Our third Q&A session tapped into the knowledge of Adam Klock and Terry Roston from Motagistics, about remaining compliant with local laws with the technology that you use.
Many states require the use of some sort of “seed-to-sale” technology that tracks the plant from its beginnings as a seed to plant to being processed into edibles, flower, or any final product.
But, as Adam and Terry said in their answer to Sebastian (from SD6), the “one size fits all” solutions, where “the software is developed to work one way and one way only,” tend to cause problems because software vendors “are not in your facility day in and day out to know exactly what your needs are.”
The most important thing you can do to remain compliant, increase your bottom line, and automate your business processes is to choose a seed-to-sale software that works for you.
Adam also pointed out that paper record keeping will soon be not only antiquated, but illegal. California will soon mandate the use of seed-to-sale software–“so all you California growers out there keeping only paper ledgers, it’s time to go high tech or go home,” he said.
Terry said that paper record keeping “does not meet the needs of the state compliance requirements,” and that it is not as visible or easily accessible.
Matt from SD6 asked if even ancillary companies like advertisers or, for example, sign makers have to remain compliant with their tech, or only those directly in contact with the plant. Adam answered that there can be consequences for any person in the industry who is not licensed.
It’s important to make your software choice a priority–so it’s one less thing that you have to worry about.
Here are some other highlights from the discussion:
Vetting the right software company should be a multi-step approach to ensure that they are validated with the state tracking system. This can be done by contacting your state marijuana board. Also, do a demo of the software to ensure that it meets your particular business needs. Personally, I like to find a software system that is very user friendly. – Terry
We’ve heard the same story over and over. Vendors aren’t aware of what the software regulations are and are sold on the system pitched to them by the first software salesperson that comes along. While software is the central nervous system of your cannabis business why would you NOT shop around? How often do you buy the first car you test drive? – Adam
[Even if you’re an ancillary company,] anyone doing business in the regulated cannabis industry must register in that state they are doing business. Also you must signup to be a contractor at the facility you are working in and be permitted to gain access to the facility. – Terry
Quite simply ALL cannabis vendors need to take compliance with the regulations that govern their license seriously. There are stipulations on the vendor license that must be maintained or the licensee risks losing such license. – Adam
In general, automation is the key to compliance. A paper based system is antiquated, inefficient and most of all not allowed by most states. For instance, paper based record keeping in California will not comply with state requirements as a validated software solution must be in place for all vendors by the end of the year. So all you California growers out there keeping only paper ledgers, it’s time to go high tech or go home. – Adam