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 4^th. 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.

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/
Khazan, Olga. June 2, 2020. Why people loot. The Atlantic. Retrieved from: https://www.theatlantic.com/health/archive/2020/06/why-people-loot/612577/
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.¹The 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.

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
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/

Maneuvering Marijuana in Michigan: Secure Transporters

Secure transporters move marijuana product and cash obtained from medical cannabis and/or recreational marijuana transactions across the state for a fee. Think about it as a business owner: you are operating a new business, and your product was very recently illegal. The black market will continue to operate for some time until the State of Michigan has a system in place to protect these assets. As such, there is a mandated 3rd party transport law for all medical cannabis and recreational marijuana moving from Growers, Processors, Licensed Micro business, storage and retail dispensaries.

“In Colorado, which legalized recreational use in 2014, the illegal black market is now a larger problem than before legalization…” Walsh, Dustin. (4/8/2019) Legal pot vs. black market a balance. Crain’s Detroit Business, Vol. 35 Issue 14, p1-1, 1p.

Bearing this in mind, the conveyance of product from grower to seller must be protected.

The state of Michigan will begin accepting applications for select secure transport licenses beginning December 6, 2019. If an individual or entity is thinking of applying for any licensure, it would be in his/her best interest to start assembling documents now. To be eligible as a secure transporter, the license applicant will need to meet several qualifications taken from: Mich. Comp. Laws Serv. SS 333.27505 (LexisNexis 2018) and Mich. Comp. Laws Serv. SS 27959 (LexisNexis 2018):

No ownership/interest in another marijuana business
May not be a registered patient or caregiver of medicinal marijuana
Resident of Michigan
May not hold title to marijuana

Growers, Processor and Provisioning Centers and Secure Transportation of Marijuana and Cannabis The role of secure transporter within the Michigan Medical cannabis and recreational marijuana chain is integral. A grower may not move their product legally (to other growers and/or dispensaries) without using the services of a secure transporter. MCL 333.27503 (4) (LexisNexis, Lexis Advance through Public Act 47 from the 2019 Legislative Session):

Secure Transporter Requirements:

Drivers must have chauffeur’s license issued by Michigan
Employees handling marijuana or cash from transactions may not have a felony conviction within the past five years, been released from incarceration in the past five years, or a hold a misdemeanor conviction involving substance abuse in the past five years.
Each transporting vehicle must be operated by a minimum 2-person crew. The vehicle is never to be left unattended while marijuana product is in custody.
Route plans and manifests must be kept within the vehicle, and available to present to law enforcement at all times. This data must also be logged into the statewide monitoring system.
Marijuana must be contained within sealed containers, and not accessible while the vehicle is in motion.
A vehicle operating as a secure transporter may not display any visual markings or indicate in any way that it is transporting marijuana.
Implementing Total Harvest Coverage to maintain compliance with state laws and regulatory requirements is key to the best security planning and protocols that deter diversion and theft.

In Michigan, security requirements vary by municipality and County. It is imperative one checks the local code for a potential business to correctly implement the adequate standard. It is of the utmost importance that businesses/operators are complying with regulations as these establishments are available for inspection at any time.

Learn more about Marihuana facility design standards, security compliance and planning

DEA Rules, security requirements and regulations per the Code of Federal Regulations 21CFR1301.72 https://www.klsecurity.com/products/medical-marijuana-dea-storage.html

For the latest updates, the Michigan Marijuana Regulatory Agency (MRA) is in the process of implementing the security and regulatory framework for the entire state, Michigan County and Townships. 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: Michigan Regulation and Taxation of Marihuana Act. “REGULATION AND TAXATION OF MARIHUANA ACT”. , 2017 Bill Text MI S.B. 1243 SEC. 501

LINKS TO FORMS & LEGISLATION:

MICHIGAN MARIJUANA REGULATORY AGENCY

https://www.michigan.gov/lara/0,4601,7-154-89334_79571_90056—,00.html

MICHIGAN REGULATION AND TAXATION OF MARIHUANA ACT

https://www.legislature.mi.gov/(S(wwmtk0j1m4jeg10at2zbsucs))/mileg.aspx?page=getObject&objectName=mcl-Initiated-Law-1-of-2018