Regulatory Compliance

Local and State inspections can come unannounced or with very little notice, so the best policy is to stay prepared!

Once conditions of approval for a project are established, they must be maintained across multiple government agencies. This includes the maintenance of documentation and renewal for various business certifications, permits, and licenses as well as administrative changes that require government approval to stay compliant.

Having experienced guidance in compliance and regulatory affairs will help you avoid costly fines, suspensions, and even revocation of your cannabis business permits and licenses. We take proactive measures to avoid the negative consequences of regulatory violations and can also provide material support for your business in the unfortunate event of violation. With comprehensive and effective response strategies, we also serve to rectify these situations if they do arise.

Through the development of tailored compliance packages to meet State and local regulatory standards, interfacing with regulators as needed, and advising on necessary steps to maintain regulatory compliance, we support your business for virtually all legal and regulatory demands. Contact us today to learn more about our continuing general counsel and regulatory compliance services.

Advisory Services Offered

Permit and Development Agreement Obligations

- Inspection Preparation
- Regulatory Violations:

Development of responsive remedial measures to resolve compliance issues

Local Conditions of Approval

Your local cannabis permit will be governed by the regulatory guidelines set forth in the regulatory ordinance in place in the jurisdiction in which the business is operated, as well as by any conditions of approval attached to the permit.

Local conditions of approval may include:

Building Permits
Limiting Hours of Operation
Inventory Restrictions
Age Restrictions for Customers and Employees
Preventing Public Nuisances
Signage Restrictions
Security Infrastructure Requirements
Security Guard Requirements
Mandatory Inspections
Payment of Taxes
Community Contributions
Permit Renewals and Fees

Each local condition of approval for projects will likely require some action, including advanced planning, preparation, and action to maintain compliance. At Drivon Consulting, once your project is approved, we onboard all relevant documentation and information related to maintaining regulatory compliance into our customized enterprise management system, backed up with cloud-based file maintenance, and corresponding calendar entries for all applicable deadlines to ensure you don’t drop the ball in maintaining regulatory compliance. Additionally, depending on the event, we will also have our representatives assist in planning for inspections, affecting the preparation and submittal of renewals and recertifications, and interfacing with regulators before, during, and after inspections to ensure your business is prepared and that your businesses rights are protected.

Compliance with State Regulatory Guidelines

At the State level, commercial cannabis businesses are regulated by the Department of Cannabis Control, with a specific set of guidelines and restrictions for each commercial cannabis business license type, including retail, cultivation, nursery, distribution, manufacturing, and lab testing.

Not only are cannabis businesses required to comply with the regulations set forth by the State for each cannabis business type generally, but cannabis businesses must also operate according to the specific design of the facility as well as the standard operating procedures (‘SOP’s) stated in approved cannabis applications.

SOPs and Records That Must Be Maintained

Security Procedures
Transportation Procedures
Inventory Procedures
Non-Laboratory Quality Control Procedures
Storage Procedures
Waste Management Plans
Pest Management Plans
Master Manufacturing Protocols
Maintenance of Batch Production Records
Product Quality Plans
Equipment and Utensil Cleaning and Maintenance Procedures, schedules, and logs
Cannabis Product Component Quality Control Procedures
Emergency Response Procedures and Safety Data Sheets
Track and Trace Procedures
Voluntary Recall Procedures
Training Procedures and Documentation of Employee Completion
Product Complaint Records
Premises Diagrams
Shipping Manifests
Sales Invoices and Receipts
Waste Weigh Tickets
Closed Loop Manufacturing System Certifications
California Food Handler Certificates
Cal OSHA Training Certifications
Weighmaster Licensing and Certifications

Depending on the cannabis business type you operate, these records must be maintained and followed in operations. During inspections by DCC investigators, verification of compliance in the operation of your business may affect your license status. In the event you are found to be in violation of any DCC regulation or the specific operational plans submitted in your approved license application, you will receive a notice to comply, and could face fines, suspension, and even revocation of your license.

To stay ahead of the game, Drivon Consulting will build customized compliance packages maintained at client facilities and in-office, so you stay prepared. Inspections may come with some advanced notice or randomly with DCC showing up at your facility. In either case, our office serves to protect your cannabis business from incurring regulatory violations to keep your State license in good shape.

Business Modifications

In the event your operations require modification, whether to its physical premises or to the operating procedures, to stay compliant your business must file permit and license amendments and/or modification applications to keep your records current with regulators.

License Modifications Requiring DCC Notification and/or Approval

Changes in Ownership
Changes to the Name of the Business
Changes to Surety Bonds
Modifications to the Location of Certain Cannabis Activities within a Facility
Changes to a Water or Power Source
Changes to the Size or Capacity of the Licensed Premises
Changes to a Waste Management Plan
Changes to a Pest Management Plan

Depending on the nature of the change, an administrative amendment form or a science amendment may be required. Whenever a change to your facility or business operation is necessitated, Drivon Consulting can assist in guidance for planning, preparation, and follow-up correspondence to ensure approval of your business modification and maintenance of accurate records to keep your business compliant.

Violation/Notice to Comply Response

In the unfortunate event your cannabis business is in fact found to be in violation of applicable regulations, the business will be notified of such violation by the regulatory agency (local or DCC) who conducted the inspection. In most instances, this notification will call for a response from the cannabis business as to how compliance has been or will be achieved, as well as the measures that will be taken to ensure compliance is maintained.

Preparing and submitting violation responses and compliance plans to rectify violations may be critical for you to maintain the good standing of your cannabis business licenses and permits, as well as for avoidance of fines, suspensions, and revocation.

Over the last decade, Drivon Consulting has supported our clients through many exigent situations requiring prompt response and expert guidance. Knowing the regulations and effective means of reconciling regulatory compliance violations is part of the service we offer clients in our continuing representation as general legal and compliance counsel, once your business is approved and operational.