Approval to Operate
Compliance in the Marijuana industry is key, if you don’t want to lose your license, or pay fines, Dispensary, Cultivation and Manufacturing Business Owners should appoint one person at their facility to handle all compliance issues. Typically, your Chief Compliance Officer will be responsible for overseeing and managing regulatory compliance issues within an organization. The CCO typically reports to the Chief Executive Officer or Chief Operations Officer. This individual should be up to date on all Federal and State Legislation and the Rules and Regulations that uphold the Marijuana program.
Types of Inspections:
1. Approval to Operate (ATO)
Approval to Operate typically happens when a State announces their picks for Licenses, they award, Provisional License, then the Provisional Licensee is tasked with becoming operational, meaning prior to being awarded their actual Dispensary, Cultivation and or Processing Certificate, the Provisional Licensee must complete a laundry list of tasks in order to become an official State Medical/ Recreational Marijuana licensee.
Examples of Approval to Operate Tasks are:
- Execute any/ all Operational Requirements as defined in the Rules and Regulations.
- Understand Duty to Report, which typically includes reporting any/ all material changes to the Department immediately.
- Conducting Background Checks on all Principals and Employees.Implementation of the Electronic Tracking System.
- Ensuring Government Agency Compliance with State Departments including but not limited to,Environmental, Tax, Agriculture, Etc.
- Hanging Proper Signage and overall outfitting of the Facility
- Installing Security and Surveillance Equipment properly
- Inspection of all Transport Vehicles
- Training all Staff members
- Drafting of Policy and Procedures
- Warranting proper Sanitation and Safety
- Obtaining proper insurance.& More
2. Annual Inspection
While the Department and or Medical Marijuana Commissioners may stop by your facility at any time, typically the Department will conduct a annual inspection, which will often touch on the following items.
- Validates Dispensary Hours
- Ensures that the Facility Has developed, documented, and implemented policies and procedures regarding: Job descriptions and employment contracts.
- Proper storage of Business records, such as a manual or computerized records of assets and liabilities, monetary transactions, journals, ledgers, and supporting documents, including agreements, checks, invoices, and vouchers.
- Inventory control parameters are being executed properly.
- Qualifying patient records, including purchases, denials of sale, any delivery options, confidentiality, and retention.
- Patient education and support has been developed and revisited in the last 12- months.
- Documents and reports any loss or theft of marijuana from the dispensary to the appropriate law enforcement agency.
- Ensures the facility does not participate in transaction that results in a substantial diversion of the dispensary’s income or property.
- A qualifying patient record is established and maintained for each qualifying patient who obtains medical marijuana from the dispensary;
- The dispensary ensures that medical marijuana provided by the dispensary to a qualifying patient or a designated caregiver is labeled correctly.
- And, more!
Interested in scoring 100% on your Approval to Operate and/ or Annual Inspection? Dispensary Permits can help. Fill out the form below and we will contact you shortly.