Explained: BCC Retail License Inspection Checklist
by Gianna Geil, July 1, 2019 (with Omar Figueroa)
Retail License Inspection Sheet (PDF version)
If you are a licensed cannabis retailer in California (whether a delivery-only retailer or storefront dispensary) you probably have heard about inspections conducted by the Bureau of Cannabis Control (BCC).
In this first of two blog posts, we review the BCC Retail License Inspection Sheet, which is an inspection checklist utilized by the Bureau of Cannabis Control, and elaborate on the enforcement criteria listed in the form. This document was produced in late June of 2019 by the Bureau of Cannabis Control in response to a California Public Records Act request submitted by the Law Offices of Omar Figueroa. Our next blog post will discuss the BCC Distributor License Inspection Checklist.
The BCC regulations referenced in the Inspection Sheet are included in our free online reduced-size PDF containing the Combined Final Permanent Regulations. We have also crafted a hardcover book, a carefully curated compendium designed to give readers a deep understanding of the laws governing cannabis and hemp in California, which contains the regulations.
Overview
BCC inspections ensuring compliance with these regulations focus on three basic areas: security measures, premises requirements, and cannabis goods.
1. Security Measures
So, what security measures do inspectors evaluate? Inspectors are looking for compliance with general security measures on the premises, storage of cannabis inventory, and procedures for allowing persons on the premises.
Security systems. Inspectors look for functional alarm systems, which must be installed and maintained by a licensed alarm company, and commercial grade locks on all entrances and exits, both to the licensed retail area and the area where inventory is kept. (§§ 5042; 5046; 5047). Retailers must also contract with on-site security services licensed by the Bureau of Security and Investigation Services. (§ 5045).
Visibility. As inspectors may request immediate review of video surveillance, be sure all surveillance meets BCC requirements. This includes but is not limited to 24-hour recording, surveillance covering the entire premises, and storage of recordings for at least 90 days. (§ 5044). Additionally, at all points of sale surveillance be clear enough for facial recognition. (Id.).
Storage. Inventory must be kept in a secure limited-access area. (§ 5033; 5042). Access to this area is limited to employees or authorized individuals and inspectors will check for maintenance of a log or record of individuals that have entered the area. (§ 5042(d)). Additionally, no cannabis goods may be stored outdoors and each storage site must be separately licensed. (§ 5033).
Minors. Because persons under 21 years of age are generally not permitted in retailers, inspectors assess the retail area access procedure looking at whether employees confirm each customer’s age on a valid form of identification (such as a license or passport). (§ 5402; 5404). If a retailer sells medical cannabis, the procedure for verifying a customer is at least 18 years of age and possess a valid physician’s recommendation will be evaluated. (§ 5404(b)).
Employees. Every employee should always be wearing a name badge that includes a color photograph of the employee, employee number, licensee “doing business as” name, and the license number. (§ 5043).
2. Premises Requirements
Layout. Beware of any changes to the layout of the premises as it must match the diagram provided to the BCC during the application process, including, but not limited to, the placement of all boundaries, entrances or exits, dimensions of each area, activity in each area, and camera placement (§ 5006).
Consumption. Maintaining strict consumption rules is essential as inspectors look for whether the license permits consumption, how many people consumed products on site, and where consumption occurred. (§ 5025). If consumption is allowed on site, be sure the consumption area is fully compliant with all regulations. See Cal. Bus. & Prof. Code § 26200(g) (consumption area requirements include but are not limited to restriction to persons 21 and over and no visibility from a public place). Additionally, the sale or consumption of alcohol and tobacco products is prohibited. (§ 5025(d)).
3. Cannabis Goods
Packaging. While retailers are not responsible for creating labels for cannabis goods, they are responsible for ensuring that all products for sale comply with relevant labeling regulations. For example, for sale products must be prepackaged with proper labeling in resealable, child-resistant containers and placed in opaque exit packaging once sold. (§ 5412; 5413). Further, live plants or seeds have a separate labeling requirement and inspectors may evaluate any or all plants looking for pesticide use, which is prohibited, and maturity level. (§ 5408).
Accessibility. Cannabis goods may be made available for consumer inspection in the retail area so long as they are not accessible without employee assistance. (§ 5405). All cannabis goods not displayed in the retail area should be kept secure in limited-access areas.
Track & Trace. Inspectors will evaluate whether a licensee properly reported all cannabis goods in the Track and Trace program, which generally must be done within 24 hours of any transaction. (§ 5049). For more information on the Track and Trace program visit https://cannabis.ca.gov/track-and-trace-system/.
Delivery. If a retailer performs delivery services, it must be able to locate each vehicle at all times and keep documentation of the history of all deliveries. (§ 5417).
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