Colorado’s MED Prepares for Future of Cannabis Inventory Tracking

LOS ANGELES- The Colorado Marijuana Enforcement Division (MED) is at a pivotal juncture in its oversight of the state’s cannabis industry. Since the legalization of recreational cannabis in 2012, the MED has played a crucial role in ensuring compliance and safety standards, notably through the use of Radio Frequency Identification (RFID) METRC tags for inventory tracking.

In a significant policy update, the MED has announced prospective changes to its inventory tracking system. This announcement comes ahead of the Department’s next solicitation process for a statewide inventory tracking system, set to undergo changes in January 2024. Contrary to some media reports, the MED clarified that these changes do not signal the complete abandonment of RFID tags. Instead, they mark a shift from an RFID-specific language to a broader “inventory tracking system” approach, allowing the consideration of alternative technologies.

This shift is indicative of the MED’s proactive stance in exploring diverse inventory tracking solutions beyond the currently mandated RFID-based system. Notably, the existing vendor contract for the inventory tracking system remains valid until 2026, indicating that any significant transition away from RFID-tag requirements would occur post the MED’s procurement process conclusion.

Dominique Mendiola, Senior Director of the Marijuana Enforcement Division, emphasized the Department’s intention to enhance the competitive nature of its solicitations. The evolution of Colorado’s adult-use cannabis market necessitates a reflection on regulatory needs and the potential adoption of various available inventory tracking solutions.

The use of RFID tags, while effective, has been a significant financial burden for cannabis businesses. Jon Spadafora of Veritas Fine Cannabis highlighted the cost implications, noting that RFID tags can amount to a six-figure annual expense for large facilities.

The future of METRC (Marijuana Enforcement Tracking Reporting Compliance) in Colorado, the current inventory tracking system, has become a subject of speculation with the MED’s contract set to expire in 2026. However, it is important to note that the expiration does not automatically signal the end of METRC in the state. The upcoming solicitation process will play a crucial role in determining the new system, with the possibility of METRC technology still being an option.

METRC has expressed its commitment to adapting alongside the Colorado industry and ensuring regulatory compliance. The company is exploring alternatives to RFID tags, including more sustainable tag options, reflecting its readiness to meet evolving industry needs.

In summary, the MED’s rule changes signify a potential shift towards more diverse and potentially cost-effective inventory tracking options for Colorado’s cannabis businesses. While RFID tags have been central to inventory management, the industry may soon see a transition to more adaptable and sustainable technologies, aligning with the state’s evolving regulatory landscape and the needs of cannabis businesses.