§ 84 — Provisions governing the distribution of adult-use cannabis

§ 84. Provisions governing the distribution of adult-use cannabis. 1.\nNo distributor shall sell, or agree to sell or deliver any cannabis\nproducts, as the case may be, in any container, except in a sealed\npackage. Such containers shall have affixed thereto such labels as may\nbe required by the rules of the board.\n 2. No distributor shall deliver any cannabis products, except in\nvehicles owned and operated by such distributor, or hired and operated\nby such distributor from a trucking or transportation company registered\nwith the board, and shall only make deliveries at the licensed premises\nof the purchaser.\n 3. Each distributor shall keep and maintain upon the licensed\npremises, adequate books and records of all transactions involving the\nbusiness transacted by such distributor, which shall show the amount of\ncannabis products purchased by such distributor and the total THC\ncontent of purchased cannabis products as reflected on the product\nlabels together with the names, license numbers and places of business\nof the persons from whom the same was purchased and the amount involved\nin such purchases, as well as the amount of cannabis products sold by\nsuch distributor together and the total THC content of cannabis products\nsold as reflected on the final product labels, with the names,\naddresses, and license numbers of such purchasers and any other\ninformation required in regulation. Each sale shall be recorded\nseparately on a numbered invoice, which shall have printed thereon the\nnumber, the name of the licensee, the address of the licensed premises,\nand the current license number. Such distributor shall deliver to the\npurchaser a true duplicate invoice stating the name and address of the\npurchaser, the quantity of cannabis products, the total THC content of\ncannabis products sold as reflected on the product labels, description\nby brands and the price of such cannabis products, and a true, accurate\nand complete statement of the terms and conditions on which such sale is\nmade. Such books, records and invoices shall be kept for a period of\nfive years and shall be available for inspection by any authorized\nrepresentative of the board.\n 4. No distributor shall furnish or cause to be furnished to any\nlicensee, any exterior or interior sign, printed, painted, electric or\notherwise, unless authorized by the board.\n 5. No distributor shall provide any discount, rebate or customer\nloyalty program to any licensed retailer, except as otherwise authorized\nby the board.\n 6. The board is authorized to promulgate regulations establishing a\nmaximum margin for which a distributor may mark up a cannabis product\nfor sale to a retail dispensary. Any adult-use cannabis product sold by\na distributor for more than the maximum markup allowed in regulation,\nshall be unlawful.\n 7. Each distributor shall keep and maintain upon the licensed\npremises, adequate books and records to demonstrate the distributor's\nactual cost of doing business, using accounting standards and methods\nregularly employed in the determination of costs for the purpose of\nfederal income tax reporting, for the total operation of the licensee.\nSuch books, records and invoices shall be kept for a period of five\nyears and shall be available for inspection by any authorized\nrepresentative of the office for use in determining the maximum markup\nallowed in regulation pursuant to subdivision six of this section.\n