Garner, Ginsburg & Johnsen, P.A. Law Offices

CANNABIS DELIVERY SERVICE LICENSING AND OPERATIONS

Not all states that have legalized cannabis authorized legal delivery of cannabis. Minnesota, however, is following the lead of states like Colorado, Massachusetts, Oregon, Michigan, and Nevada that do authorize delivery. A delivery license will not, however, come easy and those that obtain a delivery license are subject to a variety of operational requirements.

1. Authorized Actions: A cannabis delivery service licensee may purchase cannabis and hemp products from licensed cannabis businesses with a retail license or endorsement, and the licensee may “transport and deliver” cannabis and hemp products.
2. Additional Information Required: Aside from the standard application information that will have to be submitted by all applicants, those seeking a delivery service license will have to provide some additional information, including: (1) a list of all vehicles used in the delivery of cannabis and hemp products, along with each vehicle’s make, model, color, VIN, and license plate number; (2) proof of insurance for each vehicle; and (3) a business plan showing policies to avoid sales to persons under 21 and how to prevent the visibility of the products when being delivered from the vehicle to the recipient.
3. Multiple Licenses: A delivery service licensee may also hold a cannabis retailer, wholesaler, transporter, event organizer, and medical retail licenses (subject to the restrictions that each other license has). For example, while this provision seems to suggest a delivery service licensee can also hold a retailer and a wholesaler license, a retailer licensee may not hold a wholesaler license (outside of the micro- or mezzobusiness contexts). Applicants are going to have to plan carefully when they consider what license(s) they will seek.

When it comes to operations, delivery service licensees are subject to a variety of requirements and restrictions:

1. Age or Registry Verification: Before completing a delivery, the licensee must ensure that the customer receiving the delivery is at least 21 years of age or is enrolled in the medical registry program.
2. Records: The Office will establish record keeping requirements for delivery service licensees. We expect this will be similar to the requirements imposed on businesses delivering alcohol, which include: (1) an invoice delivery slip stating the name, date and address of the seller and the purchaser; (2) an itemized list on the invoice on the number, size, and brand of products to be delivered; (3) a signed invoice by the person accepting delivery and the deliverer to be retained by the delivery service. The products will probably have to be delivered directly to a person over 21 years of age or a person on the medical registry, and likely the deliverer will not be permitted to leave the products at a doorstep or in a P.O. Box.
3. Amount Limits: The Office will establish limits on the amount of products that a delivery service may transport. This may include maximum amounts within the vehicle at any given time, as well as maximum amounts permitted to be delivered to the same address, but we will have to see how the Office handles this in the rules and regulations.
4. Statewide Monitoring System: Just like every other licensee that is involved in the chain of custody prior to the product reaching the consumer, a delivery licensee will have to record the products delivered.
5. Storage Compartment: Storing products in the vehicle for delivery is not going to be easy. The law requires that the products be transported “in a locked, safe, and secure storage compartment that is part of the cannabis delivery service vehicle or in a locked storage container that has a separate key or combination pad.” 
6. Identifying Logos or Business Names: Like transporter licensees, delivery licensees are not permitted to wrap their vehicles using any image that depicts the type of products being transported, or even the name of the delivery service if the name suggests the vehicle is part of a cannabis delivery business.
7. Vehicles Subject to Inspection: A delivery vehicle is subject to inspection at any time. As a result, compliance is going to be important even if that means creating some inefficiencies. For example, if a delivery driver has two deliveries to make and the recipients live next door to one another, the deliverer will still essentially have to make two stops. In other words, the deliverer will have to open the locked container, take out one order, leave the second order in the container, lock the container, and then deliver the product to the first recipient. Only after that is complete can the deliverer go back, open the locked container, and deliver the second recipient’s order to the house next door.

Delivery is likely going to be a big business for various licensees, and it will be important not only to pay attention to the statute (described in summary above), but also the rules and regulations when issued.