Chapter 3

APPLICABLE TO ALL LICENSED CANNABIS RETAILERS IN CALIFORNIA

Chapter 3 (Retailers) of the Bureau of Cannabis Control ("Bureau" or "BCC") Text of Regulations covers the compliance regulations specific to licensed cannabis retailers in California.

Chapter 3. Retailers | Table of Contents

§ 5400. Access to Retailer Premises.

§ 5400 (a) Access to the licensed premises of a retailer with only an A-designation shall be limited to
individuals who are at least 21 years of age.

§ 5400 (b) Access to the licensed premises of a retailer with only an M-designation shall be limited to
individuals who are at least 18 years of age and have a valid physician’s recommendation for
medicinal cannabis, and individuals who are at least 21 years of age.

§ 5400 (c) Access to the licensed premises of a retailer with both an A- designation and an Mdesignation may include persons identified in subsections (a) and (b) of this section.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070 and 26140, Business and Professions Code.

§ 5402. Customer Access to the Retail Area.

§ 5402 (a) Individuals shall be granted access to the retail area to purchase cannabis goods only after the retailer or an employee of the retailer has confirmed the individual’s age and identity pursuant to section 5404 of this division.

§ 5402 (b) The licensed retailer or at least one employee shall be physically present in the retail area at all times when individuals who are not employees of the licensed retailer are in the retail area.

§ 5402 (c) All sales of cannabis goods must take place within the retail area of the retailer’s licensed premises, except for cannabis goods sold through delivery, or a drive-in or drive-through window as authorized by section 5025(g) of this division.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070 and 26140, Business and Professions Code.

§ 5403. Hours of Operation.

A licensed retailer shall sell and deliver cannabis goods only between the hours of 6:00 a.m.
Pacific Time and 10:00 p.m. Pacific Time.

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

§ 5403.1 Requirements While Not Open for Business.

At any time the licensed premises is not open for retail sales, a licensed retailer shall ensure that: 

§ 5403.1 (a) The licensed premises is securely locked with commercial-grade, nonresidential door locks as required in section 5046 of this division;

§ 5403.1 (b) The licensed premises is equipped with an active alarm system pursuant to section 5047 of this division, which shall be activated when the licensed retailer or its employees are not on the licensed premises; and

§ 5403.1 (c) Only employees of the licensee and other authorized individuals are allowed access to the licensed premises. For the purposes of this section, authorized individuals include individuals employed by the licensee as well as any outside vendors, contractors, or other individuals conducting business that requires access to the licensed premises.

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

§ 5404. Retail Customers.

§ 5404 (a) A licensed retailer shall only sell adult-use cannabis goods to individuals who are at least 21 years of age after confirming the customer’s age and identity by inspecting a valid form of identification provided by the customer as required by subsection (c) of this section.

§ 5404 (b) A licensed retailer shall only sell medicinal cannabis goods to individuals who are at least 18 years of age and possesses a valid physician’s recommendation after confirming the customer’s age, identity, and physician’s recommendation as required by subsection (c) of this section.

§ 5404 (c) Acceptable forms of identification include the following:

(1) A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator’s license, that contains the name, date of birth, height, gender, and photo of the person;

(2) A valid identification card issued to a member of the Armed Forces that includes the person’s name, date of birth, and photo; or

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

§ 5405. Cannabis Goods Display.

§ 5405 (a) Cannabis goods for inspection and sale shall only be displayed in the retail area.

§ 5405 (b) Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection. The containers shall not be readily accessible to customers without assistance of retailer personnel. A container must be provided to the customer by the licensed retailer or its employees, who shall remain with the customer at all times that the container is being inspected by the customer.

§ 5405 (c) Cannabis goods removed from their packaging for display shall not be sold, shall not be consumed, and shall be destroyed pursuant to section 5054 of this division when the cannabis goods are no longer used for display.

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

§ 5406. Cannabis Goods for Sale.

A licensed retailer shall not make any cannabis goods available for sale or delivery to a customer unless:

§ 5406 (a) The cannabis goods were received by the retail licensee from a licensed distributor or licensed microbusiness authorized to engage in distribution;

§ 5406 (b) The licensed retailer has verified that the cannabis goods have not exceeded their bestby, sell-by, or expiration date if one is provided;

§ 5406 (c) In the case of manufactured cannabis products, the product complies with all requirements of Business and Professions Code section 26130 and California Code of Regulations, Title 3, Division 8 and Title 17, Division 1, Chapter 13;

§ 5406 (d) The cannabis goods have undergone laboratory testing as required by the Act and Chapter 6 of this division;

§ 5406 (e) The batch number is labeled on the package of cannabis goods and matches the batch number on the corresponding certificate of analysis for regulatory compliance testing;

§ 5406 (f) The packaging and labeling of the cannabis goods complies with Business and Professions Code Section 26120 and all applicable regulations within this division as well as California Code of Regulations, Title 3, Division 8 and Title 17, Division 1, Chapter 13; and

§ 5406 (g) The cannabis goods comply with all applicable requirements found in the Act and applicable regulations.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070 and 26120, Business and Professions Code.

§ 5407. Sale of Non-Cannabis Goods.

In addition to cannabis goods, a licensed retailer may sell only cannabis accessories and licensee’s branded merchandise. Licensed retailers may provide customers with promotional materials.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070, 26151 and 26152, Business and Professions Code.

§ 5408. Sale of Live Plants and Seeds.

The following include, but are not limited to, additional grounds that constitute a basis for disciplinary action:

§ 5408 (a) A licensed retailer shall only sell live, immature cannabis plants and cannabis seeds if all of the following requirements are met:

(1) The plant is not flowering;

(2) The plant or seed originated from a nursery that holds a valid license from the Department of Food and Agriculture or a licensed microbusiness authorized to engage in cultivation; and

§ 5408 (b) A licensed retailer may not sell any other live plants.

§ 5808 (c) A licensed retailer shall not apply nor use any pesticide, nor cause any pesticide to be
applied nor used, on live plants.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070 and 26100, Business and Professions Code.

§ 5409. Daily Limits.

§ 5809 (a) A licensed retailer shall not sell more than the following amounts to a single adultuse cannabis customer in a single day:

(1) 28.5 grams of non-concentrated cannabis.

(2) 8 grams of cannabis concentrate as defined in Business and Professions Code section 26001, including cannabis concentrate contained in cannabis products.

§ 5809 (b) A licensed retailer shall not sell more than the following amounts to a single medicinal cannabis patient, or to a patient’s primary caregiver purchasing medicinal cannabis on behalf of the patient, in a single day:

(1) 8 ounces of medicinal cannabis in the form of dried mature flowers or the plant
conversion as provided in Health and Safety Code section 11362.77.

§ 5809 (c) Notwithstanding subsection (b) of this section, if a medicinal cannabis patient’s valid physician’s recommendation contains a different amount than the limits listed in this section, the medicinal cannabis patient may purchase an amount of medicinal cannabis consistent with the patient’s needs as recommended by a physician and documented in the physician’s
recommendation.

§ 5809 (d) The limits provided in subsection (a) and subsection (b) of this section shall not be combined to allow a customer to purchase cannabis goods in excess of any of the limits provided in this section.

§ 5809 (e) For the purposes of this section, a licensed retailer shall be responsible for determining that the amount of cannabis concentrates found in manufactured cannabis products sold to customers comply with the requirements of this section.

Authority: Section 26013, Business and Professions Code.
Reference: Section 26012, Business and Professions Code; and Sections 11362.1 and 11362.77, Health and Safety Code.

§ 5410. Customer Return of Cannabis Goods.

§ 5410 (a) For the purposes of this section, “customer return” means a customer’s return of cannabis goods that were purchased from a licensed retailer, back to the licensed retailer the cannabis goods were purchased from.

§ 5410 (b) A licensed retailer may accept customer returns of cannabis goods that were previously
sold to a customer.

§ 5410 (c) A licensed retailer shall not resell cannabis goods that have been returned.

§ 5410 (d) A licensed retailer shall treat any cannabis goods abandoned on the licensed retailer premises as a customer return.

§ 5410 (e) Defective manufactured cannabis products returned by customers to a licensed retailer may be destroyed pursuant to section 5054 of this division, or returned to the licensed distributor from whom the cannabis goods were obtained in accordance with section 5053 of this division.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26011.5, 26012 and 26070, Business and Professions Code.

§ 5411. Free Cannabis Goods.

§ 5411 (a) A licensed retailer shall not provide free cannabis goods to any person. A licensed retailer shall not allow individuals who are not employed by the licensed retailer to provide free cannabis goods to any person on the licensed premises.

§ 5411 (b) Notwithstanding subsection (a) of this section, in order to provide access to medicinal cannabis patients who have difficulty accessing medicinal cannabis goods, a licensee who holds an M-Retailer license, an M-Retailer Non-storefront license, or an M-Microbusiness license that is authorized for retail sales may provide free medicinal cannabis goods if the
following criteria are met:

(1) Free cannabis goods are provided only to a medicinal cannabis patient or primary caregiver for the patient in possession of an identification card issued under Section 11362.71 of the Health and Safety Code.

(2) The cannabis goods comply with all applicable laboratory testing requirements under this division.

(3) Prior to being provided to the patient or primary caregiver, the cannabis goods have been properly recorded in the track and trace system as belonging to the licensed retailer.

(4) The cannabis goods shall not leave the licensed premises unless placed in a resealable child- resistant opaque package as required for purchased cannabis goods under Business and Professions Code section 26070.1.

(5) The cannabis goods shall be applied toward the daily purchase limit for a medicinal cannabis customer pursuant to section 5409 of this division.

§ 5411 (c) In addition to the provision of free cannabis goods in subsection (b) of this section, a licensee may donate cannabis goods and the use of equipment in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction. The licensee shall ensure that all cannabis goods provided pursuant to this subsection comply with
subsections (b)(2) and (b)(6) of this section.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26013, 26153, and 26160, Business and Professions Code.

§ 5412. Prohibition on Packaging and Labeling by a Retailer.

§ 5412 (a) A licensed retailer shall not accept, possess, or sell cannabis goods that are not packaged as they will be sold at final sale, in compliance with this division.

§ 5412 (b) A licensed retailer shall not package or label cannabis goods.

§ 5412 (c) Notwithstanding subsection (b) of this section, a licensed retailer may place a barcode or similar sticker on the packaging of cannabis goods to be used in inventory tracking. A barcode or similar sticker placed on the packaging of a cannabis goods shall not obscure any labels required by the Act or this division.

Authority: Section 26013, Business and Professions Code.
Reference: Section 26120, Business and Professions Code.

§ 5413. Cannabis Goods Packaging and Exit Packaging.

§ 5413 (a) All cannabis goods sold by a licensed retailer shall be in compliance with the packaging requirements.

§ 5413 (b) Beginning January 1, 2020, a package containing cannabis goods shall be resealable, tamper- evident, and child resistant.

§ 5413 (c) All cannabis goods purchased by a customer shall not leave the licensed retailer’s premises unless the goods are placed in an opaque exit package. 

§ 5413 (d) Notwithstanding subsections (a)—(c) of this section, immature plants and seeds sold by a licensed retailer are not required to be placed in resealable, tamper-evident, child resistant packaging.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070.1 and 26120, Business and Professions Code.

§ 5414. Non-Storefront Retailer.

§ 5414 (a) A non-storefront retailer licensee shall be authorized to conduct retail sales exclusively by delivery as defined in Business and Professions Code section 26001(p).

§ 5414 (b) A complete application for a non-storefront retailer license shall include all the information required in an application for a retailer license.

§ 5414 (c) A non-storefront retailer licensee shall comply with all the requirements applicable to retailer licensees, except for those provisions related to public access to the licensed premises and the retail area.

§ 5414 (d) The licensed premises of a non-storefront retailer licensee shall be closed to the public.

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

§ 5415. Delivery Employees.

§ 5415 (a) All deliveries of cannabis goods shall be performed by a delivery employee who is directly employed by a licensed retailer.

§ 5415 (b) Each delivery employee of a licensed retailer shall be at least 21 years of age.

§ 5415 (c) All deliveries of cannabis goods shall be made in person. A delivery of cannabis goods shall not be made through the use of an unmanned vehicle.

§ 5415 (d) The process of delivery begins when the delivery employee leaves the retailer’s licensed premises with the cannabis goods for delivery. The process of delivering ends when the delivery employee returns to the retailer’s licensed premises after delivering the cannabis goods, or attempting to deliver cannabis goods, to the customer(s). During the process of delivery, the licensed retailer’s delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops.

§ 5415 (e) A delivery employee of a licensed retailer shall, during deliveries, carry a copy of the retailer’s current license, the employee’s government-issued identification, and an identification badge provided by the employer pursuant to section 5043 of this division.

§ 5415 (f) Prior to providing cannabis goods to a delivery customer, a delivery employee shall confirm the identity and age of the delivery customer as required by section 5404 of this division and ensure that all cannabis goods sold comply with requirements of section 5413 of this division.

§ 5415 (g) A licensed retailer shall maintain an accurate list of the retailer’s delivery employees and shall provide the list to the Bureau upon request.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070 and 26090, Business and Professions Code.

§ 5415.1. Deliveries Facilitated by Technology Platforms.

§ 5415.1 (a) A licensed retailer or licensed microbusiness shall not sell or otherwise transfer any cannabis goods to a customer through the use of an unlicensed third party, intermediary business, broker, or any other business or entity.

§ 5415.1 (b) Notwithstanding subsection (a) of this section, a licensed retailer or licensed microbusiness may contract with a service that provides a technology platform to facilitate the sale and delivery of cannabis goods, in accordance with all of the following:

(1) The licensed retailer or licensed microbusiness does not allow for delivery of cannabis goods by the technology platform service provider.

(2) The licensed retailer or licensed microbusiness does not share in the profits of the sale of cannabis goods with the technology platform service provider, or otherwise provide for a percentage or portion of the cannabis goods sales to the technology platform service provider.

(3) The licensed retailer or licensed microbusiness shall not advertise or market cannabis goods in conjunction with the technology platform service provider, outside of the technology platform, and shall ensure that the technology platform service provider does not use the licensed retailer’s or licensed microbusiness’s license number or legal business name on any advertisement or marketing that primarily promotes the services of the technology platform.

(A) Any cannabis goods advertised or offered for sale on or through the technology platform shall disclose, at a minimum, the licensed retailer’s or licensed microbusiness’s legal business name and license number.

(5) All required sales invoices and receipts, including any receipts provided to the customer, shall disclose, at a minimum, the licensed retailer’s or licensed microbusiness’s legal business name and license number.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26001, 26070, 26090, 26151 and 26152, Business and Professions Code.

§ 5416. Delivery to a Physical Address.

§ 5416 (a) A delivery employee may only deliver cannabis goods to a physical address in
California.

§ 5416 (b) A delivery employee shall not leave the State of California while possessing cannabis
goods.

§ 5416 (c) A delivery employee shall not deliver cannabis goods to an address located on publicly
owned land or any address on land or in a building leased by a public agency. This
prohibition applies to land held in trust by the United States for a tribe or an individual
tribal member unless the delivery is authorized by and consistent with applicable tribal law.

§ 5416 (d) A delivery employee may deliver to any jurisdiction within the State of California
provided that such delivery is conducted in compliance with all delivery provisions of this
division.

§ 5416 (e) A delivery employee shall not deliver cannabis goods to a school providing instruction
in kindergarten or any grades 1 through 12, day care center, or youth center.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070 and 26090, Business and Professions Code.

§ 5417. Delivery Vehicle Requirements.

§ 5417 (a) A licensed retailer’s delivery employee, carrying cannabis goods for delivery, shall only travel in an enclosed motor vehicle. Any vehicle used in the delivery of cannabis goods shall be operated by a delivery employee of the licensee. A vehicle used in the delivery of cannabis goods shall not have any marking or other indications on the exterior of the vehicle that may
indicate that the delivery employee is carrying cannabis goods for delivery. Only the licensee or an employee of the retailer licensee for whom delivery is being performed shall be in the delivery vehicle.

§ 5417 (b) While carrying cannabis goods for delivery, a licensed retailer’s delivery employee shall ensure the cannabis goods are not visible to the public. Cannabis goods shall be locked in a fully enclosed box, container, or cage that is secured on the inside of the vehicle. No portion of the enclosed box, container, or cage shall be comprised of any part of the body of the vehicle or trailer. For purposes of this section, the inside of the vehicle includes the trunk.

§ 5417 (c) A licensed retailer’s delivery employee shall not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. Any cannabis goods left in an unattended vehicle must be stored in a container as required in subsection (b) of this section.

§ 5417 (d) A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee while engaged in delivery. A dedicated GPS device must be owned by the licensee and used for delivery only. The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. At all times, the licensed retailer shall be able to identify the geographic location of all delivery vehicles that are making deliveries for the licensed retailer and document the history of all locations traveled to by a delivery employee while engaged in delivery. A licensed retailer shall provide this information to the Bureau upon request. The history of all locations traveled to by a delivery employee while engaging in delivery shall be maintained by the licensee for a minimum of 90 days.

§ 5417 (e) Upon request, a licensed retailer shall provide the Bureau with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle’s make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information.

§ 5417 (f) Any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to inspection by the Bureau. Vehicles used to deliver cannabis goods may be stopped and inspected by the Bureau at any licensed premises or during delivery.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070 and 26090, Business and Professions Code.

§ 5418. Cannabis Goods Carried During Delivery

§ 5418 (a) A licensed retailer’s delivery employee shall not carry cannabis goods in the delivery vehicle with a value in excess of $5,000 at any time. The value of cannabis goods carried in the delivery vehicle for which a delivery order was not received and processed by the licensed retailer prior to the delivery employee departing from the licensed premises may not exceed $3,000.

§ 5418 (b) For the purposes of this section, the value of cannabis goods shall be determined using the current retail price of all cannabis goods carried by, or within the delivery vehicle of, the licensed retailer’s delivery employee.

§ 5418 (c) A delivery employee may only carry cannabis goods in the delivery vehicle and may only perform deliveries for one licensed retailer at a time. A delivery employee must depart and return to the same licensed premises before taking possession of any cannabis goods from another licensee to perform deliveries.

§ 5418 (d) A licensed retailer’s delivery employee shall not leave the licensed premises with cannabis goods without at least one delivery order that has already been received and processed by the licensed retailer.

§ 5418 (e) Before leaving the licensed premises, the licensed retailer’s delivery driver must have a delivery inventory ledger of all cannabis goods provided to the licensed retailer’s delivery driver. For each cannabis good, the delivery inventory ledger shall include the type of good, the brand, the retail value, the track and trace identifier, and the weight, volume or other accurate measure of the cannabis good. All cannabis goods prepared for an order that was received and processed by the licensed retailer prior to the delivery driver’s departure from the licensed premises must be clearly identified on the inventory ledger. After each customer delivery, the delivery inventory ledger must be updated to reflect the current inventory in possession of the licensed retailer’s delivery driver. Delivery inventory ledgers may be maintained electronically.

§ 5418 (f) The licensed retailer’s delivery driver shall maintain a log that includes all stops from the time the licensed retailer’s delivery driver leaves the licensed premises to the time that the licensed retailer’s delivery driver returns to the licensed premises, and the reason for each stop. The log shall be turned in to the licensed retailer when the licensed retailer’s delivery driver returns to the licensed premises. The licensed retailer must maintain the log as a commercial cannabis activity record as required by this division. The log may be maintained electronically. 

§ 5418 (g) Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the licensed retailer’s delivery driver electronically or in hard copy. The delivery request receipt provided to the licensed retailer’s delivery driver shall contain all of the information required in section 5420 of this division, except for the date and time the delivery was made, and the signature of the customer.

§ 5418 (h) Immediately upon request by the Bureau or any law enforcement officer, the licensed retailer’s delivery driver shall provide:

(1) All delivery inventory ledgers from the time the licensed retailer’s delivery driver left the licensed premises up to the time of the request;

(2) All delivery request receipts for cannabis goods carried by the driver, in the delivery vehicle, or any deliveries that have already been made to customers; and

§ 5418 (i) If a licensed retailer’s delivery driver does not have any delivery requests to be performed for a 30-minute period, the licensed retailer’s delivery driver shall not make any additional deliveries and shall return to the licensed premises. Required meal breaks shall not count toward the 30-minute period.

§ 5418 (j) Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to inventory and all necessary inventory and track-and-trace records shall be updated as appropriate that same day.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070, 26090 and 26160, Business and Professions Code.

§ 5419. Cannabis Consumption During Delivery.

A licensed retailer’s delivery employees shall not consume cannabis goods while delivering cannabis goods to customers.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070 and 26090, Business and Professions Code.

§ 5420. Delivery Request Receipt.

A licensed retailer shall prepare a hard copy or electronic delivery request receipt for each delivery of cannabis goods.

§ 5420 (a) The delivery request receipt shall contain the following:

(1) The name and address of the licensed retailer;

(2) The first name and employee number of the licensed retailer’s delivery employee who delivered the order;

(3) The first name and employee number of the licensed retailer’s employee who prepared the order for delivery;

(4) The first name of the customer and a licensed retailer-assigned customer number for the person who requested the delivery;

(5) The date and time the delivery request was made;

(6) The delivery address;

(7) A detailed description of all cannabis goods requested for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of all cannabis goods requested;

(8) The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and

(9) Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery. 

§ 5420 (b) At the time of the delivery, the delivery employee of the retailer shall provide the customer who placed the order with a hard or electronic copy of the delivery request receipt. The delivery employee shall retain a hard or electronic copy of the signed delivery request receipt for the licensed retailer’s records.

§ 5420 (c) For the purposes of this section, an employee number is a distinct number assigned by a licensed retailer to an employee that would allow the licensed retailer to identify the employee in documents or records using the employee number rather than the employee’s full name. A licensed retailer shall be able to identify the employee associated with each employee number upon request from the Bureau.

§ 5420 (d) For the purposes of this section, a customer number is a distinct number assigned by a licensed retailer to a customer that would allow the licensed retailer to identify the customer in documents or records using the customer number rather than the customer’s full name. A licensed retailer shall be able to identify the customer associated with each customer number upon request from the Bureau.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070, 26090 and 26160, Business and Professions Code.

§ 5421. Delivery Route.

While making deliveries of cannabis goods, a licensed retailer’s delivery employee shall only travel from the retailer’s licensed premises to the delivery address; from one delivery address to another delivery address; or from a delivery address back to the retailer’s licensed premises. A delivery employee of a licensed retailer shall not deviate from the delivery path described in this section, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable.

Authority: Section 26013, Business and Professions Code.
Reference: Sections 26070 and 26090, Business and Professions Code.

§ 5422. Receiving Shipments of Inventory.

§ 5422 (a) A licensed retailer shall receive a shipment of cannabis goods only from a licensed distributor or licensed microbusiness authorized to engage in distribution.

§ 5422 (b) A licensed retailer shall accept shipments of cannabis goods only between the hours of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time. 

§ 5422 (c) During business hours, shipments of cannabis goods shall not enter the licensed premises through an entrance or exit that is available for use by the public. 

§ 5422 (d) A licensed retailer whose licensed premises only has one entryway may be exempt from the requirements of subsection (c) of this section if the licensed retailer obtains authorization from the local jurisdiction explicitly authorizing this activity. The licensed retailer shall be required to provide this authorization to the Bureau upon request. For this section to apply, the licensed premises must physically have only one entryway and cannot have any other entryways. 

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

§ 5423. Inventory Documentation.

A licensed retailer shall maintain an accurate record of its inventory. A licensed retailer shall provide the Bureau with the record of inventory immediately upon request. A licensed retailer shall keep a record of the following information for all cannabis goods the licensed retailer has in its inventory:

§ 5423 (a) A description of each item such that the cannabis goods can easily be identified;

§ 5423 (b) An accurate measurement of the quantity of the item;

§ 5423 (c) The date and time the cannabis goods were received by the licensed retailer;

§ 5423 (d) The sell-by or expiration date provided on the package of cannabis goods, if any;

§ 5423 (e) The name and license number of the licensed distributor or licensed microbusiness that transported the cannabis goods to the licensed retailer; and

§ 5423 (f) The price the licensed retailer paid for the cannabis goods, including taxes, delivery costs, and any other costs.

Authority: Section 26013, Business and Professions Code.
Reference: Section 26160, Business and Professions Code.

§ 5424. Inventory Reconciliation.

§ 5424 (a) A licensed retailer shall be able to account for all of its inventory.

§ 5424 (b) In conducting an inventory reconciliation, a licensed retailer shall verify that the licensed retailer’s physical inventory is consistent with the licensed retailer’s records pertaining to inventory.

§ 5424 (c) The result of inventory reconciliation shall be retained in the licensed retailer’s records and shall be made available to the Bureau upon request.

§ 5424 (d) If a licensed retailer identifies any evidence of theft, diversion, or loss, the licensed retailer shall notify the Bureau and law enforcement pursuant to section 5036 of this division. (e) If a significant discrepancy as defined in section 5034 of this division is discovered between a licensed retailer’s physical inventory and the licensed retailer’s inventory records, the licensed retailer shall notify the Bureau and law enforcement pursuant to section 5036 of this division.

§ 5424 (e) If a significant discrepancy as defined in section 5034 of this division is discovered between a licensed retailer’s physical inventory and the licensed retailer’s inventory records, the licensed retailer shall notify the Bureau and law enforcement pursuant to section 5036 of this division.

Authority: Section 26013, Business and Professions Code.
Reference: Section 26160, Business and Professions Code. 

§ 5426. Records.

All licensed retailer-specific records in this chapter shall be maintained in accordance with section 5037 of this division.

Authority: Section 26013, Business and Professions Code.
Reference: Section 26160, Business and Professions Code.

§ 5427. Retailer Premises to Retailer Premises Transfer.

§ 5427 (a) A licensee who holds multiple retail licenses may arrange for the transfer of cannabis goods from one licensed retail premises to another licensed retail premises if both retail licenses are held under the same ownership.

§ 5427 (b) Cannabis goods transferred to a licensed retail premises under subsection (a) of this section may be sold by the licensed retailer receiving the cannabis goods only if the cannabis goods comply with all requirements found in the Act and this division.

§ 5427 (c) The transportation of cannabis goods under this section must comply with all requirements found within the Act and this division.

§ 5427 (d) Any movement of cannabis goods under this section shall be properly entered into the state track and trace system.

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

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