Inspections are stressful for everyone involved, but they’re somehow made worse when you’ve got nothing to hide and they’re totally unexpected. Not only is there a chance that the inspector woke up on the wrong side of the bed, but there’s always the off chance that you—or your co-workers—have done something incorrectly without even realizing it.
Moreover, there are enough cases involving mistaken identity, incorrect addresses, and overzealous cops that, even if your business is 100% legitimate, it could still become the target of an illegal or unauthorized raid by law enforcement officers (LEOs). It’s a risk that’s even present amongst dispensaries and other facilities that operate in medicinal and recreational states.
What Agents Can Legally Ask For
In most states, inspectors have the authority to conduct on-site inspections of cannabis dispensaries and grow ops at virtually any time they choose—and they’re generally not required to provide any type of notice whatsoever. These inspections could target nearly anything related to your cannabis business, including licenses, permits, security or surveillance footage, information related to individual employees, and even cash or other assets that they suspect of being used in a crime.
Important Documents to Keep on Hand
- Any applicable operating licenses, permits, or certificates of analysis (COAs)
- Business and financial records
- Personnel records
- Contact information of managers and supervisors
- Seed-to-sale records
- Chain of custody logs
- Proof of recalls and waste management
- Visitor logs for non-public areas
Apart from physical products, LEOs performing a raid would also be targeting many of these same things. In the case of a raid, however, LEOs can only operate within the guidelines of their specific search warrant. Performing any actions outside of these specifications, or seizing cash, goods, or assets that aren’t specifically named in the search warrant, could jeopardize their entire case as soon as it reaches the courtroom.
Preparing Staff for Inspections and Raids
It’s crucial that all of your staff members know how to act during inspections and raids. Saying something offensive to an inspector or making a suspicious move, especially during a raid, could have dire consequences for both the business and the individual.
Most inspections are pretty straightforward. If it’s unannounced and inspectors are suddenly inside the building, staff should immediately alert management to their presence. From there, most subordinate staff will take a passive role, while on-site managers interact with the inspectors to provide the necessary documentation, answer questions, and monitor their actions.
Raids, on the other hand, tend to be a lot more chaotic in nature. Ideally, subordinate staff members should still notify management as soon as possible. In the case of an unannounced or unexpected raid, however, there might not be enough time. The most important part here, for the entire team, is to remain calm and avoid resisting the officers. Managerial staff should move quickly to secure any cash, and everyone should exercise their right to counsel if asked any questions. You certainly don’t want to escalate the situation at this point, so try to act respectfully and professionally—even if the LEOs won’t give you that same courtesy.
What To Do During a Raid
- Verify the credentials of the LEOs involved
- Obey and cooperate with lawful commands
- Request the presence of a lawyer during questioning
What NOT To Do During a Raid
- NEVER obstruct a LEO’s actions
- DO NOT falsify information of any kind
- AVOID name-calling or any other actions that could escalate the situation
There are a variety of ways you can prepare for an inspection or raid. Mock inspections and raid role-playing sessions can go a long way toward providing knowledge and boosting employee confidence, while creating a contact sheet with key names and numbers ensures that management is no more than a phone call away at all times.
Common Citation Triggers
In theory, inspections and raids can happen at any time of the day or night and for no particular reason whatsoever. Sometimes, however, they’re spurred on by new laws and legislation, complaints from within the local community, or the actions (and inactions) of staff.
New Laws and Regulations
We live in tumultuous times—and this is especially true for those who operate in the cannabis industry. As new laws are made and regulatory guidelines continue to evolve, dispensary owners need to stay up-to-date on any recent changes in order to maintain compliance at all times.
Tax and Revenue Audits
Failed audits can lead to inspections and raids, too. The IRS generally doesn’t mess around when it comes to collecting its money, so any discrepancies here could spell big trouble for the entire business.
Failed Lab Tests
Although one or two failed lab tests probably won’t cause too much concern, repeated failures, especially when it comes to heavy metals, pesticides, or mold, could result in more frequent inspections, raids, or even loss of business licensure.
Selling to Minors
Undercover LEOs regularly frequent gas stations and supermarkets to perform compliance checks. Luckily, these efforts are easily thwarted by verifying the ID of everyone who walks into the store.
Learn How to Ace Your Next Inspection While Avoiding Raids
Inspections and raids happen every day across the United States—whether they’re legally authorized or not. If you’ve recently failed an inspection, or if you just want to do everything possible to safeguard against raids, stay tuned to the pages of HQ Magazine for more helpful tips on how you can keep your business safe in the modern cannabis industry.
Check out this recent article for more tips and information on how to keep your shop secure and compliant.
