The cannabis industry is booming, but it’s not without its challenges. One of the biggest challenges many cannabis companies face is maintaining compliance with the laws and regulations governing cannabis use.
As a business owner, it is essential to know how to be compliant with the cannabis laws of your state. This includes knowing the different levels of compliance, learning new cannabis trends and understanding the legal requirements for each level.
Some people may have a misconception that all cannabis businesses are legal.
This is not true, as many states have strict regulations on selling and distributing cannabis products. Therefore, the first step to ensuring your business is on the right side of the law is to conduct due diligence on your state’s regulations and laws before opening up shop.
Cannabis Compliance is highly regulated, and the fines for not following regulations can be very costly. In addition, punishment for selling to underage people can include jail time.
So,here are 4 tips to be compliant before you open your cannabis business
- Keep your records, licenses, books, and permits up to date
Make sure you apply and get your licenses and permits from the government. After getting approved for all the necessary licenses, stay on top of scheduling your renewals. Some licenses are due for renewal, but do some homework and figure out when.
Your state or local jurisdiction can check in to ensure you follow the rules. Make sure you have these documents available in case they show up unexpectedly.
2.Test and label your products correctly
If you’re in the business of growing, manufacturing, or selling your product, aside from buying a license before doing so, you also need to send it to an authorized lab for testing. This will ensure that your company’s products are safe; pure and that they meet legitimate standards.
If you are buying from a vendor and selling their products,always remember to document their previous testing methods so that you can add them to the labels. All labels for marijuana products must contain the percentage of THC (tetrahydrocannabinol) though the testing methods vary significantly from state to state. If you are unsure about this, hire a good cannabis co-packaging company to help you with your packaging needs.
3.Internal Financial audits must be conducted
By carrying out regular internal audits, you can ensure that you stay ahead of regulatory deadlines and avoid costly penalties. Maintain records, and create a checklist of your audit guidelines to ensure all of your transactions are covered by the law and have proof for you to review. This makes you ready for external audits when the time comes.
- Document all processes and steps
An essential part of ensuring compliance is a standard procedure being put into place for key processes at your company. Those processes are the opening and closing procedures and disposal and waste management. SOP or Standard Operating Procedure can help you describe your processes and track them over time. This is one of the vital steps to ensure you are compliant!
Being a cannabis-compliant company will allow you to stay profitable and stable even in the longterm.
Ensuring compliance is essential, but it also depends on having solid knowledge of the corporate requirements and a great regulatory program. Breaking the rules or not following proper policies can lead to a loss of profit and serious consequences, so you must speak with your legal and compliance teams regularly.
