1. (a) A licensed retailer shall be able to account for all of its inventory.
2. (b) In conducting an inventory reconciliation, a licensed retailer shall verify that the licensed retailer's physical inventory is consistent with the licensed retailer's records pertaining to inventory.
3. (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.
4. (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.
5. (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.

Note: Authority cited: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code.

History

1. Change without regulatory effect renumbering and amending former title 16, section 5424 to new title 4, section 15424 filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). For prior history of title 16, division 42, see Register 2019, No. 3.