METRC Compliance Requirements 4 — Questions and Answers
Question 1: A METRC compliance audit reveals that a processor's recorded input weights do not match the combined output weights plus documented waste. This discrepancy most likely indicates:
- Normal evaporation losses within acceptable tolerance
- A potential diversion of product requiring investigation (Correct answer)
- A software error in METRC that regulators will correct automatically
- An acceptable rounding difference in measurement
Correct answer: A potential diversion of product requiring investigation
Unexplained weight discrepancies between inputs and outputs are a red flag for diversion and trigger regulatory investigation.
Question 2: In METRC, what is the purpose of the 'Waste' entry type on a plant batch record?
- To record the sale of cannabis to medical patients
- To document unusable plant material that will not enter commercial inventory (Correct answer)
- To transfer excess plant material to another cultivator
- To record plants moved to outdoor growing areas
Correct answer: To document unusable plant material that will not enter commercial inventory
Waste entries in METRC account for plant material that is destroyed and removed from the commercial supply chain.
Question 3: A dispensary's physical inventory count finds 5 grams more flower than METRC shows. What is the correct compliance response?
- Sell the extra 5 grams without recording it since it is a minor amount
- Record a package adjustment in METRC to reconcile the overage and document the reason (Correct answer)
- Destroy the extra 5 grams and say nothing
- Transfer the overage to a partner dispensary to balance books
Correct answer: Record a package adjustment in METRC to reconcile the overage and document the reason
Any discrepancy between physical inventory and METRC records must be reconciled with a documented adjustment and a reason code.
Question 4: Which of the following correctly describes a METRC 'Lab Sample' package?
- A package sold to a licensed laboratory for resale purposes
- A small portion pulled from a production batch and transferred to a testing facility (Correct answer)
- Any package that has been tested and passed quality control
- A package created when a batch fails a compliance test
Correct answer: A small portion pulled from a production batch and transferred to a testing facility
A Lab Sample is a designated portion of a batch extracted and transferred to a licensed testing lab before the batch can be released for sale.
Question 5: A cannabis retailer sells to a customer who claims to be a licensed dispensary. Without a METRC transfer record, the sale is:
- Permissible if the customer provides a valid business license number
- A compliance violation regardless of the buyer's licensee status (Correct answer)
- Allowed if the transaction is documented in a paper ledger within 48 hours
- Valid only if the sale is under one ounce
Correct answer: A compliance violation regardless of the buyer's licensee status
All transfers between licensed entities must be processed through METRC; untracked transfers are violations even when both parties are licensed.
Question 6: What does the METRC 'Location' field on a plant or package record represent?
- The GPS coordinates of the cannabis plant
- The specific area within a licensed premises where the plant or package is stored (Correct answer)
- The city in which the licensed facility operates
- The delivery address for an outbound transfer
Correct answer: The specific area within a licensed premises where the plant or package is stored
Locations in METRC correspond to defined zones within a facility (e.g., Grow Room A, Vault 1) that licensees set up in their account.
Question 7: Under METRC compliance requirements, which action is required when a licensee permanently closes their business?
- Simply stop logging into METRC and allow the account to expire
- Transfer or destroy all remaining inventory and notify the regulator to close the METRC account (Correct answer)
- Donate remaining inventory to a nonprofit organization
- Seal inventory on-site and leave it for state auditors to inventory
Correct answer: Transfer or destroy all remaining inventory and notify the regulator to close the METRC account
Closing licensees must dispose of all tracked inventory through METRC-recorded transfers or destruction before their license is surrendered.
METRC Compliance Requirements 4
A METRC compliance audit reveals that a processor's recorded input weights do not match the combined output weights plus documented waste.
This discrepancy most likely indicates: