Cannabis Compliance Matters: Demands & Penalties to Consider

June 19, 2021 Cannabis Business, Entrepreneurs

Cannabis compliance is by far the most crucial consideration to guide success in this industry. Regardless of whether you operate a dispensary, grow operation, extraction center, manufacturing facility, or something else, your compliance isn’t requested; it’s a demand.

Depending on where your business is, you’ll have regulatory agencies in charge of your compliance. Here’s a quick list of the agencies in charge in each state:

The Main Regulators in the Cannabis Industry

But what are the non-compliance consequences?

Is it worth it to violate regulations to lessen the upfront costs of cannabis compliance?

In this article, we’re talking about cannabis business regulations, non-compliance consequences, and how to remain compliant in this budding space.

Interested in cannabis compliance? If you’re operating in this industry, it’s a must! Contact us today to learn more about how we can help.

Cannabis Regulations – Are They Important?

Cannabis Regulations – Are They Important?

While cannabis compliance seems like an unnecessary hassle for most, for consumers and overseers in the industry, it’s a must.

Consumers want safe products.

Consumers want safe products.

Cannabis compliance ensures safe cannabis. Just because a company has a license does not mean that it’s upholding cannabis safety standards. The laws are in place to ensure everyone with a dispensary license or cannabis facility license has the documentation showing all aspects of their operations.

This data offers the latest news on the safety of these products, and enforcement of the law keeps every consumer in the country safe.

Regulation is in place to ensure public health.

Regulation is in place to ensure public health.

Public health is of the utmost importance. Compliance issues can result in the forfeiture of licenses. But enforcement ensures cultivation, distribution, and other aspects of the cannabis sector support public health initiatives.

Legalization comes with laws.

Legalization comes with laws.

The challenges of operating legally include cannabis licensees and their businesses investing time in cannabis compliance. This means following local ordinances and respecting licensing regulations.

Cannabis Compliance & Non-Compliance Consequences

Non-compliance consequences can be costly for cannabusinesses. In fact, non-compliant operations may experience hefty fines or even closure of their business.

Some companies are willing to take that risk in order to lessen the upfront costs associated with cannabis compliance. But they should beware that the enforcement for cannabis-related offenses has shut some businesses down, leaving employees to pick up the pieces after.

Consequences for Non-Compliant Cannabis Businesses

Once cannabis operations get their licenses in order, maintaining compliance is essential. Without accuracy in all documentation, including but not limited to financials, it’s a slippery slope that could ultimately lead to revoking licensing.

Proper training for employees can help. But documentation accuracy through expert financial services ensures nothing is ever lost in translation. Your customers expect the best, and regulating forces demand you submit all information as it pertains to your operation.

Here’s what can happen if your cannabusiness isn’t complying with all regulations:

Notice to Comply

Minor compliance infractions are common in the cannabis sector. If this happens, you’ll get a notice to comply. This is something an agent of the BCC might give during an inspection. Ultimately, you’ll have 15 days to fix the violation and describe how it was corrected.

If your operation doesn’t return the notice to comply before the deadline or fails to fix the violation, you’ll face further disciplinary action. Sometimes, the notice to comply suggests how to fix the compliance-related problem, as well.

Citation for Violation

Next, you’ll face an actual citation for the compliance violation. If a citation is issued, you’ll need to follow the orders of abatement or pay administrative fines of as much as $5,000.

You can contest the fines. However, if the administrative fine goes unpaid within 30 days, you might have your license suspended or revoked.

Interim Suspension

In areas under BCC control, serious infractions could result in a petition for interim suspension of the company’s cannabusiness license. This gives the operation notification 15 days before the hearing for a petition to suspend.

Non-compliant marijuana companies get issued an interim suspension, which means the business will have to post a notice of suspension on the premises. The notice must stay on the premises for the entire suspension period. If this notice gets damaged or removed, the licensee needs to notify the Bureau within 24 hours.

License Revocation

In extreme instances, a cannabusiness could lose its business license. If it’s revoked, this has the potential to shut down the operation permanently.

This is only enforced if the business had willful intent to perform business outside of compliance regulations. An operation could experience revocation if it’s had multiple infractions and has not attempted to correct the problems.

Interested in maintaining compliance with ease? We’re the experts you want on your team!

CONTACT US NOW to learn how we’ll ensure you follow all regulations in place while scaling your business with excellent financial management.