2013/10/16 Council Agenda Packet

7 • • Insurance o Licensees are required to carry commercial liability insurance. Public Safety • Producer Structures o Rules allow producer operations in secure: indoor and outdoor grows as well as greenhouses • Traceability o LCB will employ a robust and comprehensive traceability system (software)that will trace product from seed/clone to sale. o LCB enforcement can match records to actual product on hand • Background Checks o Personal criminal history form o Fingerprinting of all potential licensees o Background checks of licensees and financiers • Point System o LCB will apply a disqualifying point system similar to liquor(exceptions for possession) • Violation Guidelines/Standard Administrative Procedures Act Guidelines o $1,000 criminal penalty for sales to a minor o Sets strict tiered system of violation record over a three year period • Group 1 public safety: • First violation: 10 day suspension or$2,500 • Second violation: 30 day suspension • Third violation: license cancellation • Local Authority Objections o Substantial weight will be given to a local authority during the renewal process based upon chronic illegal activity associated with the licensee's operation of the premises. • Child Resistant Packaging o Specific requirements for marijuana and marijuana-infused products in solid and liquid forms • Security and Safeguards o Alarm and surveillance video camera requirements (including minimum pixels and lockbox encasement) o Strict transportation and record keeping requirements(no third party transport of product) o Hours of operation limited to 8:00 a.m.to 12:00 a.m. • Advertising Restrictions o Law restricts advertising within 1,000 feet of schools, public parks,transit centers, arcades, and other areas where children are present. o May not contain statements or illustrations that are false or misleading, promotes overconsumption, represents that it has curative or therapeutic effects,depicts a child or may be appealing to children September 4,2013 34