California Cannabis Business Security Requirements
*Please note that this section encompasses only the compliance requirements relevant to business security. Many parts of the rules and regulation shave been removed to focus exclusively on the security compliance aspects. To view the full set of rules and regulations for California, click here!
California’s cannabis regulations are currently under emergency rulemaking and are expected to change. Please check back here for updates!
California Business Security Requirements for Cannabis Licensees
You can view the program webpage here.
5002. Annual License Application Requirements
- (29) All licensee applications shall include a detailed description of the applicant’s operating
procedures including the following (if applicable):
- (D) Security Procedures
- The applicant’s procedure for allowing individuals access to the premises.
- A description of the applicant’s video surveillance system – including camera placement and procedures for the maintenance of video surveillance equipment.
- How the applicant will ensure that all access points to the premises will be secured, including the use of security personnel.
- A description of the applicant’s security alarm system.
5006. Premises Diagram
- (a) An applicant shall submit to the Bureau, with the application, a complete and detailed diagram of the proposed premises. The diagram shall be used by the Bureau to determine whether the premises meets the requirements under this division and the Act. The Bureau shall deny an application if the premises does not qualify for licensure pursuant to Business and Professions Code section 26057.
- (b) The diagram shall show the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, Bureau of Cannabis Control Regular Regulations Text 15-Day Notice October 2018 – Page 12 of 152 rooms, windows, and doorways, and shall include a brief statement or description of the principal activity to be conducted therein.
- (c) The diagram shall show and identify commercial cannabis activities that will take place in each area of the premises, and identify limited-access areas. Commercial cannabis activities that shall be identified on the diagram include the following, if applicable to the business operations: storage, batch sampling, loading or unloading of shipments, packaging and labeling, customer sales, loading for deliveries, extraction, infusion, cultivation, and processing.
- (d) The diagram shall show where all cameras are located and assign a number to each camera for identification purposes unless the premises is exempt from the video surveillance requirement pursuant to section 5315 of this division.
5033. Storage of Inventory
- (a) All inventory stored on the licensed premises shall be secured in a limited-access area.
5036. Notification of Theft, Loss, and Criminal Activity
- (a) A licensee shall notify the Bureau and local law enforcement within 24 hours of discovery of any of the following situations:
- (1) The licensee discovers a significant discrepancy, as defined in section 5034 of this division, in its inventory.
- (2) The licensee discovers diversion, theft, loss, or any other criminal activity pertaining to the operations of the licensee.
- (3) The licensee discovers diversion, theft, loss, or any other criminal activity by an agent or employee of the licensee pertaining to the operations of the licensee.
- (4) The licensee discovers loss or unauthorized alteration of records related to cannabis goods, customers, or the licensee’s employees or agents.
- (5) The licensee discovers any other breach of security.
- (b) The notification to the Bureau pursuant to subsection (a) of this section shall be in writing submitted on the Notification and Request Form, BCC-LIC-027, which is incorporated herein by reference, and shall include the date and time of occurrence of the theft, Bureau of Cannabis Control Regular Regulations Text 15-Day Notice October 2018 – Page 38 of 152 loss, or criminal activity, the name of the local law enforcement agency that was notified, and a description of the incident including, where applicable, the item(s) that were taken or lost.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code
Article 5. Security
§ 5042. Access to Limited-Access Areas
- (a) Licensees shall ensure that any person on the licensed premises, except for employees and contractors of the licensee, are escorted at all times by the licensee or at least one employee of the licensee when in the limited-access areas of the premises.
- (f) Entrances to all limited-access areas shall have a solid door and a lock meeting the requirements of section 5046 of this division. The door shall remain closed when not in use during regular business hours.
5043. Licensee Employee Badge Requirement
All agents, officers, or other persons acting for or employed by a licensee shall display a laminated or plastic-coated identification badge issued by the licensee at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the licensee’s “doing business as” name and license number, the employee’s first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee’s face and that is at least 1 inch in width and 1.5 inches in height.
5044. Video Surveillance System
- (a) Each licensed premises shall have a digital video surveillance system with a minimum camera resolution of 1280 × 720 pixels.
- (b) The surveillance-system storage device or the cameras shall be transmission control protocol (TCP) capable of being accessed through the internet.
- (c) The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance.
- (d) Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the licensed premises, and allows for the clear and certain identification of any person and activities in all areas required to be filmed under subsection (e).
- (e) Areas that shall be recorded on the video surveillance system include the following:
- (1) Areas where cannabis goods are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the licensed premises;
- (2) Limited-access areas;
- (3) Security rooms;
- (4) Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; and
- (5) Entrances and exits to the licensed premises, which shall be recorded from both indoor and outdoor vantage points.
- (f) Retailers shall also record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.
- (g) Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second (FPS).
- (h) The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering or theft.
- (i) Surveillance recordings shall be kept for a minimum of 90 days.
- (j) Surveillance recordings are subject to inspection by the Bureau and shall be kept in a manner that allows the Bureau to view and obtain copies of the recordings at the licensed premises immediately upon request. The licensee shall also send or otherwise provide copies of the recordings to the Bureau upon request within the time specified by the Bureau.
- (k) Recorded images shall clearly and accurately display the time and date. Time is to be
measured in accordance with the United States National Institute Standards and Technology standards.
- (l) The video surveillance system shall be equipped with a failure notification system that provides notification to the licensee of any interruption or failure of the video surveillance system or video surveillance-system storage device.
- (1) Each applicant or licensee shall disclose on their premises diagram where the surveillance recordings are stored.
- (2) Each applicant or licensee shall include in their security operating procedures, submitted with the application pursuant to section 5002(c)(29)(D) of this division, an explanation of how the video surveillance system will be shared, including who is responsible for monitoring the video footage and storing any video recordings.
- (3) All licensees shall have immediate access to the surveillance recordings to produce them pursuant to subsection (j)(i) of this section.
- (4) All licensees shall be held responsible and subject to discipline for any violations of the video surveillance requirements.
5045. Security Personnel
- (a)A retail licensee or microbusiness licensee that is engaged in retail sale shall hire or contract for security personnel to provide security services for the licensed retail premises. All security personnel hired or contracted for by the licensee shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.
- (b) Notwithstanding subsection (a) of this section, a licensed non-storefront retailer or licensed microbusiness who is not engaged in storefront retail sale is not required to hire or contract for security personnel.
- (c) If multiple licensed premises are contained within the same building, security personnel may be shared by all of the licensees to cover the entire building under the following conditions:
- (1) Each licensee shall include in their security operating procedures, submitted with the application pursuant to section 5002(c)(29)(D) of this division, an explanation of how security personnel will be shared, including who is responsible for employing or contracting the security personnel.
- (2) All licensees shall be held responsible and subject to discipline for any violations of the security personnel requirements.
A licensee shall ensure that the limited-access areas described in section 5042 of this division can be securely locked using commercial-grade, nonresidential door locks. A licensee shall also use commercial-grade, nonresidential door locks on all points of entry and exit to the licensed Premises.
5047. Alarm System
- (a) A licensee shall maintain an alarm system as defined in Business and Professions Code section 7590.1(n) at the licensed premises.
- (b) A licensee shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system.
- (c) Upon request, a licensee shall make available to the Bureau all information related to the alarm system, monitoring, and alarm activity.
- (d) If multiple licensed premises are contained within the same building, a single alarm system covering the entire building may be used by all of the licensees under the following conditions:
- (1) Each licensee shall include in their security operating procedures, submitted with the application pursuant to section 5002(c)(29)(D) of this division, an explanation of how the alarm system will be shared, including who is responsible for contracting with the alarm company.
- (2) All licensees shall have access to and be able to provide the information under subsection (c) of this section.
- (3) All licensees shall be held responsible and subject to discipline for any violations of the alarm system requirements.
5403.1 Requirements While Not Open for Business
At any time the licensed premises is not open for retail sales, a licensed retailer shall ensure that:
- (a) The licensed premises is securely locked with commercial-grade, nonresidential door locks as defined required in section 5046 of this division;
- (b) The licensed premises is equipped with an active alarm system pursuant to section 5047 of this division, which shall be activated when the licensed retailer or its employees are not on the licensed premises; and
- (c) Only employees of the licensee and other authorized individuals are allowed access to the licensed premises. For the purposes of this section, authorized individuals include individuals employed by the licensee as well as any outside vendors, contractors, or other individuals conducting business that requires access to the licensed premises.
You can view the program webpage here.