Increased Security Requirements for Denver Dispensaries

As of January 1^st, of this year, the city of Denver, Colorado has begun mandating cannabis dispensaries implement additional security requirements in response to recent increases in crime at cannabis businesses.

There are over 200 dispensaries in Denver that produce an estimated $700 million in annual revenue that now must comply with regulations that bear additional costs and include the use of a secure storage safe. Some dispensary owners see these additional requirements as a way to implement proactive security measures and improve upon the city’s existing regulatory framework, while others are worried that the costs and growing pains could hurt their small businesses.

Changes to security requirements are likely due to increased crime at dispensaries in the city. The City of Denver saw a significant increase in crime from 2019 to 2020 and local studies show that “burglaries associated with commercial cannabis rose from 122 in 2019 to 175 in 2020.” While many of these break-ins were unsuccessful, in certain cases robbers made out with both cash and large quantities of cannabis.

New Denver Security Requirements

In response to the recent uptick in criminal activity and using input from the city police department, the City of Denver increased its required security measures for cannabis dispensaries. These new rules apply to both adult-use and medical cannabis dispensaries, as well as hospitality and sales businesses (consumption areas).

One prominent feature of this new legislation is the city’s first-ever “safe storage requirements on cannabis dispensaries.” While the Denver cannabis industry has long been regarded as one of the best adult-use markets, until now, regulators had not required secure storage safes for dispensaries. Now, both cash and cannabis products must be locked in safes, and even refrigerated cannabis products must remain locked.

In the event that Denver dispensaries don’t have the available square footage to install safes, they must implement other additional security protocols. These other measures include bollards or similar in front of entrances/exits and glass exteriors, security glass, video surveillance with live remote monitoring equipped with loudspeakers, alarm systems which utilize sirens and strobe lights, and security guards patrolling the premises during non-business hours.

Another additional security requirement that has been implemented for dispensaries with drive throughs is that they will not be allowed to have an outdoor menu of cannabis products that could be visible to minors and will now need to offer a handheld menu.

Check out the City of Denver’s online security checklist to ensure your business is compliant with the new regulations!

Implementing Secure Storage Safe Requirements

Cannabis dispensary owners in Denver looking to implement these new security requirements should utilize a TL-rated safe to protect their cannabis and cash. The TL designation is issued by the Underwriters Laboratory and TL-30 safes offer the highest in security standards for most business applications. The TL-rating refers to the safe’s ability to withstand an attack from the common burglar’s go-to tools such as hammers, saws, drills, and grinding wheels. Its solid composite body incorporates high-density concrete and the concrete inside the safe body is embodied with corundum aggregate and encased in a double layer of high-tensile steel.

The numeral part in the TL-rating stands for the amount of time the safe can withstand a sophisticated attack by an experienced criminal. For example, if a safe has a TL-30 rating, the safe can resist an attack for up to 30 minutes. Many of these safes are also rated to protect valuables from a fire for up to 2 hours.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group are familiar with Denver’s cannabis regulations and have already helped businesses in the city comply with these new requirements. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!