by We have been warning our clients for months that the requirements for tax, accounting and recordkeeping were going to be broad and onerous. Yesterday, the California cannabis regulatory agencies
- Bureau of Cannabis Control [“BCC”]
- California Department of Tax and Fee Administration [“CDTFA”]
- California Department of Public Health [“CDPH”]
Issued a combined total of close to three hundred pages of Emergency Regulations [the “Regs”] covering a broad range of topics. This memorandum focuses on procedural provisions related to accounting, tax, recordkeeping, and administration.
MARCUSA Enforcement – Disciplinary Rules
Enforcement – Right of Access
- Licensees shall provide the Bureau’s investigators, compliance monitors, agents, or employees full access to enter licensed premises; and inspect cannabis or cannabis products in the licensee’s possession, review and copy any materials, books, or records in the licensee’s possession.
- Failure to cooperate and participate in the Bureau’s investigation may result in a licensing violation subject to discipline.
- Prior notice of investigation, inspection, or audit is not required.notice to comply
- The Bureau may issue a written notice to comply with a licensee for minor violations of MARCUSA or its implementing regulations, observed during an inspection.
- The notice to comply will describe the nature and facts of the violation, including a reference to the statute or regulation violated, and may indicate the manner in which the licensee must correct the violation to achieve compliance.
- Within 15 calendar days, the licensee may sign and return the notice to comply, declaring under penalty of perjury that the violation was corrected and describing how compliance was achieved. failure to do so may result in a disciplinary action,
Minor Decoys
- Peace officers may use a person under 21 years of age to attempt to purchase cannabis goods to ensure that licensees and their employees are not selling cannabis goods to minors.
Disciplinary Actions
- The Bureau may take disciplinary action against any license by way of revocation, suspension, fine, restrictions upon any licensee, or any combination thereof.
- The assessed penalty shall take into consideration: nature and severity of the violation; evidence that the violation was willful; history of violations of the same nature; the extent to which the person or entity has cooperated with the Bureau; the extent to which the person or entity has mitigated or attempted to mitigate any damage or injury caused by the violation; and the extent to which the conduct is a public nuisance or danger to public safety.
- Any Bureau accusation recommending disciplinary action will be served on the licensee and a hearing will be conducted to determine if cause exists to take action against the licensee.
- An accusation may be terminated by written stipulation at any time prior to the conclusion of the hearing on the accusations and notices to comply
- The Bureau may issue citations containing orders of abatement and fines to a licensee or unlicensed person in writing.
- The Bureau may issue a notice to comply with a licensee for violations of the act or regulations observed during an inspection. The licensee may within 15 calendar days return the notice indicating the violation was corrected and how compliance was achieved
Disciplinary Rules – Cannabis Licensees
