Starting a cannabis business can be an exciting and challenging endeavor. California is one of the most lucrative markets for cannabis dispensaries, and many people are jumping into the business with both feet. However, there are strict regulations in place for cannabis businesses, and violating these policies can lead to severe consequences. One legal requirement that cannabis businesses in California must adhere to is having a business license.
In this blog post, we will be exploring the most common cannabis business license violations in California and the consequences of crossing that line.
Common Cannabis Business License Violations in California
Obtaining a cannabis business license is one of the first steps entrepreneurs take on the road to establishing and running a successful cannabis dispensary in California. By learning about and making sure not to commit the common cannabis business license violations listed below, dispensary owners can protect their businesses from the severe legal consequences of breaking California’s cannabis business laws:
- Operating without a license: In California, cannabis businesses must follow strict guidelines, including adhering to zoning, tax, permit, and licensing regulations. If your cannabis dispensary is not licensed, it is at risk of being shuttered, and you could face hefty fines and other legal consequences.
- Selling to minors: Regulations in California prohibit cannabis businesses from selling cannabis products to anyone under the age of 21. Selling to minors can lead to severe penalties, including the suspension or revocation of your cannabis business license.
- Unsafe storage and transportation of cannabis products: As a cannabis dispensary owner, you must ensure the safe storage and transportation of cannabis products. California follows strict guidelines concerning the storage, labeling, and transportation of cannabis products. Violating these guidelines can lead to severe fines, business license suspension, and even revocation of your cannabis business license.
- Violation of tax and zoning Regulations: Cannabis dispensaries should be aware of the tax regulations imposed on them and always abide by them. Tax evasion or misreporting is considered a violation of your cannabis business license. Similarly, violating zoning regulations, such as operating in the wrong location, can lead to severe ramifications, including the suspension or revocation of your cannabis business license.
Need Help Understanding and Adhering to California’s Cannabis Business Laws? Contact Purdy & Bailey, LLP Today!
As California’s cannabis industry evolves, cannabis dispensary owners must keep up with regulatory developments, such as ever-changing cannabis business licensing requirements, to avoid potential legal issues. One of the best ways to do this is to hire a cannabis business attorney to handle your dispensary’s legal matters.
The legal team at Purdy & Bailey, LLP is dedicated to helping cannabis dispensary owners stay up-to-date and in compliance with California’s cannabis business license requirements and any other legal matters associated with owning and operating a cannabis business.
To learn more about Purdy & Bailey, LLP, read our clients’ reviews.
For more information about owning and operating a cannabis dispensary in California, and how we can help you, call us at (858) 360-7080 or reach out to us online today to schedule a free consultation with our experienced cannabis business lawyers in San Diego.