218B.100 Cannabis businesses subject to reasonable inspection by the cabinet to
792 words·~4 min read·
/ky/218b-100A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
evaluate compliance -- License suspension or revocation -- Notice required --
Administrative hearing and judicial review -- Permissible activities during
suspension.
(a)Cannabis businesses shall be subject to reasonable inspection and
investigation by the cabinet pursuant to this subsection and the cabinet's
procedures or administrative regulations.
(b)The cabinet may inspect any licensed cannabis business premises without
having to first obtain a search warrant.
(c)The executive director of the Office of Medical Cannabis, or the executive
director's authorized representatives, shall have the authority to:
1. Enter any cannabis business without delay or advance notice during
regular working hours and at other reasonable times to:
a. Inspect the premises;
b. Privately question any owner, operator, agent, or employee of the
cannabis business or an employee's representative; and
c. Investigate conditions, facts, materials, practices, or other matters
deemed appropriate by the cabinet;
to determine if the cannabis business is operating in compliance with
this chapter and any administrative regulations promulgated thereunder;
2. Apply to the Circuit Court in the county in which the cannabis business
is located for an order to enforce the right of entry if the cannabis
business refuses entry as permitted in this subsection;
3. Following the completion of an inspection or investigation, confiscate,
possess, transport, and destroy any medicinal cannabis deemed by the
executive director, or the executive director's authorized representatives,
to be noncompliant with the cultivation, processing, producing,
transporting, safety compliance, or dispensary sale standards established
in this chapter or any administrative regulation promulgated thereunder;
4. Administer oaths, examine witnesses under oath, take depositions,
certify official acts, review records and accounts, take photographs, and
secure any other evidence deemed necessary to evaluate compliance
with this chapter and any administrative regulations promulgated
thereunder; and
5. Issue subpoenas to compel the:
a. Attendance of witnesses and parties; and
b. Production of books, accounts, correspondence, memoranda, and
other materials or records considered necessary and relevant to a
matter under investigation by the cabinet.
(d)If a witness or party fails to comply with a subpoena issued by the executive
director or the executive director's authorized representatives, the executive
director or the executive director's authorized representatives may petition the
Circuit Court of the county in which the witness or party is located to compel
compliance with the subpoena. Failure of a witness or party to comply with an
order of the court issued pursuant to this paragraph shall constitute a basis for
a finding of contempt by the court under KRS 432.230. In any proceeding
brought before a Circuit Court under this paragraph, the court may modify or
set aside the subpoena.
(2)The cabinet may, on its own motion or on complaint and after investigation,
suspend or revoke a cannabis business license for multiple violations or a serious
violation of this chapter or any administrative regulations promulgated thereunder
by the licensee or any of its agents. A suspension shall not be for a period of time
longer than six
(6)months.
(3)The cabinet shall provide notice of suspension, revocation, fine, or other penalty, as
well as the required notice of the hearing, by mailing, via certified mail, the same in
writing to the cannabis business at the address on the license. The cannabis business
may, within thirty
(30)days after the date of the mailing of the cabinet's notice, file
a written request for an administrative hearing regarding the suspension, revocation,
fine, or other penalty. The hearing shall be conducted in compliance with the
requirements of KRS Chapter 13B.
(4)Final orders of the cabinet after administrative hearings shall be subject to judicial
review. Jurisdiction and venue for judicial review are vested in the Circuit Court of
the county in which the cannabis business is physically located.
(5)A cultivator may continue to cultivate and possess cannabis plants during a
suspension, but it shall not transfer or sell medicinal cannabis during a suspension.
(6)A dispensary may continue to possess its existing medicinal cannabis inventory
during a suspension, but it shall not acquire additional medicinal cannabis, or
dispense, transfer, or sell medicinal cannabis during a suspension.
(7)A processor may continue to process and possess its existing medicinal cannabis
inventory during a suspension, but it shall not acquire additional medicinal
cannabis, or dispense, transfer, or sell medicinal cannabis products during a
suspension.
(8)A producer may continue to cultivate, process, and possess cannabis plants and its
existing medicinal cannabis inventory during a suspension, but it shall not acquire
additional medicinal cannabis, or dispense, transfer, or sell medicinal cannabis
during a suspension.
(9)A safety compliance facility may continue to possess medicinal cannabis during a
suspension, but it shall not receive any new medicinal cannabis, test or otherwise
analyze medicinal cannabis, or transfer or transport medicinal cannabis during a
suspension.