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The cannabis industry in California operates within a framework of complex and evolving laws and regulations. To be successful, you must remain compliant with these complicated (and sometimes confusing) rules. Regulatory or legal noncompliance is expensive and damaging. Violations can cost you significant money in fines and even result in your license being suspended or revoked.
At McElfresh Law, we are highly experienced in helping cannabis industry entrepreneurs effectively navigate regulatory issues and challenges. Whether you are just starting out or have an established business, our attorneys who are highly knowledgeable about administrative law in the cannabis industry can help keep you from running afoul of strict regulations.
To speak with a cannabis administrative law attorney call (858) 756-7107 today.
Administrative law governs the licensing, oversight, and enforcement of cannabis businesses in California. The state Department of Cannabis Control is responsible for this governance. While this state agency has main oversight, there are various other state agencies as described here, whose rules you must comply with.
Cannabis businesses licenses are good for one year and are subject to annual renewal. You may need more than one license depending on the activities of your business.
The first step in licensing is getting local government approval. Without a permit from the municipality where you wish to operate, you will be unable to obtain a license. Our cannabis administrative law attorney can assist you with local permitting and state licensing processes and understanding applicable regulations.
Dispensaries, cultivators, processors, and manufacturers are all subject to regular inspections by state and local regulators. State tax officials also perform inspections to ensure businesses comply with the cannabis excise tax. Inspectors are not required to give notice that they are coming, which is why it is especially crucial to understand state and local rules so you are always ready for a visit.
What penalties a cannabis business receives depends on the type of business and the severity of the regulatory violation. There are a wide variety of violations that can result in disciplinary actions ranging from correct the issue notices to license revocations.
Some of the common regulatory violations at cannabis businesses include the following:
This list is not all inclusive. We can advise you no matter what your alleged violation.
Your license is the foundation of your business. If you are found in noncompliance with state regulations, depending on the circumstances and violation, it can be suspended for a period of time, not renewed, or revoked. When your license is in danger, do not wait to speak with our experienced cannabis license defense attorney.
If your license is in danger of suspension or revocation, the DCC will require your attendance at an administrative hearing. This hearing will determine whether you face disciplinary actions and what they will be. You will benefit from having representation from a skilled cannabis administration law attorney at the hearing.
For less serious violations, the DCC may issue a notice to comply that gives a deadline for correcting the issue. Once the issue is corrected, you will be back in compliance. Other more serious disciplinary actions include fines of up to $5,000 for a licensed business or $30,000 for an unlicensed business.
The legal cannabis industry in California is still evolving. State and local regulations governing it change frequently. It is extremely challenging for business owners to keep up with regulations and rules is this dynamic environment. But not staying on top of them can cause you to be noncompliant and potentially lose your cannabis business license or be subject to other harsh disciplinary actions.
Our cannabis administrative law attorneys can help you understand the specific regulations that apply to your type of business. We can keep you well informed of changes to laws and regulations so that you are not caught off guard by a surprise inspection.
If you are issued a violation, we will investigate the evidence against you and fight for your rights with regulatory agencies. We want to see you succeed and will do everything in our legal power to help you keep your license and continue operations.
Administrative hearings are heard by administrative law judges. In the hearing the DCC will present evidence and argue its case against you. You also have the right to present evidence and argue your case. Such a hearing is similar to a trial but not as formal.
You may be able to appeal a licensing decision that has gone against you. These include denials of license renewals, license suspensions, license revocations, and conditions placed on your license. The Cannabis Control Appeals Panel, which is made up of five members, hears and decides appeals. You have the right to have an attorney represent you.
The panel will look at whether the DCC proceeded outside of its jurisdiction, whether it proceeded in the manner the law required, whether its decision was supported by the findings, and whether there is substantial evidence to support the department’s findings.
Contact McElfresh Law for help maintaining state and local regulatory compliance for your cannabis business. We provide well-informed administrative law services to clients throughout the San Diego area and the state. Whether you want to stay out of trouble by understanding rules and regulations that your business must operate under, or you have already been informed of a regulatory violation or legal issue, we can assist you.
Call (858) 756-7107 today to arrange a consultation.
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