# Mont. Code Ann. § 16-12-109: 16-12-109 Unlawful conduct by licensees -- penalties > Montana · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-109 ## Section - **Citation:** Mont. Code Ann. § 16-12-109 - **Heading:** 16-12-109 Unlawful conduct by licensees -- penalties - **Jurisdiction:** Montana - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** MT Code / Title 16 / Chapter 12 / Part 1 / Section 16-12-109 ## Text 16-12-109 . Unlawful conduct by licensees -- penalties. (1) If the department has reasonable cause to believe that a licensee has violated a provision of this chapter or a rule of the department, it may, in its discretion and in addition to any other penalties prescribed: (a) reprimand a licensee; (b) revoke the license of the licensee; (c) suspend the license for a period of up to 1 year; (d) refuse to grant a renewal of the license after its expiration; or (e) impose a civil penalty not to exceed $3,000. (2) The department shall consider mitigating circumstances and may adjust penalties within penalty ranges based on its consideration of mitigating circumstances. Examples of mitigating circumstances are: (a) compliance with the provisions of this chapter within the prior 3 years; (b) the licensee has made good faith efforts to prevent a violation; or (c) the licensee has cooperated in the investigation of the violation and the licensee or an employee or agent of the licensee accepts responsibility. (3) The department shall consider aggravating circumstances and may adjust penalties within penalty ranges based on its consideration of aggravating circumstances. Examples of aggravating circumstances are: (a) prior warnings about compliance problems; (b) prior violations of the provisions of this chapter within the past 3 years; (c) lack of written policies governing employee conduct; (d) additional violations revealed during the course of the investigation; (e) efforts to conceal a violation; (f) intentional violations; or (g) involvement of more than one patron or employee in a violation. (4) For each licensing program regulated by the department under this chapter, the department is designated as a criminal justice agency within the meaning of 44-5-103 for the purpose of obtaining confidential criminal justice information regarding licensees and license applicants and regarding possible unlicensed practice. (5) The department shall revoke and may not reissue a license or endorsement belonging to a person: (a) whose controlling beneficial owner is an individual convicted of a felony drug offense; (b) who allows another person not authorized or lawfully allowed to be in possession of the license; (c) who transports marijuana or marijuana products outside of Montana, unless otherwise allowed by federal law; (d) who operates a carbon dioxide or hydrocarbon extraction system without obtaining a manufacturing license; (e) who purchases marijuana from an unauthorized source in violation of this chapter; or (f) who sells, distributes, or transfers marijuana or marijuana products to a person the licensee knows or should know is under 21 years of age, unless the person is a registered cardholder. (6) A licensee whose license is revoked may not reapply for licensure for 3 years from the date of the revocation. (7) (a) Review of a department action imposing a fine, suspension, or revocation under this chapter must be conducted as a contested case hearing before the department's office of dispute resolution under the provisions of the Montana Administrative Procedure Act. (b) A person may appeal any decision of the department concerning the issuance, rejection, suspension, or revocation of a license provided for by this chapter to the district court in the county in which the person operates or proposes to operate. If a person operates or seeks to operate in more than one county, the person may seek judicial review in the district court with jurisdiction over actions arising in any of the counties where it operates or seeks to operate. (c) An appeal pursuant to subsection (7)(b) must be made by filing a complaint setting forth the grounds for relief and the nature of relief demanded with the district court within 30 days following receipt of notice of the department's final decision. ## Nearby sections - [Mont. Code Ann. § 16-12-101 16-12-101 Short title -- purpose](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-101.md) - [Mont. Code Ann. § 16-12-102 16-12-102 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-102.md) - [Mont. Code Ann. § 16-12-103 16-12-103 Department authority](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-103.md) - [Mont. Code Ann. § 16-12-104 16-12-104 Department responsibilities -- licensure](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-104.md) - [Mont. Code Ann. § 16-12-105 16-12-105 Department responsibility to monitor and assess marijuana production, testing, sales, and license revocation](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-105.md) - [Mont. Code Ann. § 16-12-106 16-12-106 Personal use and cultivation of marijuana -- penalties](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-106.md) - [Mont. Code Ann. § 16-12-107 16-12-107 Legal protections -- allowable amounts](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-107.md) - [Mont. Code Ann. § 16-12-108 16-12-108 Limitations of act](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-108.md) - [Mont. Code Ann. § 16-12-109 16-12-109 Unlawful conduct by licensees -- penalties](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-109.md) - [Mont. Code Ann. § 16-12-110 16-12-110 Legislative monitoring](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-110.md) - [Mont. Code Ann. § 16-12-111 16-12-111 Marijuana state special revenue account -- operating reserve -- transfer of excess funds](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-111.md) - [Mont. Code Ann. § 16-12-112 16-12-112 Rulemaking authority -- fees](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-112.md) - [Mont. Code Ann. § 16-12-113 16-12-113 Decriminalized acts -- petition for expungement or resentencing -- retroactive application](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-113.md) - [Mont. Code Ann. § 16-12-114 16-12-114 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MT_T16_C12_P1_S16-12-109. Check the current official text before relying on it. Not legal advice.