26070.
(a) State licenses to be issued by the bureau related to the sale and distribution of cannabis and cannabis products are as follows:(1) “Retailer,” for the retail sale and delivery of cannabis or cannabis products to customers. A retailer shall have a licensed premises that is a physical location from which commercial cannabis activities are conducted. A retailer’s premises may be closed to the public. A retailer may conduct sales exclusively by delivery.
(2) “Distributor,” for the distribution of cannabis and cannabis products. A distributor licensee shall be bonded and insured at a minimum level established by the licensing authority.
(3) (A) “Microbusiness,” for the cultivation of cannabis on an area less than 10,000 square feet and to act as a licensed distributor, Level 1 manufacturer, and retailer under this division, provided the licensee can demonstrate compliance with all requirements imposed by this division on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the licensee engages in those activities. Microbusiness licenses that authorize cultivation of cannabis shall include the license conditions described in subdivision (b) of Section 26060.1.
(B) In coordination with each other, the licensing authorities shall establish a process by which an applicant for a microbusiness license can demonstrate compliance with all the requirements under this division for the activities that will be conducted under the license.
(C) The bureau may enter into interagency agreements with licensing authorities to implement and enforce the provisions of this division related to microbusinesses. The costs of activities carried out by the licensing authorities, as requested by the bureau pursuant to the interagency agreement, shall be calculated into the application and licensing fees collected pursuant to this division, and shall provide for reimbursement to state agencies for associated costs as provided for in the interagency agreement.
(b) The bureau shall establish minimum security and transportation safety requirements for the commercial distribution and delivery of cannabis and cannabis products. Except as provided in subdivision (d) of Section 26110, the transportation of cannabis and cannabis products shall only be conducted by persons holding a distributor license under this division or employees of those persons. Transportation safety standards established by the bureau shall include, but not be limited to, minimum standards governing the types of vehicles in which cannabis and cannabis products may be distributed and delivered and minimum qualifications for persons eligible to operate those vehicles.
(c) The driver of a vehicle transporting or transferring cannabis or cannabis products shall be directly
employed by a licensee authorized to transport or transfer cannabis or cannabis products.
(d) Notwithstanding any other law, all vehicles transporting cannabis and cannabis products for hire shall be required to have a valid motor carrier permit pursuant to Chapter 2 (commencing with Section 34620) of Division 14.85 of the Vehicle Code. The Department of the California Highway Patrol shall have authority over the safe operation of these vehicles, including, but not limited to, requiring licensees engaged in the transportation of cannabis or cannabis products to participate in the Basic Inspection of Terminals (BIT) program pursuant to Section 34501.12 of the Vehicle Code.
(e) Prior to transporting
cannabis or cannabis products, a licensed distributor shall do both of the following:
(1) Complete an electronic shipping manifest as prescribed by the licensing authority. The shipping manifest shall include the unique identifier, pursuant to Section 26069, issued by the Department of Food and Agriculture for the original cannabis product.
(2) Securely transmit the manifest to the bureau and the licensee that will receive the cannabis product. The bureau shall inform the Department of Food and Agriculture of information pertaining to commercial cannabis activity for the purpose of the track and trace program identified in Section 26067.
(f) During transportation, the licensed distributor shall maintain a physical copy
of the shipping manifest and shall make it available upon request to agents of the Department of Consumer Affairs and any law enforcement officers. Failure to meet the requirements of this subdivision is punishable by a fine as provided in Section 26031.5.
(g) The licensed distributor shall not transport an amount of cannabis in excess, as defined by the bureau, of the amount stated on the shipping manifest. Failure to meet the requirements of this subdivision is punishable by a fine as provided in Section 26031.5.
(g)
(h) The licensee receiving the shipment shall maintain each electronic shipping manifest and shall make it available upon request to agents of the Department of Consumer Affairs and any law enforcement officers. Failure to meet the requirements of this subdivision is punishable by a fine as provided in Section 26031.5.
(h)
(i) Upon receipt of the transported shipment, the licensee receiving the shipment shall submit to the licensing authority a record verifying receipt of the shipment and the details of the shipment.
(i)
(j) (1) Transporting, or arranging for or facilitating the transport of, cannabis or cannabis products in violation of this chapter is grounds for disciplinary action against the license.
(2)A law enforcement officer who encounters a licensed distributor transporting an amount of cannabis or cannabis product that is significantly in excess, as defined by the bureau, of the amount stated on the shipping manifest may seize the entire shipment of
cannabis or cannabis product for up to two days. The law enforcement officer shall provide the licensee with a receipt documenting the specific items seized, the date and time of seizure, the expiration of the seizure period, and the law enforcement agency case number. Law enforcement shall make every effort to preserve any perishable items seized.
(3)The law enforcement officer shall work with the bureau to determine if there was a violation of this chapter. If a violation was found, at the end of the two-day period law enforcement may destroy the cannabis or cannabis products seized as provided in Sections 11473.5, 11474, 11475, 11476, 11477, and 11479 of the Health and Safety Code.
(2) A law enforcement officer shall not seize cannabis for a violation of this chapter, unless seizure is otherwise authorized by law and the officer has probable cause to believe a criminal cannabis violation has occurred.
(j)
(k) Licensed retailers and microbusinesses, and licensed nonprofits under Section 26070.5, shall implement security measures reasonably designed to prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products from the premises. These security measures
shall include, but not be limited to, all of the following:
(1) Prohibiting individuals from remaining on the licensee’s premises if they are not engaging in activity expressly related to the operations of the retailer.
(2) Establishing limited access areas accessible only to authorized personnel.
(3) Other than limited amounts of cannabis used for display purposes, samples, or immediate sale, storing all finished cannabis and cannabis products in a secured and locked room, safe, or vault, and in a manner reasonably designed to prevent diversion, theft, and loss.
(k)
(l) A retailer shall notify the licensing authority and the appropriate law enforcement authorities within 24 hours after discovering any of the following:
(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the bureau.
(2) Diversion, theft, loss, or any criminal activity pertaining to the operation of the retailer.
(3) Diversion, theft, loss, or any criminal activity by any agent or employee of the retailer pertaining to the operation of the retailer.
(4) The loss or unauthorized alteration of records related to cannabis or cannabis products, registered qualifying patients, primary caregivers, or retailer employees or agents.
(5) Any other breach of security.
(l)
(m) Beginning January 1, 2018, a licensee may sell cannabis or cannabis products that have not been tested for a limited and finite time as determined by the bureau. The cannabis or cannabis products must have a
label affixed to each package containing the cannabis or cannabis products that clearly states “This product has not been tested as required by the Medicinal and Adult-Use Cannabis Regulation and Safety Act” and must comply with any other requirement as determined by the bureau.
(m)Distribution or transportation
(n) Transportation for purposes of sale with a counterfeit shipping manifest is punishable
pursuant to Section 11360 of the Health and Safety Code. Code and is also subject to disciplinary action by the bureau.