Civil Penalties

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

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