- Written By: Diana Elizbaryan
The California Department of Cannabis Control (DCC) is responsible for regulating, licensing, and enforcing commercial cannabis activity under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and Title 4 of the California Code of Regulations.
Licensees may encounter compliance actions, licensing decisions, or product-related enforcement such as embargoes.
To challenge any appealable action, the licensee/applicant must request an administrative (formal) hearing.
The notice you receive from DCC will include instructions and deadlines. Missing these deadlines forfeits your appeal rights.
Some matters may be resolved informally, eliminating the need for formal hearing.
APPEALING A COMPLIANCE OR LICENSING ACTION
If you have applied for or hold an annual commercial cannabis license, you may be eligible to appeal certain actions taken by DCC.
Licensees and applicants may appeal the following DCC actions:
- A. Citations (e.x. Orders of abatement, Administrative fines)
- B. Denial of an Annual License
- C. Disciplinary Actions (License suspension, License revocation, Monetary fines)
- D. Emergency Decisions and Orders (EDO) (Temporary orders issued when immediate action is necessary to prevent danger to public health, safety, welfare, etc.)
- E. Condemnation Orders (Used when cannabis products are adulterated or misbranded and cannot be moved, sold, or disposed of)
UNDERSTANDING EMBARGOES
DCC may embargo cannabis or cannabis products when it has probable cause to believe they are:
- Adulterated
- Misbranded
- In violation of MAUCRSA or DCC regulations
Embargoes prevent the sale, transfer, removal, distribution, or disposal of affected items.
DCC has also launched the Cannabis Recall Portal, offering improved search functionality and faster access to recall information.
How DCC Issues an Embargo
DCC begins by issuing an Initial Notice of Embargo, which identifies the affected items and states the reason for the embargo
This notice may be issued in person, by phone, by mail, by fax, by email or other electronic methods
Then, the DCC will provide an inventory list, visit the site to tag/mark embargoed item, place a Track-and-Trace system hold, if necessary.
Licensee Responsibilities and Penalties
Licensees must not sell, move, destroy, transfer or otherwise handle embargoed items without written DCC approval.
Penalties for violation an embargo include fines up to $10,000 per item and disciplinary action, including possible license suspension or revocation.
Ongoing Communication from DCC
After the initial notice, DCC may issue additional embargo notices, which may include detailed instructions, required corrective actions, deadlines for responding. A Supplemental Notice of Embargo may require submission of a written plan addressing the embargoed items, underlying issues that caused the embargo, and proposed corrective action.
Only DCC or a court can lift an embargo.
Resolution process:
- Licensee submits a required written corrective plan.
- DCC reviews the plan to determine whether it resolves the violations.
- DCC issues a written determination with further instructions or approval.
Condemnation
If the plan is not approved, or if the licensee fails to respond by the deadline, DCC may begin condemnation proceedings under Bus. & Prof. Code § 26039.3(f).
Our team is experienced in navigating DCC compliance matters and can assist you with communicating with the Department, and pursuing an appeal when appropriate. We help ensure that your rights are protected at every stage of the license application process.
Sources: California Code of Regulations, Title 4; DCC Regulations.
