Cannabis Retailing – Storefront – OffSite

Cannabis Retailing – Storefront – OffSite

Cannabis Retailing – Storefront – OffSite has significant restrictions on land use, control from county and local authorities, requires third-party security, and ability to restrict access to premises

Retail License Types
  • Retailer – sells cannabis goods to customers at its premises or by delivery. A retailer must have a licensed physical location (premises) where commercial cannabis activities are conducted.
  • Retailer (non-storefront): Sells and delivers cannabis goods to customers. A retailer (non-storefront) must have a licensed premises, but it is not open to the public.
Retail Premises
  • This is defined as a designated structure or structures and land specified in the application that is under the control of the applicant or licensee where the commercial cannabis activity will be conducted. These are the requirements:
  • Each premise must be licensed.
  • Only one licensee may occupy premises. However, a licensee that holds both an A-license and an M-license for the same commercial cannabis activity (e.g., retail sale) may have the same premises for both types.
  • A Premise Diagram that contains specific items must be provided.
  • Premises is not the same as a parcel of land or a property lot. A parcel of land may have more than one licensed premises on it held by one or more licensees.
  • There are strict sublet requirements.
  • Alcoholic beverages and tobacco products may not be sold on the same premises as cannabis goods.
  • Landowner consent
Requirements
  • A licensee with an A‐license and an M‐license may have the  same premises for both types
  • Sells and deliveries may only occur between 6:00 a.m. and 10:00 p.m. Pacific Time.
  • All cannabis goods must be placed in an opaque exit package  prior to leaving the premises
  • Deliveries may be made only by employees of the retailer.
  • Deliveries must be to a physical address
  • The delivery vehicle may not contain more than $3,000 of cannabis products at any time.
  • The retailer must be able to immediately locate all delivery vehicles.
  • There are specific limitations on advertising.

What must be contained in a premises diagram?

§ 5006. Premises Diagram (a) An applicant shall submit to the Bweau, with the applicarion, a complete and detailed diagram of the proposed premises. (b) The diagram shall show the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways, and shall include a brief statement or description of the principal activity to be conducted therein. (c) The diagram shall show and identify commercial cannabis activities that will take place in each area of the premises, and identify limited-access areas. (d) The diagram shall show where all cameras are located and assign a number to each camera for identification purposes. (e) The diagram sha11 be to scale. (fl The diagram shall not contain any highlighting and the markings on the diagram shall be in black-and-white print. (g) If the proposed premises consists of only a portion of a property, the diagram must be labeled indicating which part of the property is the proposed premises and what the remaining property is used for. (h) If the proposed premises will be a microbusiness that includes cultivation activities, in addition to the requirements of subsections (b) through (g), the premises diagram shall also include all the required information for a premises diagram under section 5501(d) of this division.

Authority: Section 26013, Business and Professions Code. Reference: Section 26051.5, Business and Professions Code.

What are Designation of Owner Requirements?

§ 5003. Designation of Owner (a)- All applicants for a commercial cannabis license shall have at a minimum one individual who meets the definition of “owner” under Business and Professions Code section 26001(al) and who will submit the information required of owners under section 5002. (b) “Owner” means any ofthe following: (1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. , (2) The chief executive officer of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit. (4) An individual who will be participating in the direction, control, or management of the person applying for a license. An owner who is an individual participating in the direction, control, or management of-the commercial cannabis business includes any of the following: (A) A general partner of a commercial cannabis business that is organized as a partnership. (B) Anon-member manager or managing member of a limited liability company of a commercial cannabis business that is organized as a limited liability company. (C) An officer or director of a commercial cannabis business that is organized as a corporation.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, 26012 and 26013, Business and Professions Code.

What are the advertising placement requirements?

§ 5040. Advertising Placement (~) Any advertising or marketing placed in broadcast, cable, radio, print, and digital communications shall only be displayed where at least 71.6 percent of the audience is reasonably expected to be 21 years of age or older, as determined byreliable up-to-date audience composition data. (b) Upon request, a licensee shall provide to the Bureau audience composition data as required in subsection (a) of this section for advertising or marketing placed by the licensee. This information .shall be provided to the Bureau within the time specified by the Bureau. (c) If the Bureau determines that audience composition data for advertising or marketing provided by a licensee does not comply with the requirements of subsection (a) of this section, ar the licensee fails to provide audience composition data to the Bureau within the time specified by the Bureau, the licensee shall remove the. advertising or marketing placement in question..

Authority: Section 26013, Business and Professions Code. Reference: Sections 26151 and 26152, Business and Professions Code……..

What are the security requirements?

§ 5042. Access to Limited-Access Areas Licensees shall ensure that any person on the licensed premises, except for employees and contractors of the licensee, are escorted at all times by the licensee or at least one employee of the licensee when in the limited-access areas of the premises. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5043. Licensee Employee Badge Requirement All agents, officers, or other persons acting for or employed by a licensee shall display a laminated or plastio-coated identification badge issued by the licensee at all rimes while engaging in commercial cannabis activiCy. The identification badge shall, at a minimum, include the licensee’s “doing business as” name and license number, the employee’s first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee’s face and that is at least 1 inch in width and,1.5 inches in height, Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5044. Video Surveillance System (a) Each licensed premises shall have a digital video surveillance system with a minimum camera resolution of 1280 x 720 pixels. (b) The surveillance-system storage device or the cameras shall be transmission control protocol (TCP) capable of being accessed through the Internet. (c) The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance. (d) Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the licensed premises, and allows for the clear and certain identification of any person and activities in all areas required to be filmed under subsection (e). (e) Areas that shall be recorded on the video surveillance sysCem include the following: (1) Areas where cannabis goods are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the premises; (2) Limited-access areas; (3) Security rooms; (4) Areas storing asurveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; and (5) Entrances and exits to the premises, which shall be recorded from both indoor and outdoor vantage points. (fl Retailers shall also record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial feahxres of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity. (g) Cameras shall record continuously 24 hours per day and at a minimum of 15 &amesper second (FPS). (h) The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering ar theft. (i) Surveillance recordings shall be kept for a minimum of 90 days. (j) Surveillance recordings are subject to inspection by the Bureau, and shall be kept in a manner that allows the Bureau to view and obtain copies of the recordings at the licensed premises immediately upon request. The licensee shall also send or otherwise provide copies of the recordings to the Bureau upon request within the time specified by the Bureau. (k) Recorded images shall clearly and accurately display the time and date. Time is to be measured in accordance with the United States National Institute Standards and Technology standards. (1) The video surveillance system shall be equipped with a failure notification system that provides notification to the licensee of any interruption or failure of the video surveillance system or video surveillance-system storage device. Authority: Section 26013, Business and Professions Code, Reference: Section 26070, Business and Professions Code. § 5045. SecuriTy Personnel A retail licensee or microbusiness licensee that is engaged in retail sale shall hire or contract for security personnel to provide security services for the licensed retail premises. All security personnel hired or contracted for by the licensee shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5046. Locks A licensee shall ensure that the limited-access areas described in section 5042 of this division can be securely locked using commercial-grade, nonresidential door locks. A licensee shall also use commercial-grade, nonresidential door locks on all points of entry and exit to the licensed premises. AuChority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5047. Alarm System (a) A licensee sha11 maintain an alarm system as defined in Business and Professions Code section 7590.1(n) at the licensed premises. (b) A licensee shall ensure a licensed alarm company operator ar one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system. (c) Upon request, a licensee shall make available to the Bureau all information related to the alann system, monitoring, and alarm activity.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.

What are rules regarding premises locations?

§ 5026. Premises Location (a) A premises licensed under this division shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, ar youth center that is in existence at the time the license is issued. (b) Notwithstanding subsection (a), if a local jurisdiction has issued a license or permit to conduct commercial cannabis activity at a premises that is located. within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center, the Bureau may approve the premises for licensure if the following condifions are met: (1) The applicant submits a copy of a valid license ar permit from the local jurisdiction with the application for licensure; and (2) The 1oGa1 jurisdiction notifies the Bureau that the applicant is in compliance with all applicable local ordinances and regulations pursuant to Business and Professions Code section 26055~g)(Z)~~)• (c) A premises sha11 noY be in a location that requires persons to pass through a business that sells alcohol or tobacco to access the licensed premises, or that requires persons to pass through the licensed premises to access a business that sells tobacco ar alcohol.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26051.5, 26054 and 26055, Business and Professions Code.

What are requirements for significant inventory discrepancy?

§ 5034. Significant Discrepancy in Inventory

(a) A significant discrepancy in inventory means a difference in actual inventory compared to records pertaining to the inventory of at least $5,000 or 2 percent of the average monthly sales of the licensee, whichever is less.

(b) For the purposes of this section, average monthly sales shall be calculated by taking a per month average of the total sales for the previous 6 months. If the licensee has not been in operation for at least b months, only the months in which the licensee was operating sha11 be used in determining average monthly sales.

(c) For the purposes of this section, the licensee’s acquisition price shall be used to determine the value of cannabis goods in a licensee’s inventory.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.

What are rules regarding subletting of premises?

§ 5028. Subletting of Premises A licensee shall not sublet any area designated as the licensed premises for the licensee’s commercial cannabis activity.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26070, Business and Professions Code

What are employee age restrictions?

§ 5031. Employee Age Restriction

A licensee shall not employ or retain persons under 21 years of age

Authority: Section 26013, Business and Professions Code. Reference: Section 26140, Business and Professions Code.

What are the rules regarding premises?

§ 5025. Premises

(a) Each license shall have a designated premises for the licensee’s commercial cannabis activity, which is subject to inspection by the Bureau.

(b) The Bureau may allow a licensee to have the same licensed premises for two separate commercial cannabis licenses if all of the following criteria are met:

(I) The licensee holds both an A-license and an M-license for the identical type of commercial cannabis activity;

(2) The licensee who holds both licenses is identical in name, business formation, and ownership;

(3) The licensee only conducts one type of commercial cannabis activity on the premises;

(4) All cannabis and cannabis products are clearly marked with an “A” or “M”; and

(5) Records art kept separately for each license and clearly indicate that the records are related to the A-license or the M-license.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26001 and 26053, Business and Professions Code.

What is the license posting requirement?

§ 5039. License. Posting Requirement Upon issuance of any license, the licensee shall prominently display the license on the licensed premises where it can be viewed by state and local agencies. If the licensed premises is open to the publiq the license shall be displayed in an area that is within plain sight of the public.

Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code.

What are requirements for transactions between licensees?

§ 5032. Commercial Cannabis Activity Between Licensees

The requirements – transactions among Commercial Licensees

(a) All commercial cannabis activity shall be conducted between licensees. Retail licensees may conduct commercial cannabis activity with customers in accordance with chapter 3 of this division.

(b) Beginning July 1, 2018, A-licensees shall only conduct business with A-licensees and M licenses shall only conduct business with M-licensees, except for testing laboratories.

Authority: Section 26013, Business and Professions Code: Reference: Sections 26001, 26013. and 26053, Business and Professions Code.

Bureau of Cannabis Control

Retail

What are notification requirements for Theft, Loss, and Criminal Activity?

§ 5036. Notification of Theft, Loss, and Criminal Activity

(a) A licensee shall notify the Bureau and local law enforcement within 24 hours of discovery of any of the following situations:

(1) The licensee discovers a significant discrepancy, as defined in section 5034 of this division, in its inventory.

(2) The licensee discovers diversion, the$, loss, or any other criminal activity pertaining to the operations of the licensee.

(3) The licensee discovers diversion, theft, loss, or any other criminal activity by an agent or employee of the licensee pertaining to the operations of the licensee.

(4) The licensee discovers loss or unauthorized alteration of records related to cannabis goods, customers, or the licensee’s employees or agents.

(5) The licensee discovers any other breach of security.

 (b) The notification Yo the Bureau pursuant to subsection (a) of this section shall be in writing and include the date and time of occurrence of the theft, loss, or criminal activity, the name of the local law enforcement agency that was notified, and a description of the incident including, where applicable, the items) that were taken or lost.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.

What are requirements for storage of inventory?

5033. Storage of Inventory

(a) A licensee shall not store cannabis goods outdoors.

(b) Employee’ break rooms, changing facilities, and bathrooms shall be separated from all storage areas.

(c) Each location where cannabis goods are stored must be separately licensed.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code.

What are the licensing provisions applicable to Distributors?

§ 5300. Non-Cannabis Distribution Acfivities A distributor shall not store non-cannabis goods or non-cannabis accessories that are to be sold to another party on any licensed premises. Additionally, a distributor shall not distribute noncannabis goods ornon-cannabis accessories at a licensed premises. For the purposes of this section, non-cannabis goods are any goods that do not meet the definition of cannabis goods as defined in section 5000(c) of this division.

Authority: Sections 26013, Business and Professions Gode. Reference: Section 26070, Business and Professions Code. § 5301. Storage-Only Services A distributor may provide cannabis goods storage-only services to a licensed cultivator, manufacturer, microbusiness, nonprofit, or another distributor, unrelated to the quality assurance and laboratory testing processes. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5302. Storage of Batches for Testing (a) A distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the distr-ibutor’s premises. (b) A distributor shall ensure a label with the following information is physically attached to each container of each batch: (1) The name and license number of the manufacturer or cultivator who provided the batch; (2) The date of entry into the distributor’s storage area; (3) The unique identifiers and batch number associaCed with the batch; (4) A description of the cannabis goods with enough detail to easily identify the batch; (5) The weight of or quantity of units in the batch; and (6), The best-by, sell-by, or expiration date, of the batch, if any. Authority: Section 26013, Business and Professions Code. Reference: Sections 261 l0 and. 26120, Business and Professions Code. § 5303. Packaging and Labeling (a) A distributor may package, re-package, label, and re-label cannabis for retail sale. (b) A distributor shall not package, re-package, label, or re-label manufactured cannabis products except when the distributor also holds a manufacturing license and is packaging, re-packaging, labeling, or re-labeling its own manufactured cannabis products. (c) Notwithstanding subsection (b) of this section, if it is deternuned during laboratory testing that a manufactured product is labeled with the incorrect amount of TAC per package or serving but is within the THC limits for sale, the distributor may re-label the package with the accurate THC amount. Authority: Section 26013, Business and Professions. Code. Reference: Sections 26013 and 26120, Business and Professions Code.

§ 5304. Testing Arrangements After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor’s licensed premises to select a representative sample for laboratory testing. Authority: Section 26013, Business and Professions Code. Reference: Sections 26110, Business and. Professions Code. § 5305. Testing Sample (a) The distributor shall ensure that the batch size from which the sample is taken meets the requirements ofthis division. (b) A distributor or an employee of the distributor shall bephysically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall enswe that the increments are taken from throughout the batch. (c) Tfie sampling shall be video recorded with the batch number stated at the.beginning of the video and a visible time and date indication on the video recording footage. The video recordings shall be maintained far 180 days. (d) After the sample has been selected, both the distributor and the laboratory employee shall sign and date the chain of custody form pursuant to section 5709 of this division, attesting to the sample selection having occurred. (e) A distributor shall not assist thelaboratory employee noriouch the cannabis goods ar the sampling equipment while the laboratory employee is obtaining the sample. Authority: Section 26013, Business and Professions Code. Reference: Sections 26104 and 26110, Business and Professions Code. § 5306. Laboratory Testing Results (a) A sample “passes” a laboratory test when the sample meets specifications in chapter 6 of this division. (b) When a batch from a manufactured or harvest batch passes, the cannabis goods maybe transported to one or more retailers. (c) A sample “fails” a laboratory test when the sample does not meet specifications in chapter 6 of this division. (d) If a failed sample was collected from a batch and the batch could be remediated pursuant to section 5727 of this division, a distributor may transport or arrange for the transportation of the batch to a cultivator or manufacturer. for remediation. (e) A distributor shall destroy a batch that failed laboratory testing and cannot be remediated pursuant to section 5727 of this division.

Authority: Secrion 26013, Business and Professions Code. Reference: Sections 26070, 26104 and 26110, Business and Professions Code. § 5307. Quality-Assurance Review When a distributor receives a certificate of analysis stating that the sample meets specifications required by law, the distributor shall ensure the following before transporting the cannabis goods to one or more retailers: (a) The certificate of analysis the distributor received from the testing laboratory is the certificate of analysis that corresponds to the batch; (b) The label on the cannabis goods is consistent with the certificate of analysis regarding cannabinoid content and contaminants required to be listed by law; (c) The packaging complies with applicable packaging laws including, but not limited to, Business and Professions Code section 26120; (d) The packaging is tamper-evident. “Tamper-evident’ means aone-time-use seal is affixed to the opening of the package, allowing a person to recognize whether or not the package. has been opened; (e) The weight or count of the cannabis batch comports with that in the track and trace system. A distributor sha11 use scales as required by the Act; and (fl All events prior to receipt have been entered into the track and Yrace system. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26110 …..and 26120, Business and Professions.Code. § 5308. Insurance Requirements (a) An applicant for a distributor license shall provide the Bureau with a certificate of insurance that shows the types of insurance coverage and minimum amounts that have been secured as required by this section, and documentation establishing compliance with subsection (d) of this section. (b) A distributor licensee shall aY all times carry and maintain commercial genexalliability insurance in the aggregate in an unount no less than $2,000,000 and in an amount no less than $1,000,000 for each loss. (c) A distributor licensee shall maintain the insurance required in subsection (b) from an insurance company that is: – (1) Anon-admitted insurer that meets the requirements of Insurance. Code section 1765.1 or 1765.2, and the insurance is placed pursuant to Insurance Code section 1763 and Yhrough a surplus line broker licensed under Insurance Code section 1765; (2) An insurer qualified to do business in California by the Secretary of State and authorized by the Insurance Commissioner to write the liability and property classes of insurance as defined by Insurance Code sections 102, ] 03, 107, 114, 108, and 120; or(3) A registered risk retention group compliant with the California Risk Retenrion Act of 1991: (See California Insurance Code sections 125-140.) (d) Admitted insurers and risk retention groups must show proof of capitalization in the amount of at least $10,000,000. (e) A distributor licensee shall notify the Bureau in writing within 10 calendar days of a lapse in insurance. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5309. Inventory Reconciliation (a) A distributor shall reconcile all inventories of cannabis goods at least once every 14 days. (b) A distributor shall keep an inventory log containing the following information for each batch: (1) The name and license number of the manufacturer or cultivator who provided the batch; (2) The date of entry into the distributor’s storage area; (3) The unique identifiers and batch number associated with the batch; (4) A description of the cannabis goods with enough detail to easily identify the batch; (5) The weight of or quantity of units in the batch; (6) The best-bg, sell-by, or expiration date of the batch, if any; and (7) Where on the premises the batch is kept. (c) If a distributor finds a discrepancy between the inventory of stock and the inventory log or track and trace system that is outside of normal weight loss caused by moisture loss, the distributor shall commence a full audit of the batch in which the discrepancy was found. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26160, Business and Professions Code. § 5310. Records (a) In addition to the records required by section 5037 of this division, a distributor shall maintain the following records: (1) Records relating to branding, packaging and labeling; (2) Inventory logs and records; (3) Transportation bills of lading and shipping manifests for completed transports and far cannabis goods in transit; (4) Vehicle and trailer ownership records;

(5) Quality-assurance records; (6) Records relating to destruction of cannabis goods; (7) Laboratory-testing records; (8) Warehouse receipts; (9) Records relaring to tax payments collected and paid under Sections 34011 and 34012 of the Revenue and Tax Code. Authority: Section 26013, Business and Professions Code. Reference: Sections 26110 and 26160, Business and Professions Code. § 5311. Requirements for the Transportation of Cannabis Goods The following requirements apply when transporting cannabis goods between licensees or licensed premises: (a) Transportation shall only be conducted by persons holding a distributor license under the Act, or employees of those persons. (b) All vehicles transporting cannabis goods for hire shall be required to have a motor carrier permit pursuant to Chapter 2 (commencing with Section 34620) of Division I4.85 of the Vehicle Code. (c) Transportation by means of aircraft, watercraft, drone, rail, human powered vehicle, and unmanned vehicle is prohibited. (d) Cannabis goods shall only be transported inside of a vehicle or trailer and shall not be visible or identifiable from outside of the vehicle or trailer. (e) Cannabis goods shall be locked in a box, container, or cage that is secured to the inside of the vehicle or trailer. (fl While left unattended, vehicles and trailers shall be locked and secured. (g) A distributar shall not leave a vehicle ar trailer containing cannabis goods unattended in a residential area or parked overnight in a residenfial area. (h) At a minimum, a distributor shall have a vehicle alarm system on all transport vehicles and trailers. Motion detectors, pressure switches, duress, panic, and hold-up alarms may also be used (i) Packages or containers holding cannabis goods shall not be tampered with, or opened, during transport. (j) A distributor transporting cannabis goods shall only travel between licensees shipping or receiving cannabis goods and its own licensed premises when engaged in the transportation of ..cannabis goods. The distributor may transport multiple shipments of cannabis goods at once in accordance with applicable laws. A distributor sha11 not deviate from the travel requirements described in this section, except for necessary rest, fuel, or vehicle repair stops.

(k) When a distributor holds both an A-license and an M-license, medicinal and adult-usa cannabis goods maybe transported in the same vehicle only if the cannabis goods are clearly identified and marked as “A” for adult-use cannabis goods, or “M” for medicinal cannabis goods both on the physical packaging of the cannabis goods and on the shipping manifest. While in transport, the medicinal and adult-use cannabis goods shall be placed in separate boxes or containers in the vehicle. Under no circumstances may non-cannabis goods, except for cannabis accessories as defined in Business and Professions Code section 26001(g), be transported with cannabis goods. (1) Vehicles and trailers transporting cannabis goods are subject to inspecrion by the Bureau at any licensed premises or during transport at any time. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code: § 5312. Required Transport Vehicle Information (a) In addition to the information required in section 5314 of this division, any distributor who will be or is transporting cannabis goods shall provide the following information to the Bureau: (1) Proo£of ownership or a valid lease for each vehicle and trailer used to transport cannabis goods; (2) The year, make, model, license plate number, and numerical Vehicle Identification Number (VIN) for each vehicle and trailer used to transport cannabis goods; and (3) Proof of insurance for each vehicle and trailer used to transport cannabis goods. (b) The distributor shall provide the Bureau with the information required by this section in writing for any new vehicle or trailer that will be used to transport cannabis goods prior to using the vehicle ar trailer to transport cannabis goods. (c) The distributor shall provide the Bureau with any changes to the information required by this section in writing within 30 calendar days: Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5313. Transport Personnel Requirements (a) No person under the age of 21 years old shall be in a commercial vehicle or trailer transporting cannabis goods; and (b) Only a licensee or an employee of the distributor sha11 be in a vehicle while transporting cannabis goods. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions. Code.:

§ 5314. Shipping Manifest (a) Prior to transporting cannabis goods, a distributor shall generate a shipping manifest through the track and trace system for the following activities: (1) Testing and sampling; (2) Sale of cannabis goods to a licensee; (3) Destruction or disposal of cannabis goods; and (4) Any other activity, as required pursuant to this division, or by any other licensing authority. (b) The distributor shall transmit the shipping manifest to the Bureau and the licensee that will receive the cannabis goods prior to transporting the cannabis goods. (c) The distributor shall ensure and verify that the cannabis goods being taken into possession for transport at the originating licensed premises are as described and accurately reflected in the shipping manifest. (1) The distributor sha11 not take into possession ar transport: (A) Any cannabis goods that are not on the shipping manifest; or (B) Any cannabis goods that aze less than or greater than the amount reflected on the slopping manifest. (2) The distributor is responsible for any discrepancies between the shipping manifest and the cannabis goods in its possession during transport, and subject to any enforcement or disciplinary action related to such discrepancy. (3) A distributor shall not void or change a shipping manifest after departing from the originating licensed premises. (d) A shipping manifest shall accompany every transport of cannabis goods. (e) Notwithstanding subsection (a) of this section, if a transportiu~ distributor has not obtained access to the track and trace system, the distributor shall complete the shipping manifest outside of the track and trace system and transmit it to the Bureau and the licensee receiving the shipment by electronic mail. (fl If the transporting distributor has access to the track and trace system and the licensee receiving the shipment has not obtained access to the track and tzace system, the distributor shall complete the shipping manifest in the track and trace system and transmit it to the Bureau. However, the distributor shall send a copy to the licensee receiving the shipment by electronic mail. Authority: Section 26013, Business and Professions Code. Reference: Sections 26067 and 26070, Business and Professions Code.

§ 5315. Distributor Transport Only License (a) A distributor transport only licensee shall be authorized Co engage in the transport of cannabis goods between licensees. (b) Notwithstanding subsection (a) of this ‘secrion, a distributor transport only licensee shall not be authorized to transport cannabis goods to the premises of a retailer, except when the licensee is transporting only immature plants and seeds from a licensed nursery to a licensed retailer. (c) A complete application for a distributar transport only license sha11 include all the information required in an application for a Type 11-Distributor license. (d) The licensing fee for a distributor transport only license will be based in parC upon whether the licensee intends to transport only cannabis goods that the licensee has cultivated ar manufactured (self-distribution), or whether the licensee intends to transport cannabis goods cultivated or manufactured by other licensees. (e) A distributor transport only licensee shall comply with all of the requirements for a holder of a Type 11-Distributor license, except for those related to quality assurance and testing. (fl A distributor transport only licensee shall not hold title to any cannabis goods unless the licensee also holds astate-issued cultivation, manufacturing, retailer, or microbusiness license.

(g) Holding a distributor transport only license shall not authorize a licensee to:

(1) Engage in the delivery of cannabis goods as defined in Business and Professions Code section 26001(p);

(2) Engage in the wholesale, destruction, packaging, labeling, or storing of cannabis goods; or

(3) Arrange for the testing of cannabis goods by a testing laboratory.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,.26013 and 26070, Business and Professions Code.

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