The Bureau of Cannabis Control (“BCC” or “Bureau”)–one of the three main regulatory bodies governing the commercial cannabis industry in California–is responsible for licensing retailers, distributors, testing laboratories, microbusinesses, and temporary cannabis events.
The Bureau of Cannabis Control licensees must abide by various regulations, including notification requirements that require licensees to contact the Bureau in the event of a triggering action. It can be difficult to comb through the regulations to find the most important requirements, so we compiled a simplified reference list for licensees to ensure a compliant cannabis operation.
Bureau of Cannabis Control 24-Hour Notifications
In this post, we’ll cover the specific triggers for the 24 hour notification requirements in the BCC Regulations. A licensee must notify the Bureau within 24 hours:
1. When a significant discrepancy in inventory is discovered. §5036(a)(1).
As per §5034(a), a significant discrepancy in inventory means a difference in actual inventory compared to records pertaining to inventory of at least 3% of the average monthly sales of the licensee.
In addition to notifying the Bureau within 24 hours, the licensee must also notify local law enforcement of the discrepancy in inventory.
2. When a discovery of diversion, theft, loss, or any other criminal activity pertaining to the operations of the licensee. §5036(a)(2).
Along with notifying with Bureau, a licensee must also notify local law enforcement of the discovery of theft, loss, or other criminal activity pertaining to operation.
3. When a discovery of diversion, theft, loss, or any other criminal activity by an agent or employee of the licensee pertaining to the operations of the licensee. §5036(a)(3).
Again, similar to the above instances, along with notifying with Bureau, a licensee must also notify local law enforcement of diversion, theft, loss, or other criminal activity by an agent or employee of the licensee.
4. When a discovery of the loss or unauthorized alteration of records related to cannabis goods, customers, or the licensee’s employees or agents. §5036(a)(4)
Along with notifying with Bureau, a licensee must also notify local law enforcement of the loss or unauthorized alteration of records related to cannabis goods, customers, or the licensee’s employees or agents.
5. When the licensee discovers any other breach of security. §5036(a)(5)
Any “other breach of security” is intentionally broad. Consult a local cannabis industry compliance attorney to determine whether your potential security breach should be escalated and reported to the Bureau.
6. When the licensee moves cannabis goods due to a disaster pursuant to §5038(h)(2).
A “disaster”, as defined by the Bureau in §5038(f), refers to a condition of extreme peril to the safety of persons and property within the state or a country, city and county, or city caused by conditions like the following for which for which the Governor has proclaimed a state of emergency, or for which a local governing body has proclaimed a local emergency.
- Air pollution
- Tidal wave
- Sudden and severe energy shortage
- Plant or animal infestation or disease
- Governor’s warning of an earthquake or volcanic prediction
- Similar public calamity (other than conditions resulting from a labor controversy)
Pursuant to §5036(a), if a licensee is unable to comply with any licensing requirements due to a disaster, the licensee may notify the Bureau of this inability to comply and request relief from the specific licensing requirement.
However, notwithstanding §5036(a), if a licensee needs to move cannabis goods stored on the licensed premises to another location immediately to prevent loss, theft, or degradation of the cannabis goods from the disaster, the licensee may move the cannabis goods without obtaining prior approval from the Bureau if, among other qualifying conditions, the licensee notifies the Bureau in writing, by submitting the Notification and Request Form, BCC-LIC-027 (New 10/18), that the cannabis goods have been moved and that the licensee is requesting relief from complying with specific licensing requirements pursuant to §5036(a) within 24 hours of moving the cannabis goods.
7. When the licensee discovers that their Notice of Suspension or Notice of Revocation has been removed or damaged to the extent it is illegible. §5811(e), §5812(f)
Per §5811, if the licensee receives a Notice of Suspension from the BCC, the licensee must display the notice conspicuously and continuously display the notice on the exterior of the licensee’s premises for the duration of the suspension. Similarly, pursuant to §5812, if a licensee receives a Notice of Revocation, the licensee must conspicuously display the notice on the exterior of the premises for at least 15 days. These notification requirements ensure that these notices are displayed clearly during the required duration.
A licensee shall notify the Bureau, by submitting Notification and Request Form, BCC-LIC-027 (New 10/18), incorporated herein by reference, within 24 hours of discovering that the notice of suspension or revocation has been removed or damaged to an extent that makes the notice illegible.
How to Notify the Bureau of Cannabis Control
As per §5036(b), if a licensee experiences one of the above listed events, the licensee should notify the BCC by submitting a Notification and Request Form, BCC-LIC-027 (New 10/18). The following relevant information must be included:
- 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 item(s) that were taken or lost.
Licensees need to be familiar with the Bureau of Cannabis Control’s notification requirements. Familiarity with the regulations can help licensees maintain compliance by notifying the Bureau within the specified time-frame in case of a triggering event. If you need help submitting a notification (or determining the necessity of submitting a notification) please contact the cannabis industry regulatory compliance attorneys at Rogoway Law Group.