+ WHAT SECURITY MEASURES AM I REQUIRED TO TAKE?

Required security measures for retailers include:

• ID badges for all employees
• Limited-access areas within the facility
• Log of entry for evveryone entering the business
• Security personnel
• 24-hour video surveillance of all areas containing cannabis products and all point of sale areas
• Alarm systems
• Commercial-grade locks
• Secure storage of all cannabis products

+ WHAT CAN I DO WITH PRODUCT THAT DOES NOT MEET CALIFORNIA REGULATIONS AFTER JANUARY 1, 2018?

In order to ease the shift to a fully-regulated system, the state has designated January 1, 2018, through July 1, 2018, as a transition period during which licensed cannabis businesses will not be held to the full regulations. What does this mean for retailers?

During the transition period, you may:

• Conduct business with other licensed cannabis operators regardless of whether they hold an A-license or M-license (beginning July 1, 2018, A-license holders will only be authorized to conduct business with other A-licensees and M-license holders with fellow M-licensees)
• Sell cannabis products already in your inventory that aren’t in child-resistant packaging, as long as you place the products in child-resistant packaging at the time of sale
• Sell non-edible cannabis products that don’t meet THC-per-package limits
• Sell cannabis products that don’t meet labeling requirements, as long as a sticker with requisite information and warnings are affixed to the product prior to sale
• Sell cannabis products that haven’t undergone required testing, as long as a sticker stating the product hasn’t been tested is affixed prior to sale
• Package dry flower already in your inventory for sale
• Sell cannabis products already in your inventory that don’t meet ingredients or appearance requirements

Beginning July 1, 2018, retailers will need to be in full compliance with all regulations to avoid being penalized or forfeiting licensure.

+ HOW CAN I ENSURE THAT I REMAIN COMPLIANT?

By investing in a cannabis-specific POS system, you can automate many of the most important compliance aspects, including state track and trace reporting requirements. Learn more in the Point of Sales section below.

+ CAN I PACKAGE AND LABEL CANNABIS ON THE RETAIL PREMISES?

No. All cannabis products must be packaged and labeled prior to arriving to the retail facility.

The only exception applies during the transition period from January 1, 2018, to July 1, 2018. During this time, retailers who already have dry, unpackaged cannabis flower in their inventory may package the flower for sale.

+ CAN I SELL ALCOHOL OR TOBACCO AT MY CANNABIS RETAIL STORE?

No. Alcohol and tobacco sales are unauthorized at cannabis retail stores.

+ IS THERE FLEXIBILITY FOR VERTICALLY INTEGRATED BUSINESSES?

Yes. A California cannabis microbusiness may engage in three or more commercial cannabis activities.

+ ARE PRODUCT GIVEAWAYS AND GIFTING ALLOWED?

Cannabis retailers are NOT permitted to provide free cannabis products.

However, there is one exception for retailers who hold a medicinal retail license and want to donate cannabis products to qualified medicinal patients who have difficulty accessing cannabis. The criteria for this exception is spelled out in §5411 of the California cannabis regulations.

+ WHAT ARE THE OPERATING HOURS FOR A RETAIL SHOP?

Retail establishments may conduct business between 6 a.m. and 10:00 p.m. Pacific Time.

+ CAN I HAVE PUBLIC-FACING DISPLAYS ON MY STOREFRONT?

No. Cannabis goods may only be displayed in the retail area and may not be visible from outside the store.