compliance issues

Regulators reveal most common compliance issues, part 1

Compliance issues are common in California’s newly regulated cannabis industry, which is no surprise given the complexity of the state’s regulatory landscape.

Enforcement has been ramping up after the state’s emergency regulations went into effect on January 1, with regulators assailing unlicensed cannabis businesses and conducting inspections of those that have received licenses to make sure they are complying with the new regulations. Unfortunately, many of the businesses that have faced these surprise compliance checks have not fared well.

At the most recent California Cannabis Industry Association conference, regulators shared data on the compliance issues found when investigating licensees. Simplifya was there, and we have compiled a list of the most common compliance issues.

1. Sometimes local licensing is literally impossible

This has been a problem because all cannabis businesses need to obtain a permit or other form of approval from their local jurisdiction before applying for a state license. Only an estimated 33% of California’s 482 cities and 58 counties have created regulations for the cannabis industry in their jurisdiction. Obviously, this is a huge issue for cannabis businesses seeking state licenses.

2. Closed loop extraction systems not engineer-certified

Many manufacturers fail to certify their closed loop extraction systems. All closed loop systems used in chemical extractions using CO2 or volatile solvents need to be certified by a California-licensed engineer. Make sure the certification document contains the engineer’s signature and stamp. It should also include the serial number of the extraction unit.

3. Missing operator ID numbers

If you use pesticides for agricultural use, you’ll need to obtain an operator ID number from your county’s Agricultural Commissioner. Operator ID numbers help the California Department of Pesticide Regulation manage pesticide use data.

4. Missing weighmaster licenses

Many cultivation facilities fail to obtain a weighmaster license. Any cultivator who sells cannabis by bulk weight must get a weighmaster license. The CDFA has provided some helpful information on its website to help you figure out whether you need to get licensed as a weighmaster.

5. Canopies are exceeding allowable sizes

Regulators measure canopy size during compliance checks to make sure cultivators are not growing more cannabis than what’s allowed under their specific license types. Remember, canopy area includes the square footage of any areas that contain mature plants at any point in time. For those using shelving systems, the calculation of canopy size includes the surface area of each level.

Simplifya can help you navigate the complexities of California’s new regulations to ensure you avoid these issues and others. Let us show you how easy it can be to maintain compliance. Schedule a demo with us today!

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