§ 1632. ADMINISTRATIVE PENALTIES AND ENFORCEMENT COSTS.

(a) Penalty Amounts. Any Person who violates this Article 16 (which is deemed in the entirety of this Section 1632 to include a violation of a permit condition and/or a violation of the rules and regulations adopted pursuant to this Article) shall be subject to an administrative penalty imposed by order of the Director, not to exceed $1,000 for each violation, for each day such violation occurs. However, in the case of a continuing violation, the Director shall not impose a daily administrative penalty for the second and subsequent days of such violation where the Director finds all of the following:

(1) In the 12 months preceding issuance of the Notice of Violation, the Cannabis Business was not issued a Notice of Violation, which was later upheld in whole or in part, for a similar violation;

(2) In the 12 months preceding issuance of the Notice of Violation, the Cannabis Business was issued no more than two Notices of Violation, which were later upheld in whole or in part, for any violation of this Article;

(3) The violation occurred notwithstanding that the Cannabis Business was acting in good faith; and

(4) The Cannabis Business promptly took reasonable steps to prevent future violations similar to the alleged violation(s), and arranged for the Director to re-inspect the Cannabis Business to confirm such reasonable steps.

(b) Setting Administrative Penalty. In setting the amount of the administrative penalty, the Director shall consider any one or more of the relevant circumstances presented, including but not limited to the following: the nature and seriousness of the misconduct giving rise to the violation, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the responsible party’s misconduct, and the responsible party’s assets, liabilities, and net worth.

(c) Setting Enforcement Costs. In any action where a violation is found, the Director shall assess the Office’s costs of enforcement against the Cannabis Business or any other Persons the Director finds responsible for causing the violation.

(d) Payment and Collection of Administrative Penalty and Enforcement Costs. Any administrative penalty and/or enforcement costs assessed under this Article 16 is a debt to the City and County of San Francisco and shall be paid to the Treasurer of the City and County of San Francisco. Any amount paid late shall be subject to an additional late fine of 10% on the unpaid amount. The sum of the unpaid amount and the 10% late fine shall accrue interest at the rate of 1% per month (or fraction thereof) until fully paid; any partial payments made shall first be applied to accrued interest. The City may file a civil action or pursue any other legal remedy to collect such unpaid amount, fine, and interest. In any civil action for collection, the City shall be entitled to obtain a judgment for the unpaid amounts, fine, and interest, and for the costs and attorneys’ fees incurred by the City in bringing such civil action.

(e) Lien for Administrative Penalty. Where an activity or condition on San Francisco real property has caused, contributed to, or been a substantial factor in causing the violation, the Director may initiate proceedings to make any unpaid administrative penalty, enforcement costs, fine, and interest, and all additional authorized costs and attorneys’ fees, a lien on the property. Such liens shall be imposed in accordance with Administrative Code Sections 10.230–10.237, or any successor provisions. Before initiating lien proceedings, the Director shall send a request for payment under Administrative Code Section 10.230A.

(Added by Ord. , File No. 171042, App. 12/6/2017, Eff. 1/5/2018)