CHEAC Summary. BMCR Medical Cannabis Regulations. Distribution, Transportation and Dispensaries

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CHEAC Summary BMCR Medical Cannabis Regulatins Distributin, Transprtatin and Dispensaries The Bureau f Medical Cannabis Regulatin (BMCR) prpsed regulatins fcus n the applicatin, licensing, and perating requirements fr the distributin, transprtatin, and dispensing f medical cannabis thrughut Califrnia. We encurage members t read the entire dcument released by BMCR; hwever, a summary f the mst relevant aspects is prvided belw. Operatinal Definitins (page 1-4) Medical cannabis gds medical cannabis, including dried flwer and manufactured medical cannabis prducts. Medical cannabis patient a persn whse physician has recmmended the use f cannabis t treat a serius illness, including cancer, anrexia, AIDS, chrnic pain, spasticity, glaucma, arthritis, migraine, r any ther illness fr which cannabis prvides relief. Applicatin Requirements (pages 5-9) Applicants must prvide the cntact infrmatin fr the lcal jurisdictin in which the entity prpses t perate, including the name f the lcal licensing authrity, the address, and phne number. Applicants must prvide dcumentatin issued by the jurisdictin in which the applicatin prses t perate certifying the applicant is in cmpliance with all lcal rdinances and regulatins, r will be in cmpliance will all lcal rdinances and regulatins by the time the BMCR issues a license. Fr entities applying fr a dispensary license, the applicant must prvide evidence that the prpsed lcatin is at least a 600-ft radius frm a schl. Fr entities applying fr a license t transprt medical cannabis gds, applicants must detail practices fr taking pssessin f medical cannabis gds, practices fr hlding medical cannabis gds while nt in transprt, practices fr preventing the deteriratin f medical cannabis gds, practices fr transprt f medical cannabis gds, and security practices.

Waiver f Svereign Immunity (page 12-13) Any applicants that fall within the scpe f a svereign immunity must perate in full cmpliance with the state laws and regulatins, including state r lcal administrative r judicial enfrcement prvisins. Operatins in existence prir t January 1, 2018 (page 13 14) May cntinue t perate while their applicatin is pending if: A cmpleted applicatin is received by BMCR by July 2, 2018. Cntinuing peratins f an applicant must be the same cmmercial cannabis activity as the license type fr which the applicant is applying. Pririty Review f Applicatins (page 14) Pririty will be given t entities that were in peratin and in gd standing with its lcal jurisdictin by January 1, 2016, and whse business wnership r premises are the same as they were n January 1, 2016, will receive pririty review. Track and Trace Requirements (page 20) Licensees are required t create and maintain a rather invlved track and trace system fr medical cannabis prducts. All transactins f medical cannabis prducts must be entered int the track and trace system n a daily basis. Ntificatin f Law Enfrcement (page 24) In the event f theft r lss f medical cannabis gds, licensees are required t ntify BMCR and law enfrcement authrities within 24 hurs. Distributin Requirements (page 28 33) Distributrs A distributr may take title t and pssessin f medical cannabis after harvest but prir t manufacturing. They may sell t a manufacturer r enter int cntract with a manufacturer fr manufacturing the medical cannabis int medical cannabis prducts. Title is relinquished by the distributr nce gds are received by a dispensary. A distributr licensee may sell t anther distributr. A distributr must ensure all medical cannabis gds batches are stred separately and distinctly frm ther medical cannabis gds batches n the distributr s premises. Page 2 f 5

Labeling and packaging must be dne in cnfrmance with current law. This includes nt being appealing t children and including warnings. A licensed testing labratry must be cntacted fr randm sampling when a distributr takes physical pssessin f a medical cannabis batch. If a sample passes randm sampling inspectin, the medical cannabis gds may be distributed t dispensaries. If the sample fails, the distributr must destry the batch, as specified. Licensees are nt required t have medical cannabis gds tested r t fllw the specified labeling requirements until 180 after licensure r December 31, 2018, whichever is sner. Transprt Requirements (page 38-41) Transprters Entities transprting medical cannabis gds must nly be transprted inside f a cmmercial vehicle r trailer and nt be visible r identifiable frm the utside. Medical cannabis gds must be lcked in a bx that is secured t the interir f the cmmercial vehicle r trailer. If the vehicle is left unattended, the vehicle and trailer must be lcked and secured. A cmmercial vehicle cntaining medical cannabis gds cannt be left unattended r left vernight in a residential area, and the vehicle must have a vehicle alarm system. The transprter must nly make direct trips between licensees shipping r receiving medical cannabis gds and its wn licensed premises. Only a licensed transprter r emplyee f the licensee ver the age f 21 years ld is allwed t transprt medical cannabis gds using a cmmercial vehicle. Transprters must enter specified infrmatin int its track and trace system, including the persnal infrmatin f the transprter, amunt f medical cannabis gds transprted, date f delivery and receipt, and any event resulting in expsure, cmprmise, spilage, r fuling f prducts. Dispensary Requirements (pages 42-47) Dispensaries Premises shall be limited t individuals 18 and lder. Individuals yunger than 18 may enter the premises t purchase medical cannabis if the individual is a medical cannabis patient and is accmpanied by his parent, guardian r primary caregiver. Page 3 f 5

Dispensaries may nly permit authrized individuals t enter limited-access areas. Thse individuals must be lder than 21 in additin t ther key requirements. Individuals may nly access the retail area after the individual has been identified as a medical cannabis patient r primary caregiver using the either physician s recmmendatin r valid identificatin, r written dcumentatin frm the physician. Licensed dispensaries may nly sell medical cannabis gds during the hurs f 6:00 a.m. t 9:00 p.m. Pacific Time. Medical Cannabis gds fr sale shall nly be displayed in the retail area during the perating hurs. Medical cannabis remved frm their packaging fr display shall nt be sld r cnsumed. Licensees shall nt sell mre than eight unces f medical cannabis in a single day t a single patient, a physician s recmmendatin is prvided. Licensed dispensaries shall nt resell medical cannabis gds that have been returned, this includes gds abandned n the premises. Dispensaries shall nt prvide free samples f medical cannabis gds t any persn. Packaging and Labeling (page 47) N cmpanies r rganizatins can prvide free samples n the premises. A dispensary shall nt package r label medical cannabis gds. Exit packaging must: Be difficult fr children under five t pen and nt difficult fr adults t use prperly. Be paque Behave the ability t be resealed if intended fr mre than single use. Delivery (page 48-51) May nly be made t a physical address in Califrnia. Dispensary delivery emplyee shall nt leave the state f Califrnia while pssessing medical cannabis gds. Page 4 f 5

Delivery may nt be made t an address lcated n publicly wned land r any address n land r in a building leased by a public agency. Delivery must be made using an enclsed mtr vehicle. Gds must nt be visible t the public. Vehicles must be equipped with an active alarm system. Vehicles must be utfitted with a GPS devise, nt including a phne r tablet. Delivery can nly be made during the hurs f 6:00 a.m. and 9:00 p.m. Pacific Time. N mre than $3,000 in medical cannabis gds may be carried fr delivery at any time. Delivery emplyees may nt cnsume while delivering. Inventry Strage (page 52) Gds shall be stred in a building designed t permit cntrl f temperature and humidity and shall prevent the entry f envirnmental cntaminants. Harvest batches and edible cannabis prducts that require refrigeratin at 35 t 42 degrees Fahrenheit. Receiving Shipments (page 52-54) Dispensaries shall nly accept shipments f medical cannabis gds between 6:00 a.m. and 9:00 p.m. Pacific Time. Shipments cannt enter thrugh the public entrance at any time. Upn receiving shipments, prducts must be immediately secured t prevent diversin, theft and lss. Grace Perid (page 55) Up t 180 days after the date f licensure r December 31, 2018, whichever is sner, a dispensary may sell its inventry f untested medical cannabis gds if the dispensary labels the package accrdingly. Track and Trace (page 55-57) Dispensaries must receipt, sale, returns, and destructin int the track and trace system. Page 5 f 5