Cannabis Law refers to the rules and regulations surrounding the production, sale and use of cannabis, commonly referred to as marijuana or pot or weed. Now legal in most states for adult recreational use but with significant differences between federal law and state regulations affecting many aspects of life from banking arrangements to living arrangements – cannabis law can have profound ramifications that impact every aspect of your life ranging from where banks do business with customers to what banks they prefer as financial advisors.
Prior to President Donald Trump’s administration, federal prosecutors were reluctant to prosecute individuals who broke state cannabis laws. With their Sessions Memorandum and Rohrabacher-Farr Amendment however, that has changed with federal law enforcement targeting only serious offenders instead of those engaging in activities legal under state laws.
New York State has passed laws that regulate the cannabis industry and provide for an authorization system for producers, distributors, and retailers. Under New York state law, registered dispensaries are defined as businesses authorized by OCM to sell adult-use cannabis and related products to adults.
Businesses registering as “registered dispensaries” must meet certain requirements:
(1) A registered dispensary must keep records of all cannabis, cannabis products and cannabis-derived product it receives or distributes. A record should include details about each item such as name of product code number description of item date received or distributed and date received or distributed; it should be maintained for at least three years. (2) Additionally, registered dispensaries must register all employees who play supervisory roles in their operation as well as keeping records on employees who can handle or otherwise handle cannabis, cannabis products and/or cannabis-derived product; these records must also be maintained for at least three years. (3) Additionally, registered dispensaries must report sales data back to OCM within three years after sales have occurred and reported sales information directly back into OCM system for scrutiny.
(4) Dispensaries registered with the Office of Cannabis Management must submit all cannabis and cannabis products for testing by OCM to ensure they comply with quality standards established by law. A registered dispensary must use an accredited laboratory approved by OCM in order to conduct these tests.
The Office of Cannabis Markets will perform random checks to ensure compliance with state laws. If it determines that any business is acting outside their legal framework, they could face suspension or revocation of their license to sell cannabis.
Additionally, laws exist regulating the potency of cannabis products to curb abuse of high-potency strains by discouraging consumers from purchasing items containing high concentrations of THC. Some states have implemented caps for all nonmedical cannabis products while others only limit edibles and some concentrates.
As the cannabis industry expands, businesses need experienced business lawyers on their side. Our firm can assist you in navigating all the issues arising in such an evolving and unpredictable space. Reach out today for a consultation; we look forward to serving you.