As most know, because cannabis remains illegal under U.S. law, the regulatory regime overseeing the multibillion-dollar industry is a patchwork of state-by-state laws and regulations. In practice, this has left each state to develop, implement, and enforce its own unique regulatory apparatus to ensure that products are safe and not diverted to the black market, purchases are limited and allowed, taxes are collected, and laws are followed precisely.
Working well with regulators is critical to the success of any cannabis business. Below are three tips to keep in mind to build positive and productive regulator relationships.
Within the cannabis industry in states where it is legalized in some form, there are regulators that craft the rules and those that enforce them. Legislatures draft and pass laws that enable the cannabis industry to take root. The executive branch, including the governor’s office, health department, and cannabis-specific commissions, then issue and enforce the rules that flow from the laws. If those rules are not followed, law enforcement and oversight regulators get involved and cannabis businesses find themselves in trouble.
The commissions that develop and implement a state’s regulatory framework want to create a system that is efficient and safe. Cannabis businesses have an opportunity to serve as a resource to these commissions and help shape their state’s rules. Growers, processers, and retailers should take the time and initiative to engage with regulators on the issues that impede their businesses. Difficulties that emanate from complex rules are frequently the result of misunderstandings or lack of awareness of how businesses operate on a day-to-day basis. When presented with the facts at the ground level, regulators can explore whether there are industry-wide patterns and amend the rules or ask the legislature to pass new laws or amendments to fix them.
Read more at forbes.com
