Our California cannabis attorneys at Manzuri Law understand that as our industry evolves, so does the list of exciting business opportunities. Whether you are already involved in the cannabis industry or are researching potential new prospects, it is important to mention a business trend that is growing substantially throughout the region: non-storefront retail delivery.
Under Proposition 64, the delivery of cannabis became legal in every county and city in the state of California that is not on land that is publicly owned, a school, daycare, or a youth center. Similar to other cannabis industry businesses, delivery regulations must be followed to the letter to maintain compliance.
Can Businesses Sell Cannabis Goods Exclusively Through Delivery?
The California Code of Regulations outlined by the Department of Cannabis Control (DCC) states that licensed business owners can sell cannabis goods to customers exclusively through delivery.
Under the regulations, a non-storefront cannabis retailer must have a licensed premise to store the cannabis goods for delivery, and the location may not be open to the public.
Other non-storefront cannabis retailer requirements and restrictions include:
- A licensed retailer may only engage in sales and deliveries between the hours of 6:00 a.m. and 10:00 p.m. Pacific Time.
- A licensed retailer may only sell cannabis goods, cannabis accessories, and licensees’ branded merchandise or promotional materials.
- A licensed retailer may only receive cannabis goods for sale from a licensed distributor.
- All cannabis goods must comply with all packaging and labeling requirements.
- A licensed retailer may not sell cannabis goods that are expired.
Once the business and licensing side of things is established and operating compliantly, there are ongoing legal regulations that all cannabis deliveries in California must comply with.
What are the California Cannabis Delivery Requirements?
Under the applicable regulations, California cannabis retail delivery non-storefront retail delivery businesses must act in compliance with the following:
- All delivery customers must provide valid proof of identification.
- o Persons 18 years of age or older may purchase medicinal cannabis goods with a valid physician’s recommendation.
- o Persons 21 years of age or older may purchase adult-use cannabis goods.
Delivery employees must verify the age by inspecting a valid form of identification of all delivery customers, in person, before they complete the delivery of cannabis goods.
- Delivery must be made to a physical address in any jurisdiction within California that is not on publicly owned land, a school, daycare, or youth center.
- During delivery, the employee must carry a copy of the retailer’s license, the employee’s government-issued identification, and an identification badge provided by the licensed retailer.
- The delivery employee shall not carry cannabis goods valued at more than $5,000 at any time, with no more than $3,000 of cannabis goods that are not already part of a customer order that was processed before leaving the premises.
- A delivery request receipt must be prepared for each delivery of cannabis goods and contain all the items listed in section 5420 of the DCC’s regulations, including:
- The name and address of the licensed retailer.
- The first name and employee number of the licensed retailer’s delivery employee who delivered the order.
- The first name and employee number of the licensed retailer’s employee who prepared the order for delivery.
- The first name of the customer and a licensed retailer-assigned customer number for the person who requested the delivery.
- The date and time the delivery request was made.
- The delivery address.
- 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.
- 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.
- Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery.
- Delivery must be made in person by a direct employee of the licensed retailer. An independent contractor, third-party courier service, or an individual employed through a staffing agency would not be considered directly employed by the licensed retailer.
Delivery Vehicle and Route Requirements
All cannabis deliveries must be made using an enclosed motor vehicle equipped with a GPS device and secure storage for cannabis goods. While making deliveries of cannabis goods, a 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 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.
All licensed cannabis retailers in California must maintain financial records, personnel records, training records, contracts, permits, security records, destruction records, data entered in track-and-trace, and an accurate record of all sales for seven years.
All records must be made available to the DCC upon request.
Contact Our Trusted Cannabis Law Firm in California
If you are interested in pursuing a California cannabis license for non-storefront retail delivery or are seeking advice from a compliance advocate, contact one of our California cannabis law firm specialists today by phone at (310) 912-2960 or online to learn more about how we can help.