How to Stay Metrc Compliant in Rhode Island

Staying compliant with Rhode Island’s cannabis regulations is essential for all cannabis businesses operating in the state. The Office of Cannabis Regulation (OCR), part of the Department of Business Regulation, oversees these laws to ensure businesses follow strict standards, including the use of Metrc, a seed-to-sale tracking system. For 2024, compliance with Metrc is non-negotiable, and to avoid penalties, businesses must understand how to use this system efficiently. In this guide, we will explore the requirements for Metrc compliance and highlight best practices for cannabis businesses in Rhode Island.

Rhode Island Cannabis Laws and Regulatory Framework

Rhode Island has been steadily regulating cannabis, starting with the Thomas C. Slater Medical Marijuana Act, which allowed medical marijuana use for patients with qualifying conditions. Named in honor of State Representative Thomas C. Slater, this act laid the groundwork for a medical cannabis program that is still in place today.

In 2022, Rhode Island passed the Rhode Island Cannabis Act, allowing for the legal use and sale of adult-use cannabis. These laws, combined with the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act, provide a regulatory framework that oversees every aspect of cannabis cultivation, production, and sales in the state.

Metrc tracks every plant and product through the use of RFID tags—each plant is tagged and monitored from germination to its final sale. All businesses licensed under Rhode Island’s cannabis laws must update their Metrc data regularly, ensuring accurate records of production, inventory, and sales. Failure to stay compliant with Metrc’s tracking requirements can lead to fines, suspensions, or revocation of licenses, which could cripple your business.

Metrc Tags and Packages

In Rhode Island, Metrc tags are required for tracking both plants and products:

• Plant Tags: These RFID tags are attached to cannabis plants during their early growth stages and remain with them throughout their life cycle. These allow for tracking from the time a plant is cultivated until it is harvested.
• Package Tags: After the plants are harvested and processed, package tags are applied to cannabis products. These are used to track the final product as it moves through the supply chain—from processing to retail and sales.

Costs of Metrc Tags

The cost of Metrc tags varies based on their use. Plant tags are priced around $0.45 each, while package tags cost about $0.25 per unit. Metrc charges $40 per month and per license for access to its platform and for ongoing training, support, and maintenance. The tags are single-use only and must be purchased directly from Metrc. Businesses are required to buy them regularly to maintain compliance, and bulk orders are available. Tag orders cannot be canceled once processed, as they are custom-made for each licensee.

Best Practices for Staying Metrc Compliant

Maintaining compliance with Metrc requires a disciplined approach across all aspects of your cannabis business. Below are some best practices to ensure you stay compliant:

1. Comprehensive Employee Training

One of the most important aspects of Metrc compliance is proper training. Employees who manage inventory, track plant growth, and handle sales transactions must be well-versed in the system. Rhode Island offers Metrc training courses, often provided through the OCR.

2. Incorporate Third-Party Integration 

Third-party integrations, such as IndicaOnline’s POS system, are critical for enhancing compliance and streamlining business processes. IndicaOnline’s POS system integrates directly with Metrc, allowing businesses to automate key functions such as sales tracking, inventory management, and customer records.

3. Routine Internal Audits

Conducting regular internal audits is a proactive way to ensure compliance. By checking your business operations against Metrc records, you can identify any potential errors or discrepancies early on. This reduces the risk of regulatory violations or penalties.

4. Maintain Proper Documentation

Keeping accurate records outside of Metrc is another important best practice. These records should match what is logged in the system and include detailed information on each plant’s life cycle, inventory levels, sales, and product destruction. Proper documentation is critical for passing audits and inspections.

5. Stay Updated with OCR and Metrc Changes

Because regulations are constantly evolving, businesses must stay updated on changes to Rhode Island’s cannabis laws and any updates from Metrc to remain compliant. Subscribe to updates from the Office of Cannabis Regulation and participate in any training sessions or webinars that provide insights into regulatory changes.

Rhode Island Dispensary License Overview

In Rhode Island, dispensary licenses are categorized as follows:

• Compassion Center License: This authorizes facilities to supply medical cannabis to patients who are registered in the state’s medical program.
• Hybrid Cannabis Retailer License: With this license, you can sell both medical cannabis and recreational cannabis.
• Adult-Use Cannabis Retailer License: This is for dispensaries that exclusively sell cannabis to individuals aged 21 or older for recreational use. To obtain a dispensary license in Rhode Island, applicants must meet several requirements:

1. Be at least 21 years old
2. Have no prior criminal convictions
3. Comply with local zoning regulations or obtain municipal approval
4. Fulfill all tax obligations

Once these requirements are met, applicants should follow these steps to apply:

• Register Online: Create an account through the Rhode Island Cannabis Licensing Portal.
• Prepare Required Documents: Submit the application email to the OCR.

The Importance of Compliance in Rhode Island’s Growing Cannabis Market

Rhode Island’s cannabis sector is expanding, making it essential for businesses to stay compliant with state regulations to operate legally and successfully. Metrc, the state’s seed-to-sale tracking system, is a key component of regulatory oversight, requiring cannabis businesses to track every step of the production and sales process accurately. To remain compliant, businesses must follow clear practices, such as regularly updating inventory, tagging plants and products correctly, and ensuring all sales transactions are recorded in Metrc. 

In addition to using tools like POS systems, regular Metrc training for staff is essential. Keeping up to date with the latest procedures ensures employees know how to enter data correctly, understand how to use RFID tags and follow state-mandated guidelines. The Office of Cannabis Regulation provides regular resources and training to help businesses stay informed on regulatory changes. Being proactive about compliance—whether by utilizing advanced tools, maintaining accurate records, or regularly training staff— helps companies keep pace with the evolving industry.