by Haris Quintana
It’s hard to say what a time traveler from the 1980s (or before) would think if they landed in modern-day America and what they would comment on first. It might be the fact that many of us now have robot vacuum cleaners that we can control with our voices, sure. But for others, the surprise may be the way in which people, including elected officials, talk about cannabis and the various forms of this leaf.
So much have things changed that now it is possible for US citizens, depending on their state of residence, to both buy cannabis from reputable dispensaries (https://www.canadacannabisdispensary.ca/product-category/microdose/) or even grow cannabis. To sell it (licence permitting) and to use it, for medical or in some cases recreational reasons. However, given the differences between federal and state law, between different types of cannabis, and between recreational, medical and commercial permissions, it is easy to see how matters can become confused.
Therefore, if you are looking at the growing field of business opportunities within the “cannabiz”, it is worth knowing exactly how you want to pursue those opportunities, and essential to know how the law might affect your efforts before you start cultivating that mac 10 strain.
What does the US Federal law say on cannabis?
Technically, under federal law, cannabis use is illegal, period. That’s the bad news, but the good news is that an amendment passed in 2014 prohibits the federal prosecution of individuals who are complying with state medicinal use laws. Indeed, federal law enforcement will not get involved in prosecuting individuals who are complying with state law in general, unless there is deemed to be an overarching reason, such as the proceeds of cannabis sales being used to fund other unlawful activity.
Nonetheless, it is a wise idea to engage legal advice before you begin to grow cannabis, particularly if you plan to open a dispensary or any such business profiting from the sale of cannabis or products derived from it. If you intend to look into buying up cannabis real estate to widen your growing operation, then you’ll need to speak with a lawyer in the jurisdiction where you plan to purchase property. State laws on cultivation vary considerably; something that is legal in Illinois may be completely forbidden in neighboring Indiana.
What are the laws in my state?
Adding to the complication of differing between state and federal law, there is little pattern to the states which will allow growing and those which won’t. As we noted above, there are states with relatively light-touch regulation of growth, use and sale which directly border states where all cannabis is illegal. Colorado was one of the first states to loosen its laws and then make it fully legal, however its neighbor to the North, Wyoming, has a complete blanket ban on possession and use.
It is helpful to refer to online resources which differentiate between state laws, but also to remember that laws can change. A referendum held at any time can greenlight a relaxation of the law or a tightening, and so you should always be following the latest news. You should also remember that in some cases, state law gives way to municipal legislation; for example while the state of Georgia prohibits cannabis use, the city of Atlanta has decriminalized it. The location of your business can place you in a specific jurisdiction, and the difference can be a matter of yards between state and municipal law - so accuracy matters.
Do I need a licence to sell what I grow?
If your reason for growing cannabis is to sell it, then you will need to seek out a commercial licence. Again, the requirements for this and any fee you need to pay will depend on the jurisdiction in which you are operating, as will the question of who you need to contact to begin the application process. Different cities will have different departments handling the licensing of businesses to both grow and sell cannabis. One handy tip may be to contact a cannabis business-aware lawyer who is local to your intended business premises - they’ll know the lay of the land and will have been through this process multiple times.
The cannabis business is a relatively new, and fast-growing commercial sector, and while that is exciting for people with an interest in the field, it also poses challenges. The law governing who can sell what, where and when is tricky to keep up with, so it will benefit you to get up to speed before you even begin to grow.