An Overview Of What My Inspection Checklist Would Look Like if I Were a DEA Inspector

By Ryan Kocot, cannabis attorney licensed in CA, NY & MA. DEA registration and federal compliance for state-licensed cannabis operators.

The short answer: most inspection prep is written from the operator’s side of the table. So, I put together the opposite document: a high-level overview of the checklist I would carry if I were the inspector entering a state-licensed cannabis operation that applied for federal registration. To be clear about the method, this is informed inference, not a leaked manual. I do not have inside knowledge of DEA’s playbook. But regulated-industry inspections follow patterns. The whole thing is below: all eight stops in the order I would work them. I hope that this role reversal will help licensees identify gaps in the compliance program.

Phase One: Before The Inspection

Before I set foot on a licensee’s premises, my inspection would begin with a review of the licensee’s registration application, with particular emphasis on the entities and individuals listed as owners. Doing so would allow an inspector to answer two key questions: does the paper match the premises, and does the paper match the people? Specifically, I’d look up the licensee’s state license to confirm:

• it’s in good standing,
• whether any disclosed ownership matches the information submitted in the registration application, and
• whether it matches the activities requested in the registration application.

Operator Takeaway: Your application sets the stage for your inspection. By the time an inspector is in your lobby, they likely will already have reviewed your application; the visit tests whether reality matches what you filed. So the “before” phase belongs to you too: reread your application and ensure it’s consistent with your state filings.

Phase Two: during the inspection, on site

First Contact

Operators shouldn’t undervalue the importance of a good first impression. If I were a DEA inspector, my first contact with a licensee’s staff may influence how I view the rest of the inspection. This may seem subtle, but its importance cannot be overstated. Here are things I’d be looking for as an inspector:

• Is there confusion at the door, or is there a clear protocol in place for inspections?
• Are all necessary permits and licenses displayed?

Operator Takeaway: The first data point gets collected before a single record is pulled: does this operation know what to do when an inspector shows up? I’d imagine it would become increasingly more difficult to remain objective during the substantive portion of the investigation if the inspector’s answer to the question is “no.”

Records

I’d want to see the following records as a DEA inspector:

• Receiving, distribution, dispensing, and inventory records for the federal channel
• Inventory reconciliation records: they exist, they are dated, etc.
• Theft, loss, and general criminal activity reporting: a procedure exists, staff knows it, and reportable events were actually reported.
• Security SOPs: who can enter storage, and who authorized them
• Are all federal, state, and local tax records accessible and up to date?
• The channel question for mixed operators: can you SHOW which product and records are the medical channel?

Operator Takeaway: Documents that surface in minutes tell the inspector you have your house in order. Twenty minutes of clicking through folders is not a violation, but the longer you take, the more likely you are to lose the room.

The Floor Walk

This is what I’d be looking for on the floor:

• Storage and security controls match what the application described
• Limited-access areas limited IN PRACTICE
• Product physically located where the records say it is

Operator Takeaway: Anything visible that contradicts the documents the inspector either reviewed in advance or has on hand is a problem.

The Count

Inventory reconciliation is intentionally mentioned twice in this phase. Here’s what I’d hone in on as an inspector:

• Physical count of a sample against the virtual count
• Reconciliation cadence: when was the last one, who did it, and where is the log

Operator Takeaway: A physical-versus-virtual inventory (“ghost weight”) gap with no reconciliation log reads as a possible diversion or inversion indicator. This may be the greatest exposure a licensee has during the inspection depending on the cause of the discrepancy.

Interviews

This is where I’d test whether a business has truly implemented its SOPs, and whether staff is trained on them.

• Front-line staff asked what THEY do, in their own words, against the SOP and against each other.
• The ownership question: who owns this company? Does the answer match the state file and the federal application?

Operator Takeaway: Inspectors interview your staff, not your compliance binder. This is where SOPs put together simply to get through an application can catch up. Answers, records, and floor reality have to agree.

Phase three: after the inspection

The visit ends, but the inspector’s evaluation likely does not. Back at the desk, if I were a federal inspector, I would be cross-checking before anything gets written:

• State track-and-trace posture against federal-channel records: one consistent story?
• Entity and ownership consistency across the state file, the federal application, and what staff said on the floor
• Tax, premises, or local signals that contradict the registered picture

And then a key decision: is this a routine visit that ends, or one that escalates? Here are some of the dividing lines I’d think about:

• Records that do not exist, cannot be found, or appear freshly created
• Unexplained inventory gaps with no reconciliation history
• Nobody responsible: no named person for security, records, or reporting
• Evasion where explanation was available

Operator Takeaway: Expect follow-up requests generated by whatever the visit surfaced. Ideally, every response is attorney-reviewed before it goes out, is consistent with your application and state filings, and is on time. Prompt and accurate explanation, never obstruction, and counsel involved the moment questions leave operations.

How to use this

It may sound corny, but pick one person in your organization to act as a DEA Inspector and conduct a mock inspection. Have them walk your operation through all three phases on a normal day when nothing is at stake. Anything you cannot answer confidently is a gap to address.

Kocot Law advises state-licensed cannabis operators on DEA registration and federal compliance in California, New York, and Massachusetts. This article is attorney advertising and general information, not legal advice; reading it does not create an attorney-client relationship.