Cannabis Facility Security Requirements for New Jersey

By: Colene King

On February 22, 2021, New Jersey became the 14^th state in the nation to legalize the recreational use of marijuana. After almost a full year, they have started accepting applications for cultivators, manufacturers, and testing labs. Within the first 4 hours of the website opening, nearly 500 individuals had applied. Applications for dispensaries won’t open up until March 15^th. (Davis, 2021) Though there is still a little way to go before the first legal adult use sale, New Jersey is headed in the right direction. Cultivators, manufacturers, and testing labs will start them off with building a supply for the retailers to sell.

When trying to obtain approval for licensure, a quality physical security plan will include specific details about all things required in the state of New Jersey. Some of these requirements will 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).

Full suite of solutions from cameras to turnkey packages that can protect people, assets and speed loss prevention.

Protect product in-transit
IP Cameras Recorders
Remote Viewing on Smartphones
Access Control & License Plate Recognition

Four wall DEA secure drug cage for Schedule III, IV & V storage areas. Designed & built to DEA physical security requirements, these cages can be configured for your facility and customized to a variety of sizes and heights. Locking doors, self-closers, and access control locks tailored to your existing security systems are all possible.

The New Jersey Cannabis Regulatory Commission establishes and enforces the rules and regulations governing the licensing, cultivation, testing, selling, and purchasing of cannabis in the state.

Here is a summary of the security requirements for an adult use cannabis operation:

Each cannabis business shall provide effective controls and procedures to guard against unauthorized access to the premises or the business’s electronic systems, theft, and diversion of cannabis. Such controls may include, but are not limited to, systems to protect against electronic records tampering

Security Alarm System

Install and maintain in good working order to provide suitable protection against theft and diversion.
- Immediate automatic or electronic notification system
  - Notifies cannabis business personnel or police of an unauthorized breach or failure of alarm system
- Backup system that activates immediately when there is a loss of power.
  - Notifies personnel and authorities of power loss
- Implement security measures that deter and prevent unauthorized access to areas containing cannabis.
- Implement security measures that protect premises, consumers, and personnel
- Establish a protocol for testing and maintenance of the security alarm system.
  - Conduct inspections and tests of the system at minimum every 30 days
  - Promptly implement all necessary repairs to ensure proper operation
- In the event of a system failure due to power loss expected to last longer than 8 hours:
  - Notify the Commission
  - Provide alternate security measures or close operation until fully restored
- Outside access to premises kept at a minimum and it is well controlled
- Limit entry into areas where cannabis is held to authorized personnel
- Equip interior and exterior premises with panic buttons

Video Surveillance System

Equip interior and exterior premises with electronic monitoring, and video cameras
- A video surveillance system shall be installed and operated to clearly monitor all critical control activities of the cannabis business and shall be in working order and operating at all times.
  - The Commission must be provided access to remote viewing at all times
  - The system must be approved by the Commission prior to license issuance
- Original tapes and digital pictures must be retained for at least 30 days
- Outside area of the premises must be well-lit
  - Exterior lighting must be sufficient enough to deter criminal activity
  - Exterior lighting must be sufficient enough to facilitate surveillance
  - Reasonable effort made to not disturb surrounding businesses or neighbors
- All entrances and exits well-lit to allow proper video surveillance
  - Include motion control sensors to protect cultivation light-dark cycles as needed
Provide law enforcement and neighbors within 100 feet of the cannabis business with the name and phone number of a staff member to notify during and after operating hours to whom they can report problems with the establishment.
The security alarm system and video surveillance system shall be continuously monitored, 24 hours a day, seven days a week.
- May be monitored off-site

Storage

All cannabis items shall be stored in an enclosed indoor, locked area. Access to such area is limited to an owner, principal, employee, or volunteer of a license holder or staff members of a license holder’s management services contractor that possesses a Cannabis Business Identification Card when acting in their official capacity.

Secure Transport

A cannabis business shall ensure each delivery vehicle is equipped with:
- A secure lockbox or secure cargo area, used for the sanitary and secure transport of cannabis
- A GPS device for identifying the geographic location of the delivery vehicle
- Functioning heating and air conditioning systems appropriate for maintain correct temperatures for storage of cannabis and cannabis products
- Insure all vehicles in the amount of at least $1,000,000 per occurrence or accident
- Vehicle has no markings indicating that the vehicle is used to transport cannabis
- Vehicle’s make, model, color, vehicle identification number, license plate number, and vehicle registration available to the Commission upon request
- Staff each delivery vehicle with at least one cannabis business staff member
  - Shall not leave cannabis items in an unattended delivery vehicle unless the vehicle is locked and equipped with an active vehicle alarm system.
  - Staff member has access to a secure form of communication with the cannabis business
  - Staff member possess their Cannabis Business Identification Card at all times
  - Before transport, staff member shall create a physical or electronic copy of the transport request
  - Only Cannabis Business Identification Card holders shall be allowed in a delivery vehicle
- All transport of cannabis must be conducted by a person. No drones
- Transports must be completed in a timely and efficient manor
- Maintain a written or electronic record of each transport of cannabis. Must include:
  - Date and time of transport beginning and ending
  - Name, cannabis business ID card number, and signature of staff transporting
  - Weight of cannabis and cannabis items being transported
  - The batch number of the usable cannabis or the lot number of the cannabis product, the name of the strain/cultivar, and the form of the cannabis product
  - Signature of receiving staff member attesting to receipt of the goods
- Report any vehicle accidents, diversions, losses, or other reportable events that occur during transport to the Commission

For the full list of rules and regulations; please follow this link: https://www.nj.gov/cannabis/documents/rules/NJAC%201730%20Personal%20Use%20Cannabis.pdf

Though New Jersey’s regulations don’t specify that a vault is required for storage. We believe it is something that any cannabis operation should strongly consider. Because there is such a huge risk storing a high valued product as well as large sums of cash on the premises, these operations can often become targets for smash-and-grabs. Businesses are 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.

The adult use marijuana market in New Jersey is projected to reach $1.6 billion by 2025, the second largest market on the east coast, following New York. (Dehnam, 2022) Originally the state had set a deadline of February 22^nd to begin sales, but it doesn’t look like this will happen. They may be a little behind schedule, but things are definitely moving in the right direction.

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://www.nj.gov/cannabis/documents/rules/NJAC%201730%20Personal%20Use%20Cannabis.pdf

https://www.nj.gov/cannabis/businesses/personal-use/

https://mgretailer.com/business/finance-acquisitions/cannabis-revenue-forecast-for-2025-jumps-by-20-billion/

Cannabis Initiatives Win 2020 Election

By Shelley Swearingen | November 5, 2020

On November 3^rd, millions of Americans spoke loud and clear: they want legal weed. Five states placed marijuana legalization on their ballots this year, and marijuana won approval in all five state elections.

Montana, Arizona, and New Jersey approved the institution of recreational marijuana markets. Mississippi approved the creation of a medical market, and South Dakota approved the legalization for all various forms of use.

The creation of these new markets means millions of dollars in sales to entrepreneurs as well as a massive influx of tax dollars to local governments. The legalization of cannabis within these states could also have an influence on bordering neighbors.

Projected Sales

Here’s a breakdown of projected sales per state:

State	Population	Projected 1^styear sales
Arizona	7,300,000	+ $375,000,000
Mississippi	2,900,000	+ $240,000,000
Montana	1,100,000	+ $217,000,000
New Jersey	8,900,000	+ $375,000,000
South Dakota	884,659	+ $1,500,000

Polls have shown historically that most Americans are in favor of legalizing marijuana for medicinal use, but the country is torn more evenly on the issue of recreational use. The results of these elections show that the country is viewing marijuana more favorably than previously.

Licensing

In Arizona, existing cannabis operators will automatically receive licensure within the recreational market, and an additional 26 licenses will be issued to social equity applicants.

In Mississippi, there is no ceiling on the number of licenses available to cannabis businesses, and these licenses are required to be issued prior to August 15, 2021. That’s a very quick timeline for the creation of a new market.

Montana will require all license holders to be residents, but like Mississippi, there is no limit to the number of licenses to be issued.

New Jersey currently has a robust medical marketplace, and these operators will probably have the first opportunity to apply or be grandfathered in to the new recreational system.

The licensing guidelines within the proposed legislation in South Dakota are vague and will more than likely cause litigation or require further clarification. One clear rule states that municipalities may not ban medical dispensaries, but may limit the number of operations within its borders.

Cannabis Facility Design & Security

It’s safe to assume these states will look to other states for guidance on the design of new compliance and regulation legislation. KL Security has worked with various cannabis companies nationwide of all sectors: craft growers, secure transporters, large scale grow operators, medicinal pharmacies, recreational dispensaries, etc. We have assisted license applicants in multiple states in their architectural and schematic design concepts and application. Whether you’re in the application process or construction planning phase, we are ready and willing to help make your operation successful by driving revenues while maintaining compliance.

Focus Areas:

Security Plans and Intelligent IP Camera Systems
Cash Safes and Cash Management
Cannabis Vaults & Secure Rooms
Transportation cages and security
BR Rated Glass Partitions and Display Cases
DEA Approved Security Safes

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.

SOURCES:

New state marijuana markets worth $2.5 billion up for grabs in Tuesday’s election

Marijuana election results 2020

New Jersey Voters to Decide on Legal Cannabis in 2020

This holiday season, New Jersey lawmakers are discussing a different kind of ‘trees’. A measure to place marijuana on the 2020 ballot was passed yesterday (Monday, December 16, 2019). This ballot will give New Jersey constituents the choice in whether they want to allow marijuana available for adult legal purchase without a prescription.

New Jersey Cannabis Facilities and Dispensaries poised for potential growth.

New Jersey currently allows marijuana use for medicinal purposes. This past summer, the Governor signed an act into law expanding their current medical marijuana program. It would appear that New Jersey is paying attention, and making alterations where needed. Let’s hope when it comes time to draft regulations for the adult use market, they are still paying attention. Many states have been purposefully vague within their crafting of regulations. Future licensees can only hope that New Jersey will be more concise and direct within their instructions for operation of the adult-use market.

If an individual is contemplating entering the legal cannabis market in New Jersey, now would be a great time to start doing research on security plans, facility design and more.

At KL Security, we’ve completed medical marijuana security projects in New Jersey, and have a proven track record for compliance with state laws and security requirements. Utilizing the Total Harvest Coverage methodology for 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.

We work with leading architects, interior designers and construction management firms to ensure projects are completed from start to finish. With an established track record of completed facility designs, including medical marijuana facilities in New Jersey, we set the standard for growing, cultivation and retail dispensary for medical and recreational marijuana plans, layouts and project management.

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

Catalini, Mike. December 17, 2019. NJ lawmakers pass marijuana referendum for 2020 ballot. Associate Press. Retrieved from: https://apnews.com/372117448cd3dfbb415b1a67204a71b3

New Jersey Department of Health: Division of Medical Marijuana

https://www.nj.gov/health/medicalmarijuana/