California DCC METRC Update: What to know and how to stay compliant
Related: California Cannabis Licensing Facts and Figures
In a DCC listserv dispersed Monday October 10th 2022, CA’s cannabis regulatory agency claimed it had been working with Metrc on a slate of improvements. The announcement claims system enhancements will be rolling out by November and updated training resources will become available next year - though the specific dates haven’t yet been provided.
It’s a bit of a mixed bag as functionality updates and environmentally conscious practices are great but it also allows for greater visibility for all regulators to monitor each licensee’s account further regulating operators that already bear the burden of high compliance costs.
California DCC METRC Updates
Below is a list of the following updates and likely impacts:
Data batch uploads will be performed in the background and allow licensees to perform other tracking tasks, such as data input, more efficiently.
Users will be able to upload Multiple CSV files simultaneously also increasing efficiency.
Metrc staff will have greater visibility into accounts. Though we don’t yet know what this means, we can speculate they will likely be able to search for specific UIDs more easily and across multiple, separately owned licenses.
Local jurisdictions will have better access to extract and analyze licensee data, increasing transparency and better informing policy and compliance decisions. Expect to start seeing more detailed local traceability audits.
New resources will provide step-by-step instructions for licensees to locate and attend California-specific training modules, including a simplified process to become credentialed, with in-person trainings starting in 2023.
DCC staff will also receive additional training to increase proficiency on system modifications and system utilization, allowing them to provide informed guidance and assistance to licensees. With Global Go’s experience in Metrc training, compliance, and even cleanups, we are withholding judgment on the efficacy of this endeavor. Licensees are often reluctant to reach out to the very people who can fine or recommend fines (i.e. DCC track-and-trace enforcement) for traceability violations even when committed unintentionally. In fact, most often, licensees are more likely to reach out to Metrc support, who won’t even answer questions until the caller provides their name, license, username, and call back number. Most often, Metrc support’s responses are to contact the DCC. We suggest brushing up on the 400 + pages of manuals and the regulations or scheduling a Metrc refresher class.
DCC staff will now have access to Metrc’s system performance monitoring tools that will allow staff to see when there are performance issues in real-time, alert licensees, and work with Metrc to remediate challenges. This is likely to affect retail licensees the most. As Metrc experts, one of the most common challenges we see are with retail licensee’s POS system and its API integration. Often the chain is broken and prevents sales from being uploaded preventing inventory being accurately reflected as a result. It’s unseen as to how this particular update will help retail licensees in this respect as DCC staff doesn’t have Realtime visibility in the POS systems nor do the regulations require it.
Retailers will have the opportunity and functionality to enter additional information about consumer sales, allowing for a more efficient tax auditing process. This is great but could be a burdensome option for retailers who are still reeling from the stress of an over-regulated market and fears of fallout from an impending recession that trigger productivity prioritization over implementation of best practices.
In late October, the DCC and Metrc will begin testing more sustainable tag prototypes. This is great because we know our clients run through copious amounts of tags, especially cultivators, and we love the attention to preserving our planet and being a thought leader. California, as the biggest cannabis market in the world, also has a responsibility to set forth industry-leading sustainable practices as other states and countries come online.
Related: California DCC seizes more than $1B of illegal cannabis
CA DCC to Prioritize METRC Inspections
Last, the most consequential upgrade to METRC will allow DCC to review data anomalies with ease, allowing the state to prioritize inspections that support the integrity of the licensed cannabis market and educate licensees who may be accidentally misreporting information. This likely means the DCC will be actively looking for diversion and these updates provide DCC with better tools to support enforcement. Though the DCC says it can work to educate licensees on how to correct errors, this will likely come with fines attached for some operators with numerous METRC reporting issues.
All this to say, it’s best to ensure that you’re treating the health of your METRC account the same as you would for any other type of compliance. Some track-and-trace violations are classified as serious, meaning the maximum penalty for singular noncompliance is $5,000. In the worst cases, the DCC has discretion to issue fines for each instance of violation and can run up to $30,000. (See Disciplinary Guide here). So, if you know you need to clean up any of your METRC accounts and schedule training or a simple refresher, the time is now, and it just might save you thousands of dollars in fines.
To learn more about METRC compliance in California, contact a Global Go consultant today: