Recreational Marijuana Delivery
A marijuana retailer, or a marijuana microbusiness, (collectively “retailer”) is allowed to deliver its marijuana product to a person’s home or to a marijuana consumption establishment. The Marijuana Regulatory Agency promulgated several rules regarding delivery, which is the basis of this article. I will go through the entire process, which begins with State authorization of a “delivery employee.” We will then elaborate on the ordering and delivery process. Failure to abide by these rules could result in revocation of the retailer license or other sanctions provided by the state.
State Authorization of the "Delivery Employee"
A marijuana retailer may employ an individual to engage in the delivery of a marijuana product for sale or transfer to an individual 21 years of age or older. The delivery employee must be at least 21 years of age and is required to be employee of the marijuana retailer. Retail stores need authorization from the State for their delivery procedures and further authorization of the delivery employee. Essentially, the State has to approve what procedures the retail establishment is taking to maintain compliance with delivery rules, and must approve who is making those deliveries. A marijuana delivery employee cannot deliver for more than one marijuana business. Only after authorization from the State may a retailer begin delivery.
Ordering Marijuana
A retailer may deliver its product to a residential address or a consumption establishment address. A consumption establishment permits adults 21 years of age and older to consume marijuana products at a specified location. Therefore, if at a consumption establishment, patrons may order marijuana to the consumption establishment location to consume on site. Retailers may accept an online order request and payment for the order may be online as well. This would permit the ambitious retailer to create a marijuana delivery app for consumers to buy “online” as well as provide other means of purchasing online (via website, etc.). Every transaction must be recorded in the marijuana monitoring system.
The maximum amount allowed to be ordered in a “single transaction” is 2.5 ounces and no more than 15 grams of marijuana concentrate. Therefore, if two friends at the same location wanted to order 2.5 ounces each, each purchase would constitute a “single transaction” and the marijuana would be delivered accordingly. There is a limitation, however, for how much marijuana a delivery employee can carry at one time. If making multiple deliveries, the employee can only possess up to 15 ounces of marijuana or 60 grams of concentrate at one time. Once the order has been submitted, delivery ensues.
Delivery Process
The delivery process begins when the delivery employee leaves the store with the product for delivery and ends when the delivery employee returns. Once the delivery process begins, delivery employees are subject to the rules and requirements listed in Rule 57 of the Marijuana Regulatory Agency's administrative rules, which will be discussed below.
All transactions must be completed in one business day and any money collected during the delivery process must be returned to the store. While making deliveries, the delivery employee may only travel from the retail store to the delivery address and back to the retailer. Additionally, deliveries must occur within the retailer’s ordinary course of business hours.
When the employee leaves the retail store for delivery, he or she must carry a copy of the employee’s identification number, the retailer’s retail license number, the address of the marijuana retailer location, and a copy of the delivery log. The delivery log, which may be a hard copy or electronic format, must include (1) date and time delivery began and ended; (2) name of delivery employee; (3) amount of marijuana allowed to be possessed for delivery; (4) lot number and strain of the product; (4) signature of customer who accepted delivery; (5) any refuel deviations or emergency stops.
Additionally, the delivery employee must maintain a physical or electronic copy of the delivery request and must show the agency or police immediately upon request. Furthermore, the delivery vehicle must have a GPS device that is either permanently or temporarily affixed to the vehicle while in operation. The device must be active and in the possession of the delivery employee at all times during delivery. This means, for example, that even if you know where the delivery location is, you nevertheless need to input the address on a GPS device whether that device is through Carplay, a part of the car’s GPS, or on your phone affixed to a vent or other phone holder that can be accessed while driving. In this regard, the retailer must also be able to identify the geographic location of all delivery vehicles and delivery employees at all times during delivery. When out for delivery, the delivery employee can only deliver to the individual who placed the order at the address provided.
Once the delivery employee has reached the particular address, he or she must confirm the ID of the person physically receiving the marijuana. This can be completed, for example, by writing down the age, birthdate, and city of the person’s residence listed on their license. Ultimately, the delivery employee must verify the person and person’s age upon delivery. Once the ID is confirmed, the delivery employee may accept cash payment. The retailer, however, must have a procedure, subject to agency approval, that establishes the amount of money a delivery employee is allowed to carry at any one time during the delivery process.
When the exchange has been completed, retailers must maintain records that (1) confirm the customer presented their driver’s license with photo ID; (2) validation that the address is a residential address (i.e. when you order pizza online and must choose between a “residential” or “commercial” address) or at a Designated Consumption Establishment address by an individual at the address; (3) Documentation that the customer consented to the delivery; and (4) Vehicle records used for delivery including: vehicle make, model, color, VIN, license plate number, and vehicle registration. As for these four requirements, a template order sheet should suffice.
Beyond these important rules, other rules before, during, and after the delivery process could also apply. For simplicity, the following list should be referenced as additional rules retailers need to consider when formulating delivery procedures to be approved by the state:
• A delivery employee can only make ten (10) deliveries or less per trip before returning to the store.
• A delivery employee cannot deviate from the ten deliveries limit or from the delivery path.
• A delivery employee may refuel the delivery vehicle during a stop, but it must be reported and documented in the delivery log.
• A delivery employee cannot carry marijuana product valued in excess of the amount of the customer’s order.
• If there are multiple orders, they must be packaged separately per delivery order and cannot be comingled during the delivery. Essentially, you cannot package the marijuana when the delivery process begins – it must be packaged and ready to go at the retail store before the delivery process begins.
• While out for delivery, the delivery employee must have access to a cell phone to be able to call the retailer.
• While out for delivery, the delivery employee cannot leave marijuana product in the car unattended unless the car is locked and has a working car alarm.
• The retailer must notify the Marijuana Regulatory Agency, and police, of any theft, loss of product, or criminal activity – as well as any potential violation of delivery procedure.
Conclusion
As one can see, the delivery process requires complex procedures to be in place to maintain compliance. If you would like help implementing compliance procedures, or need advice about compliance, please call Mekani Orow Mekani Shallal & Hindo at 248-223-9830 and ask for Anthony Shallal.
A marijuana retailer, or a marijuana microbusiness, (collectively “retailer”) is allowed to deliver its marijuana product to a person’s home or to a marijuana consumption establishment. The Marijuana Regulatory Agency promulgated several rules regarding delivery, which is the basis of this article. I will go through the entire process, which begins with State authorization of a “delivery employee.” We will then elaborate on the ordering and delivery process. Failure to abide by these rules could result in revocation of the retailer license or other sanctions provided by the state.
State Authorization of the "Delivery Employee"
A marijuana retailer may employ an individual to engage in the delivery of a marijuana product for sale or transfer to an individual 21 years of age or older. The delivery employee must be at least 21 years of age and is required to be employee of the marijuana retailer. Retail stores need authorization from the State for their delivery procedures and further authorization of the delivery employee. Essentially, the State has to approve what procedures the retail establishment is taking to maintain compliance with delivery rules, and must approve who is making those deliveries. A marijuana delivery employee cannot deliver for more than one marijuana business. Only after authorization from the State may a retailer begin delivery.
Ordering Marijuana
A retailer may deliver its product to a residential address or a consumption establishment address. A consumption establishment permits adults 21 years of age and older to consume marijuana products at a specified location. Therefore, if at a consumption establishment, patrons may order marijuana to the consumption establishment location to consume on site. Retailers may accept an online order request and payment for the order may be online as well. This would permit the ambitious retailer to create a marijuana delivery app for consumers to buy “online” as well as provide other means of purchasing online (via website, etc.). Every transaction must be recorded in the marijuana monitoring system.
The maximum amount allowed to be ordered in a “single transaction” is 2.5 ounces and no more than 15 grams of marijuana concentrate. Therefore, if two friends at the same location wanted to order 2.5 ounces each, each purchase would constitute a “single transaction” and the marijuana would be delivered accordingly. There is a limitation, however, for how much marijuana a delivery employee can carry at one time. If making multiple deliveries, the employee can only possess up to 15 ounces of marijuana or 60 grams of concentrate at one time. Once the order has been submitted, delivery ensues.
Delivery Process
The delivery process begins when the delivery employee leaves the store with the product for delivery and ends when the delivery employee returns. Once the delivery process begins, delivery employees are subject to the rules and requirements listed in Rule 57 of the Marijuana Regulatory Agency's administrative rules, which will be discussed below.
All transactions must be completed in one business day and any money collected during the delivery process must be returned to the store. While making deliveries, the delivery employee may only travel from the retail store to the delivery address and back to the retailer. Additionally, deliveries must occur within the retailer’s ordinary course of business hours.
When the employee leaves the retail store for delivery, he or she must carry a copy of the employee’s identification number, the retailer’s retail license number, the address of the marijuana retailer location, and a copy of the delivery log. The delivery log, which may be a hard copy or electronic format, must include (1) date and time delivery began and ended; (2) name of delivery employee; (3) amount of marijuana allowed to be possessed for delivery; (4) lot number and strain of the product; (4) signature of customer who accepted delivery; (5) any refuel deviations or emergency stops.
Additionally, the delivery employee must maintain a physical or electronic copy of the delivery request and must show the agency or police immediately upon request. Furthermore, the delivery vehicle must have a GPS device that is either permanently or temporarily affixed to the vehicle while in operation. The device must be active and in the possession of the delivery employee at all times during delivery. This means, for example, that even if you know where the delivery location is, you nevertheless need to input the address on a GPS device whether that device is through Carplay, a part of the car’s GPS, or on your phone affixed to a vent or other phone holder that can be accessed while driving. In this regard, the retailer must also be able to identify the geographic location of all delivery vehicles and delivery employees at all times during delivery. When out for delivery, the delivery employee can only deliver to the individual who placed the order at the address provided.
Once the delivery employee has reached the particular address, he or she must confirm the ID of the person physically receiving the marijuana. This can be completed, for example, by writing down the age, birthdate, and city of the person’s residence listed on their license. Ultimately, the delivery employee must verify the person and person’s age upon delivery. Once the ID is confirmed, the delivery employee may accept cash payment. The retailer, however, must have a procedure, subject to agency approval, that establishes the amount of money a delivery employee is allowed to carry at any one time during the delivery process.
When the exchange has been completed, retailers must maintain records that (1) confirm the customer presented their driver’s license with photo ID; (2) validation that the address is a residential address (i.e. when you order pizza online and must choose between a “residential” or “commercial” address) or at a Designated Consumption Establishment address by an individual at the address; (3) Documentation that the customer consented to the delivery; and (4) Vehicle records used for delivery including: vehicle make, model, color, VIN, license plate number, and vehicle registration. As for these four requirements, a template order sheet should suffice.
Beyond these important rules, other rules before, during, and after the delivery process could also apply. For simplicity, the following list should be referenced as additional rules retailers need to consider when formulating delivery procedures to be approved by the state:
• A delivery employee can only make ten (10) deliveries or less per trip before returning to the store.
• A delivery employee cannot deviate from the ten deliveries limit or from the delivery path.
• A delivery employee may refuel the delivery vehicle during a stop, but it must be reported and documented in the delivery log.
• A delivery employee cannot carry marijuana product valued in excess of the amount of the customer’s order.
• If there are multiple orders, they must be packaged separately per delivery order and cannot be comingled during the delivery. Essentially, you cannot package the marijuana when the delivery process begins – it must be packaged and ready to go at the retail store before the delivery process begins.
• While out for delivery, the delivery employee must have access to a cell phone to be able to call the retailer.
• While out for delivery, the delivery employee cannot leave marijuana product in the car unattended unless the car is locked and has a working car alarm.
• The retailer must notify the Marijuana Regulatory Agency, and police, of any theft, loss of product, or criminal activity – as well as any potential violation of delivery procedure.
Conclusion
As one can see, the delivery process requires complex procedures to be in place to maintain compliance. If you would like help implementing compliance procedures, or need advice about compliance, please call Mekani Orow Mekani Shallal & Hindo at 248-223-9830 and ask for Anthony Shallal.