Electronic Records Management for Illinois Marijuana Dispensaries

 

 

 

 

Illinois legislature requires dispensaries in Illinois to maintain security measures to protect both people and product.  One of the requirements for dispensary security is 24/7 video surveillance. Cameras must be rolling at all times and record footage of all entries & exits, parking lots, exterior of building, all vaults, safes, storage areas , and anywhere cannabis is handled in any fashion (sales, disposal, preparation, retail areas, storage, etc.) These cameras must be of substantial quality with the ability for law enforcement to identify vehicle license plates and use facial recognition. These records must be maintained for a minimum of 90 days, and available for review at any time.

All security system equipment and recordings shall be maintained in good working order, in a secure location so as to prevent theft, loss, destruction, or alterations.
Cannabis Regulation and Tax Act., 2019 Bill Text IL H.B. 1438

As if this wasn’t an already massive amount of data to store, dispensaries must also electronically maintain records of the following items for a minimum of three years (even in the event the dispensary closes):

(1)  Operating procedures;

(2)  Inventory records, policies, and procedures;

(3)  Security records;

(4)  Audit records;

(5)  Staff training plans and completion documentation;

(6)  Staffing plan; and

(7)  Business records, including but not limited to:

  • (i)  Assets and liabilities;
  • (ii)  Monetary transactions;
  • (iii)  Written or electronic accounts, including bank statements, journals, ledgers, and supporting documents, agreements, checks, invoices, receipts, and vouchers; and
  • (iv)  Any other financial accounts reasonably related to the dispensary operations.
Offering solutions for Business Continuity & Disaster Recovery planning of records management as part of your cannabis security plan and design.

Cannabis Regulation and Tax Act., 2019 Bill Text IL H.B. 1438 

These are all just the requirements set in place by the state of Illinois. It is important to also check the local ordinances to review any additional local guidelines, “…it is crucial to understand compliance within the state or states where an organization operates.” Smallwood, Robert F. Managing Electronic Records: Methods, Best Practices, and Technologies, John Wiley & Sons, Incorporated, 2013.

 

Effective electronic record management is vital to the efficient operation of any modern business; “An investment in ERM (Electronic Record Management) is an

ioSafe data storage products are the best brand manufacturer of virtual cloud data to physical endpoint files and complete systems that process, store and archive data and electronic records for Illinois Dispensary and retail marijuana shops.

investment in business process automation and yields document control, document integrity, and security benefits.” Smallwood, Robert F. Managing Electronic Records: Methods, Best Practices, and Technologies, John Wiley & Sons, Incorporated, 2013.

When you’re ready to begin the process of securing your business (cannabis or otherwise), the consultants at KL Security are available to assist. Well versed in government regulations and recent legal mandates, we are prepared to ensure your business will pass requirements.  With sufficient cannabis security planning and programming your facility will be ready for license and compliance

TOLL FREE 1-866-867-0306

contact@klsecurity.com

DEA Rules, security requirements and regulations per the Code of Federal Regulations 21CFR1301.72https://www.klsecurity.com/products/medical-marijuana-dea-storage.html

 

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice. All license information and security measures taken directly from legislation: Cannabis Regulation and Tax Act., 2019 Bill Text IL H.B. 1438

 

 

Maneuvering Marijuana in Michigan: Secure Transporters

Secure transporters move marijuana product and cash obtained from medical cannabis and/or recreational marijuana transactions across the state for a fee.  Think about it as a business owner: you are operating a new business, and your product was very recently illegal. The black market will continue to operate for some time until the State of Michigan has a system in place to protect these assets. As such, there is a mandated 3rd party transport law for all medical cannabis and recreational marijuana moving from Growers, Processors, Licensed Micro business, storage and retail dispensaries.

“In Colorado, which legalized recreational use in 2014, the illegal black market is now a larger problem than before legalization…” Walsh, Dustin. (4/8/2019) Legal pot vs. black market a balance. Crain’s Detroit Business, Vol. 35 Issue 14, p1-1, 1p.  

Bearing this in mind, the conveyance of product from grower to seller must be protected. 

The state of Michigan will begin accepting applications for select secure transport licenses beginning December 6, 2019. If an individual or entity is thinking of applying for any licensure, it would be in his/her best interest to start assembling documents now. To be eligible as a secure transporter, the license applicant will need to meet several qualifications taken from: Mich. Comp. Laws Serv. SS 333.27505 (LexisNexis 2018) and Mich. Comp. Laws Serv. SS 27959 (LexisNexis 2018):

  • No ownership/interest in another marijuana business
  • May not be a registered patient or caregiver of medicinal marijuana
  • Resident of Michigan
  • May not hold title to marijuana 

 

 

 

Growers, Processor and Provisioning Centers and Secure Transportation of Marijuana and Cannabis The role of secure transporter within the Michigan Medical cannabis and recreational marijuana chain is integral. A grower may not move their product legally (to other growers and/or dispensaries) without using the services of a secure transporter. MCL 333.27503 (4) (LexisNexis, Lexis Advance through Public Act 47 from the 2019 Legislative Session): 

 

 

Secure Transporter Requirements: 

  • Drivers must have chauffeur’s license issued by Michigan
  • Employees handling marijuana or cash from transactions may not have a felony conviction within the past five years, been released from incarceration in the past five years, or a hold a  misdemeanor conviction involving substance abuse in the past five years. 
  • Each transporting vehicle must be operated by a minimum 2-person crew. The vehicle is never to be left unattended while marijuana product is in custody.
  • Route plans and manifests must be kept within the vehicle, and available to present to law enforcement at all times. This data must also be logged into the statewide monitoring system. 
  • Marijuana must be contained within sealed containers, and not accessible while the vehicle is in motion. 
  • A vehicle operating as a secure transporter may not display any visual markings or indicate in any way that it is transporting marijuana. 

    Implementing Total Harvest Coverage to maintain compliance with state laws and regulatory requirements is key to the best security planning and protocols that deter diversion and theft.

In Michigan, security requirements vary by municipality and County.  It is imperative one checks the local code for a potential business to correctly implement the adequate standard. It is of the utmost importance that businesses/operators are complying with regulations as these establishments are available for inspection at any time.

Learn more about Marihuana facility design standards, security compliance and planning

DEA Rules, security requirements and regulations per the Code of Federal Regulations 21CFR1301.72 https://www.klsecurity.com/products/medical-marijuana-dea-storage.html

For the latest updates, the Michigan Marijuana Regulatory Agency (MRA) is in the process of implementing the security and regulatory framework for the entire state, Michigan County and Townships. Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice.

All license information and security measures taken directly from legislation: Michigan Regulation and Taxation of Marihuana Act. “REGULATION AND TAXATION OF MARIHUANA ACT”. , 2017 Bill Text MI S.B. 1243 SEC. 501

 

LINKS TO FORMS & LEGISLATION:

MICHIGAN MARIJUANA REGULATORY AGENCY

https://www.michigan.gov/lara/0,4601,7-154-89334_79571_90056—,00.html

MICHIGAN REGULATION AND TAXATION OF MARIHUANA ACT

https://www.legislature.mi.gov/(S(wwmtk0j1m4jeg10at2zbsucs))/mileg.aspx?page=getObject&objectName=mcl-Initiated-Law-1-of-2018

 

Secure your Stash: Licensing and Security in Michigan’s Medical Cannabis & Recreational Marijuana Market

Due to the legalization of marijuana on a medical and recreational level, Michigan is ripe with financial opportunities. There are many different levels of operation an entrepreneur may engage. To cultivate, sell, or transfer marijuana to establishments, one would need a Michigan Grower’s license. There are three classes of license for growers: Class A – 500 marijuana plants; Class B – 1,000 plants; Class C – 1,500 plants. Remember, cannabis still may be subject to DEA Rules, security requirements and regulations per the Code of Federal Regulations 21CFR1301.72

THC360’s approach to integrated security plans, compliance with state laws and maximize business revenues is part of the leading cannabis companies success and growth plans. As a premier partner of Total Harvest Coverage, we believe in designing best in class plans for your cannabis facility or transportation fleet.

Within the pot hierarchy, there is a step directly below growers: microbusiness. Michigan Microbusiness license holders may cultivate up to 150 marijuana plants, process/package marijuana, and may sell/transfer to those 21 & over but cannot sell to other marijuana businesses. (Think: start up with little capital.)

Next in the cannabis chain, we will find the processor and the retailer. These are separate licenses and have different limitations/functions. The processor may purchase marijuana from a grower, extract resin, or create a marijuana infused product for sale (edibles, etc.), and/or transfer said product to another processor or provisioning center. The retailer may acquire marijuana from establishments and sell to other establishments or individuals.

The chart below demonstrates which cannabis license holder can engage with another:

The state of Michigan will begin accepting applications for select licenses beginning December 6, 2019. If an individual is thinking of applying for any licensure, it would be in his/her best interest to start assembling documents now. The forms and applications are not yet available, but It’s safe to assume the document checklist will resemble those for medicinal facilities. The MMFL prequalification requires over 40 documents alone.  This information can be found on the state of Michigan’s website: https://www.michigan.gov/lara/0,4601,7-154-89334_79571_87302—,00.html

In Michigan, security requirements vary by municipality.  It is imperative one checks the local code for a potential business to correctly implement the adequate standard. It is of the utmost importance that recreational businesses/operators are complying with regulations as these establishments are available for inspection at any time. Performing a realistic evaluation of the expected size of business (as well as future growth) should be done at the introductory phase. For example: a microbusiness may suffice with several small TL-15 Rated safes bolted to the floor or a dispensary may require a modular vault and vault door to house the quantity of inventory.

In summation, asset protection should always be at the forefront of a business owner’s mind. Replacing valuable product or having to cease business to meet government regulations is costly, inconvenient, and stressful.  The cannabis and marijuana industry is sure to be highly competitive and a highly sought-after revenue stream. KL Security has experienced consultants ready to help, and offers security solutions for dispensaries, growers and retails that meet compliance for security.

KL Security is able to help at all levels of the supply chain:

Full line of cash management safes for retail point of sale

Cannabis Inventory Management

Growers, Greenhouses, or Cultivations Farms and Land

  • Safe and Vault Systems
Modular Vaults systems that meet DEA 21CFR1301.72 for Dispensaries are designed for DEA Approved Storage at Growers, Retail and Cultivation Farms

For the latest updates, the Michigan Marijuana Regulatory Agency (MRA) is in the process of implementing the security and regulatory framework for the entire state, Michigan County and Townships. Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice.

All license information and security measures taken directly from legislation: Michigan Regulation and Taxation of Marihuana Act. “REGULATION AND TAXATION OF MARIHUANA ACT”. , 2017 Bill Text MI S.B. 1243 SEC. 501

 

LINKS TO FORMS & LEGISLATION:

MICHIGAN MARIJUANA REGULATORY AGENCY

https://www.michigan.gov/lara/0,4601,7-154-89334_79571_90056—,00.html

MICHIGAN REGULATION AND TAXATION OF MARIHUANA ACT

https://www.legislature.mi.gov/(S(wwmtk0j1m4jeg10at2zbsucs))/mileg.aspx?page=getObject&objectName=mcl-Initiated-Law-1-of-2018