2024-105 Department of Cannabis Control
Unclear Rules and Insufficient Enforcement Hamper Its Ability to Identify Packaging That Is Attractive to Children
Published: August 7, 2025
Audit Recommendations Disclosure
When an audit is completed and a report is issued, auditees must provide the State Auditor with information regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year. Additionally, Senate Bill 1452 (Chapter 452, Statutes of 2006), requires auditees who have not implemented recommendations after one year, to report to us and to the Legislature why they have not implemented them or to state when they intend to implement them. Below is a listing of each recommendation the State Auditor made in the report referenced and a link to the most recent response from the auditee addressing their progress in implementing the recommendation and the State Auditor’s assessment of auditee’s response based on our review of the supporting documentation.
Recommendations to the Legislature
Recommendation 1
To ensure that cannabis products’ packaging is not attractive to children, the Legislature should consider requiring DCC to develop a process, similar to Oregon’s, requiring cannabis licensees to use pre-approved plain packaging or, for a fee, have DCC review their packaging for compliance before their cannabis products are available for sale.
Agency response status:
As of 10/6/25, the Legislature has not taken any action in the 2025/26 Legislative Session to address this specific recommendation.
Recommendation 2
To increase the likelihood that DCC will identify packages that are attractive to children, the Legislature should consider increasing the specificity of prohibited design elements, such as–but not limited to–certain fonts and colors, images implying flavor, and images of human and nonhuman creatures.
Agency response status:
As of 10/6/25, the Legislature has not taken any action in the 2025/26 Legislative Session to address this specific recommendation.
Recommendation 3
To ensure that cannabis beverage consumers can properly identify a single serving, the Legislature should consider the following:
- Require easy understanding and measurement of serving sizes, such as through an included measuring device, in a manner similar to Washington State.
- Establish a cap on the amount of THC in one cannabis beverage container to 10 mg.
Agency response status:
As of 10/6/25, the Legislature has not taken any action in the 2025/26 Legislative Session to address this specific recommendation.
Recommendation 4
To reduce the risk of cannabis appealing to minors through the use of flavors that mask the natural flavor and aroma of cannabis, the Legislature should consider banning specific flavors that are attractive to children in inhaled cannabis products and to prohibit the advertising of such flavors.
Agency response status:
As of 10/6/25, the Legislature has not taken any action in the 2025/26 Legislative Session to address this specific recommendation.
Recommendation 5
To ensure that the names of cannabis strains are not attractive to children, the Legislature should consider prohibiting the advertising of cannabis strain names that could be attractive to children.
Agency response status:
As of 10/6/25, the Legislature has not taken any action in the 2025/26 Legislative Session to address this specific recommendation.
Recommendations to the California Dept. of Cannabis Control
Recommendation 6
To ensure that DCC consistently identifies attractive cannabis packages, by August 2026 DCC should complete implementation of a rubric for determining whether products violate legal prohibitions against packaging attractive to children. The rubric should clearly describe prohibited design elements, and DCC should make the rubric available to licensees as well as to the public. DCC should also include the rubric in its regulations.
Agency response status:
Not fully implemented
Date of implementation:
Fall 2026
State Auditor assessment status:
Pending
60-Day Agency Response
The Department is working on the development of tools to more consistently identify and enforce against packages that violate current statutory prohibitions. This includes development of a technological tool to support staff in taking actions that are more consistent. The Department is willing to work with the Legislature on clarifying design elements and would implement the proposed rubric in regulation based on the direction provided by the Legislature.
6-Month Agency Response
DCC reiterates its willingness to work with the Legislature to increase the specificity of prohibited design elements and, to date, has been engaged in such conversations. Aligned with this recommendation’s goal, to ensure DCC consistently identifies violative packaging, DCC completed the development of its internal-facing Cannabis Product Image Analyzer tool in November 2025. This tool is used as a supplemental resource when conducting desk reviews involving compliance matters related to potential violations of legal prohibitions against packaging attractive to children. The tool assists Compliance Division staff by flagging potential youth-attractive products and packaging when analyzing a given image. All resulting outputs are subsequently reviewed and subjected to quality assurance by staff with final product determinations ultimately made through human assessment and group determination of all review elements. DCC continues to explore additional ways this tool can be adapted and utilized to support the department’s compliance efforts.
1-Year Agency Response
Since DCC’s previous update, the department has continued to advance multiple initiatives aligned with this recommendation.
DCC has continued working closely Assemblymember Jacqui Irwin’s office on legislation that would substantially increase the specificity of the statutory standard governing content attractive to children. If enacted, these amendments would establish the clear statutory framework necessary to support the development of public-facing compliance guidance and regulatory implementation consistent with the State Auditor’s recommendation. DCC will continue collaborating with the Legislature as this proposal moves through the legislative process.
Building on the internal Cannabis Product Image analyzer developed in 2025, DCC has adapted the tool for external use to provide licensees with an educational resource that helps identify packaging and labeling features that may not be compliant with California’s current restrictions on content attractive to children. The tool is intended to improve transparency and promote voluntary compliance by providing advisory feedback prior to product submission or distribution.
Recommendation 7
To prevent repeat offenses, DCC should specify guidelines by February 2026 regarding escalation of compliance actions and should ensure that all inspections and complaints included a review of previous actions issued. For example, DCC should specify the number of repeat offenses required before DCC issues a citation.
Agency response status:
Not fully implemented
Date of implementation:
Summer 2026
State Auditor assessment status:
Pending
60-Day Agency Response
DCC’s Compliance Division is currently establishing formal policies and procedures requiring that all inspection or investigation case files clearly document a licensee’s entire compliance history to ensure that it is appropriately considered when pursuing a specific form of discipline.
However, DCC is mindful of the need to balance its commitment to progressive discipline with the need for flexibility in tailoring compliance actions to protect the public. DCC’s system of progressive discipline allows the department to align disciplinary actions with both the severity of the violation and the licensee’s prior compliance history. To ensure consistency and transparency, DCC staff reviews compliance data already available in CLS and CLEaR and is adapting its CLEaR licensing systems to enable its staff to produce summary reports detailing a given licensee’s entire prior compliance history.
6-Month Agency Response
DCC’s Compliance Division has drafted revised procedural documents standardizing the preparation of inspection case files and is currently developing similar procedural documents standardizing the preparation of investigation case files. These procedural documents require staff to identify and document all related prior compliance actions involving the subject of the inspection or investigation to ensure DCC fully considers the subject’s previous compliance history when potentially pursuing further disciplinary action within its existing progressive discipline framework. DCC expects these procedural documents to be finalized by Spring 2026.
As of October 2025, DCC’s Compliance Division has begun conducting proactive field inspections at retail licensees through its Quality Assurance Sampling Program. Furthermore, as of November 2025, DCC has completed modification of its CLEaR licensing system allowing the department to produce summary reports for a given licensee’s compliance history. DCC is currently developing procedural guidance documents standardizing the incorporation and use of these reports within the department’s broader compliance efforts. DCC is confident these procedural enhancements will assist the department in identifying additional repeat offenders.
1-Year Agency Response
DCC’s Compliance Division completed development of procedural documents standardizing the preparation of inspection case files in June 2026. It is currently developing similar procedural documents standardizing the preparation of investigation case files and expects this guidance to be finalized in Summer 2026. These procedural documents allow staff to better identify, and document all related prior compliance actions involving the subject of the inspection or investigation to ensure DCC fully considers the subject’s previous compliance history before potentially pursuing further disciplinary action within its existing progressive discipline framework. Additionally, DCC’s CLEaR licensing system can now produce summary reports of a given licensee’s compliance history. DCC continues to develop procedural guidance documents standardizing the use of these reports within the department’s broader compliance efforts. DCC expects these procedural documents to be finalized by Summer 2026.
To effectively communicate its goals with internal and external stakeholders, by August 2026 DCC should include specific performance metrics related to its goals and objectives in its next strategic plan.
Agency response status:
Not fully implemented
Date of implementation:
Summer 2026
State Auditor assessment status:
Pending
60-Day Agency Response
As of September 2025, DCC’s Executive Office has begun the early stages of developing the next strategic plan, which is anticipated to be released by August 2026. The strategic plan’s goals will be supported by key performance indicators (KPIs) and will include metrics to assess the performance of those goals and objectives.
6-Month Agency Response
DCC’s Executive Office continues the development of its next departmental strategic plan, which is still anticipated to be released by August 2026. The Department remains committed to ensuring that the goals of its latest strategic plan will be supported by key performance indicators (KPIs) and metrics to assess the performance of those goals and objectives.
1-Year Agency Response
DCC’s new five-year strategic plan was presented to the Cannabis Advisory Committee in June 2026 and was communicated to internal and external stakeholders in mid-July 2026 to coincide with DCC’s five-year anniversary. DCC Divisions continue to develop key performance indicators (KPIs) aligned with the strategies identified within the Strategic Plan to measure and monitor progress towards meeting those goals. The development of these KPIs is expected to be completed in August 2026.
