5 Common Cannabis Compliance Violations by Marijuana Dispensaries

As more and more marijuana dispensaries receive their medical and adult-use business licenses. As a result, avoiding cannabis compliance violations has become a top priority. New regulations released by the California Department of Cannabis Control outline what retailers must do. They also spell out the consequences for failing to comply.

Generally, if cannabis compliance violations occur, the offending retailer first receives a notice to comply. If the violation is not addressed within 15 days of the notice, penalties follow. Specifically, the marijuana dispensary could face citations and administrative fees up to $5,000.

To help you avoid these costly infractions, we have compiled a list of the most common cannabis compliance violations below.

Operating Without a License

Unfortunately, some marijuana businesses completely disregard the licensing process. Instead, they sell cannabis on their own terms. This type of blatant violations will most likely result in an immediate shutdown and very possible prosecution.

Operating without a marijuana business license undermines compliant retailers. After all, those businesses have worked hard to follow the mandates and legitimize the industry. Once temporary licenses expire, dispensaries that have not been issued an annual license will be forced to shut their doors. There is a zero-tolerance policy for these cannabis compliance violations. Therefore, it is well worth submitting an application to become a licensed retailer.

Failing To Report Inventory

Part of cannabis compliance is seed-to-sale tracking. In addition, reporting inventory counts and sales figures is required by the State of California. Failing to do so will result in a violation. Using dispensary POS software to automate reporting will allow retailers to avoid a costly infraction.

Marijuana dispensaries will need to reconcile their inventory every 14-days with the METRC reporting system. The Department of Cannabis Control also has reporting rules for serious incidents. Retailers must contact the agency and law enforcement about significant inventory discrepancies, product loss, or theft. Submitting compliance inventory reports that contain inaccuracies could also incur fines or fees.  

Patient Purchase Limits

Daily purchase limits are another tricky area of compliance. They differ for medical patients and adult-use customers. Each category of customer has different purchase limits and calculating these during a transaction is often overlooked to conserve time.

For example, there have already been crackdowns on cannabis retailers in Colorado that failed to enforce the daily sales limit accurately. Fortunately, smart dispensary POS software can alert budtenders during a transaction. The system flags when a customer has met or exceeded their daily limit. As a result, preventing overages can save your marijuana business from exorbitant citations.

Sales to Minors

Selling cannabis to minors is among the most severe cannabis compliance violations . The Department of Cannabis Control treats it with particular seriousness. New cannabis regulations authorize peace officers to use minor decoys to test marijuana dispensaries. If a decoy is allowed to enter or buy cannabis, the consequences are immediate. The owner, manager, or budtender could be apprehended or cited on the spot.

While this may seem like entrapment to some, the minor decoy is required to answer truthfully about his age. Minor decoys will either have no identification, or identification with their real birth date . Therefore, dispensary staff must stay diligent and validate every customer’s age.

Delivery Documentation

When it comes to dispensary delivery services, several compliance requirements apply. Meeting them helps dispensaries avoid violations. Every delivery driver must be at least 21 years of age and carry a copy of the cannabis business license. All couriers must also use an enclosed vehicle meaning motorcycles do not qualify as a means of delivery transportation.

Dispensary owners must submit all vehicle documentation to the Department of Cannabis Control before any deliveries can be made. This includes the VIN, license plate number, and DMV registration. Use of cannabis by couriers in route to their destination is strictly prohibited. In addition, drivers may not carry more than $3,000 worth of product on board at any one time.

Failing to meet new compliance statues can have some irreversible negative effects on your cannabis retailer. Installing compliance based POS software lets dispensaries automate many compliance requirements. In turn, owners can focus on running a successful business. Sign up for a free demo to understand all the compliance benefits associated with IndicaOnline.