Regulations and requirements in the cannabis industry are evolving daily, especially with the rise of legalization in many countries and states. In 2022, businesses should expect to see a wave of new policies and restrictions. GreenWrap Insurance Solutions discusses the issues facing the cannabis industry in the year ahead and what laws are pending to address these issues.
In recent years, many states have legalized the use of marijuana medically and recreationally. This number may grow in the coming year as the federal government introduces bills that make it easier to operate cannabis businesses. This will increase competition within the cannabis industry. Marijuana and hemp product legalization will inspire more people to start their own cannabis companies. This makes it harder for established businesses to keep up with their competition.
Among the marijuana bills passing through Congress, one talks specifically about availability to veterans. As of now, doctors working with the U.S. Department of Veteran Affairs cannot recommend the use of marijuana and hemp products. This can result in a major loss of funding for the facility. With the passing of the Veterans Medical Marijuana Safe Harbor Act, physicians can promote cannabis use to veterans without the risk of losing government funding. Many states are also working toward decriminalizing marijuana. While competition may be increasing, the promotion of cannabis products will also rise should these bills pass in 2022.
Human Resource Regulations
The cannabis industry is relatively new and there aren’t many institutions in place that will advocate for its employees. Therefore, it’s important for employers to create a safe and comfortable work environment. This could include establishing fair wages, equal opportunities, and more. Implementing wellness programs can also keep employees engaged. Plus, it’s important to invest in effective training to properly prepare employees to interact with clients and comply with required reporting to various entities in the chain of command.
Keeping employees satisfied can also play a role in helping the sale and consumption of marijuana become federally legal. Once businesses in the cannabis industry establish effective and appropriate protocols, the federal government may be more inclined to decrease cannabis restrictions.
Most businesses in the cannabis industry operate as cash-only businesses. Because cannabis is not federally legal, federally owned banks are prohibited from working with marijuana and hemp-related businesses. This in turn makes it difficult for cannabis businesses to obtain loans or create bank accounts. Federally funded banks cannot work with these businesses because the federal government considers it money laundering regardless of state law. While privately owned banks can assist cannabis entrepreneurs, this still gives businesses fewer options to safeguard capital.
To help navigate these hurdles, the Secure & Fair Enforcement (SAFE) Act of 2021 is projected to be voted on in 2022. The passing of this bill would allow federal banks to work with legitimate cannabis businesses. This means the federal government will no longer consider providing loans and other financial activities to be illegal. Until then, keeping track of sales, investing in security equipment, management software, and implementing employee protocols can keep funds in check and avoid monetary fines and losses.
Stay Updated on Changing Regulations
As the legalization and decriminalization of cannabis products become popularized, things will be changing within the industry. Business owners and legislators are still working out the mechanics behind running marijuana and hemp-related businesses as counties and states change their regulations. Marijuana has a chance of becoming federally legal in the future. By hiring a trusted insurance agent, you can ensure you stay updated on the most recent changes to cannabis regulations. GreenWrap Insurance Solutions will work to maintain your insurance policies, notifying you of any changes to building regulations, security requirements, and more. To learn more about how we help businesses in the cannabis industry, contact us today.