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 New York

By: Colene King


After several years of back and forth, it has finally become a reality for New York: on March 31, 2021, the Empire State became the 15th state in the nation to legalize the adult use of marijuana. The state will now begin the process of building the cannabis market.


New York has had a slow start with the roll out of the new market, but they are hopeful the new governor will get the process back on track. The Cannabis Control Board finally has its members in place and will now begin issuing the regulations that will control the licensing process. Recently, the head of New York’s cannabis control board said she does not anticipate any licenses being issued until the spring of 2023 at the earliest. (Branfalt, 2021)

 

Though the security requirements are yet to be determined, we have a good idea of what to expect. Medical use of marijuana became legal for New York in 2014. Currently, New York’s security requirements for medical manufacturing and dispensing facilities are similar to what you would find elsewhere. 


When seeking approval for licensure, any quality physical security plan will include specific details about each individual component the State of New York will ultimately require.  Examples include, modular cannabis vaults, high security safes with TL15 or TL30 ratings, DEA approved cages for processing facilities, security camera systems and cash management safes (trust us, you don’t want to hand count all of that cash).

 


ArmorStor™ Modular Vaults & Doors
ArmorStor™ secure and reinforced rooms can be installed in existing facilities or scaled to full size in new construction. The modular panels are built up to the equivalent of 24” thick poured concrete vaults with 4 layers of rebar at a fraction of the weight and installation costs.

 

Summit Series SM1 Bill Validating Safes
With immediate view of cash activities across single or multiple locations, the ability to maximize cash flow and reduce cash shrinkage is greatly enhanced. The compact size allows the SM1 to be placed in locations where space is at a premium and still provide enough capacity to minimize the frequency of cash pickups.

 

 

Below is an outline of the known security requirements for the State of New York Medical Use Regulations :

 

 

  1. Alarms and motion detectors
    • Perimeter alarm
    • Duress Alarm – silent security alarm system signal
    • Panic Alarm – audible security alarm system signal requiring law enforcement response
    • Hold up alarm – a silent security alarm system signaling a robbery in progress
    • Motion detectors
    • Back up alarm system to detect entry when no employees are present at facility
    • Failure notification system notifying of any failures within 5 minutes
    • Automatic voice dialer or digital dialer that, when activated, sends a prerecorded message to law enforcement, public safety, or emergency services, requesting dispatch
  2. Video Surveillance
    • All areas containing marijuana, all entry and exit points, all safes and vaults, and all areas where marijuana sales take place
    • Cameras are able to capture clear and certain identification of any person entering or exiting the facility
    • 24 hour recording for all video cameras and must be retained for at least 90 days
    • Recordings available for immediate viewing at any time
    • The ability to produce a clear still photo at a minimum of 9600 dpi from any camera
    • Accurate date and time stamp on all recordings
    • Ability to remain operational through a power outage
    • Video recordings are able to be exported to an industry standard image format
    • Surveillance rooms must not be used for any other purpose
    • Keep a current list of authorized employees who have access to surveillance room
  3. Exterior of premises must be kept illuminated
    • Securely locked at all times, protected from unauthorized entry
  4. Visitor log kept of all persons that access any secured areas
    • Must include name, date, time, and purpose of the visit
    • Log must be available to the department at all times upon request
  5. Security system and equipment must be kept in a secure location.
    • System must be tested twice a year, retaining results for a minimum of 5 years
  6. Storage
    • Safes, vaults, or other approved equipment must be securely locked at all times
    • Keys, combination numbers, passwords, etc. only accessible to authorized individuals
    • Marijuana stored in a secure area at all times, accessible only to authorized employees.
  7. Transportation
    • Before transporting, a shipping manifest must be completed and transmitted to receiving destination 2 days prior to transport
      • Copy of manifest kept in vehicle during transport
      • Manifests must be retained for 5 years
    • Marijuana and products transported in a locked storage compartment not visible from outside the vehicle
    • No unnecessary stops taken along the way
    • Delivery times are randomized
    • Minimum of two employees staffing the transport vehicle, with one of them remaining in vehicle at all times while the vehicle contains marijuana.

 


There are high hopes for the marijuana market in New York. Not only is it believed to have a potential to create $350 million in annual tax revenue, but also bring along 30,000-60,000 new jobs for New Yorkers. (Bort, 2021) There is still much work to be done before the New York market is operational, but once it does, it is sure to be profitable for all cannabis licensees and other stakeholders.


The security experts here at KL Security are excited to begin the new year at CannaCon in New York City January 7th-8th at the Javits Center in downtown Manhattan.  If you’re interested in opening a cannabis facility in New York and becoming part of what is projected to be a very lucrative market, now is the perfect time to start doing research and formulating a physical security plan.  Allow us to be the experts you rely on for your security needs, so you can focus on your overall business plan.  Please take a moment to stop by booth 445 at CannaCon and start a conversation with us about your cannabis facility plans.



Sources:


https://regs.health.ny.gov/content/section-100413-security-requirements-manufacturing-and-dispensing-facilities

https://www.rollingstone.com/culture/culture-news/new-york-weed-marijuana-legalization-1148949/

https://www.ganjapreneur.com/new-york-will-not-issue-adult-use-licenses-until-2023/

Business Protections Against Fire | Cannabis Facilities

By Shelley Swearingen | September 29, 2020


Coastal Pacific states are currently battling raging wildfires. These western states are no stranger to fire, but the losses don’t always have to be catastrophic. Protecting cannabis dispensaries, pharmacies, growers, producers, and secure transporters from natural disasters is possible; it just takes planning.

Records Protection


Most states have laws requiring the digital tracking of product from seed to sale. Many states also require customer databases be kept & maintained to abide by quantity limits. This data is pertinent to stay within compliance and safeguards must be in place to protect this data. It’s also important to select servers that protect against fire AND water. A unit should be able to withstand the fire and the efforts to put out the fire.  



The ioSafe protects data from fire and water. It can withstand temperatures up to 1550°F for 30 minutes, and water submersion at 10 ft for up to 72 hours.  The internal capacity maxes out at 16TB, and it it’s compact in size: 12 inches high and weighs less than 30lbs.


Businesses, no matter how tech savvy they may be, will always need to store some hardcopies. For this reason, a traditional fire-safe file cabinet should be procured.


FireKing manufactures the best fireproof filing options available. Other brand names only offer half the fire safe protection. These cabinets are available in legal or letter size and multiple drawer options.

Chemical Storage

The cannabis industry is highly regulated. Growers & producers must abide by traditional guidelines for the safe storage of insecticides, pesticides, and other chemicals as well as cannabis specific regulations just to stay in compliance. 

Fire or other natural disasters can cause hazardous chemicals to turn deadly. If not stored properly, fire could cause ignition and explosion. The acquisition of proper storage can prevent against additional damage.

The AG400 is the best choice for the storage & safe handling of chemicals. This unit is rated to meet OSHA requirements and withstand up to 4 hours of fire.

Product Storage

Cannabis regulators are primarily concerned with safeguarding citizens against the proliferation of marijuana on the black market. For this reason, many businesses will implement security provisions that prevent surreptitious entry but may not prevent against mother nature.


There are various safes and vaults that can be manufactured to tailor to the specific needs of your business. Protect product from natural forces as well as theft.


Vault doors protect cash and product from diversion as well as natural disasters. Fallen trees could compromise the integrity of a traditional locked door thus enticing those that may wish to profit from your misfortune.  

For smaller quantities of product, a high security safe may suffice. This featured safe is manufactured with narcotic storage in mind – sure to pass compliance inspections. It’s also fire tested to 1850°.

No matter the scale or size of your operation…

KL Security can help facilitate compliance and protection. We’ve helped numerous cannabis facilities nationwide assemble license applications, maintain compliance standards, protect against diversion, and drive revenue. Our consultants are knowledgeable, experienced, and ready to assist.

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. The information contained in this site is provided for informational purposes only.

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

Secure your Stash: Licensing and Security in Michigan’s Medical Cannabis & Recreational Marijuana Market

Due to the legalization of marijuana on a medical and recreational level, Michigan is ripe with financial opportunities. There are many different levels of operation an entrepreneur may engage. To cultivate, sell, or transfer marijuana to establishments, one would need a Michigan Grower’s license. There are three classes of license for growers: Class A – 500 marijuana plants; Class B – 1,000 plants; Class C – 1,500 plants. Remember, cannabis still may be subject to DEA Rules, security requirements and regulations per the Code of Federal Regulations 21CFR1301.72

THC360’s approach to integrated security plans, compliance with state laws and maximize business revenues is part of the leading cannabis companies success and growth plans. As a premier partner of Total Harvest Coverage, we believe in designing best in class plans for your cannabis facility or transportation fleet.

Within the pot hierarchy, there is a step directly below growers: microbusiness. Michigan Microbusiness license holders may cultivate up to 150 marijuana plants, process/package marijuana, and may sell/transfer to those 21 & over but cannot sell to other marijuana businesses. (Think: start up with little capital.)

Next in the cannabis chain, we will find the processor and the retailer. These are separate licenses and have different limitations/functions. The processor may purchase marijuana from a grower, extract resin, or create a marijuana infused product for sale (edibles, etc.), and/or transfer said product to another processor or provisioning center. The retailer may acquire marijuana from establishments and sell to other establishments or individuals.

The chart below demonstrates which cannabis license holder can engage with another:

The state of Michigan will begin accepting applications for select licenses beginning December 6, 2019. If an individual is thinking of applying for any licensure, it would be in his/her best interest to start assembling documents now. The forms and applications are not yet available, but It’s safe to assume the document checklist will resemble those for medicinal facilities. The MMFL prequalification requires over 40 documents alone.  This information can be found on the state of Michigan’s website: https://www.michigan.gov/lara/0,4601,7-154-89334_79571_87302—,00.html

In Michigan, security requirements vary by municipality.  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 recreational businesses/operators are complying with regulations as these establishments are available for inspection at any time. Performing a realistic evaluation of the expected size of business (as well as future growth) should be done at the introductory phase. For example: a microbusiness may suffice with several small TL-15 Rated safes bolted to the floor or a dispensary may require a modular vault and vault door to house the quantity of inventory.

In summation, asset protection should always be at the forefront of a business owner’s mind. Replacing valuable product or having to cease business to meet government regulations is costly, inconvenient, and stressful.  The cannabis and marijuana industry is sure to be highly competitive and a highly sought-after revenue stream. KL Security has experienced consultants ready to help, and offers security solutions for dispensaries, growers and retails that meet compliance for security.

KL Security is able to help at all levels of the supply chain:

Full line of cash management safes for retail point of sale

Cannabis Inventory Management

Growers, Greenhouses, or Cultivations Farms and Land

  • Safe and Vault Systems

Modular Vaults systems that meet DEA 21CFR1301.72 for Dispensaries are designed for DEA Approved Storage at Growers, Retail and Cultivation Farms

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