection, by mailing the same in writing to the licensee at the address contained in the license and, if different, at the last address furnished to the state licensing authority by the licensee. Except in the case of a summary suspension, a suspension may not be for a period longer than 6 months. If a license is suspended or revoked, a part of the fees paid must be retained by the state licensing authority.
Whenever a decision of the state licensing authority suspending a license for 14 days or less becomes final, the licensee may, before the operative date of the suspension, petition for permission to pay a fine in lieu of having the license suspended for all or part of the suspension period. Upon the receipt of the petition, the state licensing authority may, in its sole discretion, stay the proposed suspension and cause any investigation to be made that it considers desirable and may, in its sole discretion, grant the petition if the state licensing authority is satisfied that:
A. The public welfare would not be impaired by permitting the licensee to operate during the period set for suspension and that the payment of the fine will achieve the desired disciplinary purposes; and [IB 2015, c. 5, §1 (NEW).]
B. The books and records of the licensee are kept in such a manner that the loss of sales that the licensee would have suffered had the suspension gone into effect can be determined with reasonable accuracy. [IB 2015, c. 5, §1 (NEW).]
The fine imposed may not be less than $500 nor more than $10,000. Payment of a fine pursuant to the provisions of this subsection must be in the form of cash or in the form of a certified check or cashier's check made payable to the state licensing authority.
Upon payment of the fine pursuant to this subsection, the state licensing authority shall enter its order permanently staying the imposition of the suspension. Fines paid to the state licensing authority pursuant to this subsection must be transmitted to the Treasurer of State.
In connection with a petition pursuant to this subsection, the authority of the state licensing authority is limited to the granting of such stays as are necessary for the state licensing authority to complete its investigation and make its findings and, if the state licensing authority makes such findings, to the granting of an order permanently staying the imposition of the entire suspension or that portion of the suspension not otherwise conditionally stayed.
If the state licensing authority does not make the findings required in this subsection and does not order the suspension permanently stayed, the suspension goes into effect on the operative date finally set by the state licensing authority.
No later than January 15th of each year, the state licensing authority shall compile a report of the preceding year's actions in which fines, suspensions or revocations were imposed by the state licensing authority. The state licensing authority shall include this information in its annual report to the Legislature.
[ IB 2015, c. 5, §1 (NEW) .]
17. Disposition of unauthorized retail marijuana or retail marijuana products and related materials.  The following provisions apply to the disposition of unauthorized retail marijuana or retail marijuana products and related materials.
A. The provisions of this subsection apply in addition to any criminal, civil or administrative penalties and in addition to any other penalties prescribed by this chapter or any rules adopted pursuant to this chapter. Every licensee is deemed, by virtue of applying for, holding or renewing that licensee's license, to have expressly consented to the procedures set forth in this subsection. [IB 2015, c. 5, §1 (NEW).]
B. If the state licensing authority issues a final agency order imposing a disciplinary action against a licensee pursuant to subsection 16, then, in addition to any other remedies, the state licensing authority's final agency order may specify that some or all of the licensee's marijuana or marijuana products is not retail marijuana or a retail marijuana product and is an illegal controlled substance. The order may further specify that the licensee loses any ownership interest in any of the marijuana or marijuana products even if the marijuana or marijuana products previously qualified as retail marijuana or a retail marijuana product. The final agency order may direct the destruction of any such marijuana and marijuana products. The authorized destruction may include the incidental destruction of any containers, equipment, supplies and other property associated with the marijuana or marijuana products. [IB 2015, c. 5, §1 (NEW).]
C. A district attorney, or an assistant attorney general, shall notify the state licensing authority if an investigation of a retail marijuana establishment or retail marijuana social club is commenced. If the state licensing authority has received notification from a district attorney, or an assistant attorney general, that an investigation is being conducted, the state licensing authority may not destroy any marijuana or marijuana products from the retail marijuana establishment or retail marijuana social club until the destruction is approved by the district attorney or assistant attorney general. [IB 2015, c. 5, §1 (NEW).]
D. A state or local agency may not be required to cultivate or care for any retail marijuana or retail marijuana products belonging to or seized from a licensee. A state or local agency is not authorized to sell marijuana, retail or otherwise. [IB 2015, c. 5, §1 (NEW).]
[ IB 2015, c. 5, §1 (NEW) .]
18. Judicial review.  Final agency actions by the state licensing authority are subject to judicial review pursuant to Title 5, section 11001, et seq.
[ IB 2015, c. 5, §1 (NEW) .]
19. Effective date.  This section takes effect February 1, 2018.
[ 2017, c. 1, §10 (NEW) .]
SECTION HISTORY
IB 2015, c. 5, §1 (NEW). 2017, c. 1, §10 (AMD). 2017, c. 278, §§7-9 (AMD). 2017, c. 309, §§7-9 (AMD).