The Impossible Patchwork: Regulatory Changes & The Tools You Need To Succeed
Are you a licensed cannabis business owner or an employee struggling to stay abreast of the continuous tide of cannabis industry news and regulatory changes? Are you an ancillary cannabis industry member or cannabis technology provider striving to clearly communicate the latest, most relevant cannabis industry updates to your clients? Maybe you’re an entrepreneur and/or legacy operator determined to break into the mainstream cannabis industry and don’t want to miss important licensing opportunities in your region as they arise.
In the absence of federal regulation, the cannabis industry as we know it today operates as an impossible patchwork of regulatory changes. This industry has undergone seismic shifts as new states legalize cannabis and attempt to rapidly address the unintended consequences of rules and regulations.
We know you don’t have the time to scour the news, sign up for every local and state regulatory agencies’ newsletters, review regulators’ websites for updates, and communicate those updates to your team each week. However, a successful compliance officer must continuously scrutinize these changes to keep the operation safely in compliance.
This is exactly why RMCC’s compliance team does the time-consuming work for you in our monthly Compliance Digest.
Attorneys, compliance officers, cannabis business owners, and technology solutions benefit from a reliable source to stay in the loop without the extra fluff. What are the benefits of signing up for RMCC’s Monthly Compliance Digest you ask?
No More FOMO: Do you ever have that nagging sensation that you’re missing something important in the industry? Eliminate your fear of missing out on the important changes that will impact your business.
Provide the Best Advice to Your Clients: Worried you’re providing advice based on old rules and requirements? Sign up to ensure you can relay timely important regulatory updates to your clients.
Keep Your Compliance Department on the Right Track: Want to make sure your internal compliance documentation and your compliance team stay updated with the latest and greatest information from around the United States? Ensure regulators don’t surprise you with new rules and regulations at your next facility inspection or audit.
Make Sure Your Technology Solutions Account for New Regulations: Don’t let your cannabis clients be the ones to inform you of important changes after your technology solution has already landed them in trouble with regulators. Stay tuned in and maintain a trustworthy product for your cannabis clients.
What do you get if you sign up for RMCC’s monthly compliance digest?
The compliance digest includes regulatory changes and notable news from your state, your region, and across the country. Sign up to receive the updates you need from your region or the entirety of the United States.
Each monthly digest includes a video summarizing each of the changes in addition to a text version for you to share with your team, discuss with your clients, or find local jurisdictions in your area offering new licensing opportunities.
Let’s explore a few large-scale regulatory changes and try to put ourselves in the shoes of operators at the time.
If you were in the following states at the time of these changes but were totally unaware of them, you likely found yourself behind your competitors and scrambling to catch up:
Colorado's Marijuana Inventory Tracking System (MITS) implementation: In December 2013, the Marijuana Enforcement Division (MED) gave licensees a 30-day notice of the adoption of MITS, which later evolved into Metrc, leaving businesses all over the state scrambling to tag their plants and implement operational workflows that could support the necessary data collection in preparation of the rollout.
Washington's medical testing requirement implementation: The State of Washington’s Liquor and Cannabis Board (WSLCB) implemented testing requirements for medical cannabis and cannabis products after decades of fostering a largely unregulated medical cannabis environment. With medical patients and caregivers working under minimal restrictions and no testing requirements, the state's medical industry was rocked when the state adopted permanent rules for required pesticide testing in 2017 and heavy metals testing in 2018.
Oregon's suspension of processing license applications received after June 15, 2018: As a result of the Oregon Liquor and Cannabis Commission’s (OLCC) failure to put in place limits on licenses, residency requirements, and maintaining low application and licensing fees, combined with lower than expected demand, Oregon saw a dramatic oversupply in their adult-use cannabis industry. As a result, the OLCC froze the processing of license applications received after June 15th, 2018. This freeze expires in January, 2022.
Los Angeles Department of Cannabis Regulations' acceptance of new license application: On October 1, 2021, the Department of Cannabis Regulation (DCR) began accepting new applications for delivery, distribution, manufacturing, cultivation, and testing license types in the City of Los Angeles.
City of Denver's acceptance of new social equity applicant licensing permits: The City of Denver recently began accepting applications from social equity applicants for new recreational cannabis licenses in a recent major regulatory overhaul. The city has not opened up such opportunities for cannabis entrepreneurs since 2016.
Michigan’s move from separate medical and adult-use regulations to combined, topic-based regulations: Last summer, the Marijuana Regulatory Agency (MRA) combined rules and regulations for medical and adult-use cannabis operations and separated the regulations into 10 topic-based administrative rule sets. The MRA set about updating all of the FAQs, bulletins, forms, and instructions. Operators were left with not only completely unrecognizable rules and regulations, but also an entirely revamped website and all new compliance resources.
New York’s recent regulatory body formation and the Mohawk Tribal government beating the state government to legalization: New York Gov. Kathy Hochul announced her final two appointees to the Cannabis Control Board of the Office of Cannabis Management (OCM) to regulate the state’s adult-use marijuana market—a key step toward implementing the legalization law signed by her predecessor. Meanwhile, The Saint Regis Mohawk Tribe stands to beat non-Indian competitors to the market by about a year.
New Jersey’s recent publication of rules and regulations kicking-off the exciting new industry in the northeastern region: New Jersey’s Cannabis Regulatory Commission (CRC) approved rules to set up the recreational marijuana marketplace, giving application priority to women-, minority- and disabled veteran-owned businesses and paving the way for sales to begin. The five-member commission voted unanimously to approve the 160-pages of regulations. The rules got expedited treatment under the law, sidestepping the usual public comment and response period.
Oklahoma’s attempt to implement seed-to-sale tracking mired in delays and lawsuits: In April of 2021, the Oklahoma Medical Marijuana Authority’s (OMMA) attempts to make good on the promises of House Bill 2612 by implementing a state-wide mandatory seed-to-sale tracking system, putting them in line with most other legalized states in the country, were thwarted by lawsuits making claims of “backdoor rulemaking” and associating the cost to business with taxes and fees that were never approved by the legislature. Meanwhile, cannabis businesses invested labor costs and engaged with implementation experts to ensure they were ready ahead of the implementation deadline.
What is the shared moral of all of the above stories? What would’ve happened if you missed these notifications? If you’re a cannabis operator, you would have left your entire business at risk of fines, penalties, or even license revocation. If you’re a cannabis entrepreneur or legacy operator looking to enter the mainstream cannabis industry, you could’ve missed your shot altogether to enter this lucrative new industry. What if you were a technology solution or ancillary service provider? You could’ve given your clients advice that would not only be incorrect but detrimental to their business.
Don’t let your fear of missing out (FOMO) paralyze you and put your business at risk.
Don’t let the anxiety of trying to start a business in a constantly shifting patchwork of rules and regulations stop you from realizing your dreams. Sign up today for RMCC’s monthly compliance digest and sleep easy knowing you won’t miss out on any opportunities or fail to adapt to changing regulations.
Never forget that from the perspective of the regulating bodies, ignorance of the law excuses no one. If you break the law, you're liable for the consequences of that action even if you had no knowledge of the law being broken. But you're not alone; RMCC has your back. Knowledge is power so sign up today!