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CBE’s Tech Stack Consideration List: Compliance

Compliance is the name of the cannabis industry game. Being unable to operate a business under strict regulatory scrutiny can result in fines, license suspensions, or, in the worst cases, license revocations.

Choosing the right cannabis compliance software can lighten the load for operators by streamlining SOPs, organizing compliance documents, collating and vulgarizing state and local regulations, integrating directly with state compliance systems, and more. Some are standalone systems focused exclusively on compliance, while other platforms add robust compliance features to key operational technology like point-of-sale (POS) systems.

Here, Cannabis Business Executive breaks down some of the compliance software providers cannabis retailers and operations can consider when shopping for a new system or looking for added features.

Cannabis Business Executive Tech Stack List At-a-Glance: Compliance

Simplifya ProCanna Cova Flowhub
Price/
monthly fee
$289/month/location Starting at $295/month, depending on users and license types Starting at $349/month Custom pricing
States available Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New Mexico, North Dakota, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Utah, Virginia, Vermont, Washington, West Virginia Arizona, California, Connecticut, Florida, Illinois, Massachusetts, Maryland, Maine, Michigan, New Jersey, Nevada, Ohio, Pennsylvania Alaska, California, Colorado, Illinois, Massachusetts, Maine, Michigan, Missouri, Mississippi, Montana, New Jersey, New Mexico, New York, Oklahoma, and Washington state Alaska, California, Colorado, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, Nevada, New Jersey Oklahoma, Oregon, South Dakota, West Virginia, Vermont
Features Auditing and enforcement tools cover state and local jurisdictions in 28 states; document management; SOP packages State regulation database, customizable auditing tool Point-of-sale software, payments, compliance Point-of-sale software, Ecomm, Compliance, CRM platform
Integrations (not exhaustive) Metrc (in 7 states) None (including Metrc) Canix, Shopify, Jane, Leafly, Weedmaps, LeafLink, Leafbuyer, Alpine IQ, Headset, springbig, Metrc Flourish, Weedmaps, Jane, Dutchie, Leafly, Alpine IQ, Headset, springbig, Sprout, Metrc

Dedicated Compliance Software

Dedicated compliance software might seem like a luxury to some businesses but can prove to be good insurance against regulatory lapses that could put licensees at risk. As with most things in the market, solutions appear with different features at different price points. What a business needs from a dedicated compliance software solution will greatly depend on the operation’s sophistication, whether it’s part of a state network or multi-state operator (MSO) empire, and existing compliance procedures.

Simplifya: Detail-oriented compliance management tool

Simplifya is one of the more comprehensive compliance software systems in the cannabis market today. The company tracks regulations at the state, county, and city levels across 28 state markets, with its in-house team of legal experts breaking down regulatory language into clear action points for businesses. The company also offers SOP and compliance document management tools, as well as market guides and a license tracker.

Simplifya’s scope of work lends itself to many industry actors, from licensees and regulators to consultants and insurance agents. Instead of charging on a per-user basis, Simplifya markets its services on a per-location rate: $289 per month, per location. With this setup, businesses get unlimited users and audits, which might be more cost-effective for large teams needing many user permissions.

One added consideration: Simplifya’s CEO Marion Mariathasan has been candid about the company being open to a merger or being acquired, and while he has told CBE it would consider such deals as “long as Simplifya as a company still gets to maintain what we want to provide for the industry…” there is always the risk of new ownership prioritizing different features, impacting user experience.

ProCanna: Compliance with strong features, on a budget

ProCanna is a fairly newer platform in the cannabis industry, with market sales starting in July 2021. Led by Dede Perkins, an executive with nearly 10 years of regulated cannabis experience, the company aims to help manage and uphold brand standards for operators. 

Starting at $295 per month depending on the number of users (user fees) and license types (content fees), ProCanna currently does not integrate with Metrc or other state compliance systems, meaning compliance reports cannot be filed directly from the software. City and county regulations also are not tracked within the platform.

ProCanna does offer a searchable state regulation database and an SOP and document management tool. And where the company might stand out from its competitors is with its auditing tool: ProCanna enables compliance managers to send audit quizzes to staff and request photos and/or videos be provided of tasks being completed. This allows more centralized control over SOP-guided tasks and helps identify education opportunities for team members in need of more training.

“It’s all date and timestamped,” Perkins told CBE in November. “So if there was an issue, they can document that they identified it. If there wasn’t an issue, they can also document what was going on in the facility that day.”

Integrated Compliance Tools

Some cannabis tech companies offer comprehensive compliance features that go beyond their software’s core competencies. While these compliance tools might not be appropriate for all businesses, with some attention to detail many retailers can improve their store’s compliance with these systems.

Flowhub

Flowhub is a POS system with strong compliance features for cannabis retailers: ID checks, purchase limits, and an inventory management system that integrates with Metrc all ensure that retail operations are done in compliance with state regulations.

Flowhub offers custom quotes for its solutions, and its POS system can run on a variety of hardware systems. The ID verification tool and inventory management run on Flowhub’s Nug Pro scanner device, meaning hardware will be part of the cost (if built into the monthly SaaS fee). 

The company also offers social equity discount pricing, which includes two free Nug Pro software subscriptions and access to Greet (ID check and customer relationship management (CRM)) and Stash (inventory management) apps. Flowhub has “granted over $4 million in software and services to minority business owners and underrepresented business owners in cannabis,” Sherman told CBE in October 2022.

Cova

Cova is another POS system that places a premium on its compliance features. One feature that is geared toward MSOs: Cova customizes product equivalencies across state markets, automatically adjusting flower-weight equivalents across products. “It turns out there is no hard and fast rule,” about weight equivalencies, Cova CEO Gary Cohen told CBE in October. “You go to one state and a hundred milligrams of concentrate equals two grams of flower. You go to the next state and a hundred milligrams of concentrate equals three grams of flower.”

Cova also offers an ID checking system and purchase limit alerts within its POS system, as well as the option to set hours of operation to prevent accidental prohibited sales.

Cova integrates with Metrc, Leaf Data Systems, and BioTrackTHC, and with seven Canadian provincial and territorial systems to streamline sales and inventory reporting to government agencies. Starting at $349 per month, the POS system will ensure that sales are completed compliantly and reports are compiled rapidly for on-time delivery.

As with all integrated compliance tools, Cova’s platform is not meant to be the one-stop compliance shop for large businesses, especially vertically integrated operations that need better oversight and control over all operations.

Brian MacIver

Brian MacIver

Brian MacIver is a freelance writer and editor based in Vancouver, British Columbia. He also is Partner and Director of Strategic Communications for Guerrera: The Agency, a boutique communications and marketing agency serving small businesses, nonprofits and progressive groups. He can be reached at [email protected]

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