Department of Cannabis Control

CALIFORNIA STATE AUDITOR Report 2024-105 | August 2025 Table 1 DCC Uses Different Actions to Encourage Licensee Compliance NUMBER ISSUED IN COMPLIANCE ACTION FISCAL YEAR 2023–24 Letter of Warning: Issued to a licensee when the department has direct or indirect evidence 280 that the licensee is violating statutes or regulations. DCC uses the document to warn licensees that they will face disciplinary action if they continue with activities that violate statutes or regulations. Notice to Comply (NTC): Issued to the licensee to address violations identified during an 1,505 inspection or investigation. These notices can require that a licensee provide the department with a written corrective action plan to address violations. The department develops a timeline for which a licensee must correct any identified violations. Citation: Issued to notice and document a violation and can contain monetary fines, 64 abatement orders, or both. The citation can be used independently or in conjunction with an embargo, suspension, or other compliance action. DCC generally uses citations in cases where the licensee has not corrected deficiencies within the time frame DCC specified in its NTC. Embargo: A tool DCC uses to prevent the movement or disposal of cannabis and cannabis 293 products while an investigation is underway. When DCC places an embargo, the department only needs to have probable cause to believe the cannabis or cannabis products placed under embargo are adulterated or misbranded or the sale would otherwise be in violation of state law or regulations. Voluntary Condemnation and Destruction: A licensee or owner of the cannabis or cannabis 99 product (product owner) voluntarily chooses to destroy cannabis and/or cannabis products that are subject to an embargo. Mandatory Recall: A DCC action requiring the licensee to remove cannabis or cannabis 16 products from the commercial supply chain. License Suspension: A DCC action barring a licensee from engaging in the cannabis market 125 until the suspension ends. License Revocation: A DCC action barring a licensee from engaging in the cannabis market. 51 Source: State law and DCC’s 2024 Annual Report.