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

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/

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.

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.

Is Medical Marijuana Coming to Mississippi?

March 11, 2020 — UPDATE

The House of Representatives in Mississippi has passed a resolution to allow an additional item on November’s ballot. This new measure would legalize marijuana for medicinal use.

Lawmakers state this new resolution improves upon the previous petition submitted by Mississippians for Compassionate Care. Critics state this will only confuse voters, and split the vote. Some are worried this will delay the implementation of a medicinal marijuana program.

You can read Resolution 39 here.

January 9, 2020

It’s official. Mississippians will vote on Medical Marijuana in November 2020. A petition was successfully submitted by Mississippians for Compassionate Care https://www.medicalmarijuana2020.com/ and received a spot on this year’s ballot.

 

Regulation of the Medical Marijuana industry has been initially delegated to the Mississippi Department of Health, but is being met with apprehension and rejection. The Department of Health is opposing this assignment due to several reasons. The DoH is unsupportive due to the lack of federal legality, possible medical harms, and insufficient means to regulate the industry. In a statement issued by the DoH, the organization claims these responsibilities of regulation are “far beyond the scope and mission of the Agency, including oversight of agricultural production of marijuana, oversight of marijuana product processing and tax collection”. http://www.msdh.state.ms.us/msdhsite/_static/resources/8376.pdf

 

It is safe to predict that the ballot measure will pass. Societal perceptions of the substance have shifted in the past decades, and Americans want legal access. In a poll published by Gallup in October 2019, it is reported roughly 66% of Americans support legalization of Marijuana.

https://news.gallup.com/poll/267698/support-legal-marijuana-steady-past-year.aspx

Two-thirds of the country has legalized marijuana for one intended use or another. It is clear that the change is coming. The question now becomes ‘when’? The Mississippi Department of Health has eight months to brainstorm and formulate a game plan for if this measure comes to fruition.

 

It can also be assured that entrepreneurs and businesses will be strongly considering Mississippi as a coveted market due to the provision, “The rules and regulations shall not limit the number of licensed medical marijuana treatment centers, nor set the price of medical marijuana”. https://www.sos.ms.gov/content/InitiativesPDF/Proposed%20Initiative%20Measure.pdf

 

At KL Security, we have a proven track record for compliance with state laws and security requirements. Utilizing the Total Harvest Coverage methodology for cannabis facility security plans as well as cannabis business operation improvements, we have successful projects in facilities in multiple states, helping leaders in the cannabis industry drive revenue and stay compliant with state laws.

 

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

 

https://www.medicalmarijuana2020.com/

http://www.msdh.state.ms.us/msdhsite/_static/resources/8376.pdf

https://news.gallup.com/poll/267698/support-legal-marijuana-steady-past-year.aspx

https://www.sos.ms.gov/content/InitiativesPDF/Proposed%20Initiative%20Measure.pdf