The cannabis industry is booming, but with growth comes responsibility, especially when it comes to compliance. Traditionally, every licensed cannabis operator must use state-mandated track-and-trace systems to record and report product movements from seed to sale.
Why? Because regulators need a clear picture of where every cannabis product is at all times from cultivation and testing to transportation and retail sales.
Most states require licensed cannabis operators to use one of two primary track-and-trace systems:
While both serve the same purpose of ensuring cannabis compliance, they have major differences that can impact your daily operations.
We'll explore these differences and how the right cannabis business software can make compliance easier, not harder.
A track-and-trace system is a state-regulated compliance tool that monitors the movement of cannabis throughout the entire supply chain. It ensures that businesses stay within legal guidelines by:
Here’s the truth: While track-and-trace systems are required, they don’t automatically keep you compliant; they only provide a way to report your data. Cannabis operators are responsible for:
Learn More On Track-and-Trace in Cannabis
Both track-and-trace systems ensure state compliance, but their methods, features, and usability differ. Let’s break it down further.
BioTrack is a state-mandated track-and-trace system used in various states. It provides compliance tracking for dispensaries, cultivators, and manufacturers. It also offers optional cannabis business software solutions, but businesses can choose a third-party integrated seed-to-sale system, like Flourish.
BioTrack is mandated in these states:
Metrc is the most widely used track-and-trace system in the U.S., designed for state compliance and supply chain visibility. Unlike BioTrack, Metrc does not include a POS system, so cannabis businesses must choose third-party cannabis business software to manage retail operations.
Metrc is required in more than 20 states, including:
Ignoring track-and-trace rules can cost you big.
In California, cannabis businesses can face fines of up to $30,000 per violation per day for unlicensed individuals and $5,000 per violation per day for licensed businesses.
In Colorado, violations are categorized into levels, with Level I violations being the most severe, leading to license suspensions, hefty fines, or permanent closures.
Penalties vary by severity minor infractions might result in warnings, but major violations can lead to tens of thousands of dollars in fines and potential license revocation.
Managing a cannabis business involves more than growing and selling products; it’s about ensuring compliance, inventory accuracy, and operational efficiency.
Here's Where Flourish Software Comes In
As the cannabis and hemp industries grow, tracking compliance, inventory, and customer engagement becomes more complex. From cultivation to retail, Flourish Software offers a fully integrated seed-to-sale platform that connects directly with Metrc and BioTrack, ensuring that businesses remain compliant while optimizing their operations.
Want to simplify compliance and grow your operations? Schedule a Demo Today!