Rhode Island, Maryland, and Missouri Legalize Adult-Use Cannabis in 2022

By: Colene King

2022 has been another banner year for the ongoing fight to end marijuana prohibition in the United States. The list of legal states just keeps growing, with three states joining in on the movement this year. Rhode Island started off the year with signing the legislation to legalize the personal use and sale of marijuana to adults 21 and over. Then, last month’s primary election welcomed the two newest states to legalize the adult-use of marijuana for 21 and over. On November 8th voters in Arkansas, Maryland, Missouri, North Dakota, and South Dakota took to the polls to decide on their state’s future of legal cannabis for adults. Of the 5 states, 2 of them passed the initiative! We would like to congratulate the residents of Rhode Island, Maryland, and Missouri on becoming the 19th , 20th , and 21st states to legalize adult-use marijuana in the US. 2022 has shown great progress for our country’s future of legal marijuana for all Americans.  

Rhode Island kicked off the year with signing the legalization legislation in May, seeing their first adult-use cannabis sales on December 1st. Nearly 85% of the municipalities in the small state opted in for legal sales, one of the highest in the country. ‘The Ocean State’ is projected to see $80 million in sales within the first year and $300 million by their fourth year. (Casacchia, 2022)

Maryland passed the referendum with 66% of voters in support of legalization. Voters were asked a simple question on their November 8th ballot “Do you favor the legalization of the use of cannabis by an individual who is at least 21 years of age on or after July 1st, 2023, in the state of Maryland?” (Jaeger, 2022) Beginning July 1st of 2023, Marylanders who are 21 and over will legally be able to consume, possess, and grow marijuana. The state is projected to generate as much as $600 million in its first year as a legal market and possibly reaching $1 billion by its fourth year. (Roberts, 2022)

In Missouri, the bill passed with a much closer margin, 53% to 47% in favor of legalization. This makes the ‘Show-Me State’ the 21st state to legalize cannabis. Some projections suggest sales could reach as high as $550 million in the first year, and potentially as high as $800 million – $900 million by the fourth year. (MJBizDaily Staff, 2022) Beginning December 8th, existing cannabis companies can start applying to switch their business to adult-use. The applications must be reviewed and responded to within sixty days of submission in accordance with legislation. In short,  Missouri could log their first adult-use marijuana sales as early as February of 2023.

Before any state can start selling the product to the public, they have to build a regulated market. Sometimes, creating these regulations can take years for states to agree upon; sometimes, it will only take a few months. The deciding factor is dependent upon how motivated the state is to begin receiving tax revenue from legal sales.

One of the highest priority items for any cannabis operator to consider is ‘how to secure an establishment. Every state requires the creation, adaptation, installation, and maintenance of a security plan: protecting staff & customers as well as securing product & cash are of the utmost importance.

A security plan should:

  • Detect, delay, and deter burglaries
  • Protect employees, customers, product, equipment, and cash
  • Protect against natural disasters
  • Deter against theft of cash and product
  • Prevent internal diversion
  • Be scalable – able to expand with the business

We offer many solutions to help safeguard an operation from potential loss of assets: Bullet rated glass, modular vaults and doors, DEA compliant safes and cages, cash management systems, just to name a few. 

The legalization of marijuana is widely gaining momentum across the country. The majority of Americans are in agreement. According to a study done by Pew Research Center in October, 88% of Americans believe that marijuana should be legal for medical and recreational use by adults (59%) or that it should be legal for medical use only (30%). (GREEN, 2022) This means that only 1 in 10 Americans believe marijuana should remain illegal.

Source: Pew Research Center survey of U.S. adults conducted Oct. 10-16, 2022

Now is the opportune time to assemble your security plan. Let our experts help you. KL Security focuses on facility security – vaults, cages, cash management safes, high security safes, etc.


Sources:

https://mjbizdaily.com/rhode-island-set-to-launch-recreational-cannabis-market-thursday-dec-1/

https://www.pewresearch.org/fact-tank/2022/11/22/americans-overwhelmingly-say-marijuana-should-be-legal-for-medical-or-recreational-use/

https://www.marijuanamoment.net/maryland-voters-approve-marijuana-legalization-referendum-on-ballot/

https://mjbizdaily.com/missouri-could-begin-recreational-marijuana-sales-by-early-february/

https://mjbizdaily.com/us-marijuana-election-wins-maryland-missouri-but-losses-

Cannabis Facility Security Requirements for Vermont

By: Colene King


It looks like 2022 is the year Vermont may finally see the first legal sale of adult use marijuana. In 2018, the state legalized the use of marijuana for adults, but it wasn’t until 2020 that they decided to legalize the sale of it.

 

The windows to apply for operator licenses are opening up over the next several months: starting with small cultivation licenses on April 1st and ending with retail licenses opening September 1st. Existing medical marijuana dispensaries will be allowed to commence adult-use sales beginning May 1, while other retailers must wait until October. (Staff, 2022)

 

See chart for application opening dates for each type of operator:

 

All license types may apply for pre-qualification beginning on March 16th. This pre-qualification is not required for full licensure. The Cannabis Control Board is offering pre-qualification in an effort to streamline the process and to foreshadow market structure.

 

Contrary to other states, Vermont is placing a larger priority on small cannabis growers. Their hopes are to pull the underground operators out of the woodwork and integrate these illegal growers into the legal cannabis market. There are concerns that these smaller operations may not be able produce enough product to meet demands at the launch of legal sales, but the Cannabis Control Board is optimistic.

 

The Cannabis Control Board, which consists of three members, was appointed in March of 2021 with the purpose of developing regulations for Vermont’s cannabis market. The regulations regarding security measures required for each type of cannabis operation are outlined below.

 

Security Regulations for Outdoor and Mixed Cultivators:

  1. Fencing
    • Sufficient to prevent unauthorized entry
  2. Alarm system
  3. Video and photographic surveillance
    • Footage must be retained for a minimum of 30 days
    • Accurate date and time stamps on images, without obstructing images
    • Able to produce usable images in the existing lighting conditions
    • Allows for clear and certain identification of all persons or activities
    • Resolution of 1080p or great
    • Exportable and transferable to standard computing equipment
  4. Motion activated flood light
  5. Security services
    • Must be operating for no less than the three-week period preceding harvest

 

Security Regulations for Indoor and Mixed Cultivators, Manufacturers, and Wholesalers:

  1. All perimeter doors and windows must be locked
    • Only individuals with Cannabis Establishment ID card may have keys or a key equivalent
    • All perimeter doors and windows must have operational security alarms
  2. Video surveillance with continue monitoring of any space containing cannabis
    • Footage must be retained for a minimum of 30 days
    • Accurate date and time stamps on images, without obstructing images
    • Able to produce usable images in the existing lighting conditions
    • Allows for clear and certain identification of all persons or activities
    • Resolution of 1080p or great
    • Exportable and transferable to standard computing equipment

 

Security Regulations for Retailers

Retailers must meet all requirements listed above for indoor and mixed cultivators, manufacturers, and wholesalers, along with the following additional requirements:

 

  1. Alarm system
    • Standard commercial-grade alarm system
    • Installed by an expert alarm system company
  2. Video surveillance
    • Must include point-of-sales areas, entrances, exits, and any area containing cannabis
    • Video footage must be retained for at least 90 days
  3. Strict access controls to areas where Cannabis and Cannabis Product is stored or handled
  4. Employees must wear identification badges while on duty
  5. Information related to the facility security must be maintained onsite and readily accessible and make them available for inspection by the Board, if requested.

 

Though these regulations don’t specifically require anything for the storage of marijuana, we strongly encourage you to invest in a vault to protect your product as well as your cash. With sales being mostly cash based and a product that is of high value, cannabis operators become a huge target for robberies.

 

ArmorStor™ Modular Vaults & Doors

For new construction & retrofit of existing buildings. Our modular vaults offer the highest UL Security rating available at a fraction of the cost of poured concrete vaults

 

Another option to consider would be a cash management system. Whether you are concerned about cash shrinkage, inefficient cash handling or upgrading your cash-management plans, a commercial or retail cash management solution is best for you. Our smart safes offer bill validating, cash currency counting, cash management and cash recycling.

 

Smart Cash Management

Enabling retailers to gain efficiencies, reduce loss, and optimize in-store labor. All with the ability to integrate existing POS systems and video surveillance for end-to-end security.

 

Vermont’s Cannabis Control Board estimates that spending on recreational marijuana in Vermont could reach $225 million annually by 2025, which would translate to nearly $46 million in new state taxes. (Goldstein, 2021) If the Green Mountain State produces marijuana half as good as their maple syrup, Vermonters are in for a real treat.

 

Now is the opportune time to get your security plan together. Let us help you. KL Security focuses on facility security – vaults, cages, camera systems, cash management safes, high security safes, etc. 

 

Sources:

https://mjbizdaily.com/small-marijuana-cultivators-could-cause-supply-issues-in-vermont-adult-use-market/#:~:text=Vermont%20estimates%20the%20state’s%20new,in%20annual%20sales%20by%202024.&text=Recreational%20sales%20are%20expected%20to,online%20on%20or%20before%20October.

https://mjbizdaily.com/more-than-two-dozen-vermont-towns-to-allow-adult-use-marijuana-stores/

https://ccb.vermont.gov/sites/ccb/files/2021-11/Proposed%20Rule%202%20-%20Regulation%20of%20Cannabis%20Establishments.pdf

https://www.sevendaysvt.com/OffMessage/archives/2021/10/19/vermont-gears-up-for-a-225-million-marijuana-market

Cannabis Facility Security Requirements for New Jersey


By: Colene King


On February 22, 2021, New Jersey became the 14th state in the nation to legalize the recreational use of marijuana. After almost a full year, they have started accepting applications for cultivators, manufacturers, and testing labs. Within the first 4 hours of the website opening, nearly 500 individuals had applied. Applications for dispensaries won’t open up until March 15th. (Davis, 2021) Though there is still a little way to go before the first legal adult use sale, New Jersey is headed in the right direction.  Cultivators, manufacturers, and testing labs will start them off with building a supply for the retailers to sell.


When trying to obtain approval for licensure, a quality physical security plan will include specific details about all things required in the state of New Jersey. Some of these requirements will include: modular cannabis vaults, high security safes with TL15 or TL30 ratings, DEA approved cages for processing facilities, security camera systems, and cash management safes (trust us, you don’t want to hand count all of that cash).



 

Full suite of solutions from cameras to turnkey packages that can protect people, assets and speed loss prevention.

  • Protect product in-transit
  • IP Cameras Recorders
  • Remote Viewing on Smartphones
  • Access Control & License Plate Recognition

Four wall DEA secure drug cage for Schedule III, IV & V storage areas. Designed & built to DEA physical security requirements, these cages can be configured for your facility and customized to a variety of sizes and heights. Locking doors, self-closers, and access control locks tailored to your existing security systems are all possible.


The New Jersey Cannabis Regulatory Commission establishes and enforces the rules and regulations governing the licensing, cultivation, testing, selling, and purchasing of cannabis in the state.


Here is a summary of the security requirements for an adult use cannabis operation:

Each cannabis business shall provide effective controls and procedures to guard against unauthorized access to the premises or the business’s electronic systems, theft, and diversion of cannabis. Such controls may include, but are not limited to, systems to protect against electronic records tampering


Security Alarm System

  • Install and maintain in good working order to provide suitable protection against theft and diversion.
    • Immediate automatic or electronic notification system
      • Notifies cannabis business personnel or police of an unauthorized breach or failure of alarm system
    • Backup system that activates immediately when there is a loss of power.
      • Notifies personnel and authorities of power loss
    • Implement security measures that deter and prevent unauthorized access to areas containing cannabis.
    • Implement security measures that protect premises, consumers, and personnel
    • Establish a protocol for testing and maintenance of the security alarm system.
      • Conduct inspections and tests of the system at minimum every 30 days
      • Promptly implement all necessary repairs to ensure proper operation
    • In the event of a system failure due to power loss expected to last longer than 8 hours:
      • Notify the Commission
      • Provide alternate security measures or close operation until fully restored
    • Outside access to premises kept at a minimum and it is well controlled
    • Limit entry into areas where cannabis is held to authorized personnel
    • Equip interior and exterior premises with panic buttons

Video Surveillance System

  • Equip interior and exterior premises with electronic monitoring, and video cameras
    • A video surveillance system shall be installed and operated to clearly monitor all critical control activities of the cannabis business and shall be in working order and operating at all times.
      • The Commission must be provided access to remote viewing at all times
      • The system must be approved by the Commission prior to license issuance
    • Original tapes and digital pictures must be retained for at least 30 days
    • Outside area of the premises must be well-lit
      • Exterior lighting must be sufficient enough to deter criminal activity
      • Exterior lighting must be sufficient enough to facilitate surveillance
      • Reasonable effort made to not disturb surrounding businesses or neighbors
    • All entrances and exits well-lit to allow proper video surveillance
      • Include motion control sensors to protect cultivation light-dark cycles as needed
  • Provide law enforcement and neighbors within 100 feet of the cannabis business with the name and phone number of a staff member to notify during and after operating hours to whom they can report problems with the establishment.
  • The security alarm system and video surveillance system shall be continuously monitored, 24 hours a day, seven days a week.
    • May be monitored off-site

Storage

  • All cannabis items shall be stored in an enclosed indoor, locked area. Access to such area is limited to an owner, principal, employee, or volunteer of a license holder or staff members of a license holder’s management services contractor that possesses a Cannabis Business Identification Card when acting in their official capacity.

Secure Transport

  • A cannabis business shall ensure each delivery vehicle is equipped with:
    • A secure lockbox or secure cargo area, used for the sanitary and secure transport of cannabis
    • A GPS device for identifying the geographic location of the delivery vehicle
    • Functioning heating and air conditioning systems appropriate for maintain correct temperatures for storage of cannabis and cannabis products
    • Insure all vehicles in the amount of at least $1,000,000 per occurrence or accident
    • Vehicle has no markings indicating that the vehicle is used to transport cannabis
    • Vehicle’s make, model, color, vehicle identification number, license plate number, and vehicle registration available to the Commission upon request
    • Staff each delivery vehicle with at least one cannabis business staff member
      • Shall not leave cannabis items in an unattended delivery vehicle unless the vehicle is locked and equipped with an active vehicle alarm system.
      • Staff member has access to a secure form of communication with the cannabis business
      • Staff member possess their Cannabis Business Identification Card at all times
      • Before transport, staff member shall create a physical or electronic copy of the transport request
      • Only Cannabis Business Identification Card holders shall be allowed in a delivery vehicle
    • All transport of cannabis must be conducted by a person. No drones
    • Transports must be completed in a timely and efficient manor
    • Maintain a written or electronic record of each transport of cannabis. Must include:
      • Date and time of transport beginning and ending
      • Name, cannabis business ID card number, and signature of staff transporting
      • Weight of cannabis and cannabis items being transported
      • The batch number of the usable cannabis or the lot number of the cannabis product, the name of the strain/cultivar, and the form of the cannabis product
      • Signature of receiving staff member attesting to receipt of the goods
    • Report any vehicle accidents, diversions, losses, or other reportable events that occur during transport to the Commission

For the full list of rules and regulations; please follow this link: https://www.nj.gov/cannabis/documents/rules/NJAC%201730%20Personal%20Use%20Cannabis.pdf


Though New Jersey’s regulations don’t specify that a vault is required for storage. We believe it is something that any cannabis operation should strongly consider. Because there is such a huge risk storing a high valued product as well as large sums of cash on the premises, these operations can often become targets for smash-and-grabs.  Businesses are able to successfully protect product and cash due to the installation of vaults & vault doors.



Class 5-V vault doors protect contents against unauthorized entry, covert entry, and forced entry.



The adult use marijuana market in New Jersey is projected to reach $1.6 billion by 2025, the second largest market on the east coast, following New York. (Dehnam, 2022) Originally the state had set a deadline of February 22nd to begin sales, but it doesn’t look like this will happen. They may be a little behind schedule, but things are definitely moving in the right direction.


Now is the opportune time to get your security plan together. Let us help you. KL Security focuses on facility security – vaults, cages, camera systems, cash management safes, high security safes, etc. 



Sources:

https://www.nj.gov/cannabis/documents/rules/NJAC%201730%20Personal%20Use%20Cannabis.pdf

https://www.nj.gov/cannabis/businesses/personal-use/

https://mgretailer.com/business/finance-acquisitions/cannabis-revenue-forecast-for-2025-jumps-by-20-billion/

Cannabis Facility Security Requirements for New York

By: Colene King


After several years of back and forth, it has finally become a reality for New York: on March 31, 2021, the Empire State became the 15th state in the nation to legalize the adult use of marijuana. The state will now begin the process of building the cannabis market.


New York has had a slow start with the roll out of the new market, but they are hopeful the new governor will get the process back on track. The Cannabis Control Board finally has its members in place and will now begin issuing the regulations that will control the licensing process. Recently, the head of New York’s cannabis control board said she does not anticipate any licenses being issued until the spring of 2023 at the earliest. (Branfalt, 2021)

 

Though the security requirements are yet to be determined, we have a good idea of what to expect. Medical use of marijuana became legal for New York in 2014. Currently, New York’s security requirements for medical manufacturing and dispensing facilities are similar to what you would find elsewhere. 


When seeking approval for licensure, any quality physical security plan will include specific details about each individual component the State of New York will ultimately require.  Examples include, modular cannabis vaults, high security safes with TL15 or TL30 ratings, DEA approved cages for processing facilities, security camera systems and cash management safes (trust us, you don’t want to hand count all of that cash).

 


ArmorStor™ Modular Vaults & Doors
ArmorStor™ secure and reinforced rooms can be installed in existing facilities or scaled to full size in new construction. The modular panels are built up to the equivalent of 24” thick poured concrete vaults with 4 layers of rebar at a fraction of the weight and installation costs.

 

Summit Series SM1 Bill Validating Safes
With immediate view of cash activities across single or multiple locations, the ability to maximize cash flow and reduce cash shrinkage is greatly enhanced. The compact size allows the SM1 to be placed in locations where space is at a premium and still provide enough capacity to minimize the frequency of cash pickups.

 

 

Below is an outline of the known security requirements for the State of New York Medical Use Regulations :

 

 

  1. Alarms and motion detectors
    • Perimeter alarm
    • Duress Alarm – silent security alarm system signal
    • Panic Alarm – audible security alarm system signal requiring law enforcement response
    • Hold up alarm – a silent security alarm system signaling a robbery in progress
    • Motion detectors
    • Back up alarm system to detect entry when no employees are present at facility
    • Failure notification system notifying of any failures within 5 minutes
    • Automatic voice dialer or digital dialer that, when activated, sends a prerecorded message to law enforcement, public safety, or emergency services, requesting dispatch
  2. Video Surveillance
    • All areas containing marijuana, all entry and exit points, all safes and vaults, and all areas where marijuana sales take place
    • Cameras are able to capture clear and certain identification of any person entering or exiting the facility
    • 24 hour recording for all video cameras and must be retained for at least 90 days
    • Recordings available for immediate viewing at any time
    • The ability to produce a clear still photo at a minimum of 9600 dpi from any camera
    • Accurate date and time stamp on all recordings
    • Ability to remain operational through a power outage
    • Video recordings are able to be exported to an industry standard image format
    • Surveillance rooms must not be used for any other purpose
    • Keep a current list of authorized employees who have access to surveillance room
  3. Exterior of premises must be kept illuminated
    • Securely locked at all times, protected from unauthorized entry
  4. Visitor log kept of all persons that access any secured areas
    • Must include name, date, time, and purpose of the visit
    • Log must be available to the department at all times upon request
  5. Security system and equipment must be kept in a secure location.
    • System must be tested twice a year, retaining results for a minimum of 5 years
  6. Storage
    • Safes, vaults, or other approved equipment must be securely locked at all times
    • Keys, combination numbers, passwords, etc. only accessible to authorized individuals
    • Marijuana stored in a secure area at all times, accessible only to authorized employees.
  7. Transportation
    • Before transporting, a shipping manifest must be completed and transmitted to receiving destination 2 days prior to transport
      • Copy of manifest kept in vehicle during transport
      • Manifests must be retained for 5 years
    • Marijuana and products transported in a locked storage compartment not visible from outside the vehicle
    • No unnecessary stops taken along the way
    • Delivery times are randomized
    • Minimum of two employees staffing the transport vehicle, with one of them remaining in vehicle at all times while the vehicle contains marijuana.

 


There are high hopes for the marijuana market in New York. Not only is it believed to have a potential to create $350 million in annual tax revenue, but also bring along 30,000-60,000 new jobs for New Yorkers. (Bort, 2021) There is still much work to be done before the New York market is operational, but once it does, it is sure to be profitable for all cannabis licensees and other stakeholders.


The security experts here at KL Security are excited to begin the new year at CannaCon in New York City January 7th-8th at the Javits Center in downtown Manhattan.  If you’re interested in opening a cannabis facility in New York and becoming part of what is projected to be a very lucrative market, now is the perfect time to start doing research and formulating a physical security plan.  Allow us to be the experts you rely on for your security needs, so you can focus on your overall business plan.  Please take a moment to stop by booth 445 at CannaCon and start a conversation with us about your cannabis facility plans.



Sources:


https://regs.health.ny.gov/content/section-100413-security-requirements-manufacturing-and-dispensing-facilities

https://www.rollingstone.com/culture/culture-news/new-york-weed-marijuana-legalization-1148949/

https://www.ganjapreneur.com/new-york-will-not-issue-adult-use-licenses-until-2023/

Cannabis Operation Security Plan

By Colene King


It’s unmistakable; the cannabis industry is on the rise and shows no signs of slowing down. Recreational use of marijuana is now legal in 18 states, plus the District of Columbia. With states across the nation continually joining in on the legalization of recreational use for adults, business is booming and now is the time to become a part of it.


At the federal level, marijuana is classified as a Schedule 1 drug in accordance with the Controlled Substance Act. On a state level, however, regulation varies. This can make it all a bit confusing. Due to the current federal rules on cannabis, responsibility falls to the states to build the regulatory framework. Each state must develop their own rules, regulations, and guidelines associated with the production, sale, and legal use. No one knows how it will pan out if (and when) marijuana becomes legal at a federal level, but without a doubt there will still be strict regulations to follow for each state.


One of the primary concerns for those operating in the cannabis space is the high volume of cash. The banking system is regulated by federal law, causing a large number of banks to steer clear of the industry.  Additionally, some credit card companies will not allow their customers to use their cards as a form of payment at cannabis pharmacies/dispensaries. This causes the operator to accumulate large sums of cash that is often stored on the premises for a certain period of time. The high value of product paired with large sums of cash make cannabis operators a prime target for diversion and theft. Robbery disrupts business, places customers & employees in danger, and costs operators exponentially. This is merely one reason, of many, as to why having a security plan in place is incredibly crucial.


When applying for licensure, the development of a well calculated security plan is required. Since the legislation varies state and state, and sometimes even by municipality, it’s important to thoroughly research the applicable rules and regulations. Regardless of the state in which the operation resides, there will be rules regarding security.





All cannabis operations must utilize seed-to-sale tracking; this applies to all forms of businesses: craft growers, commercial growers, medicinal producers, processors, secure transporters, cannabis pharmacies, marijuana dispensaries, etc. While this process is required, it is also an excellent business practice to protect profits, ensure product quality, and grow business.


A good security plan should:


  • Deter theft of product and cash
  • Prevent internal diversion
  • Be scalable – able to grow with the business
  • Protect employees/customers, product, equipment, and cash
  • Detect, delay, and deter burglaries
  • Protect against fire and flood

KL Security is here to help along the way – from the first napkin sketch all the way to implementation. We’ve worked with cannabis operators nationwide and helped grow these businesses (both big and small).


Our Total Harvest CoverageTM offers a holistic approach to integrate security and compliance through the use of Smart Safe POS systems, and video & data analytics. This approach unlocks business growth opportunities to create competitive advantages, and maintaining compliance encourages continuous growth. 


Each aspect of a security portfolio should assist in loss prevention, improvement of operations, increasing safety, and support business goals. Kl Security along with ArmorStor™ believe that compliance and business success are one in the same.





This process can be overwhelming, but have no fear, our cannabis security experts are available to help and guide you along the way.


Annual retails sales of marijuana are projected to reach $43 billion by the year 2025 (NORML, 2021), and having an advanced security system in place is crucial to protect your business and license status.


Stay tuned for regular updates on regulations and news pertaining to cannabis.


Sources:

State-By-State Policies
Analysis: Legal Cannabis Sales Projected to Reach $43 Billion By 2025

https://public.findlaw.com/cannabis-law/starting-a-cannabis-business/marijuana-business-licenses-permits-and-planning.html

SmartSafes & Cash in Transit Services (CIT)

Since the dawn of currency as a medium of exchange, theft has been an issue. Obviously, this issue is a key security concern for all retailers. The use of smart safes and cash in transit (CIT) services can help alleviate some of the anxiety associated with the handling of cash.

For example, the Fireking Summit Series line of deposit smart safes validate notes as they are inserted, immediately identifying potential counterfeits.  The Smart Safe automatically counts the currency and stores until collection – an added bonus for loss protection as totals can be tabulated instantly.

Smart Safes significantly reduce the chance of cash discrepancies while simultaneously reducing time and costs as a result of a simplified and efficient cash-handling process.  Easy-to-use configuration and a simple installation process allow you to introduce a secure smart safe solution to any business, large or small, with zero down time.  Near real-time web-based monitoring of cash levels via the Summit Control View  software offers immediate detailed reports, accessible from any PC or mobile device.  Manage employee access and monitor trends over time to better operate and understand your overall cash flow.

For additional security, we are partnered with CIT logistics providers (like Cash Connect) with the ability to provide provisional credit to your choice of financial institution(s), as well as armored car pickup throughout the Country.  Provisional credit is attained through automatic daily ACH transfer, and is bank-agnostic, allowing you to work with your existing banking partner. CIT logistics are fully managed with zero customer involvement. Armored vehicles arrive on a weekly or bi-weekly schedule determined by your cash volume to collect the cash that has already been deposited into your account through the ACH transfer.  Additional services such as change orders can be negotiated and handled through the same logistics partners as well.


Using Cash in Transit Services eliminates risk and exposure to yourself, staff, customers, and general public. It saves time and allows staff to concentrate on core business.


Let us help you reduce opportunities for theft, robbery, and/or diversion.  Call us today to start the conversation!

Call 866-867-0306 or email [email protected]

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice. The information contained in this site is provided for informational purposes only.

Storage of Monetary Funds: Changes and Updates


The storage requirements of secured monetary funds has been updated and revised in 2018 by the U.S. Department of Defense. These updates and revisions are summarized below and can be found in Department of Defense 7000.14-R Financial Management Regulation Volume 5, Chapter 3. The DoD administrative revisions—hyperlink format and updated policy memo—are not noted below.


In DoD 7000.14-R, a subparagraph has been amended to provide a little more clarification on determining cash requirements than in the previous version. Specifically including “managing foreign government contributions (burdensharing funds)” as a type of disbursement.


In addition to this revision, there have been two additions to DoD 7000.14-R. The first and most significant addition is a section on the establishment of the DoD’s Treasury Account Symbol (TAS) for disbursing officer (DO) cash to a cash/investment account that is outside of the U.S. Treasury. Both the Office of Management and Budget and the Treasury determined that TAS needs to be recorded for non-fiduciary, non-budgetary activities with government/federal sources or funds.


A TAS is created for each DoD component to “document the balance of DO cash held outside the Treasury.” Defense Finance and Accounting Services (DFAS) uses monthly SF 1219 data to report the DO cash to the proper Treasury Account Symbol. Below are the TASs for disbursing officer cash.


  1. 017 X 6950 disbursing officer cash: Department of Navy
  2. 021 X 6951 disbursing officer cash: Department of Army
  3. 057 X 6952 disbursing officer cash: Department of Air Force
  4. 097 X 6953 disbursing officer cash: Defense Agencies
  5. 096 X 6954 disbursing officer cash: Corps. Of Engineers (Civil)

The second addition ties in with the burdensharing revision mentioned above. An example is given at the end of the 7000.14-R for Foreign Currency Cash or Limited Depositary Account (LDA) Balance Requirements. A “Burdensharing Funds (If Applicable)” row has been added to the table.

Monetary Funds Lock and Storage Requirements

The monetary funds lock and storage requirements listed in DoD 7000.14-R remains unchanged from the previous version which are listed below.


  • Funds less than $7,500
    • Lock requirement(s): UL Std 768, Group 1R
    • Storage requirements: Vault (must be fire-resistant for two hours), Burglary resistant safe (if vault isn’t available), Class 5 GSA-approved container
      • Note: If GSA-approved container has been manufactured after 2007, it must have a FF-L-2740 or FF-L-2937 lock
  • Funds greater than $7,500 but less than $50,000
    • Lock requirement(s): UL Std 768, Group 1R
    • Storage requirements: Burglary resistant safe with UL TL-15 rating, Class 5 GSA-approved container
  • Funds greater than $50,000
    •  Lock requirement(s): UL Std 768, Group 1R
    • Storage requirements: Burglary resistant safe with UL TL-30 rating, Vault (must be fire-resistant for two hours)
X-10 Lock for GSA Approved Containers and Safes

Call 866-867-0306 or email [email protected]


Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice. The information contained in this site is provided for informational purposes only.

Cannabis Facility Security | Protection Against Looters

By Shelley Swearingen | June 4, 2020

The United States is embroiled in civil unrest. “There have been demonstrations in at least 430 cities and towns so far, large and small, across all 50 states.1

These demonstrations are in response to the deaths of African Americans at the hands of law enforcement. American citizens of all races, ethnicities, genders, socioeconomic backgrounds, and ages have gathered to voice their disdain on the excessive use of force by law enforcement. The majority of these protests have culminated & concluded peacefully, but looting has occurred in several US cities.

There are many different theories as to why people loot2, but from a business owner’s standpoint – the ‘why’ is not concerning as ‘if’. In America, civil unrest wasn’t a recent concern when developing security standards for procedure, just as pandemic protocols weren’t included a few months ago either. For those businesses operating in densely populated areas, this will be something to consider going forward. This is especially true for cannabis dispensaries, pharmacies, secure transporters, cultivators, craft growers, testing facilities, and large-scale growers.

In states where cannabis is legal and where looting has occurred, marijuana dispensaries and pharmacies were targeted. Luckily, those businesses that worked with KL Security found their products and profits unscathed. This is a clear example of when investing in physical security pays off.

Successful Security Measures

These businesses were able to successfully protect product and cash due to the installation of vaults & vault doors. Class 5-V vault doors protect contents against unauthorized entry, covert entry, and forced entry. Even though breaching one of these doors is nearly impossible, it is recommended the highest value product (cash) is stored inside a UL TL-15 rated safe placed inside the vault room. 

A representative of a Cannabis company effected by looting reached out to KL Security on the morning of June 4th. This representative oversees multiple locations in one of America’s fastest growing cannabis markets; he was able to witness the capabilities of vault doors & vault rooms firsthand. Stakeholders were ecstatic to have taken the appropriate measures ahead of time and can rest easy knowing their highly profitable product is safe and sound. In exemplifying their satisfaction, this company expressed intent to acquire more vault doors.

Where Security Plans Fall Short

Some States are allowing waivers to allow cannabis dispensaries to store product on the sales floor, in lightly secured undercounter cabinets.  We cannot stress enough, given the stories we have heard recently, that this is not a sound storage method when defending against smash-and-grab attacks.

Whether or not you agree with the protests, all business owners can agree on the importance of protecting their investment. KL Security is here to assist in the security needs of Cannabis craft growers, secure transporters, testing facilities, dispensaries, pharmacies, and commercial growers. We can help review current standards of procedures to identify areas for improvement that will expand peace of mind and drive revenue. To discuss additional security implementations or compliance at your facility, please reach out. 

TOLL FREE 1-866-867-0306 or [email protected]

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice.

  1. Haseman, Janie; Zaiets, Karina; & Thorson, Mitchell. June 4, 2020. Tracking protests across the USA in the wake of George Floyd’s death. USA Today. Retrieved from: https://www.usatoday.com/in-depth/graphics/2020/06/03/map-protests-wake-george-floyds-death/5310149002/
  2. Khazan, Olga. June 2, 2020. Why people loot. The Atlantic. Retrieved from: https://www.theatlantic.com/health/archive/2020/06/why-people-loot/612577/
  3. https://www.gsa.gov/cdnstatic/Door__Vault__Security.PDF

March Networks: Managing Loss Prevention with Artificial Intelligence

By Shelley Swearingen – April 23, 2020

We’ve all seen a heist movie where the robber spray paints a security camera. His partners all rush in undetected to steal the money, jewels, high valued art, or priceless relic. Thanks to March Networks, these techniques are now antiquated.

March Networks offers surveillance systems with cameras equipped with intelligent video. These systems are able to interpret what they see and trigger alarms accordingly. And unlike people, cameras don’t sleep (gone are the days of the snoozing security guard).

ME6 Cameras, the IR DuraBullet & the IR Dome, record footage, evaluate the footage, and sound alarms when necessary. For example, all of these situations would trigger an alarm:

  • an object is abandoned in one space for too long
  • a person or object moves in the wrong direction
  • people loiter in an area for too long
  • a vehicle stays in an area for too long
  • a person or vehicle enters a certain area
  • a camera is tampered with

But what if you’re not worried about the burglar in the black hoodie? For retail establishments, internal theft and shoplifting are bigger concerns. Surveillance cameras and accurate record keeping are the two best factors to prevent and minimize shrinkage.1 The integration of Searchlight software with March Networks surveillance systems make it easier than ever to identify instances of diversion.  Searchlight software allows loss prevention associates to quickly & easily search transactions to match the incident with the footage. This significantly cuts down on man hours spent on reviewing recordings to identify culprit(s). March Networks is even available to manage and maintain this solution with the help of certified partners.

Cannabis entrepreneurs know just how important loss prevention is to a business plan. The product these business grow, cultivate, test, transport, and sell is highly profitable and easily sold on the black market. Furthermore, marijuana businesses are forced to do a large amount of their transactions in cash due to the illegality of the substance federally. For these two reasons, experts suggest investing in quality surveillance measures and storing cash and product in cannabis security vaults.2

The partnership of March Networks and KL Security takes diversion prevention one step further. These security experts have integrated artificially intelligent camera systems and Searchlight monitoring software with cash safes. These smart safes offer bill validating, cash currency counting, cash management, and cash recycling. If your Smart Safe Point of Sale (SSPOS) unit reports a discrepancy, it’s tied to the surveillance system and all guesswork is removed as to when/where/how the incident occurred.

March Networks and KL Security are revolutionizing the way businesses prevent theft. This technology is sure to be seen as the gold standard for loss prevention going forward, known as Total Retail Coverage and Total Harvest Coverage for Cannabis dispensaries and grow operations. To discuss how we can assist your business shrink loss and grow profits, you can reach out to a qualified expert at 866-867-0306 or [email protected].

SearchLight & Retail POS Software Integrations

Features

  • Improve retail security and loss prevention efforts with Point of Sale exception-based reports integrated with intelligent video
  • Oversee operations with video images from all of your business locations
  • Track and analyze customer behavior with people counting, queue length and dwell time analytics
  • Receive alerts about suspicious activity

Total Retail Coverage Security and loss prevention efforts

From shoplifting to internal employee theft as well as organized retail crime, your profits are affected. With Total Retail Coverage, retail business can utilize intelligent video that proactively alerts you to suspicious transactions and other potentially problematic activity in your retail stores. Searchlight’s powerful combination of surveillance video, transaction data and analytics helps you improve retail security and reduce losses. The software’s business intelligence reporting tools also let you gather valuable data on employee behavior and customer interests, information you can use to improve operations, customer service, marketing, and profitability.

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice.

  1. Alstete, Jeffrey (2006), “Inside advice on educating managers for preventing employee theft”, International Journal of Retail & Distribution Management, Vol. 34 No. 11 pp. 833-844
  2. Helmer, Jodi. November 12, 2019. Cannabis Security: How Growers Can Prevent Internal Theft. Cannabis Business Times. Retrieved from: https://www.cannabisbusinesstimes.com/article/prevent-employee-theft-cannabis-facility-industry/

How Leading Cannabis companies leverage RFID & Intelligent Video Analytics (IVA)

To understand the full benefits of RFID and IVA (intelligent video analytics) one must consider the five (5) key drivers of cannabis facilities and retail dispensaries

  1. Compliance
  2. Improving Operations (labor, processes, etc.)
  3. Reducing Out of Stock Product
  4. Improving Conversation Rates
  5. Increasing Sales

What the research shows

Inventory Accuracy without RFID is around 60%* –  translating to missed sales opportunities and putting customer loyalty at risk.

RFID can increase inventory accuracy by up to 99.5%

One of the first steps that leading brands of marijuana growers, cultivation

Get unprecedented visibility of cannabis plants, and retail products while maintaining compliance with state laws for video surveillance.

facilities and retail dispensaries take is the pilot program. This will help you discover new insights into your business operations and unlock new opportunities for growth and sales. Starting with an existing grow house or retail location is a great way to determine the way forward. In the examples below we demonstrate the process that has been dubbed “Total Harvest Coverage™” by thought leaders in the cannabis sector.

Pilot Programs to Measure benefits & ROI of RFID & Intelligent Video Analytics

At the Cultivation Facility

Starting with business goals, we create a list of metrics that will result in accurate benefits to the growing operation. How long is the drying time at location A vs. location B?  How long do plants sit before processing? Reduce inventory carrying costs by X.

  • Tracking automation and a visual record of each plant’s location results in a 360 degree compliant operation
  • How a plant may have been removed or misplaced and who was involved
  • Discover where more staff training is required or where processes could be improved or sped up (saving labor)
  • Seamlessly share video and RFID data evidence with law enforcement as needed or required – quickly and efficiently.

At the Retail Dispensary

Managing multiple product types (flower, edibles, oils, concentrates, shatter and consumables) is a challenge for specialty retail stores. How does RFID track inventory to meet the demand in-store pickup & online orders? How do we create a seamless shopping experience that increases customer loyalty?  What can we learn from RFID / IVA / SSPOS that could integrate into Weedmaps or Leafly promotions?

Keeping business goals and compliance with state laws for security cameras and video retention (40 days, 55 days, etc.) in mind, a 360 degree view of the cannabis business will fully emerge – and items moving from vault rooms to retail display cases, back to storage rooms and ultimately at the point of sale (SSPOS) can help you unlock new insights for sales, marketing as well as loss prevention and inventory management – all in one platform.

Identify Hiccups or Pain Points by:

  • Retail Dispensary Location
  • Department
  • Item / Products

Which products is the store consistently low on inventory?

Do you have merchandising standards / branding guidelines to adhere to?

Optimize the “Order Online & In-Store Pickup” Process

What’s the dwell time from the secure vault. storage cage or ArmorStor room to the retail display case?

Accurate stock availability – if the website says the product is in stock and customers find it’s not available… your store could suffer a negative online review. In today’s day and age, reputation and customer loyalty is everything. With RFID / IVA/ SSPOS you get real-time cannabis product level visibility.

 

Intelligent Video Analytics (IVA) and SSPOS help with:

  • Video integrated with POS data can help dispensary operators cut losses by setting up alerts triggered by suspect transactions, such as voids, refunds or returns
  • Run searches across multiple dispensary locations simultaneously
  • Using video and analytics like people counting, queue length or dwell time, dispensaries can see how long customers waited in line, of they spent more time in front of a certain promotional display, or if they left the dispensary without making a purchase – and use this data to drive promotions via POS integrations with Weedmaps, Leafly, baker, and more.

The Key Stakeholders | Get them on board

The concept of Total Harvest Coverage™ spans the grow operation (supply chain) processing, IT, Security teams, C-Suite executives as well as loss prevention and the protocols for compliance with state laws & law enforcement.

4 Vital Messages for Stakeholders

  1. Clear Value of inventory accuracy
  2. Inventory tracking is vital to state law compliance
  3. Diversion of cannabis product must be reported promptly
  4. Quickly getting inventory to customers is key to growth & success

 

The RFID and IVA components of the business operation are building blocks to a complete platform that is transforming leading cannabis brands today. The complete integration of RFID, Intelligent IP Video Surveillance, Smart Safe Point of Sale (SSPOS) and 3D Sensors is the next wave of smart retail in the specialty cannabis sector. Costs of deployments from the onset of security planning, architectural programming vs. retrofit later should be taken into consideration.

For existing operations, a modular and scalable approach can help you improve business operations incrementally without major capital investments. For new business operations, seasoned and experienced security integrators will understand the end to end benefits of more than compliance, but of loss prevention and helping you drive profits to further distinguish your brand.

 

 

Information gather from the following sources, deemed reliable but not guaranteed:

*Auburn University RFID Lab, Key Considerations for RFID Pilots and Deployments