Current Top 5 Cannabis Laws You Must Know

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Current Top 5 Cannabis Laws You Must Know

As the Cannabis industry continues to grow rapidly, so are the laws that regulate it. Here are your current top 5 cannabis laws you must know to operate a cannabis business and how you can avoid any roadblocks you may face.

1.) You Must Have A License To Operate!

When a potential client calls in, they usually think of visiting the grow sites, extraction facilities, and retail locations we are currently working in is the first step. While this is an exciting few days for most people as they learn how and why Colorado leads the cannabis industry in many ways, without a license to operate in your state, having your own cannabis company is just a pipe dream. Reach out to a consultant that can prove they’ve won licenses in strict, competitive states and discuss the steps needed to obtain your license to operate.


2.) Owning Property In The Right Places

You must own, have a lease or an option to purchase or lease a property that has been approved by the overseeing department in your state. We see clients who might own property, but it’s in the wrong location. Their political connections and previous business experience sometimes make them overconfident about getting a property re-zoned in time to apply to grow cannabis in that location. We’ve also been amazed to see this happen quickly with clients. However, it’s sometimes easier to work with a cannabis specific real estate agent to identify the approved properties and start the negotiations to control the property.

3.) Having The Funds To Operate

As part of the approval process for granting your license to operate, you are required to have adequate funding in most states. With the exception of Massachusetts, the other 15 states that we are currently assisting clients in making it mandatory that you show proof of funds. Pennsylvania recently required the least amount of verification via a simple affidavit, however, misrepresenting that you have the funds thinking you’re going to find them after you’ve won the license is a violation and could result in your application being denied by the department of health.

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4.) Know The Plan And Execute It

You must walk the operational walk, not just talk when it comes down to being awarded the license. The real work begins once you’re through the application process and after you’ve been granted the license to operate. We observe that clients are sometimes surprised at the resources needed to adequately manage odor mitigation, security and surveillance, marijuana disposal management, and diversion prevention plans. Up until this point, the plans were just theory.

5.) Trust The Process

Compliance laws are fluid. The department is faced with the daunting task of adjusting and trying to keep up with a fast-growing, ever-changing cannabis industry. This can be frustrating, but the department intends to keep the consumers safe from harmful products, the communities safe from a flood of illegal products onto the streets, as well as making sure cannabis companies don’t harm the environment or strain the local resources. We experienced all of these growing pains in the state of Colorado, and we find each state follows a path of compliance and a regulatory environment we are comfortable helping our clients navigate. There is no substitute for the experience of cutting our teeth in the heavily regulated Colorado market. This approach keeps our clients in business and a steady increase of market share for those who commit to long-term success by following all of the rules.

trust the process

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