It’s been a busy few weeks for the MED! Between the Transporter Industry Bulletins and Public Health Advisories, there has been a lot to keep track of. In addition to these recent updates, the MED also recently published a new Position Statement. We are especially excited about this Statement because it hits on digital records – a topic near and dear to our hearts.
For those that don’t know, Complia provides a comprehensive record management system that was specifically designed for the cannabis industry. It’s the best way to capture all of those most important compliance and licensing docs. Our system stores and manages anything from State Licenses, Local Licenses, zoning permits, facility diagrams, signed manifests, visitor logs, pesticide application logs, Serv-Safe certificates, and much, much more. Many of our clients often ask – “This is great, but what does the MED have to say about digital records?” We finally have our answer!
The recent industry bulletin dives into this topic in detail, but the short answer is a resounding yes, digital records are compliant! However, the position statement stipulates two requirements:
- “…electronic records must be available on-demand at the Licensed Premises to the Division and be in a format that is functionally accessible at the Licensed Premises to the Division.” and;
- The records must be maintained “in a format that is readily understood by a reasonably prudent business person.”
Complia’s record management system absolutely meets both requirements. (See the position statement here! or page down) Our system is accessible on demand and it’s very readily understood by a prudent business person (or just about anyone who has ever used a computer for that matter!). With this topic cleared up, now would be a great time to ask yourself “Why aren’t we using Complia?” Drop us a line to schedule a demo – email@example.com
Yours in Compliance,
August 1, 2017
Sent via email
Jeff Wilson, Esq.
McAllister Garfield, P.C.
501 S. Cherry St., Ste. 480
Denver, CO 80246
Dear Mr. Wilson:
This letter is in response to your request for a Statement of Position pursuant to Rule R 104(A), 1 CCR 212-2, dated June 28, 2017. Your inquiry requested a Statement of Position from the Marijuana Enforcement Division (“Division”) as to the following question:
“Specifically, I am asking for clarification on whether digital records immediately accessible from a licensed premises qualify as ‘on premises’ within the meanings of Rules R 901(A)(2)(a), 1 CCR 212-2 and M 901(A)(2)(a), 1 CCR 212-1. Would such determination depend on whether or not the licensee possesses a means of promptly providing the Division with copies of digital records upon demand, such as a printer, removable hard drive, cloudbased technology allowing electronic sharing of records with the Division, or other means?”
Electronic Business Records
The Colorado Medical Marijuana Code and the Colorado Retail Marijuana Code each require that a licensee retain all books and records necessary to fully account for the business transactions conducted under its license(s) for the current year and three preceding calendar years. §§ 12-43.3-701(3) and 12-43.4-701(3), C.R.S. The Codes also require a licensee to provide the Division with access to these books and records for examination. §§ 12-43.3- 701(2) and 12-43.4-701(2), C.R.S. See also Rules M 901(A), 1 CCR 212-1, and R 901(A), 1 CCR 212-2.
The Rules further specify that Medical Marijuana Businesses and Retail Marijuana Establishments must maintain on the Licensed Premises1 at all times books and records for the preceding six months (or complete copies of such records). Rules M 901(A)(2)(a), 1 CCR 212- 1 and R 901(A)(2)(a), 1 CCR 212-2.
Neither the Codes nor the Rules prohibit a licensee from maintaining records it is required to keep in an electronic format. See Rules M 901(B), 1 CCR 212-1 and R 901(B), 1 CCR 212-2; 1 Capitalized terms used but not otherwise defined herein shall have the definition as ascribed to them in the Medical Marijuana Code, 12-43.3-101, et seq., C.R.S., Retail Marijuana Code, 12-43.4-101, et seq., C.R.S., and rules promulgated thereto. 2 DR 4095 (06/12/14) see also Rules M 901(A)(2)(a), 1 CCR 212-1 and R 901(A)(2)(a), 1 CCR 212-2 (providing that the on-premises record keeping requirement may be satisfied by maintaining a “complete copy” of required records).
Electronic Records Accessible from a Licensed Premises
Electronic records that are accessible from, but not physically located at, a licensee’s Licensed Premises may satisfy Rules M and R 901(A)(2)(a)’s requirements. In order to be compliant, such electronic records must be available on-demand at the Licensed Premises to the Division and be in a format that is functionally accessible at the Licensed Premises to the Division. See Rules M 901(F), 1 CCR 212-1 and R 901(F), 1 CCR 212-2.
Further all business records must be maintained “in a format that is readily understood by a reasonably prudent business person.” Rules M 901(A)(1), 1 CCR 212-1, and R 901(A)(1), 1 CCR 212-2. As such, whether maintained in hard copy or electronically, the format of any records provided to the Division must be a format that would be readily understood by a reasonably prudent business person.
Finally, please also note that, pursuant to Rules M 901(B), 1 CCR 212-1, and R 901(B), 1 CCR 212-2, any loss of electronically-maintained records shall not be considered a mitigating factor for violations of the rules. Licensees are required to exercise due diligence in preserving and maintaining all required records. Id. Further, violation of Rules M 901, 1 CCR 212-1, and R 901, 1 CCR 212-2, may constitute a license violation affecting public safety. Rules M 901(C), 1 CCR 212-1 and R 901(C), 1 CCR 212-2.
Thank you for your inquiry.
Marijuana Enforcement Division