California Growers Have Highest Rate of Noncompliance With Cannabis Regulations

California is posed to instantly become the country’s largest marijuana market when lawful sales of cannabis for recreational use begin on January 2, 2018. While this presents vast opportunity for investors and entrepreneurs, it also presents a wealth of regulatory challenges. Businesses often face greater regulation in California than other states, simply due to the size of California’s legal and regulatory codes. Cannabis businesses will have the added headache of new and changing regulations in a brand new industry. Yet, with preparation and planning, and skilled legal advice from an experienced marijuana business compliance attorney, business owners can keep their operations compliant and profitable throughout the coming changes in regulatory framework applicable to California’s cannabis industry.

California’s Compliance Rating

Forbes reports on recent compliance data issued by Adherence Compliance, a cannabis compliance company based in Denver, Colorado. Adherence Compliance has applied predictive analytics and machine learning to the cannabis industry in order to determine the compliance areas in which a business is likely to fail. Its data has found California cannabis business owners to be the least compliant across the country. Here, owners average sixteen compliance infractions per inspection, and score an average of 74.4 out of 100 on Adherence’s compliance metrics. By contrast: Illinois was found to be the most compliant state, and averaged 91.1 out of 100 on the same tests. It is worth noting that Illinois has a relatively new and small program of strict regulation. Colorado, in comparison, has an older and larger program of regulation, which has complex applications for both recreational and medicinal use. Its cannabis business owners scored an average of 82.9 out of 100 on the Adherence Compliance metric.

Ensuring Your Compliance in an Uncertain Regulatory Environment

The State of California is facing a task of unprecedented proportions. On January 2, 2018, an entire industry will instantly change from illicit to legally regulated. Applications for business licenses are available, but the regulations which will govern business licenses and lawful cannabis business operations are not yet finalized. They will continue to change, adapt and expand as business operations spread throughout California. An effective business strategy must be both proactive to anticipated changes, and quickly reactive when changes occur. Proactive measure include preparing a business license application and submitting it as soon as possible, so that your business license is ready to be processed as soon as the state begins issuing them on January 2. It is also important to have all necessary local permits and licenses ready before business operations commence. And yet, not all regulatory changes can be anticipated. It is important for business owners to be aware of changes in the law that will impact their licenses, permits, and daily operations. An experienced Los Angeles cannabis business licensing attorney can help your business obtain all necessary permits and licenses, and ensure that your operations are compliant with all state and local regulations. Don’t run the risk of facing criminal charges, civil fines, and administrative penalties for noncompliant cannabis business operations.  

The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Marijuana Businesses, Particularly in California, Struggle to Navigate a Thicket of Regulations, October 19, 2017, by Debra Borchardt, Forbes

More Blog Entries:

Expanding Marijuana Regulations are Creating a State Government Hiring Binge, October 14, 2017, by Cannabis Law Group