What to Consider

WORKING THROUGH THE MAZE OF CANNABIS COMPLIANCE AND BUSINESS ISSUES

• In  addition to the maze of laws and regulations, it is important to take a  look and map out all aspects of creating a successful & compliant  endeavor.

Suggested Steps:

1. Determine  goals: How big or small do you want to be, both in terms of quantity of  cannabis or cannabis product you are producing, and in terms of the  size of the business you ultimately want to run. Do you have the  capacity?
2. Evaluate how  the Laws & Regulations, the Operational Issues, & the Market  Forces & ability to implement Best Practices might affect your  ability to achieve your desired level of production & operations.
3. Would  a short term, medium term and long term implementation plan be best or  is it better to “go for it” and try to achieve the maximum level of  participation desired all at once? Be realistic. Do you have the  capacity necessary? Do you have the funding? Is an economy of scale  better for you or should you start small and build up from there? Are  you willing to adhere to the requirements necessary for the level of  participation you envision for yourself? For example, if you don’t want  to have employees and undertake the requirements that come with that,  then keep it small and manageable to operate without employees.
4. Make  sure the initial steps and/or implementation of the short-term plans do  not inadvertently hinder your ability to accomplish the next steps or  later expansion. For example, is it better to obtain water storage  permits only for your initial needs or is it better to get permits for  more storage than you might need to begin with? How and when do you  properly dissolve a nonprofit corporation (Cooperative or Mutual Benefit  Corp. etc.) without violating the law?
5. Keep  in mind that some aspects of compliance are linear and are in  sequential order and other aspects of compliance are more messy and  complicated, especially since not all of the information necessary to  make a good cost-benefit analysis is available yet (we still don’t know  all of the exact fees or the particulars of certain requirements such as  the track and trace programs, etc.).

Stay educated and make wise use of professional services:

Professionals  (Attorneys, Accountants, Bookkeepers, Environmental Evaluators,  Consultants and Contractors) are all potentially very helpful and may  even be necessary in some situations. You can keep costs down and make  the best decisions about which professionals you may need if you educate  yourself about the rules and be sure to pick professionals who are  willing to explain the step by step processes and allow you to  participate to the extent feasible. Also, be sure to understand WHAT  professional is and is not capable of. Try to have a clear scope of work  and expectations. If you hire an environmental consultant who is not a  certified third party with the NCRWQCB, that may work out great, but  they may not be able to submit as the third party on your behalf  (something that is not necessary but may be desirable to you). At the  same time, they may have the ability to evaluate a broader range of  environmental issues and be able to assist you with aspects of process  that a consultant who is a certified 3rd party with the NCRWQCB may not  consider as a part of their scope of work. There are also some  consultants who are certified with voluntary standards instead of  required standards. All may be very helpful and desirable, but just make  sure you understand the differences so you know what they can and will  do for you. Likewise, some attorneys deal with both the legal and the  logistical implementation, others do not. Some accountants are also  bookkeepers and some are not. Many professionals are full service and  are willing to coordinate with other professionals either that they  provide or that you choose, just be clear about the scope of work.