§15039. License Posting Requirement.
(a) Upon issuance of 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 public, the license shall be displayed in an area that is within plain sight of the public.
(b) Upon issuance of any license, a retailer, whose licensed premises is open to the public, shall prominently display the Quick Response Code (QR Code) certificate issued by the Department so that it can be viewed and scanned from outside of the licensed premises.
(c) The QR Code certificate displayed by a licensee, as required by subsection (b), shall be posted in the front window of the licensed premises within three (3) feet of any public entrance to the licensed premises, or in a locked display case mounted on the outside wall of the licensed premises within three (3) feet of any public entrance to the licensed premises. The QR Code certificate shall be posted in a manner that is clearly visible from outside of the licensed premises to the public and all persons entering the premises.
(d) The QR Code certificate displayed by the licensee as required by subsection (b) shall comply with the following requirements:
- The QR Code certificate shall be printed on paper, glass, metal, or other material not less than 8.5 inches by 11 inches.
- The QR Code on the certificate posted, as required by this section, shall not be less than 3.75 inches by 3.75 inches.
- The QR Code on the certificate shall be of sufficient clarity that the code can be read by a smartphone or device capable of reading QR Codes from a distance of at least three (3) feet.
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26012 and 26053, Business and Professions Code.
§15040. Advertising Placement and Prohibitions.
(a) Any advertising or marketing, as defined in Business and Professions Code section 26150, that is placed in broadcast, cable, radio, print, and digital communications:
- Shall only be displayed after a licensee has obtained reliable up-to-date audience composition data demonstrating that at least 71.6 percent of the audience viewing the advertising or marketing is reasonably expected to be 21 years of age or older;
- Shall not use any depictions or images of minors or anyone under 21 years of age;
- Shall not use any images that are attractive to children, including, but not limited to:
- Cartoons;
- Any likeness to images, characters, or phrases that are popularly used to advertise to children;
- Any imitation of candy packaging or labeling; or
- The terms “candy” or “candies” or variants in spelling such as “kandy” or “kandeez.”
- Shall not advertise free cannabis goods or cannabis accessories. This includes promotions such as:
- Buy one product, get one product free;
- Free product with any donation; and
- Contests, sweepstakes, or raffles.
(b) In addition to the requirements for advertising and marketing in subsection (a), all outdoor signs, including billboards, shall:
- Be affixed to a building or permanent structure; and
- Comply with the provisions of the Outdoor Advertising Act, commencing with section 5200 of the Business and Professions Code, if applicable.
(c) For the purposes of this section, “reliable up-to-date audience composition data” means data regarding the age and location demographics of the audience viewing a particular advertising or marketing medium. “Reliable up-to-date audience composition data” does not include data from the most recent United States decennial or special census, or the annual population estimate for California counties published by the Demographic Research Unit, State Department of Finance.
(d) Immediately upon request, a licensee shall provide to the Department audience composition data as required in subsection (a) for advertising or marketing placed by the licensee.
(e) If the Department determines that audience composition data for advertising or marketing provided by a licensee does not comply with the requirements of subsection (a), or the licensee fails to provide audience composition data to the Department upon request, the licensee shall remove the advertising or marketing placement in question.
(f) In construing and enforcing the advertising provisions of the Act and this division, any action, omission, or failure of an advertising agent, representative, or contractor retained by the licensee shall in every case be deemed the act, omission, or failure of the licensee.
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26151 and 26152, Business and Professions Code.
§15040.1. Marketing Cannabis Goods as Alcoholic Products.
Licensees shall not market, advertise, sell or transport cannabis goods that are labeled as beer, wine, liquor, spirits, or any other term used to describe a type of alcohol or alcoholic beverage that may create a misleading impression that the product is an alcoholic beverage as defined in division 9 of the Business and Professions Code. Nothing in this section shall be interpreted as prohibiting a company or brand name associated with alcoholic beverages from appearing on cannabis goods or in marketing and advertisements for cannabis goods provided the cannabis goods do not create a misleading impression that the product is an alcoholic beverage.
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26054, 26151 and 26152, Business and Professions Code.
§15040.2. Prohibited Business Promotions.
(a) A licensee shall not give away any amount of cannabis or cannabis products, or any cannabis accessory, as part of a business promotion.
(b) A licensee shall not hold a raffle or sweepstakes as part of a business promotion.
Authority: Section 26013, Business and Professions Code.
Reference: Section 26153, Business and Professions Code.
§15041. Age Confirmation in Advertising.
(a) Prior to any advertising or marketing from the licensee involving direct, individualized communication or dialogue, the licensee shall use age affirmation to verify that the recipient is 21 years of age or older.
(b) For the purposes of this section, direct, individualized communication or dialogue may occur through any form of communication, including in-person, telephone, physical mail, or electronic.
(c) A method of age verification is not necessary for a communication if the licensee can verify that the licensee has previously had the intended recipient undergo a method of age affirmation and the licensee is reasonably certain that the communication will only be received by the intended recipient.
(d) A licensee shall use a method of age affirmation before having a potential customer added to a mailing list, subscribe, or otherwise consent to receiving direct, individualized communication or dialogue controlled by a licensee.
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26151 and 26152, Business and Professions Code.
§15041.1. Branded Merchandise.
(a) “Branded merchandise” means non-consumable consumer goods utilized by a licensee for advertising and marketing purposes. Examples of branded merchandise include clothing, bags, pens, keychains, mugs, water bottles, lanyards, stickers, pins, and posters. “Branded merchandise” does not include items containing cannabis or any items that are considered food as defined by Health and Safety Code section 109935.
(b) Branded merchandise shall identify the licensee responsible for its content by displaying the licensee’s license number in a manner that is permanently affixed to the merchandise, legible, and clearly visible from the outside of the merchandise.
(c) Branded merchandise shall not be designed in any manner that is attractive to children as specified in section 15040(a)(3).
Authority: Section 26013, Business and Professions Code.
Reference: Sections 26013 and 26152, Business and Professions Code.
§15041.2. Trade Samples.
(a) For the purposes of this division, “trade sample” means a limited amount of cannabis or cannabis product that has been designated by a licensee to be provided to the licensee’s employees or other licensees for the purposes of targeted advertising and product education.
(b) Cannabis or cannabis products that have been designated as trade samples may be provided from one licensee to another licensee for the purpose of providing the recipient licensee with product information to aid in making purchasing decisions about new or existing cannabis or cannabis products.
(c) Mature plants shall not be designated as trade samples. Immature plants, seeds and propagated material shall only be designated or provided to licensees as trade samples by licensed nurseries.
Authority: Sections 26013 and 26153.1, Business and Professions Code.
Reference: Section 26153.1, Business and Professions Code.
§15041.3. Designating Trade Samples.
(a) Licensees shall designate cannabis and cannabis products as trade samples through the track and trace system.
(b) At the time of designation as a trade sample, cannabis or cannabis products must be in the possession of the licensee making the designation.
(c) Once cannabis or cannabis products have been designated as a trade sample, the designation cannot be changed, unless the designation is changed to medicinal donation pursuant to section 15411 by the licensee originally designating the cannabis or cannabis products as a trade sample.
(d) After laboratory testing, cannabis and cannabis products that have been designated as trade samples may be transferred to a licensee’s employees or other licensees in accordance with section 15041.4.
Authority: Sections 26013 and 26153.1, Business and Professions Code.
Reference: Section 26153.1, Business and Professions Code.
§15041.4. Providing Trade Samples.
(a) Cannabis or cannabis products that have been designated as trade samples may be provided to any licensee except licensed cannabis event organizers, distributor transport only licensees, and testing laboratory licensees.
(b) The following licensees may designate and provide trade samples to their own employees and other licensees:
- Cultivators;
- Manufacturers;
- Distributors; and
- Microbusinesses authorized to engage in cultivation, manufacturing, or distribution.
(c) Notwithstanding subsection (b), licensed nurseries may only provide trade samples to licensed cultivators and may not provide trade samples to their own employees.
(d) The following licenses shall not designate or provide trade samples to other licensees:
- Retailers;
- Cannabis event organizers;
- Distributor transport only licensees; and
- Testing laboratories.
(e) Licensed retailers may designate and provide trade samples to their own employees for product education but shall not provide them to another licensee as specified in subsection (d).
(f) Cannabis and cannabis products designated as trade samples may not be provided:
- For any payment or consideration;
- Without adhering to sales and excise tax requirements, if any;
- To employees as compensation;
- To an unlicensed person, including retail customers; or
- For a cost.
(g) The transfer from one licensee to another of cannabis and cannabis products designated as a trade sample must be recorded in the track and trace system.
(h) A licensee may provide cannabis and cannabis products that have been received from another licensee as a trade sample to an employee for that employee’s inspection or consumption.
(i) Cannabis and cannabis products provided to employees as trade samples must be properly recorded in the track and trace system. The transaction shall be recorded as a package adjustment when provided to the employee. The adjustment note must include the name or licensee-assigned employee number of the employee and the date and time the cannabis and cannabis products were provided to the employee.
(j) Cannabis and cannabis products provided to employees as trade samples shall not be sold, given away, or otherwise transferred by the employee to any person.
Authority: Sections 26013 and 26153.1, Business and Professions Code.
Reference: Section 26153.1, Business and Professions Code.
§15041.5. Requirements for Trade Samples.
(a) In addition to the requirements of section 15041.3(d), cannabis and cannabis products provided to another licensee as a trade sample must be packaged and labeled in accordance with the packaging and labeling requirements found in the Act and this division for cannabis and cannabis products sold at retail.
(b) Cannabis and cannabis products provided to another licensee as a trade sample must comply with all laboratory testing requirements applicable to cannabis and cannabis products sold at retail, except for immature plants, seeds, and propagated material.
(c) All trade samples must be labeled with the following: “TRADE SAMPLE. NOT FOR RESALE OR DONATION.”
(d) After laboratory testing, cannabis and cannabis products designated as trade samples must remain in the packaging until provided to a licensee’s employee for inspection or consumption and must not be opened, resealed, or repackaged in any way.
(e) Transportation of cannabis and cannabis products designated as trade samples must be conducted in accordance with the transportation requirements in the Act and this division. Any licensee authorized to engage in distribution activities may transport trade samples.
(f) Notwithstanding subsection (e), an employee of a licensee authorized to engage in transportation may transport cannabis and cannabis products designated as trade samples in a vehicle that is not registered to the licensee and shall not be required to comply with the requirements of section 15311(g). Employees transporting cannabis and cannabis products under this subsection shall not transport an amount of cannabis or cannabis products that exceeds the possession limits established in section 11357 of the Health and Safety Code.
(g) Licensees who receive immature plants, seeds, and propagated material as trade samples shall not sell, give away, or distribute cannabis derived from the cultivated trade sample.
Authority: Sections 26013 and 26153.1, Business and Professions Code.
Reference: Section 26153.1, Business and Professions Code.
§15041.6. Consumption of Trade Samples.
(a) All consumption of cannabis and cannabis products provided as a trade sample must comply with all laws regarding the consumption of cannabis and cannabis products.
(b) Cannabis and cannabis products provided to employees as trade samples shall not be consumed by employees who are engaging in the transportation of cannabis and cannabis products, delivery of cannabis and cannabis products, any activity that requires the operation of a motor vehicle, or any activity that requires the use of heavy machinery, solvents, or asphyxiants.
(c) Cannabis trade samples provided to a licensee or their employees that are not consumed must be destroyed in accordance with the requirements of the Act and this division.
Authority: Sections 26013 and 26153.1, Business and Professions Code.
Reference: Section 26153.1, Business and Professions Code.
§15041.7. Trade Sample Limits.
(a) A licensee is limited to designating the following aggregate amounts of cannabis and cannabis products as trade samples in a calendar month period:
- For cannabis in the form of dried flower, a total of two pounds.
- For manufactured and nonmanufactured cannabis products, a total of 900 individual units.
- For seeds, immature plants, and other propagated material, 18 seeds, 12 seedlings, and 8 cuttings or tissue cultures, per strain.
(b) Licensees authorized to provide trade samples may provide trade samples to multiple employees or recipient licensees.
(c) A licensee is limited to providing the following aggregate amounts of cannabis and cannabis products as trade samples to each recipient licensee in a calendar month period:
- For cannabis in the form of dried flower, five (5) grams per strain and no more than six (6) strains to each recipient licensee.
- For manufactured and nonmanufactured cannabis products, five (5) individual units, as packaged for retail sale, per cannabis product line and no more than six (6) individual cannabis product lines to each recipient licensee.
- For seeds, immature plants, and other propagated material, no more than six (6) strains to each recipient licensee.
(d) A licensee is limited to providing no more than one (1) individual cannabis and cannabis product line to each recipient employee in a calendar month period.
(e) The limits provided in subsection (c) apply to the transfer of cannabis trade samples from one licensee to each recipient licensee and do not limit the total amount of cannabis trade samples that a licensed distributor may transport.
Authority: Sections 26013 and 26153.1, Business and Professions Code.
Reference: Section 26153.1, Business and Professions Code.