Compliance focus
Chapter 3 – Regulation & Enforcement
This chapter explains how oversight works: inspections, investigations, disciplinary action, and recordkeeping obligations.
Key Enforcement Powers
- Unannounced inspections: Regulators may enter licensed premises and inspect records during business hours.§301
- Evidence collection: OCP may seize cannabis, equipment, or records tied to suspected violations.§302
- Violation tiers: Civil penalties, suspensions, and revocations depend on severity and recurrence.§305
- Mandatory reporting: Licensees must report theft, diversion, or security breaches without delay.§303
Inspection Prep Checklist
- Records Ready: Sales, inventory, and transfer logs accessible within minutes.
- Product Traceability: Seed-to-sale tags intact and scannable for each package.§304
- Security Footage: Cameras functioning, recordings retained per rule.
- Employee Badges: Everyone on shift wearing identification as required.
Violation Matrix (Simplified)
| Violation Type | Example | Potential Consequence |
|---|---|---|
| Administrative | Late reports, incomplete records | Fines, corrective action plan |
| Operational | Improper packaging, missing warnings | Product seizure, suspension |
| Major | Sales to minors, diversion, falsified data | License revocation, heavy civil penalties |
Actual penalties depend on history and corrective measures—log everything.
When to Escalate Immediately
- Theft or diversion discovered: Report to management and OCP at once.§303(2)
- Security breach: Trigger emergency procedures and notify regulators as required.
- Serious injury tied to product: Preserve evidence, notify OCP, cooperate with investigation.
Review the full Retail Operations Playbook for frontline procedures and rehearse inspection drills quarterly.