Tag: Cannabis Licensing

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 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

ArmorStor & KL Security at 2022 New York CannaCon

By: Colene King | October 26, 2021


It’s official; flights are booked and the hotel is reserved! ArmorStor & KL security are headed to the Javits Center in New York City from January 7th-8th.

 

At the start of the 2022 New Year, a few of our cannabis facility experts from KL Security will be headed Northeast to attend the New York CannaCon. CannaCon is one of the largest, oldest, and most successful cannabis trade shows nationwide: an exciting event for exhibitors to come and show off the latest technologies available to the cannabis market. Various industry leaders, providing everything a cannabis entrepreneur might need from seed to sale, will be joined together.  CannaCon is a one stop shop: lighting, web design, payroll processing, extraction equipment, financing options and our specialty, physical security items such as our ArmorStor line of vaults and vault doors, cages, camera systems, safes and cash management solutions. Cannacon also features educational seminars covering a wide variety of cannabis related topics.


On March 31st of this year, New York became the 15th state to legalize the recreational use of marijuana, allowing adults over the age of 21 to legally buy and consume marijuana. The recent legalization within New York and the Cannacon trade show allows new potential licensees to begin planning operations and meet with potential suppliers, advisors, and service providers. The state of New York is expecting the first recreational dispensary to open legally towards the end of 2022. Regulations have to be set, licenses need to be obtained, and the first legal seeds need to be sown.


Once recreational sales begin, it is projected New York will bring in $1.2 billion in sales by 2023 and $4.2 billion by 2027. According to the governor’s administration, New York State is hoping to be able to collect $350 million in tax revenue annually. (Yakowicz, 2021) Not only will the legalization of marijuana bring in revenue for the state, but it will also create thousands of new job opportunities for New Yorkers.


KL Security is eager to attend this event at such a pivotal time for the state, allowing us to showcase the best end-to-end security solutions for compliance, profit protection, and business operation optimization.



Vice President of Sales for KL Security, Travis Easter, had this to say on the upcoming trade show:



“Our team is very excited to attend the NY CannaCon event in January.  Over the past few years, we have met a lot of great entrepreneurs, as well as many industry partners, at CannaCon events throughout the country that we’ve helped implement a holistic security plan, programming and physical security solutions that help drive their compliance and bottom line forward.  We will be available at Booth # 445 to answer any questions you might have about securing your facility, with experts that can help guide you through the process of realizing your dream.

We will be prepared to discuss your needs one-on-one, providing real time price quotes so you can start budgeting for the future.   

Manufacturers and industry partners, many of which we have met numerous times, are also invited to stop by our booth to discuss potential partnerships and opportunities.”


We look forward to helping new licensees become successful within New York’s recreational cannabis market. See you there!



Sources:

https://norml.org/news/2021/08/12/analysis-legal-cannabis-sales-projected-to-reach-43-billion-by-2025/

https://www.forbes.com/sites/willyakowicz/2021/03/31/new-york-state-legalizes-adult-use-cannabis/?sh=71a4510d395c

https://www.ganjapreneur.com/angela-grelle-the-future-of-cannabis-trade-shows/

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.

Medical Marijuana Licensing in Ohio

By Shelley Swearingen — March 20, 2020

In Ohio, marijuana is legal for approved patients as medicinal use. A patient must first visit a physician that holds an active Certificate to Recommend from the State Medical Board of Ohio. A list of qualifying physicians is available on the Ohio Medical Marijuana Control Program’s website.

After a patient has been recommended for the program by a physician, he/she will receive an email to log in to the patient registry. The patient will login, complete the application, and pay the fee assigned annually: $50 for patients and $25 for caregivers. Fee reductions are available for patients that qualify.

The Ohio Medical Marijuana Control Program (OMMCP) is regulated by the Ohio Department of Pharmacy. There are four licenses available for Cannabis businesses to obtain: Cultivator (Level I & Level II), Processor, Testing Laboratory, and Dispensary.

The OMMCP maintains a very helpful website with many resources for hopeful licensees. There are links to state legislation, downloadable applications, submitted applications of approved licensees, etc. The following is an excerpt from a dispensary application:

The application for each type of license is very in-depth and requires supporting documents for nearly every facet. KL Security has experience in developing security & surveillance plans for Cannabis companies applying for Ohio licensure.

KL Security has certified our solutions in numerous Medicinal Marijuana locations in Ohio. The facilities we developed security plans for were successful in acquiring a license. 


Armorstor MJ1212 Medical Cannabis Modular Vault Package Coupled with our built-to GSA Class 5 Vault Doors, our MJ1212 vault package is a complete solution designed to meet and exceed the regulations set forth in section 1301.72 of the Title 21 Code of Federal Regulations pursuant to DEA Diversion Control for the storage of Schedule I Narcotics. Our 4” thick high-density Class 1 Modular Vault Panels are equivalent to 12″ poured concrete with 3 layers of re-bar per ASTM specifications. Tested and approved under the UL 608 Vault Specification, these panels carry a 30 man-minute Forced Entry Rating.  GSA Approved Class 5 Vault Doors are used by the US Government and Military to store everything from Classified Information, Weapons, Narcotics as well as cash and valuables. GSA allows us to offer these same doors to the private sector, as long as we do not include the GSA Approved label. The DEA specifically calls out for a Group 1R Lock, which affords the Radiological protection requirements you will find in the Code of Regulations.  

TOLL FREE 1-866-867-0306 — OR — [email protected]

DEA Rules, security requirements and regulations per the Code of Federal Regulations 21CFR1301.72

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: Ohio’s Medical Marijuana Law (HB 523)

Ohio Medical Marijuana Control Program website found here.