Compliance

1. Compliance Inspections

All commercial cannabis licensees are subject to compliance inspections to ensure adherence to the Rules and Regulations for Cannabis Procedures. Compliance inspections are conducted to protect the health and safety of employees, customers, and the surrounding community.

What to Expect:

• You will receive an email notification at least 24 hours in advance of your scheduled inspection.
• The notification will include preparation instructions and a Self-Assessment Checklist to help you identify any deficiencies.
• The inspection will include a full walkthrough of your business premises, including a review of required signage, security systems, personnel records, Standard Operating Procedures, Metrc (Track and Trace), amongst other items that will be checked during the compliance inspection.

How to Prepare:

• Review Compliance Inspection 101 Webinar 1 and Webinar 2.
• Complete the Compliance Inspection Self-Assessment Checklist(PDF, 2MB).
• Ensure you have all required documents, including personnel records, security plans, Standard Operating Procedures, inventory and sales records.
• Refer to the LIC-4024-FORM Business Premises Diagram Checklist(PDF, 387KB). This form will help you verify if your premises layout matches the approved diagram on file. If discrepancies are found, you may be required to submit a Premises Diagram Modification Request to DCR Licensing.

Inspection Results:

• If your inspection is satisfactory, you will receive an email confirmation from the Compliance Analyst.
• If deficiencies are found, you will receive a Notice to Correct (NTC). You will have 30 days from receipt of the NTC to rectify the issues or you may request an extension of time to comply with the NTC by submitting the ENF-3005-FORM.

Notice to Correct (NTC)

• What it is: Issued when minor compliance issues are discovered, the NTC provides the licensee with the opportunity to address and correct violations without penalties.
• Action Required: Correct the listed violations by the specified compliance date. If more time is needed, request an extension by submitting the ENF-3005-FORM(PDF, 341KB).
  • Example: Missing or incorrect signage on the premises.
• Consequences of Non-Compliance: If violations are not corrected by the due date, a Notice of Violation (NOV) may be issued. For more information about Notice of Violations (NOV), please refer to the Enforcement section and the Violation Notices subsection.

2. Notice to Correct (NTC) Guide:

Download Sample NTC Here(PDF, 245KB)

See below for more information on what it means and how to comply.

• Case Number: The case number uniquely identifies this specific notice. Use this number in all communications with the DCR regarding this notice.
• Notice Date: This is the date the notice was issued by the Compliance Analyst.
• Compliance Date: This is the deadline by which you must resolve cited deficiencies. Extensions can be requested using the ENF-3005-FORM(PDF, 341KB).
• Violation Description: This section describes the specific regulation that has been violated. You are required to address this issue according to the corrective actions listed.
• Corrective Action: Describes the required actions to resolve the issue. Each corrective action corresponds to a specific deficiency found during the inspection. For example, if signage is missing, you may be asked to update your signs and submit proof of correction.
• Compliance Analyst Contact: If you have questions or need clarification, the compliance analyst listed here is your point of contact.
• Failure to Comply: Failure to address the issues by the Compliance Date may result in further enforcement actions, such as a Notice of Violation (NOV) and administrative penalties.

For more details on Compliance Inspection expectations, please refer to the full Cannabis Rules and Regulations, specifically Regulation No. 5: Operational Requirements and Violations

Compliance Inspection Feedback Survey

Your feedback helps us improve the compliance inspection process. Please take a few minutes to rate your inspection experience and provide feedback.

3. Required Compliance Notices

As a licensed cannabis business in the City of Los Angeles, it’s important to stay compliant with the Department of Cannabis Regulation (DCR) by submitting certain notifications in a timely manner. These notifications ensure that your business is operating within legal guidelines and help the DCR maintain accurate records of all licensed activities.

Required Notifications to the DCR:

1. ENF-3003-FORM(PDF, 300KB): Licensee Attestation: Operational Rules and Regulations
   • What is it? This Attestation Form is required of all Licensees declaring that they have received, read and understand all applicable operational regulations and to notify the Department of Cannabis Regulation (DCR) when they officially begin their licensed cannabis activity. The form also requires that a copy of the regulations be provided to any and all Primary Personnel, managers and persons-in-charge.
   • Why is it important? In addition to agreeing to abide by the Rules and Regulations, this form ensures that the DCR is informed about the start of your operations, which helps maintain transparency and compliance with city regulations. Failure to submit this form within 30 days of starting your operations could result in minor violations.
   • Submission Requirements: Submit the completed form within 30 days of your first commercial cannabis activity.
2. ENF-3004-FORM: Cannabis Delivery Vehicle Fleet Information
   • What is it? The Cannabis Delivery Vehicle Fleet Information Form (ENF-3004-FORM(PDF, 336KB)) is used by Delivery Only operators or Storefront Retail operators engaging in delivery to register all delivery vehicles and delivery employees.
   • Why is it important? When you submit/register the Cannabis Delivery Vehicle Fleet Information Form, you will receive a Delivery Vehicle Placard (DVP) which is required to be kept in the delivery vehicle(s) during business hours. The placard will include a QR Code that will help any law enforcement agency verify that the cannabis delivery activity is authorized by the DCR. Delivery vehicles are subject to random inspections by the DCR or law enforcement, and unregistered vehicles may result in moderate violations.
   • Submission Requirements: Submit within 30 days of obtaining a license that authorizes delivery (Type 10 and Type 9). If not operational within 30 days of receiving a license, or if you are a storefront retail operator not engaging in delivery, please notify the DCR by emailing DCRCompliance@lacity.org. Additionally, use this form to notify the DCR of any changes to the delivery vehicle fleet or delivery employees.

3. Notification of Irregularities and Criminal Activity

   1. What is it? This notification is used to report any significant discrepancies in inventory, suspected or actual theft, loss, or other criminal activities related to your cannabis business.
   2. Why is it important? Prompt reporting of irregularities helps prevent further criminal activity and maintains the integrity of your operations. This report must be submitted within 24 hours to avoid moderate violations.
   3. Submission Requirements: Submit within 24 hours of discovering any irregularities or criminal activities via the provided form.
      
4. Notification of Convictions, Judgments, and Revocations
   1. What is it? This notification is required to report any criminal convictions, civil judgments, and revocations or suspensions of state licenses related to the licensed cannabis business or its personnel.
   2. Why is it important? Keeping the DCR informed of any legal actions ensures your compliance with the city’s cannabis regulations. Failure to notify the DCR within 48 hours of such incidents may result in minor violations.
   3. Submission Requirements: Notify the DCR within 48 hours via the provided form after the entry of a conviction, judgment, or revocation.
      

If you have any further questions, please contact the DCR at DCRCompliance@lacity.org.