It’s no secret that Massachusetts cannabis companies must adhere to strict security compliance standards. Failure to comply can result in fines in the five—or even six-figure range. However, businesses aren’t notified of fines immediately. Instead, any non-compliance fines are due when you renew your business license every two to three years.

A compliance fine can be a debilitating expense for cannabis businesses, so establishing and maintaining compliance is crucial. Below, we’ll go over what to keep in mind when developing a security strategy for your cannabis business. We’ll also address how to avoid falling out of compliance as your business grows.

Audits and documentation are key

Marijuana establishments are required to conduct an annual security audit to ensure their systems are working effectively and in accordance with the Massachusetts cannabis security regulations. The audit must be performed by a vendor approved by the Cannabis Control Commission (CCC)– usually a third-party security professional– and a report must be submitted within 30 days of the audit.

In between annual audits, cannabis companies are required to carry out their own monthly security audits to ensure everything is functioning as it should. Each of these audits must be documented. A CCC inspector may request to see them at any time.

Common compliance issues

The American Alarm team has helped over 100 cannabis companies navigate the licensing process. Through speaking with cannabis business owners and members of the CCC over the years, we’ve noticed a few common reasons that businesses fail to become or remain compliant with cannabis security regulations.

Inadequate audit documentation

Cannabis companies must keep records to prove that they’ve carried out the required audits. This documentation must show precisely what was audited, when the audit took place, and who performed it. A thorough audit should test all the different variables of a security system to ensure it’s working effectively. This includes camera functionality, camera angles, access control functionality, and a minimum of 90 days of security footage must be stored somewhere.

Failure to maintain sufficient video surveillance footage

Companies are required to store at least 90 days of surveillance footage. Unfortunately, many facilities fall short in this area, often due to one of the following scenarios:

• The security designer initially underestimates how much data storage the system will require
• A system is expanded and cameras are added but additional data storage requirements are overlooked, so the system outgrows its data storage capacity
• Camera settings aren’t optimized to facilitate long-term data storage

Occasionally, a server may fail and footage may be lost. In a situation like this, the CCC requests that businesses create a formal report of the incident and submit a formal action plan for resolving the issue and preventing a recurrence.

Failure to adjust camera angles as needed

As business operations expand, cameras must be adjusted to ensure they capture everything that occurs. It’s easy to overlook this simple step as you adjust the layout of your space, but it is an essential step. Keeping your security compliance top of mind and conducting your monthly audits will help you stay on top of any necessary adjustments to camera fields of view.

Taking a proactive approach to cannabis industry compliance

Implementing and maintaining a compliant cannabis security system is a big expense, but the cost of non-compliance is significantly higher.

As your business grows and expands, so will your security needs. It’s crucial to be mindful about budgeting for this essential expense, and planning for consistent system maintenance and upgrades to ensure you remain compliant at all times.

Security technology is constantly evolving, and while it can feel exhausting trying to stay on top of the changing equipment (and the necessary upgrades), planning ahead will help you avoid sudden maintenance costs.

An experienced security consultant who understands the cannabis industry should be able to guide you toward the most strategic choices for your business and your budget.

If you’re looking for guidance around security compliance, the American Alarm team will be happy to chat with you at NECANN!

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