Republica Dominicana
Presidential Decree No. 050-DR
Issued by: Future DR President Candidate
Subject: Legal Cannabis Licensing and Revenue Generation Framework
Effective March 1, 2028
TITLE I: SHORT TITLE AND PURPOSE
Section 1.01 Short Title
This Act shall be known and may be cited as the "Dominican Cannabis Licensing and Infrastructure Development Act of 2028" (hereinafter "the Act").
Section 1.02 Declaration of Purpose
The Dominican Republic enacts this legislation to establish a regulated, licensed cannabis industry that generates sustainable revenue for critical infrastructure development, public health initiatives, and institutional accountability. The Act recognizes that controlled legalization under strict state oversight can redirect illicit market activity into formal, tax-generating commerce while maintaining public safety standards and community protection. All revenues generated through licensing fees, annual renewals, and cannabis excise taxes shall flow directly into the Dominican Infrastructure Development Fund, specifically allocated for the following priorities:
(a) Water treatment and sanitation systems in rural communities (b) Road and highway infrastructure improvements (c) Emergency response and fire safety systems upgrades (d) Electrical grid modernization and renewable energy initiatives (e) Telecommunications infrastructure in underserved regions (f) Hospital and healthcare facility equipment and staffing (g) Institutional accountability systems including transparency infrastructure
TITLE II: DEFINITIONS
Section 2.01 Definitions
For purposes of this Act, the following terms shall have the meanings set forth below:
"Cannabis" means all parts of the plant of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin, which is designed for human consumption or therapeutic use, containing tetrahydrocannabinol (THC) in concentrations not exceeding regulatory limits as defined by the Dominican Health Ministry.
"Licensee" means any person, business entity, partnership, corporation, or cooperative that has been granted a valid license to operate a cannabis retail facility under the provisions of this Act.
"Retail Facility" means a physical location within Dominican territory where cannabis products are sold directly to adult consumers in compliance with this Act and all applicable regulations.
"Applicant" means any person or entity seeking a license to operate a cannabis retail facility.
"Department" or "Regulatory Authority" means the Cannabis Licensing and Compliance Department, established within the Ministry of Interior and Police, with coordinating authority from the Ministry of Finance and the Ministry of Public Health.
"Initial License Fee" means the nonrefundable application and licensing fee of one hundred thousand Dominican pesos (RD 100,000) required for initial licensure.
"Annual Renewal Fee" means the recurring annual license renewal fee ranging from twenty-five thousand to thirty-five thousand Dominican pesos (RD 25,000 to RD 35,000), adjusted based on facility classification and compliance history.
"Compliance Score" means the regulatory compliance rating assigned to each licensee based on adherence to operational standards, security protocols, reporting requirements, and community impact assessments.
"Facility Classification" means the categorization of cannabis retail operations based on size, location, annual revenue, and community demographics, ranging from Tier One (small community operations) through Tier Three (commercial hub operations).
"Infrastructure Development Fund" means the dedicated revenue account administered by the Ministry of Finance into which all cannabis licensing revenue, renewal fees, and excise taxes are deposited and allocated according to Title VII of this Act.
TITLE III: CANNABIS LICENSING BOARD AND REGULATORY FRAMEWORK
Section 3.01 Establishment of Cannabis Licensing and Compliance Department
There is hereby established within the Ministry of Interior and Police the Cannabis Licensing and Compliance Department (hereinafter "Department"). The Department shall be headed by a Director appointed by the Minister of Interior with confirmation from the Senate Committee on Institutional Development.
Section 3.02 Composition and Authority
The Department shall comprise the following divisions:
(a) Licensing and Application Division: Responsible for receiving applications, conducting background investigations, and issuing or denying licenses.
(b) Compliance and Inspection Division: Responsible for ongoing facility inspections, regulatory compliance monitoring, and enforcement actions.
(c) Revenue and Finance Division: Responsible for fee collection, fund management, and transfer of revenues to the Infrastructure Development Fund.
(d) Community and Public Health Division: Responsible for community impact assessments, public education, and coordination with health authorities.
(e) Interdiction and Security Division: Responsible for investigating illegal cannabis operations, coordinating with law enforcement, and protecting licensed facilities.
Section 3.03 Powers and Duties
The Department shall have authority to:
(a) Accept and review license applications according to established criteria and timelines.
(b) Conduct comprehensive background investigations of applicants, owners, and financial principals.
(c) Issue, renew, suspend, or revoke licenses in accordance with this Act.
(d) Establish and enforce operational standards for all licensed facilities.
(e) Conduct announced and unannounced inspections of licensed facilities.
(f) Collect fees and process payments in accordance with Title IV.
(g) Report quarterly to the Senate Committee on Institutional Development regarding licensing activity, revenue generation, and compliance metrics.
(h) Coordinate with Dominican law enforcement to maintain public safety and prevent diversion of cannabis products to illegal markets.
TITLE IV: LICENSING REQUIREMENTS AND FEE STRUCTURE
Section 4.01 Initial License Application Fee
Any person, business entity, partnership, corporation, or registered cooperative seeking to operate a cannabis medical or pharmaceutical facility shall submit a complete application to the Department accompanied by a nonrefundable Initial License Fee of one hundred thousand Dominican pesos (RD 100,000). This fee covers the cost of application processing, background investigation, facility inspection, and administrative review.
Section 4.02 Application Requirements
All applicants shall provide the following documentation:
(a) Completed application form in triplicate, signed and notarized.
(b) Proof of identity for all owners, managers, and financial principals, including copies of national identity documents or passports.
(c) Detailed business plan including location, operational hours, security protocols, inventory management systems, employee training procedures, and community engagement strategy.
(d) Proof of ownership or binding lease agreement for the proposed facility location. The location must meet the following criteria: (i) Not within 300 meters of schools, daycare facilities, youth recreation centers, or hospitals. (ii) Not within 500 meters of other licensed cannabis retail facilities unless located in designated commercial zones. (iii) Located in areas with established commercial infrastructure and adequate emergency services access. (iv) Not in residential areas without specific municipal zoning approval.
(e) Financial documentation including business licensing, tax compliance records for the past three years, and proof of capital for initial operations.
(f) Criminal background check authorization for all owners and managers, conducted through Dominican law enforcement databases and international criminal records systems.
(g) Community impact assessment addressing local employment, neighborhood security concerns, traffic patterns, and community benefits.
(h) Detailed security plan including video surveillance specifications, alarm systems, access controls, inventory tracking technology, and emergency protocols.
(i) Employee training and certification program outline.
(j) Product testing and quality assurance protocols.
(k) Insurance documentation covering general liability, property damage, and customer injury with minimum coverage of RD 500,000.
Section 4.03 Application Review Process and Timeline
(a) Upon receipt of a complete application with the Initial License Fee, the Department shall provide written acknowledgment within five business days.
(b) Background investigations shall be completed within thirty days of acknowledgment.
(c) If the background investigation reveals concerns or incomplete information, the Department shall notify the applicant and provide thirty days for response.
(d) Facility inspection shall occur within forty-five days of application acknowledgment.
(e) Final approval or denial decision shall be issued within sixty days of application acknowledgment, unless additional investigation is warranted.
(f) If denied, applicants may request a hearing before the Department Director within thirty days. Denial decisions shall include specific reasons and may be appealed to the Senate Committee on Institutional Development within thirty days of hearing.
(g) Approved applicants shall receive a temporary operating permit valid for ninety days pending final license issuance.
(h) Final licenses shall be issued upon completion of all inspections and approval conditions.
Section 4.04 Annual License Renewal Fees and Classification Structure
(a) All active licenses must be renewed annually on the anniversary date of initial issuance. Renewal fees shall be structured according to Facility Classification as follows:
Tier One Small Community Operations: RD 25,000
- Annual gross cannabis sales revenue under RD 500,000
- Located in municipalities with population under 50,000
- Single-location owner-operated facilities
Tier Two Standard Commercial Operations: RD 30,000
- Annual gross cannabis sales revenue RD 500,000 to RD 2,000,000
- Located in municipalities with population 50,000 to 250,000
- Multiple locations permitted if owned by same entity
Tier Three Commercial Hub Operations: RD 35,000
- Annual gross cannabis sales revenue over RD 2,000,000
- Located in major commercial centers and metropolitan areas
- Multistate or regional operational capacity
(b) Tier classification shall be determined based on the previous calendar year's reported gross sales revenue, location demographics, and operational scope.
(c) Renewal fees are due no later than thirty days before the license expiration date. Failure to pay renewal fees before the expiration date shall result in immediate license suspension. Licenses suspended for non-payment may be reactivated within ninety days upon payment of the full renewal fee plus a reinstatement fee of RD 5,000.
(d) Licenses that remain suspended beyond ninety days shall expire, and the facility must cease operations immediately. Reapplication shall require submission of a new Initial License Application with the full RD 100,000 fee.
Section 4.05 Compliance-Based Fee Adjustments
(a) Licensees maintaining a Compliance Score of 95 percent or above throughout the renewal period shall receive a RD 2,000 reduction in their annual renewal fee for the following year.
(b) Licensees with Compliance Scores between 85 and 94 percent shall pay the standard renewal fee without adjustment.
(c) Licensees with Compliance Scores below 85 percent shall pay a RD 3,000 surcharge in addition to the standard renewal fee, provided the license is not subject to suspension or revocation proceedings.
(d) Compliance Scores shall be calculated based on inspection results, reporting accuracy, customer complaint resolution, security protocol adherence, and community impact assessments.
Section 4.06 Payment Processing and Audit Requirements
(a) All fees shall be paid to the Department's Revenue and Finance Division through the following authorized methods: (i) Wire transfer to accounts designated by the Ministry of Finance (ii) Cashier's check made payable to the Dominican Republic (iii) In-person payment at Department offices during business hours (iv) Digital payment systems authorized by the Ministry of Finance
(b) All payments shall be documented with a payment reference number and recorded in the Department's licensing database within one business day.
(c) The Department shall conduct annual financial audits of all revenue collected, with results reported to the Senate Committee on Institutional Development and published in the Dominican Republic's official gazette.
TITLE V: OPERATIONAL STANDARDS AND COMPLIANCE REQUIREMENTS
Section 5.01 Facility Security and Access Control
(a) Each licensed retail facility shall maintain continuous video surveillance with cameras covering all entrance and exit points, point-of-sale areas, storage areas, and exterior perimeter. Video recording systems shall maintain at least thirty days of continuous recorded footage.
(b) Access to cannabis products shall be restricted to designated secure areas behind locked counters or secure storage vaults accessible only to authorized employees with completed background checks.
(c) All facilities must have working alarm systems monitored by professional security services, with alarm response agreements requiring arrival within twenty minutes of activation.
(d) Facilities must install controlled access systems restricting entry during non-operating hours, with all entries logged and reported to local law enforcement upon request.
(e) Security protocols must include procedures for responding to robbery, break-ins, and suspicious activity, with immediate notification requirements to local police and the Department's Compliance Division.
Section 5.02 Inventory Management and Product Tracking
(a) All cannabis products shall be tracked from receipt through point of sale using a standardized inventory management system approved by the Department.
(b) Each product shall bear a unique identifier connecting it to its source, cultivation date, testing results, and point of sale.
(c) Licensees shall conduct physical inventory counts monthly, with results reported to the Department within fifteen days of month-end.
(d) Inventory discrepancies exceeding 2 percent of monthly sales must be reported to the Department within five business days, including investigation findings and corrective actions taken.
(e) All cannabis products must come from sources licensed by the Dominican Republic or approved international suppliers, with complete documentation of origin, testing, and transport.
Section 5.03 Employee Requirements and Training
(a) All employees handling cannabis products or operating point-of-sale systems must pass background checks with no felony convictions in the past seven years.
(b) All employees must complete Department-approved training covering: (i) Product knowledge and potency information (ii) Age verification procedures and compliance with age restrictions (iii) Security and loss prevention protocols (iv) Customer service and conflict de-escalation (v) Regulatory compliance and legal requirements (vi) Emergency procedures and safety protocols
(c) Training shall be completed within thirty days of employment and documented in personnel files maintained for Department inspection.
(d) Annual refresher training shall be completed by all employees, with documentation provided to the Department upon request.
(e) Any employee with a felony conviction during their employment shall result in immediate termination and notification to the Department.
Section 5.04 Operating Hours and Age Restrictions
(a) Licensed facilities may operate only during hours specified in their license, which shall not exceed the hours of 10:00 a.m. to 10:00 p.m., Monday through Sunday, unless otherwise approved by municipal authorities.
(b) Cannabis products shall be sold only to persons twenty-one years of age or older, verified through official photo identification.
(c) Facilities must implement and document age verification procedures at point of sale, with failure to verify age resulting in violation citations.
(d) No consumption of cannabis products shall be permitted on the premises. Facilities must post prominent signage in Spanish and English stating "No Consumption On Premises."
(e) No sales to intoxicated persons or persons appearing to be under the influence of substances are permitted.
Section 5.05 Product Standards and Testing Requirements
(a) All cannabis products sold in Dominican retail facilities must be tested by Department-approved laboratories for potency, contamination, pesticide residue, and microbial safety.
(b) Products must meet the following standards: (i) THC content accurately labeled within 10 percent variance (ii) No detectable mold, bacterial contamination, or pathogenic organisms (iii) Pesticide residues below acceptable limits established by the Ministry of Public Health (iv) Packaging and labeling in Spanish with clear warnings about health risks
(c) Testing documentation must accompany all products and be maintained in customer-visible format.
(d) Products failing testing standards shall not be sold and must be destroyed under Department supervision, with costs borne by the licensee.
Section 5.06 Reporting and Data Submission Requirements
(a) Licensees shall submit monthly sales reports to the Department by the fifteenth day of the following month, including: (i) Total units sold by product category (ii) Total gross revenue from cannabis sales (iii) Inventory reconciliation and discrepancies (iv) Employee hours and staffing changes (v) Customer complaints and resolutions (vi) Security incidents or suspected illegal activity
(b) Annual compliance reports shall be submitted with license renewal applications, including: (i) Complete operational summary for the previous calendar year (ii) Employee training documentation (iii) Facility security audit results (iv) Community impact assessment update (v) Any regulatory violations or corrective actions taken
(c) Failure to submit required reports by established deadlines shall result in compliance violations and potential license suspension.
(d) All reported data shall be compiled into public dashboards published quarterly on the Department's website, demonstrating revenue generation and infrastructure allocation.
TITLE VI: CANNABIS EXCISE TAX AND DGII COLLECTION REQUIREMENTS
Section 6.01 Twelve Percent Cannabis Excise Tax
Every licensed cannabis medical or pharmaceutical facility shall pay a cannabis excise tax equal to twelve percent of gross monthly revenue from all cannabis sales and transactions. This tax is mandatory and nonnegotiable. The excise tax applies to all cannabis products sold by the licensee including raw cannabis flower, cannabis extracts, cannabis oils, cannabis-infused pharmaceuticals, and any other cannabis product sold or transferred by the licensed facility.
Gross revenue for tax calculation purposes means the total income from all cannabis transactions before deductions for cost of goods sold, operating expenses, or other business costs. The calculation is straightforward: if a facility generates one million RD in monthly cannabis revenue, the excise tax obligation is one hundred twenty thousand RD. That amount must be paid to DGII by the twenty-fifth of the following month.
Section 6.02 Collection Through DGII Online Portal
All cannabis excise taxes must be paid directly to the Dominican Republic's Dirección General de Impuestos Internos (DGII) through the official DGII online payment portal. The Department of Cannabis Licensing shall coordinate with DGII to establish a dedicated cannabis tax account code that allows real-time tracking of all cannabis revenue collections.
Licensees shall register with DGII using their business identification number and the cannabis tax account code. Monthly payment shall be submitted online through the DGII portal with the following information clearly documented: licensee name, license number, total gross cannabis revenue for the month, twelve percent tax calculation, and payment date. DGII shall issue an electronic payment confirmation to the licensee within twenty-four hours of successful payment processing.
Section 6.03 Monthly Reporting Requirements
Cannabis licensees must submit a monthly tax return to DGII by the twenty-fifth of each month covering the previous calendar month's activity. The tax return shall include itemized revenue by product category, total units sold, customer count if applicable, and the calculated twelve percent tax obligation. These returns are due regardless of whether the facility had sales activity in that month. Facilities with zero sales must report zero revenue and zero tax obligation.
DGII shall cross-reference cannabis tax payments with the Department's monthly sales reports required under Section 5.06. Any discrepancies between reported revenue to the Department and revenue reported to DGII shall trigger an immediate audit by both agencies. Misreporting of revenue with intent to reduce cannabis tax liability is a felony offense subject to criminal prosecution.
Section 6.04 Penalties for Tax Nonpayment
Failure to pay the cannabis excise tax by the established deadline shall result in automatic license suspension effective immediately upon notification. The licensee must cease all cannabis sales and operations immediately upon suspension notification. The facility may not resume operations until the full unpaid tax obligation is paid in full plus a penalty payment equal to fifty percent of the unpaid tax amount.
For example, if a licensee owes one hundred twenty thousand RD in cannabis excise tax and fails to pay by the deadline, that licensee must pay one hundred twenty thousand RD in back taxes plus sixty thousand RD in penalties (fifty percent of the unpaid amount) to reactivate the license. Total payment obligation becomes one hundred eighty thousand RD.
If a license remains suspended for nonpayment of cannabis excise tax for more than ninety days, the license automatically expires and revocation proceedings begin. The licensee loses the right to operate and must surrender all cannabis inventory to the Department for destruction.
Repeated tax nonpayment (two or more instances in a calendar year) shall result in permanent license revocation with prohibition from obtaining a new license for five years.
Section 6.05 Audit Authority
DGII has full authority to audit cannabis licensees' books, records, sales receipts, and inventory documentation to verify accurate calculation and reporting of cannabis excise taxes. Audits may be conducted without advance notice. Licensees must provide complete access to financial records within five business days of audit request.
If an audit discovers underreported revenue, the licensee shall owe back taxes on the underreported amount plus the twelve percent excise tax plus penalties equal to one hundred percent of the unpaid tax obligation. An audit showing twenty percent underreporting means the licensee pays the original tax owed plus double that amount in penalties.
Section 6.06 Infrastructure Development Fund Deposit
All cannabis excise tax revenue collected by DGII shall be deposited directly into the Dominican Infrastructure Development Fund within five business days of collection. DGII shall provide electronic reports to the Department showing daily tax collections and cumulative totals. These reports shall be made public on the Department website and updated daily so citizens can see in real time how much cannabis tax revenue has been collected and how much has been allocated to infrastructure projects.
TITLE VII: VIOLATIONS, ENFORCEMENT, AND LICENSE SUSPENSION OR REVOCATION
Section 7.01 Classification of Violations
(a) Class A Violations: Critical violations directly related to public safety or illegal activity: - Selling to minors or persons under twenty-one years of age - Operating without valid security systems or alarm monitoring - Diversion of products to illegal markets or unregistered outlets - Harboring persons with outstanding felony warrants on premises - Operating outside licensed hours with intent to conceal activity - Falsifying inventory records or sales reports
(b) Class B Violations: Significant violations affecting regulatory compliance: - Inventory discrepancies exceeding 5 percent - Failure to maintain required video surveillance - Employees without completed background checks - Failure to submit required monthly or annual reports - Operating without required business insurance - Product packaging or labeling violations
(c) Class C Violations: Technical or administrative violations: - Minor inventory discrepancies of 2-5 percent - Late submission of required reports (less than thirty days) - Incomplete employee training documentation - Signage or facility appearance violations - Minor security protocol deviations
Section 7.02 Enforcement Procedures
(a) Upon discovery of any violation, the Department's Compliance and Inspection Division shall issue a written violation notice specifying the violation class, specific violations identified, and required corrective actions.
(b) Class C Violations shall be resolved within thirty days. Corrective action compliance shall be verified through follow-up inspection.
(c) Class B Violations shall be resolved within fifteen days. Failure to cure shall result in a notice of license suspension effective in ten days unless violations are remedied.
(d) Class A Violations shall result in immediate license suspension pending investigation. A formal hearing before the Department Director shall be scheduled within fifteen days. The licensee may continue operations during the hearing period only if the Department Director determines continued operation does not pose imminent public safety risk.
(e) All violation notices shall include the right to request an administrative hearing within ten days of notice.
Section 7.03 Administrative Hearing Process
(a) Upon request for administrative hearing, the Department shall schedule a hearing before an independent hearing examiner within thirty days.
(b) The licensee shall have the right to present evidence, call witnesses, and be represented by legal counsel.
(c) The Department shall present evidence supporting the violation allegation, and the licensee may cross-examine witnesses.
(d) The hearing examiner shall issue a written decision within ten days of the hearing concluding, with specific findings and conclusions of law.
(e) Either party may appeal the hearing examiner's decision to the Department Director within fifteen days.
(f) The Department Director shall issue a final appeal decision within twenty days of receipt of the appeal.
Section 7.04 License Suspension
(a) Class B Violations not cured within the specified timeline shall result in automatic license suspension, effective upon written notice.
(b) License suspension shall remain in effect until the licensee demonstrates compliance through follow-up inspection and pays a reinstatement fee of RD 10,000.
(c) Facilities operating during license suspension shall be subject to criminal penalties and immediate license revocation.
(d) Suspended licenses may be reactivated only once per calendar year unless circumstances warrant additional opportunity as determined by the Department Director.
Section 7.05 License Revocation
(a) Class A Violations shall result in license revocation upon confirmation through administrative hearing or appeal process.
(b) Revoked licenses may not be reissued to the same person or entity for a period of three years, except in exceptional circumstances approved by the Senate Committee on Institutional Development.
(c) Facilities with revoked licenses shall cease all operations immediately and must surrender all cannabis inventory to the Department for destruction under supervision.
(d) The licensee shall be responsible for all costs associated with inventory destruction and facility decontamination.
(e) Any person convicted of operating a cannabis facility without a valid license shall be subject to criminal penalties including fines up to RD 50,000 and imprisonment up to two years.
Section 7.06 Law Enforcement Coordination
(a) The Department shall maintain regular coordination with Dominican National Police, DEA liaison offices, and international law enforcement agencies regarding suspected illegal cannabis operations.
(b) Licensed facilities that are targeted by theft or robbery shall cooperate fully with law enforcement investigations, providing video recordings and witness statements within forty-eight hours of incident report.
(c) Licensees with knowledge of illegal cannabis operations shall report such information to the Department within five business days.
(d) Failure to report known illegal operations shall be treated as a Class B Violation subject to suspension.
TITLE VIII: REVENUE ALLOCATION AND INFRASTRUCTURE DEVELOPMENT FUND
Section 8.01 Establishment of Infrastructure Development Fund
(a) The Dominican Infrastructure Development Fund is hereby established as a dedicated revenue account within the Ministry of Finance, separate from general revenue appropriations.
(b) All revenue collected through Initial License Fees, Annual Renewal Fees, and cannabis excise taxes shall be deposited into this Fund.
(c) No funds from the Infrastructure Development Fund shall be transferred to general government operations or other programs without specific legislative authorization from the Senate Committee on Institutional Development.
(d) Fund management shall be audited annually by the Dominican Republic's Comptroller General with results published in the official gazette and on the Department website.
Section 8.02 Revenue Allocation Formula
All revenues in the Infrastructure Development Fund shall be allocated as follows:
(a) Public Administration and Compliance: 8 percent - Department staffing and operations - Regulatory oversight and compliance monitoring - Training and professional development
(b) Public Health and Safety: 12 percent - Cannabis education and awareness programs - Substance abuse treatment and prevention services - Public health monitoring and disease prevention - Community health worker programs
(c) Law Enforcement and Interdiction: 10 percent - Investigation of illegal cannabis operations - Community policing initiatives - Drug prevention programs in schools
(d) Critical Infrastructure Development: 70 percent - Water treatment and sanitation systems: 20 percent - Road and transportation infrastructure: 18 percent - Emergency response systems and fire safety: 15 percent - Electrical grid modernization: 12 percent - Telecommunications in underserved areas: 5 percent
Section 8.03 Annual Budget Allocation Process
(a) By September 30 each year, the Department shall submit to the Senate Committee on Institutional Development a detailed budget proposal for allocation of projected revenues from the following year's cannabis licensing activity.
(b) The Senate Committee shall review the proposal and issue an allocation directive by December 1 for implementation beginning January 1 of the following year.
(c) The Ministry of Finance shall track all expenditures from the Infrastructure Development Fund and report quarterly to the Senate Committee on Institutional Development and the public.
(d) Quarterly reports shall specify which projects received funding, the amount allocated, project status, and expected completion dates.
Section 8.04 Project Selection and Accountability
(a) Infrastructure projects funded through the Infrastructure Development Fund shall be selected based on the following criteria: (i) Demonstrated need through community assessment (ii) Geographic distribution across all Dominican provinces (iii) Population impact and beneficiary numbers (iv) Alignment with the 2030 Sustainable Development Goals (v) Community engagement and input
(b) All projects shall have a designated project manager responsible for budget adherence and timeline compliance.
(c) Project budgets shall be published on the Department website before funding is released.
(d) Communities receiving infrastructure investment shall have opportunity to participate in project planning and oversight through established municipal advisory committees.
(e) All completed projects shall include public dedication ceremonies acknowledging cannabis revenue investment and inviting community participation in project celebration.
Section 8.05 Transparency and Public Dashboard
(a) The Department shall maintain a public-facing online dashboard displaying: (i) Total revenue collected to date, by source (ii) Cumulative allocation to each infrastructure category (iii) Current and completed infrastructure projects, with photos and status updates (iv) Monthly and quarterly revenue reports (v) License count and facility locations (vi) Compliance metrics and violation statistics
(b) The dashboard shall be accessible in both Spanish and English with mobile functionality.
(c) Reports shall be published monthly and remain available for public access indefinitely.
(d) Citizens shall have the right to submit written inquiries to the Department regarding revenue allocation and project status, with responses provided within fifteen business days.
TITLE IX: PENALTIES AND CRIMINAL PROVISIONS
Section 9.01 Administrative Penalties
(a) Violation of any requirement in Title V (Operational Standards and Compliance Requirements) that does not rise to the level of criminal conduct may result in administrative penalties as follows: - First violation: Written warning and compliance plan - Second violation: RD 5,000 fine and mandatory compliance audit - Third violation: RD 10,000 fine and fifteen-day license suspension - Fourth violation: RD 25,000 fine and license revocation proceedings
(b) Penalties shall be imposed by the Department and must be paid within thirty days of notice. Failure to pay shall result in additional penalties of RD 500 per day of delinquency.
Section 9.02 Criminal Penalties
(a) Any person who operates a cannabis retail facility without a valid license shall be subject to criminal penalties including: - Fine of RD 50,000 to RD 100,000 - Imprisonment of one to two years - Confiscation of all cannabis products and equipment - Permanent prohibition from obtaining a license
(b) Any person who sells cannabis to a person under twenty-one years of age shall be subject to: - Fine of RD 25,000 to RD 50,000 - Imprisonment of six months to one year - Suspension or revocation of license - Mandatory community service of 200 hours
(c) Any person who diverts licensed cannabis products to illegal markets or provides false information to the Department shall be subject to: - Fine of RD 100,000 to RD 250,000 - Imprisonment of two to five years - License revocation - Restitution for all diverted product value
(d) Any licensee who falsifies inventory records, sales reports, or customer information shall be subject to: - Fine of RD 50,000 to RD 150,000 - Imprisonment of one to three years - License revocation - Civil liability for investigation costs
Section 9.03 Forfeiture of Proceeds
All cannabis products, equipment, vehicles, or other property used in violation of this Act may be seized and forfeited to the Dominican Republic. The value of forfeited assets shall be credited to the Infrastructure Development Fund.
TITLE X: SEVERABILITY, EFFECTIVE DATE, AND AMENDMENTS
Section 10.01 Severability
If any provision of this Act is found to be unconstitutional or otherwise invalid by the Dominican Constitutional Court or Supreme Court, such provision shall be severed, and all other provisions shall remain in full force and effect.
Section 10.02 Effective Date
This Act shall take effect upon enactment and signature by the President. The Department shall begin accepting license applications within ninety days of enactment. All provisions regarding Initial License Fees and Annual Renewal Fees shall be effective on the first day of the month following enactment.
Section 10.03 Transition Period
During the first one hundred eighty days following enactment, the Department shall prioritize the processing of applications that were filed informally before this Act's effective date, provided complete formal applications are submitted within one hundred eighty days of enactment.
Section 9.04 Future Amendments
This Act may be amended only by legislative action with a two-thirds majority vote in the Senate. Any amendment related to the Initial License Fee, Annual Renewal Fee structure, or Infrastructure Development Fund allocation formula requires approval by the Senate Committee on Institutional Development and must be subject to public comment period of no less than thirty days before implementation.
Section 9.05 Review and Reporting
(a) The Department shall conduct a comprehensive review of the licensing program's effectiveness eighteen months after enactment.
(b) The review shall assess: (i) Revenue generation versus projections (ii) License issuance rates and application denial reasons (iii) Compliance metrics and violation patterns (iv) Infrastructure projects completed and timeline adherence (v) Community impact and public health indicators (vi) Criminal enforcement outcomes
(c) A public report shall be published within twenty-four months of enactment, available to the Senate and the public.
TITLE X: COORDINATION WITH INTERNATIONAL AGREEMENTS
Section 10.01 Consistency with Dominican Law
This Act shall be interpreted consistent with Dominican constitutional law, existing criminal statutes, and all international treaties to which the Dominican Republic is a party, including the Single Convention on Narcotic Drugs, the Convention on Psychotropic Substances, and the Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances.
Section 10.02 Legal Opinion and Guidance
The Ministry of Justice shall issue detailed guidance regarding the relationship between this Act and existing international drug control obligations within ninety days of enactment, ensuring full transparency regarding how controlled legalization operates within the Dominican Republic's international commitments.