Section 1291.310 Inventory Control System

Section 1291.310  Inventory Control System

a)         A dispensing

organization AIC shall have primary oversight of the dispensing organization's

State Verification System and Point of Sale System.  The inventory Point of

Sale System shall be real-time, web-based and accessible by the Department 24

hours a day, seven days a week.

b)         A dispensing

organization shall establish an account with the State Verification System that

documents:

1)         Each

sales transaction at the time of sale;

2)         Each

day's beginning inventory, acquisitions, sales, disposal and ending inventory;

3)         All

acquisitions of cannabis and cannabis-infused products from a cultivation

center, craft grower, infuser, transporter, or dispensary including:

A)        A

description of the products including the quantity, strain, variety and batch

number of each product received;

B)        The

name and license identification number of the cultivation center, craft grower,

infuser, transporter, or dispensary providing the cannabis and cannabis infused

products;

C)        The

name and license identification number of the cultivation center or transporter

agent delivering the cannabis;

D)        The

name and license identification number of the dispensing organization agent

receiving the cannabis; and

E)        The

date of acquisition.

4)         The

disposal of cannabis, including:

A)        A

description of the products being disposed, including the quantity, strain, variety,

batch number and reason for the cannabis being disposed;

B)        The

method of disposal; and

C)        The

date and time of disposal.

c)         A dispensing

organization shall use a point of sale system that establishes and maintains an

interface with the State Verification System to track the sale of cannabis,

consistent with the Act and this Part

including the quantity, strain, variety,

batch number and reason for the cannabis being disposed;

B)        The

method of disposal; and

C)        The

date and time of disposal.

c)         A dispensing

organization shall use a point of sale system that establishes and maintains an

interface with the State Verification System to track the sale of cannabis,

consistent with the Act and this Part.

d)         Upon

cannabis delivery, a dispensing organization shall confirm the product's name,

strain name, weight, identification number, and quantity on the manifest matches

the information on the cannabis product label and package.  The product name

listed and the weight listed in the State Verification System shall match the

product packaging.

e)         An

AIC shall conduct a daily physical count of all inventory, except as permitted

under subsection (e)(4) and also conduct a reconciliation documenting and

balancing cannabis inventory by confirming the State Verification System

matches the dispensing organization's point of sale system and the amount of

physical product at the dispensary.  The daily physical count shall include

checking the use-by date for all inventory and quarantining any expired

product.

1)         A dispensing

organization must receive Department approval prior to completing an inventory

adjustment.  It shall provide a detailed reason for the adjustment.  Inventory

adjustment documentation must be kept at the dispensary for two years from the

date performed.

2)         If,

after the daily inventory reconciliation the dispensing organization identifies

an imbalance in the amount of cannabis due to mistake, the dispensing organization

shall determine how the imbalance occurred and, immediately upon discovery,

take and document corrective action

Inventory

adjustment documentation must be kept at the dispensary for two years from the

date performed.

2)         If,

after the daily inventory reconciliation the dispensing organization identifies

an imbalance in the amount of cannabis due to mistake, the dispensing organization

shall determine how the imbalance occurred and, immediately upon discovery,

take and document corrective action.  If the dispensing organization cannot

identify the reason for the mistake within two calendar days after first

discovery, it shall inform the Department immediately in writing of the

imbalance and the corrective action taken to date.  The dispensing organization

shall work diligently to determine the reason for the mistake.  The dispensing organization

shall complete its investigation within 10 business days.  If the investigation

is not complete within 10 business days, the dispensary shall notify the

Department of next steps and a contemplated deadline.  The Department may

extend the investigation period upon a showing of good cause.

3)         If,

after the daily inventory reconciliation or through other means, the dispensing

organization identifies an imbalance in the amount of cannabis due to theft,

criminal activity or suspected criminal activity, the dispensing organization

shall immediately determine the manner in which the theft or criminal activity

occurred and take and document corrective action.  Within 24 hours after the

first discovery of the reduction due to theft, criminal activity or suspected

criminal activity, the dispensing organization shall inform the Department and

ISP in writing.

4)         A dispensing

organization is not required to perform a daily physical count of bulk cannabis

inventory if stored pursuant to the requirements in this Part.  The dispensing organization

must verify daily that any bulk cannabis inventory meets the storage

requirements

of this subsection (e)(4)

minal activity, the dispensing organization shall inform the Department and

ISP in writing.

4)         A dispensing

organization is not required to perform a daily physical count of bulk cannabis

inventory if stored pursuant to the requirements in this Part.  The dispensing organization

must verify daily that any bulk cannabis inventory meets the storage

requirements

of this subsection (e)(4).  If the packaging of bulk

cannabis inventory becomes torn or tampered with it must be recounted and

resealed before the completion of the next daily physical count.  Bulk cannabis

inventory must be counted monthly by physically removing each item from the

sealed containers, counting each item, and checking the expiration date.  Bulk

cannabis inventory must then be resealed and labeled with the last date it was

counted.  All expired product must be destroyed in accordance with Section

1291.325.  For the purposes of this Section "bulk cannabis inventory"

means cannabis and cannabis-infused products stored in the reinforced vault in

clear, heat-sealed or taped shrink wrap bags or sheeting that is labeled with

the date the inventory is sealed, the last four digits of the batch number, the

number of items contained within the wrapping and the date the inventory was

last counted.  Bulk cannabis inventory is included in the dispensing organization's

total inventory available for sale.

5)         The

AIC shall certify their consideration of the factors in this subsection (e)(5) on

a form provided by the Department.

f)         A dispensing

organization shall maintain the documentation required in this Section in a

secure locked location at the dispensing organization.

g)         A dispensing

organization shall ensure the oldest stock of cannabis and cannabis-infused

product is dispensed first.  A dispensing organization may deviate from this

requirement upon Department approval

rovided by the Department.

f)         A dispensing

organization shall maintain the documentation required in this Section in a

secure locked location at the dispensing organization.

g)         A dispensing

organization shall ensure the oldest stock of cannabis and cannabis-infused

product is dispensed first.  A dispensing organization may deviate from this

requirement upon Department approval.

h)         If

cannabis is abandoned at a dispensing organization, it shall be accounted for

and destroyed in compliance with this Part.