Cannabis News
Quick Guide to Cannabis Business Opportunities
Published
8 months agoon
By
admin
Although cannabis remains illegal at the federal level, many states and municipalities have loosened their regulations. As of early 2023, 37 states have approved medical cannabis use by qualified individuals, and 21 states have approved it for recreational use.
As a result, the cannabis industry is growing at breakneck speed, especially when it comes to refined cannabis products. The edible market alone is projected to grow by $25.27 billion from 2020 to 2025 at a CAGR of 21.74%.
While this kind of growth is promising, entrepreneurs looking to take advantage of these cannabis industry opportunities must be aware of their legal responsibilities before getting started.
Business Opportunities in the Cannabis Industry
There are two main categories of cannabis businesses — plant-touching and ancillary. The legal requirements for each type are different, so it’s essential to research the laws around the company you want to start.
Plant-Touching Businesses
As the name implies, plant-touching cannabis businesses deal directly with the cannabis plant from seed to dispensary shelf. All plant-touching businesses must apply for a license to operate legally, and the licensing requirements can vary by region.
Some examples of plant-touching businesses include:
- Cultivation and breeding: Cultivators and breeders are essential parts of the industry. Note that licensing requirements for growing industrial hemp, which doesn’t contain significant concentrations of THC, are different from licensing requirements for THC-containing cannabis plants.
- Edibles: Many people prefer to eat or drink their cannabis, which is why edible manufacturing is such a promising business opportunity. Bakeries, candy companies and beverage manufacturers can get in on the trend in states where adult-use cannabis is legal.
- CBD cosmetics: Cannabis-infused skincare is a sector that currently has a market size of $414 million and is expected to grow rapidly in the coming years. For states where recreational use is still illegal, industrial hemp is a suitable substitute.
- Dispensaries: Dispensaries are the distribution hubs of the cannabis industry. Although each one has a different business model, they usually have a physical storefront where staff can assist customers in selecting products.
- Transportation and delivery: Every cannabis company needs to move its products throughout the supply chain, and third-party business-to-business transportation companies can turn a decent profit from this venture. Direct-to-consumer delivery is also legal in some states.
Depending on your state, you may need to obtain a license for each specific link in the supply chain, or you may need a general license.
Ancillary Businesses
Ancillary cannabis businesses include everything that doesn’t directly deal with the plant. Because you’re not dealing with the plant itself, you don’t need a license like you would for a plant-touching business.
Some promising ancillary cannabis business examples include:
- Cannabis accessories: You can produce or resell merchandise like bongs, pipes, apparel and other products to dispensaries or direct to consumers without a license.
- Digital marketing: Many states and social media companies have issued restrictions on the ways cannabis companies can advertise, which is why digital marketers are in such high demand in the industry. Experts in techniques like email marketing, SEO and content creation can be helpful for new companies.
- Consulting: Lots of people want to get into the industry, but few have the knowledge and expertise to be successful. That’s why consulting services can be incredibly helpful for aspiring cannabis entrepreneurs.
The Risks and Rewards of Starting a Cannabis Business
Some of the top risks involved with cannabis businesses include:
- Product liabilities: Although the industry is heavily regulated, cannabis is still an agricultural product. Just like with any other crop, cannabis growers and manufacturers must be careful to prevent issues like mold and bacteria growth from tainting their products.
- Supply chain: At the moment, cannabis companies can only transport products within their own states. Businesses are limited in their options for addressing product shortages and other supply chain issues.
- Financing: Because cannabis is still illegal at the federal level, most banks won’t provide loans to cannabis companies. Businesses need to secure funding through alternative means like angel investors and venture capitalists.
- Security: Due to its federal status, the cannabis industry is one of the few cash-only industries left in the United States. As a result, cannabis companies face an increased risk of theft.
For many, this risk is worth the reward due to the industry’s high potential for growth. Organizations that establish themselves now are likely to gain a competitive edge over later entrants.
Legal Considerations When Entering the Cannabis Industry
Here are some of the most important legal considerations you’ll need to make before starting your business.
Licensing
Before you can begin your business, you’ll need to get a license. Here are a few tips for finding licensing requirements in your state:
- Cultivating: Check with your state’s Department of Agriculture for more information about your area’s licensing requirements. If you want to grow industrial hemp, the U.S. Department of Agriculture website has additional resources for getting started.
- Manufacturing: Usually, you’ll need to obtain a manufacturing license to produce consumable products like cosmetics and edibles. These products must also comply with safety standards at the local and state levels. Checking your state’s Department of Health website is a good place to start.
- Dispensary: You must apply for a dispensary license from your state. However, different departments handle licensing in each state. Your state government’s website should help you determine which department you’ll need to apply to.
It’s important to note that some states limit the number of cannabis licenses available — this can bar many late applicants from obtaining the necessary license to start their businesses.
Vertical Integration
Some states require cannabis businesses to vertically integrate to keep companies out of the black market and keep consumer prices low. For example, Colorado’s former 70/30 Rule required cannabis retailers to grow at least 70% of their product.
Others ban vertical integration and mandate specialized licenses for each business. In these states, a dispensary can’t also operate a cultivation facility — this restriction is intended to prevent monopolies from forming so business remains fair.
Social Perception
Although it’s not a legal matter, the cannabis industry faces significant stigma due to long-held stereotypes. Regardless of whether someone uses cannabis for medicinal or recreational purposes, much of society still perceives them as lazy, unsuccessful and uneducated.
This stigma can make it more difficult to establish a reliable reputation in some states, which can harm your business potential.
Evolving Rules
Because the cannabis industry is still relatively new in most areas, legislation is constantly changing. Working with an experienced cannabis attorney can help business owners anticipate future changes so they can remain compliant with local and state laws.
What’s the Big Takeaway?
Ultimately, if you’re looking to break into the cannabis industry, you have plenty of opportunities. Staying up-to-date with evolving regulations will be critical, so seeking legal assistance can be invaluable for small businesses and entrepreneurs.
If you’re in the cannabis industry, we’d like to hear from you — what has your experience been like?
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Latest Trump Weed Rumor – Trump Will Federally Deschedule and Decriminalize Cannabis, but Not Legalize It
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November 14, 2024By
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In a recent interview, former New Jersey Governor Chris Christie made headlines by asserting that President-elect Donald Trump will pursue significant reforms in federal policies regarding marijuana and cryptocurrency. As the nation grapples with evolving attitudes toward cannabis and the burgeoning digital currency market, Christie’s predictions have ignited discussions about the potential implications of such changes on both industries. This article delves into Christie’s insights, the current state of marijuana and cryptocurrency regulations, and the broader implications of these anticipated reforms.
The Current Landscape of Marijuana Legislation
Federal vs. State Laws
Marijuana remains classified as a Schedule I substance under the Controlled Substances Act (CSA), which places it in the same category as heroin and LSD. This classification has created a complex legal landscape where states have moved to legalize cannabis for medical and recreational use, while federal law continues to impose strict prohibitions. As of now, over 30 states have legalized marijuana in some form, leading to a burgeoning industry that generates billions in revenue.
Challenges Faced by the Cannabis Industry
Despite its legality in many states, the cannabis industry faces significant hurdles due to federal restrictions. These challenges include:
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Banking Access: Many banks are hesitant to work with cannabis businesses due to fear of federal repercussions, forcing these businesses to operate largely in cash.
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Taxation Issues: The IRS enforces Section 280E of the tax code, which prohibits businesses engaged in illegal activities from deducting normal business expenses, leading to disproportionately high tax burdens for cannabis companies.
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Interstate Commerce: The lack of federal legalization prevents cannabis businesses from operating across state lines, limiting their growth potential.
Chris Christie’s Perspective on Marijuana Reform
Christie, a former presidential candidate known for his tough stance on drugs during his tenure as governor, has evolved his views on marijuana over the years. In his recent statements, he emphasized that Trump is likely to pursue descheduling cannabis, which would remove it from the Schedule I classification. This move would not only provide clarity for businesses operating in legal markets but also open avenues for banking and investment.
Christie highlighted that descheduling would allow for a more regulated market where safety standards could be established, thus protecting consumers. He believes that this approach aligns with a growing consensus among Americans who support legalization and recognize the potential benefits of cannabis use for both medical and recreational purposes.
The Future of Cryptocurrency Regulation = The Rise of Cryptocurrencies
Cryptocurrencies have surged in popularity over the past decade, with Bitcoin leading the charge as the first decentralized digital currency. The market has expanded to include thousands of alternative coins (altcoins), each with unique features and use cases. As cryptocurrencies gain traction among investors and consumers alike, regulatory scrutiny has intensified.
Current Regulatory Challenges
The cryptocurrency market faces several regulatory challenges that hinder its growth and adoption:
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Lack of Clarity: Regulatory frameworks vary significantly across states and countries, creating confusion for investors and businesses.
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Fraud and Scams: The rapid growth of cryptocurrencies has led to an increase in fraudulent schemes targeting unsuspecting investors.
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Consumer Protection: Without clear regulations, consumers are often left vulnerable to risks associated with volatile markets.
Christie’s Vision for Crypto Regulation
Christie believes that under Trump’s leadership, there will be an effort to find a “sweet spot” for cryptocurrency regulation balancing innovation with consumer protection. He argues that overly stringent regulations could stifle growth in this emerging sector while too little oversight could expose consumers to significant risks.
In his view, a balanced regulatory framework would include:
1. Clear Definitions: Establishing clear definitions for different types of cryptocurrencies and tokens to differentiate between securities and utility tokens.
2. Consumer Protections: Implementing measures to protect investors from fraud while promoting transparency within the market.
3. Encouraging Innovation: Creating an environment conducive to innovation by allowing startups to thrive without excessive regulatory burdens.
Christie’s insights reflect a growing recognition among policymakers that cryptocurrencies are here to stay and that appropriate regulations are necessary to foster growth while safeguarding consumers.
Implications of Proposed Reforms
Economic Impact
The potential reforms proposed by Christie could have far-reaching economic implications:
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Job Creation: Legalizing marijuana at the federal level could lead to significant job creation within the cannabis industry—from cultivation and production to retail sales.
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Investment Opportunities: Descheduling cannabis would open up investment opportunities for institutional investors who have been hesitant due to federal restrictions.
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Boosting Local Economies: Legal cannabis markets have proven beneficial for local economies through increased tax revenues and job creation.
Similarly, clear regulations around cryptocurrencies could stimulate investment in blockchain technology and related industries, fostering innovation and economic growth.
Social Justice Considerations
Both marijuana legalization and sensible cryptocurrency regulations have social justice implications:
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Addressing Past Injustices: Legalizing marijuana could help rectify past injustices related to drug enforcement policies that disproportionately affected marginalized communities.
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Financial Inclusion: Cryptocurrencies offer opportunities for financial inclusion for those underserved by traditional banking systems, particularly in low-income communities.
Political Landscape
The political landscape surrounding these issues is complex. While there is bipartisan support for marijuana reform among certain lawmakers, challenges remain in overcoming entrenched opposition. Similarly, cryptocurrency regulation has garnered attention from both sides of the aisle but requires collaboration to establish effective frameworks.
Conclusion
Chris Christie’s predictions about President-elect Donald Trump’s approach to federal marijuana descheduling and cryptocurrency regulation suggest a potential shift in U.S. policy that could significantly reshape both industries. As public opinion evolves on these issues, lawmakers have an opportunity to enact meaningful reforms that promote economic growth while ensuring consumer protection. The anticipated changes could foster a more robust cannabis industry that contributes positively to the economy and addresses social justice concerns, while clear regulatory frameworks for cryptocurrencies could encourage innovation and protect consumers in the digital economy. Stakeholders in both sectors are closely watching these developments, eager to see how potential reforms might impact their futures. While the realization of Christie’s predictions remains uncertain, it’s clear that the conversation around marijuana and cryptocurrency regulation is ongoing and far from settled.
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Webinar Replay: Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em
Published
24 hours agoon
November 13, 2024By
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On Thursday, November 7th, Vince Sliwoski, Aaron Pelley and Fred Rocafort held a post election discussion “Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em”. Watch the replay!
Key Takeaways from the “Smoke ’em if You’ve Got ’em – 2024 Post Election Cannabis Wrap” Webinar:
- Panelists:
- Vince Sliwoski: Oregon Business lawyer specializing in cannabis and commercial real estate.
- Aaron Pelley: Experienced in cannabis law since Washington’s legalization in 2012.
- Fred Rocafort: Trademark attorney working closely with the cannabis team.
- Election Results Overview:
- Most 2024 cannabis ballot measures did not pass.
- Florida, South Dakota, and North Dakota saw failures.
- Nebraska became the 39th state to legalize cannabis for medical use when it passed two cannabis initiatives, Initiatives 437 and 438.
- Federal and State-Level Developments:
- Medical use is currently legal in 38 states, and 24 states allow recreational use.
- Republican support for marijuana legalization is growing.
- Federal Policy Implications:
- Schedule III Rescheduling: The process to move cannabis to Schedule III is ongoing, which could significantly impact the industry.
- Importance of Federal Appointments: The future of cannabis policy depends heavily on who is appointed to key positions in the administration.
- International and Domestic Trade:
- Schedule III status could ease import/export restrictions on cannabis.
- Unified control of House, Senate, and presidency might expedite legislative progress.
- Economic and Industry Impact:
- Cannabis stocks experienced volatility post-election, reflecting investor uncertainty.
- Federal legalization and banking reforms are crucial for industry stability and growth.
- Future Outlook:
- The potential for federal rescheduling remains strong, with hearings scheduled for early 2025.
- State-level initiatives and regulatory developments will continue to shape the industry.
“How Long Does One Puff of Weed Stay in Your System?”… This topic can be difficult to answer since it is dependent on elements such as the size of the hit and what constitutes a “one hit.” If you take a large bong pull then cough, it might linger in your system for 5-7 days. A moderate dose from a joint can last 3-5 days, whereas a few hits from a vaporizer may last 1-3 days.
The length of time that marijuana stays in the body varies based on a number of factors, including metabolism, THC levels, frequency of use, and hydration.
Delta-9-tetrahydrocannabinol, or THC, is the primary psychoactive component of cannabis. THC and its metabolites, which remain in your body long after the effects have subsided, are detected by drug tests.
Since these metabolites are fat-soluble, they cling to bodily fat molecules. They could thus take a while to fully pass through your system, particularly if your body fat percentage is higher.
THC is absorbed by tissues and organs (including the brain, heart, and fat) and converted by the liver into chemicals such as 11-hydroxy-THC and carboxy-THC. Cannabis is eliminated in feces at a rate of around 65%, while urine accounts for 20%. The leftover amount might be kept within the body.
THC deposited in bodily tissues ultimately re-enters the circulation and is processed by the liver. For frequent users, THC accumulates in fatty tissues quicker than it can be removed, thus it may be detectable in drug tests for days or weeks following consumption.
The detection time varies according to the amount and frequency of cannabis usage. Higher dosages and regular usage result in longer detection times.
The type of drug test also affects detection windows. Blood and saliva tests typically detect cannabis metabolites for shorter periods, while urine and hair samples can reveal use for weeks or even months. In some cases, hair tests have detected cannabis use over 90 days after consumption.
Detection Windows for Various Cannabis Drug Tests
Urine Tests
Among all drug tests, urine testing is the most commonly used method for screening for drug use in an individual.
Detection times vary, but a 2017 review suggests the following windows for cannabis in urine after last use:
– Single-use (e.g., one joint): up to 3 days
– Moderate use (around 4 times a week): 5–7 days
– Chronic use (daily): 10–15 days
– Chronic heavy use (multiple times daily): over 30 days
Blood Tests
Blood tests generally detect recent cannabis use, typically within 2–12 hours after consumption. However, in cases of heavy use, cannabis has been detected up to 30 days later. Chronic heavy use can extend the detection period in the bloodstream.
Saliva Tests
THC can enter saliva through secondhand cannabis smoke, but THC metabolites are only present if you’ve personally smoked or ingested cannabis.
Saliva testing has a short detection window and can sometimes identify cannabis use on the same day. A 2020 review found that THC was detectable in the saliva of frequent users for up to 72 hours after use, and it may remain in saliva longer than in blood following recent use.
In areas where cannabis is illegal, saliva testing is often used for roadside screenings.
Hair Tests
Hair follicle tests can detect cannabis use for up to 90 days. After use, cannabinoids reach the hair follicles through small blood vessels and from sebum and sweat surrounding the hair.
Hair grows at approximately 0.5 inches per month, so a 1.5-inch segment of hair close to the scalp can reveal cannabis use over the past three months.
Factors Affecting THC and Metabolite Retention
The length of time THC and its metabolites stay in your system depends on various factors. Some, like body mass index (BMI) and metabolic rate, relate to individual body processing, not the drug itself.
Other factors are specific to cannabis use, including:
– Dosage: How much you consume
– Frequency: How often you use cannabis
– Method of consumption: Smoking, dabbing, edibles, or sublingual
– THC potency: Higher potency can extend detection time
Higher doses and more frequent use generally extend THC retention. Cannabis consumed orally may remain in the system slightly longer than smoked cannabis, and stronger cannabis strains, higher in THC, may also stay detectable for a longer period.
How Quickly Do the Effects of Cannabis Set In?
When smoking cannabis, effects appear almost immediately, while ingested cannabis may take 1–3 hours to peak.
The psychoactive component THC produces a “high” with common effects such as:
– Altered senses, including perception of time
– Mood changes
– Difficulty with thinking and problem-solving
– Impaired memory
Other short-term effects can include:
– Anxiety and confusion
– Decreased coordination
– Dry mouth and eyes
– Nausea or lightheadedness
– Trouble focusing
– Increased appetite
– Rapid heart rate
– Restlessness and sleepiness
In rare cases, high doses may lead to hallucinations, delusions, or acute psychosis.
Regular cannabis use may have additional mental and physical effects. While research is ongoing, cannabis use may increase the risk of:
– Cognitive issues like memory loss
– Cardiovascular problems including heart disease and stroke
– Respiratory illnesses such as bronchitis or lung infections
– Mood disorders like depression and anxiety
Cannabis use during pregnancy can negatively impact fetal growth and development.
Duration of Effects
Short-term effects generally taper off within 1–3 hours, but for chronic users, some long-term effects may last days, weeks, or even months. Certain effects may even be permanent.
Bottom Line
The amount of time that cannabis remains in your system following a single use varies greatly depending on individual characteristics such as body fat, metabolism, frequency of use, and mode of intake. Frequent users may maintain traces of THC for weeks, whereas infrequent users may test positive for as little as a few days. Hair tests can disclose usage for up to 90 days, while blood and saliva tests identify more recent use. Urine tests are the most popular and have varying detection durations. The duration that THC and its metabolites are detectable will ultimately depend on a number of factors, including dose, strength, and individual body chemistry.
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