Though the risk of federal enforcement actions against state-legal cannabis businesses in California has declined in recent years, there has been an uptick in enforcement actions brought on by the state licensing authorities. Each of the primary cannabis licensing and regulatory authorities in California – the Bureau of Cannabis Control (BCC); CalCannabis Cultivation Licensing (CDFA); and Manufactured Cannabis Safety Branch (CDPH) – has ramped up enforcement against unlicensed cannabis operators as well as licensed but non-compliant cannabis businesses.
Under State Law, cannabis licensing authorities may fine unlicensed person(s) up to thirty thousand dollars ($30,000) per violation. It is important to note that, each day of the violation constitutes a separate violation.
Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) makes a person engaging in commercial cannabis activity without a license required by MAUCRSA subject to civil penalties up to 3 times the amount of the license fee for each violation.
Under State Law, cannabis licensing authorities may, as part of each citation, assess an administrative fine of up to five thousand dollars ($5,000) per violation by a licensee. Each day of the deemed violation constitutes a separate violation per state law.
At Rogoway Law, we understand that enforcement actions can pose an existential threat to cannabis industry operators. Our Enforcement Action Defense Attorneys have garnered significant experience, which we bring to bear on behalf of our clients. Our attorneys have also been successful in proactively resolving our client’s problems before a matter has been formally charged or otherwise made public.
Administrative enforcement actions can pose an existential threat to businesses operating in highly regulated environments such as the cannabis, alcoholic beverage, hemp, and psychedelics industries. Everything from careless employees to overzealous regulators can massively disrupt an otherwise well-functioning business. At Rogoway Law, our attorneys are successful in piloting our clients through complex enforcement actions because we have deep regulatory and agency expertise.
We work with companies, small, medium, and large, to make sure they can survive administrative enforcement actions brought by local, state, and federal agencies. This often begins with an initial contact from the regulator who wants to ensure unwavering compliance with the controlling statutes and regulations. These interactions require skillful counsel where working with the regulator and licensing authorities to immediately address their concerns can often mean the difference between success and peril.
Our attorneys are pragmatic problem solvers with subject matter expertise and a real-life understanding of business and compliance. When something happens concerning your regulatory compliance, you need a strategic partner to help you get through it.
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