On average, cannabis cultivation centers have lower compliance scores than other license types. This is due to the multitude of fluid processes, from managing inventory & business records required to managing chemicals, applications, safety training and more.  To succeed in cannabis compliance, cannabis operators must automate the inspection process including a review of operational data and failure patterns by license type.

Top 5 Cannabis Cultivation Violations for 2018

Here are the Top 5 Cannabis Cultivation Violations for 2018:

  1. Inventory & Financial – the licensee does not reconcile all on-premises cannabis inventory with the state-mandated inventory tracking system and account for all variances as required
  2. Business Records Required – the facility does not document material changes required for standard operating procedures and regulated processes
  3. Inventory & Financial – the business is not compliant with IRS regulations for 280e, CTRs and or required tax filings
  4. Licensed Premise – the cultivation facility has not properly documented all cannabis waste and cannabis waste removal
  5. Business Records Required – the business does not have a complete inventory of material safety data sheets where chemicals and or pesticides are stored

Best Practices

  1. Implement routine compliance inspections from a trusted 3rd-party. Avoid fines, penalties, and further regulatory inspections. This is especially true of Point-of-Sale systems and state-mandated inventory tracking systems, which are the most problematic systems in terms of compliance.
  2. Implement routine compliance training services from a trusted 3rd-party for your management team and staff. Learn about safeguarding inventory and revenue and avoiding potential threats and vulnerabilities from the risk of breach, theft, cannabis diversion and waste.
  3. Be proactive and start now. Preparation and due diligence are needed to succeed in cannabis. Compliance saves time and money. Protect your business today.

To learn more about Adherence Compliance and speak with a compliance expert, call or text 855.582.9700. 

To subscribe to more posts like this, sign-up here to subscribe to the GAIACA blog, and here to sign-up for Adherence Corp newsletters.

Copyright © 2019 Adherence Compliance Inc.


If you enjoyed this post, be sure to check out our post on the Top 5 Cannabis Retailer Violations for 2018!