A Majority of Companies in Tightly-Regulated Industries Say Compliance is Biggest Barrier

Out of all the issues associated with the volatile nature of industries such as the cannabis industry—compliance is the top barrier, representatives from multiple companies said. As it turns out, sectors such as the healthcare industry face similar problems with compliance.

According to a new study announced by The Harris Poll and Fyllo on September 21, nearly two-thirds, or 63 percent of companies see compliance issues as a “critical barrier to growth.” Representatives from highly regulated industries were asked a series of questions in a survey—with a selective highlight on the cannabis industry in particular.

The study is entitled, “Leading With Compliance: The Key To Growth In Highly Regulated Industries.” Researchers surveyed 305 compliance leaders at companies in highly regulated industries including cannabis, healthcare, financial services, alcohol and pharmaceuticals.

The results revealed a common denominator: all of the highly-regulated industries struggle with a complex web of federal and local legislation and an outdated compliance approach—not just the cannabis industry.

“In the face of fast-paced regulatory demands, outdated processes can’t keep up and that derails growth,” said Chad Bronstein, CEO and founder of Fyllo. “This survey revealed that companies want to utilize technology to understand regulatory updates, whether new laws or even just local legislative conversations.” Fyllo offers software to overcome the complexities of compliance. Fyllo’s Data Marketplace, for instance, can target previously inaccessible cannabis and CBD consumers.

Nearly 50 percent said noncompliance results in higher costs to attract new investors and win new customers. Eighty-two percent report that adhering to regulations drains resources that would otherwise drive expansion into new markets, new products/services and innovation.

Twenty-five percent said problems led to a loss of customers; 20 percent said it led to employee turnover. Seventy-three precent of companies say compliance issues damage trust among consumers, regulators and employees.

Survey respondents also said that getting fined for noncompliance is practically unavoidable—just something they have to learn to deal with.

Over three-quarters, or 82 percent of companies in highly regulated industries currently accept that compliance is a cost of doing business, over the past five years, these companies have been cited on average 12.6 times for noncompliance. 

This results in extensive operational, reputational and financial risks. Moreover, the majority of compliance leaders admit that they are often uncertain as to whether or not that the organization is compliant due the dynamic nature of the regulatory environment.

Constant changes in laws is getting to be the norm, but most companies said they can handle it, albeit the technological problems that make it more difficult.

When asked if their company could adapt quickly to sudden changes in its regulatory or compliance environment, 61 percent said they did not believe their company could, with 28 percent citing outdated technology as the core cause for those problems.

Compliance in the Cannabis Industry

Depending on how you define regulation and if you include nuclear industries, etc., cannabis remains one of the most-regulated industries in the U.S. However, IBIS World ranks the healthcare industry as the most regulated industry of all, which of course overlaps with medical cannabis.

The discord between state and federal law makes the cannabis industry unique in the sense that laws often contradict one another more than you’d see in other industries. It would require a figurative PhD of regulation just to understand the full scope of the patchwork of state cannabis laws.

“Cannabis professionals are operating in a regulatory environment that changes daily across federal, state and local levels,” Bronstein added. “As such, cannabis businesses have been quick to embrace tech solutions that streamline compliance processes to free up resources for growth, with the industry becoming the benchmark for effective management of compliance processes at scale.”

Noncompliance in the hemp industry, for instance, is a problem. New Frontier Data reported that over 4,000 acres of crops were destroyed in 2019 (out of the 242,565 acres that were planted) because they were considered to be “hot crops” that surpassed the THC limit. Although crops in 2020 decreased, hot crops still increased, which led to an even more devastating year with 6,234 labeled as hot.

Cannabis and hemp laws are constantly changing at a rapid pace, much faster than you see in other established sectors such as traditional healthcare.

The post A Majority of Companies in Tightly-Regulated Industries Say Compliance is Biggest Barrier appeared first on High Times.

Tuesday, January 19, 2021 Headlines | Marijuana Today Daily News

Marijuana Today Daily Headlines
Tuesday, January 19, 2021 | Curated by host Shea Gunther

// Biden Taps Marijuana Legalization Supporter To Lead Democratic National Committee (Marijuana Moment)

// New York Governor Releases More Details On Marijuana Legalization Proposal (Marijuana Moment)

// Feds To Send Marijuana And Hemp Samples To Labs As Part Of Large-Scale Testing Accuracy Study (New Cannabis Ventures)


These headlines are brought to you by Atlantic Farms, a Maine-based multistate cannabis business with operations in Maine and Massachusetts. Atlantic Farms is looking for people to help it grow and evolve as investors. Open up TheAtlanticFarms.com for more on the company and email info@theatlanticfarms.com to learn about investment opportunities.


// Feds To Send Marijuana And Hemp Samples To Labs As Part Of Large-Scale Testing Accuracy Study (Marijuana Moment)

// Cannabis MSO Cresco prices Canadian share offering to raise $125 million (Marijuana Business Daily)

// Village Farms Raises $135 Million (Green Market Report)

// Washington state forms compliance group to assist marijuana businesses (Marijuana Business Daily)

// Akerna Reveals Top 5 Cannabis Sales Days of 2020 (Cision PR Newswire)

// Local Massachusetts Lawmakers Unanimously Approve Psychedelics Decriminalization Measure (Marijuana Moment)

// USDA Releases Final Rule For Hemp Two Years After Crop Was Federally Legalized (Marijuana Moment)

Check out our other projects:Marijuana Today— Our flagship title, a weekly podcast examining the world of marijuana business and activism with some of the smartest people in the industry and movement. • Marijuana Media Connect— A service that connects industry insiders in the legal marijuana industry with journalists, bloggers, and writers in need of expert sources for their stories.

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Photo: Third Way Think Tank/Flickr

Who’s Still Standing in the Cannabis Industry?

When I look back to the beginning of the 2010s, to where the emerging world of cannabis stood ten years ago, it’s clear that we lived and worked in a whole other scene back then. In 2010, California’s Proposition 19 (also known as the Regulate, Control & Tax Cannabis Act) was an initiative on the November ballot, but it was narrowly defeated. Even though Proposition 215 — permitting the use of medical cannabis — was passed years earlier in November 1996, the citizens of the state were still not yet ready to go all the way. It took several more years to further break down the stigmas around cannabis, and we still have a long way to go.

Here in Mendocino County, I began growing cannabis for medical uses in full sun as soon as I could, with my partner Swami Chaitanya. In those days, we’d gather several scripts from various patients and grow a few pounds for each of them. I must admit that often the patient was not the only one to consume our flower, but they always got their fair share in return for the script. We were very much in the grey area of legality. But considering we’d all been complete outlaws before, this was a huge step.

It was in 2014 when the first cannabis political organizations began to form in various California counties. Slowly, farmers were willing to come off their remote mountain ranches and began to speak up, knowing that if we did not help shape the future of legal cannabis in our state, there would be no future for us in it.

It was a bold step when we formed the Mendocino Cannabis Policy Council that year. Meetings were held at least once a month, often at the local grange or at AREA 101 in Laytonville (home of The Emerald Cup). None of us were very good at setting up official organizations, so plenty of time was spent figuring out simply how to write a mission statement and create by-laws. We spoke about marketing our county’s fine cannabis, talked about influencing our conservative Board of Supervisors and shared growing and sales techniques. Plus, there was always news and gossip about who got busted recently and the price of weed on the illicit market.

In retrospect, I realize that very few of those farms that were involved back then are still in the business. As the harsh reality of coming into compliance became more evident and people saw the full costs it would entail, many began to back off, either retreating to the “traditional market” as we call it now, or quitting altogether. Growing cannabis has always been a transitional business, but this was different. Many of the original growers, the real “OGs”, were packing up and leaving, while upstarts were entering the scene with glorious dreams of easy fortune.

We welcomed one and all, although at times we felt a twinge of jealousy over the farms that had enough financial backing to make a big impact. Once brands came into being, many of the big guys who drove the giant pick-ups and lived high on the hog pushed their way in, as if to prove they had it all wrapped up. Others showed up from all corners of the globe, ready to take on huge investments and be winners in the cannabis game. Enormous numbers were tossed around with ease, and many thought they’d strike it rich in the Green Rush.

Taking the long view at the close of this tumultuous decade, the picture is coming into focus. Several of those big players, who took in massive investments based on convertible notes, are facing insurmountable debts they cannot repay. They may have built recognized brands, but without enough licensed stores to sell their products and exorbitant taxes that keep many consumers going to their dealer down the street, they are at a loss. Suddenly the pipe dreams of fame and fortune are literally going up in smoke.

So who remains in the game at this point? It is at the big cannabis events where the shift becomes most evident. Sadly, we see very few actual farmers anymore at industry events like the Hall of Flowers or cannabis festivals like the Emerald Cup, and forget about finding a farmer at MJBiz. Mostly the companies present are large corporations who can afford to spend $100,000 for a slick booth and the staff to work it. No longer does a customer get to meet the farmer in person, smoke a joint and hear stories about growing weed. Now it is all about the sales pitch and the glitzy packaging, not much different than if they were selling cosmetics or packaged foods. The personal touch is gone and has been replaced by classic consumerism.

I am happy to report that there remain a few small cannabis brands, such as Om Edibles and our Swami Select, who have survived because we have stuck to old-fashioned farming and production methods and, just as we grow our crop with organic methods, we do the same with our businesses. We continue to live simple lives, truly caring about the quality of our product and getting it into the hands of those who will truly appreciate and benefit from it. We may not be able to afford a fancy booth at an event, but we are there in person to share our authentic stories of the past and our dreams for the future.

We will continue to advocate to change unworkable policies, so that the day of full legalization will come and its benefits will be widely shared. The 2010s was a decade of making a new mold, and for some, breaking the old one. For the brands that carry on with integrity and faith, there remains hope. Not to say that only the small companies are good — there certainly are some large brands which are doing it right. But time is bound to sort out the greedy ones who only saw the money from those of us who truly have a passion for the plant and its magical products.

As we head into this new decade, we pray for peace and understanding to blossom, so that our planet may survive. We have learned a huge lesson over the past 10 years and feel ready to enter 2020 with great hope for advancement on many levels. It won’t be easy, but it’s bound to be interesting and a challenge well worth the effort if it brings pure cannabis to those who need it. That is our mission after all.

TELL US, do you feel pushed out of the cannabis industry?

The post Who’s Still Standing in the Cannabis Industry? appeared first on Cannabis Now.

Thursday, November 7, 2019 Headlines | Marijuana Today Daily News

Marijuana Today Daily Headlines
Thursday, November 7, 2019 | Curated by host Shea Gunther

// Nearly 400 California marijuana business licenses suspended injecting fresh uncertainty into state’s cannabis industry (Marijuana Business Daily)

// Marijuana Use Tied To Lower Rates Of Depression And Suicidal Ideation Among PTSD Patients (Marijuana Moment)

// What Tuesday’s Elections Mean For State And Local Marijuana Reform (Marijuana Moment)


These headlines are brought to you by our new weekly podcast Weed Wonks, hosted by our friends Jordan Wellington and Andrew Livingston, who dive into different wonky topics in legal marijuana legislation, regulation, and lobbying. You can listen and subscribe to the Weed Wonks at WeedWonks.com.


// New incubator to help owners of color crack into white-dominated cannabis industry in Illinois (Chicago Sun Times)

// Ontario to allow cannabis retailers to sell online and over the phone (Vancouver Sun)

// Scotts-MiracleGro Sees 38% Growth in Hawthorne Business in Q4 (New Cannabis Ventures)

// New York State Regulators File Amendment To Allow CBD Hemp Products In Medical Marijuana Program (Marijuana Moment)

// Former Red Sox pitcher Bill Lee made the first purchase at a Massachusetts marijuana dispensary opening (Boston.com)

// Americans Think Weed Is Much Safer Than E-Cigs or Tobacco, Poll Finds (Merry Jane)

// Oklahoma Frees Hundreds of Minor Drug Offenders From Jail (Merry Jane)


Check out our other projects:
Marijuana Today— Our flagship title, a weekly podcast examining the world of marijuana business and activism with some of the smartest people in the industry and movement.
Marijuana Media Connect— A service that connects industry insiders in the legal marijuana industry with journalists, bloggers, and writers in need of expert sources for their stories.

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Photo: Doug Kerr/Flickr

Tuesday, August 13, 2019 Headlines | Marijuana Today Daily News

Marijuana Today Daily Headlines
Tuesday, August 13, 2019 | Curated by host Shea Gunther

// CannTrust sinks as Health Canada finds second facility non-compliant (BNN Bloomberg)

// Key Congressional Chairman Sends Marijuana Email To NORML Activists (Forbes)

// Legal Cannabis Mellowed Outside Lands Megafestival (Leafly)


These headlines are brought to you by Curaleaf, one of the leading vertically-integrated cannabis operators in the U.S. With legal medical marijuana dispensaries, cultivation sites, and processing facilities all over the United States, Curaleaf has served more than 150,000 medical cannabis patients and looks forward to helping many more long into the future. Swing over to Curaleaf.com to learn more about this very cool company!


// Pritzker signs two bills expanding medical cannabis program (25 News NBC)

// New Mexico closer to capping medical marijuana cultivation (Marijuana Business Daily)

// Scent of unburnt marijuana exclusively is not grounds to search warehouse, SJC rules (Boston Globe)

// Top Senate Democrat Calls On Federal Regulators To Clarify Hemp Banking Rules (Marijuana Moment)

// Health Canada Isn’t Too Worried About Canadian Producers on Snapchat (Leafly)

// First recreational marijuana store opens off Massachusetts mainland (Marijuana Business Daily)

// How the Dutch Spread Cannabis Across the World (Leafly)


Check out our other projects:
Marijuana Today— Our flagship title, a weekly podcast examining the world of marijuana business and activism with some of the smartest people in the industry and movement.
Marijuana Media Connect— A service that connects industry insiders in the legal marijuana industry with journalists, bloggers, and writers in need of expert sources for their stories.

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Photo: Claudio Toledo/Flickr

Friday, July 19, 2019 Headlines | Marijuana Today Daily News

Marijuana Today Daily Headlines
Friday, July 19, 2019 | Curated by host Shea Gunther

// Washington state offers up cannabis traceability ‘workaround’ in wake of software release problems (Marijuana Business Daily)

// Oklahoma medical cannabis businesses prepare for ‘necessary’ rules that will up compliance costs (Marijuana Business Daily)

// Michigan cuts marijuana licensing fees in 19 cities impacted by drug war (Crain’s Detroit Business (AP))


Today’s headlines are brought to you by our friends over at Eaze.com, California’s top one stop website for legal marijuana delivery. If you live in the golden state, swing over to Eaze.com to see if they are active in your area. With deliveries taking place in less than an hour, it’s never been easier to get legal California marijuana delivery. And of course, if you don’t live where Eaze delivers, you can still benefit from all the useful bits of industry insight and analysis they’ve developed using their properly aggregate and anonymized sales data stream.


// More Than 100 Marijuana Businesses Urge Congress To Include Social Equity In Legalization (Marijuana Moment)

// Boston’s first recreational marijuana store receives preliminary license, could open within months (Boston Globe)

// Imports of medical marijuana into Germany surge in second quarter (Marijuana Business Daily)

// Texas leaders: Hemp law did not decriminalize marijuana (Texas Tribune)

// Fight Over HUD Housing Eviction Over Medical Pot Tossed (Courthouse News)

// Who’s really behind Toronto’s chain of illegal pot shops that won’t quit? (CBC News)

// Homeland Security Chief Won’t Say Whether Families Should Be Separated Over Marijuana (Marijuana Moment)


Check out our other projects:
Marijuana Today— Our flagship title, a weekly podcast examining the world of marijuana business and activism with some of the smartest people in the industry and movement.
Marijuana Media Connect— A service that connects industry insiders in the legal marijuana industry with journalists, bloggers, and writers in need of expert sources for their stories.

Love these headlines? Love our podcast? Support our work with a financial contribution and become a patron.

Photo: Brian Shamblen/Flickr