California was the first state to change the cannabis law and legalize the use of cannabis for medical purposes only. That was in 1996. Twenty-seven other states have joined the bandwagon since then with eight more states approving cannabis for recreational use. Cannabis laws vary from state-to-state, so it is always important to be current on the latest information regarding the laws in your state. Another thing to consider is that, while there are all of these states that have legalized cannabis use, the federal government still considers cannabis to be a Schedule I narcotic, like heroin.

When it comes to the new cannabis regulations and how they affect growers, some cannabis laws have a big impact while others are minimal. Here are a few:

  • Because the industry is unregulated and more growers are popping up, more and more plants are needing to be quarantined because of the misuse of pesticides.
  • For the most part, cannabis growers still cannot advertise on social media.
  • For cannabis business owners, finding the proper resources to run a company can be difficult to acquire because of the regulations that govern these companies, such as a payroll company.
  • Renting space can be difficult because of all the landlord regulations.
  • Even though cannabis is illegal, taxes on this product must still be paid, and yet tax right-offs are not allowed.
  • In states where growing cannabis is legal, people cannot hold this fact against you.
  • As far as the federal government goes, cannabis-related bills have not even made it to the subcommittee level yet.
  • Employees can still be fired for using cannabis because so many states are “at will” states and can state in their policies and procedures manual that cannabis use is grounds for dismissal.
  • Hiring an attorney for your business can also be tricky because of the guidelines regulating attorneys, and the fact that cannabis use is still considered a federal crime.
  • Sometimes there is difficulty in obtaining liability insurance for the same reason.
  • Major credit card companies and banks avoid the industry, fearing supporting the industry equals too much of a liability,
  • Without a bank, cash becomes the exchange. A cash-only industry opens up endless other problems.
  • Because of the competition, deals can be found.

As mentioned before, when growing cannabis, it is important to keep informed about the new cannabis laws and regulations surrounding growth and use to know how these laws might affect you.

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