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