New York legalized marijuana in 2021, but the state is still working out how to regulate, license, and tax it in a way that is distinct from anywhere else. The new system is still in its nascent stage.
The licensing of retail dispensaries has been rocky and slow and the latest blow to New York’s ambitious cannabis program is the dispensary order that halts opening. The five boroughs have been flooded with illegal marijuana stores as a result of this gap. The rest of the proposed legal cannabis system, including delivery, home cultivation, and on-site consumption, has also just begun.
Conditional Adult-Use Retail Dispensary (CAURD) Licenses have been issued by the New York State Cannabis Control Board since August 2022. In this blog we will understand what is the CAURD license and what to expect with the CAURD inspection process:
Preparing For The CAURD Inspection
The Compliance Unit will conduct an onsite pre-operational inspection before CAURD licenses are issued. Sales cannot start unless the licensee has met all requirements and completed an inspection to the satisfaction of the Office of Cannabis Management. Only then will the licensee be given prior written approval to start sales at the facility. All documents must be submitted to the cannabis authorities a week before an onsite inspection.
Following is a list of documents that need to be submitted before the inspection:
Blueprint of the Floor Plan
A blueprint of the floor plan of the premises with the following details:
- Details of all entry/exit points
- A comprehensive list of all facility areas that must be secured from unauthorized access. And details on how access to these areas will be restricted to unauthorized people
- Product storage spaces have been planned along with information on how products will always be stored and moved securely within the premises.
Details of the Security System
- Verifying that all of the components of the security system are installed and functional. A document indicating the placement of each security camera in the building, along with the name of the security provider must be attached.
- A letter attesting that your central monitoring station continuously tracks your security system.
- Screenshots from every camera on the property that has a date and time stamp included in every image.
Initial Inventory Sourcing Information
A detailed list of the suppliers who will be supplying the initial inventory. The license number of the licensee must be included in the data provided.
Point of Sale/Inventory Tracking Details
- Give details about the Seed to Sale and Point of Sale systems your business will be using. Ensure that the inventory management and POS system is installed and functional before the onsite inspection.
- Include a sample copy of the customer receipt along with a sample inventory report indicating the traceability of the product.
Comprehensive Signage Plan
Images of all signages must be attached. The pictures must be clear, in color, and from both inside and outside the building.
Hemp/CBD License
If you are a hemp or CBD licensee, you must provide the confirmation of your license along with the hemp/CBD license number.
Crowd Control Plan
This document will include the crowd control measure your business is going to undertake.
Are you going to hire security? If yes, state the number. Where will the guards be stationed to ensure they are able to control the crowd along with restricting unauthorized entry to secured areas within the facility? And, if you plan to place a barrier, where will you place it?
Delivery Service Update
In this document, you will be indicating your intent to deliver cannabis to your customer’s location. If you plan on offering delivery services, you must submit a delivery plan based on the Conditional Adult-Use Retail Dispensary Delivery Guidance.
Cannabis delivery service is dependent on the vehicle that you use and must be owned by the business. Provide a list with the following details if more than one vehicle is used:
- There must be no markings, advertisements, or other signs on the outside of the vehicle that would suggest it is transporting cannabis goods Also, include the vehicle’s year, make, model, license plate number, and vehicle identification number when submitting details for inspection.
- A dedicated Global Positioning System (GPS) is required in the vehicle. The GPS device can be temporarily or permanently attached to the vehicle.
- You have to indicate that cannabis products are kept locked in a completely enclosed box, container, or cage that is attached to the interior of the car.
Every Cannabis Business Needs SOPs
Professional quality SOPs help in the smooth operation of your dispensary and may act as a manual for your staff, fostering brand loyalty.
SOPs will also help new team members with training and onboarding by enabling them to review the guidelines before carrying out new responsibilities to ensure accurate job performance.
Authorities expect cannabis dispensaries to have standard operating procedures in place to ensure that they comply with the established requirements. This is important as adhering to legislative compliance is crucial in the cannabis market.
During the Inspection
It’s extremely important to prepare for the CAURD inspection process.
Your business ought to have gotten the local government’s approval and finished any necessary local inspections before.
You must give the inspector evidence that any additional requirements were met as specified in the plan review letter.
It’s important to have someone available to accurately answer any questions the inspector may have since it is a facility walk-through.
The inspection report is added to the project file after the inspection.
What Next…
Once you send the documents to the Compliance Unit, they will respond to the email to confirm the date and time for the inspection.
The Inspection result will either be a Pass or Fail. If passed, the CAURD Licensee will be able to start selling cannabis.
