Cannabis waste management isn’t just an operational detail—it’s a regulatory requirement. Maryland dispensaries must follow precise procedures when disposing of unsellable products or managing customer returns.
Improper cannabis waste disposal can result in fines, compliance citations, or worse—license suspension. In this blog, we’ll explain how Maryland’s waste and return rules work and how to integrate compliant systems into your daily dispensary operations.
1. Understand What Counts as Cannabis Waste
Under Maryland regulations, cannabis waste includes:
- Expired products
- Damaged or opened packaging
- Customer returns (unopened or otherwise)
- Contaminated inventory
- Spilled or unusable cannabis material
All waste must be documented, handled securely, and rendered unusable and unrecognizable before disposal.
2. Develop a Written Cannabis Waste SOP
Every Maryland dispensary must have a written Standard Operating Procedure (SOP) for cannabis waste management. Your SOP should include:
- Definitions of what qualifies as waste
- Approved methods of rendering waste unrecognizable (e.g., grinding and mixing with compost or soil)
- Step-by-step destruction process
- Staff roles and access protocols
- Recordkeeping procedures
Ensure all team members are trained and that SOPs are easily accessible during inspections.
3. Record and Track Every Disposal Event
Waste tracking is a critical compliance requirement in Maryland. Your dispensary must log:
- Product name, type, and batch number
- Reason for disposal
- Destruction method and location
- Employee(s) involved
- Date and time of disposal
- Witness confirmation or dual signatures
These logs must be maintained and available for MCA review for up to three years.
4. Ensure Proper Return Handling
Returns are common in cannabis retail, especially for issues related to product quality or packaging. In Maryland, all returns must be:
- Logged immediately in the POS and inventory tracking system
- Isolated from sellable inventory
- Reviewed by a manager for disposal or QA analysis
- Reported in your seed-to-sale software as removed or destroyed
Never reintroduce returned cannabis products into inventory—even if unopened—without proper compliance verification.
5. Use Video Surveillance and Secure Areas
Maryland law may require that waste disposal be recorded by your dispensary’s surveillance system. Be sure to:
- Conduct all waste handling in a secure, monitored area
- Maintain video footage for at least 90 days (or as required)
- Limit access to trained personnel only
The goal is to demonstrate that waste is handled securely and never diverted for illicit use.
6. Partner with Licensed Waste Haulers (if required)
If your local municipality requires cannabis waste to be hauled by a third party, ensure the company is:
- Licensed and approved for cannabis material
- Compliant with both MCA and environmental regulations
- Capable of providing destruction verification logs
Store all receipts and manifests in your compliance records.
♻️ Final Thoughts: Clean Records = Clean Compliance
Cannabis waste disposal may feel routine, but it’s one of the most common areas where dispensaries face violations. Sloppy logging, unclear SOPs, or improper handling can damage your reputation and your license.
GreenGrowth CPAs helps Maryland dispensary owners implement compliant waste and return tracking systems, train staff, and audit processes for regulatory readiness. We also ensure your financial and inventory records align with your disposal logs—something inspectors are quick to cross-reference.
✍️ By Daniel Sabet, Cannabis CFO & Financial Advisor at @GreenGrowthCPAs. Daniel advises cannabis operators nationwide on finance, compliance, and strategy.
