Member Blog: How to Avoid the 4 Most Common Payroll Mistakes
To achieve your goals in business, your payroll system must be flawless. It is an aspect in which you must strive for perfection whenever possible. Avoiding payroll mistakes in the cannabis industry is especially crucial due to the highly regulated nature of the industry. Compliance with payroll regulations is essential to avoid legal repercussions and penalties from governing agencies. Additionally, accurate and timely payroll ensures proper compensation for employees, and maintaining precise payroll records promotes transparency and accountability, building trust with employees and stakeholders in an industry where transparency is vital.
It is better to be safe by managing your payroll as thoroughly as possible, if not you would be sorry you didn’t. Most people have most likely made these mistakes and have had minor consequences accompanying them. If these mistakes persist, the business owner often pays dearly for them. These common payroll mistakes have cost some their business.
Having Multiple Records for a Certain Payroll
It pays to have all your payroll information in a single database. This enhances security and ensures that you know where to look for your payroll information. If this has been your practice and your business uses tools like HCM software that helps you manage your employees and other business information, then this shouldn’t be much of a problem.
All you’ll have to do is use that same software to manage and process payroll information. If your business documents are disorganized, be sure to have them all in one place.
Not Updating Needed Information
Ensure that you are not complacent by relying on automated software to do everything. The system is not aware that your employee would be changing addresses therefore such info should be entered manually.
That error could lead to mistakes in filling that employee’s taxes as the bills might arrive at the wrong address. As much as simplifying a process is great, you still need to play your path in getting things done.
It would help you to set timely reminders in the system that should help you avoid the mistake of not keeping up with the latest information.
Weak Security System
Confidential information should remain so. To avoid your system being compromised, you should be using a payroll processing system with strong cybersecurity.
This has got to be the costliest mistake common to payroll processing. Every information concerning your business that is not available on your website and to your customers, is most likely not public information. Private information about your business should remain private.
Information in payroll systems is as sensitive as can be. There’s almost every piece of information you need to know about a person, and as such strict rules should apply to keeping them safe. A weak security measure means a weak business and a weak business means trouble.
Inaccurate or Delayed Tax Payments
In calculating taxes absolute precaution is required. If you are not a tax accountant you are probably not so proficient in this calculation. Your tax accountant (if your business has one) should learn how to adequately use the system to avoid delay or inaccuracy.
Bear in mind that inaccurate tax payment makes your business a tax defaulter. Your business as a taxpayer has the duty of tax calculations assigned to an accountant. Note that taxes ought to be paid within the required time bracket. The systems are programmed to make the tax payments when due.
The human capital management system does not only process payroll information but can also tell when employees qualify for federal or state tax credits.
In Conclusion
To maintain payroll accuracy and timeliness in the cannabis industry, it is crucial to avoid payroll mistakes. By opting for a third-party payroll provider like Tesseon you can benefit from our expertise and ensure that your payroll is consistently accurate and delivered on time, regardless of any industry-specific challenges. The Cannabis industry is both very young and extremely regulated, it is imperative that businesses stay vigilant and proactive to avoid costly mistakes.
Member Blog: Breaking the Bad – Easy Steps to Better Secure Your Cannabis Facility – Part 1
First things first, when I selected this article photo I wanted to show someone prying a back door to a business. While this illustrates the message that I’m trying to get across, cannabis burglaries do not often occur during daylight hours. In fact, it seems much more likely that this is a pic of a distressed GM who lost their badge and is frantically trying to get in the building so that they can open before their Retail Director finds out!
All joking aside, rear-door breaches account for the majority of cannabis burglaries throughout the United States. Burglars prefer this entry technique mainly due to the fact that they are much more concealed at the rear of the building than the front (streetside) portion of the structure. Having this in mind, we can literally focus on bolstering this ONE door in order to mitigate much of our overnight vulnerabilities.
Rear commercial doorways almost always come with two built-in theft deterrents, one by design, and one from just plain luck. The first being that they are mostly solid and constructed of metal, and the second being that they swing outward rather than swinging into the location due to fire egress mandates. From a breaching standpoint, it is much easier for a bad guy to force a door open by inward force (kicking, shouldering, etc.) than by prying the doorway outward. Having established this, burglars are forced to pry these doorways open in order to achieve entry.
So good news, now we have deduced not only where our bad guy is likely to come in from, we now know how they are going to do it! All we need to do now is find a product that will make a pry-fashioned entry nearly impossible. I’ll list three options with each of their respective price points and considerations.
Common Latch Guard:
A latch guard is a strip of metal that basically covers the empty space between the door and frame. This makes it much more difficult to “get a bite” with a pry tool by placing the tool in the aforementioned space. Most of these guards are 6 to 8 inches long and are placed on the area covering the area where the door latches to the frame, however, I would recommend a full-length latch guard that will cover the full length of the door. While the shorter piece may keep a villain from getting in, their attempts could damage the doorway to a point where it would need to be replaced, which leads to compliance issues and subsequently unwanted store closures. Local locksmiths will have these in stock and should be able to install them for around $500.
“Panic bar” styled exit system:
These systems are basically a panic bar on steroids. The system bolts to the interior of the door with retracting bolts that insert into each side of the door’s jamb/frame while deployed. Once the handle is depressed, both bolts retract and allow the doorway to open. These systems often come with an alarm that can be programmed to sound when opened and can also be ordered with an electrical kit that will work with your access control system. This option will cost around $1000.
“Three Point” bolting systems:
On the higher end of the spectrum are “Three Point” bolting systems. These systems incorporate a heavy latch with two additional bolts to the top and bottom of the doorway. These systems can also be incorporated into your access control system, making it possible for authorized users to badge-in from outside. These systems carry a price tag around $2,200, although they come with all the hardware needed for the door, so you are at least saving additional hardware expenses.
So there you have it, three options to GREATLY diminish the likelihood of a break-in.
Over the span of a 22-year career with the City of Tulsa Police Department, Kevin served much of his tenure as a Disaster Response Team member, violent crimes task force investigator, and homicide detective.
In 2018 Kevin retired from the Tulsa Police Department and joined Harvest Health and Recreation, a top ten vertically integrated, multi-state operated cannabis company. Kevin served as Harvest’s National Security Director until Harvest was acquired by the cannabis industry giant Trulieve in 2021. Once at Trulieve, Kevin assumed the role of National Security Director, overseeing all facets of physical security for 200 retail locations, 15 production facilities, and 11,000 employees throughout the United States.
In November of 2022, Kevin launched Spara Group, a niche cannabis consulting firm focused on offerings related to Physical Security, Compliance, and Learning+Development throughout the cannabis canopy.
Kevin maintains his residency in Tulsa, Oklahoma, where he lives with his wife Sonya.
Please give me a call at 918-809-8850 or email kevin@sparagroup.com if you have any questions.
Take care and thanks everyone!
Service Solutions | 9.21.22 | Does Your Video Surveillance Monitoring Method Put Your Business at Risk?
NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition originally aired on Wednesday, September 21, 2022 we were joined by the experts from Netwatch North America and Sapphire Risk Advisory Group to discuss the stark differences between the most common methods businesses choose for video monitoring to clear up the confusion about the best method for your type of business.
Every business needs a video surveillance system to guarantee the security of its premises and improve business operations. As a high-risk industry, cannabis businesses have an even greater need for these systems. Cultivation facilities, processing labs, and dispensaries are high-value targets for potential criminals due to the large amounts of currency and cannabis products stored on-site.
In addition, these systems are necessary to remain compliant with local or state law. However, while regulations require cannabis businesses to equip their facilities with a functioning video surveillance system, regulations can be less restrictive about how these systems are monitored. Yet, the method of video monitoring chosen can determine how effective the business can be at reducing and preventing criminal activity.
You’ll leave the program with a roadmap for next steps to take to evaluate the methods currently in place, how best to conduct an assessment and implement new systems to ensure the security of your business AND the safety of your employees.
In this session, you will learn:
• What are the most common video monitoring methods for cannabis businesses?
• How does each method monitor, detect unauthorized activity, and comply with canna regulations?
• What is the best option for your type of business?
41:30 – Audience Q&A (When should I reach out to a PVM company during the cannabis business planning process?)
43:29 – Audience Q&A (What VMS systems does Netwatch currently integrate with?)
44:45 – Audience Q&A (Do insurance companies reward operators for proactive video? Is activity reporting for proactive surveillance a regulatory requirement in MA or other jurisdictions?)
46:42 – Audience Q&A (How does working with a security company like Sapphire help to save my company money?)
48:26 – Audience Q&A (How important and common are camera analytics in the industry?)
52:09 – Audience Q&A (Should I choose the security integrator/manufacturer to work with first or my video monitoring method?)
54:39 – Audience Q&A (How do you get in touch with a risk consultant?)
55:50 – Final Thoughts & Upcoming Events w/ Netwatch & Sapphire Risk Advisory Group
Committee Blog: Everything You Wanted to Know About Cannabis Facilities but Were Afraid to Ask Field Guide – Part 4 – Retail
by NCIA’s Facilities Design Committee Jacques Santucci, Brian Anderson, David Vaillencourt, and David Dixon
Continuing our five-part series on the behind-the-scenes workings of the legal cannabis industry. This series focuses on all of the inner dealings and industry advice from established professionals to craft this unlimited How-to-Guide to assist you in setting up your own facility. These articles cover cultivation, extraction, infused products, and retail facilities as well as support activities. In general, remember to be compliant with all local rules and regulations and contact a licensed contractor and industry expert.
Part Four, Retail & Dispensaries: Top Things to Consider When Planning Your Cannabis Dispensary and Retail Operations
Retail and dispensary design presents challenges that are distinct from the other areas of cannabis production and manufacturing. The biggest difference is that the design must now account for customers as well as employees. Listed below are a number of issues that an operator should consider as they are in the process of designing their retail or dispensary operations. Always remember to be compliant with all local rules and regulations.
Security Camera: Minimum Area of Coverage
Most states require a hundred percent minimum security coverage in any area where marijuana products are stored, displayed, or sold. Designing a camera system and placements to avoid “dead spots’ ‘ (i.e. areas with no camera coverage) can be challenging, especially if the operation is taking over an existing space, as opposed to building a new facility from scratch.
Bonus Consideration: Think about having an HVAC system specially dedicated to your security room. Security rooms for video monitoring and storage can sometimes be an afterthought. But these locations should be treated more like computer server rooms as opposed to standard office space. And with the amount of technology placed in a (typically) small space, things can overheat rather quickly. This can lead to damage to the system and ultimately, you could be out of compliance for video storage and retention.
Another Bonus Consideration: do not forget about placing security cameras to cover the entrance and exit points to the parking lot. Think about the field of view around doors, especially if the door is near the corner of the building or if there are other obstructions that can block the camera’s view of the area. Multiple cameras may be needed for this critical function. Contact a licensed professional.
Security Camera: Minimum Data Storage
Video storage and retention requirements for cannabis facilities are fairly stringent. Typical requirements include 90-days of on-site storage and up to five years of off-site storage. Off-site data storage is required for future legal needs. Many states require a minimum video resolution of 1080p. The video storage needs for even a moderately sized facility can amount to petabytes of data. For this reason, many facilities outsource this function at least in some measure. If you do decide to handle this all yourself, you should be sure that you have the technical expertise on your staff to handle this potentially complex technical issue.
Security Alarm: Monitoring
Like it or not, retail cannabis facilities will probably always be targets for crime. Having a security system probably seems like a no-brainer. But simply having an alarm system isn’t typically enough. You will need a system that is actively monitored. This allows the company to initiate actions on your behalf depending on the alarm status (e.g., call the police or fire department in response to a remote alarm). Your alarm should be monitored by at least one reputable company. Redundancy might not be needed, but check to be sure that you are in compliance with local rules and regulations. Talk to your licensed professional.
Security: Line of Sight
Customers should only see the public retail area of the location. Customers should not see the back-of-house operations. There is no need for them to see how business is conducted other than at the sales counter. Similarly, there is no need for customers to be able to view the offices, inventory areas, working areas, employee break room, etc. Keeping these areas private helps to avoid bad actors from learning operational routines that might make it easier for them to exploit.
Safety and Injury Handling
This is an easily overlooked area but can definitely get your dinged upon inspection. Be sure you have the appropriate amount of first aid kits and burn kits onsite as reunited by local regulations. Pay particular attention to the regulations about the placement of these kits as they are sometimes required to be within visual distance of specific rooms within your facility. It can be a hard pill to swallow to not be able to get your operation certificate for forgetting such a simple item, but it happens all too frequently.
Employee Access
Having a non-customer door or access point is a best practice. Non-customer access points are where employees and products are brought into the facility without customer line-of-sight. In some states, this is a requirement so check to be sure your facility is in compliance with laws and regulations.
Product Delivery
Getting cannabis products into a retail facility is a critical part of the merchandise flow and one of the most vulnerable points for theft. For maximum safety and control, consider the use of an air-lock/man trap/sally port door arrangement. If not possible due to location or architecture, planning for business hours separation and process can keep customers separated from deliveries.
Employee and Counter Safety
The counters where transactions occur in a cannabis retail setting can pose some risks especially since most facilities are cash-based operations. An open style counter can open up opportunities for theft. Consider a security barrier counter. The idea is to attempt to prevent customers from having access to products, cash, or employees where possible.
Security: Egress
Customer flow can be somewhat challenging, especially in facilities that have a registration lobby that is physically separated from the retail sales floor. Having separate entry and exit doors for customers can help with the flow of customers. Not a requirement but potentially a good customer experience design.
Customer Environment
Dispensaries and retail locations can be busy places at times. In COVID times, this can be a big issue. But even under non-pandemic circumstances, there may be a need to control the number and spacing of customers for both safety and privacy. Social distancing- the process of limiting the number of customers for the available space within the building- can be enhanced through various design elements. These can range from the use of rope and stanchion barriers, to signage and floor stickers.
Lobby design for restricted access – if access to the sales floor is restricted to registered customers, a secure lobby space should be provided with a separated check-in space and access-controlled doors both for customer entrance and egress.
And do not forget bathroom access for customers. You can have a single facility that is unisex but it should also be ADA compliant.
Environmental Consciousness
Unfortunately, like most other retail spaces, cannabis retail still generates a significant amount of waste. And much of it may be recyclable. Business recycling bins should be provided.
Energy-saving considerations can also be important for retail facilities. Motion detecting light systems can reduce energy consumption in non-occupied spaces. At the very least, interior lighting switches should be located in the same area for easy use upon space exit. HVAC systems should have an occupied and unoccupied night setback capability.
Parking Lot
Depending on the total number of employees and customers you anticipate visiting your business at its peak times, you will need to design a minimum number of accessible parking spots.
If curbside pickup is legally allowed in your area, be sure to map out and reserve spaces exclusively for this activity. It should be close to the exit door where the product will be delivered to the customer. Remember to keep parking spaces for handicapped people and even maybe for motorcycles.
Committee Blog: Everything You Wanted to Know About Cannabis Facilities But Were Afraid to Ask Field Guide – Part 1 – Cultivation
by members of NCIA’s Facilities Design Committee
Jacques Santucci, Brian Anderson, David Vaillencourt, and David Dixon
Introducing our five-part series on the behind-the-scenes workings of the legal cannabis industry. This series focuses on all of the inner dealings and industry advice from established professionals to craft this unlimited How-to-Guide to assist you in setting up your own facility. These articles cover cultivation, extraction, infused products, and retail facilities as well as support activities. In general, remember to be compliant with all local rules and regulations and contact a licensed contractor and industry expert.
Part 1, Cultivation: The Top Things to Consider When Planning Your Cannabis Cultivation Facilities
As you are planning to start your own indoor cultivation facility, there are some often ignored basic parameters that should be taken into account in the design and decision-making process. We have listed the key parameters that will ease the process of going live and may save time and money while you design your facility and the building process. Always remember to be compliant with all local rules and regulations.
Lighting Recommendations
Depending on your goals, building setting, and local requirements, you have many options for lighting, from HPS light to LED lights. Lighting standards are measured in watts per square foot. Recommendations may vary per state or other criteria. For example, Massachusetts recommends an intensity of 36w/sft for energy consumption.
Water Recovery: Minimum Percentage
Cannabis is a water-intensive crop, and consideration of effluent capacity can be inefficient, expensive, and an issue for municipalities. Depending on your cultivation practices, you should consider a water recovery system and what percentage you are able to capture. There are two types of water recovery – leachate, and condensate. An effective system will recover at least 70% of the water for utilization, significantly reducing your water and sewer expenses. Your irrigation and fertigation selection will have an impact on your water consumption.
Generator Capacity: Minimum Recommendations
Your area or your business model may dictate for a generator – which is a critical Business Continuity consideration as a power outage, even if for a brief period of time can destroy a crop. Make sure to calculate the minimum capacity requirements of your facility. Do you plan to have it for emergency or stand-by usage? Typically, 50% of your short lighting load capacity of cultivation, 100% for AHU (air handling), and some back-office and security system, including cameras, access, and server needs.
Carbon Dioxide Enrichment: New Versus Recaptured
You can consider 75% new tanked- or generated- natural gas and 25% recaptured sources, for cultivation rooms, gas-fired chillers, and gas-fired boilers.
Carbon Dioxide Alarms Levels: Cultivation and Common Areas
Carbon Dioxide monitoring is critical for worker safety. You should be monitoring common areas to ensure that you are below 3,500 ppm. Monitoring should be tied to the fire alarm system for building evacuation, with 2,000 ppm alarm levels for the cultivation area. 5000 ppm limits are required by NFPA/OHSA. Alarms should contain visual strobes, red/green room access indicator lights and/or possibly an exhaust system that is triggered by an alarm
Renewable Energy: Minimum Energy Production Percentage
To demonstrate a commitment to sustainability, a minimum target of 10% of your facility’s energy consumption should be from renewable energy production: i.e. solar power, wind energy, geothermal, biomass, and/or battery energy.
Refuse Disposal: Recycling and Composting
Consider certified disposal of horticulture byproducts with a minimum of 25% recycling or composting by volume; rendered unusable. You will want to establish and verify that your shredder or equivalent system is capable of breaking up debris to a specified size.
Airlock Doors for In-Between Uses
You should install an airlock barrier, or at a minimum an air curtain, between the business and the production side, for outside and inside egresses, to keep a controlled environment. Keep in mind considerations for ventilation systems and cascading airflow.
Wall Material
For best performance to mitigate biological hazards and contamination, depending on your region, recommend installing insulated metal panels, that are non-porous, solid core wall, insulated metal panels (IMP), with surface mounted devices.
Security Entrance: Facility Safety
Consider creating a separate mantrap style entrance to allow for better safety at the entrance point, monitor visitors, keep a controlled environment as well as avoid weather-related issues, i.e. wet areas due to rain or snow, or temperature variance due to extreme heat or cold.
Limiting doors access and key sets for employees needs to be part of your overall security plan, with proper door labeling and authorization levels. The idea is to prevent unauthorized personnel from accessing specific spaces, for proper environment control and to be compliant with the local regulatory body. Remember to be compliant with local rules and regulations.
Security Camera: Minimum Area of Coverage
In most states, you will need security coverage for 100% percent of your faculty where cannabis products will be stored or displayed, with proper recording and monitoring. Keep in mind that your security room will likely need its own dedicated HVAC systems
Security Camera: Minimum Data Storage and Resolution
You will need to store all security camera footage on-site for a minimum of 90-days, or more depending on regulations. You may need to store the data offsite for five years for future legal needs. Footage quality may need to be shot in 1080p minimum. An ASTM International Standard Guide for Video Surveillance System provides additional parameters to utilize.
Security Alarm: Monitoring
Security alarm needs to be monitored by a reputable company. A service level agreement (SLA) or similar to ensure there are redundancies in the event of a failure should be considered, and redundancy or a backup system might be necessary.
Odor Control: Exhaust Air Management
Odor mitigation is a crucial part of all operations. All exhaust airflow must be oxidized or ionized. You also need a fogger system and carbon filtration. Refer to local municipal bylaws and regulations for more information.
For interior odor control and non-cultivation areas, consider cascading air flows from non-cultivation areas to provide a common method of control for pressurization control. Plan to control air flow and exhaust.
Fire Sprinkler: Maximum Bench Sizing
Sprinklers are designed to cover a limited surface area. When installed on cultivation tabletops wider than 48”, additional sprinkler coverage may be required.
Flooring Type: Continuous
Cultivation floors shall have continuous resin or epoxy coating with at least a four-inch lip onto the adjacent wall.
Energy Incentives: Minimum HVAC/D Efficiency Rating
Air Conditioning (AC) units should be no less than 16 SEER, High Point (HP) units no less than 9 HSPF. Incentives for this vary by state. Please check with your local utility company and regulatory commission for all available rebates.
HVAC Validation Requirements:
Bi-Annual Third Party Controlled Environment Validation using required Trend Data Metrics is the validation and calibration of control sensors, including temperature, humidity, CO2, and other devices such as scales, flow meters, integral valves, PPM sensors, EC meters, TDS meters, HVAC dampers and other applicable devices that may drift from factory or initial installation specifications.
Good Agricultural and Collection or Manufacturing Practices (GACP/GMP): Ready Versus Complaint
Your operation should be designed with documentation to prepare for GACP or GMP requirements. Depending on final product types, specific food-based GMPs with appropriate risk assessment programs (such as HACCP, and others referenced within the Food Safety Modernization Act) will prepare you for any federal or international trade opportunities in a federally legalized framework.
Employee Locker Access
Plan for gender-specific, male and female locker rooms, with six square feet per employee per shift expected to arrive at the facility at any given time. Employee supplied flock for locker or lock provided by the employer is a business decision. Keep in mind how you will keep the environment of your production facility under control. You might consider having locker access adjacent to the growing area with a proper gowning area.
Locker Room Type
Make sure your locker room is correctly set up for employees to be able to change in a safe way. Specifications for Locker Room and Gowning/PPE Areas should allow access to faucets for washing hands as well as bathrooms. Note gowning areas should be separate from the bathrooms directly off the locker room area.
Employee Shower Access
Per International Building Code (IBC) and State Plumbing Codes, calculate the number of employees and determine the number of showers based on code requirements as well as business policies. Having gender-specific showers is a recommendation as well as a business decision.
Emergency Eye Wash- Shower
For safety and based on OSHA standards, Integrated Pest Management (IPM), fertigation, and extraction operations must-have emergency eye wash showers. Eyewash stations need to be placed throughout the facility so that they are within 10-15 seconds walking distance from employees. Check local requirements for additional needs.
Note: in a facility where corrosives and skin irritants could pose harm to employees and require immediate remediations, you should consider emergency showers.
First Aid Kit Distribution
First aid kits should be available in all rooms where sharp tools and other hazardous materials are intended to be used. These kits need to be within 10-15 seconds of employee walking distances. Per OSHA requirements, first aid kits should be located in all trim, extraction, flower hallway, and shredding areas. This is overall a must-have in your facility.
Safety and Injury Handling
We recommend that you ensure that you have enough first aid and burn kits available throughout your faculty, based on your activity and the number of employees.
Equity Member Spotlight: YS Cannabis Delivery Services
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
Originally from Ecuador, Yadira Elizabeth Silva Leon, I came to the United States when I was only 16 years of age. I graduated with honors from Sheridan High School and Arapahoe Community College in Colorado. Then I graduated from the American Intercontinental University online, with a BA in Business Administration. I own my construction clean-up company, officially named YS Construction Clean Up Services.
As a single mother of two and minority business owner, I started to become more involved in the world of cannabis after two separate accidents, leaving me with a damaged spine. Doctors prescribed medications and pills that began to damage my nervous system and I started to lose sensation in my legs, inhibiting me from taking care of my children. It was around this time that Colorado legalized cannabis, and after becoming legally accessible, I decided to take advantage of the medicinal benefits of cannabis to calm my pain. Cannabis inspired me to begin a new career in the cannabis industry. Serving people who are in pain by bringing their medicine in the comfort of their home in a timely fashion became an interest and passion of mine.
What unique value does your company offer to the cannabis industry?
The health and safety of our patients, customers, and employees is our top priority. We see the future where our company impacts the wellbeing of our drivers and the life of our planet. That is why YS Cannabis Delivery Services was created.
We specialize in transporting cannabis products business to business and business to customer. We also collect empty containers from customers to recycle properly, and return clean, disinfect, and sterile containers for businesses.
What is your goal for the greater good of cannabis?
Securing the life of carriers, and our environment. We are working on a new security system where we use AI (Artificial Intelligence) and VR (Virtual Reality) to deliver cannabis from business to business with efficiency and security. While we are expanding security to protect cannabis shippers and vehicles against prohibited intrusions, we are also making sure plastic containers get to the right place and be recycled properly.
What kind of challenges does the industry face, and what solutions would you like to see?
COVID-19 created many challenges for most industries, but the cannabis industry faced more threatening challenges such as violence and robbery. What we would like to see is the safety of cannabis employees become a priority. That is why we are looking into virtual reality as a security measure.
Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?
I joined the National Cannabis Industry Association to collaborate in the development of my company at a national and international level. Because of NCIA, I was able to receive access to the resources my business needed to grow and thrive. I was able to speak with leaders, consultants, and other like-minded professionals.
Member Blog: 9 Standard Operating Procedures Every Dispensary Should Have
by Tommy Truong, Director of Partnerships at KayaPush
Standard Operating Procedures (SOPs) are the documents, protocols, systems, and procedures that your cannabis dispensary should have in place to manage day-to-day operations. SOPs help dispensaries in many ways: From optimizing proper employeemanagement systems such as dispensary payroll and onboarding to ensuring compliance with regulations are consistently met, and more.
What are the top dispensary SOPs to use?
There are hundreds of dispensary SOPs that could be created, and they should constantly be evolving as your store grows.
Overall the goal of dispensary SOPs is to increase efficiency and help you become more profitable in the long run. That being said, these are the 9 types of dispensary SOPs we recommend you start with as you build and scale your dispensary store.
1 – Opening & closing procedures and SOPs
All brick and mortar retail stores should have SOPs in place for opening and closing the store. But especially stores that require high-security measures like cannabis retail stores. Opening and closing checklists for this special breed should include the following: Opening checklist:
Vibe check: Turn on lights, music, temperature, put out signs, clean.
Check for any signs of a break-in or forced entry every morning.
Make sure that all products in the display and stores are accounted for.
Put away any orders.
Review inventory.
Turn on and start up all software systems.
Ensure you are in dress code (if applicable)
End of day checklist:
Check that the security cameras are working.
Lock all the doors and display cabinets.
Check and report any obvious security threats/ logbook.
Generate sales and compliance reports.
Cash-out protocols.
Closing the cash registers and POS system.
Turn off lights, music, bring in signs.
Clean and sanitize the store.
Lock all doors and perform security checks.
2 – Customer check-in procedures and SOPs
Many cannabis dispensaries violate their customer check-in procedures and end up facing fines and license suspensions by regulators. Due to this, it is crucial that you implement customer check-in SOPs to ensure compliance.
Customer check-in procedures include:
Proper budtender training on protocols beforehand.
Screen every customer entering the store to ensure they are of legal age.
Ensure customers have a valid license to purchase cannabis.
Scan the customer’s ID to make sure it is genuine and valid.
Check the customer’s age, and enter these details into your customer database or tracking system.
Check the system to ensure the customer has not already gone over their purchasing limit at a different store.
Follow proper serving protocols.
3 – Sales transaction process and SOPs
Sales transaction processes are crucial to the business because this is how the company generates its revenues. Keeping track of these is key. Do you have the following sales SOPs? Sales transaction processes could include:
Greeter procedures (first customer contact),
Boxing and packing procedures.
Cashier procedures.
Answering customer product questions.
Recording product sales information into tracking systems.
Recording shipping information.
Processing various forms of payment.
Gathering sales tax to submit.
It would help if you integrated your SOPs with the technology you’re using, like cannabis-compliant POS systems.
4 – Delivery procedures and SOPs
Cannabis deliveries can get complicated as they tend to include strict guidelines around logistics. This is why it’s essential there are SOPs built around these logistics.
Delivery procedures could include:
Packaging and shipping guidelines with regards to the different types of products.
Procedures in place to pack and mark fragile deliveries — like glass bongs — clearly to ensure safe delivery.
Details and SOPs around third-party deliveries.
Sop’s around management tools or software.
Inputting data into the tracking software or POS system.
Proper accounting and documentation of the aforementioned.
5 – Security, accounting, and cash management protocols and SOPs
Cannabis retail stores face many challenges when storing and moving cash from the store to the bank. Since dispensaries are not legal at the federal level in the United States of America, they are limited in the services they can receive from banks. As a result of those limitations, dispensaries struggle with large amounts of cash being stored on the dispensary’s premises, so tight SOPs surrounding how to navigate these challenges are crucial.
Security and cash management protocols could include:
What employees are allowed in sensitive areas like stores and cash safes.
How long to keep security camera recordings and how to report a robbery.
How often armored trucks can pick up cash.
Who gives the cash to the trucks.
How the cash is stored while at the dispensary.
Who is keeping track of accounting and line items?
Who is keeping track of inventory management?
How are taxes being filed and accounted for, and by who?
6 – Track-and-trace & inventory management and SOPs
Track and Trace SOPs are important for every cannabis dispensary. In order to comply with the regulations, you have to adopt track and trace SOPs into your inventory management system.
These track and trace SOPs should cover:
Inventory management processes like procurement.
Transportation to store.
Product transfers.
Audits.
Track and trace software procedures that comply with local regulations.
Given how important track and trace SOPs are for compliance, you should automate this process if possible. Track-and-trace automation software can help you define the roles for each activity and integrate compliance checks.
7 – Quality assessment SOPs.
Quality assessment SOPs will make sure your product is up to the required standard by the regulators and that you are not violating any laws over what ingredients can be included in your products and how they are made. Failure to comply with these SOPs or pass a quality assessment could leave a dispensary owner at risk of losing their license. Quality assessment SOPs could include:
Purchasing products from verified sellers.
Ensuring products are tagged within tracking systems.
Ensuring you are selling products that you can legally sell within your geographic location.
Product feedback requests.
8 – Product recalls and emergencies and SOPs
Product recall SOPs will come into play when a defective product needs to be recalled from the market. This can be stressful for the team as it will lead to customers complaining, and management concerned about losses being recorded. One of the most valuable assets to have in this situation would be SOPs that guide your team on how to act in this situation without losing their cool or professionalism.
Recall SOPs could be:
How /who contacts purchasers.
Who is on top of product updates (do you have a compliance manager?).
Product recall script.
9 – Employee Management SOPs
Previously, these SOPs have been focused on inventory and store management, however, managing your staff is another large part of any dispensary operation.
When managing your staff it is recommended that you use employee management software to alleviate the stress of manually running operations such as dispensary payroll, scheduling,onboarding, ortime clock adjustments. Using software alone can eliminate the need for some of these SOPs but if you do choose to go the manual route you should have SOPs for the following procedures. Employee management SOPs could be:
How do you onboard employees?
Who manages their forms and licenses?
Who writes and manages the schedules?
How do employees swap shifts?
How do staff clock into shifts?
How runs payroll?
How are staff paid?
How are taxes paid?
How are employees’ performances reviewed, and by who?
Conclusion
These are the major SOPs that we believe you should have in place before opening or scaling, but don’t forget that enforcing them is just as crucial as implementing them!
The best way to run a compliant, systematic, and streamlined dispensary is to use great technology to help you succeed! Consider using a project management tool to help you stay on top of all your tasks, a people management solution for payroll, HR, time tracking, and scheduling, and a dispensary POS solution that integrates with track and trace technology and people management solution for the best results. By using the tools paired with standard operating procedures your dispensary is sure to succeed.
Author Tommy Truong is the Director of Partnerships at KayaPush; the cannabis software helping dispensary owners manage their employee HR, scheduling, and payroll. KayaPush also integrates with leading dispensary POS systems. Tommy loves hot sauce, fried chicken, and running with his Boston terriers.
Catalyst Conversations | 9.28.21 | Risk, Security, and Insurance Mean Something Completely Different in Regulated Cannabis
NCIA’s Catalyst Conversations series is an advanced webinar series curated to give enrollees in our Social Equity Scholarship program the opportunity to network and gain access to valuable knowledge that will help them excel in the cannabis industry.
In this edition of our Catalyst Conversations series originally aired on Tuesday, September 28, NCIA’s Risk Management and Insurance Committee teamed up with the Diversity, Equity, and Inclusion Committee to create a powerful discussion every Social Equity operator should join in on.
Legacy and Social Equity operators face many hurdles. One of the biggest hurdles is creating a risk management strategy and gameplan in the regulated industry, which can prove to be very different from the risk management strategies that may have gotten them here in the first place. In the regulated industry, the greatest risks to survival aren’t always so obvious, and the ways to mitigate those risks can often seem too expensive, or even worse, the service providers may be difficult to trust. The still-existent impact of the War on Drugs cannot be underestimated in the role it plays in this dynamic.
During this webinar, we host a lively discussion about the very real threats to the survival of small cannabusinesses, and the ways to mitigate those risks.
Attendees will walk away with these key insights:
• Understand the current state of Security and Insurance in the regulated industry
• Get pragmatic information on what to look for when vetting Security and Insurance firms and coverage
• Learn how to incorporate simple tactics into your current business strategy.
• Understand how the impact of the War on Drugs and making the transition from Legacy markets may affect your outlook on Security and Insurance in a unique way, and what you can do about it
• Recognize the importance of assessing and mitigating financial risk in the regulated industry
A special thank you to the benefactors of NCIA’s Diversity, Equity and Inclusion Program which are listed below!
Service Solutions | 9.15.21 | 5 Growth Hacks Cannabis Retailers Can Learn from Mainstream Retailers
NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition originally aired on Wednesday, September 15, 2021 we were joined by American Security Services, a leader in home & business safe solutions for 75 years, to discuss cash management problems facing the cannabis industry today and what retailers have discovered as a solution.
In this session you’ll hear from operator-owners in cannabis retail and their financial partners about the growth hacking tips helping them grow greener profits, faster. Still UNbanked? This session will give you the tools you need to make decisions about your cash and asset management today and in the future.
In this session, you will learn:
• How to improve operational efficiencies at the point of sale through end-of-year financials.
• How to get provisional credit from the bank and increase cash flow.
• How to select the right Cannabis-friendly financial partners.
• How to identify hidden threats to your bottom line and overcome those threats with technology.
• How to set the bar for compliance safety and security that will last you the next 30 years.
Speakers:
Albert Porto, National Sales Manager, Smart Safes, American Security
Rony Ghaby, Director of Operations, Sectran Security
Steve Morss, Chief Cash Operations, Dama Financial, Cannabis Banking
Member Blog: Want to Open A Dispensary In Oklahoma? Here’s What You Need to Know.
In Oklahoma, the cannabis business is thriving. Yes, the controversial plant that users were prosecuted for using so very recently, is on a roll. You could even say, there is a cannabis rush.
In this article, we will cover how you can go about opening a dispensary, including how to acquire a license, and some laws you should be aware of. And we will also touch on how to set up your dispensary operations and software! Let’s dig in!
What do you need to open a dispensary in Oklahoma?
The process of opening a dispensary should go smoothly if you fill out an application form and follow the Oklahoma Medical Marijuana Authority’s guidelines. Although the costs of opening a cannabis dispensary in Oklahoma are significantly lower than elsewhere, it is critical to have accurate information and to review some of the most relevant regulatory constraints.
Let’s start at the beginning, if you intend to learn how to open a dispensary in Oklahoma for commercial purposes, you must be at least 25 years old before proceeding. You must also make the following items available:
Proof of Oklahoma residency
A tax ID number, as well as a general business license
Valid identification documents
You’ll need to assess your commitment after you’ve got everything in place. Not only must you be informed of current cannabis production and sales regulations, but also of proposed legislation and revisions that may shortly come into force.
Now that you’re certain you’re ready to make this big move, it’s time to proceed to the next step: finding a suitable property.
You should check the following:
Rent cost
Cost of license
Licensing application fee
Employee salary
Transportation and storage of product
Security
How to get a dispensary license In Oklahoma.
Licenses for growers in Oklahoma come in the form of a certificate and are issued through the OMMA website. The charge to producers, processors, and dispensaries for applying for a license is $2,500. You must provide the following to apply:
A business plan
A financial plan
An inventory control plan
Patient education
Record keeping
Security plans
There are distinct rules in every state in the United States about opening dispensaries. Each state sets its own standards. You will need to study the rules that apply in Oklahoma.
The general requirement for opening a dispensary in Oklahoma is that you undergo marijuana dispensing training and acquire a license.
How to keep your dispensary compliant in Oklahoma.
You must abide by all of Oklahoma’s strict marijuana regulations to keep your dispensary compliant. These include:
Marijuana dispensaries in Oklahoma are prohibited from selling more than the following amounts in a single transaction:
Three ounces of cannabis
Concentrate of one ounce
72 ounces of cannabis
Oklahoma dispensary owners, like any other legitimate business, must pay taxes and ensure that they give the following information:
All cannabis-related information with other permitted firms
Details of batch numbers that show the weight of cannabis acquired at wholesale
The number of plants that have been approved for relocation to other locations
Batch numbers showing the weight of cannabis sold
Record of all items that have become obsolete
Substantial fines are imposed for noncompliance. There is a $5,000 punishment for a first infraction while a second offense will result in license revocation. Because of this, you are going to need the assistance of technology to automatically update you if the OMMA cannabis rules change.
Understanding Metrc in Oklahoma.
Metrc is an integrated system for tracking and tracing marijuana products in real-time. Every plant and its wholesale shipment has a unique tag attached by licensees. To uniquely identify each plant, these tags use readable text, barcodes, and radio frequency identification (RFID) chips for easy identification.
Metrc is already being used in Oklahoma following the state’s legalization of marijuana. The OMMA can only see and track inventory once it has been entered into Metrc by a commercial licensee.
To get started with Metrc in Oklahoma you should:
Watching their training videos and schedule training.
Request online access and complete the New Business System Metrc training with your dedicated Metrc Account Manager.
Connect all of your employees with Metrc and make sure they have the permissions they need for their jobs.
Request Metrc plant tags, package tags, and other UID tags and document the physical receipt of requested Metrc UID tags.
Assign UID tags to your cannabis items.
Access the Beginning Inventory Guide in Metrc for proper guidelines and references to other important factors.
What are the dispensary laws in Oklahoma?
Cannabis laws in Oklahoma are the guidelines that every cannabis dispenser must heed while dispensing medical marijuana. Every prospective cannabis retailer will be guided by these same rules, and it is one of the first things you discover when learning how to operate a dispensary in Oklahoma.
Some of these rules include:
To legally sell cannabis, you’ll need a state-issued license, but CBD oil made from industrial hemp is permitted without one.
Patients must first obtain an authorized medical marijuana card to acquire and consume medicinal cannabis.
Possession of paraphernalia is a misdemeanor that carries a maximum sentence of one year in prison and a fine of $1,000.=
Individuals under the age of 18 are only allowed to enter a dispensary with an adult who has a valid medical card.
The sale of fewer than 25 pounds of marijuana is a felony punishable by a two-year prison sentence and a $20,000 fine.
Who can your dispensary sell to in Oklahoma?
Only medical cannabis patients (or their caregivers) with valid patient licenses can shop at an Oklahoma dispensary. Medical cannabis is available to Oklahoma residents over the age of 18 who have a physician’s recommendation.
A physical medical marijuana ID card or the state’s database can be used to verify a patient or caregiver. Out-of-state persons or companies are not permitted to purchase medical marijuana from licensed dispensaries. Licensed processors can sell to other licensed processors and licensed dispensaries.
Oklahoma dispensary market size and opportunity.
Despite its accomplishments, the cannabis industry in Oklahoma is still in its infancy, and the environment is rapidly changing. Marijuana laws in the state are continually changing to make it more accessible.
Another feature that distinguishes Oklahoma from other states is that it allows cannabis smoking and vaping anywhere that tobacco can be lawfully consumed, such as on the sidewalk or in a bar that allows smoking. As a result, Oklahoma has morphed into an industrial cannabis state with a variety of dispensary options.
There are only a few challenges to overcome. Any sort of cannabis — from raw flowers to topical lotions, from oils and gels to vaporization and patches — can be sold by anybody who pays $2,500 for a dispensary license.
Cannabis legalization has resulted in a significant expansion in legal cannabis cultivation and distribution, as well as an explosion of related service providers in many states. Cannabis has become a lucrative business prospect for many inhabitants in the state.
What cannabis software do I need to run a dispensary?
To run a compliant dispensary in Oklahoma, you will need the following business software:
One of the most important technologies in a dispensary is a point-of-sale system. A compliant POS system will make sales transactions easier for your dispensary’s staff and provide the greatest payment options for customers. A POS can help run the following tasks:
Regulate inventory control and legal compliance
Manage customer check-in and ensure that your customers follow the daily sales tracking guidelines
Assists you in automatically rejecting transactions for people who are not authorized to buy.
Integrate with the Metrc system, and keep you compliant.
Integrate with yourscheduling softwareand provide labor forecasts for scheduling.
Produce all sales and customer reports for the approval of cannabis authorities.
Dispensary payroll software.
Integrated dispensary payroll software will assist you in managing your employees’ pay. It manages all expenses and interfaces with other systems such as personnel administration and payroll tax deductions. It makes direct contributions to the IRS and compensates employees via direct deposit. Another benefit of using an integrated payroll system is that you can integrate your company’s payroll with the rest of your workforce management suite; performing tasks like approving clocked hours to payroll, and running payroll in the click of a button. Dispensaries who used this type of system report saving 5 hours per week on running dispensary payroll.
Scheduling and time tracking software.
Also known as workforce management software, integrated scheduling and time tracking software makes creating staff schedules, and managing staff hours very hands off. With this type of software, you are able to create schedules remotely, and staff can request shift swaps or time off. With time tracking, staff can sign into work using facial recognition technology, and staff-approved hours can be streamlined to payroll – so staff who clock into their shifts, get paid with the click of a button.
Dispensary HR software.
Recruiting, hiring, interviewing and onboarding can take up a lot of time. Especially when staff have important documents they need to sign, and criminal record checks that need to be completed. With dispensary HR software you can automate recruiting, and onboarding, by having staff onboard themselves and sign digitized documents.
A Security system.
A good security software system with cameras to monitor what goes on inside and outside your dispensary should be paramount to ensure your dispensary remains compliant. You will need a system where you can monitor all the affairs of your dispensaries at one glance without being in different places at the same time.
Inventory management software.
You require some software to help you manage your inventory, and the process of placing orders and confirming inventory counts from your vendors. You’ll also need a system that will remind you when new orders are needed when it detects product shortages.
Website.
If you are in a state that allows e-commerce for dispensaries, a website should be a top priority for competing for top rankings in today’s market. Because of technological advancements, you may now open an e-store where customers can buy cannabis online and have it delivered to their doorsteps.
Your website should be able to collect KYC information from your consumers to verify their identities and eligibility to acquire cannabis products, so you can be confident you’re following the cannabis serving guidelines. If you deliver a cannabis product to someone who isn’t eligible for it, you’ll be breaking the rules guiding cannabis consumption, and this might be a huge risk for your new business.
Metrc.
Metrc, also known as Marijuana Enforcement Tracking Reporting Compliance is a regulatory compliance system and was built to keep track of cannabis cultivation, preparation, and packaging. Basically, Metrc is a database for tracking cannabis from seed to sale, and identifying it using RFID tags. In Oklahoma, you must submit data to Metrc to run a compliant dispensary. Reporting to Metrc can be done manually, however cannabis-specific POS systems are offering a Metrc integration, meaning it is done automatically for you as you sell your product.
What else do I need to know?
Now that we have covered all the technical and operational bases, the rest is up to you.
Other key parts of opening a dispensary include considering where your store might be located, what your brand value and vibe will be, and how your product and store will look.
Marketing should also be a consideration, as well as staff training, and company culture.
Many new cannabis entrepreneurs hire consultants to help them navigate these areas.
For now, we hope this has been a helpful way to get you started.
Tommy Truong is the Director of Partnerships at KayaPush; the cannabis software helping dispensary owners manage their HR, scheduling and payroll all from one easy to use platform. KayaPush also integrates with leading dispensary POS systems, giving you an end-to-end solution. Tommy loves hot sauce, fried chicken, and running with his Boston terriers.
Member Blog: How To Choose A Point Of Sale System For Your Cannabis Dispensary
The Canadian cannabis industry has witnessed great success since federal legalization in 2018. In the United States, 35 states authorize the use of medical cannabis, and 15 of them allow recreational marijuana consumption. Potential dispensary owners should bear in mind that the cannabis industry operates under strict laws and regulations that set this business apart from conventional retail operations. A robust point-of-sale (POS) system is one of the most important tools that a dispensary owner must invest in. However, it’s also crucial to remember that not all POS systems are created equal, and a cannabis industry-specific POS will always be a better choice than a generic POS. Following are some of the most important criteria that you should consider when selecting a cannabis POS:
Product Design and UX
A cannabis-specific POS created specifically to address the nuances and pain points of cannabis businesses is your best bet. A well-designed system helps you quickly process actual sales and facilitate better inventory management. An intuitive and easy-to-use system boosts the performance of your budtenders by making product information and customer data available to them on the fly, thus elevating the overall customer experience as well.
Compliance and Traceability
Compliance is the number one administrative burden dispensaries have to deal with because of the stringent laws and scrutiny the cannabis industry has to undergo. A well-executed cannabis-specific POS system empowers owners to stay compliant at every stage of their business. Most states in the US require tracking of inventory and sales through a state-mandated traceability system such as Metrc or BioTrack. Even among cannabis POS systems, the level of integration with the government tracking system varies, with many offering only batch reporting at the end of the day. Choose a POS that automatically sends every reported transaction in real-time to the tracking system, thus helping you minimize human errors and always stay fully compliant. Many legal cannabis markets also require digital age verification scanners for dispensaries to scan IDs at the point of entry. So ensure that your POS provider provides all these functionalities.
Reliability and Data Privacy
There have been instances of generic POS crashing when used by cannabis stores. Even popular cannabis-specific POS systems have had recurring performance issues. Learn more about each of the POS systems in consideration by reading reviews and customer stories to figure out how reliable they are. A cloud-based POS system entails storing data on remote servers operated and maintained by a third party. It poses a lower technical barrier to entry and is definitely a cost-effective solution, but you must ensure that your POS provider protects all your dispensary and customer data, as per government regulations.
Inventory Management and Reporting
A well-designed POS system offers inventory valuation and costing methods integrated into your POS to streamline your inventory management. A dispensary-specific POS will provide you the sales trends data you need to most accurately judge the weights, strains, and quantity of products you need to stock up. Many states in the U.S. expect you to have a clear paper trail on every legally grown gram of cannabis, from seed to sale, and your POS system must have efficient reporting capabilities for you to report that. Powerful analytics and a customizable mobile reporting dashboard will enable you to monitor the health of your store and submit reports in real-time from anywhere.
Hardware and Software Integration
How your dispensary POS integrates with your other services and technology is another factor. Consider all the physical hardware that is being used in various sections of your dispensary and whether the POS provider can sync them with its software. You will have to integrate your accounting, HR, workforce, and security software solutions with your POS as well to ensure smooth operations. In a fast-evolving industry, new platforms and innovative solutions can hit the market almost overnight, but you must only select a POS that seamlessly integrates just not with your hardware and software but also with online marketplaces like Leafly, Weedmaps, and Dutchie so that you can offer easy pickup and delivery services to your customers as well.
Product Development and Support
A cannabis-specific POS company that has extensive experience in the industry will remain an authority on the latest developments, and will regularly update its product to stay ahead of regulatory changes. Find out about the after-sales customer support system they have in place- many companies will help you launch quickly but will disappear when problems may arise and leave you to tackle software glitches on your own. Also, choose a dedicated system for your retail business that specializes in the cannabis sector you operate in and is not an all-in-one solution.
Scalability and Cost of Ownership
An enterprise-level POS allows you to manage stock across all stores, set up location-level pricing, perform bulk editing, and even assign granular employee security permissions. It gives you complete visibility and full corporate control of your business with centralized reporting- accessible from anywhere, on any device. A POS built for multi-location brands has a robust platform with open APIs to enable flexible, plug-and-play integrations for easy scalability. Choose a POS provider that has the cannabis industry expertise and the ability to grow with you. Even if you may have to pay a bit more upfront, you will benefit from the long-term ROI and reduce your overall cost of ownership.
Gary Cohen is the CEO of Cova Software, the fastest growing technology brand in the cannabis industry. Cohen’s focus has been driving the company’s overall strategy, including its vision, go-to-market plan, and strategic development. Since joining the cannabis industry in 2016 and launching Cova commercially in 4q17, Cohen has led Cova to dominate the enterprise sector for dispensary Point of Sale, while forging client relationships with hundreds of single-store retailers across North America.
Cova designs and builds retail software solutions specifically for the cannabis industry. Our technology platform currently powers 20,000 retail stores and over 1000 cannabis dispensaries with virtually no downtime, even on 4/20, making us the most robust and reliable cannabis POS system available on the market. Our point of sale system and its suite of digital solutions make complex operations simple, so retailers can stay compliant, streamline their operations and deliver an amazing experience always.
Member Blog: As Cannabis Sales Rise, So Do Questions About Privacy and Security
Frank Nisemboum, Vice President of ERP Sales at c2b teknologies
Legal cannabis is a big business that handles big data. From personalized data to protected health information to cannabis information that requires regulatory compliance with cybersecurity and data privacy laws–the entire cannabis industry faces data privacy and cybersecurity challenges not faced by other sectors.
But wait, other sectors have to navigate data concerns, too right? Cannabis is different. Aside from adhering to all the typical privacy concerns, cannabis data comes with a layer of complexity for cannabis operators due to industry-specific data collection and mandatory retention requirements surrounding it.
Growing Cannabis Data Collection
A cannabis customer provides a vast amount of personally identifiable information every time they buy legal marijuana products. These individuals present a government-issued ID card to confirm they are at least 21 for adult-use purchases or prove they have a prescription to access medical marijuana. The data collected on each transaction includes customer or patient name, date of birth, address, phone number, driver’s license or medical ID card numbers as well as email addresses and signatures.
Cannabis dispensaries also provide equally large amounts of operations data to METRC (Marijuana Enforcement Tracking Reporting Compliance), used in 13 states and the District of Columbia. METRC is not the only government reporting company used to maintain cannabis compliance. For example, California relies on the CCTT (California Cannabis Track-and-Trace) system to report the inventory and movement of cannabis and cannabis products throughout the cannabis supply chain.
Cannabis legalization is expected to spread across the country to all 50 states now that adult-use cannabis is permitted in 11 states and Washington D.C. and 36 states allow medical marijuana. Many of those states require all cannabis licensees, both annual and provisional, to use METRC to track marijuana products through the entire supply chain.
Cannabis cultivators, manufacturers, retailers, distributors, testing labs, and micro-businesses need to manage and maintain those records for a minimum of seven years. It’s a tremendous amount of valuable data for cannabis companies to track, the precious data cybercriminals and hackers seek out, including combinations of protected personal and health data like social security numbers and diagnoses with supplemental information like addresses, copies of ID cards.
If a cannabis company dispenses medical marijuana to patients or supports one who does, they fall into the regulatory oversight of the Health Insurance Portability and Accountability Act (HIPAA) and the Office of Civil Rights (OCR).
Safeguarding Cannabis Data
Legal cannabis and the data security issues it creates form multi-prong challenges from a legal and technological perspective. The cybersecurity and data privacy requirements don’t come with a roadmap cannabis operators can borrow from other industries due to the massive repositories of personalized data that require regulatory compliance with cybersecurity and data privacy laws.
The collection, storage, and security of all this valuable data raise many privacy and security concerns, especially when guidelines for collecting the information vary by state. For example, Ohio and California must house personal data using third-party software to track inventory and retail point-of-sales, whereas Illinois dispensaries cannot store any personally identifiable information onsite and instead use cloud or other off-location services.
Healthcare companies make attractive targets for hackers and often suffer data breach more often due to their huge storage of protected health information (PHI). Medical dispensaries and supporting companies handle PHI too, but PHI is not all a cybercriminal may want from a cannabis operation.
Employee records often contain background checks and financial data along with personally identifiable information such as name, date of birth, and SSN, all in one nice package. And cannabis data has been breached several times in recent years.
Cannabis Data Breaches Happen
Even as a newly legitimized industry, cannabis organizations have already experienced high-impact data and security breaches. In early 2020, a database breach that impacted almost 30,000 people connected to the marijuana industry resulting from an unsecured Amazon S3 data storage bucket was reported. The data breach included scanned versions of government-issued ID cards, purchase dates, customer history, and purchase quantities.
In 2019, a Canadian cannabis company exposed the electronic medical records of over 34,000 customers.
Between 2016 and 2018, the cannabis-tracking software provider MJ Freeway endured significant data breaches where over 1,000 dispensaries in 23 states were hacked. Less than six months later, hackers stole a portion of MJ Freeway’s source code and posted it publicly to social media.
Prior to that, Nevada’s Medical Marijuana Program database was breached in 2016, exposing sensitive personal data of over 11,000 people involved in the Nevada cannabis industry. This breach included names, social security numbers, race, as well as home and business addresses.
Cannabis Operators Short on Cybersecurity Budgets
Cannabis companies are responsible for securing their data to protect their customers and staff. To prevent data leakage, point-of-sale machines need endpoint protection, encryption, secure backups with proper network segmentation.
Unfortunately, some cannabis organizations fall short of installing appropriate cybersecurity measures that could have far-reaching effects on a cannabis user. Leaked personal data could have negative personal and professional consequences for the cannabis patient whose workplace prohibits cannabis use.
To avoid becoming an easy target, cannabis companies need to focus on data privacy and security just as much marketing and sales. The penalties from having a customer or employee’s personally identifiable information and cannabis-related data exposed can be too expensive to ignore and fail to give confidence that their data is secure.
Vice President of ERP Sales, Frank Nisemboum,is a trusted advisor at c2b teknologies who has guided organizations of all sizes enabling them to establish a technology presence and expand their business through technology. His proven ability to analyze the current and future plans of a company and work with team members to subsequently bring technology solutions to the organization result in improved processes and controls that assure continued growth and profitability.
Frank has worked in the ERP and CRM software selection, sales and consulting industry for almost 25 years. His strong ability to understand, interpret and match the needs of an organization to the right solution make him an asset to all of his clients.
c2b teknologies integration and engineering experts have partnered with leading cannabis industry experts to develop a software solution that provides a complete cannabis operations system. The best-in-class solution not only handles tracking of seed-to-sale activities but encompasses your entire cannabis operations with compliance needs handles along the way. Our passion for solving problems drives us to deliver innovative solutions for everyone we work with. Visit c2btek.com for more information.
Member Blog: Cannabis Business Security – Going Above and Beyond
In 2018, Sacramento CBS reported crooks stole $80,000 worth of cash and cannabis products from TotalLeaf Inc. after circumventing the facility’s alarm system and video surveillance technology.
Christopher Cohen, owner of the Sacramento-based cannabis manufacturing and distribution company, told the news outlet his security plan passed muster with state and local authorities, but noted the company upgraded its security after being robbed. The edibles-to-oils manufacturer has added steel doors, additional security cameras, alarm systems, fences and bolted-down safes. The firm also hired a private security company to watch over the property 24 hours a day, seven days a week.
Commercial cannabis businesses, like TotalLeaf, are prime targets for burglary, robbery and internal theft. This is not surprising in a cash-based industry with a flourishing black market. Commercial cannabis business operators must maintain stringent and customized security strategies that go beyond state and local minimums to fully protect their businesses from crime.
In states where cannabis is legal, the first step toward acquiring a commercial cannabis license is meeting state standards. However, a growing number of local communities are expanding on these bare minimums and applying a wide-ranging set of additional security requirements for commercial cannabis businesses. Emerging local regulations incorporate specific design elements, lighting standards, manpower requirements, and heightened camera and alarm standards.
Regulations vary by municipality. Regarding design elements, local entities typically require the use of door-redundant screening areas, internal/secure loading areas, and reinforced product storage rooms. A minimum exterior lighting standard of 1.5-foot candles of LED, white luminance, and prohibitions against up-lighting and light trespass are also common. Some localities even demand one or more armed, or unarmed, security guards on the premises, during business hours and sometimes around the clock.
Gaps remain though local regulations are more stringent, says Matt Carroll, President of Carroll Consulting and Director of Compliance for Seed to Sale Security. Carroll, who develops security plans for cannabis operations, finds, “There is little value in meeting state (and local) standards just to check a box for compliance. Operators seeking to enjoy peace of mind and asset protection will approach security planning from two different perspectives: technical compliance and actual security. Existing regulations do nothing substantive to deter burglary, robbery, or to protect the safety of those working within or visiting a commercial cannabis business.”
But what does going beyond security requirements actually look like? This article investigates how cannabis operations can better harden their security by voluntarily meeting additional requirements for security cameras, access control and alarms.
More Security Camera Coverage
State-level cannabis regulatory bodies typically demand a basic level of surveillance coverage for access points and limited access areas, which are spaces where operations process, store or transfer cannabis goods. Most local authorities expand this requirement to include security camera coverage on all sides of the building, adjacent thoroughfares, and more thoroughly throughout the interior.
States also set a minimum resolution for security cameras. For instance, California requires a minimum resolution of 1280×720 pixels (e.g. 1 megapixel). Herein lies the problem: Any minimum megapixel standard predisposes operators to meet the minimum standard and little else. But, doing so may not achieve the goal of “certain identification” as expressed in the regulations.
Security camera megapixel ratings mean virtually nothing. For certain identification to take place, companies must also factor in the distance of the targeted viewing area from the camera placement, and the camera angle, lens quality and compression rates.
For positive identification in idyllic lighting conditions, security cameras must meet a minimum standard of 60 pixels. For night mode, positive identification demands up to 90 pixels per foot. This is what matters: pixels per foot (PPF) at the target, not the camera resolution. IPVM, an independent research group, has developed a great video to drive these points home.
Regulatory agencies hoping to get footage of value from crimes in cannabis settings would be wise to adopt a PPF standard over an overly simplistic megapixel standard.
Better Access Control
With access control, state regulations typically require walls, doors and commercial-grade locks. They also expect operators to maintain a log of visitors and those accessing video surveillance systems. More stringent access control regulations are few and far between.
Though reasonably priced biometric and electronic key systems are readily available, hand-written logs meet most state and local regulations. However, manual logging is unreliable. Using a manual system, coupled with PPF-ignorant video standards, puts access control on the honor system.
Responsible operators fill the gaps regulations ignore. These business owners reinforce storefronts and roll-ups with K4 or better rated bollards to deter vehicular intrusion. They install solid-core doors at all exterior access points and at internal doors leading to limited access areas. They equip doors with pry-resistant latch covers and automatic closing devices. They reinforce shared walls to prevent tunneling and they fortify product/currency storage rooms.
They also use electronic access controllers that limit staff to areas of relevant roles and to the days and hours when employees work. They reduce opportunities for human complacency to override their access control strategies from initial design, to technology, to supporting and enforcing policies.
Improved Alarm Systems
Short of mandating that operators install an alarm system that is operational after hours, most states establish no standards for monitored intrusion alarms at commercial cannabis businesses. This is another area where applicants can fill in the gaps.
Some jurisdictions mandate a specific Underwriter’s Laboratory (UL) standard for intrusion detection and robbery alarms.
Beyond meeting UL standards, it’s also important to extend the focus of an intrusion alarm system beyond exterior access points. Offenders can come in the form of stowaways concealing themselves inside until closing. They may be employees accessing areas they shouldn’t or third parties who find less expected ways to access the premises, such as tunneling through walls or ceilings and misappropriating ventilation shafts.
A properly designed alarm strategy protects against these situations by establishing various partitions, allowing for “home” and “away” modes, and setting aside areas for management-only access. Even while occupied by workers, certain areas of the premises, such as product or currency storage areas, should remain under alarm monitoring.
Finally, a thorough alarm system abides by UL Standard 681, incorporating contact points at every door; sufficient motion detectors to detect movement in any direction, in any area of any room; glass break sensors; ventilation protection; and panic alarms at vulnerable positions, such as the entrance, loading areas, product/currency storage areas and the management office.
What more can you do?
Responsible cannabis operations also seek to elevate the safety and security of the entire industry.
This includes lobbying at the state level for severe criminal penalties against those engaged in the black-market trade. Public acceptance of cannabis often leads prosecutions to fall flat as jurors shrug about black-market activities. Black-market operators also view the limited penalties as a cost of doing business. But, as long as the government handles black-market cannabis retailing with kid gloves, criminals will target legitimate operators for their stockpiles of Grade-A product.
It also includes lobbying at the local level for more stringent security standards. Offenders who reap the rewards time after time an area will continue to target that area. But if cannabis business owners’ partner with local authorities to tighten up safety and security standards, their businesses become an environment where the juice is not worth the squeeze for offenders, ultimately driving their crimes to regions with less formidable targets.
Finally, it includes teaming with proven security experts who work in the cannabis space; following their best practices, developed based on real-world experiences; and teaching others in the industry to do the same.
Patrick Chown, is the Founder and President of Seed To Sale Security, a national cannabis security company offering security consulting, security plans, and security system installation to customer’s in 30 states. With cannabis-specific technology and a proficiency with regulatory compliance state by state, Seed To Sale Security makes sure your cannabis business stays safe, secure, and compliant.
Member Blog: The Cannabis Industry Requires New Security Thinking
The legal medical and adult-use cannabis market has grown to an estimated size of 7.1 billion dollars. With this growth comes an array of new opportunities and challenges for cultivation centers and dispensaries. These entities are looking for solutions to ensure they meet regulatory requirements, secure their facilities and produce products of the highest quality.
Click to read the case study
Some of the security and operational concerns for cultivation centers may include:
Compliance with state-mandated requirements for facility and security system design
Tightly controlled access
Secured storage vaults
Complete security camera coverage, with the exception of bathrooms and locker rooms
Ability for state officials to log in to the security system remotely
Monitoring of the environment in cultivation rooms
Revolution Cannabis, a cultivation center located in central Illinois, addressed these challenges with a new access control system. The company not only met state regulatory requirements but also prevented any incidents from occurring.
To learn more about how Revolution Cannabis was able to solve their security and operational challenges, read the full case study.
Tom Dillon is a marketing associate at S2 Security, the leading developer of complete enterprise security solutions. As marketing associate he helps manage S2 Security’s marketing initiatives including content development, public relations product marketing.
Member Blog: Three Security Must-Haves for Marijuana Dispensaries
The proliferation of both legalized medical and recreational marijuana has, not surprisingly, led to a massive boom in dispensaries — and, with that boom, increased focus on these burgeoning businesses and their increasing security needs. “Inventory will increase, cash holdings will increase, and the number of people accessing legal cannabis for the first time will naturally evolve to a larger customer base,” writes Marijuana Retail Report. To many industry and security experts, this presents a perfect storm — high value products, cash on hand and less scrutiny over who’s coming through the door.
If you’re launching or scaling a marijuana business, it’s essential to unpack several basic security challenges and overarching needs. By safeguarding your business from day one, you’ll be better positioned to protect your inventory, your customers and your business, while maintaining a well-designed, welcoming environment for workers and buyers.
1. Security Guards
Many dispensaries want to avoid a visible security presence — which makes sense. Because of marijuana’s history and, still, the stigma that exists in many communities, seeing a security guard can make customers feel skittish or even avoid coming in entirely.
The solution? Have point-of-entry security that facilitates a positive customer experience. Many businesses, for example, opt for plain-clothes guards or guards with uniforms that mimic the rest of the in-store team. “Since they are the first point of contact,” explains MMR, “ensure that they are helping consumers feel welcome and invited, yet are able to maintain a zero-tolerance stance on any customer activities that could present a perceived threat to your dispensary, staff and other customers.”
2. Secure Transportation
Getting marijuana from growers to dispensaries and shops presents another layer of security concerns. Because the product is so in-demand and so valuable, it’s an appealing target for retail crime, from the minute it’s harvested. If you’re handling transportation yourself, be sure your fleet is equipped with the basics — bullet-resistant finishes, GPS tracking and streaming videos that feeds to your security “home base,” for starters.
For many businesses, though, managing this level of high-stakes transportation is too much to take on, especially in the beginning. For them, there are a variety of transportation-focused companies who specialize in cannabis and medical transport, and can ensure your product arrives safely and securely every time.
3. Internal and In-Store Theft Prevention
The majority of dispensary losses come from employee theft. While there are several steps businesses must take early on — thorough employee screening, background checks and a solid inventory management and POS system — it’s essential to maintain in-store security measures that discourage “heavy-handedness” and full-on theft.
During the onboarding process, supervisors and dispensary owners should be clear that employees cannot sell to themselves. Beyond that, ensure you have a clear-cut “friends and family” discount policy in place and that it’s communicated and adhered to. No discounting allowed? Make sure that’s made crystal clear, too.
Taking things a step further, be sure to integrate physical protections for your product. Senseon Secure Access recently topped IndicaOnline’s list of the top five security services for marijuana dispensaries, with a specific eye on the company’s smart cabinetry systems. With automatic relocking and customizable permissions for staff, it’s easy to safeguard cannabis while, at the same time, maintaining a close eye on who’s accessing what when — if there’s a problem with products, tracking down the culprit is easier than ever. And, with a keyless entry, there’s no risk keys will end up in the wrong hands ever.
As the cannabis landscape grows and expands, security needs will, too. But, for now, focus on these three must-haves to protect your dispensary today and tomorrow.
Evan Hicks is Marketing Coordinator for Senseon Secure Access, a product of Accuride International. As coordinator, he helps manage Senseon’s marketing initiatives covering communications, events, and research & development. With an unquenchable thirst for learning, Evan frequently finds himself deep in the rabbit hole conducting research for Senseon’s multiple markets.
A graduate of California Polytechnic University, Evan has nearly a decade of experience in security and public relations in both the public and private sector.
Member Blog: Customer Privacy – Keeping Personal Information Secure and Compliant
Despite the national trend toward legalization and a growing consensus of acceptance among Americans, privacy is still a chief concern among many legal cannabis consumers. And across the industry, no one bears the burden of these concerns more than cannabis retailers.
As a cannabis retailer, you’re pulled in several directions. First and foremost, you’re beholden to state reporting requirements; on the medical side, this means validating recommendation letters and patient identification and storing this information securely.
On the adult-use side, you’re torn between the need to collect certain customer information for marketing and sales purposes and the overwhelming fear and distrust from customers concerning their personal privacy.
It’s a delicate balancing act—and as requirements continue to evolve, retailers need a system in place that’s both functional and flexible.
Determining Your Dispensary’s Needs
As a cannabis retail owner, your number one priority is compliance. And when it comes to patient and customer privacy, you need to determine exactly what your state’s requirements are per your particular operation.
If you’re a medical dispensary, your data security needs are going to be much different from that of an adult-use retailer, and vice-versa. If you run a joint medical and adult-use operation, you’re going to have to find a solution that caters to both.
Legal states have widely disparate laws concerning patient/customer privacy and data collection. For example, Oregon passed legislation earlier this year making it illegal for recreational retailers to keep customer information—such as names, addresses and birthdates—on file for longer than 48 hours.
On the other hand, medical dispensaries need some sort of system for identifying patients and their doctor-certified cannabis recommendations, while both adult-use and medical operations need to be able to track sales to individuals to ensure transaction limits aren’t exceeded.
Finding a Solution That’s Right for You—and Your Customers
Even though state laws mandate cannabis sales tracking and reporting, state agencies are not providing dispensary owners the tools needed to perform these functions in the most efficient manner.
Some statewide reporting solutions offer point-of-sale software that retailers can choose to use. But, as we’ve seen with the ongoing kerfuffle that some states are experiencing with their chosen systems, these technologies are not always the most reliable.
In these instances of statewide system failures and security breaches, what becomes of your customers’ personal information?
Cannabis retailers need a solution that can be tailored to their particular operation—be it medical, adult-use or both—and that is flexible enough to keep up with constantly-changing privacy and information collecting requirements.
Additionally, dispensary owners need to know that in the event the state’s system crashes or is breached, they can record sales using excel spreadsheets or continue ringing sales if their retail software permits all while maintaining their customers’ privacy.
Gary Cohen leads Cova’s charge into the legal cannabis space by guiding the vision, strategic development, ‘go to market’ plans and culture. A Denver native, he recently moved back to establish Cova’s HQ there. While he joined Cova only a year ago, he was a successful business partner to Cova’s parent company since 2011.
Before joining Cova, Gary was a principal in over a dozen tech start-ups in the mobile communications industry ranging from small VC funded companies to Fortune 100 firms, including Onavo, which was later acquired by Facebook. In those companies he lead Sales, Marketing, Business Analytics and Market Expansions. He has also held a multitude of leadership roles with Verizon and AT&T for the first 15 years of the wireless industry.
Gary holds a Degree in Finance with a Masters in Marketing from the University of Colorado.
Cannabis State Applications: Don’t Forget Your Security Plans
A United States marijuana production license from 1945
There are three things in business you should never do:
Be your own doctor
Be your own lawyer
Write your own State Cannabis Application
Having been involved in the cannabis industry the last few years, I have seen many businesses and entrepreneurs who have a strong desire to get into this industry. Some want to own cultivation centers and grow marijuana, others want to run a dispensary and sell the marijuana, and then there is another more ambitious group who wants to do both. I think this is great and I encourage all to get involved in this growing and ever-changing industry.
But before you buy your cannabis equipment and hire a staff, you will first need for your state to give you a license. In order to get this license, you will need to apply to the state for review and approval. Your application can range from 300 to 2,000 pages and will cover a wide range of operational programs, including a well-defined security plan.
The primary purpose of a cannabis security plan is to provide a safe and secure environment for your employees, patients and visitors. Your security plan will cover facility security, security surveillance, product security, and policies & procedures.
Just like a doctor who specializes in a disease or a lawyer who only deals in certain types of the law, you want to make sure the person or company
who writes your application has written previous cannabis state applications. This is not the time to give a lawyer or accountant friend, ex-DEA agent, or a retired police chief the chance to learn how to write a cannabis application. Remember, you may only get one chance at a cannabis license and the state regulatory agencies are not very forgiving when it comes to incomplete or poorly written cannabis applications.
So make sure your cannabis application is the best it can be and look for a professional who specializes in this type of application writing.
I wish you the best of luck in this new and exciting industry.
Watch this YouTube video of Tony Gallo from Sapphire Protection speaking about security at CannaStock on September 26, 2014.
Tony Gallo is the Senior Director of Sapphire Protection (www.sapphireprotection.com) with over 30 years in the Loss Prevention, Audit, Safety, and Risk/Emergency Management fields. Tony has a Bachelor of Science degree in Criminal Justice from New Jersey City University and is a member of Americans for Safe Access and National Cannabis Industry Association. Tony is considered one of the leading authorities in cannabis and financial loan service, retail loss prevention, and security. Contact Tony at tony@sapphireprotection.com and follow him on Twitter at @SapphireProtect.
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Common Latch Guard:
“Panic bar” styled exit system:
“Three Point” bolting systems:
Author Tommy Truong is the Director of Partnerships at 
Vice President of ERP Sales, Frank Nisemboum,
Patrick Chown
Tom Dillon is a marketing associate at 
Many dispensaries want to avoid a visible security presence — which makes sense. Because of marijuana’s history and, still, the stigma that exists in many communities, seeing a security guard can make customers feel skittish or even avoid coming in entirely. 
Evan Hicks is Marketing Coordinator for 
As a cannabis retail owner, your number one priority is compliance. And when it comes to patient and customer privacy, you need to determine exactly what your state’s requirements are per your particular operation.
But before you buy your cannabis equipment and hire a staff, you will first need for your state to give you a license. In order to get this license, you will need to apply to the state for review and approval. Your application can range from 300 to 2,000 pages and will cover a wide range of operational programs, including a well-defined security plan.