If you have applied for or been issued an annual commercial cannabis license through the Department of Cannabis Control (DCC), you are eligible to appeal certain compliance and licensing actions taken by DCC, pursuant to the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) and title 4 of the California Code of Regulations.
Frequently asked questions about appealing a compliance or licensing action
Q: What types of compliance or licensing actions are eligible for appeal?
A: If you have applied for or been issued an annual commercial cannabis license, you are eligible to appeal the following types of compliance and licensing actions taken by DCC.
- Citations, which may include an order of abatement and/or administrative fine (Business and Professions Code section 26031.5)
- Denial of annual license (Business and Professions Code section 26058)
- Disciplinary actions including annual license suspension, annual license revocation, and fines (Business and Professions Code section 26031, and Government Code section 11506)
- Emergency decision and orders (EDO) issued by DCC to provide temporary, interim relief to prevent or avoid immediate danger to public health, safety, or welfare (California Code of Regulations, title 4, section 17815, and Government Code section 11460.10 -11460.80)
- Condemnation orders issued by DCC to prevent the removal, sale, or disposal of adulterated or misbranded cannabis or cannabis products. (Business and Professions Code section 26039.3)
Q: How does an applicant or licensee initiate the appeals process?
A: The first step to initiating the appeals process is to request an administrative hearing, also known as a formal hearing. Instructions are provided to the applicant or licensee when the compliance or licensing action is served by DCC. In some circumstances, cases may be resolved between DCC and the impacted party through an informal proceeding. If resolved informally, the need to participate in a formal hearing becomes unnecessary.
Q: Does requesting an informal proceeding start the appeals process?
A: No, requesting an informal proceeding does not start the appeals process. Informal proceedings, such as an informal conference provided pursuant to a citation or an informal hearing provided pursuant to an EDO, may be requested and held prior to an administrative hearing.
The timeframe for requesting an informal proceeding will vary depending on the type of compliance or licensing action taken. Informal proceedings do not change or delay the timeline for requesting an administrative hearing.
Additional information about informal conferences can be found by reviewing California Code of Regulations, Title 4, section 17803.
Additional information about informal hearings can be found by reviewing California Code of Regulations, Title 4, section 17815 (h)(5).
Q: What happens during an administrative hearing?
A: The administrative hearing will be held before an administrative law judge (ALJ) at the Office of Administrative Hearings. The applicant or licensee may be represented by an attorney, or they can represent themselves at the administrative hearing.
During the administrative hearing, DCC staff may testify regarding the basis for the compliance or licensing action. The applicant or licensee may also testify and/or present evidence. Upon completion of the formal hearing, the ALJ has 30 days to prepare a proposed decision for consideration by the DCC Director.
Additional information about administrative hearings can be found by visiting the Office of Administrative Hearing website, and reviewing Government Code, section 11517.
Q: What happens once the proposed decision is issued?
A: Upon receiving the proposed decision, the DCC Director, or their designee, has 100 days to decide whether to adopt the proposed decision, reject it, or make changes to it that don’t require rejection. If the Director or their designee rejects the proposed decision, DCC will send a notice of rejection to the applicant or licensee.
If the Director or their designee adopts the proposed decision, or makes changes to it that don’t require rejection, the proposed decision becomes a final decision, and the appellant can choose to appeal the final decision to the Cannabis Control Appeals Panel (CCAP).
CCAP only accepts appeals from annual commercial cannabis licensees and applicants that have been issued a final decision by DCC.
(Business and Professions Code section 26043)
Q: What is the Cannabis Control Appeals Panel (CCAP)?
A: CCAP is a government agency (a separate entity from DCC) that provides a fair, accessible, and timely resolution of appeals from DCC compliance and licensing decisions. CCAP is composed of five appointed members: three appointed by the Governor, one by the Senate Committee on Rules, and one by the Speaker of the Assembly.
To learn more about CCAP, visit the Cannabis Control Appeals Panel website.
Q: What is the process for appealing a final decision?
A: The applicant or licensee may appeal a final decision by filing a notice of appeal with the Cannabis Control Appeals Panel (CCAP). The notice of appeal must be received by CCAP within 30 days after the final day on which DCC may reconsider its decision. Provisional license revocations and suspensions cannot be appealed to CCAP.
Filing a notice of appeal with CCAP triggers an automatic stay of the final decision issued by DCC, meaning that the decision is not enforced while the appeal is pending. DCC may file a motion to vacate the automatic stay to attempt to prove that the stay would endanger public health, safety, or welfare.
To learn more about how to file an appeal, visit the CCAP’s website.
(California Code of Regulations, Title 16, section 6003)
Q: What are the possible outcomes of a CCAP hearing?
A CCAP hearing may be concluded in the following ways:
- the CCAP affirms DCC’s decision,
- the CCAP reverses DCC’s decision,
- the CCAP dismisses the appeal, or
- the CCAP remands the matter back to DCC for reconsideration
CCAP must issue its decision and final order within 90 days after the hearing has completed.
(Business and Professions Code, section 26044)
Q: Can the outcome of the Cannabis Control Appeals Panel (CCAP) hearing be appealed?
A: Yes, the applicant or licensee, or DCC, may appeal the CCAP decision to a California District Court of Appeal or California Supreme Court within 30 days of the CCAP decision. The Court of Appeal or the Supreme Court will review the record and render a decision.
(Business and Professions Code, section 26045)
Support
If you have questions about appealing a compliance or licensing action, please contact info@cannabis.ca.gov
Related Resources
Compliance with state law – Department of Cannabis Control
DCC regulations – Department of Cannabis Control
Embargoes: FAQ – Department of Cannabis Control
License denials, citations, and disciplinary actions – Department of Cannabis Control
