[§329D-19.5]  Unlicensed operation of a dispensary; criminal penalty.  (a)  No person shall intentionally, knowingly, or recklessly operate a dispensary without a license issued by the department pursuant to this chapter.

     (b)  No person shall intentionally, knowingly, or recklessly operate any search platform, web hosting service, social media platform, or other service that posts information advertising the sale of cannabis or manufactured cannabis products by a person or entity engaged in the production, manufacture, or sale of cannabis and manufactured cannabis products without a license issued by the department pursuant to this chapter.

     (c)  The department shall issue a cease and desist notice to any person who violates subsections (a) or (b); provided that the department shall issue the cease and desist notice before initiating any criminal proceedings.

     (d)  Any person who violates subsection (a) shall be guilty of a class C felony.  Any person who violates subsection (b) shall be guilty of a misdemeanor.

     (e)  It shall be an affirmative defense to subsection (b) that the person operating any search platform, web hosting service, social media platform, or other service that posts information advertising the sale of cannabis or manufactured cannabis products had requested, examined, and reasonably relied upon a license that appeared to have been issued by the department that was shown to the person by the unlicensed person or unlicensed entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products establishing that the unlicensed person or unlicensed entity was licensed by the department to engage in the production, manufacture, or sale of cannabis or manufactured cannabis products pursuant to this chapter.  The failure of the person operating any search platform, web hosting service, social media platform, or other service that posts information advertising the sale of cannabis and manufactured cannabis products to request and examine a license issued by the department from the unlicensed person or unlicensed entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products before providing access to any search platform, web hosting service, social media platform, or other service that posts information advertising the sale of cannabis and manufactured cannabis products shall be construed against the person operating the search platform, web hosting service, social media platform, or other service that posts information advertising the sale of cannabis and manufactured cannabis products and form a conclusive basis for the person's violation of this section.

     (f)  This section shall not apply to:

     (1)  Hemp processors or hemp product retailers with a valid permit under chapter 328G; or

     (2)  Primary caregivers registered under chapter 329 who are acting within the scope of their registration. [L 2025, c 241, §11]