Tips for Navigating Regulations in the Cannabis Industry

Before you can break into the cannabis industry, there are a host of regulations that you need to understand. To be successful in all things cannabis, you must have a basic understanding of testing, processing, and cultivation. Regulations are constantly evolving and are accompanied by various legal frameworks based on location.

We broke down a few tips for navigating cannabis regulations based on the levels of legality to help get you started.

Local

Once you select the area in which you’ll establish your cannabis business, you need to seek permission to begin operations. The local municipality will ask you to adhere to a few things, including local taxes, community impact fees, operation fees, and other municipal ordinances. The establishment will also be subject to any code regulations and local zoning.

The process of securing a business license is quite extensive, so it’s also highly encouraged to build an excess of capital. Capital will cover the business’s licensure, operating fees, and future renewals and will contribute to a financial contingency plan. In addition to adhering to local regulations, you will need to comply with any state regulations that are in place.

State

Each state will follow its own set of processes for regulatory enforcement. Generally, a state will impose its policies following the federal policy changes and updates. Should a license receive approval at the state level, it will come with conditions regarding the location where the business can physically operate and other pertinent details about local regulations.

Federal

Before investing in your cannabis oil processing equipment, it’s vital to know that cannabis remains illegal federally. However, there are 33 states that have comprehensive approvals for medical marijuana programs in place. With that in mind, the production and cultivation of hemp in the US have a legal requirement of no more than 0.3 percent THC throughout the production chain.

A basic understanding of current regulations and a heightened awareness of constantly changing policies is essential for achieving and maintaining compliance. Navigating cannabis regulations can become a slippery slope without adhering to all levels of the legal system.