METRC stands for Marijuana Enforcement Tracking Reporting Compliance – and it’s the inventory tracking software you can’t afford to misunderstand. METRC is your ultimate tool to checking many of the boxes with regard to cannabis business compliance and regulatory laws.
METRC has become the leading choice of 12 state governments and the District of Columbia for the electronic ritual of keeping tabs on your product.
In order to build, maintain, and scale a successful cannabis business, one of your utmost priorities as a business owner must be cannabis business compliance. Without understanding and properly utilizing METRC, your business could fold faster than a house of cards in the Parkinson’s ward.
The go-to seed-to-sale cannabis tracking software was born out of panic and necessity to get a grip on the booming cannabis industry and, with it, the expanding potential for misuse. In 2013, Colorado was faced with a giant regulatory boondoggle as it stared down the dawn of adult cannabis sales. The state contracted with Franwell, a provider of supply chain track-and-trace technology, for an online oversight tool for its burgeoning industry.
As a result of the Colorado + Franwell partnership, a cloud-hosted inventory tracking software – now known as METRC; originally called Marijuana Inventory Tracking Solutions (MITS) – was created.
In January 2014, concurrent with the roll-out of recreational sales, Colorado became the first state to mandate the use of METRC. Today, METRC is still quietly going about its business tracking millions of plants from cultivation to consumer.
The developers refer to the tool as “Government’s trusted cannabis legalization partner.” A lack of METRC proficiency and cannabis business compliance can rattle your nerves, and even shatter your business with fines and shutdowns.
It’s 11:00 o’clock on a Saturday night. Do you know where your plants are? METRC does. Now that cannabis has gone mainstream, your ladies have no privacy. They’ve gone from grow light to spotlight as cannabis business compliance has become as critical as hybridizing the latest strain.
In METRC’s model, each plant must wear a Radio Frequency Identification (RFID) tag. These tags each have a unique identifier and, unlike barcodes, may be scanned in multiples at a distance of 10 to 15 feet.
The plants’ RFID tags are the keys to the engine that, when fueled with the correct data, serves businesses and regulators in the following ways:
Whether you’re a grower, manufacturer, or retailer, you are required to keep your data current in METRC – no exceptions.
With each plant’s chain of custody accounted for from seed to sale, states ensure that every sold product passes through the tax turnstile and product diversion to the black market is mitigated.
States must remain alert to avoid federal repercussions that could arise if your Golden Goat jumps the fence and winds up in a non-legal state. For businesses, METRC can also serve as a loss mitigation tool. It even has built-in equivalency rules, like 1 ounce of retail marijuana flower is equal to 8 grams of retail marijuana concentrate.
It requires a lot of data to feed METRC’s appetite. Depending on the size of your business, you may require staff exclusively dedicated to the task.
According to Kyle Sherman, the CEO of Flowhub, “One of the most unnerving aspects of operating in a METRC state is the potential to be audited for missing data.” Sherman references a 2017 case in which a Colorado retailer was suspended 90 days and fined $75,000 for failing to maintain accurate tracking records.
To avoid hefty fines or shutdowns, we recommend that you maintain the four pillars of a happy METRC system:
Starting can be hard, but working with METRC will eventually become routine as part of your daily operation. The key is to start exercising that compliance muscle the right way from the very start.
A new business may find it easier to implement METRC when it launches than a business that’s been operating without it for a year or more. An established business that hasn’t used METRC before may be in need of some expert assistance to get the operation up to legal speed.
Surprisingly, the states are generally unsuited to answering questions related to navigating the track and trace software. They are in the business of legislating and regulating, not training.
If you’ve breezed through implementing METRC for your business, congratulations! For most, though, it will present at least a small are-my-tires-still-attached bump in the road. Whether you need a little guidance or all the help you can get, we’re available to assist.
Higher Yields Cannabis Consulting has worked with METRC specific systems in 12 states + D.C. We consult in all areas of cannabis business compliance to ensure your business is secure. Our team can help you devise a plan for adherence to the regulatory requirements that will keep your business running smoothly and safe from penalties or shutdowns.
Reach out to us to schedule a free consultation and to get rid of that pesky METRC headache.
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