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Cannabis: state and local equity programs

With so many ups-and-downs, the cannabis industry in California is looking like it will face several more obstacles before settling down. There are several bills in the California Senate that have significant impact on how the industry will run.

SB-1294 Social Equity Program – Enrolled 10/07/2018

The State will have a year to draft a Social Equity Program that other cities can implement. The “model equity ordinance” would work as a blue-print for cities who would like to implement such a program. The state will also create a fund to provide “technical assistance” defined as “providing training and education sessions regarding state cannabis licensing processes and requirement to equity applicants or equity licensees that are coordinated with the local equity program.”

 

An act to add Chapter 23 (commencing with Section 26240) to Division 10 of the Business and Professions Code, relating to professions and vocations.



LEGISLATIVE COUNSEL’S DIGEST

SB 1294, Bradford. Cannabis: state and local equity programs.
The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.
This bill would enact the California Cannabis Equity Act of 2018. The bill would authorize the Bureau of Cannabis Control, upon request by a local jurisdiction, to provide technical assistance, as defined, to a local equity program that helps local equity applicants or local equity licensees. The bill would, upon appropriation of funds by the Legislature, authorize an eligible local jurisdiction to submit an application to the bureau for a grant to assist local equity applicants and local equity licensees through that local jurisdiction’s equity program. The bill would require the bureau to review an application, and to grant funding to an eligible local jurisdiction, based on specified factors. The bill would require an eligible local jurisdiction that receives grant funds pursuant to these provisions to use the grant funds to assist local equity licensees in that local jurisdiction to gain entry to, and to successfully operate in, the state’s regulated cannabis marketplace. The bill would require an eligible local jurisdiction that receives grant funds pursuant to these provisions to, on or before a specified date, submit an annual report to the bureau that contains specified information on the use of the grant funds and specified demographic data.
This bill would require, on or before July 1, 2019, the bureau to, among other things, publish approved local equity ordinances and model equity ordinances created by advocacy groups and experts, as specified, and to submit a report to the Legislature regarding the progress of local equity programs that receive funding pursuant to these provisions.
The Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature, except as provided.
This bill would declare that its provisions further the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

DIGEST KEY

Vote: 2/3   Appropriation: no   Fiscal Committee: yes   Local Program: no  


BILL TEXT

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1.

This act shall be known and may be cited as the California Cannabis Equity Act of 2018.

SEC. 2.

The Legislature finds and declares the following:

(a) In 2016, California voters approved Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA). In its statement of purpose and intent, AUMA calls for regulating cannabis in a way that “reduce[s] barriers to entry into the legal, regulated market.”
(b) Cannabis prohibition had a devastating impact on communities across California and across the United States. Persons convicted of a cannabis offense and their families suffer the long-term consequences of prohibition. These individuals have a more difficult time entering the newly created adult-use cannabis industry due, in part, to a lack of access to capital, business space, technical support, and regulatory compliance assistance.
(c) During the era of cannabis prohibition in California, the burdens of arrests, convictions, and long-term collateral consequences arising from a conviction fell disproportionately on Black and Latinx people, even though people of all races used and sold cannabis at nearly identical rates. The California Department of Justice data shows that from 2006 to 2015, inclusive, Black Californians were two times more likely to be arrested for cannabis misdemeanors and five times more likely to be arrested for cannabis felonies than White Californians. During the same period, Latinx Californians were 35 percent more likely to be arrested for cannabis crimes than White Californians. The collateral consequences associated with cannabis law violations, coupled with generational poverty and a lack of access to resources, make it extraordinarily difficult for persons with convictions to enter the newly regulated industry.
(d) Offering technical support, regulatory compliance assistance, and assistance with securing the capital necessary to begin a business will further the stated intent of the AUMA by reducing barriers to licensure and employment in the regulated industry.
(e) Offering these supports will also aid the state in its goal of eliminating or reducing the illicit cannabis market by bringing more people into the legal marketplace.
(f) It is the intent of the Legislature in enacting this act to ensure that persons most harmed by cannabis criminalization and poverty be offered assistance to enter the multibillion dollar cannabis industry as entrepreneurs or as employees with high quality, well-paying jobs.
(g) It is the intent of the Legislature in enacting this act that the cannabis industry be representative of the state’s population, and that barriers to entering the industry are reduced through support to localities that have created local equity programs in their jurisdictions.
(h) The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act, enacted as Proposition 64 of 2016.

SEC. 3.

Chapter 23 (commencing with Section 26240) is added to Division 10 of the Business and Professions Code, to read:

CHAPTER  23. The California Cannabis Equity Act
26240.

For purposes of this chapter, the following definitions apply:

(a) “Eligible local jurisdiction” means a local jurisdiction that has adopted or operates a local equity program.
(b) “Local equity applicant” means an applicant who has submitted, or will submit, an application to a local jurisdiction to engage in commercial cannabis activity within the jurisdictional boundaries of that jurisdiction and who meets the requirements of that jurisdiction’s local equity program.
(c) “Local equity licensee” means a person who has obtained a license from a local jurisdiction to engage in commercial cannabis activity within the jurisdictional boundaries of that jurisdiction and who meets the requirements of that jurisdiction’s local equity program.
(d) “Local equity program” means a program adopted or operated by a local jurisdiction that focuses on inclusion and support of individuals and communities in California’s cannabis industry who are linked to populations or neighborhoods that were negatively or disproportionately impacted by cannabis criminalization. Local equity programs may include, but are not limited to, the following types of services:
(1) Small business support services offering technical assistance to those persons from economically disadvantaged communities that experience high rates of poverty or communities most harmed by cannabis prohibition, determined by historically high rates of arrests or convictions for cannabis law violations.
(2) Tiered fees or fee waivers for cannabis-related permits and licenses.
(3) Assistance in paying state regulatory and licensing fees.
(4) Assistance securing business locations prior to or during the application process.
(5) Assistance securing capital investments.
(6) Assistance with regulatory compliance.
(7) Assistance in recruitment, training, and retention of a qualified and diverse workforce, including transitional workers.
(e) “Transitional worker” means a person who, at the time of starting employment at the business premises, resides in a ZIP Code or census track area with higher than average unemployment, crime, or child death rates, and faces at least one of the following barriers to employment: (1) is homeless; (2) is a custodial single parent; (3) is receiving public assistance; (4) lacks a GED or high school diploma; (5) has a criminal record or other involvement with the criminal justice system; (6) suffers from chronic unemployment; (7) is emancipated from the foster care system; (8) is a veteran; or (9) is over 65 years of age and is financially compromised.
26242.

(a) The bureau may, upon request by a local jurisdiction, provide technical assistance to a local equity program that helps local equity applicants or local equity licensees. When determining whether to provide technical assistance, the bureau shall make individual determinations based on the reasonableness of the request and available resources.

(b) “Technical assistance” includes providing training and educational sessions regarding state cannabis licensing processes and requirements to equity applicants or equity licensees that are coordinated with the local equity program.
26244.

(a) (1) Upon appropriation of funds by the Legislature, an eligible local jurisdiction may, in the form and manner prescribed by the bureau, submit an application to the bureau for a grant to assist local equity applicants and local equity licensees through that local jurisdiction’s equity program.

(2) The bureau shall review an application based on the following factors:
(A) Whether the local jurisdiction is an eligible local jurisdiction.
(B) Whether the local jurisdiction has adopted or operates a local equity program.
(C) Whether the local jurisdiction has identified a local equity applicant or a local equity licensee that the local jurisdiction could assist, as defined in subdivision (b), through use of the grant funding.
(D) Whether the local jurisdiction has demonstrated the ability to provide, or created a plan to provide, the services identified in subdivision (b).
(E) The number of existing and potential local equity applicants and local equity licensees in the local jurisdiction.
(F) Any additional relevant and reasonable criteria the bureau deems necessary.
(3) The bureau shall grant funding to an eligible local jurisdiction based on its review of the factors in paragraph (2). If applications for funding are greater than the amount appropriated for this grant program, the bureau shall prorate the funding as necessary.
(b) An eligible local jurisdiction that receives a grant pursuant to subdivision (a) shall use grant funds to assist local equity applicants and local equity licensees in that local jurisdiction to gain entry to, and to successfully operate in, the state’s regulated cannabis marketplace. For purposes of this subdivision, “assist” includes, but is not limited to, any of the following methods:
(1) To provide a loan or a grant to a local equity applicant or local equity licensee to assist the applicant or licensee with startup and ongoing costs. For purposes of this paragraph, “startup and ongoing costs” include, but are not limited to, rent, leases, local and state application and licensing fees, regulatory adherence, testing of cannabis, equipment, capital improvements, and training and retention of a qualified and diverse workforce.
(2) To support local equity program efforts to provide sources of capital to local equity applicants and local equity licensees.
(3) To provide direct technical assistance to local equity applicants and local equity licensees.
(4) To assist in the administration of local equity programs.
(c) An eligible local jurisdiction that receives a grant pursuant to subdivision (a) shall, on or before January 1 of the year following receipt of the grant and annually thereafter for each year that grant funds are expended, submit an annual report to the bureau that includes all of the following information:
(1) How the local jurisdiction disbursed grant funds.
(2) How the local jurisdiction identified local equity applicants or local equity licensees, including how the local jurisdiction determines who qualifies as a local equity applicant or local equity licensee.
(3) The number of local equity applicants and local equity licensees that were served by the grant funds.
(4) Demographic data on equity applicants, equity licensees, and other applicants and licensees in the jurisdiction, including, but not limited to, race, ethnicity, gender, sexual orientation, income level, prior convictions, and veteran status. This information will be consolidated and reported without the individual’s identifying information.
(d) An eligible local jurisdiction that receives a grant pursuant to this section shall use no more than 10 percent of the state grant for administration, including employing staff or hiring consultants to administer grants and the program.
26246.

To facilitate greater equity in business ownership and employment in the cannabis market, the bureau shall do all of the following:

(a) Serve as a point of contact for local equity programs.
(b) On or before July 1, 2019, publish approved local equity ordinances and model local equity ordinances created by advocacy groups and experts to the bureau’s Internet Web site. Advocacy groups and experts may include, but are not limited to, minority business owners and entrepreneurs, organizations with expertise in addressing barriers to employment and licensure for low-income communities or persons with prior arrests or convictions, and unions representing cannabis workers.
(c) To the extent feasible, coordinate with the relevant local jurisdictions to carry out the responsibilities described in this section.
26248.

(a) On or before July 1, 2020, the bureau shall submit a report to the Legislature regarding the progress of local equity programs that have received funding pursuant to Section 26244.

(b) The report shall include, but is not limited to, the following information:
(1) The cities, counties, and cities and counties that have enacted local equity programs.
(2) The number of local equity applicants and general applicants applying for and receiving licenses in the jurisdictions that received grants.
(3) Information collected pursuant to subdivision (c) of Section 26244.
(c) The bureau shall post the report required by this section on its Internet Web site.
(d) The report required by this section shall be submitted in compliance with Section 9795 of the Government Code, and shall apply notwithstanding Section 10231.5 of the Government Code.
26250.

The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 4.

The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

California Cannabis Business Information Services

Cannabis Business Information Services

Cannabizfile is the Secretary of State’s online portal for all information relevant to cannabis-related business filings with the Secretary of State. The Secretary of State’s office is the first stop for those seeking to establish a cannabis-related business. The Secretary of State supports California businesses by registering business entities, including cannabis-related entities, and processing millions of filings and records requests each year.

The Secretary of State is accepting organization documents for cannabis-related business entities. Starting January 2018, the Secretary of State will accept filings for the newly created entity type, Cannabis Cooperative Association. Please be aware that filing organizational documents with the California Secretary of State alone does not provide a business with the necessary licenses to conduct commercial cannabis-related activities.

The information provided in the links below is meant to act as a guide for cannabis-related business entity filings with the Secretary of State and as a general tool to help you broadly assess other steps that may be required with other state and local agencies. Information relating to requirements with other local or state agencies is not exhaustive. Click here to access the Cannabizfile Online Portal.

  • Register or Update Your Cannabis Business
  • Search for Business Records
  • Register a Trademark or Service Mark
  • 10 Steps to Starting a Cannabis Business
  • Cannabis Business Frequently Asked Questions

Cannabis Business a multi-billion-dollar Cash only industry……….

The cannabis business is an untraditional multi-billion-dollar industry that works in an authoritative hazy area at the government level. The convoluted legitimate condition makes special difficulties for business visionaries in the business. While cannabis is lawful for recreational deal in nine states, cannabis keeping money stays illicit. Another growing untraditional industry, digital currency, may have the arrangement.

The central government still arranges cannabis as a Schedule 1 Drug, close by heroin and cocaine. Any firm discovered dealing with the returns from cannabis deals can be accused of illegal tax avoidance. This disposes of a potential customers capacity to buy legitimate cannabis with a Mastercard.

Without access to customary banks, cannabis activities are compelled to bargain solely in real money. The cash can heap up rapidly. It took Colorado only eight months to reach $1 billion in cannabis deals, in 2017. This makes cannabis tasks an objective for criminals.

A substantial cannabis activity may have upwards of $300,000 of money available. A normal rural credit association will begin the day with only $10,000 of physical money. It is thirty times more lucrative for a cheat to victimize a cannabis shop than a bank, frequently with less hazard.

Police divisions have motivator to keep cannabis money un-bankable. Relinquishment laws enable the police to grab your money on the off chance that they presume it incorporates continues from wrongdoing. No charges are even should have been documented. Lawyer General, Jeff Session, empowers this training and has called it “a powerful apparatus to lessen wrongdoing.”

It is hard for proprietors of a cannabis business to guarantee a sheltered workplace with the waiting risk of theft. A few business visionaries are seeking after cryptographic money innovation to take care of the cannabis ventures one of a kind issues.

Buyers can profit by the reception of cryptographic money in the cannabis business. Numerous shoppers don’t convey a great deal of money on them, rather depending on charge cards to make buys in a hurry. In case you’re low on money and need to purchase cannabis, Visa or Mastercard, won’t be a possibility for you on the grounds that their cards are offered through associations with governmentally managed banks. You could, be that as it may, utilize your card to rapidly buy a digital money to use in return for your cannabis buy.

One promising cannabis industry centered digital currency is PotCoin. This token offers customers zero exchange charges and touts exchange rates of 40 seconds. Amazingly quick contrasted and Bitcoins exchange speed of 10 minutes.

Cryptographic money can profit the proprietors of cannabis activities by bringing down the supply of physical trade flowing out the cannabis business. On the off chance that cannabis organizations convey less money, their danger of burglary diminishes.

Digital forms of money can give straightforwardness, responsibility, and lessen dangers for cannabis organizations. Cannabis organizations can furnish digital forms of money with a devoted and stable client base for their cash. As the two enterprises create, it appears and cryptographic money will have a sprouting future together.

How to file a Complaint against a California Cannabis Business

How to file a Complaint against a California Cannabis Business

California’s three licensing authorities each provide the option to file a complaint against any licensed/unlicensed commercial cannabis activity throughout the state. For tips on illegal cannabis cultivation operations or related complains, call the CalCannabis toll-free hotline: 1-833-WEED-TIP. In addition to reporting such activity to the state, it’s recommended to file a report with your local authorities as well.

Bureau of Cannabis Control – File a Complaint

CalCannabis Cultivation Licensing – File a Complaint: Call 1-833-WEED-TIP

Manufactured Cannabis Safety Branch – File a Complaint

General Disclaimer 


While the Bureau of Cannabis Control (Bureau) attempts to keep its web information accurate and timely, the information and documents available on this website are provided on an “as is” and “as available” basis without warranties or conditions of any kind, either express or implied. The Bureau neither warrants nor makes representations as to the functionality or condition of this website, its suitability for use, or non-infringement of proprietary rights.

The Bureau is neither responsible nor liable for any viruses or other contamination of a user’s system nor for any delays, inaccuracies, errors or omissions arising out of a user’s use of the site or with respect to the material contained on the site, including without limitation, any material posted on the site. The Bureau has full discretion to store or delete any unsubmitted records that are kept in its licensing system database.

The Bureau is not responsible for any special, indirect, incidental or consequential damages that may arise from the use of or the inability to use, this website and/or the materials contained on this website whether the materials are provided by the Bureau or a third party. Online activities carry the inherent risk of exposure to viruses or other malware.

In addition to the preceding terms and conditions, the Bureau, its officers, employees, agents or representatives shall not be liable for any damages of any kind arising from a user’s use of the website or its online payment service.

Nothing contained in this website constitutes or is intended to constitute legal advice by the Bureau or any of its agencies, officers, employees, agents, or representatives.

Personal Information and Choice
The personal information collection and management policies, practices and procedures implemented by the Bureau are governed by law. “Personal information” is information about a natural person that identifies or describes an individual, including, but not limited to, his or her name, social security number, physical description, home address, home telephone number, education, financial matters, and medical or employment history, readily identifiable to that specific individual. A domain name or Internet Protocol address is not considered personal information, however, it is considered “electronically collected personal information.”

According to Government Code section 11015.5(d)(1), “electronically collected personal information” means any information that is maintained by an agency that identifies or describes an individual user, including, but not limited to, his or her name, social security number, physical description, home address, home telephone number, education, financial matters, medical or employment history, password, electronic mail address, and information that reveals any network location or identity, but excludes any information manually submitted to a state agency by a user, whether electronically or in written form, and information on or relating to individuals who are users serving in a business capacity, including, but not limited to, business owners, officers, or principals of that business. The Bureau will not disclose, use for any purpose other than as specified at the time it was collected, or make available any personal information collected, except with the written consent of the subject of the information or as otherwise permitted by law or regulation.

Public Disclosure
Federal and State laws exist to ensure that government is open and that the public has a right to access appropriate records and information processed by State government. At the same time, there are exceptions to the public’s right to access public records. These exceptions serve various needs including maintaining privacy of individuals. Both State and federal laws provide exceptions. All information collected at this site becomes public record that may be subject to inspection and copying by the public, unless an exemption in law exists. In the event of a conflict between these disclosures and the California Public Records Act, the Information Practices Act of 1977, Government Code section 11015.5, the Federal Privacy Act or other law governing the disclosure of records, the applicable law will control.

Additionally, entities of the State of California under the authority of the Governor, including the Bureau, are required to adhere to the Privacy Policy which is also accessible on this website.

What Happens to Information Submitted to the Bureau?
If you choose to submit information to the Bureau, the information will be transmitted through secure lines to our Bureau database. Any private information will only be used for the purposes for which it was provided, except as prescribed by law.

Communications via Website
Users may choose to provide the Bureau with personal information, via e-mail or messaging systems with a comment or question. The Bureau uses the information provided by users to improve its service and to respond to user requests. Except as required by law, the Bureau does not share e-mail communications with any other organizations.

Communications made through e-mail and messaging systems shall in no way be deemed to constitute legal notice to the Bureau or any of its entities, officers, employees, agents, or representatives, with respect to any existing or potential claim or cause of action against the Bureau or any of its officers, employees, agents, or representatives, where notice to the Bureau is required by any federal, Bureau or local laws, rules, or regulations.

Security
The Bureau, as developer and manager of this website, has taken several steps to safeguard the integrity of its telecommunications and computing infrastructure, including but not limited to authentication, monitoring, auditing, and encryption. Security measures have been integrated into the design, implementation, and day-to-day practices of the entire Bureau operating environment as part of its continuing commitment to risk management. This information should not be construed in any way as giving business, legal, or other advice, or warranting as fail proof, the security information provided via the Bureau’s supported website.

External Links
This website may contain links to other sites on the Internet, which are provided for the convenience of the user. The Bureau accepts no responsibility for the content or accessibility of the external website or external documents linked to this website. The Bureau is responsible for and makes no representation about the content or material available on such other sites. Any opinions, advice, statements, services, offers, or other information or content expressed or made available at third party links are those of the respective author(s) or distributor(s) and are not necessarily that of the Bureau. Reference herein to any specific products, process, or service by trade name, trademark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or preference by the Bureau, and such reference shall not be used for advertising or product endorsement purposes. This website and the information it contains are provided as a public service by the Bureau. This system is monitored to ensure proper operation, to verify the functioning of applicable security features, and for comparable purposes. Anyone using this system expressly consents to such monitoring. Unauthorized attempts to modify any information stored on this system, to defeat or circumvent security features, or to utilize this system for other than its intended purposes are prohibited and may result in criminal prosecution.

Access to Personal Information
You may review the records maintained by the Bureau that contain your personal information, as permitted by the Information Practices Act.
To do so, please contact CJ Croyts-Schooley at 2920 Kilgore Road, Rancho Cordova, Sacramento, CA 95670, by phone at (833) 768-5880, or by e-mail at bcc@dca.ca.gov.

Public Information
The Bureau makes every effort to protect the personal information provided by license applicants. Application information may be disclosed, however, as permitted in response to a California Public Records Act request (Government Code section 6250 et seq.), as permitted by the Information Practices Act (Civil Code section 1798 et seq.), to another government agency as required by state or federal law, in response to a court or administrative order, a subpoena, or a search warrant.

Pursuant to the California Public Records Act (Title 1, Division 7, Chapter 3.5, Government Code sections 6250-6277), on request, the Bureau discloses licensee information including, but not limited to:
• Name
• Mailing address
• License number
• License status
• Original license issue date
• Last license renewal date
• License expiration date
• Disciplinary action
• Copy of license renewal applications
• Copy of license application (excl. personal information such as birth date and social security number)

Fresh Opportunities: how ex-convicts are illuminating the cannabis business

Fresh opportunities: how ex-convicts are illuminating the cannabis business

With recreational cannabis deals are currently legitimate in numerous states, numerous have composed into law, social value programs that means to help recuperate the networks most influenced by the “war on drugs”.

Individuals were captured for peaceful pot offense and did not pitch to minors, are not just permitted to work in the pot business, yet fit the bill for the social value program, which gives preparing, help with raising capital and, conceivably, assurance from rivalry.

Four California urban areas – Los Angeles, San Francisco, Oakland and Sacramento – have comparable value programs set up. Massachusetts’ will be the primary statewide program in the country and comes as criminals are as yet banned from working in the maryjane business in a few expresses that have likewise authorized the medication.

The program additionally would like to advance racial assorted variety in the business. A considerable lot of the “regions of unbalanced effect” distinguished by the state have high minority populaces. Also, a report discharged by the Massachusetts condemning commission a year ago demonstrated that in 2013 75% of detainees in jail for compulsory medication sentences were Latino or dark regardless of making up only 22% of the state’s aggregate populace.

In the interim, a review refered to by the state’s cannabis controllers demonstrates that the lion’s share of weed organizations proprietors in the US – 81% – are white.

Those behind the value program trust it can motivate different states to take after.

These projects mean to help candidates following a scope of vocation tracks: from business people who need to possess a business and those inspired by administrative parts to individuals reappearing society after imprisonment or joining the workforce out of the blue.

While these projects looks great on paper, there are as yet potential barriers ahead.

All together for weed organizations to open, they should first anchor concurrences with neighborhood networks.

How Much Security Does Your Cannabis Dispensary Need?

How Much Security Does Your Cannabis Dispensary Need?

This week, the tides shifted dramatically in the way that cannabis is bought and sold, especially in California where recreational cannabis will make the state a leader in cannabis sales worldwide. Before recreational legalization, medical dispensaries required cannabis consumers to show a cannabis card that required an evaluative process on patient needs. This added a bit of a “buffer” on who was coming through the doors of dispensaries, but now that recreational cannabis is legal, anyone (of age) can now buy cannabis. 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. As a result of growth in the cannabis businesses, and in the cannabis dispensaries, how much security does a dispensary need, and what are the ways that a dispensary can increase security as they increase business?

 

Thoughtfully Covered Points of Entry

It’s important that you are able to keep all points of entry and exit within your establishment secure with both threat detection (i.e. security systems and weapons detection) as well as guards. While security is a tough game, you don’t want to set a tough tone between your security guard and cannabis consumer. Work with your security staff to ensure that they embrace and understand the customer experience you are developing in-store. Since they are the first point of contact, 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.

Transportation Is No Amateur Game

If your cannabis dispensary is using a regular driver and a regular vehicle to transport your cannabis and your dispensary’s cash, you could be putting so much at risk. We can never underestimate that certain people or groups want to take advantage of firms who experience economic growth, especially when that growth hasn’t been supported by infrastructure. Cannabis and cash transportation should be a significant part of your security budget, to ensure that nothing, especially the safety of people, is jeopardized through the operational procedures of running your cannabis dispensary. There is a growing availability of cannabis transportation companies who are matching dispensary security needs with security technology and advanced transport like armored vehicles.

Conducting a Cyber-Security Check

As last year demonstrated with the MJ Freeway database being hacked, cannabis dispensaries need to ensure that their servers are secure and that protection of client personal and financial information is iron-clad. Dispensaries can’t afford to let their retail operations be vulnerable to hackers or Ransomware that can cost companies into the thousands. Ensure that as you ramp up the digital activities that are going on in your business, that the information infrastructure is being built to support it and maintain the security of your client information, point-of-sale system, inventory manager and all digital activities.

Tightening Up Employee Theft Prevention

Up to 90% of losses reported by dispensaries are due to employee theft. No business can afford such a loss. More product equals more chances of discrepancies in checks and balances. When you make significant changes to your retail structure, you also have to get your employees and budtenders on board on how these changes are accounted for. Some ways that you can tighten up the way your budtenders are handling cash and cannabis to prevent employee theft include:

  • Undergoing due diligence in employee hiring, including conducting background checks
  • Set clear employee expectations in terms of the way that cash and product is tracked
  • Discourage “heavy-handedness”
  • Do not allow employees to sell to themselves
  • Limit the amount of discounting that employees can do for friends and family
  • Use your POS and inventory management software to do daily checks on inventory and sales

Bring Budtender’s Security Literacy Up to Snuff

As Marijuana Retail Report has discussed before, investing in your employee’s learning and development will translate into them taking care of your business. Employees who are treated well treat their employers well. In a fast-growing business, staying on top of training and development is key. This includes ensuring that all your staff is well versed in safety procedures, how to detect threats, how to respond to threats, and how to ensure the safety of all the people involved in cannabis. Talk to some of the cannabis security companies in your area about how they can be involved in increasing your staff literacy on security and come up with a customized training program that enhances your security strategy.

You Can Never Be Too Careful

Cannabis is growing so fast, and it’s important to ensure that we don’t get complacent in areas that should actually have more attention, like safety and security. The beginning of the new year is an excellent time to reflect on the security measures you have in place while recognizing that you can always do better to ensure the safety of your cash, product, and people.

 

Thanks to marijuana retail report for content share.

Join Gay Desert Guide for our TryOUT Tuesday at Atomic Budz!

Join Gay Desert Guide for our TryOUT Tuesday at Atomic Budz!

Food will be served only during the event hrs of 4-6:30 and the menu includes gourmet sandwiches (Tri-tip sandwich with horseradish cream sauce Tapanade, Grilled and sliced turkey breast sandwich with Cranberry Aioli and a French cranberry sweet and sour sauce.) Side dish will be Pasta Salad bowtie pasta, Roasted bell peppers, sundries tomatoes, parmesan, and Italian herbs and spices.

A gift bag worth $420 will be given away.

Check Gay Desert Guide’s Event Calendar for more details.

NEWSLos Angeles Finally Cracking Down On Unlicensed Marijuana Businesses

Los Angeles County officials weigh mass medical marijuana raids

Los Angeles police are investigating several unlicensed marijuana shops they believe are engaging in criminal activity.

During a news conference, LAPD Deputy Chief John Sherman said he believes there are hundreds of those businesses operating around L.A.

“We have several hundred, probably somewhere in the neighborhood of 200 to 300, of what we believe are these unlawful and illegal establishments operating throughout the city,” he said.

Authorities said a marijuana business on Laurel Canyon and Van Nuys boulevards in Pacoima has been a trouble spot for years. Police arrested three people during a raid at the shop last week, including a convicted felon who was in possession of a weapon.

“A person was operating as a security guard. That person was unlicensed. That person was armed. We recovered three firearms out of that location,” Sherman said.

Police have identified 18 businesses in the city that they suspect are associated with criminal activity.

Officials said unlawful pot operations contribute to crime in the surrounding communities.

Special Thanks LOS ANGELES (KABC)  and Amy Powell for Content Share [Read more…]

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