N.Y. Comp. Codes R. & Regs. tit. 9 § 125.8

Current through Register Vol. 46, No. 36, September 4, 2024

Section 125.8 - Inventory and Tracking

(a) Licensees shall track all physical inventory of cannabis in an electronic real-time inventory tracking system as determined by the Office. The inventory tracking system shall be capable of showing any cannabis that has been released for sale, to allow for a total recall of all cannabis if necessary. The licensee shall:

(1) accurately record all inventory in the inventory tracking system, including identification of base or starting material(s) used to create each batch or lot of cannabis or cannabis products;

(2) maintain, in real-time, at a minimum, the following information, in the inventory tracking system:

(i) batch or lot unique identifiers for cannabis and cannabis products;

(ii) a complete cannabis and cannabis product inventory, as well as inventory adjustments, from cultivation, processing, transport, laboratory testing, distribution, waste, sale, disposal, product return, or any other activity. The complete inventory shall include, as applicable, all seeds, plant tissue, seedlings, clones, plants, lots of useable cannabis or trim, leaves, other plant material, cannabis extract, cannabis products, and cannabis waste;

(iii) for processors, any additives or ingredients used in the processing of cannabis;

(iv) all samples sent to an independent testing laboratory, any sample of unused portion of a sample returned to a licensee, and the quality assurance test results in accordance with Part 130 of this Title;

(v) all samples provided to another licensee as authorized by the Office;

(vi) samples provided to the Office or their designee for quality assurance compliance review; and

(vii) any other information as determined by the Office; and

(3) utilize an inventory tracking system that is capable of integrating with the Office's inventory tracking system of record in a form and manner as determined by the Office;

(4) physically tag or label all cannabis, cannabis products, cannabis extract, seeds, plant tissue, clone lots, seedlings, immature cannabis plants, and cannabis waste with the unique identifier generated by the inventory tracking system;

(5) utilize a standard of measurement that is supported by the inventory tracking system to track all cannabis and cannabis product. A scale used to weigh product prior to entry into the inventory tracking system shall be approved for commercial use in accordance with New York State Bureau of Weights and Measures;

(6) track, at a minimum, the following data elements for each activity performed with cannabis and cannabis products:

(i) the type of cannabis or cannabis products;

(ii) the weight, volume, or count of the cannabis or cannabis products;

(iii) the date of activity;

(iv) the lot unique identifier assigned to the cannabis or cannabis products;

(v) the identification of the employee performing the action in the inventory tracking system;

(vi) the type of activity being performed; and

(vii) any other information as determined by the Office; and

(7) review the licensee's authorized users and remove any users who are no longer authorized to enter information into the inventory tracking system; and

(8) record nursery and cultivation activities as follows:

(i) record the following activities in the inventory tracking system within three (3) calendar days of occurrence:

(a) planting of an immature cannabis plant lot;

(b) moving immature cannabis plants to a designated canopy, flowering of an individual plant, or application of a plant tag to an immature cannabis plant;

(c) destroying or disposing of an immature or mature cannabis plant;

(d) harvesting of a mature cannabis plant, or portion thereof; and

(e) application of pesticides.

(ii) report in the inventory tracking system for each harvested plant or portion thereof, or harvest batch:

(a) the weight of each harvest batch, which shall indicate whether the weight is the wet weight or dry weight in the report;

(b) the weight of cannabis waste associated with each harvest batch;

(c) the unique name of the harvest batch;

(d) the initiating date of the harvest. For purposes of this section, an initiating date of the harvest shall be the month, day, and year the first mature cannabis plants in the harvest batch were cut, picked, or removed from the soil or other growing media; and

(e) the packaging and repackaging of cannabis or cannabis products.

(b) Loss of System Access. If at any point a licensee loses access to the inventory tracking system for any reason, the licensee shall keep and maintain comprehensive records detailing all inventory tracking activities that were conducted during the loss of access.

(1) Once access is restored, all inventory tracking activities that occurred during the loss of access shall be entered into the inventory tracking system.

(2) A licensee shall document when access to the system was lost and when it was restored.

(3) A licensee shall not initiate transport for, receive, transfer or deliver any cannabis or cannabis products to another licensed entity until either such time as access is restored and all information is recorded into the inventory tracking system or such time the licensee is approved by the Office to conduct such activities during the loss of access.

(4) Within three (3) calendar days of restored access, enter all licensed cannabis activity that occurred during the loss of access into the inventory tracking system.

(5) Document the cause for loss of access, as well as the dates and times for when the loss occurred.

(6) Document the dates and times for when access to the inventory tracking system was restored.

(c) Initial Inventory. A licensee shall conduct an initial comprehensive inventory of all cannabis and cannabis product in the possession of the licensee, including cannabis available for cultivation, cannabis products for sale, immature and mature cannabis plants, and unusable cannabis, at the licensed premises on the date the licensee first engages in licensed activities.

(1) Inventory shall include damaged, defective, expired, or adulterated cannabis awaiting disposal, including the name, the quantity, and the reasons for which the cannabis licensee is maintaining the cannabis.

(2) The initial comprehensive inventory shall be reported to the Office utilizing the inventory tracking system.

(d) Licensees shall establish inventory controls and procedures and conduct comprehensive inventories of cannabis and cannabis products which shall include the following;

(1) maintaining real-time inventory tracking;

(2) conducting a monthly inventory audit of all cannabis and cannabis products;

(3) conducting an annual inventory audit at least once every year from the date of the previous inventory; and

(4) recording at a minimum, the following, in the inventory tracking system;

(i) the name(s) and signature(s) or electronic signature(s) of employee(s) who conducted the inventory audit;

(ii) the date of the inventory audit;

(iii) summary of inventory findings; and

(iv) any other information as determined by the Office.

(e) A licensee, upon becoming aware of any significant discrepancy(s) identified during an inventory audit, shall notify the Office no later than twenty-four (24) hours after discovery of the event in a manner prescribed by the Office. Upon comparison of the licensee's actual inventory to the licensee's anticipated inventory, as determined by the inventory tracking system, a significant discrepancy, for purposes of this subdivision, shall mean:

(1) for a cooperative, tier 3 cultivator, tier 4 cultivator, tier 5 cultivator, ROD, or ROND licensee, a difference in the actual inventory compared to the anticipated inventory of two (2) percent of the anticipated inventory or greater;

(2) for a retail dispensary, delivery, or on-site consumption licensee, a difference in the actual inventory compared to the anticipated inventory of:

(i) five (5) percent of the anticipated inventory or greater, if the inventory tracking system anticipated an inventory of 1,000 cannabis products or fewer; or

(ii) two (2) percent of the anticipated inventory or greater, if the inventory tracking system anticipated an inventory of more than 1,000 cannabis products; or

(iii) for a nursery, tier 1 cultivator, tier 2 cultivator, distributor, processor, or microbusiness licensee, a difference in the actual inventory compared to the anticipated inventory of five (5) percent of the anticipated inventory or greater, unless such licensee also holds a cooperative, tier 3 cultivator, tier 4 cultivator, tier 5 cultivator, ROD, or ROND license at the time the discrepancy is discovered, in which case a significant discrepancy shall mean a difference in the actual inventory compared to the anticipated inventory of two (2) percent of the anticipated inventory or greater;

(f) A nursery, cultivator, processor, cooperative, ROD, ROND, or microbusiness licensee shall maintain records identifying each agricultural input used in a nursery area, propagation area, or canopy area and each ingredient used in processing. Records shall include:

(1) the date of receipt;

(2) the vendor's name and address;

(3) the name of the ingredient or agricultural input;

(4) the vendor's license, registration or other operating identification number, as applicable;

(5) the grade of the ingredient or agricultural input, as applicable;

(6) the quantity received;

(7) if an agricultural input, the active ingredients, purpose of use, application rate and date, and the name of the person applying the agricultural input;

(8) if a pesticide that is not a general use pesticide that is approved by the Office for private application, the New York State Department of Environmental Conservation certification number of the person applying the pesticide; and

(9) any other information determined by the Office.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 125.8

Adopted New York State Register September 27, 2023/Volume XLV, Issue 39, eff. 9/27/2023