The California Administrative Procedures Act (APA) is a comprehensive piece of legislation adopted by the California Legislature in 1945. The APA is an essential piece of legislation that provides a framework for the efficient, orderly, and fair administration of state governmental programs. It governs the operations of state agencies, boards, and commissions and sets forth the procedures and standards for their activities.

The purpose of the APA is to ensure public access to state government and that state agencies are accountable. The APA sets forth the procedures for the development, adoption, amendment, repeal, and judicial review of regulations. It also provides the framework for the review of agency decisions and actions by the courts.

Publication of Regulations Under the California Administrative Procedures Act

The APA provides for the publication of regulations that state agencies adopt. These regulations are published in the California Code of Regulations (CCR). The CCR includes all regulations adopted by state agencies and is updated regularly. The regulations in the CCR are legally binding on the state and its citizens.

Regulation Development Under the California Administrative Procedures Act

The APA also provides for the development of rules and regulations by state agencies. Agencies must provide an opportunity for public comment on proposed regulations before their adoption. This ensures that members of the public have a chance to give input on the proposed regulations. After the public comment period has ended, the agency must consider all comments before adopting the regulation.

Agency Review Under the California Administrative Procedures Act

The APA also provides for the review of agency decisions and actions by the courts. The APA allows for filing a petition for a writ of mandate or a petition for review with the appropriate court. A writ of mandate is a court order that requires an agency to take or not take a specific action. A petition for review allows the court to review the merits of an agency’s decision or action and determine whether it was correct.

Why the APA Matters to Cannabis Businesses.

Let’s imagine your cannabis business is falsely accused of diverting cannabis. Suppose the Department of Cannabis Regulations (DCC) issues a notice of violation, and you can’t negotiate a resolution. In that case, the DCC will likely file an administrative action against your company. The APA will govern the complaint, your response, discovery, deadlines, hearings, and trial.

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If your business has received a notice of violation (or worse) from the Department of Cannabis, contact us immediately for a consultation.

Getting a license from the California Department of Cannabis Control to sell cannabis or cannabis products is a complex process. The California Department of Cannabis Control (DCC) is the state agency responsible for regulating commercial cannabis activity in California, including overseeing licensed businesses ranging from your corner mom-and-pop dispensary to large-scale cultivation businesses selling tens of thousands of pounds of flower per year. The DCC works to ensure that businesses involved in the cannabis industry comply with all applicable laws and regulations while providing a safe, secure, and compliant cannabis market for consumers, businesses, and local governments.

I want a weed license. What is the first step?

The first step to getting into the California cannabis industry is to stay connected with the DCC. The DCC website is the best resource for staying up-to-date on the latest cannabis regulations and licensing requirements. The DCC also provides information for potential cannabis business owners, including a licensing guide and a list of frequently asked questions.

Know what type of commercial cannabis activity you want to engage in.

The next step to getting a permit in the marijuana industry is to determine the type of license needed. The DCC currently issues 18 cannabis licenses, including cultivation, manufacturing, distribution, testing, and retail licenses. Depending on the type of cannabis business desired, a business owner may need to obtain multiple licenses before operating.

Once the license type(s) needed are determined and assuming an applicant has already obtained local authorization, the applicant must prepare to submit an application. The DCC requires all prospective businesses to submit a completed application form and supporting documents before the agency will even review the records. This includes proof of local approval, a valid photo ID, a business plan, and a description of the proposed cannabis activities. The application must also include a fee based on the type and size of the license.

Once the application is complete, the applicant must submit it to the DCC for review. The DCC will review the application to ensure it is complete and accurate. The DCC will then verify the applicant’s information and approve or deny the application.

If the application is approved, the applicant will receive a license. The DCC will provide the applicant with a license to engage in commercial cannabis activity in California legally. The license will also give the applicant access to the state’s legal cannabis market, including Metrc, California’s state-mandated software required track and trace the flow of cannabis products.

Finally, applicants must stay connected with the DCC. The DCC will provide updates on the latest cannabis regulations and will also provide resources for cannabis business owners. This includes information on how to obtain additional licenses, such as large cultivation licenses, and how to stay compliant with the law.

Should aspiring cannabis businesses be intimidated?

No. Getting licensed in California is a complex process, but the DCC stated purpose is to create a safe and equitable cannabis market. The DCC is also working to support equity cannabis businesses, which are businesses owned by individuals who have been disproportionately affected by the war on drugs.

Following the steps outlined above and staying connected with the DCC, cannabis business owners can obtain a cannabis license in California and legally engage in commercial cannabis activity. With the ability to create a compliant and profitable cannabis business, applicants can access the state’s legal cannabis market and provide cannabis products to consumers.

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Contact us today to begin your journey!

They Regulate Commercial Cannabis Activity in California

The DCC California, commonly referred to as the California Department of Cannabis Control (DCC), is a state agency that regulates commercial cannabis activity in California. The department was established in 2017 as part of the state’s efforts to support equity cannabis businesses and ensure a fair and regulated marijuana market.

Under state law, the DCC has the authority to issue and revoke licenses for businesses that engage in commercial cannabis activity. This includes cultivators, manufacturers, distributors, retailers, microbusinesses, and testing laboratories. The DCC also oversees the tracking of cannabis from seed to sale, to ensure that cannabis and cannabis products are safe for consumers and in compliance with state regulations.

Large Cultivation Lcienses

One of the recent challenges facing the DCC is the issue of large cultivation licenses. In California, these licenses are granted to businesses that grow more than 22,000 square feet of cannabis. These large cultivation licenses have been criticized for hindering the growth of equity cannabis businesses, which are often owned by small-scale cultivators or those from disadvantaged communities.

To address this issue, the DCC has proposed a new set of regulations limiting the number of large cultivation licenses and making it easier for equity cannabis businesses to obtain licenses. The proposed regulations would also require larger cultivators to enter into “impact agreements” with local governments, in which they would agree to provide financial support and other assistance to equity cannabis businesses.

DCC California Supports Equity Businesses

The DCC has also implemented several tools to support equity cannabis businesses. This includes a “social equity program” that provides financial, technical, and other support to business owners disproportionately affected by the war on drugs. The DCC has partnered with local organizations to provide business development services and help equity cannabis businesses navigate the licensing process.

Cannabis Safety

In addition to supporting equity cannabis businesses, the DCC plays a crucial role in ensuring that all commercial cannabis activity in California is conducted safely and in compliance with state law. The department works closely with law enforcement agencies to enforce regulations and ensure that cannabis products are adequately tested and labeled. The DCC also conducts regular inspections of licensed businesses to ensure they comply with state regulations.

Contact Us to Apply for a DCC Cannabis License

Overall, the California Department of Cannabis Control plays a vital role in regulating the state’s cannabis industry and supporting equity cannabis businesses. The department’s efforts to implement fair and effective regulations and to support business owners disproportionately affected by the war on drugs have helped create a more equitable and sustainable marijuana market in California.

Contact our office at info@baghoomianlaw.com or (818) 514-9272 if you want to apply for a DCC cannabis license.

As the cannabis industry continues to grow and evolve, compliance is becoming increasingly crucial for licensed cannabis businesses. From seed to sale, tracking and traceability are crucial for ensuring the legitimacy and safety of cannabis products, as well as meeting the regulatory requirements set by state agencies. To ensure compliance and to reduce diversion, California has implemented the Metrc track and trace software.

Futuristic cannabis plant with the city on the horizon.

California Cannabis

One of the critical components of compliance is the seed-to-sale process, which involves tracking every step of a cannabis plant’s life from its inception as a seed, to its cultivation and processing, to its final sale at a retail location. This process not only ensures that the plant is being grown and processed in a legal and regulated manner but also helps to prevent any potential issues with contamination or mislabeling.

Track Trace

To comply with Metrc, many licensed cannabis businesses are layering additional software on top of Metrc to make the track and trace software more business-friendly. For example, software like Meadow can be layered on top of Metrc, allowing cannabis businesses to track the flow of inventory, log business data, and calculate state and local tax withholdings. Other softwares may use mobile devices, radio frequency identification (RFID) technology, and other tracking systems to monitor and manage the supply chain from seed to sale.

Metrc is California’s Mandated Seed to Sale Software

When Metrc is paired with more business-friendly software, licensed cannabis businesses can easily track inventory levels, manage customer relationships, and monitor their supply chain to ensure compliance with regulatory requirements. This not only helps to improve the overall efficiency and profitability of the businesses but also helps to build trust and confidence with customers, who can be assured that the products they purchase are safe and legitimate.

Inventory Control

In addition to tracking and traceability, inventory control is another crucial aspect of compliance for licensed cannabis businesses. With the help of seed-to-sale software, businesses can easily monitor and manage their inventory levels, ensuring that they have sufficient stock to meet customer demand, while also avoiding overproduction and waste. This not only helps to improve the overall efficiency of the business but also helps to reduce the risk of any potential regulatory violations.

For example, in California, licensed cannabis businesses must report their inventory levels to the state regularly and maintain accurate records of their sales and production processes. With the help of seed-to-sale software, businesses can quickly generate the necessary reports and data, helping them to meet their reporting requirements and avoid any potential fines or penalties.

Supply Chain

Overall, using seed-to-sale software is becoming increasingly important for licensed cannabis businesses looking to improve their compliance and meet the regulatory requirements set by state agencies. By providing a comprehensive solution for tracking and traceability, inventory control, and supply chain management, seed-to-sale software can help businesses to improve their efficiency, profitability, and customer relationships, while also ensuring that their products are safe and compliant.

Whether you are a small, independent retailer or a large, multi-state cannabis company, seed-to-sale software can provide the tools and technology you need to manage and grow your business.

Consequences for Not Using Metrc

Failing to use Metrcin California may include fines, penalties, and potential loss of license for the cannabis business. In addition, failure to comply with Metrc requirements may also result in legal action from the state and potentially impact the business’s reputation.

Contact Us for your Cannabis Needs

We understand the complexities and challenges of the cannabis industry and are dedicated to providing exceptional legal support to our clients. Our team of experienced attorneys is ready to assist you with any legal issues related to the cannabis industry. Please do not hesitate to contact us for a consultation or to learn more about our services. We look forward to working with you.

Simply put, the Department of Cannabis Control (DCC) is the regulator that oversees all commercial cannabis activity in the State of California. The DCC creates commercial cannabis regulations, drafts and circulates proposed regulations, and is in charge of drafting emergency regulations. The DCC is also responsible for enforcement actions against non-compliant licensed cultivation, manufacturing, distribution, cultivation, testing laboratories, and retail businesses.

When was the Department of Cannabis Control created?

The DCC was created in 2017 as part of the Medical and Adult Use Cannabis Regulation Safety Act (MAUCRSA). The purpose of MAUCRSA was to create a comprehensive regulatory framework governing commercial cannabis activity in California. The DCC was established to ensure that commercial cannabis activity is conducted safely and complies with state laws, including ensuring only tested cannabis products are sold to the public.

What does the DCC’s rulemaking process look like?

The department’s rulemaking process typically begins with a notice of proposed rulemaking (NPRM). In the NPRM, the DCC outlines its proposed changes to regulations and provides an opportunity for public comment.

After gathering input from stakeholders where stakeholders can submit comments and concerns about the proposed new rules, the DCC drafts a final version of the regulation. The regulation goes through another round of public comments before being adopted by the agency. Once the regulations are approved and adopted by the DCC, they become the rules that govern commercial cannabis activity in California.

How do I make my voice heard?

The DCC will typically allow any members of the public to submit a proposal for a period of at least 30 days before adopting a regulation. You can submit any proposed change, including suggestions to simplify or consolidate one or more regulations.

What happens when the DCC begins an enforcement action against a business?

When the Department of Cannabis Control begins an enforcement action against a business, the department may issue a warning or a notice of violation. Warning letters typically identify possible violations and provide the business with an opportunity to take corrective action to avoid formal enforcement action. Suppose the business does not take corrective action. In that case,the Department may issue a Notice of Violation (NOV), which sets forth the details of the alleged violations and may include a proposed penalty. The business then canrequest an administrative hearing to contest the alleged violation and the proposed penalty.

What is the most important thing to remember if I receive an NOV?

If you receive an NOV, you must respond promptly and make every effort to demonstrate that your business complies with current regulations. If the agency believes your business is not in compliance, it may take further action against you.

What if I fail to correct the alleged deficiencies in a Department of Cannabis Control NOV?

Businesses that fail to make the changes described in the NOV could face immediate administrative action. For example, if an NOV alleges a business was violating a specific regulation by selling adult-use cannabis to individuals under 18, typically, the agency would request the business provide standard operating procedures explaining how cannabis would no longer be sold to minors. The agency normally imposes a 15 days timeline for the business to submit a proposed corrective action plan. If the business still fails to provide a corrective action plan, the matter will, in all likelihood, escalate to the agency’s legal division, where an administrative action will be filed against the business, likely seeking a suspension or revocation of the company’s cannabis license.

Contact our office immediately if you receive an NOV!

Our experienced cannabis business attorneys can help you navigate the DCC’s enforcement process and protect your license. Contact us today for a consultation.

The cannabis industry is one of the fastest-growing industries in California, and if you are thinking about getting involved, there are a few things you need to know. In this blog post, we will give you an overview of different cannabis license types, what you need to know before getting involved in the cannabis business, and some key ideas for you to consider if you decide to enter the industry.

What You Need to Know Before Getting Involved in the Cannabis Industry.

There are a few things a prospective applicant should consider before getting involved in the cannabis industry, including the legal landscape and the different types of businesses that make up the industry. In our experience, the most critical differentiator that separates successful cannabis businesses from others is a solid business plan that accounts for and appreciates the risks associated with starting a business in a constantly changing industry.

Who Regulates Commercial Cannabis Activity? The California Department of Cannabis Control.

This Department is responsible for regulating the commercial cannabis industry in California, including licensing and enforcement. The Department of Cannabis Control (DCC) ensures that all businesses comply with state laws and regulations regarding selling, transporting, distributing, and testing of cannabis and cannabis products. In addition, the DCC regulates the manufacturing, packaging, labeling, advertising, and tracking of cannabis products.

The DCC also works with local governments to ensure they are taking steps to regulate commercial marijuana activity within their boundaries. For example, a cannabis business typically will not receive a cannabis license form the DCC unless a city or county government has notified the DCC that the business has sufficient local approval to engage in commercial cannabis activity. This is just one of many areas where the DCC works in cooperation with hundreds of local agencies.

California Cannabis License Types

The first question new market entrants typically ask us is, “what cannabis licenses are available?” A simple list includes:

Retailer (Storefront)

Retail licenses, also called Type 10 licenses, Retailer (Storefront) licenses are for those cannabis businesses that want to run a brick-and-mortar dispensary. However, applicants should be aware that a local jurisdiction is under no obligation to issue a retailer license. Many local jurisdictions have either banned dispensaries or limited the issuance of these licenses to only a handful of businesses. The main reason is local police departments routinely instill fear in city council members that commercial cannabis activities conducted by storefront retailers will attract crime to the retail premises.

Retailer (Non-storefront)

Type 9 Licenses (Non-storefront) are for those businesses that want to sell cannabis products to consumers through delivery only. While delivery services do need a physical location to operate out of, no cannabis products cannot be displayed on the business premises. Moreover, the business is prohibited from allowing any customers into any areas where business activities take place. Retailer (Non-storefront) license holders will still need a location for their business to hold their inventory and serve as a hub for their delivery driver employees.

Distributor

The Type 11 license is the most common cannabis license. Distributor licenses allow cannabis businesses to transport cannabis products between licensees. For example, a distributor may use its cannabis license to lawfully transport cannabis products from a cultivator to a manufacturer or to a retail licensee.

Distributors may also: (1) arrange for testing of cannabis goods; (2) conduct quality assurance review; (3) package, re-package, label, and re-label for retail sales; and (4) provide storage services for cannabis accessories, licensees’ branded merchandise or promotional materials, and packaged cannabis goods as they will be sold at a retailer.

Distributor (Transport Only)

A Type 13 license is a unique type of cannabis business. A typical Type 13 cannabis business will employ ex-law enforcement or military professionals experienced in armed transport. A type 13 licensee may transport cannabis goods between licensees but is restricted toonlytransporting cannabis goods. Type 13 licensees are not allowed to engage in any of the additional activities listed above for a Type 11 license.

Manufacturing

Manufacturing licenses are associated with the extraction or distillment of cannabis. Manufacturers also package flower and roll/package pre-rolls on their licensed premises.

Previously, manufacturing licenses were issued by the department of public health. Due to the inherent risk of fire or explosions, a company’s manufacturing premises is always given a strict review by the DCC, with even minor issues delaying licenses for several months. For example, issues like the placement of flammable gas, carbon dioxide sensors, the storage of plant material, and cannabis product are each reviewed by both line analysts and supervisors.

There are five (5) different types of commercial cannabis activity associated with a manufacturing license:

Type 7:

Type 7 licensees may manufacture cannabis using volatile solvents such as butane, hexane, or propane. The use of volatile solvents is typically subject to strict oversight and a vigorous local approval process. A Type 7 license allows a license holder to conduct activities of a Type 6, N, or P license.

Type 6:

Type 6 licensees may manufacture cannabis using non-volatile solvents or perform extraction using mechanical methods. Type 6 licensees may also conduct activities of a Type N or P license.

Type N:

Type N licenses are for manufactures that want to infuse cannabis. Type N licensees may also conduct Type P activities.

Type P:

Type P licensees may only package or label cannabis products. A Type P licensee may only conduct Type P activities.

Type S:

Type S licenses are for manufacturers operating on a registered shared-used facility. The shared-use manufacturing facility must be approved before Type S licensee may submit license applications.

Cultivation:

The most sought-after cannabis business. Cultivation licensees are for those that want to grow cannabis. Currently, the state has 14 different cannabis licenses, differentiated by light source and size. Cultivation licenses encompass Type 1, Type 1A, Type 1B, Type 2, Type 2A, Type 2B, Type 3, Type 3A, Type 3B, Type 4, Type 5, Type 5A, and Type 5B. Type 5, 5A, and 5B is reserved for “Large” sized cultivation operations (greater than 22,000 sq. ft. of total canopy) and will not be issued prior to January 1, 2023.

Microbusiness:

Also called a Type 12 license, a Microbusiness license allows the licensee to engage in vertical integration. All microbusiness licensees must conductat least three (3)of the six (6) possible activities: (1) Retailer (Storefront); (2) Retailer (Non-storefront); (3) Distributor; (4) Distributor (Transport Only); (5) Cultivation less than 10,000 sq. ft of canopy; and (6) Level 1 Type 6 Manufacturer.

Testing Laboratory:

Also called a Type 8 license, Testing Laboratory licensees are permitted to perform testing of cannabis goods. Testing laboratories must obtain and maintain ISO/IEC 17025 accreditation; they may be issued a provisional license allowing them to operate while obtaining accreditation, so long as they meet all other requirements.

Event Organizer:

This is a license required for those looking to organize cannabis events. A Cannabis Event Organizer Licensee may apply for a Temporary Cannabis Event License for a specific event the licensee wishes to hold. A Temporary Cannabis Event License is required to hold a temporary cannabis event where onsite sale and consumption of cannabis goods is authorized at the located indicated on the license. A Temporary Cannabis Event License will only be issued to an Event Organizer licensee.

Contact Us Now to Learn More About Different Cannabis License Types!

There are a few things you need to know before getting involved in the cannabis industry, including the legal landscape and different types of businesses that make up this rapidly growing sector. With a solid business plan and an understanding of the risks involved, you can be well on your way to starting a successful business in this exciting industry! Contact us today!

The Department of Cannabis Control (DCC) is the regulator that oversees all commercial cannabis activity in the State of California. The DCC creates commercial cannabis regulations, drafts and circulates proposed regulations, and is in charge of drafting emergency regulations. The DCC is also responsible for enforcement actions against non-compliant licensed cultivation, manufacturing, distribution, cultivation, testing laboratories, and retail businesses.

When was the Department of Cannabis Control created?

The DCC was created in 2017 as part of the Medical and Adult Use Cannabis Regulation Safety Act (MAUCRSA). The purpose of MAUCRSA was to create a comprehensive regulatory framework governing commercial cannabis activity in California. The DCC was established to ensure that commercial cannabis activity is conducted safely and complies with state laws, including ensuring only tested cannabis products are sold to the public.

What does the DCC’s rulemaking process look like?

The DCC’s rulemaking process typically begins with a notice of proposed rulemaking (NPRM). In the NPRM, the DCC outlines its proposed changes to regulations and provides an opportunity for public comment.

After gathering input from the public, where stakeholders can submit comments and concerns about the proposed new rules, the DCC drafts a final version of the regulations. The regulation goes through another round of public comments before being adopted by the department. Once the regulations are approved and adopted by the DCC, they become the rules that govern commercial cannabis activity in California.

How do I make my voice heard?

The DCC will typically allow the public to submit a proposal for at least forty-five (45) days before adopting a regulation. You can submit any proposed change, including suggestions to simplify or consolidate one or more regulations during this time.

What happens when the Department of Cannabis Control begins an enforcement action against my business?

The DCC starts enforcement actions against businesses for various reasons, including ensuring that only tested cannabis products are sold, that cannabis is not being diverted to minors, and that businesses remain in compliance with the current regulations.
If the (DCC) begins an enforcement action against your business, it will issue a notice of violation detailing the violation and the possible penalties associated with it. The notice will also provide instructions on responding to the violation and requesting a hearing if you wish to contest the violation. Once the notice has been received, you will need to respond within the specified timeframe or face the possibility of additional penalties. Depending on the severity of the violation, the DCC may impose administrative fines, suspend or revoke your license, or refer the matter to the local law enforcement agency for criminal prosecution.

What is the usual first step in a DCC enforcement action?

The first step in a DCC enforcement action is typically a warning letter called a notice of violation (NOV). The NOVis a formal document issued by the DCC when a licensee or licensee applicant is found to violatestate laws or regulations governing the cannabis industry. The Notice of Violation outlines the nature of the violation, the penalty, and any corrective measures that must be taken to remedy the violation. If a business does not respond or fails to demonstrate that it has come into compliance, then the DCC may take further action, such as suspending or revoking the business’s license.

What is the most important thing to remember if I receive an NOV from the Department of Cannabis Control?

If you receive an NOV, you must respond promptly and make every effort to demonstrate that your business complies with current regulations. If the DCC believes your business is not in compliance, it may take further action against you.

What if I fail to correct the alleged deficiencies in the NOV?

Businesses that fail to make the changes described in the NOV could face immediate administrative action. For example, if an NOV alleges a business was violating a specific regulation by selling adult-use cannabis to individuals under 18, typically, the agency would request the business provide standard operating procedures explaining how cannabis would only be sold to only authorized individuals. The agency normally imposes a 15 days timeline for the business to submit a proposed corrective action plan.

What if a business fails to submit the corrective action plan? In that case, the matter will, in all likelihood, escalate to the agency’s legal division, where an administrative action is filed against the business, likely seeking a suspension or revocation of the company’s cannabis license.

Contact our office immediately if you receive an NOV!

Our experienced cannabis business attorneys can help you navigate the DCC’s enforcement process and protect your license. Contact us today for a consultation.

It’s no secret that cannabis businesses face unique challenges when it comes to compliance. The cannabis industry is still in its infancy, and the laws and regulations are constantly changing. This can make it difficult for cannabis businesses to stay up-to-date on the latest compliance requirements. In this blog post, we will discuss some of the reasons why every cannabis business needs a compliance program, and we will also dispel some of the myths that often surround compliance.

Why does every cannabis business need a compliance program?

A compliance program helps cannabis businesses stay up-to-date on the latest rules and ensures they take the necessary steps to remain compliant. Because the cannabis industry is highly regulated with complex and ever-changing rules and regulations, the consequences of non-compliance can be severe. History has shown that cannabis businesses that fail to comply with state and local regulations can face significant fines, suspension, and even license revocation.

In addition to avoiding costly fines, a compliance program can help cannabis businesses save money in the long run. A compliance program ensures that all business practices are conducted legally and ethically, following the businesses’ best practices. This can help cannabis businesses avoid lawsuits and other legal problems down the road.

What are some of the myths surrounding compliance?

Myth 1: Compliance is only for big businesses.

Many think that only big businesses must concern themselves with a compliance program; however, this could not be further from the truth! All cannabis businesses, regardless of size, must have a compliance program. The reason is simple: compliance protects your business from potential legal and financial risks.

Even if your cannabis business is small, you could still face stiff penalties if found to violate any laws or regulations. In addition, compliance-related issues can damage a company’s reputation and deter customers from doing business with you. So, even if you’re not required to have a compliance program by law, implementing one is still in your best interest.

Myth 2: Compliance is a cost center.

Another common misconception about compliance is that it’s nothing more than a cost center. In other words, people think that compliance costs money without providing any tangible benefits. This could not be further from the truth!

While it’s true that compliance does require an investment of time and resources, it can save your cannabis business money in the long run. For example, suppose a business is found to be violating a regulation, and the business lacks a compliance program. In that case, the business could be subject to costly fines and administrative actions, including license revocation. However, suppose the same business had a compliance program. In that case, the business would have mitigated the consequences, including lessened fines or receipt of a notice to comply. These mitigating benefits are in addition to businesses avoiding other costly problems, such as product recalls and class-action lawsuits.

Myth 3: Compliance is boring.

Finally, some people think managing a compliance program is boring; however, this is also untrue. Compliance may require reading lengthy regulations and standard operating procedures, but it can also be exciting. After all, you are working to protect your cannabis business from legal and financial risks!

As you can see, there are many myths about compliance. But the truth is that compliance is essential for all cannabis businesses. If you don’t have a compliance program in place, you could be putting your business at risk. So, don’t wait – start implementing a compliance program today!

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