OVERVIEW
House of Dank implements a comprehensive security plan to meet or exceed
Michigan regulatory requirements under the MRTMA and CRA rules. The plan
is designed to protect employees, customers, product, and property through
a combination of physical security, electronic access control, Digital
Watchdog surveillance, and trained personnel.

FACILITY DESIGN
● Single main entry via vestibule with check-in and visitor log maintained
for at least 5 years.
● Visitors are escorted at all times in limited-access areas.
● Segregated areas limit access to only authorized personnel based on
function.
● Exterior lighting and Digital Watchdog cameras cover all entrances,
exits, and parking areas.

SECURITY ZONES
Zone 1 – Entrances/Exits:
● Public access restricted; monitored by Digital Watchdog cameras and
electronic access controls.
● Warning signage is posted at entrances.
Zone 2 – Intermediate Areas (Waiting Room):
● Digital Watchdog coverage; occupancy is limited to prevent loitering.
● State operating license prominently displayed.
Zone 3 – Limited Access:
● Access is limited to authorized employees and contractors with a valid
ID.
● Electronic access control and Digital Watchdog monitoring; marihuana
products behind barriers.
Zone 4 – Restricted Access:
● Dual-authentication entry for storage of marihuana, cash, records,
waste, and IT equipment.
● Access is limited to the minimum staff necessary.

DIGITAL WATCHDOG SURVEILLANCE SYSTEM
● Commercial-grade Digital Watchdog system covering interior, exterior,
entrances, exits, storage, POS, and restricted areas.
● Cameras capture motion and identify individuals, with a minimum
720p resolution.
● 24/7 recording stored on-site and off-site for at least 30 days.
● The system includes alerts for power interruptions or failures.

ALARM SYSTEM & ACCESS CONTROL
● Full-coverage perimeter and restricted area alarms with notification to
management and law enforcement.
● Electronic access control with keycards and PINs; doors secured to
prevent unauthorized access during power outages.
● All non-employee visitors are escorted in limited/restricted areas.

DIVERSION PREVENTION
● Employees must store personal bags in lockers or with security upon
entry.
● Zero tolerance for on-site cannabis/alcohol consumption.
● Employee hygiene protocols for handling marihuana.
● Staff trained on diversion detection and reporting obligations.

EQUIPMENT & MAINTENANCE
● Security equipment is inspected and maintained regularly, with
bi-annual vendor audits.
● Backup power generator ensures 24-hour operation for security
systems.

INCIDENT RESPONSE
● Immediate notification of regulators, state police, and law enforcement
in case of diversion, theft, intrusion, or loss.
● Internal and external evacuation procedures in place for emergencies.
● Security personnel document incidents, secure areas, and preserve
evidence.

STANDARD OPERATING PROCEDURES (SOPS)
● Access Control Plan maintained; regular testing of electronic access,
Digital Watchdog system, and alarms.
● All inventory and cash are tracked in real-time through state and
seed-to-sale systems.
● Staff trained on emergency protocols, suspicious activity, and reporting.
● Coordination with licensed third-party secure transporters for product
and cash transfers.

RECEIVING & INVENTORY CONTROL
● Only licensed marihuana products accepted, labeled, and logged in
state and internal systems.
● Immediate scanning of products into inventory upon receipt.
TRAINING
● Security personnel trained in intrusion, diversion, and theft prevention.
● Employees trained on sales, handling, and destruction of marihuana.
● Staff educated on identifying suspicious activity and notifying law
enforcement.

BUILDING & FIRE SAFETY
● The facility is compliant with all local and state building, health, and fire
codes.
● Certificate of occupancy obtained prior to operation.
● NFPA 1 (2021) and NFPA 90A compliance for fire and ductwork systems.

MARKETING, ADVERTISING, AND INFORMATION
SECURITY COMPLIANCE
Marketing and Advertising Compliance
House of Dank maintains strict adherence to Michigan Administrative Rule
420.206 and applicable local ordinances regarding advertising, promotion,
and public display.
● No pictures, photographs, drawings, symbols, images, or other
depictions of marihuana, the marihuana leaf, or marihuana
paraphernalia are displayed on the exterior of any licensed premises or
visible from outside the licensed property.
● No depictions of marihuana, marihuana paraphernalia, or the green
cross appear on any external signage, building walls, windows, or
advertising visible from public view.
● The company logo and all branding materials are neutral and do not
imply or reference marihuana use.
● All marketing and advertising materials are directed exclusively toward
adults aged 21 and over and are never designed to appeal to minors.
● The applicant will not use misleading, deceptive, or false advertising.

MINIMIZING MARKETING EXPOSURE TO MINORS
House of Dank is committed to responsible marihuana marketing practices
that reduce exposure to minors and align with the public health goals of
Michigan’s regulated system.
● Marketing is restricted to age-gated platforms and verified adult
audiences.
● Sponsorships, social media content, and promotional events exclude
youth-oriented audiences or venues.
● All content is reviewed internally for compliance with CRA and Federal
Trade Commission (FTC) advertising standards.
● The company prohibits the use of cartoon imagery, slang, or cultural
references commonly associated with youth audiences.

INFORMATION SECURITY AND DATA PROTECTION
House of Dank implements comprehensive cybersecurity and data protection
protocols to safeguard consumer, employee, and business information in
compliance with:
● Michigan Administrative Rule 420.206 (Security Measures for Marijuana
Establishments)
● Michigan Data Breach Notification Law (Act 452 of 2006)
● Michigan Identity Theft Protection Act
● Federal Trade Commission (FTC) cybersecurity and consumer
protection standards
● Industry frameworks: PCI-DSS for payment security and NIST SP 800-53
for system and access control
Key Measures Include:
● Encrypted storage of sensitive data and secure network infrastructure
with firewalls and endpoint protection.
● Access to confidential systems limited by role-based authentication and
multi-factor verification.
● Continuous monitoring and intrusion detection via Digital Watchdog
and IT audit logs.
● Incident response procedures for suspected breaches, including
required notifications to regulators and affected parties.
● Regular vendor and system audits to ensure compliance with federal
and state cybersecurity standards.