HomeMy WebLinkAboutSLOCAL Roots_Compliance Report 06-20-2022CITY OF SAN LUIS OBISPO
COMPLIANCE INSPECTION
SUMMARY
On June 20, 2022, HdL Companies conducted an in-person compliance inspection at SLOCAL Roots, LLC.
This Q2-2022 inspection was designed to examine books and records relating to GPS tracking, inventory
security and storage, video surveillance, background applications, and evaluate the current status of the
location, and determine its compliance with state and local law. This was the 1st inspection conducted by
HdL for this business.
Recommendations made by HdL at the time of the inspection related to site security such as perimeter and
interior doors leading to and from limited-access areas be equipped with self-closing mechanism, having a
compliant visitors log to track authorized access of the facility, a detailed waste log to track when cannabis
product is rendered waste and removed from the property were addressed by the Licensee prior to the
writing of this report
HdL finds the Licensee COMPLIANT with state regulations at the time of the inspection. The observations
and recommendations below were discussed with the licensee.
RESULTS
15000.1 (9.10.040(A)(B)-SLMC) GENERAL REQUIREMENTS Compliant
a) Every person who conducts commercial cannabis activity shall obtain and maintain a valid license from
the Department for each separate premises at which commercial cannabis activity is conducted.
b) Commercial cannabis activity shall only be conducted between licensees. Licensed retailers and licensed
microbusinesses authorized to engage in retail sales may conduct commercial cannabis activity with
customers or nonprofits in accordance with this division.
c) The licensee shall only conduct commercial cannabis activities authorized by the license and on the
premises licensed for the activity.
d) All transfers of cannabis and cannabis product shall be conducted by a licensed distributor.
e) Licenses shall not be transferrable or assignable to another person or premises, except as provided in
section 26050.2 of the Business and Professions Code.
f) Applicants and licensees shall use their legal business name on all documents related to commercial
cannabis activity.
Observation: N/A
Inspection Date June 20, 2022, Announced, Staff Present
Inspection By Michelle Shaw
Business Name / DBA SLOCAL Roots, LLC
State Lic #: C10-0000952-LIC
Local Lic #: 118233
Business Address 3535 S. Higuera St.
San Luis Obispo, CA 93401
Business Type Type 10 – Retailer (No delivery services at this time)
Business Contact
Information
Austen Connella
3535 S. Higuera St.
San Luis Obispo, CA 93401
805) 439-1496
austen@slocalroots.store
Page 2 of 6
15000.7 (9.10.150(A)(B)-SLMC) STORAGE OF INVENTORY Compliant
a) All inventory stored on the Licensed premises shall be secured in a limited-access area.
b) All licensee shall not store cannabis goods outdoors.
b) Employee break rooms, changing facilities, and bathrooms shall be separated from all storage areas.
d) All cannabis and cannabis products must be stored on the licensed premises.
Observation: N/A
15006 PREMISES DIAGRAM Compliant
a) An applicant shall submit to the Department, with the application, a complete and detailed diagram of
the proposed premises.
b) The diagram shall show the boundaries of the property and the proposed premises to be licensed,
showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, and
doorways, and shall include a brief statement or description of the principal activity to be conducted
therein.
c) The diagram shall show and identify commercial cannabis activities that will take place in each area of
the premises and identify limited-access areas.
d) The diagram shall show where all cameras are located and assign a number to each camera for
identification purposes unless the premises is exempt from the video surveillance requirement pursuant
to section 15315 or section 15044 of this division.
Observation: N/A
15025 PREMISES REQUIREMENTS FOR RETAILERS AND MICROBUSINESS Compliant
a) Licensed retailers and licensed microbusinesses authorized to engage in retail sales shall only serve
customers who are within the licensed premises, or at a delivery address that meets the requirements
of this division.
1) The sale and delivery of cannabis goods shall not occur through a pass-out window or a slide-out tray
to the exterior of the licensed premises.
b) Alcoholic beverages as defined in Business and Professions Code section 23004 shall not be stored or
consumed on a licensed premises.
c) Any licensed retailer or microbusiness authorized to conduct retail sales that are adjacent to another
premises engaging in manufacturing, cultivation, or distribution shall be separated from those premises
by walls, and any doors leading to the cultivation, distribution, or manufacturing premises shall remain
closed.
Observation: N/A
15037 (9.10.130(D)(E)-SLMC; SLO Security Plan) GENERAL RECORD RETENTION REQUIREMENTS
Compliant
a) Licensees must keep and maintain records in connection with the licensed commercial cannabis business.
Records must be kept for at least seven years from the date of creation unless a shorter time is specified.
b) Records must be kept in a manner that allows the records to be produced for the Department in either
hard copy or electronic form.
c) Records must be legible and accurate. No person may intentionally misrepresent or falsify records.
d) Records must be stored in a secured area where the records are protected from debris, moisture,
contamination, hazardous waste, and theft.
Observation: N/A
15039 (9.10.060-SLMC) LICENSE POSTING REQUIREMENT Compliant
a) Upon issuance of any license, the licensee shall prominently display the license on the licensed premises
where it can be viewed by state and local agencies. If the licensed premises is open to the public, the
license shall be displayed in an area that is within plain sight of the public.
c) The QR Code Certificate displayed by a licensee, as required by subsection (b), shall be posted in the
front window of the licensed premises within three (3) feet of any public entrance to the licensed
premises, or in a locked display case mounted on the outside wall of the licensed premises within three
3) feet of any public entrance to the licensed premises.
Observation: N/A
Page 3 of 6
15042 (SLO Security Plan) PREMISES ACCESS REQUIREMENTS Compliant
a) For a premises that is not open to the public, the licensee shall establish and implement an identification
and sign-in/sign-out procedure for all persons accessing the premises, including authorized individuals,
suppliers, and visitors.
b) Licensees shall ensure that only employees of the licensee and other authorized individuals access the
limited-access areas of the licensed premises.
d) An individual who enters the limited-access area and is not employed by the licensee shall be escorted
by an employee of the licensee at all times while within the limited-access area.
e) A licensee shall maintain a record of all authorized individuals who are not employees of the licensee
who enter the limited-access area. The record shall include the name of the individual, the company
the individual works for, the reason the individual entered the limited-access area.
Observation: N/A
15043 (SLO Security Plan) LICENSEE EMPLOYEE BADGE REQUIREMENT Compliant
All agents, officers, or other persons acting for or employed by a licensee conducting retail sales or participating
in a temporary cannabis event shall display a laminated or plastic-coated identification badge issued by the licensee
at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include
the licensee’s “doing business as” name and license number, the employee’s first name, an employee
number exclusively assigned to that employee for identification purposes, and a color photograph of the
employee that clearly shows the full front of the employee’s face and that is at least 1 inch in width and 1.5
inches in height.
Observation: N/A
15044 (SLO Security Plan) VIDEO SURVEILLANCE SYSTEM Compliant
Shall at all times:
b) Effectively and clearly record images of the area under surveillance.
c) Each camera shall be permanently mounted and in a fixed location and clearly record activity occurring
within 20 feet of all points of entry and exit.
d) Areas that shall be recorded include the following:
1) Area where cannabis goods are weighed, packed, stored, loaded, and unloaded for transportation,
prepared, or moved within the licensed premises;
2) Limited-access areas;
3) Security rooms;
4) Areas storing a surveillance-system storage device with at least one camera recording the access
points to the secured surveillance recording area; and
5) Entrances and exits to the licensed premises shall be recorded from both indoor and outdoor vantage
points.
g) The physical media or storage device on which surveillance recordings are stored shall be secured in a
manner to protect the recording from tampering or theft.
h) Surveillance recordings shall be kept for a minimum of 90 calendar days.
j) Recording shall clearly and accurately display the time and date.
k) System should be equipped with a failure notification system.
l) The licensee shall disclose on their premises diagram where the surveillance recordings are stored.
Observation: N/A
15045 (SLO Security Plan) SECURITY PERSONNEL Compliant
A licensed retailer or licensed microbusiness authorized to engage in retail sales shall hire or contract
security personnel who are at least 21 years of age to provide on-site security services for the licensed retail
premises during the hours of operation. All security personnel hired or contracted for by the licensee shall
be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and
11.5 of Division 3 of the Business and Professions Code. All licensees shall be held responsible and subject
to discipline for any violations of the security personnel requirements.
Observation: N/A
Page 4 of 6
15046 (SLO Security Plan) LOCKS Compliant
A licensee shall ensure that all limited-access areas can be securely locked using commercial-grade,
nonresidential door locks. A licensee shall also use commercial-grade, nonresidential door locks on all points
of entry and exit to the licensed premises. This requirement does not apply to a licensed premises authorized
exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises.
Observation: N/A
15047 (9.10.130(C)(E)-SLMC; SLO Security Plan) ALARM SYSTEM Compliant
a) A licensee shall maintain an alarm system as defined in Business and Professions Code section 7590.1(c)
at the licensed premises. This requirement does not apply to a licensed premises authorized exclusively
for cultivation activities or the cultivation area of a licensed microbusiness premises.
Observation: N/A
15047.2 (9.10.130(C)(E)-SLMC; SLO Security Plan) GENERAL REQUIREMENTS Compliant
a) A licensee shall create and maintain an account within the track and trace system prior to engaging in
any commercial cannabis activity.
b) All commercial cannabis activity shall be accurately recorded in the track and trace system.
c) A licensee is responsible for the accuracy and completeness of all data and information entered. The
licensee is responsible for all actions taken by the designated account manager or other account users
while performing track and trace activities.
d) A person shall not intentionally misrepresent or falsify information entered into the track and trace
system.
Observation: N/A
15049 (9.10.130(C)SLMC; SLO Security Plan) TRACK AND TRACE REPORTING Compliant
a) All cannabis and cannabis products on the licensed premises shall be assigned a plant or package tag,
except for harvested plants that are being dried, cured, graded, or trimmed, as specified in this division,
and recorded in the track and trace system.
c) If a licensee rejects a partial shipment of cannabis goods pursuant to section 15052.1(b), the licensee
shall record the partial rejection in the track and trace system.
Observation: N/A
15051 TRACK AND TRACE SYSTEM RECONCILIATION Compliant
The licensee shall review the information recorded in the track and trace system at least once every 30
calendar days to ensure its accuracy, including, at a minimum: (1) Reconciling the on-hand inventory of
cannabis and cannabis products with the records in the track and trace system.
Observation: N/A
15400 (9.10.230(c)-SLMC) ACCESS TO RETAILER PREMISES Compliant
a) Access to the licensed premises of a retailer with only an A-designation shall be limited to individuals
who are at least 21 years of age.
b) Access to the licensed premises of a retailer with only an M-designation shall be limited to individuals
who are at least 18 years of age and have a valid physician’s recommendation for medicinal cannabis,
and individuals who are at least 21 years of age.
c) Access to the licensed premises of a retailer with both an A designation and an M designation may include
persons identified in subsections (a) and (b) of this section.
Observation: N/A
15403 (9.10.250(C)(1)-SLMC; SLO Security Plan) HOURS OF OPERATION Compliant
A licensed retailer shall sell and deliver cannabis goods only between the hours of 6:00 a.m. Pacific Time
and 10:00 p.m. Pacific Time.
Observation: N/A
Page 5 of 6
15424 (SLO Security Plan) INVENTORY RECONCILIATION Compliant
a) A licensed retailer shall be able to account for all of its inventory.
b) A licensed retailer shall verify that the licensed retailer’s physical inventory is consistent with the licensed
retailer’s records pertaining to inventory.
c) The result of inventory reconciliation shall be retained in the licensed retailer’s records and shall be made
available to the Department upon request.
d) If a licensed retailer identifies any evidence of theft, diversion, or loss, the licensed retailer shall notify
the Department and law enforcement pursuant to section 15036 of this division.
e) If a significant discrepancy as defined in section 15034 of this division is discovered between a licensed
retailer’s physical inventory and the licensed retailer’s inventory records, the licensed retailer shall notify
the Department and law enforcement pursuant to section 15036 of this division.
Observation: N/A
ORDINANCE
9.10.170 SLMC Compliant
City of San Luis Obispo Commercial Cannabis Licensee must comply with permit conditions of approval.
Observation: N/A
9.10.230 (c) SLMC Compliant
Every entrance to an “A” or “M” licensed commercial cannabis business shall be clearly and legibly posted
with the following notice: “ENTRY ONTO THESE PREMISES BY PERSONS UNDER 21 YEARS OF AGE IS
PROHIBITED BY LAW. VALID PHOTO ID REQUIRED.” Each letter of the notice should be at least two inches
high and clearly visible.
Observation: N/A
17.86.080 (E)(3) SLMC Compliant
Commercial Cannabis Business shall not create offensive odors detected from the outside of the business.
Commercial Cannabis Business shall be concealed from public view/no exterior evidence.
Observation: N/A
17.86.080 (E)(4)(e)(v) SLMC Compliant
Must include a sign inside the premises that states “Smoking, ingesting, vaping, eating or consuming
cannabis or cannabis products on this site or in a public place is prohibited.”
Observation: N/A
17.86.080 (E)(4)(e)(vi) SLMC Compliant
Must include a sign at each entrance of a retail storefront that prohibits persons under twenty-one years of
age from entering.
Observation: N/A
17.86.080 (E)(5) SLMC Compliant
No cannabis products/cannabis accessories may be displayed in windows or visible from the public right of
way or accessible to the general public.
Observation: N/A
17.86.080 (E)(5)(d) SLMC Compliant
Commercial cannabis business shall be concealed from public view/no exterior evidence.
Observation: N/A
SLO SECURITY PLAN Compliant
Windows shall be covered with a film or covering on the interior so that no cannabis, cannabis-related
products, or cannabis-related movement(s)* are visible from the outside.
Observation: N/A
SLO SECURITY PLAN Compliant
The fencing shall be of sufficient height and design as well as clear from holes and damage to prevent a
person from climbing through or over.
Observation: N/A
Page 6 of 6
SLO SECURITY PLAN Compliant
Gates shall be opened only long enough to allow one vehicle actively enter or exit. Gates shall not be left
open or unsecured.
Observation: N/A
SLO SECURITY PLAN Compliant after remediation
All non-public access entry/exit doors shall be equipped with a closing mechanism that will automatically
close the door when not held open by a person. At no time shall any device or object be used to hold the
door open or prevent it from shutting automatically.
Observation: N/A
SLO SECURITY PLAN Compliant
Exterior doors not used as employee access or delivery doors will be secured in a fashion so they may not
be opened from the exterior and will be deemed emergency exit doors only.
Observation: N/A
SLO SECURITY PLAN Compliant
The location for placement of the waste receptacle shall be clearly marked so that every employee handling
cannabis waste will place the receptacle in the same exact location each time it is taken from the secure
area.
Observation: N/A
SLO SECURITY PLAN Compliant
The commercial cannabis business shall install and use a commercial grade safe/vault for storage of any
processed cannabis and cash on the premises when the business is closed to the public.
Observation: N/A
SLO SECURITY PLAN Compliant
Security guards will also carry the following on their person at all times: handcuffs, a flashlight, and a
two-way radio with clear communication to a central dispatch or working cell phone.
Observation: N/A
SLO SECURITY PLAN Compliant
Each dispensary shall have no less than one uniformed security guard present at the front door anytime
cannabis or cannabis products are outside of the secured vault.
Observation: N/A
RECOMMENDATIONS
REGULATORY
Licensee was compliant with all inspected requirements at this time.
ORDINANCE
Licensee was compliant with all inspected requirements at this time.
NON-REGULATORY
No recommendations made at this time.
EXHIBITS NONE