Cannabis Delivery Compliance: A Must-Read Guide

Delivering cannabis products is not like delivering pizzas or other food items. It’s different as cannabis delivery services are highly regulated and must comply with state and federal laws. 

The conflict between these two levels of governance, where cannabis might be legal in a state but remains illegal federally, creates a challenging landscape for businesses.

This guide is designed to help you navigate these complexities with ease. It offers insights into the latest regulations and provides detailed examples of how compliance requirements vary from state to state. 

Additionally, we’ll explore how companies leverage technology, such as cannabis delivery management software, to stay compliant while enhancing operational efficiency. 

A Pandemic Push: Impact of COVID -19 Pandemic to Boost Cannabis Sales

While the COVID-19 pandemic has largely disrupted business channels worldwide, one sector that has grown immensely is cannabis deliveries. 

“Roy Bingham, the CEO of cannabis retail sales tracking platform BDSA, reported that the delivery and curbside pickup sales jumped to 40% of all U.S. Marijuana sales in the spring, compared to 20% of all sales pre-pandemic.” (Source: Forbes)

In response to the pandemic, cannabis delivery operators swiftly adjusted their business models to ensure safety and accessibility. 

Beyond implementing curbside pickups and home deliveries, many operators revamped their online ordering systems to handle increased demand. They introduced contactless payment methods to minimize physical interactions.

These changes were crucial for compliance with health regulations and catered to the evolving consumers’ rising demand for convenience and safety.

Cannabis Delivery Operations: Federally Prohibited

While many state authorities have decriminalized and even legalized cannabis use, production, and sales, it remains classified as a Schedule I controlled substance at the federal level. 

This classification means it is considered to have a high potential for dependency and no accepted medical use. So, it is illegal to possess, distribute, or manufacture marijuana under federal law.

Despite this, there has been significant legislative progress. The Rohrabacher–Farr amendment, passed in 2014, restricts the Department of Justice from using federal funds to interfere with state medical marijuana programs. It provided a layer of protection for these programs. 

Furthermore, the 2018 Farm Bill made a historic amendment by removing hemp (defined as cannabis with less than 0.3% THC) from the Schedule I list. It allowed states to develop industrial hemp programs.

Cannabis Delivery Compliance: State-by-State Overview

Over the past decade, and especially after COVID-19, the cannabis industry has accelerated as state governments legalized the use, sale, or production of cannabis products. 

Remember that if you want to have a successful cannabis delivery business, adherence to these regulations is not an option but a compulsion. 

Let’s explore the specific requirements and regulations in different states. 

1. Alabama: The possession and use of medical cannabis is legal. However, it can only be consumed by qualified medical marijuana patients. The caregivers may possess medical marijuana but may not use it for themselves. No medical cannabis delivery regulations are in place yet.

2. Alaska: Residents of Alaska above 21 years old may use or possess both medical and recreational marijuana legally. However, delivering those products is not allowed. 

3. Arizona:  The Medical Marijuana Act authorized the use, possession, and delivery of medical marijuana for up to 2.5 ounces. Recreational marijuana is legal. However, delivery regulations are yet to be formulated.

4. Arkansas: Only the use of medical marijuana is allowed to qualifying patients and designated caregivers in Arkansas.

5. California: Assembly Bill 195 says that the Department of Cannabis Control (DCC) made an emergency regulation to implement track-and-trace requirements. This requires retail sales via delivery to be recorded in the California Cannabis Track and Trace System (CCTT) no later than April 21, 2023.

As per the California weed delivery rules, the California Bureau of Cannabis Control (BCC) made it compulsory for all cannabis delivery companies to obtain a state license. They must comply with all state laws and regulations, which include GPS tracking, real-time monitoring, and strict compliance with marijuana sale and distribution laws.

Cannabis companies started using GPS tracking devices on their vehicles to track drivers’ real-time locations to comply with these passed regulations. State regulators, in turn, monitor the deliveries and ensure they go to legally authorized locations only. This allows for easy identification of any potential illegal activity.

6. Colorado: The medical and recreational use of cannabis has been legal in Colorado since 2000 and late 2012, respectively. The Colorado Amendment 20 allows the use of marijuana in the state for approved patients with written medical consent.

Similarly, the Colorado Amendment 64 led to recreational legalization in December 2012 and state-licensed retail sales in January 2014.

7. Connecticut: Residents of 21 and above can possess up to 1.5 ounces of cannabis flowers or an equivalent amount of cannabis concentrates in public. If they are at their private residence, they can have up to five ounces.

8. Delaware: Medical marijuana has been legalized for adults aged 21 and above. Also, the registered compassion centers may conduct home deliveries to patients with prior approval from the Office of Medical Marijuana. On the other side, the civil penalty remains in place for underage individuals found with cannabis.

9. Florida: While recreational marijuana is illegal in Florida, medical marijuana delivery is allowed for registered patients.

10. Georgia: Recreational marijuana is illegal in Georgia. However, it has now been decriminalized in some cities, including Atlanta, Savannah, Athens, and Macon. Medical use of cannabis, on the other hand, is allowed in the form of cannabis oil containing less than 5% THC. 

11. Hawaii: Medical use of cannabis was legalized in Hawaii through the legislation passed in 2000. It was the first state to legalize the medical use of marijuana through a ballot initiative. However, recreational use is still illegal but decriminalized for possession of three grams or less. 

12. Idaho: Possession, use, or sale of marijuana, whether medical or recreational, is strictly prohibited and is considered illegal in Idaho.

13. Indiana: Recreational use is illegal; however, medical usage is allowed to an extent in Indiana.

14. Massachusetts: Medical use of marijuana is legal in Massachusetts. However, if you want to deliver recreational marijuana, cannabis delivery operators must apply for two types of cannabis business licenses: A marijuana courier or a Marijuana delivery operator license.

• Marijuana courier: With this license, holders can earn a fee for delivering cannabis products to consumers from licensed retailers or licensed medical dispensaries.
• Marijuana delivery operator: Holders of this license may buy and store wholesale cannabis products, as well as deliver them.

15. Milchigan: Medical cannabis has been legal in Michigan since December 4, 2008. It means patients may possess up to 2.5 oz with physician approval. Recreational use was legalized on December 6, 2018. This made it legal for adults above 21 to have 2.5 oz in public, 10 oz at home, and grow 12 plants.

The Cannabis Regulatory Agency (CRA) oversees all licensing and enforcement. Cannabis businesses must secure various licenses, including:

• Grower Licenses: Class A (≤500 plants), Class B (≤1,000), Class C (≤1,500)
• Processor License: For converting cannabis into products
• Provisioning Center License: For sales to medical patients/caregivers
• Secure Transporter License: For cannabis transport and storage
• Safety Compliance Facility License: For product testing

Delivery operations must also follow rigorous inventory, secure transport, customer verification, and record-keeping protocols. You must secure all required licenses from CRA and local authorities and track inventory using strict record-keeping systems. 

It is also mandatory to label your package keeping rigorous guidelines in mind. Moreover, you can use only approved vehicles for secure transportation.

Operators must verify customer age and identity before every delivery. They must follow designated delivery zones and operating hours. Detailed delivery logs must be maintained for regular audits. Staff must receive comprehensive compliance training.

16. Nevada: Medical cannabis has been legal since 2000, allowing patients up to 2.5 oz every 14 days. Recreational use became legal in 2016, permitting adults 21+ to carry 1 oz.

The Cannabis Compliance Board (CCB) oversees licensing and enforcement across Nevada. Businesses must obtain:

• Cultivation License – For growing cannabis plants
• Production License – For manufacturing cannabis products
• Retail Store License – For selling cannabis to consumers
• Distributor License – For transporting cannabis between businesses
• Testing Laboratory License – For ensuring product safety and compliance

Delivery services must verify customer ID, maintain records, and use licensed vehicles. Nevada requires GPS tracking, seed-to-sale inventory tracking, and strict record-keeping. Deliveries are allowed only to private residences, not gaming establishments. Vehicles must have locked cargo areas, and third-party deliveries need board approval.

17. New York: Launching a cannabis delivery service in New York is now possible after legalization in 2021. However, strict rules apply for both business operators and delivery drivers. Operators must secure the right licenses and set up compliant locations. They need a Conditional Adult-Use Retail Dispensary (CAURD) license. They must also have proper zoning and occupancy proof. High-end security is required. This includes alarms, video surveillance, and biometric locks.

Key adherence points include:

For Business Operators:
• Source products only from licensed distributors.
• Maintain a compliant location with proper zoning and occupancy documents.
• Implement strong security measures.

For Delivery Drivers:
• Drivers must be at least 21 years old and pass background checks.
• Deliveries must be prepaid and sent only to residential addresses.
• Do not deliver in public places or inside vehicles.
• Follow daily limits on cannabis quantities.

18. Oregon: Similar to Colorado, Oregon made the recreational use of cannabis legal. However, in both the cases, Colorado and Oregon, there were strict regulations for cannabis delivery. 

The Colorado Department of Revenue’s Marijuana Enforcement Division (MED) and  Oregon Liquor Control Commission (OLCC) require all marijuana delivery companies to obtain a state license and comply with all state laws and regulations. This includes strict GPS tracking and real-time monitoring during deliveries, similar to California.

Also, drivers delivering cannabis products in Colorado and Oregon must be at least 21 years old. Deliveries must be made only to private residences, not in public places like parks or streets. 

Ensure your delivery drivers verify the age of the person receiving the delivery by checking a valid government-issued ID. They must also ensure that the delivery address matches the ID.

Check How Businesses Are Handling Cannabis Delivery Compliance

Cannabis dispensaries, particularly smaller ones, often lack an in-house delivery management department to fulfill orders. They may also find third-party delivery services too costly.

For instance, Upper, an advanced cannabis delivery software, helps manage and track drivers, plan and optimize routes, fulfill deliveries, and ensure adherence to cannabis delivery laws.

Here are a few perks of integrating an auto-pilot like Upper:

• Enhanced compliance: Advanced proof of delivery and age verification features capture signatures and ID images for every transaction, ensuring legal compliance.
• Optimized routes: Save time and reduce fuel costs with Upper’s advanced route optimization that accounts for traffic conditions and delivery windows.
• Real-time tracking: Monitor your delivery fleet in real-time to ensure timely and secure deliveries.
• Efficient dispatching: Streamline dispatch operations by assigning routes based on driver availability and making real-time adjustments.
• Improved customer satisfaction: Provide customers with accurate ETAs and real-time delivery updates, enhancing their delivery experience.
• Capacity optimization: Adjust cannabis load to legally regulated amounts (e.g., 1 ounce, 1.5 ounces), preventing overloading and ensuring compliance with state laws.
• Data-driven insights: Leverage detailed reports to optimize your supply chain and make informed business decisions.
• Zoning: Create restricted delivery zones so you can ensure no optimized passes through that to avoid penalties.

Before purchasing, experience Upper continuously for 7 days without any cost. No credit card details are required.

Conclusion

Navigating the regulatory landscape of cannabis delivery requires careful attention to detail and an understanding of both local and national laws. With the right tools, like Upper, businesses can ensure compliance, optimize operations, and ultimately provide exceptional service to their customers. 

Embrace technology to simplify complexities and stay ahead in the rapidly evolving cannabis market. Start your journey towards seamless compliance with a 7 days free trial of Upper and experience firsthand how advanced route planning software can transform your routing operations to delivery on time.