What Happens After an Inspection

Guidance for licensees on what to expect and how to respond when deficiencies are found during an inspection.

The following page contains information on:

  • Statements of Findings and how violations are classified
  • Corrective Action Plans and response timelines
  • Notices of Pleading and the disciplinary process

Statement of Findings

After an inspection, the Office may issue a Statement of Findings. This standardized template can be delivered on-site, by email, or by mail at the Office’s discretion. It will include: 

  • Observed or evidenced findings
  • Applicable regulatory or statutory references, with a Critical vs. Non-Critical assessment
  • Mandatory follow-up actions 

Licensees will also receive a template that can be used to create Corrective Action Plans in compliance with Part 133. 

 

What are the Critical vs. Non-Critical Categories? 
Critical Violations 
  • Category 1: Immediate and severe threat to public health, safety, or welfare.
  • Category 2: Severe threat to public health, safety, or welfare.
  • Category 3: Potential threat to public health, safety, or welfare.

Non-Critical Violations
  • Category 4: Creates conditions that may lead to abuses of regulations governing cannabis cultivation, processing, production, distribution, sale, or delivery.
  • Category 5: Disrupts the orderly operation of a regulated business or prevent compliance with applicable regulations. 

Corrective Action Plan

What is a Corrective Action Plan?

A Corrective Action Plan is a licensee’s written response to a Statement of Findings (SOF). Each finding, or deficiency, listed in the SOF must have its own corrective action plan, which must explain: 

  • How the deficiency will be corrected, and
  • How the licensee will prevent it from happening again. 

A plan can only be implemented once it receives written approval from the Office. 

 

When is a Corrective Action Plan Due?
  • For Critical Findings (Category 1, 2, or 3): Initial response is due in 24 hours.
  • For Non-Critical Findings (Category 4 or 5): Response is due within 15 calendar days.

 

What Happens if a Corrective Action Plan is Not Implemented?

If a licensee fails to comply with §133.5(f), each failure will be considered a separate violation. Penalties may include: 

  • Suspension, cancellation, or revocation of the license
  • Civil penalties or fines
  • Stop work orders
  • Permanent debarment from doing business with any cannabis licensee
  • Any other penalty allowed under the Cannabis Law 

Repeated violations or failure to carry out corrective action plans will result in a Notice of Pleading and fines. 

Notice of Pleading

In some cases, the Office may issue a Notice of Pleading (NOP), which begins a disciplinary proceeding against a licensee. Like a Statement of Findings (SOF), an NOP can be served on-site, by email, or by mail at the Office’s discretion. 

 

What is a Notice of Pleading?

A Notice of Pleading (NOP) a formal statement of charges that outlines the violations a licensee or permittee is accused of and includes the factual and legal bases supporting OCM’s disciplinary proceeding. It includes: 

  • The charges against the licensee/permittee
  • The maximum penalties the Office may seek
  • An offered (reduced) penalty, if applicable
  • An option for the licensee to request reconsideration of the charges 
     
What Happens if a Licensee Receives an NOP? 
  1. 30 Days to Respond: Once a NOP is issued, the licensee has 30 days to return the completed NOP form to the Office.
  2. Choose a Response: On the form, the licensee may:
    1. Request reconsideration of the decision
    2. Plead “no contest”
    3. Plead “conditional no contest”
    4. Offer a settlement payment to the Office
    5. Request a hearing
  3. Office Review: The Office decides whether to accept the plea or settlement offer.
  4. Next Steps if Rejected: If the settlement offer is not accepted, the licensee must either request a hearing or proceed with a plea.
  5. Hearing Scheduled: The Office of Administrative Hearings will then schedule a conference or hearing. 

Contact Compliance

To contact the Compliance team, email [email protected]. 

  • In the subject line, include your entity name (with DBA if applicable) and your license number.  
  • In the body of the email, provide your inspector’s name, list any questions you have, and include as much detail as possible. If your inspector is unavailable, your message will be forwarded to a field supervisor for review and response.