Insight

National Association of Cannabis Businesses Security Standards: A Lawyer’s Perspective on Why They’re More Important Than Ever

National Association of Cannabis Businesses Security Standards: A Lawyer’s Perspective on Why They’re More Important Than Ever

Julie Herzog

Julie Herzog

September 30, 2020 12:51 PM

During the COVID-19 pandemic, most state governments declared medical cannabis an essential service, although only a handful did so for recreational cannabis. Now, as governments begin to allow more nonessential businesses to reopen, every business owner —cannabis or otherwise—faces the uphill battle of keeping their employees and customers safe.

As planning and preparations ensue, cannabis companies are well-advised to carefully review the Security Standards released in late 2019 by the National Association of Cannabis Businesses.

In my roles as managing partner at Fortis Law Partners and co-founder of Full Velocity Consulting, I have counseled many clients on regulatory compliance in both cannabis and other highly-regulated industries. When asked to help contribute to the shaping and development of the NACB Security Standards, I immediately recognized the importance of having this specific type of industry resource in place. The clear direction these standards provide to business owners and operators are especially beneficial during this unprecedented time.

NACB Security Standards: What and Why?

To date, the NACB has developed a series of six voluntary national standards intended to help cannabis companies demonstrate impeccable business and compliance practices. The Security standards are the fourth in this series and although they were developed pre-COVID, the guidance they offer is particularly timely given the current increased focus on compliance with state and local regulations and need to prepare for what may come next.

The NACB Security Standards cover four main areas:

Employee and visitor access control: This guideline is intended to ensure that only a limited number of employees or visitors have access to certain areas of the business that are not open to the public. It also outlines standard operating procedures and credentialing requirements for all visitors to these limited access areas.

Customer access control: One of the most relevant portions of this standard states that at no point should the ratio of customers to employees in a retail area exceed 10-to-1, and ideally not exceed 5-to-1. Cannabis establishments that were already following this guideline will be accustomed to implementing new social distancing mandates.

The guidance also states that customers who are visibly belligerent or otherwise presenting a safety threat should be denied entry. It mandates that employees should be trained and prepared to deal with denying customers entry in a lawful manner and with concern for the safety of all customers and other individuals in the area.

If a business has already been following this counsel and trained its employees appropriately, they will be more prepared to deal with potentially noncompliant customers than many other retail employees now encountering these types of issues for the first time.

Cash management: Cannabis establishments are advised to conduct initial and annual assessments to identify cash management risks and determine which controls will be implemented to safeguard cash during each transaction, tracking it through the entire operation, from receipt to deposit or disbursal.

Cannabis industries are generally more likely to be subject to scrutiny and audits, so having proper cash management protocols and financial record-keeping in place will serve businesses well, particularly during times of heightened government oversight.

Contaminant testing and claims: Retail cannabis establishments and their employees are responsible for “looping” prevention, which means they should not knowingly transfer cannabis or cannabis products to a customer if it would cause the customer to exceed state-imposed quantity limits.

This standard states that retail cannabis establishments are to implement a looping prevention program, which should include employee training, written procedures to monitor and track customers who transact more than once daily, progressive punishment for employees who fail to adhere to procedures and enforced suspensions or bans for customers who continue looping despite warnings.

The NACB’s National Standards are the gold standard for doing business in the cannabis industry. They offer important guidance not only on Security, but also on Packaging and Labeling, Advertising, Lab Testing & Product Integrity, Infused products and Hemp products. I would advise all cannabis businesses who want to operate at the highest level of ethics and responsibility to review each of these standards carefully and put operating protocols in place to ensure compliance. Restricting access and maintaining appropriate procedures and documentation are even more important now in light of the coronavirus pandemic.

As the legal cannabis industry continues to establish itself in the minds of government and the public as a legitimate business, hurdles will persist due to pre-existing stereotypes, the newness of legalization in many states and numerous government regulations. Self-regulation through adherence to the NACB National Standards is one of the best ways to protect your business and build trust.

Related Articles

Colorado Attorney General Calls For Cannabis Reclassification


by Gregory Sirico

In this article, Best Lawyers highlights a recent call to action by the Colorado state attorney general, requesting a full drug reclassification of cannabis.

Cannabis buds sitting on a checkerboard tabletop

Evolving Marijuana Laws and the Workplace


by Tess P. Anglin

How can employers enforce statutes that differ from state to state?

Red image of marijuana leaf

The Green Rush: Cannabis Is a Growing Industry


by Justin Smulison

Connecticut announced it will legalize high-THC cannabis for adult use on July 1, making it the 19th state to do so in the U.S. As of June 2021, 38 states and Puerto Rico have legalized cannabis for medical use.

Cannabis Legalized in Connecticut

Alice Tseng - Toronto 2021 Lawyer of the Year


by Best Lawyers

Cannabis Law Toronto, ON

Alice Tseng

What Legalizing Recreational Marijuana Means for Indiana


by Rock Lee

What will marijuana legalization mean for business, past conviction, and beyond?

Legalizing Marijuana in Indiana

Trending Articles

Discover The Best Lawyers in Spain 2025 Edition


by Jennifer Verta

Highlighting Spain’s leading legal professionals and rising talents.

Flags of Spain, representing Best Lawyers country

Unveiling the 2025 Best Lawyers Editions in Brazil, Mexico, Portugal and South Africa


by Jennifer Verta

Best Lawyers celebrates the finest in law, reaffirming its commitment to the global legal community.

Flags of Brazil, Mexico, Portugal and South Africa, representing Best Lawyers countries

Presenting the 2025 Best Lawyers Editions in Chile, Colombia, Peru and Puerto Rico


by Jennifer Verta

Celebrating top legal professionals in South America and the Caribbean.

Flags of Puerto Rico, Chile, Colombia, and Peru, representing countries featured in the Best Lawyers

How to Increase Your Online Visibility With a Legal Directory Profile


by Jennifer Verta

Maximize your firm’s reach with a legal directory profile.

Image of a legal directory profile

Paramount Hit With NY Class Action Lawsuit Over Mass Layoffs


by Gregory Sirico

Paramount Global faces a class action lawsuit for allegedly violating New York's WARN Act after laying off 300+ employees without proper notice in September.

Animated man in suit being erased with Paramount logo in background

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

The Future of Family Law: 3 Top Trends Driving the Field


by Gregory Sirico

How technology, mental health awareness and alternative dispute resolution are transforming family law to better support evolving family dynamics.

Animated child looking at staircase to beach scene

The Human Cost


by Justin Smulison

2 new EU laws aim to reshape global business by enforcing ethical supply chains, focusing on human rights and sustainability

Worker wearing hat stands in field carrying equipment

The 2025 Legal Outlook Survey Results Are In


by Jennifer Verta

Discover what Best Lawyers honorees see ahead for the legal industry.

Person standing at a crossroads with multiple intersecting paths and a signpost.

Effective Communication: A Conversation with Jefferson Fisher


by Jamilla Tabbara

The power of effective communication beyond the law.

 Image of Jefferson Fisher and Phillip Greer engaged in a conversation about effective communication

Safe Drinking Water Is the Law, First Nations Tell Canada in $1.1B Class Action


by Gregory Sirico

Canada's argument that it has "no legal obligation" to provide First Nations with clean drinking water has sparked a major human rights debate.

Individual drinking water in front of window

New Mass. Child Custody Bills Could Transform US Family Law


by Gregory Sirico

How new shared-parenting child custody bills may reshape family law in the state and set a national precedent.

Two children in a field holding hands with parents

Best Lawyers Expands With New Artificial Intelligence Practice Area


by Best Lawyers

Best Lawyers introduces Artificial Intelligence Law to recognize attorneys leading the way in AI-related legal issues and innovation.

AI network expanding in front of bookshelf

Jefferson Fisher: The Secrets to Influential Legal Marketing


by Jennifer Verta

How lawyers can apply Jefferson Fisher’s communication and marketing strategies to build trust, attract clients and grow their practice.

Portrait of Jefferson Fisher a legal marketing expert

Finding the Right Divorce Attorney


by Best Lawyers

Divorce proceedings are inherently a complex legal undertaking. Hiring the right divorce attorney can make all the difference in the outcome of any case.

Person at a computer holding a phone and pen

New Texas Law Opens Door for Non-Lawyers to Practice


by Gregory Sirico

Texas is at a critical turning point in addressing longstanding legal challenges. Could licensing paralegals to provide legal services to low-income and rural communities close the justice gap?

Animated figures walk up a steep hill with hand