NY Dispensary Inspection Checklist: Complete OCM Audit Preparation Guide

The New York Office of Cannabis Management (OCM) conducts both routine and unannounced inspections of licensed dispensaries. Being prepared for these inspections is crucial—violations can result in fines ranging from $1,000 to $50,000, mandatory corrective action plans, or license suspension.

This comprehensive checklist will help you prepare for OCM inspections and maintain ongoing compliance at your NY dispensary.

What OCM Inspectors Look For

Inspectors evaluate your dispensary across these key areas:

1. Security systems and protocols
2. Record-keeping and documentation
3. Inventory tracking and control
4. Product storage and handling
5. Employee compliance and training
6. Sales floor and customer areas
7. Facility maintenance and safety

Inspections typically last 2-4 hours and may include interviews with staff members.

Security Systems Checklist

Video Surveillance

• [ ] Cameras cover all entry/exit points (front, back, delivery)
• [ ] Cameras cover entire sales floor with no blind spots
• [ ] Cameras cover all areas where cannabis is stored or handled
• [ ] Cameras cover point of sale terminals
• [ ] Cameras cover safe and cash handling areas
• [ ] Camera resolution meets minimum 720p requirement
• [ ] 90-day footage retention verified and tested
• [ ] Remote access capability for OCM is functional and tested
• [ ] All cameras have visible date/time stamps
• [ ] Backup power system for surveillance (UPS or generator)
• [ ] Camera system login credentials available for inspectors
• [ ] Recent footage retrieval test documented (within 30 days)

Access Control

• [ ] All limited access areas are properly secured
• [ ] Badge/key access logs are maintained and current
• [ ] Visitor log is complete and up to date
• [ ] Employee access list is current (reviewed monthly)
• [ ] Former employee access revoked within 24 hours of separation
• [ ] Safe(s) for cash and high-value products properly secured
• [ ] Limited access areas clearly marked with signage

Alarm Systems

• [ ] Intrusion alarm system is functional and tested monthly
• [ ] Panic buttons accessible to all customer-facing staff
• [ ] Alarm company contact information posted and current
• [ ] Alarm testing documentation available (last 12 months)
• [ ] Police notification protocols documented and verified

Record-Keeping Checklist

Required Documentation On-Site

• [ ] Current cannabis license posted in visible location
• [ ] Operating plan on file and current (matches actual operations)
• [ ] Security plan on file and current
• [ ] Employee training records for all current staff
• [ ] Background check documentation for all employees
• [ ] Age verification training records for sales staff
• [ ] Standard operating procedures (SOPs) available

Transaction Records

• [ ] All sales recorded in seed-to-sale tracking system (Metrc)
• [ ] Customer ID verification logs maintained (90+ days)
• [ ] Voided transaction documentation with manager approval
• [ ] Daily sales reconciliation records complete
• [ ] Cash handling procedures documented and followed
• [ ] Delivery manifests complete and filed (if applicable)

Inventory Records

• [ ] Real-time inventory matches seed-to-sale system
• [ ] Physical inventory counts documented (daily recommended)
• [ ] Discrepancy investigation records maintained
• [ ] Waste/destruction logs with witness signatures
• [ ] Transfer manifests complete and properly filed
• [ ] Quarantined product documentation current

Inventory Control Checklist

Product Tracking

• [ ] All products tagged and tracked in seed-to-sale system
• [ ] Package IDs match physical labels on all products
• [ ] Quarantined products separated and clearly labeled
• [ ] Recalled products removed from sales floor and documented
• [ ] Sample products properly documented and stored
• [ ] Expired products removed and destruction documented

Storage Conditions

• [ ] Temperature monitoring in storage areas (logs maintained)
• [ ] Humidity control where required (especially for flower)
• [ ] Products stored off floor on appropriate shelving
• [ ] Pest control measures in place and documented
• [ ] Storage areas clean and organized
• [ ] FIFO rotation (first in, first out) being followed
• [ ] Light exposure minimized for sensitive products

Sales Floor Compliance Checklist

Required Signage

• [ ] "No persons under 21" sign at entrance
• [ ] License posted in visible location
• [ ] Health warning signs displayed per OCM requirements
• [ ] Emergency exit signs visible and illuminated
• [ ] No smoking/vaping signs posted

Product Display

• [ ] All displayed products have compliant labels
• [ ] No expired products on sales floor
• [ ] Products stored in compliant packaging
• [ ] Price information does not make health claims
• [ ] No health benefit claims in any marketing materials
• [ ] No appeal to minors in displays or marketing

Customer Transactions

• [ ] ID verification performed for every transaction
• [ ] ID scanner or manual verification log in use
• [ ] Purchase limits enforced and tracked
• [ ] Receipts provided with required information
• [ ] Products bagged in opaque exit packaging

Employee Compliance Checklist

Documentation

• [ ] All employees have completed required training
• [ ] Training certificates on file and current
• [ ] Background checks current for all staff
• [ ] Agent cards/employee IDs displayed while on duty
• [ ] Personnel files complete and organized

Operational Knowledge

Staff must be able to demonstrate knowledge of:

• [ ] ID verification procedures – can explain process
• [ ] Seed-to-sale system – can perform basic operations
• [ ] Product limits – knows daily purchase limits
• [ ] Emergency procedures – knows what to do
• [ ] Reporting requirements – knows what to report
• [ ] Compliance basics – understands key rules

Facility Checklist

General Conditions

• [ ] Facility is clean and well-maintained
• [ ] No structural hazards or safety issues
• [ ] Adequate lighting in all areas
• [ ] Fire extinguishers present and inspected (current tags)
• [ ] Emergency exits clearly marked and unobstructed
• [ ] First aid kit stocked and accessible
• [ ] HVAC system functioning properly

Exterior

• [ ] Signage compliant with local ordinances
• [ ] Exterior lighting adequate for security cameras
• [ ] No loitering or consumption on premises
• [ ] Delivery area secured and monitored

Day-of-Inspection Protocol

When inspectors arrive:

1. Verify inspector credentials – Ask for OCM identification
2. Designate a point person – One manager should accompany inspectors
3. Document everything – Take notes on what's examined
4. Be cooperative but careful – Answer questions honestly, don't volunteer excess
5. Request copies – Get copies of any citations or notes
6. Don't obstruct – Never deny access during business hours

What NOT to Do

• ❌ Don't deny access to inspectors during business hours
• ❌ Don't attempt to hide or move products
• ❌ Don't argue with inspector findings on-site
• ❌ Don't sign anything you don't understand
• ❌ Don't let inspectors roam unaccompanied
• ❌ Don't answer questions you're unsure about (say you'll verify)

After the Inspection

If Citations Are Issued

1. Review citations carefully within 24 hours
2. Understand the deadline for corrective action
3. Document remediation efforts with photos and records
4. Submit required responses before deadlines
5. Consider consulting with a cannabis attorney
6. Train staff on identified issues to prevent recurrence

Ongoing Compliance

To stay inspection-ready:

• [ ] Monthly self-inspections using this checklist
• [ ] Quarterly security audits with documentation
• [ ] Regular staff training refreshers
• [ ] Stay updated on OCM regulatory changes
• [ ] Address minor issues before they become violations

Get Inspection-Ready with CannAdvisor

Don't wait for inspectors to find problems. Our Inspection Prep Checklist Tool provides an interactive, digital version of this checklist customized to your license type.

For a complete overview of all inspection requirements, visit our NY Cannabis Inspections Compliance Hub.

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Last updated: January 25, 2026. This article is for informational purposes only and does not constitute legal advice. Always consult with a licensed attorney for legal guidance and verify requirements directly with the NY OCM.