Keenan M. Jones and Mia L. Garcia Offer Guidance on Self-Disclosing Cannabis Compliance Issues with Regulators

In a recent article in Frantz Ward’s Full-spectrum Wisdom column with Cannabis Business Times, Keenan M. Jones and Mia L. Garcia shared best practices and highlighted pitfalls in self-reporting compliance violations to cannabis industry regulators.

Their article, “Cultivating Compliance: Self-Reporting Incidents to Regulators,” emphasizes that covering up or downplaying a violation is often worse than the original issue. By voluntarily disclosing incidents and violations, cannabis organizations can build trust with regulators and the public.

Keenan and Mia identified the following mistakes cannabis operators often make when an infraction occurs:

• Waiting too long to investigate and report incidents.
• Downplaying or underreporting issues to avoid large penalties.
• Failing to document incidents and responses thoroughly.

To respond appropriately to compliance violations, Keenan and Mia recommend teams to:

• Develop a clear written procedure to follow when a reportable incident occurs.
• Coach their team to respond with the proper procedures.
• Meet with legal and compliance advisers before an incident ever occurs, and as needed, soon after an occurrence to properly carry out disclosure and minimize liability.
• Understand that an investigation and penalty may occur despite a self-disclosure.

To learn more about how to properly self-disclose compliance violations within your cannabis business, read the full Full-spectrum Wisdom column here.

Keenan represents businesses of all sizes in litigation matters, corporate formation, business development, and protection of intellectual property rights. Since 2017, he has focused his practice on assisting companies operating in the regulated cannabis space, including hemp, marijuana, and ancillary endeavors.

With a focus on complex regulatory frameworks, Mia advises clients on navigating the nuances of cannabis regulation, licensing, and operational issues. She represents operators in the medical and adult-use cannabis markets and in the hemp industry, supporting license acquisition, regulatory dispute resolution, zoning and municipal law, and mergers and acquisitions.

Cannabis Business Times is a publication that focuses on the business of legal cannabis for medical and adult use. They aim to provide timely information to help the reader make informed decisions about running their cannabis businesses and advancing their careers in the cannabis market.