Section 16-12-109, MCA, authorizes the Montana Department of Revenue (department) to take disciplinary action against a license. Such action may include a reprimand, revocation, suspension, denial of a renewal, and imposition of a civil penalty not to exceed $3,000.
The following civil penalties are starting points or baselines only. Section 16-12-109, MCA, provides that the department shall consider aggravating and mitigating circumstances and may adjust penalties within penalty ranges based on its consideration of these circumstances. Accordingly, these penalties represent the baseline before consideration of aggravating and mitigating circumstances that may apply in the department’s action.
The penalties set forth below are non-exhaustive. These represent the most common violations and associated penalties for which the department has issued Notices of Proposed Department Action.
Some of the civil penalties are identified as a range. The department considers each violation on a case-by-case basis, and the civil penalty associated with a violation is fact dependent. For example, one ounce of flower missing from a licensed premises is subject to a lesser penalty than 40 ounces of missing flower. Depending on the facts and the accumulation of violations, the department may impose a suspension or revoke the license.
MCA 16-12-111 details the distribution of funds from marijuana taxes, licensing fees, and civil penalties. Per this law, these funds are transferred to a special revenue account within the state special revenue fund. At the end of the fiscal year, a 3-month operating reserve for operating costs for the next fiscal year is allocated for the Cannabis Control Division (CCD). Subsequent funds are then allocated to designated accounts, while any remaining revenue is sent to the general fund for the state of Montana. The operating funds for the CCD are determined in House Bill 2.
If you have questions about the civil penalties associated with your Notice of Proposed Department Action, you may contact us at DORCCDLegal@mt.gov
| Citation | Violation | Civil Penalty |
|---|---|---|
| ARM 42.39.105(1) | Employee does not have a visible worker permit | $100 |
| ARM 42.39.105(6)(a) | Licensee does not show proof of compliance with local sign ordinances and regulations | $100 |
| ARM 42.39.105(6)(b) | Employees are not current on trainings | $100 |
| ARM 42.39.122 | Licensee does not display mandatory signage | $100 |
| ARM 42.39.105(5) | Licensee does not have written emergency procedures | $250 |
| ARM 42.39.122(1) 16-12-104(6), MCA |
Licensee does not conspicuously display license | $250 |
| ARM 42.39.105(4) | Licensee does not use a certified weighing device | $250 |
| ARM 42.39.312(3) | Licensee has not developed a recall plan | $250 |
| 16-12-203(5)(c), MCA | Onsite consumption of marijuana at a licensed premises | $500 |
| 16-12-207(12), MCA | Licensee allows someone under 21 on premises other than a registered cardholder or worker permit holder | $500 |
| ARM 42.39.311(6) | Licensee did not immediately report theft | $500 |
| 16-12-210(4)(a), MCA ARM 42.39.501(3) |
Licensee does not allow full access to the licensed premises | $500 to $3,000 |
| ARM 42.39.501(3) | Licensee does not allow inspector to complete inspection | $3,000 |
| Citation | Violation | Civil Penalty |
|---|---|---|
| 16-12-211, MCA ARM 42.39.123(5) |
Signage uses prohibited images or terms | $1,000 |
| 16-12-211, MCA ARM 42.39.123(7) | Licensee’s webpage does not utilize measures to verify visitor’s age | $1,000 |
| 16-12-211, MCA ARM 42.39.123(8) | Licensee’s social media account that advertises marijuana is not private and does not contain age notice | $1,000 |
| 16-12-211, MCA ARM 42.39.123(9)(a) | Licensee advertises via location-based devices | $1,000 |
| 16-12-211, MCA ARM 42.39.123(9)(b) | Licensee advertises via pop-up or push advertising via internet | $1,000 |
| 16-12-211, MCA ARM 42.39.123(9)(f) | Licensee uses objects likely to appeal to youth | $1,000 |
| 16-12-211, MCA ARM 42.39.123(9)(g) | Licensee uses a commercial mascot | $1,000 |
| 16-12-211, MCA ARM 42.39.123(9)(c) | Licensee advertises on television, radio, or print | $3,000 |
| 16-12-211, MCA ARM 42.39.123(9)(d) | Licensee advertises that its products are safe | $3,000 |
| 16-12-211, MCA ARM 42.39.123(9)(e) | Licensee utilizes a billboard | $3,000 |
| Citation | Violation | Civil Penalty |
|---|---|---|
| ARM 42.39.121(1) | Licensee does not have a written proactive security plan | $250 |
| 16-12-207(9), MCA ARM 42.39.121(3) |
Licensee does not have a security alarm system on perimeter entry points | $250 |
| 16-12-207(10), MCA ARM 42.39.121(4) ARM 42.39.121(5) |
Licensee does not have video monitoring equipment that meets the requirements of ARM 42.39.121(4) and (5) | $250 per deficiency |
| ARM 42.39.121(6) | Licensee fails to provide video monitoring footage upon request | $500 |
| Citation | Violation | Civil Penalty |
|---|---|---|
| ARM 42.39.314(2) | Labels do not comply with the requirements of ARM 42.39.314(2) | $250 per deficiency |
| ARM 42.39.314(3) | Labels do not contain the information required by ARM 42.39.314(3) | $250 per deficiency |
| ARM 42.39.314(4) | Labels do not contain the required warnings | $250 |
| ARM 42.39.314(5) | Labels contain false or misleading information | $250 |
| ARM 42.39.314(6) | Labels do not identity method of manufacture and solvent use | $250 |
| ARM 42.39.314(8) | Labels for medical marijuana products do not contain required information | $250 |
| ARM 42.39.314(9) ARM 42.39.316(2) ARM 42.39.317(2) ARM 42.39.318(2) |
Label lists total potential psychoactive THC for marijuana products that do not require heat to administer or consume | $250 |
| 16-12-208(6), MCA ARM 42.39.315 ARM 42.39.316(1)(c) ARM 42.39.317(1)(b) ARM 42.39.318(1)(c) |
Labels do not contain marijuana facts panel with required information | $250 per deficiency |
| ARM 42.39.316(1)(a) ARM 42.39.317(1)(a) ARM 42.39.318(1)(a) |
Label does not contain an ingredient list | $250 |
| ARM 42.39.316(1)(b) ARM 42.39.318(1)(b) |
Label does not contain an allergen statement | $250 |
| ARM 42.39.316(1)(d) ARM 42.39.318(1)(d) |
Label does not contain required warning | $250 |
| ARM 42.39.319(1)(b) | Packaging for multiple serving products is not resealable | $250 |
| ARM 42.39.319(1)(c) | Packaging appeals to children | $250 |
| 16-12-208(5), MCA ARM 42.39.319(1)(d) |
Package resembles trademarked product | $250 |
| 16-12-208(6), MCA ARM 42.39.319(2)(a) |
Exit packaging is not child resistant | $250 |
| ARM 42.39.319(2)(b) | Exit packaging is not opaque | $250 |
| ARM 42.39.319(2)(c) | Exit packaging does not contain required warnings | $250 |
| 16-12-208(6), MCA | Product not placed in exit packaging | $500 |
| Citation | Violation | Civil Penalty |
|---|---|---|
| ARM 42.39.202(8) ARM 42.39.203(8) |
Licensee is not finalizing sales, finishing harvests, and/or packages in Metrc | $250 |
| ARM 42.39.202(10) | Point-of-sale system not sharing data with Metrc | $250 |
| ARM 42.39.203(10)(a) | Licensee not immediately recording wet weight of harvests | $250 |
| ARM 42.39.203(10)(d) | Licensee not recording weight and disposal of post-harvest waste | $250 |
| ARM 42.39.203(10)(e) | Licensee does not record theft or loss of marijuana | $500 |
| ARM 42.39.202(6) | Licensee not recording all seed to sale tracking activities | $250 to $3,000 |
| ARM 42.39.202(8) | Licensee not ensuring accuracy of all information entered in Metrc | $250 to $3,000 |
| ARM 42.39.203(2) | 12-inch plants have not been assigned a unique identification number | $250 to $3,000 |
| ARM 42.39.203(5) | Marijuana items, test batches, harvest lots, and/or process lots have not been assigned a unique identification number | $250 to $3,000 |
| ARM 42.39.203(6) | Tags are not legible or free from dirt and debris | $250 to $3,000 |
| ARM 42.39.203(8) | Licensee not reconciling inventories at the close of business each day | $250 to $3,000 |
| Citation | Violation | Civil Penalty |
|---|---|---|
| ARM 42.39.310(2) | Waste not stored in secure receptacle under control of licensee | $250 |
| ARM 42.39.310(3) and (4) | Waste not rendered unusable | $250 |
| ARM 42.39.310(6) | Waste disposed of improperly | $250 |
| ARM 42.39.310(8) | Licensee does not maintain complete and accurate waste records | $250 |
| ARM 42.39.310(9) | Licensee does not provide 72-hours’ notice before disposing of waste | $250 |
| Citation | Violation | Civil Penalty |
|---|---|---|
| ARM 42.39.401(7) | Licensee does not maintain safe and sanitary operations | $250 |
| ARM 42.39.401(8)(a) | Licensee uses unsafe or unsanitary equipment or counters | $250 |
| ARM 42.39.401(8)(b) | Licensee does not maintain detailed instructions for making each marijuana product | $250 |
| ARM 42.39.401(9) | Licensee engaged in chemical manufacturing does not maintain safe and sanitary operations | $250 |
| ARM 42.39.401(16) | Licensee fails to maintain mandatory standard operating procedures | $250 |
| ARM 42.39.401(12) | Licensee uses a branded, commercially food product without rendering it unrecognizable | $1,000 |
| ARM 42.39.401(15) | Licensee alters a product with synthetic cannabinoid such as Delta-8 | $3,000 |
| Citation | Violation | Civil Penalty |
|---|---|---|
| ARM 42.39.405(8) | Licensee fails to maintain mandatory standard operating procedures | $250 |
| ARM 42.39.405(10) | Licensee fails to maintain agricultural chemical information onsite | $250 |
| ARM 42.39.405(11) | Licensee fails to maintain a log of all agricultural chemicals in Metrc | $250 |
| ARM 42.39.405(12) | Licensee cultivates hemp at a licensed premises | $1,000 |
| 16-12-203(6), MCA | Licensee grows outdoors without approval | $1,000 to $3,000 |
| Citation | Violation | Civil Penalty |
|---|---|---|
| 16-12-207(9), MCA | Dispensary has more than one secure entrance | $250 |
| ARM 42.39.409(10) | Licensee not recording sales in real time | $250 |
| 16-12-210(3), MCA | Licensee does not maintain records of transactions with customers | $500 |
| 16-12-207(7), MCA | Licensee offers free marijuana or marijuana samples | $250 to $3,000 |
| 16-12-207(11), MCA | Licensee open outside operating hours | $250 to $3,000 |
| 16-12-224(8)(c), MCA | Licensee sells medical products to adult use consumers | $250 to $3,000 |
| 16-12-224(9), MCA | Licensee sells in excess of personal possession limits | $250 to $3,000 |
| ARM 42.39.409(11) | Licensee sells at the 4% tax rate to someone without a valid medical card | $1,000 |
| ARM 42.39.203(9) | Licensee does not verify cardholder eligibility or record sale in Metrc | $1,000 |
| ARM 42.39.409(12) | Licensee does not check for valid ID before sale | $1,000 |
| 16-12-208(7), MCA ARM 42.39.409(13) | Licensee sells hemp flower or hemp plants | $1,000 |
| 16-12-104(12), MCA | Licensee does not purge metadata obtained from ID scan | $1,000 |
| 16-12-208(5), MCA | Licensee sells product in shapes attractive to children or easily confused with commercial product | $1,000 |
| 16-12-203(4), MCA 16-12-209(1), MCA | Licensee does not submit samples for testing or sells untested product | $3,000 |
| 16-12-208(7), MCA | Licensee provides alcohol at a licensed premises | $3,000 |
| >Citation | Violation | Civil Penalty |
|---|---|---|
| ARM 42.39.413(4)(a) | Licensee does not transport in a vehicle | $250 |
| ARM 42.39.413(4)(b) | Transport does not depart from licensed premises or arrive at licensed premises or cardholder address | $250 |
| ARM 42.39.413(4)(c) | Transport is not accompanied by a manifest with required information | $250 per manifest omission/inaccuracy |
| ARM 42.39.413(4)(d) | Transport is not accomplished within 48 hours | $250 |
| ARM 42.39.413(5) | Manifest is voided or changed after leaving departure location | $250 |
| ARM 42.39.413(7) | Licensee receives product without a valid transfer manifest | $250 |
| ARM 42.39.413(8) | Receiving licensee does not check that manifest matches delivery | $250 |
| ARM 42.39.413(9) | Licensee does not report manifest and delivery discrepancies to the department | $250 |
| ARM 42.39.413(10) | Products in transport are not shielded from view or in a locked compartment | $250 |
| ARM 42.39.413(11) | Transport occurs in vehicle that does not satisfy requirements of ARM 42.39.413(11)(a) through (c) | $250 |
| ARM 42.39.413(11)(d) | Transport vehicle has markings indicating it is a marijuana transporter | $500 |
| ARM 42.39.413(13) | Licensee fails to report accident to the department | $500 |
| ARM 42.39.413(12) | Licensee delivers adult use marijuana | $1,000 |
| ARM 42.39.413(12) | Transporter sells adult use marijuana to cardholder or consumer | $3,000 |
| ARM 42.39.413(14) | Licensee refuses to present manifest to department or law enforcement | $3,000 |