Article 6.

Inspections, Investigations, and Audits

§ 8500. Inspections, Investigations, and Audits Applicability.

§ 8500 (a) All licensees and applicants shall be subject to inspection, investigation, or audit of their licensed premises and records by the department to determine compliance with applicable laws and regulations.

§ 8500 (b) Inspections, investigations, and audits may be conducted by the department in coordination with the California
Department of Fish and Wildlife and the State Water Resources Control Board consistent with section 12029, subdivision (c) of the Fish and Game Code.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013 and 26015, Business and Professions Code.

§ 8501. Inspections, Investigations, Examinations, and Audits.

The department shall conduct inspections, investigations, examinations, and audits of licensees including, but not limited to,
a review of any books, records, accounts, inventory, or onsite operations specific to the license.

§ 8501 (a) (a) The department may conduct an inspection, investigation, examination, or audit for any of the following purposes:

(1) To determine accuracy and completeness of the application prior to issuing a license;

(2) To determine compliance with license requirements including, but not limited to, the cultivation plan;

(3) To audit or inspect any records outlined in section 8400 of this chapter;

(4) To respond to a complaint(s) received by the department regarding the licensee;

(5) To inspect incoming or outgoing shipments of cannabis and nonmanufactured cannabis products; and

§ 8501 (b) (b) Inspections, investigations, examinations, and audits of a licensed premises shall be conducted at any time, or as
otherwise agreed to by the department and the licensee or its agents, employees, or representatives. Prior notice of inspection, investigation, or examination is not required.

§ 8501 (c) No applicant, licensee, or any agent or employee shall interfere with, obstruct, or impede the department’s inspection, investigation, or audit. This includes, but is not limited to, the following actions:

(1) Denying the department access to the licensed premises;

(2) Providing false or misleading statements;

(3) Providing false, falsified, fraudulent, or misleading documents and records; and

§ 8501 (d) Upon completion of an inspection, investigation, examination, or audit, the department shall notify the licensee of any violation(s) and/or action(s) the department is taking.

Authority: Sections 26012 and 26013, Business and Professions Code.
Reference: Sections 26013, 26015, and 26160, Business and Professions Code.
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