Providing Honest, Reliable Business Counsel For 29 Years

How to prepare for a regulatory investigation of your business

On Behalf of | May 17, 2023 | marijuana businesses

As a cannabis business owner, you may be aware of the additional scrutiny from enforcement and investigatory bodies. The time and resources that these investigations require from you can feel burdensome and impactful on your business. 

If you’ve been given notice that the Department of Cannabis Control is looking to undertake an audit or investigation, there are a few things you can do to prepare yourself as much as possible. 

Make sure you have the right documents in place

Step number one is always to make sure you do everything you can to ensure compliance. This includes making sure you have written policies and procedures and also checking with employees that they are following these properly.  

This can leave you with peace of mind that you’re doing everything correctly should you face an investigation. 

If you notice that you have an issue you can then take steps to rectify this proactively. If you’re asked to provide documents as part of the investigation and you have these ready, this can also help to speed it up and reduce the disruption caused to the operation of your business. 

Employee screening is important

As with any other business, you’ll want to make sure employees are screened during the hiring process and have evidence to provide that this took place. With cannabis businesses, this is arguably even more important due to the higher level of scrutiny you face. Keeping a record of employee issues such as disciplinaries will be integral if you’re looking to prove that the problems that have been reported lie with one individual rather than your business as a whole. 

In the event you’re facing an investigation, one of the best things you can do is to make sure you have legal guidance. You need someone on your side who understands the law and can walk you through the process.