Annual inspections, audits, and reports

(a) Each medical cannabis production center and dispensary licensed pursuant to this part shall: (1) Be subject to an annual announced inspection and unlimited unannounced inspections of its operations by the department; provided that inspections for license renewals shall be unannounced; (2) Submit reports on at least a quarterly basis, or as otherwise required, and in the format specified by the department; and (3) Annually cause an independent financial audit, at the dispensary licensee's own expense, to be conducted of the dispensary, its production center, and retail dispensing locations and shall submit the audit's findings to the department. (b) The department shall report annually to the governor and the legislature on the establishment and regulation of medical cannabis production centers and dispensaries including but not limited to the number and location of production centers and dispensaries licensed, the total licensing fees collected, the total amount of taxes collected from production centers and dispensaries, and any licensing violations determined by the department.