Operational compliance has come to be paramount to the results of a lot of cannabis firms following new state regulations that went into impact earlier this year.  For other folks, non-compliance has been a good downfall.

Following the legalization of industrial cannabis, the state of California hastily drafted and passed emergency regulations which outlined licensing and operational needs for cannabis firms beneath the Medicinal and Adult-Use Cannabis Regulation and Security Act (MAUCRSA). These emergency regulations went into impact in December of 2017 to present a short-term option for the lack of cannabis legislation till much more thorough regulations could be drafted and adopted by state agencies. Just 3 months ago, the Workplace of Administrative Law (OAL) authorized new regulations which have been promptly adopted by all 3 state licensing agencies. The new regulations incorporate a lot of considerable adjustments from the earlier emergency regulations and introduce much more restrictive recommendations for cannabis firms. Additional, the new regulations define significant implications for firms who violate the new recommendations – from fines up to $250,000 to loss of licensure.


In current months, a fast quantity of compliance enforcement agencies have emerged at each the nearby and state level. Licensed cannabis firms in California have skilled a peak in random compliance inspection visits, raids from nearby and state law enforcement, and seizure of cannabis solutions.

With the industrial cannabis market now in complete impact, nearby and state agencies are starting to concentrate significantly less on setting the framework for the market and much more on enforcement of regulations.

A majority of licensed cannabis firms are in some way in violation of present regulations regardless of their intentional efforts to comply. This is largely due to the cumbersome place-dependent nature of cannabis regulations.

While cannabis is legal in the state of California, industrial cannabis firms are nonetheless federally illegal, and there is no federal legislation governing the licensing and operational compliance of cannabis firms.

As a outcome, cannabis regulations differ involving states. Additional convoluting the notion of cannabis compliance, regulations also differ inside-state and are dependent on legislation issued by nearby authorities.

All California cannabis firms need to adhere to statewide regulations enforced by the 3 state agencies – the Bureau of Cannabis Handle (BCC), the California Division of Public Wellness (CDPH), and the California Division of Meals and Agriculture (CDFA)  – in addition to recommendations enforced by nearby agencies. For instance, outside cultivation is legal at the state level per the CDFA, but it is prohibited inside the City of Los Angeles per the nearby Division of Cannabis Regulation (DCR). Cannabis firms need to also comply with nearby Fire Division security codes which also differ by jurisdiction.

With compliance enforcement on the rise, it is essential for all cannabis firms to keep informed about each state and nearby regulations in order to prevent higher penalties or business enterprise closure.


About Margolin & Lawrence

Our firm delivers complete-coverage compliance counseling to licensed cannabis firms. Our group is in normal attendance of nearby city hall and county government meetings pertaining to industrial cannabis in all regions of California and maintains present understanding of the ever-altering regulations. We present counsel in all regions of business enterprise compliance for cannabis retailers, distributors, cultivators, and microbusinesses. Our attorneys have a combined 20+ years of encounter in the industrial cannabis market and are active in compliance consulting all through the state. We are capable to present our customers with specialist contractors in constructing security code pre-inspection, packaging and labeling compliance, solution inventory and storage, advertisement restrictions, and so on. We would adore to enable assure that your cannabis business enterprise is productive and in compliance with all nearby and state regulations, providing you a single significantly less factor to be concerned about. If you have any concerns or would like to speak with our attorneys to additional go over our compliance solutions, please really feel totally free to attain us through e-mail ([email protected]) or telephone (323-253-9700).