The cannabis industry has grown exponentially in recent years. That growth results from many states in the U.S. legalizing the use of recreational marijuana. But most importantly, financing from venture capital firms is responsible for this growth.
Many start-ups emerge to profit from this growing industry as some private companies sell their shares to the public. You’ll need your cannabis business to conform to federal, state, and municipal laws if you also want to tap into this industry.
Cannabis Law Solutions law firms can get you set up for business. These law firms will apply for a license on behalf of your business and ensure you operate within the bounds of law. Read on to find the laws controlling cannabis businesses.
Cannabis Business Federal Regulations
The Congress has made federal laws regulating cannabis businesses. Before setting up a business, you want to know the federal laws. Law firms specializing in Cannabis Law Solutions can help you understand these laws:
Marijuana Opportunity Reinvestment and Expungement
As more states in the U.S. continue to legalize cannabis for recreational and medical purposes, Congress removes cannabis from a list of controlled substances. As a result, cannabis ceases to become an illicit drug, and businesses can sell it under supervision.
States Reform Regulations of 2023
This law provides oversight of cannabis businesses, ensuring your business provides a legal market for recreational cannabis. The regulation also recognizes that many states have legalized cannabis and that people who previously had cannabis arrest histories have those records erased.
Cannabis Business State Regulations
The federal government still perceives cannabis as illegal, although it recognizes various states don’t share the opinion. What’s more, 29 states have legalized cannabis and have frameworks to control the cannabis industry:
Cannabis Licensing and Regulation
Before you start a cannabis business, you’ll apply for a license. While you can do it, the success of applying for a license increases if you consult Cannabis Law Solutions. Besides the license controlling the sale, it controls cannabis cultivation and processing.
Each state has regulatory boards to ensure cannabis is safe at all stages. The board checks if your business is compliant and enforces decisions accordingly.
Cannabis Products Taxation
Since the government taxes consumer products, it does the same for cannabis products. The state can impose a tax as a percentage of the retail price. You want to remit the tax to comply with the regulations at the state level.
Restrictions on Advertising
States restrict businesses on advertisements to protect minors from using cannabis products. Also, the state doesn’t want you to claim false health benefits derived from your cannabis products. You may also want to set up your business away from schools and public spaces.
Cannabis Regulations at the Municipal Level
The municipality can also control your cannabis establishment. Usually, it creates equitable cannabis policies. But it can also control the number of cannabis establishments you can have in one municipality. You also want to know the municipal regulations before starting a business.
Conclusion
The cannabis industry is growing rapidly as more states continue to legalize cannabis. What’s more, the industry receives financing from venture capital firms, making cannabis a profitable substance. Businesses and start-ups emerge to tap into the industry. If you want a share of the profits generated, you’ll ensure your business complies with federal, state, and municipal regulations.
