Regulatory Compliance

Understanding the Rules

Once a business or party has been granted and otherwise approved for a marijuana and cannabis based license or registration, the process doesn’t end there, rather the approved applicant typically maintains the burden of compliance, meaning that if ongoing legal, reporting, or other compliance obligations are not met, the governing state agency typically has the discretion to suspend and in severe situations, revoke such marijuana and cannabis based licenses.

Often times, such appeals of such decisions are heard and decided by the governing state agency that approves such marijuana and cannabis based licenses. In other states and under different circumstances, such appeals may be hear by local city councils, boards, or even other state based agencies. Often times, and in many states, the appeal process is before a judicial tribunal, which require the submission of appeal documents, application materials, a demonstration of due diligence, and other necessary materials that may be requested by the appeals body.

In terms of ongoing and continuing compliance obligations, many states require continued reporting and disclosure of certain obligations and requirements. For instance, and varying from state to state, such ongoing compliance requirements may pertain to:

  • Marijuana and cannabis labeling, disclosures, and advertising compliance
  • Payment, financial transaction, and the use of electronic transfers
  • Use and occupancy requirements and regulations
  • Zoning compliance requirements and regulations
  • Business use specific to Marijuana and Cannabis
  • License and registration renewals
  • Ongoing compliance education requirements
  • Marijuana and Cannabis specific taxation and reporting requirements

For such Marijuana and Cannabis use approvals, permits and licenses, navigating the ongoing compliance requirements is important, especially given the immense time, cost, and resources expended, in order to obtain such licenses in the first-place. As such, compliance is and will remain a very important aspect of every single Marijuana and Cannabis use business, where the failure to adhere to same, may result in unnecessary fines, penalties, and in a very worse case scenario, suspension or revocation of such use license. As such, it is always important from every perspective to actively be monitoring and evaluating the various compliance and regulatory obligations involved.

With any legal issue, in particular with respect to the emerging use of marijuana and cannabis, the various regulations for production, manufacturing, use and distribution are increasingly becoming very state specific (including in California) and therefore, require very state specific and localized knowledge of such laws, statutes, and regulations, including understanding how such relates to the overall larger federal scheme.

Get Legal Help

The Nassiri Law Group, Cannabis Law Group, in Orange County, Los Angeles, and Riverside California, are available to assist with the licensing, registration, and approval process to assist in your marijuana and cannabis based business. For a free case consultation call 714-937-2020 today.

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