California Cannabis Business Compliance Review

Our vision is to build a professional, trusted network of compliant cannabis companies across California.

The Cannabis industry has historically been associated with black market drug deals, backyard growers, and inconsistent product quality ultimately linked back to a lack of long-term visionary companies seeking to align themselves legally. We’re here to change that.

Complimentary Business Compliance Assessments

Currently, we are offering free initial compliance assessments of cannabis businesses. We will review your Cannabis business from a legal perspective by a licensed California attorney according to applicable California Laws and define what steps you need to take to become more compliant.

We invite everyone involved in the industry to get reviewed. Including commercial cannabis parties whether they are interested as a cultivator, manufacturer, distributor, laboratory, retailer, event planner, or a microbusiness (niche market and unrelated to actual cannabis transactions).

Investment Funds Now Available for TWI Cannabis Business Compliance Partners!

At the Weed Initiate we offer the opportunity for our TWI Cannabis Business Compliance Partners to connect with qualified investors and funds. Whether you are already compliant, in the process, or looking to create a new cannabis business compliant with California laws, TWI is here to connect you. Please start by requesting a business compliance review.

We require that all current and future Cannabis business owners undergo the TWI cannabis business compliance process to ensure our investor’s safety and mitigate the risk to TWI investors. Sign up for free!

There are now investment funds available for our TWI Cannabis Business Compliance Partners. View our cannabis investment opportunities

Featured Compliance for California Cannabis Companies

These businesses share our vision and the never ending mission tread the right path of cannabis compliance for local and California laws.

After extensive work, screening, and talking we’ve gradually sifted through those looking to make a quick buck anyway they can and discovered those few looking towards the future. Reviewing these partners, we find their products to be high end, they are taking steps to ensure they are in full compliance, and they are also seeking to network and partner with those sharing the TWI vision.

Why Are We Offering a Free Compliance Review?

One of the most difficult issues facing Weed Initiates is how to join the Cannabis Business Community and work with legally compliant people. Everyone says their product is “Fire” or “Top Tier.” Every business will tell you they are doing it “legally,” or are taking the steps to be compliant.

At TWI, we quickly discovered that finding trustworthy cannabis business partners is extremely rare in the California Cannabis industry. A good indicator is whether a California Cannabis Business is willing to spend the time and effort to comply with California laws. However, this requires long term planning, vision, diligence, and ethical business standards. Then we realized, most companies can’t afford a cannabis compliance review or even begin the process.

So at TWI we decided to completely remove this expense so that all California Cannabis Businesses could afford Cannabis Compliance.

We invite and welcome any Cultivators, Manufacturers, Distributors, Retailers, Microbusiness, Testing Laboratories to get a TWI Compliance Review of their business and what they need to do to become fully compliant. We also will help our Weed Initiates connect with legal Cannabis businesses seeking their expertise. This includes white labeling, sources for flower and trim, distribution, laboratories, extractors, processors, storage, cultivators, and more.

If you are interested in entering into the legal cannabis world, lets see if we can help grow together and help everyone succeed!

How Can TWI Help Your Business Succeed?

Whether you want to get into the cultivation, manufacturing, processing, distribution. or the retail part of the cannabis business, TWI is here to direct you to potential partnerships and connect you with the right people. We urge you to take a submit an application to our TWI compliance review to see how our compliance partners are striving to be at the forefront of legalized cannabis compliance.

TWI also invites experienced cultivators, extractors, trimmers, and other cannabis related experts to sign up as a cannabis business owner so we can help connect you to our TWI California Cannabis Compliance Businesses.

At TWI, we’ll help find out what your goals are, what type of business you want to own or maybe you already have 90% of your business in motion and just need someone you can trust is doing everything legally to label your product. Maybe you want to purchase a turnkey investment and are a complete Weed Initiate to the Cannabis business community; or maybe you don’t know what you want to do and just see what options there are. At TWI, we encourage you to join the legal cannabis compliance companies in creating a safe and reliable cannabis industry in California.

How Can I Learn The Business Laws?

Contact us for business specific laws or read more about our compilation of California recreational cannabis laws.

On December 7, 2017, California adopted emergency orders also known as SB-94 which clarified and streamlined many of the problems plaguing the legal industry for Cannabis Business Owners. The full text can be found here on the Bureau of Cannabis Control website.

While we could simply copy and paste from other sites, our goal isn’t to simply regurgitate something you can simply find on the California government’s website. Instead, it is TWI’s understanding and performing TWI compliance review for our Cannabis Compliance partners that we offer. Like we’ve said above – right now its FREE.

Contact us today to let TWI help you join the legally compliant cannabis industry. The Weed Initiate is providing a FAQ list here for our Cannabis Compliance Partners that we think are relevant and pressing for the Cannabis Compliance industry as a whole. If you would like something answered from a legal perspective, feel free to ask!

Frequently Asked Questions on MAUCRSA

MAUCRSA brought in 148 pages of new laws that affect the Cannabis Business Compliance industry. We know you have a lot of questions and we’re answering the big questions for you here according to the feedback we receive. If you would like to see anything answered, submit an inquiry and we’ll get back to you with an answer to your legal compliance questions!


Without California Cannabis Business Compliance and operating without a license, you face a financial fine equal to three times the value of the license you should have had per BPC 26038(a). Moreover, every day you operate without a license is considered one violation. To make matters a bit more painful, the Court can order that all of your cannabis can be destroyed at your own cost and expense.

California Business and Professions Code Section 26038(a) A person engaging in commercial cannabis activity without a license required by this division shall be subject to civil penalties of up to three times the amount of the license fee for each violation, and the court may order the destruction of cannabis associated with that violation in accordance with Section 11479 of the Health and Safety Code. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section by a licensing authority shall be deposited into the General Fund except as provided in subdivision (b). A violator shall be responsible for the cost of the destruction of cannabis associated with his or her violation.


If you have not undergone Cannabis Business Compliance and are operating without a license, ALL criminal penalties apply to you according to BPC 26038(c). The State of California views you as a black market dealer and you will be treated as such. For example, one of the worst penalties you can do is to process cannabis using volatile solvents. Under HSC 11379-6(a) you could face up to 7 years of jail AND a $50,000 penalty.

California Business and Professions Code Section 26038(c) Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person engaging in commercial cannabis activity in violation of this division.


As a California Cannabis Business if you do not pay your taxes, whether you are licensed or not, you’ll have to pay 1.5 times the amount of taxes you should have paid. In addition, your license can be immediately revoked. If they find out you have been evading taxes, they can seize everything you own.

California Revenue and Taxation Code 34013(e) Any person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code who fails to pay the taxes imposed under this part shall, in addition to owing the taxes not paid, be subject to a penalty of at least one-half the amount of the taxes not paid, and shall be subject to having its license revoked pursuant to Section 26031 of the Business and Professions Code.


California permits certain officers to check everywhere inside a California Cannabis Business once every 24 hours. They can check everywhere in your business and try to find out what you are trying to hide evidence of non-payment of taxes.

California Revenue and Taxation Code 34016(a)(2) Inspections may be at any place at which cannabis or cannabis products are sold to purchasers, cultivated, or stored, or at any site where evidence of activities involving evasion of tax may be discovered. (3) Inspections shall be conducted no more than once in a 24-hour period.


Refusing a lawful peace officer who has the right to inspect your California Cannabis Business can result in a $5,000 fine, a misdemeanor, and up to one year in county jail.

California Revenue and Taxation Code 34016(b) Any person who fails or refuses to allow an inspection shall be guilty of a misdemeanor. Each offense shall be punished by a fine not to exceed five thousand dollars ($5,000), or imprisonment not exceeding one year in a county jail, or both the fine and imprisonment. The court shall order any fines assessed be deposited in the California Cannabis Tax Fund.