Legislation
SECTION 84
Provisions governing the distribution of adult-use cannabis
Cannabis (CAN) CHAPTER 7-A, ARTICLE 4
§ 84. Provisions governing the distribution of adult-use cannabis. 1.
No distributor shall sell, or agree to sell or deliver any cannabis
products, as the case may be, in any container, except in a sealed
package. Such containers shall have affixed thereto such labels as may
be required by the rules of the board.
2. No distributor shall deliver any cannabis products, except in
vehicles owned and operated by such distributor, or hired and operated
by such distributor from a trucking or transportation company registered
with the board, and shall only make deliveries at the licensed premises
of the purchaser.
3. Each distributor shall keep and maintain upon the licensed
premises, adequate books and records of all transactions involving the
business transacted by such distributor, which shall show the amount of
cannabis products purchased by such distributor and the total THC
content of purchased cannabis products as reflected on the product
labels together with the names, license numbers and places of business
of the persons from whom the same was purchased and the amount involved
in such purchases, as well as the amount of cannabis products sold by
such distributor together and the total THC content of cannabis products
sold as reflected on the final product labels, with the names,
addresses, and license numbers of such purchasers and any other
information required in regulation. Each sale shall be recorded
separately on a numbered invoice, which shall have printed thereon the
number, the name of the licensee, the address of the licensed premises,
and the current license number. Such distributor shall deliver to the
purchaser a true duplicate invoice stating the name and address of the
purchaser, the quantity of cannabis products, the total THC content of
cannabis products sold as reflected on the product labels, description
by brands and the price of such cannabis products, and a true, accurate
and complete statement of the terms and conditions on which such sale is
made. Such books, records and invoices shall be kept for a period of
five years and shall be available for inspection by any authorized
representative of the board.
4. No distributor shall furnish or cause to be furnished to any
licensee, any exterior or interior sign, printed, painted, electric or
otherwise, unless authorized by the board.
5. No distributor shall provide any discount, rebate or customer
loyalty program to any licensed retailer, except as otherwise authorized
by the board.
6. The board is authorized to promulgate regulations establishing a
maximum margin for which a distributor may mark up a cannabis product
for sale to a retail dispensary. Any adult-use cannabis product sold by
a distributor for more than the maximum markup allowed in regulation,
shall be unlawful.
7. Each distributor shall keep and maintain upon the licensed
premises, adequate books and records to demonstrate the distributor's
actual cost of doing business, using accounting standards and methods
regularly employed in the determination of costs for the purpose of
federal income tax reporting, for the total operation of the licensee.
Such books, records and invoices shall be kept for a period of five
years and shall be available for inspection by any authorized
representative of the office for use in determining the maximum markup
allowed in regulation pursuant to subdivision six of this section.
No distributor shall sell, or agree to sell or deliver any cannabis
products, as the case may be, in any container, except in a sealed
package. Such containers shall have affixed thereto such labels as may
be required by the rules of the board.
2. No distributor shall deliver any cannabis products, except in
vehicles owned and operated by such distributor, or hired and operated
by such distributor from a trucking or transportation company registered
with the board, and shall only make deliveries at the licensed premises
of the purchaser.
3. Each distributor shall keep and maintain upon the licensed
premises, adequate books and records of all transactions involving the
business transacted by such distributor, which shall show the amount of
cannabis products purchased by such distributor and the total THC
content of purchased cannabis products as reflected on the product
labels together with the names, license numbers and places of business
of the persons from whom the same was purchased and the amount involved
in such purchases, as well as the amount of cannabis products sold by
such distributor together and the total THC content of cannabis products
sold as reflected on the final product labels, with the names,
addresses, and license numbers of such purchasers and any other
information required in regulation. Each sale shall be recorded
separately on a numbered invoice, which shall have printed thereon the
number, the name of the licensee, the address of the licensed premises,
and the current license number. Such distributor shall deliver to the
purchaser a true duplicate invoice stating the name and address of the
purchaser, the quantity of cannabis products, the total THC content of
cannabis products sold as reflected on the product labels, description
by brands and the price of such cannabis products, and a true, accurate
and complete statement of the terms and conditions on which such sale is
made. Such books, records and invoices shall be kept for a period of
five years and shall be available for inspection by any authorized
representative of the board.
4. No distributor shall furnish or cause to be furnished to any
licensee, any exterior or interior sign, printed, painted, electric or
otherwise, unless authorized by the board.
5. No distributor shall provide any discount, rebate or customer
loyalty program to any licensed retailer, except as otherwise authorized
by the board.
6. The board is authorized to promulgate regulations establishing a
maximum margin for which a distributor may mark up a cannabis product
for sale to a retail dispensary. Any adult-use cannabis product sold by
a distributor for more than the maximum markup allowed in regulation,
shall be unlawful.
7. Each distributor shall keep and maintain upon the licensed
premises, adequate books and records to demonstrate the distributor's
actual cost of doing business, using accounting standards and methods
regularly employed in the determination of costs for the purpose of
federal income tax reporting, for the total operation of the licensee.
Such books, records and invoices shall be kept for a period of five
years and shall be available for inspection by any authorized
representative of the office for use in determining the maximum markup
allowed in regulation pursuant to subdivision six of this section.