Avoid Fines | Become Cannabis Compliant

In keeping with its mandate to protect the public, the Bureau of Cannabis Control has adopted these recommended disciplinary guidelines in order to promote consistency of cannabis law enforcement throughout the state of California.

To avoid potential cannabis compliance fines, please reach out to us with any questions you may have.

Factors to be Considered in Determining Penalties

The Bureau of Cannabis Control determines if the commercial cannabis business is to be revoked, suspended, fined, or put on probation based on these factors below:

  • Nature and severity of the act(s), violations, offenses, or crime(s) under consideration.

  • Actual or potential harm to the public.

  • Actual or potential harm to any patient.

  • Prior disciplinary and/or administrative record.

  • Number and/or variety of current violations.

  • Mitigating evidence.

  • Rehabilitation evidence, including but not limited to, a statement of rehabilitation containing any evidence that demonstrates fitness for licensure, or a certificate of rehabilitation under Penal Code section 4852.01.

  • In case of a criminal conviction, compliance with conditions of sentence and/or court-ordered probation.

  • Overall criminal record.

  • Time passed since the act(s) or offense(s) occurred.

  • If applicable, evidence of expungement proceedings pursuant to Penal Code Section 1203.4.

  • Whether the conviction is a felony conviction based on possession or use of cannabis goods

    that would not be a felony if the person was convicted during the time of licensure.

California Code of Regulations | Disciplinary Order Guidelines | Tier 1

Disciplinary Order for violations that are potentially harmful.

Minimum Disciplinary Act: revocation stayed, 5 to 15-day suspension, a fine, or a combination of a suspension and fine.

Maximum: revocation

  • Failure to Pay Appropriate Fees

  • Failure to Cancel, Destroy, or Surrender License

  • Failure to Comply with Business Modifications Requirements and Notice

  • Use of Cannabis Diffuser or Vaporizer on Licensed Premises

  • Unauthorized Modification of Licensed Premises

  • Prohibited Commercial Cannabis Activity Between Medicinal and Adult-Use Licensees

  • Unauthorized Storage of Inventory

  • Failure to Maintain Records

  • Unauthorized Use of the Track and Trace System and Failure to Maintain Track and Trace System Requirements

  • Failure to Properly Display and Post License

  • Failure to Comply with Advertising and Marketing Requirements

  • Failure to Maintain and Restrict Limited-Access and Other Restricted Areas

  • Failure of Licensee or Employee to Properly Display Licensee-issued Identification Badge

  • Failure to Comply with Security Requirements

  • Improper Acceptance or Rejection of Cannabis Goods Shipment

  • Failure to Comply with Proper Cannabis Destruction and Waste Management

  • Unauthorized Storage of Cannabis Goods and Storage-only Services

  • Failure to Comply with Packaging and Labeling Requirements

  • Failure to Comply with Insurance Requirements

  • Failure to Account for Inventory, or to Complete Inventory Reconciliation as Required

  • Unauthorized Return of Cannabis Goods

  • Failure to Comply with Transportation Requirements of Cannabis Goods

  • Failure to Comply with Transport Personnel Requirements

  • Unauthorized Use of Distributor Transport Only License

  • Failure to Maintain Proper Chain of Custody of Testing Sample

  • Failure to Timely Submit a Certificate of Analysis and Results

  • Failure to Supply Requested Data to the Bureau in a Timely Manner

  • Failure to Comply with Shipping Manifest Requirements

  • Failure to Confirm Age of Customers

  • Unauthorized Hours of Operation

  • Failure to Properly Display Cannabis Goods

  • Unauthorized Sale of Cannabis Plants and Seeds

  • Use of Pesticide on Live Plants

  • Give Away or Furnishing of Free Cannabis Goods or Accessories

  • Failure to Comply with Exit Packaging Requirements

  • Failure to Comply with Delivery Requirements

  • Failure to Provide Delivery Request Receipts

  • Receipt of Inventory Shipment That Does Not Meet Requirements

  • Improper Retailer Premises Transfer

  • Failure to Record Sales to Customer

  • Failure to Comply with Requirements for Temporary Cannabis Event License

  • Non-Permitted Use of License

  • Failure to Comply with Local Ordinance Regulating Commercial Cannabis Activity

  • Failure to Comply with Operating Procedures

  • Allowing for the Sale of Alcohol or Tobacco Products, or Storage or Consumption of Alcoholic Beverages, on Licensed Premises

  • False or Misleading Health-Related Statements

  • Failure to Record Commercial Cannabis Activity on Sales Invoice or Receipt

  • Failure to Exercise Care for Safety of Self or Others Due to Being Under the Influence of an Intoxicating Substance

California Code of Regulations | Disciplinary Order Guidelines | Tier 2

Disciplinary Order for violations with a serious potential for harm, violations which involve greater risk and disregard of public safety.

Minimum: revocation stayed, 15 to 30-day suspension, a fine, or a combination of a suspension and fine.

Maximum: revocation

  • Exceeding License Privileges for Commercial Cannabis Activity

  • Holding an Interest in a Licensed Testing Laboratory and Other Commercial Cannabis License

  • Unauthorized Use and Operation of Designated Licensed Premises

  • Sale or Delivery of Cannabis Goods to a Motor Vehicle

  • Subletting of Premises

  • Failure to Comply with Track and Trace Reporting and System Reconciliation Requirements

  • Failure to Comply with Video Surveillance System Requirements

  • Failure to Comply with Security Personnel Requirements

  • Failure to Comply with Age Restrictions for Employees and Other Persons Retained by Licensee

  • Sale or Furnish of Adult-use Cannabis Goods to Minors

  • Unauthorized Consumption of Cannabis Goods on Licensed Premises

  • Unauthorized Sale of Non-Cannabis Goods on Premises

  • Exceeding Daily Limits of Cannabis Goods Sales

  • Consumption of Cannabis Goods During Delivery

  • Failure to Ensure Laboratory Testing Arrangements, Proper Sampling and Quality Assurance

  • Failure to Present the Cannabis Goods Batch With Accurate Information, in its Entirety, and Final Form

  • Reporting Results when Laboratory Quality Control (LQC) Data is Outside of Acceptance Criteria and/or Not Analyzing Required LQC Samples

  • Failure to Follow Good Laboratory Practices

  • Unauthorized Remediation of Failed Sample Batches

  • Failure to Comply with Microbusiness Requirements

  • Failure to Comply with Laboratory Testing Requirements

  • False or Misleading Declaration of Correction in a Notice to Comply

  • Prohibited Attire and Conduct

  • Prohibited Entertainers and Conduct

  • Allowing for the Copy or Display of a Fictitious License or a License that is Canceled, Revoked, or Altered

  • Misdemeanor Offenses by Licensees

  • Discipline by Another Agency

  • Failure to Provide Safe Conditions for Inspection

  • Engaging in any Prohibited Restraint of Trade, or Other Prohibited Act to Create a Monopoly or Injure Competitors

  • Violation of Building Standards or Regulations Relating to Hazardous Materials

  • Failure to Comply with Manufacturing Standards

California Code of Regulations | Disciplinary Order Guidelines | Tier 3

Discipline Order for knowingly violating laws or regulations pertaining to commercial cannabis activity, fraudulent acts relating to the licensee’s commercial cannabis business.

Minimum: revocation stayed, 45-day suspension, a fine, or a combination of a suspension and fine.

Maximum: revocation

  • Engaging in Business Modification Practices without Bureau Approval

  • Failure to Notify the Bureau of a Change in Ownership

  • Obtaining a License for Premises in Restricted Location

  • Conducting Commercial Cannabis Activity with NonLicensees

  • Failure to Notify the Bureau of Criminal Acts, Civil Judgments, Labor Standard Violations, and Revocation of a Local License, or Other Authorization after Licensure

  • Failure to Notify the Bureau of Significant Discrepancy, Theft, Loss, and Criminal Activity

  • Restricting or Hindering the Examination of Books, Records, or Equipment

  • False Reporting of a Disaster

  • Retail Sale of Untested Cannabis Goods, or Cannabis Goods Not Received From a Licensed Distributor or Licensed Microbusiness

  • Sale of Customer-Returned Cannabis Goods

  • Unauthorized Release of a Cannabis Goods Batch for Retail Sale, Including Dry-labbing and/or False Reporting of Results

  • Unauthorized Release of a Cannabis Goods Batch for Retail Sale or Distribution Transfers

  • Failure to Complete all Required Analyses at One Licensed Laboratory Premises, Including Subcontracting or Transferring Samples Between Laboratories

  • Amending or Changing a Regulatory Compliance COA after Issuance

  • Obstruction of Inspections, Investigations, or Audits

  • Failure to Provide Access to Premises for Any Inspection, Audit, Review, or Investigation

  • Delivery or Transport of Cannabis Goods Outside of California or to a Publicly Owned or Leased Location

  • Failure to Correct Any Objectionable Conditions on Premises

  • Illegal Sale of Dangerous Drugs, or Other Controlled Substances

  • Failure to Pay Fine

  • Engage in Conduct that is Grounds for Denial of Licensure

  • False Statement or Omission in Application

  • Conviction of a Crime Substantially Related to Qualifications, Functions, or Duties of Licensure

  • Securing License by Fraud, Deceit, or Misrepresentation.

  • Failure to Pay Taxes

  • Unauthorized Release of Patient Information

How Fines Are Calculated

The Bureau of Cannabis Control calculates their cannabis compliance fines based on:

Gross Revenue divided by Number of Days Open During the Preceding 12 Months = Average Daily Sale Amount

50% of the Average Daily Sale Amount multiplied by Number of Days of the Suspension = Potential Fine Amount

It is important for Licensees to keep up-to-date books and records detailing the average daily sales and the loss of profits of the business’s cannabis activity if in fact sales are suspended. These records are to be made accessible to the Bureau in order for them to determine the fine amount.

Fine Amounts Based on License Type

Bcc Fines Chart-01.png

DISCLAIMER: When filing an accusation, the Bureau or Office of the Attorney General are not limited to the violations listed herein. They may also cite any and all additional related statutes and regulations violated not listed below. The following is not a comprehensive list of potential violations and in no way, should limit the Bureau or the Attorney General’s Office from asserting any relevant and applicable violation.

For more information visit: https://bcc.ca.gov/law_regs/bcc_disciplinary_guidlines_102018.pdf