1. A. Discrepancy Reporting.

   1. (1) If a processor discerns a discrepancy between the inventory of stock and the seed-to-sale tracking system outside of normal weight loss due to moisture loss and handling, the processor shall:

      1. (a) Commence an investigation of the discrepancy within 1 business day; and
      2. (b) If the processor cannot resolve the discrepancy within 30 business days, report the discrepancy to MCA.
   2. (2) Failure to report an unresolved discrepancy may be used as evidence of diversion.
2. B. Theft or Diversion. If the processor finds evidence of a theft or diversion, the processor shall report the theft or diversion to the Administration within 1 business day.

3. C. Within 30 business days of discovering the theft, diversion, or unresolved discrepancy, the processor shall:

   1. (1) Complete an investigation;
   2. (2) Amend its standard operating procedures, if necessary; and
   3. (3) Send a report of the investigation to the Administration.

Authority: Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, and 36-401, Annotated Code of Maryland

Effective date:

Regulations .01—.07 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024

Regulations .01—.19 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)

Regulations .01—.19 adopted effective July 22, 2024 (51:14 Md. R. 678)

Regulation .03B amended effective March 16, 2026 (53:5 Md. R. 244)

Regulation .04C amended effective April 14, 2025 (52:7 Md. R. 324)

Regulation .04E adopted effective March 16, 2026 (53:5 Md. R. 244)

Regulation .17D adopted effective March 16, 2026 (53:5 Md. R. 244)

Regulation .18B amended effective April 14, 2025 (52:7 Md. R. 324)

Regulation .19A amended effective May 26, 2025 (52:10 Md. R. 436); March 16, 2026 (53:5 Md. R. 244)