Cannabis businesses are facing a growing challenge: Compliance. So far, 9 U.S. states have legalized recreational marijuana and 29 U.S. states have legalized medical marijuana. As the cannabis industry continues to grow and mature, however, states are ratcheting up their oversight and expectations, and there is an increasing need for consistency in regard to the quality of the product and the operations that surround it.
Change is not only coming, it’s already here. In case you’ve missed some key highlights recently while celebrating 4/20, consider this:
Domestically in the United States, licensed cannabis business owners are working hard to deliver superior value to their customers while also maintaining compliance with state and local agencies. To say the least, the challenges facing these businesses can be both daunting and uncertain. Not only is there very little, if any, assistance for these companies, everyone is walking on egg shells to ensure their licenses are not revoked and they are not fined large sums of money.
Attorney General Jeff Sessions has rescinded the Obama-era position of the Federal government to not intervene in states that have legalized marijuana. Whether this ends up being a major, minor, or non-issue remains to be seen. This does, however, further encourage individual states and the owners/operators of canna-businesses to focus on compliance.
On January 1, California will begin issuing licenses allowing businesses to legally sell marijuana for recreational use. It is estimated that recreational marijuana sales will command about 60 percent of the state’s pot market — accounting for about $5 billion in annual sales. For anyone looking to step into the cultivation industry, this is a great opportunity. Here are a few key things an entrepreneur looking to operate in the cannabis industry should know about the new regulatory environment.