Mission Statement iComply, LLC’s mission is to provide our clients the most relevant, effective, meaningful and comprehensive marijuana regulatory compliance support by delivering leadership, integrity and excellence in every service we offer. We embody impeccable quality and value through our commitment, passion and dedication to deliver the best performance for our customers, the cannabis industry as well as the health and safety of the public. Our objective is to help our trainees feel: Engaged! Educated!! Empowered!!! In general, compliance means conforming to a rule, such as a specification, policy, standard or law. Regulatory compliance is a necessary goal which cannaBis organizations always aspire to. This is best achieved by each individual knowing and following steps to comply with laws and regulations relevant to their roles and responsibilities as a team. It is imperative that each employee has a complete and thorough understanding of the laws, rules, and regulations that pertains to them. This understanding is essential in protecting everyone as the industry moves from prohiBition to a legal, regulated model. If at any time you require additional instruction or clarity on any aspect of our training, please let your trainer know. We encourage your feedback and suggestions in order to foster continual employee improvement. 1 © iComply, LLC 2019 V.05.22.19..01 Comprehensive Compliance Training OUR GOAL: Ensure that you are knowledgeable, competent, and confident in the duties and regulations required for you to perform your joB in a compliant and responsiBle manner as a ResponsiBle Vendor. OUR OBJECTIVES: By the end of this course, students will demonstrate knowledge of marijuana’s physical effects on the human body, general laws and regulations on transfers to consumers, packaging and labeling requirements, access to the medical marijuana online patient registry and resources, and applicable health and safety state and local regulations and laws pertaining to their role in the cannaBis industry, how to identify acceptaBle forms of ID and to prevent sales to minors, and competency in following laws affecting their joBs in a professional manner to protect and strengthen the integrity of the industry. Everyone involved in Colorado’s industry has a responsibility to know and understand the rules and regulations that govern this extraordinary paradigm shift. We also Bear the responsiBility as citizens to act in the utmost good faith as Responsible Vendors for the sake of the at-large community - not just in Colorado, but for all that will benefit from safe and regulated access to cannabis. Welcome to our Comprehensive Compliance Training! 2 © iComply, LLC 2019 V.05.22.19..01 Table of Contents Table of Contents ............................................................................................................................... 3 Section 1 ............................................................................................................................................ 6 Regulatory Enforcement ........................................................................................................................ 6 Regulatory Terms ................................................................................................................................... 7 Colorado Cannabis Industry ................................................................................................................... 9 How Rules are Made ............................................................................................................................ 10 iComply's Government Relation Efforts ............................................................................................... 11 Strategic Allies in Government Relations ............................................................................................. 12 DOJ Enforcement Priorities .................................................................................................................. 14 Duties & Powers of the MED and Local Authorities ............................................................................. 15 License Infractions & Violations ........................................................................................................... 16 Excercise: Assessing License Violations ................................................................................................ 18 Mitigating/Aggravating Factors ............................................................................................................ 19 Section 2 .......................................................................................................................................... 21 Facility Requirements ........................................................................................................................... 21 Compliance Binder ............................................................................................................................... 22 Badges and Identification ..................................................................................................................... 23 Facility Diagrams .................................................................................................................................. 26 Limited Access Areas ............................................................................................................................ 27 Restricted Access Areas ........................................................................................................................ 28 Visitors .................................................................................................................................................. 29 Permitted Hours of Operation .............................................................................................................. 30 Records and Retention ......................................................................................................................... 31 Reporting Requirements ...................................................................................................................... 33 Cameras and Video Surveillance .......................................................................................................... 35 Security Alarm System Requirements .................................................................................................. 39 Outdoor/Greenhouse Cultivations ....................................................................................................... 40 Dual Purpose Facility Requirements ..................................................................................................... 41 METRC Overview .................................................................................................................................. 43 Using METRC ........................................................................................................................................ 49 3 © iComply, LLC 2019 V.05.22.19..01 Signage, Marketing, and Advertising .................................................................................................... 52 Health and Safety ................................................................................................................................. 53 Disposal of Cannabis Waste and FiBrous Waste .................................................................................. 58 Inventory Management ........................................................................................................................ 59 Third Party ResponsiBility ..................................................................................................................... 59 Section 3 .......................................................................................................................................... 61 Cultivation and Manufacturing............................................................................................................. 61 Cultivation and Production Terms ........................................................................................................ 62 Plant Counts and Production Limits ..................................................................................................... 66 Propagation and Immature Plants ....................................................................................................... 69 RFID Tags and Plant Tracking ................................................................................................................ 71 Vegetative and Flower Cycles ............................................................................................................... 72 Harvest, Manufacturing & Processing .................................................................................................. 73 Marijuana Infused Products Manufacturing ........................................................................................ 74 Audited Products, Alternative Use Products and Adverse Event Reporting ........................................ 76 Concentrate Production ....................................................................................................................... 77 Infused Product and Concentrate Contract Manufacturing ................................................................. 81 MIP Health & Safety ............................................................................................................................