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2 <br /> O Insurance <br /> o Licensees are required to carry commercial liability insurance. <br /> Public Safety <br /> • Producer Structures <br /> o Rules allow producer operations in secure: indoor and outdoor grows as well as greenhouses <br /> O Traceability <br /> o LCB will employ a robust and comprehensive traceability system (software)that will trace product from <br /> seed/clone to sale. <br /> o LCB enforcement can match records to actual product on hand <br /> • Background Checks <br /> o Personal criminal history form <br /> o Fingerprinting of all potential licensees <br /> o Background checks of licensees and financiers <br /> O Point System <br /> o LCB will apply a disqualifying point system similar to liquor(exceptions for possession) <br /> O Violation Guidelines/Standard Administrative Procedures Act Guidelines <br /> o $1,000 criminal penalty for sales to a minor <br /> o Sets strict tiered system of violation record over a three year period <br /> Group 1 public safety: <br /> a First violation: 10 day suspension or$2,500 <br /> O Second violation: 30 day suspension <br /> a Third violation: license cancellation <br /> o Local Authority Objections <br /> o Substantial weight will be given to a local authority during the renewal process based upon chronic <br /> illegal activity associated with the licensee's operation of the premises. <br /> • Child Resistant Packaging <br /> o Specific requirements for marijuana and marijuana-infused products in solid and liquid forms <br /> • Security and Safeguards <br /> o Alarm and surveillance video camera requirements (including minimum pixels and lockbox <br /> encasement) <br /> o Strict transportation and record keeping requirements(no third party transport of product) <br /> o Hours of operation limited to 8:00 a.m.to 12:00 a.m. <br /> o Advertising Restrictions <br /> o Law restricts advertising within 1,000 feet of schools, public parks,transit centers, arcades, and other <br /> areas where children are present. <br /> o May not contain statements or illustrations that are false or misleading, promotes overconsumption, <br /> represents that it has curative or therapeutic effects, depicts a child or may be appealing to children <br /> September 4,2013 <br /> 12 <br />