Section 329D-7 - Medical cannabis dispensary rulesThe department shall establish standards with respect to:
(1) The number of medical cannabis dispensaries that shall be permitted to operate in the State;(2) A fee structure, set by rules adopted pursuant to chapter 91, for: (A) The submission of applications and renewals of licenses to dispensaries; provided that the department shall consider the market conditions in each county in determining the license renewal fee amounts;(B) The submission of applications and renewals for each additional production center; and(C) Dispensary-to-dispensary sales authorized by section 329D-6(r); provided that no designated fee shall increase by more than two and one-half per cent annually;
(3) Criteria and procedures for the consideration and selection, based on merit, of applications for licensure of dispensaries; provided that the criteria shall include but not be limited to an applicant's: (A) Ability to operate a business;(B) Financial stability and access to financial resources; provided that applicants for medical cannabis dispensary licenses shall provide documentation that demonstrates control of not less than $1,000,000 in the form of escrow accounts, letters of credit, surety bonds, bank statements, lines of credit, or the equivalent to begin operating the dispensary;(C) Ability to comply with the security requirements developed pursuant to paragraph (6);(D) Capacity to meet the needs of qualifying patients and qualifying out-of-state patients;(E) Ability to comply with criminal background check requirements developed pursuant to paragraph (8); and(F) Ability to comply with inventory controls developed pursuant to paragraph (13);(4) Specific requirements regarding annual audits and reports required from each production center and dispensary licensed pursuant to this chapter;(5) Procedures for announced and unannounced inspections by the department or its agents of production centers and dispensaries licensed pursuant to this chapter; provided that inspections for license renewals shall be unannounced;(6) Security requirements for the operation of production centers and retail dispensing locations; provided that, at a minimum, the following shall be required: (A) For production centers:(i) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;(ii) Fencing that surrounds the premises and that is sufficient to reasonably deter intruders and prevent anyone outside the premises from viewing any cannabis in any form;(iii) An alarm system; and(iv) Other reasonable security measures to deter or prevent intruders, as deemed necessary by the department; and(B) For retail dispensing locations:(i) Presentation of a valid government-issued photo identification and a valid identification as issued by the department pursuant to section 329-123 by a qualifying patient or caregiver, or section 329-123.5 by a qualifying out-of-state patient or caregiver of a qualifying out-of-state patient, upon entering the premises;(ii) Video monitoring and recording of the premises; provided that recording shall be retained for fifty days;(iv) Exterior lighting; and(v) Other reasonable security measures as deemed necessary by the department;(7) Security requirements for the transportation of cannabis and manufactured cannabis products between production centers and retail dispensing locations and between a production center, retail dispensing location, qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and a certified laboratory, pursuant to section 329-122(f);(8) Standards and criminal background checks to ensure the reputable and responsible character and fitness of all license applicants, licensees, employees, subcontractors and their employees, and prospective employees of medical cannabis dispensaries to operate a dispensary; provided that the standards, at a minimum, shall exclude from licensure or employment any person convicted of any felony;(9) The training and certification of operators and employees of production centers and dispensaries;(10) The types of manufactured cannabis products that dispensaries shall be authorized to manufacture and sell pursuant to sections 329D-9 and 329D-10;(11) Laboratory standards related to testing cannabis and manufactured cannabis products for content, contamination, and consistency;(12) The quantities of cannabis and manufactured cannabis products that a dispensary may sell or provide to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient; provided that no dispensary shall sell or provide to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient any combination of cannabis and manufactured cannabis products that: (A) During a period of fifteen consecutive days, exceeds the equivalent of four ounces of cannabis; or(B) During a period of thirty consecutive days, exceeds the equivalent of eight ounces of cannabis;(13) Dispensary and production center inventory controls to prevent the unauthorized diversion of cannabis or manufactured cannabis products or the distribution of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter; provided that the controls, at a minimum, shall include: (A) A computer software tracking system as specified in section 329D-6(j) and (k); and(B) Product packaging standards sufficient to allow law enforcement personnel to reasonably determine the contents of an unopened package;(14) Limitation to the size or format of signs placed outside a retail dispensing location or production center; provided that the signage limitations, at a minimum, shall comply with section 329D-6(o)(2) and shall not include the image of a cartoon character or other design intended to appeal to children;(15) The disposal or destruction of unwanted or unused cannabis and manufactured cannabis products;(16) The enforcement of the following prohibitions against: (A) The sale or provision of cannabis or manufactured cannabis products to unauthorized persons;(B) The sale or provision of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter;(C) Any use or consumption of cannabis or manufactured cannabis products on the premises of a retail dispensing location or production center; and(D) The distribution of cannabis or manufactured cannabis products, for free, on the premises of a retail dispensing location or production center;(17) The establishment of a range of penalties for violations of this chapter or rule adopted thereto; (18) A process to recognize and register patients who are authorized to purchase, possess, and use medical cannabis in another state, a United States territory, or the District of Columbia as qualifying out-of-state patients; provided that this registration process may commence no sooner than January 1, 2018; and(19) Security requirements and restrictions regarding waiting rooms, including but not limited to: (A) Security measures to prevent unauthorized access to any area within the retail dispensing location outside of the waiting room;(B) Restrictions on marketing and advertising within the waiting room;(C) Restrictions on signage within the waiting room; and(D) Other reasonable security measures or restrictions as deemed necessary by the department.Amended by L 2023, c 108,§ 4, eff. 7/1/2023.Amended by L 2022, c 309,§ 8, eff. 7/1/2022.Amended by L 2018, c 116,§ 15, eff. 7/1/2018.Amended by L 2017, c 170,§ 2, eff. 7/11/2017.Amended by L 2017, c 41,§ 7, eff. 6/29/2017.Amended by L 2016, c 184,§ 6, eff. 7/1/2016.Added by L 2015, c 241,§ 2, eff. 7/1/2015.