The American Alarm team is gearing up to attend the New England Cannabis Convention (NECANN), held from March 10 – 12 at the Hynes Convention Center in Boston. Ahead of the event, we wanted to touch on a topic that comes up over and over again within the cannabis industry: regulatory compliance.

Through conversations with state agents, we’ve learned that many cannabis facilities are failing to complete required security inspections. The Cannabis Control Commission (CCC) claims that they’ve issued far fewer licenses so far this year than expected due to compliance issues.

Failing to comply with the CCC’s security requirements may result in costly delays in the licensing process, hefty fines, loss of licensure, and other challenges. It’s important to be aware of the requirements and to choose a knowledgeable security partner to help you meet them.

American Alarm has helped over 100 cannabis businesses navigate the licensing process and we’re aware of how tedious and nuanced it can be. We developed this article to outline the requirements and help you see how choosing the right security partner will save you time and money when it comes to pursuing licensing.

If you have questions about how to make your security system compliant, look for us on the floor at NECANN– we’d love to meet you!

Cannabis Industry Regulatory Compliance Requirements

Cannabis industry businesses must meet very specific security requirements in order to comply with state laws. There are stipulations relating to the types of security devices that must be present on the property, how the equipment must be oriented, how products are stored, and more. Specific requirements vary depending on the type of business and the facility, so custom security solutions are essential.

Monthly security audits are mandatory

Cannabis businesses must conduct monthly audits of their security systems to ensure they are still compliant with state regulations. In some states, business owners are permitted to conduct these inspections themselves. In other states, the inspections must be done by a third party.

If these monthly audits aren’t thoroughly documented, they may not be acknowledged by the CCC. Improper documentation or failure to document inspections at all may result in fines when it comes time to renew the license.

You must be prepared for spontaneous inspections

Unannounced security audits are something that every Cannabis business needs to be prepared for. State agents may arrive at any time and request a walkthrough of the facility. In this case, employees are legally obligated to comply with their requests.

Businesses found to be in violation of state regulations may be shut down until the security system can be brought into compliance.

Working with a savvy security partner ensures you can respond to any issues quickly. A knowledgeable security partner can also advocate for you in instances where the CCC’s requirements may be unfair or unrealistic.

Annual security inspections are required

Annual security inspections are another requirement of Cannabis industry businesses. Unlike monthly audits, these inspections must be conducted by an organization that is licensed by the state of Massachusetts.

American Alarm is licensed to perform these inspections in Massachusetts, Connecticut, and Rhode Island.

Consequences of failing your security audits

Failing to maintain a compliant security system can be extremely costly. Failing an audit can result in fines of hundreds of thousands of dollars. When you factor in the costs of upgrading a sub-par security system and the lost revenue that comes with licensing delays, the expenses really start to add up.

Beyond fines, businesses experiencing compliance issues may have trouble finding an insurance company that is willing to underwrite them. Insurance companies are increasingly cautious regarding security compliance due to the large number of losses that have occurred due to failing systems.

Choosing a respected, industry-savvy security partner is the best way to ensure your system is up to par.

When it comes to security compliance, get it right the first time

Many new businesses are working with limited capital, and it may be tempting to cut corners in the beginning in favor of getting your doors open. We urge you not to skimp on the security plan for your cannabis business.

Working with a trusted security partner who understands the industry may cost a little more upfront, but it will inevitably save you money (and time) in the long run.

The American Alarm team is very familiar with the requirements and demands of the compliance process. We know the CCC and its inspectors, and they hold our team in high regard because we’ve worked with them so extensively.

On top of that, our team members are aware of the challenges early-stage cannabis businesses face, and we always do our best to value-engineer our security solutions. Whether you’re starting fresh or need assistance bringing an existing system into compliance, we can help you find the most cost-effective solution.

If you’re looking for guidance around security compliance, we’ll be happy to chat with you at NECANN!

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