Tag: Cannabis Compliance

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

Air Tube Systems: Security Applications in the Cannabis Industry

By: Shelley Swearingen | August 18, 2020

Pneumatic Air Tubes may not be considered ‘innovative’, but their application within an emerging market is. Pneumatic tubes have been used to transport items for well over a century, and the legal cannabis industry is in its infancy in America. Cannabis entrepreneurs are in uncharted territory as to how best safeguard their employees and protect product – all while minimizing diversion and driving revenue. Air Tubes are an easy way to achieve all of these goals.

Banks have utilized pneumatic tubes for over a hundred years, and tube systems are commonplace in today’s pharmacies, as well. Air tubes allow for the fast and safe transportation of small items like medication or currency.

By using pneumatic air tubes, dispensaries can keep the majority of their inventory safely stored in a secure room. The less stock left on the sales floor, the less the chances for theft or diversion. When inventory on the sales floor is minimized, the opportunity for diversion is also reduced. A budtender can assist a customer/patient select their preferred product, and then request the quantity from an employee working in a stock room. The item is retrieved (employees never have to leave their respective areas) and sent to the front of the house for the point of sale. This also makes inventory management and surveillance easier.

Air tube systems also provide extra safeguards within cash management. Cashiers are also able to make cash deposits quickly and safely to more secure locations (like vaults).

Out of sight, out of mind. Keeping cash and product stored elsewhere ensures the safety of employees while making it harder for would-be thieves to steal cannabis product – key components to security protocols and operational procedures to deter diversion of cash and cannabis.

KL Security utilizes the THC360 holistic approach when evaluating a facility’s needs. Brand image and company expectations are assessed to formulate the best solution for an issue. Our implementations assist in diversion, drive revenue, and maintain compliance. To see how the experts at K.L. Security can assist your cannabis dispensary/pharmacy, craft growing facility, secure transporting service, or testing facility call us at 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.

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Marijuana Facility Security: How Much is Good Enough?

By Shelley Swearingen | July 14, 2020

Why is security so important?

Security protocols dictate how an organization plans to protect their employees. Security protocols set forth how a business will protect their bottom line. Cannabis security planning protocols establish how a facility will safeguard & protect inventory and cash. All of these plans and protocols affect the bottom line, and therefore should be on the forefront of every stakeholder’s mind.

A good security plan should:
Why do security guidelines vary from state to state?

            Cannabis is illegal at the federal level. In recent history, the federal government has stayed out of the way of states and allowed states to govern these sectors independently. This means that when marijuana is legalized within a state, the state government must create an entire market and all the rules and regulations that go along with it. Some states will look to other places that have implemented successful programs, and some just wing it.

            Some states have very little regulatory requirements when it comes to the operation of businesses, and certain areas of concern that are normally heavily regulated in other industries (like security) are barely glossed over in the legislation. This is due to the illegal status of the substance at the federal level. Many states anticipate marijuana becoming legal nationwide at some point. When this happens, no action would be needed as federal law supersedes state law.

Why is compliance so important?

            Staying compliant means staying operational. Facilities operating within a legal marijuana market are subject to random inspections. If a facility didn’t pass an inspection, it could be slapped with a hefty fine and/or forced to close until the infraction is brought up to standard. This means lost sales on top of expensive fines & the facility could take a hit to their reputation. Remember: a facility will never be fined for being too safe. It may seem daunting to spend (invest) a large sum into securing a facility, but down the road – it makes fiscal sense.

What implementations should a facility employ?

            From license application and project inception to completion, KL Security uses a holistic approach to help plan, create, design, and build compliant security solutions & systems to meet a business’s goals, brand, and mission. With successful projects in place in dispensaries, pharmacies, cultivation facilities, craft growing facilities, secure transporters, and testing facilities, the experts at KL Security have the experience to help facilities pass inspections, stay compliant, and drive revenue. Contact a consultant to see how KL Security can help simplify the process and provide successful results.

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.

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