Md. Code Regs. 14.17.14.03

Current through Register Vol. 51, No. 24, December 2, 2024

Section 14.17.14.03 - Inspections

A. Definition.

(1) In this regulation, the following term has the meaning indicated.

(2) Term Defined. "Investigator" means any Administration employee or contractor designated by the Administration to carry out an inspection under this regulation.

B. Submission of an application to be a licensee or registrant irrevocably gives the Administration consent to conduct all inspections to ensure compliance with State law and regulations.

C. The Administration may inspect all of a cannabis business applicant's premises and operations to ensure conformity with its application, State law, and regulations.

D. In the case of an inspection before the issuance of a license, the Administration shall arrange the inspection to take place at a mutually agreeable time.

E. Announced and Unannounced Inspections.

(1) The Administration may conduct announced and unannounced inspections of a licensee or registrant subject to the Administration's regulation, mission, and function, to determine compliance with statute and regulations.

(2) Failure by a licensee or registrant to provide the Administration with immediate access to any part of a premises, requested material, information, or agent as part of an inspection may result in the imposition of a civil fine, suspension of license, or revocation of license.

(3) During an inspection, the Administration may:

(a) Review and make copies of any and all records, including but not limited to financial data, sales data, employment data, or other material that would otherwise be considered proprietary;

(b) Enter any place, including but not limited to vehicles in which cannabis is held, dispensed, sold, produced, tested, delivered, transported, manufactured, or otherwise disposed of;

(c) Inspect all equipment, raw and processed material, containers, and labeling;

(d) Inventory any cannabis;

(e) Inspect any equipment, instruments, tools, or machinery used to process:

(i) Cannabis; or

(ii) Cannabis product;

(f) Investigate complaints; and

(g) Question personnel present at the location and any agent of the licensee.

(4) During an inspection, a material misstatement, omission, misrepresentation, or untruth by the cannabis business applicant, licensee, registrant, or agent may result in:

(a) Denial of the application;

(b) The imposition of a civil fine;

(c) Suspension of a license or registration; or

(d) Revocation of a license or registration.

F. Sample Collection and Testing as Part of Inspection.

(1) During an inspection, the Administration may obtain samples for testing of any:

(a) Cannabis;

(b) Cannabis product;

(c) Media used to grow cannabis;

(d) Chemicals or solvents used to process cannabis concentrate;

(e) Labels or containers for cannabis;

(f) Paraphernalia;

(g) Environmental swabs;

(h) Any waste material; and

(i) Raw or processed material.

(2) An investigator may contract with an independent testing laboratory or the State Cannabis Testing Laboratory to analyze the samples for any deviation from specification questioned by the investigator.

G. Investigative Actions.

(1) In the event that an investigator has cause to suspect an operational failure or conditions that create a likelihood of diversion, contamination, or a risk to the public health:

(a) An investigator may:

(i) Suspend the distribution of some or all cannabis from the cannabis licensee;

(ii) Order immediate evacuation of the premises and seal the entry door; or

(iii) Quarantine some or all cannabis;

(b) The Administration shall undertake a review of the inspection findings and may:

(i) Request a recall of the cannabis;

(ii) Request independent testing of affected cannabis;

(iii) Approve a procedure to reprocess the cannabis;

(iv) Notify law enforcement if diversion is suspected; or

(v) Order the destruction of contaminated or substandard cannabis; and

(c) The Administration may notify the local fire department or police department, or appropriate regulatory agency, regarding a risk to public health and safety.

(2) During an inspection or any investigation, a licensee, registrant, or agent, or employee shall comply with an Administration request to:

(a) Appear for a sworn statement; or

(b) Submit documents responsive to any Administration request.

H. The Administration shall leave a receipt and create a documented chain of custody for anything removed from the premises during an inspection.

I. Report of an Inspection and Letter of Non-Compliance.

(1) An investigator shall:

(a) Prepare an investigative report; and

(b) Deliver a copy of the report and obtain a receipt for the delivery.

(2) Within 10 business days from the receipt of a letter of non-compliance imposing a fine or demanding corrective action, a licensee shall:

(a) Respond in writing to each demand for corrective action;

(b) Set forth a plan for corrective action to be taken and the timetable for correction; and

(c) Pay the fine set forth in the letter of non-compliance.

(3) Upon receipt of a letter of non-compliance, a licensee or registrant may request an evidentiary hearing on the same provided such request is made in writing within 30 days of receipt of the letter of non-compliance in accordance with COMAR 14.17.22.

(4) If a licensee or registrant does not submit a request for a hearing in writing within the 30-day period, the agency action becomes a final determination and is not subject to appeal.

Md. Code Regs. 14.17.14.03

Regulation .03 adopted effective 50:14 Md. R. 559, eff. 7/1/2023 (EMERGENCY); adopted effective 51:14 Md. R. 676, eff. 6/7/2024, exp. 8/31/2024 (Emergency); adopted effective 51:14 Md. R. 678, eff. 7/22/2024.