Top 5 Medical Marijuana Dispensary Compliance Infractions: Operations & Compliance – Adherence Compliance

Top 5 Medical Marijuana Dispensary Compliance Infractions

Originally Shared By: Steve Owens, Adherence Compliance

After conducting more than 600 cannabis compliance inspections with our automated compliance platform built on Amazon AWS and Apple, Adherence is sitting on a mountain of operational compliance data for marijuana businesses. Adherence knows where marijuana businesses fail. Moreover, Adherence utilizes our compliance data to help marijuana stakeholders to succeed at every level of compliance.

Here are the Top 5 Medical Marijuana Dispensary Infractions:

  1. The license does not immediately input all marijuana and marijuana product(s) into the State-mandated inventory tracking system and account for all variances
  2. The dispensing facility does not have accurate or updated tracking logs for visitors, security and/or waste
  3. The business does not have all required financial business documentation available as required (federal and state)
  4. Marijuana and marijuana product sold to patients does not include all required public health and safety warning statements as required by law
  5. Surveillance cameras do not have clear, unobstructed views of the license premise and blind spots or sight obstructions exist

Inventory is one of the most challenging aspects of running a marijuana business. Marijuana product and/or cash diversion is the primary concern of regulators and a pillar of Cole Memo compliance. Is inventory reconciled daily between physical counts, POS inventory, state-mandated tracking inventory and the accounting system for related tax payments? This is the number one infraction across all marijuana license types.

Logs, logs, logs… it’s one of the easiest violations for regulators to find. Any missing information on facility tracking logs – including waste, security & surveillance or application & production logs, often opens the door to further scrutiny and deeper investigation. If tracking logs are insufficient or incomplete, there is a high probability that required business records for the marijuana license are lacking as well.

Required financial documentation is imperative to survival. Currency Transaction Reports (Form 8300), 280e compliance and physical access to all financial and inventory records must be in place and readily available for IRS and State investigators. This area is the coming storm for most operational marijuana businesses.

Public safety warnings for marijuana and marijuana product are required for public health & safety. Many marketing teams are making logos bigger and required warning statements smaller, or removing entirely. Many state regulators are just starting to catch up on required labeling & packaging. Ensure warning statements are conspicuous and unobstructed. All marijuana and marijuana product should pass the “playground” test. Avoid all cheap pop-top bottles as well.

Fortunately, most of these concerns are easily addressed using the BioTrackTHC seed-to-sale cannabis software. No matter what your license type (cultivation, processing/manufacturing, dispensary and full vertical), we provide one of the most complete and comprehensive seed-to-sale cannabis tracking solutions for every jurisdiction and license type.

Want to learn about other frequent compliance infractions for cannabis businesses? Check out Adherence Compliance’s Top 5 compliance infractions for cultivation and security!

Since 2010, BioTrack has provided the legal cannabis operators with the industries’ leading seed to sale tracking and dispensary point of sale software. Whether you operate a cultivation site, manufacturing and processing facility, medical or recreational dispensary or a business that covers the full vertical, we’ve got you covered when it comes to compliance.

Our extensive seed-to-sale software allows licensed operators to remain compliant while helping to identify key data points to streamline and optimize inventory management at each phase of the operation; cultivation, processing, destruction and waste, transportation, lab testing and dispensing.

Along with BioTrack’s best-in-class commercial software, we also provide government track and trace solutions and currently hold government contracts in nine states. This allows lawmakers and regulatory agencies to ensure a transparent and compliant program from top to bottom.

In 2021 BioTrack became a part of Forian, Inc. Forian is a Delaware corporation created by the combination of Helix Technologies, Inc. (“Helix”) and Medical Outcomes Research Analytics, LLC (“MOR”). As of March 2, 2021, each of Helix and MOR are wholly owned subsidiaries of Forian. Forian represents the unique intersection of a leading cannabis technology platform with intelligent data science yielding the combined power to drive innovation and transparency across the healthcare and cannabis industries. For more information,see our website, which remains in process.

Are you interested in learning more about BioTrack or the cannabis industry in general? Check out our careers page to learn more about what it takes to join our winning team or take a look at our industry-leading blog for great news and information about the cannabis industry.

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