Inside a California Cannabis OAH Hearing: What Actually Happens in the Room

If your California cannabis license is on the line in front of an Administrative Law Judge at the Office of Administrative Hearings, the proceeding will be unlike anything you have experienced in a courtroom. Here is a plain-English walkthrough of what actually happens — and where the case is usually won or lost.

The Forum. OAH is a quasi-judicial state agency that conducts administrative hearings for dozens of California licensing boards, including the Department of Cannabis Control. Cannabis matters are heard by Administrative Law Judges who hear similar cases daily. The forum is not a jury trial. There is no jury. The ALJ controls the procedure, the schedule, and the evidence.

Pre-Hearing Procedure. Once the Accusation is filed and a Notice of Defense is timely submitted, OAH typically schedules a prehearing conference. Issues addressed at the prehearing include the hearing date, expected duration, witness lists, exhibit exchange, motion practice, and settlement posture. The vast majority of matters settle at or around the prehearing conference. The hearing date itself is the back-up plan.

Discovery. Administrative discovery is narrower than civil discovery. Under Government Code section 11507.6, each party can request from the other documents intended to be used at the hearing, names of witnesses, and any statements of those witnesses. Depositions are available in limited circumstances, but they are not the default. Most discovery is paper, and most discovery is exchanged in the weeks before the hearing.

The Department’s Case. At the hearing, the Department goes first. Its witnesses are usually special investigators who interviewed the licensee, inspected the premises, or reviewed the records. The Department introduces its exhibits — inspection reports, photographs, METRC printouts, audit findings, prior NOVs — and lays the foundation through its witnesses. Cross-examination of the Department’s witnesses is where many cases are made or lost.

The Licensee’s Case. Once the Department rests, the licensee puts on its defense. The defense usually combines factual evidence (the actual events did not happen the way the Department says they did) and legal evidence (even if the events happened, they do not amount to the violation charged). Owners, managers, compliance personnel, and outside experts (testing labs, security consultants, accountants) are the typical witnesses. Documentary exhibits matter — SOPs, training records, METRC histories, third-party testing results, prior compliance correspondence.

Burden of Proof. When revocation of a license is on the table, the Department’s burden is clear and convincing evidence. For lesser discipline, the burden is preponderance of the evidence. The rules of evidence are relaxed; hearsay is generally admissible to supplement other evidence but cannot, by itself, support a finding.

Post-Hearing. After the hearing concludes, the parties typically submit post-hearing briefs. The ALJ then issues a Proposed Decision — written findings of fact, conclusions of law, and proposed discipline. The Proposed Decision is sent to DCC, which can adopt it, adopt it with non-substantive changes, decrease the discipline, or non-adopt and decide the matter itself on the existing record. Once a Final Decision is issued, administrative remedies are exhausted and any further challenge moves to Superior Court via a petition for writ of administrative mandamus.

What Decides Cases. Three things consistently move OAH cases: the quality of the licensee’s documentary record (SOPs, training, METRC, testing); the credibility of the licensee’s witnesses on cross-examination; and the precision of the legal theory — whether the alleged conduct actually fits the regulation the Department is charging. Specialized cannabis counsel matters most at the third one.

Bottom Line. An OAH hearing is not a courtroom drama. It is a structured proceeding decided on documents and direct testimony, in front of a judge who has seen the same fact patterns repeatedly. The matters that come out best for licensees are the ones that are prepared like a regulatory audit, not a personal injury trial. If you are heading toward an OAH hearing, or you have just received an Accusation and need to decide whether to settle or fight, submit your matter through the intake form and we will respond within one business day. — Steve S. Baghoomian, Esq.