Unique Identifiers And Track And Trace - - CA Business And Professions

Section § 26067

This law requires the creation of a system to track cannabis products throughout their entire journey from production to sale. It uses unique identifiers to provide information such as the license holder, transaction dates, and details of product shipments. An electronic database will keep track of shipments, including details like departure and arrival times, and will help spot any irregularities for further investigation. The California Department of Tax and Fee Administration can access this database for tax and regulation purposes. While information in this system is confidential, it can be shared with law enforcement for official duties.

(a) The department shall establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain that utilizes a unique identifier and is capable of providing information that captures, at a minimum, all of the following:

(1) The licensee from which the product originates and the licensee receiving the product.

(2) The transaction date.

(3) The unique identifier or identifiers for the cannabis or cannabis product.

(4) The date of retail sale to a customer and whether the sale is conducted on the retail premises or by delivery.

(5) Information relating to cannabis and cannabis products leaving the licensed premises in a delivery vehicle as determined by regulations adopted pursuant to subdivision (d) of Section 26068.

(b)

(1) The department, in consultation with the California Department of Tax and Fee Administration, shall create an electronic database containing the electronic shipping manifests to facilitate the administration of the track and trace program, which shall include, but not be limited to, the following information:

(A) The variety and quantity or weight of cannabis or cannabis products shipped.

(B) The estimated times of departure and arrival.

(D) The actual time of departure and arrival.

(E) A categorization and the unique identifier of the cannabis or cannabis product.

(F) The license number issued by the department for all licensees involved in the shipping process, including, but not limited to, cultivators, manufacturers, distributors, and retailers.

(2) The database shall be designed to flag irregularities for the department to investigate.

(3) The department and state and local agencies may, at any time, inspect shipments and request documentation for current inventory.

(4) The California Department of Tax and Fee Administration shall have read access to the electronic database for the purpose of taxation and regulation of cannabis and cannabis products.

(5) Information received and contained in records kept by the department for the purposes of administering this chapter are confidential and shall not be disclosed pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000 of Title 1 of the Government Code), except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to this division or a local ordinance.

(6) Upon the request of a state or local law enforcement agency, the department shall allow access to or provide information contained within the database to assist law enforcement in their duties and responsibilities pursuant to this division.

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(Amended by Stats. 2024, Ch. 80, Sec. 17. (SB 1525) Effective January 1, 2025.)

Section § 26068

This law section mandates that the California Department ensure its cannabis tracking program can track the cultivation tax using an electronic system from seed to sale. It allows cannabis businesses to use third-party software to report activities like cultivation, processing, and delivery, ensuring these systems can interact securely with the state's system. By January 1, 2023, cannabis deliveries must also be tracked. The department is allowed to issue emergency regulations to implement these delivery tracking requirements.

(a) The department, in consultation with the California Department of Tax and Fee Administration, shall ensure that the track and trace program can also track and trace the amount of the cultivation tax due pursuant to Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code. The track and trace program shall include an electronic seed to sale software tracking system with data points for the different stages of commercial activity, including, but not limited to, cultivation, harvest, processing, manufacturing, distribution, inventory, sale, and delivery.

(b) The department shall ensure that licensees under this division are allowed to use third-party applications, programs, and information technology systems to comply with the requirements of the expanded track and trace program described in subdivision (a) to report the movement of cannabis and cannabis products throughout the distribution chain and communicate the information to licensing agencies as required by law.

(c) Any software, database, or other information technology system utilized by the department to implement the expanded track and trace program shall support interoperability with third-party cannabis business software applications and allow all licensee-facing system activities to be performed through a secure application programming interface (API) or comparable technology that is well documented, bi-directional, and accessible to any third-party application that has been validated and has appropriate credentials. The API or comparable technology shall have version control and provide adequate notice of updates to third-party applications. The system should provide a test environment for third-party applications to access that mirrors the production environment.

(d)

(1) The department shall incorporate delivery into the track and trace program no later than January 1, 2023.

(2) Notwithstanding any other law, provisions related to inclusion of information related to delivery in the track and trace system in Sections 26067 and 26090 shall only become effective after the department incorporates delivery into the track and trace program as required by this subdivision.

(3) Notwithstanding any other law, the department may adopt and readopt emergency regulations to implement this subdivision. The provisions of Section 26013 shall be applicable to emergency regulations adopted or readopted pursuant to this section. The emergency regulations authorized by this paragraph shall be deemed an emergency and necessary for the immediate preservation of public peace, health, safety, or general welfare.

cultivation tax track and trace seed to sale cannabis tracking third-party software interoperability API secure application programming interface delivery tracking emergency regulations cannabis distribution electronic tracking system licensing agencies cannabis business software

(Amended by Stats. 2022, Ch. 56, Sec. 5. (AB 195) Effective June 30, 2022.)

Section § 26069

This section refers to a system for keeping track of cannabis plants during cultivation. The department must give each plant a unique ID, but only to people who have the right license. This ID process is part of a larger program to monitor cannabis from seed to sale. The department may charge fees to cover the costs of this tracking. Cities can help manage IDs, but they must still follow the main program's rules. The law also aims to prevent fraud and illegal activities with these IDs. However, this doesn't apply to cannabis grown for personal use under specific health and safety laws.

(a)

(1) The department shall implement a unique identification program for cannabis and cannabis products.

(2) The unique identification program shall include the identification of permitted cannabis plants at a cultivation site during the cultivation period. A unique identifier shall be issued for each cannabis plant. The department shall ensure that unique identifiers are issued as quickly as possible to ensure the implementation of this division. The unique identifier shall be recorded in a manner as determined by the department by regulation.

(b) Unique identifiers shall only be issued to those persons appropriately licensed by this division.

(c) Information associated with the assigned unique identifier and licensee shall be included in the trace and track program specified in Section 26067.

(d) The department may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each cannabis plant.

(e) The department shall take adequate steps to establish protections against fraudulent unique identifiers and limit illegal diversion of unique identifiers to unlicensed persons.

(f) A city, county, or city and county may administer unique identifiers and associated identifying information but a city, county, or city and county’s identifiers shall not supplant the department’s track and trace program.

(g) This section does not apply to the cultivation of cannabis in accordance with Section 11362.1 of the Health and Safety Code or the Compassionate Use Act.

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(Amended by Stats. 2023, Ch. 496, Sec. 1. (SB 622) Effective January 1, 2024.)