DCC-2026-02-R: Proposed Regulation Text

Chapter 1. All Licensees

Article 6. Track and Trace Requirements

§15047.1. Definitions.

1. (a) “Plant tag” means the tag that is labeled with a UID number and provided by the Department or the Department’s designee for attaching to a cannabis plant.
2. (b) “Package tag” means the RFID-enabled tag that is labeled with a UID number and provided by the Department or the Department’s designee for attaching to batches or representative samples of cannabis or cannabis products.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, 26160 and 26161, Business and Professions Code.

§15049. Track and Trace Reporting.

1. (a) All cannabis and cannabis products on the licensed premises mustshall be assigned a plant or package tag, as applicable, except for harvested plants that are being dried, cured, graded, or trimmed, as specified in this division, and recorded in the track and trace system.
2. (b) Each of the following activities mustshall be recorded in the track and trace system within 24 hours of after occurrence:
   1. (1) Receipt of cannabis or cannabis products.
   2. (2) Rejection of transferred cannabis or cannabis products.
   3. (3) Manufacturing of cannabis or cannabis products.
   4. (4) Use of cannabis or cannabis product for internal quality control testing or product research and development.
   5. (5) Destruction or disposal of cannabis or cannabis products other than immature and mature cannabis plants, the destruction and disposal of which are governed by section 15049.1(a)(3).
   6. (6) Packaging or repackaging of cannabis or cannabis products, except that cultivation licensees shall comply with section 15049.1(b)(5).
   7. (7) Laboratory sampling and testing, including testing results. Notwithstanding subsection (b), the licensed distributor must record laboratory sampling in the track and trace system before the laboratory employee collecting the sample leaves the distributor’s licensed premises.
   8. (8) Sale or donation of cannabis or cannabis products.
3. (c) The following information mustshall be recorded in the track and trace system for each activity entered pursuant to subsection (b):
   1. (1) The type of cannabis or cannabis products.
   2. (2) The weight, volume, or count of the cannabis or cannabis products.
      1. (A) The recipient licensee must accept the transfer using the same unit of measurement that was used by the initiating licensee when transferring the cannabis or cannabis products.
   3. (3) The date of activity.
   4. (4) The UID assigned to the cannabis or cannabis products.
   5. (5) The brand name of the cannabis goods.
   6. (6) If cannabis or cannabis products are being destroyed or disposed of, the licensee mustshall record the following information in the notes section:
      1. (A) The name of the employee performing the destruction or disposal;
      2. (B) The reason for destruction or disposal; and
      3. (C) The method of disposal.
4. (d) If a package adjustment is used to adjust the quantity of cannabis or cannabis products in the track and trace system, the licensee mustshall include a description explaining the reason for adjustment.
5. (e) If a licensee rejects a partial shipment of cannabis goods pursuant to section 15052.1(b), the licensee mustshall record the partial rejection in the track and trace system.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26013, 26067 and 261069, Business and Professions Code.

§15049.2. Recording Transfers of Cannabis and Cannabis Products.

1. (a) A licensee mustshall prepare a shipping manifest through the track and trace system prior to transferring cannabis and cannabis products off of a licensed premises. The following information mustshall be recorded on the shipping manifest by the licensee initiating the transfer:
   1. (1) The name, license number, and premises address of the originating licensee;
   2. (2) The name and license number of the licenseedistributor transporting the cannabis and cannabis products;
   3. (3) The name, license number, and premises address of the recipient licensee receiving the cannabis or cannabis products into inventory or storage;
   4. (4) The UID numbers for each all items being transferred;
   5. (5) The item name, item category and weight or count of cannabis or cannabis products associated with each package tag;
   6. (6) The estimated date and time of departure from the licensed premises;
   7. (7) The estimated date and time of arrival at each licensed premises; and
   8. (8) The driver’s license number of the personnel transporting the cannabis and cannabis products, and the make, model, and license plate number of the vehicle used for transport.
2. (b) Prior to transferring cannabis or cannabis products, the licensee initiating the transfer must submit a transfer request through the track and trace system to the recipient licensee and, if transport is required and the licensee initiating the transfer is not the distributor who will perform the transport, to the distributor licensee who will transport the cannabis or cannabis products. The shipping manifest may be generated and the transfer of cannabis or cannabis products may be performed only after all licensees to whom the transfer request was sent have approved the transfer in the track and trace system.
   1. (1) By approving a transfer, the recipient licensee is confirming that all information provided on the shipping manifest pursuant to subsection (a)(3) is accurate and that they expect to receive the items described on the shipping manifest pursuant to subsection (a)(5).
   2. (2) By approving a transfer, the distributor licensee is confirming that all information provided on the shipping manifest pursuant to subsections (a)(2) and (a)(6)-(8) is accurate and that they will transport the items described on the shipping manifest pursuant to subsection (a)(5).
3. (c) Manual approval of a transfer by a recipient or distributor licensee is not required when that licensee has an active transfer auto-approval agreement with the initiating licensee.
   1. (1) A “transfer auto-approval agreement” exists when a recipient or distributor licensee authorizes the track and trace system to automatically approve all subsequent transfer requests from an initiating licensee for as long as the agreement remains effective.
   2. (2) A recipient or distributor licensee may enter into a transfer auto-approval agreement with an initiating licensee by utilizing the auto-approval function on a transfer request in the track and trace system. This function may not be utilized unless the recipient or distributor licensee has previously approved and completed at least one manual transfer with the initiating licensee.
   3. (3) Transfer auto-approval agreements are effective for one year, or until the recipient or distributor licensee cancels the agreement or rejects a transfer request from the initiating licensee, whichever is shorter.
   4. (4) When the Department issues a Notice to Comply or a citation to a licensee for a violation of section 15000.1(d), 15034, 15049, 15049.2, or 15309, the Department will also cancel all transfer auto-approval agreements to which that licensee is a party and revoke that licensee’s privilege to enter into transfer auto-approval agreements with other licensees.
   5. (5) The Department will reinstate a licensee’s auto-approval privilege that was revoked based on issuance of a Notice to Comply upon that licensee’s correction of the violation(s) described in the Notice to Comply in accordance with section 17801(d). However, the Department will not restore any cancelled transfer auto-approval agreements.
   6. (6) The Department will reinstate a licensee’s auto-approval privilege that was revoked based on issuance of a citation upon that licensee’s compliance with the citation or, if the citation is contested, compliance with the final decision and order on the contested citation. However, the Department will not restore any cancelled transfer auto-approval agreements.
4. (d) A licensee rejecting a transfer request must provide a reason for the rejection in the track and trace system. Transfer requests will be automatically cancelled if not approved or rejected within 72 hours of creation.
5. (e) Notwithstanding subsection (b), transfer approval is not required when a licensed testing laboratory employee collects a representative sample from a distributor for regulatory compliance testing.
6. (bf) The distributorlicensee who transports the cannabis or cannabis product mustshall record the following additional information on the shipping manifest:
   1. (1) The actual date and time of departure from the licensed premises; and
   2. (2) The actual date and time of arrival at each licensed premises.
7. (cg) Upon pick-up or receipt of cannabis and cannabis products for transport, storage, or inventory, a licensee mustshall ensure that the cannabis or cannabis products received are as described in the shipping manifest. The recipient licensee mustshall record acceptance or receipt, and acknowledgment of the cannabis or cannabis products in the track and trace system.
8. (dh) If there are any discrepancies between type or quantity of cannabis or cannabis products specified in the shipping manifest and the type or quantity received by the licensee, the recipient licensee mustshall reject the shipment.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, 26160 and 26161, Business and Professions Code.

§15049.4. Track and Trace Requirements for Retail.

1. (a) Licensed retailers and microbusinesses must enter the following information into the track and trace system for all retail sales of cannabis goods:
   1. (1) The invoice number issued to the customer by the point-of-sale provider, if any.
   2. (2) The retail selling price of each cannabis good before discounts and taxes.
   3. (3) The excise tax collected by the state on each cannabis good.
   4. (4) Any local business tax collected by a city and added to the selling price of each cannabis good.
   5. (5) Any local business tax collected by a county and added to the selling price of each cannabis good.
   6. (6) Any local business tax collected by a municipality and added to the selling price of each cannabis good.
   7. (7) Any discount applied to each cannabis good.
   8. (8) The subtotal, which is the sum of the amounts entered pursuant to subsections (2) through (6) less any discount entered pursuant to subsection (7).
   9. (9) The sales tax collected on each cannabis good.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26013, 26067 and 26070, Business and Professions Code.

Chapter 2. Distributors

§15304. Testing Arrangements.

1. After taking physical possession of a batch of cannabis or cannabis products, the licensed distributor shall contact must arrange for only onea licensed testing laboratory and arrange for a laboratory employee to come to the licensed distributor’s licensed premises to select onea representative sample from that batch for laboratory testing.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26104 and 26110, Business and Professions Code

§15305. Testing Sample.

1. (a) The licensed distributor mustshall ensure that the batch size from which the sample is taken meets the requirements of this division.
2. (b) A licensed distributor or an employee of the licensed distributor mustshall be physically present to observe the laboratory employee obtain the sample of cannabis or cannabis products for testing and mustshall ensure that the increments are taken from throughout the batch.
3. (c) The sampling mustshall be video-recorded with the batch number stated verbally or in writing on the video at the beginning of the video and a visible time and date indication on the video recording footage. The video recordings mustshall be maintained for 90 calendar days by the licensed distributor.
4. (d) After the sample has been selected, both the licensed distributor and the laboratory employee mustshall sign and date the chain of custody form pursuant to section 15706, attesting to the sample selection having occurred.
5. (e) A licensed distributor mayshall not assist the laboratory employee nor touch the cannabis or cannabis products or the sampling equipment while the laboratory employee is obtaining the sample.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26104 and 26110, Business and Professions Code.

§15305.1. Resampling. Sampling Restrictions.

1. Once a representative sample has been obtained from a batch for regulatory compliance testing, a licensed distributor may not create a second test sample package in the track and trace system, or arrange for or allow another licensed testing laboratory to sample or re-sample the same batch for regulatory compliance testing, unless all of the requirements of section 15705, subsection (g) of this division are met.
2.  

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.

§15306. Regulatory Compliance Testing Results.

1. (a) A licensed distributor mustshall store a batch on its licensed premises until it either:
   1. (1) Passes regulatory compliance testing as described in subsection (bc); or
   2. (2) If it fails regulatory compliance testing as described in subsection (de), a corrective action plan for remediation has been approved by the Department pursuant to section 17305.
2. (b) A licensed distributor may not physically or electronically repackage a batch that has been submitted for or is undergoing regulatory compliance testing.
3. (bc) A batch passes regulatory compliance testing when the representative sample meets specifications in chapter 6. Once a batch has passed regulatory compliance testing, the batch shall not be repackaged into a new production batch in the track and trace system nor shall it be assigned a new batch number.
4. (c) WhenAfter a batch passes regulatory compliance testing, the cannabis or cannabis products may be transported to one or more licensed retailers, licensed distributors, or licensed microbusinesses authorized to conduct distribution or retail. A copy of the certificate of analysis for regulatory compliance testing shallmust be provided to all licensed distributors receiving the batch for purposes of quality assurance review under section 15307. A copy of the certificate of analysis shallmust also be provided to the licensee who produced the batch. The copies of the certificate of analysis required by this subsection may be provided electronically.
5. (d) A batch fails regulatory compliance testing when the representative sample does not meet specifications in chapter 6. A licensed distributor may not electronically create a new production batch in the track and trace system from a batch that has failed testing.
6. (e) If a failed batch has been approved for remediation by the Department pursuant to section 17305, a licensed distributor may transport or arrange for the transportation of the batch to the licensed manufacturer or microbusiness authorized to engage in manufacturing that has received approval from the Department to conduct the remediation. Once a batch has been approved for remediation by the Department, the licensed distributor mustshall transport the batch to the approved manufacturer or microbusiness within 30 calendar days of the approval.
7. (f) A licensed distributor mustshall destroy a batch that failed regulatory compliance testing and cannot be remediated pursuant to section 17305 within 60 days of failure of the batch or 30 days of receiving notification from the Department that the batch may not be remediated. The distributor mustshall notify the licensed manufacturer or cultivator who produced the batch of the destruction and the reasons for it. Evidence of destruction including, but not limited to, video or photos of the destruction mustshall be provided to the Department upon request.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26070, 26100, 26104 and 26110, Business and Professions Code.

§15307. Quality-Assurance Review.

1. (a) When a licensed distributor receives a certificate of analysis for regulatory compliance testing from the licensed testing laboratory or upon transfer from another licensed distributor stating that the batch meets specifications required by law, the licensed distributor mustshall ensure the following before transporting the cannabis goods to one or more licensed retailers or licensed microbusinesses authorized to engage in retail sales:
   1. (1a) The certificate of analysis for regulatory compliance testing that the licensed distributor received from the licensed testing laboratory or another licensed distributor is the certificate of analysis that corresponds to the batch;
   2. (2) For manufactured cannabis products, if there is a production batch number associated with a product in the track and trace system, that number matches the number included on that product’s certificate of analysis and printed on that product’s label;
   3. (3b) The date on the certificate of analysis for the regulatory compliance testing is less than 12 months old;
   4. (4c) The label on the cannabis goods is consistent with the certificate of analysis for regulatory compliance testing regarding cannabinoid content required to be listed by law as follows:
      1. (A1) If the cannabis goods are labeled with the content for cannabinoids, terpenoids, Total THC, and/or Total CBD prior to receiving the certificate of analysis for regulatory compliance testing, the licensed distributor mustshall ensure that the labeled amounts are accurate in accordance with section 15307.1, and
      2. (B2) If the cannabis goods are not labeled with the content for cannabinoids, terpenoids, Total THC, and/or Total CBD prior to receiving the certificate of analysis for regulatory compliance testing, the licensed distributor mustshall label the cannabis goods with the amounts listed on the certificate of analysis pursuant to section 15303;
   5. (5d) The packaging and labeling of the cannabis goods complies with Business and Professions Code section 26120 and this division, except cannabis goods are not required to be labeled or otherwise identified as medicinal products prior to retail sale unless the cannabis goods must be labeled as such pursuant to this division;
2. (6e) The cannabis goods have not exceeded their expiration or sell-by date if one is provided;
3. (7f) The weight or count of the batch comports with that in the track and trace system. A licensed distributor mustshall use scales as required by this division; and
4. (8g) All events prior to receipt of the certificate of analysis for regulatory compliance testing have been entered into the track and trace system.
5. (9h) If the licensed distributor determines that the cannabis goods are not fit for sale because they do not meet the requirements of this section, then the distributor may arrange for a corrective action plan to be submitted pursuant to section 17305 in accordance with the following:
   1. (A1) If the cannabis goods may be relabeled by the licensed distributor, another distributor, or microbusiness authorized to engage in distribution, then the distributor who will conduct the remediation mustshall submit a corrective action plan pursuant to section 17305. Transport to another licensed distributor or microbusiness authorized to engage in distribution mayshall not occur until the corrective action plan has been approved by the Department.
   2. (B2) If the cannabis goods may only be remediated by a licensed manufacturer or microbusiness authorized to engage in manufacturing because they must be repackaged or reprocessed, then the licensed distributor mustshall comply with the provisions of subsections (e) and (f) of section 15306.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26070, 26110 and 26120, Business and Professions Code.

Chapter 3. Retailers

§15404.1. Providing COAs to Customers.

1. Upon request from a customer, a licensed retailer or microbusiness authorized to engage in retail sales must provide the customer with a copy of a Certificate of Analysis (COA) for any cannabis goods being offered for sale.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26070, 26110 and 26140, Business and Professions Code.

Chapter 6. Testing Laboratories

Article 3. Sampling Cannabis and Cannabis Products

§15710. Laboratory Receipt of Samples Obtained from a Distributor or Microbusiness for Regulatory Compliance Testing.

1. (a) For purposes of recording receipt or rejection of representative samples in the track and trace system in accordance with section 15049, subsection (b), “occurrence” means arrival of the sample at the laboratory’s licensed premises. The licensed laboratory may accept and analyze a sample from a licensed distributor or licensed microbusiness authorized to engage in distribution for the required testing under section 15714 only if there is an accompanying COC form for the sample.
2. (b) The licensed laboratory employee who receives the sample shall date, print, and sign their name on the accompanying sample COC.
3. (bc) Notwithstanding section 15705, subsection (f), aThe licensed laboratory shall may not analyze a sample obtained from a licensed distributor or licensed microbusiness authorized to engage in distribution, and the batch from which the sample was obtained may not be released for retail sale, if any of the following occur:
   1. (1) The sample arrives is received at the laboratory without the requisite COC form;
   2. (2) The tamper-evident material is broken prior to the sample‘s arrival being received at the laboratory; or
   3. (3) There is evidence of sample commingling, contamination, degradation, or a related occurrence rendering the sample unusable for analytical testing when the sample arrives is received at the laboratory.

NOTE: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.