Posts tagged cannabis compiance

The moment cannabis became legal in a wide array of states including California for medical and recreational uses; Cannapreneurs as well as cannabis investors knew the game was changing. This change meant certain laws were enacted to govern and of course, ensure a level playing field for everyone in the industry.

Cannabis Compliance

The moment you’ve been granted a cannabis license in California to retail cannabis, means you are officially a member of the world’s largest legal cannabis trade. Being handed the opportunity to sell cannabis legally in this state or any other state in the US is a lifetime opportunity. This means, you now have the right to retail, distribute, and of course dispense cannabis.

All of which must be done in compliance with every Californian law and regulation applicable. Taking to mind the aforementioned tip, it should be worthy to note that, the moment the license is obtained, your ability to stay compliant with the laws and regulations shouldn’t be neglected. Operating contrary to this is tantamount to losing the license you worked so hard to gain.

California Cannabis Compliance Guide

With that in mind, enclosed below are some of the key California cannabis compliance aspects you’d need to know.

Documentation And Reconciliation of Inventory Requirements

The state of California requires that all legal cannabis retailers record and maintain detailed inventory records. Meaning you must reconcile your inventory physically, along site your internal records at least once every 2 weeks.


Customer Verification as well as Daily Purchase Limits

When it comes to cannabis compliance in California, nothing is for granted. All of which is evident considering you must verify your client's identities and their ages. This must be done to ensure you aren’t dealing minors, because doing so may place you at the wrong side of the law. Like the laws stipulates, Adult-use customers must be 21 or older and must present a valid identification document.

Medical patients or caregivers on the other hand must be 18 or older and must equally present a valid identification document. Unlike Adult-use customers, Medical patients or caregivers must present a recommendation from a certified physician.

Always Track and Trace All Reporting Requirements

Tagged as “seed to sale” reporting, track and trace reporting is a key cannabis compliance aspect in California. This method of cannabis compliance gives access to the state to monitor the cultivation, processing, transportation, and sales of every cannabis plant. With the aid of Metrc (MED Marijuana Inventory Tracking System), the whole process is made easy and stress-free.

Metrc Reporting

Once you’ve successfully created and had your account setup in Metrc, then you can either report your daily activities manually or automatically. With manual reporting, you’d be required to log in daily into your Metrc account. Specifically at the end of every business day, to input and or record all data from the different transactions carried out. With automated reporting, you’d have to use certain cannabis-related retail software solutions.

Most of which must be integrated with Metrc, to synchronize all data from your store's transactions so they can occur in real-time.

Compiling Reports With No Internet

Should you be faced with situations of this magnitude, which made you lose access to Metrc for daily reporting, endeavor to compile a detailed record of all of the data. When that is done, make sure it is backlogged into Metrc within three days of restored connectivity.

Final Note

Making it big in the legal cannabis trade isn’t all about venturing into the industry with a lot of capital. While capital is essential and tagged as the lifeblood of every business, your ability to make it big in the legal cannabis trade in California depends solely on how much you comply with the laws governing the cannabis trade within the state. Do that and you’d be thrilled with the outcome.


For Cannabis Business Licensing help, call at . We help cannabis business owners navigate the complex world of State and Local Cannabis Regulations while helping to develop and grow your business in the right direction. CAP can assist with projects large or small. Whether you’re looking for full-service state and local cannabis licensing or other services such as Cannabis Pro Forma, Cannabis Business Plan, Cannabis Business SOP, and Cannabis Investor Presentation development, we have you covered.

Information Regarding Posting of QR Codes by Commercial Cannabis Retail Licensees
Information Regarding Posting of QR Codes by Commercial Cannabis Retail Licensees
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The Bureau of Cannabis Control (Bureau) is encouraging retailers open to the public to post a QR Code certificate that consumers may scan with their smartphone camera when visiting a commercial cannabis storefront retailer to confirm licensure. Participation in this effort by retail licensees will assist consumers in purchasing legal cannabis goods. Licensees are also encouraged to educate their customers on how to use the QR Code and the importance of shopping at a licensed retailer. The Bureau is providing licensees with an enlarged version of their individual QR Code (QR Code certificate). Storefront cannabis retailers are encouraged to assist the public by prominently displaying their QR Code certificate on the licensed premises in the following manner:

• The QR Code certificate should be visible and scannable from outside the premises.

• The QR Code certificate should be printed on paper not less than 8 ½” by 11”.

• The QR Code itself should not be less than 3.75” by 3.75”.

• The QR Code should be posted in the front window of the licensed premises or in a locked display case mounted on the outside wall of the licensed premises within three (3) feet of any public entrance to the licensed facility.

• The QR Code should be posted in a manner that is clearly visible from outside of the licensed premises by all persons entering the premises and shall be of sufficient clarity that the code can be read by a smartphone or device capable of reading QR Codes from a distance of at least three (3) feet.

Consumers can confirm that the retail location is properly licensed by using a phone camera or QR Code app to scan the QR Code certificate. Once scanned, the consumer will automatically link to a URL that confirms the cannabis retailer’s license status. The website will display the address and business license of the location to ensure that the retailer at that location is licensed. By providing commercial cannabis consumers with an easy method for verifying licensure status, the Bureau and its licensees can work together to reduce the potential risks that may come from the purchase of non-compliant cannabis goods from unlicensed retailers.

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Sacramento Serves Warrants to 24 Unlicensed Dispensaries
Sacramento Serves Warrants to 24 Unlicensed Dispensaries

SACRAMENTO – The Bureau of Cannabis Control (Bureau) and the Department of Consumer Affairs’ Cannabis Enforcement Unit (DOI-CEU) today announced a series of enforcement actions against illegal cannabis retailers operating in Los Angeles.

Search warrants were served on 24 unlicensed locations over a 3-day period from December 10 to December 12 and resulted in the seizing of $8.8 million in cannabis and cannabis products. Enforcement staff also confiscated 9,885 illegal vape pens and $128,742 in cash.

“This week’s collaborative enforcement efforts were a huge success,” said Bureau Chief Lori Ajax. “We look forward to working with local jurisdictions and law enforcement as we continue to shut down unlicensed operators in the illicit cannabis market.”

All commercial cannabis activity in California must be conducted on a premises with a valid license issued by the appropriate state cannabis licensing authority. Manufacturing, distributing or selling cannabis goods without a state license or at a location that is not licensed is a violation of state law. To file a complaint regarding illegal activity, click here – Enforcement Online Services.

To check and see if a cannabis business is licensed by the state, visit

Long Beach to Lower Cannabis Taxes for Non-Storefront Businesses
Long Beach to Lower Cannabis Taxes for Non-Storefront Businesses

The Long Beach City Council has voted to lower the tax rate for cannabis cultivators, manufacturers, distributors and testing labs from 6% to 1%.

 Although this new rate won’t come into effect until an ordinance is created, many cannabis business owners are starting to feel more at ease after months of lobbying for lower taxes.

The City Council purposely left retail taxes out of the picture. By lowering the taxes of other cannabis business sectors, cannabis dispensaries will pass on less product costs to their customers. This will give the Long Beach legal cannabis market time to establish itself and outgrow the black-market shops.

As of August 2019, the city had received 618 cannabis business applications, in which only 106 of those had been issued a business license. Hundreds of facilities remain under construction, under building plan review or pending building plants or initial zoning review.

At 6%, Long Beach currently holds one of the highest taxes for any non-storefront cannabis business. Even Los Angeles holds a 2% tax on cultivation on manufacturing and cultivation and 1% on distribution and lab testing.

The city’s cannabis revenue will drop a few hundred thousand dollars, but this will depend on how many cannabis businesses the city allows to open its doors.

The ordinance will be drafted in the next coming months and will not go into effect until the city council approves it twice and at least 30 days have passed after the mayor signs it into law.

California Cannabis City Updates
California Cannabis City Updates

Stanton, CA
Stanton residents recently voted on a tax that would tax commercial cannabis businesses (Measure A).

Oxnard, CA
Oxnard will hold a hearing for a retail cannabis ordinance. The meeting will take place on December 3rd.

Benicia, CA
Benicia has approved an ordinance for delivery only cannabis activity.
Additionally, the city will remove the cap on micro businesses in the jurisdiction.

Thousand Oaks, CA (11-5-19)
Thousand Oaks has extended a moratorium on all commercial and industrial hemp
cultivation, processing, storing, retail and other commercial uses.

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DCR Compliance Training Workshop
DCR Compliance Training Workshop

The Department of Cannabis Regulations will be holding a phase 2 cannabis compliance training workshop on Saturday, November 23rd, 2019 from 2 PM - 4 PM. Follow the link below to register!