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RULE §12.8Inventory Control System

(a) A licensed dispensing organization shall use a perpetual inventory control system that identifies and tracks the licensee's stock of low-THC cannabis from the time it is propagated from seed or cutting, to the time it is delivered to either another licensee or patient or legal guardian.

(b) The inventory control system shall be capable of tracking low-THC cannabis from a patient back to the source of the low-THC cannabis in the event of a serious adverse event.

(c) The inventory control system shall be designed to promptly identify a discrepancy and interact with the department's centralized registry system.

(d) Upon receipt of raw material for cultivation, a licensee shall record in the inventory control system:

  (1) The date delivered; and

  (2) The number of clones or seeds delivered or the weight of the seeds for each variety in the shipment.

(e) For each plant, including any clippings to be used for propagation, a licensee shall:

  (1) Create a unique identifier;

  (2) Assign a batch number;

  (3) Enter appropriate plant identifying information into the inventory control system;

  (4) Create an indelible and tamper resistant tag made of temperature and moisture resistance material, with a unique identifier and batch number;

  (5) Securely attach the tag to a container in which a plant is grown until a plant is large enough to securely hold a tag;

(f) Upon curing or drying of each batch, a licensee shall weigh the batch and enter the weight into the inventory control system database.

(g) At least monthly, a licensee shall conduct a physical inventory of the stock and compare the physical inventory of stock with inventory control system data.

(h) If a licensee discerns a discrepancy between the inventory of stock and inventory control system data outside of normal weight loss due to moisture loss and handling, a licensee shall begin an audit of the discrepancy.

(i) Within fifteen (15) business days of discovering a discrepancy, the licensee shall:

  (1) Complete an audit;

  (2) Amend the licensee's standard operating procedures, if necessary; and

  (3) Send an audit report to the department.

(j) If a licensee finds evidence of theft or diversion, the licensee shall report the theft or diversion to the department within two (2) days of the discovery of the theft or diversion.

Source Note: The provisions of this §12.8 adopted to be effective January 10, 2016, 41 TexReg 490; amended to be effective March 15, 2017, 42 TexReg 1139

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