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Yes, these regulations are currently undergoing further amendments, in virtually every state where cannabis can be bought and or sold. In March of this year, after less than one month of legalized cannabis in New Jersey, the state was already seeking to modify the laws. These changes were initiated and pushed for by various interest groups. This was due to the fact that the cannabis industry was rapidly expanding.
The first change, which was talked about in the forum, was the provision that police officers should be prevented from notifying the parents of minors in possession of cannabis for the first offense. The officers felt that the ruling would leave parents in the dark as far as children or teens\’ possession of cannabis. They were also joined in agreement by both parents and by officials in public office.
Another change in cannabis regulations was in employers\’ having more control over employees who were believed to be consuming cannabis on the job, or who were thought to be impaired. There were discussions held that stated that critical occupations, such as police departments, could completely ban workers from using cannabis.
Another method of growing cannabis plants is by using a tent. These utilize light during the day and become flooded with carbon dioxide at night, to speed the growth of the plants. After two months, a cannabis plant that is well taken care of can reach four feet high by two feet wide, but before it grows to this size, male plants must be gotten rid of.
The reason for this is that the male plants don\’t produce flowers, which is what most people are seeking. The finished product of the cannabis plant is the bud. Most people who grow cannabis will cull the male plants so that the pollen can pollinate the female flowers. The differences between the male and female plants begin to display when the plant is less than one foot tall.
The way that the gender of the plants is determine is by checking where the leaves meet the stems. Females have long, thin stalks, while the male plants have two small pollen sacks.
The two garden shops in Virginia hope to offer classes for potential cannabis growers, and they hope that the lawmakers in Virginia maintain that the cannabis products can remain locally sourced. They further explain that business can thrive, with a superior product, if the production could remain in their state, instead of being outsourced, such as to the West Coast. As it stands currently, the General Assembly has to decide where and how Virginia can get cannabis by 2024.
Logistically speaking, there are many aspects of the cannabis business for prospective operators to complete. It is a lot to handle for only one individual, or even for a whole tribe, to accomplish. A cannabis specialized consulting company has the background in knowing the regulations and also in being familiar with working with both the county and with the sheriff\’s office. It proves invaluable that one company which knows the process of setting up the cannabis business from inception to completion, from the standpoint of also knowing how to handle various, potential scenarios or dilemmas, can take away a lot of the stress of one individual\’s or one tribe\’s trying to perform these operations alone.
A partner at one of these consulting legal and policy firms which has worked with Native American tribes entering the hemp industry told an online Native publication that tribes are hesitant and leary of growing cannabis in states where it is not legal, without having an agreement with the state in question, because of the possibility of being raided by law enforcement. Another barrier, as is also an obstacle for other groups looking to enter the cannabis industry, includes not being eligible for programs such as grants, since they require compliance with all federal laws. There is also the refusal of some banks to work with cannabis businesses. This lack of support will require the tribes to buy and sell only utilizing cash measures.
Another aspect to consider for Native Americans seeking to enter the cannabis market is when a state enforces Public Law 280. This is a law enacted in 1953 that enables some states to enforce their own laws on tribes regarding criminality. This law provides that states which do not operate under Public Law 280, but which also do not support cannabis growth, can encourage support from the federal government to prohibit the growing of cannabis, at the federal level.
There are so many components to establish a cannabis business. An analogy is that when a building is constructed, the various aspects of hiring specialized contractors, such as plumbers, electricians and cement masons, are best handled by a general contractor. The task of setting up a business model with an overall specialist facilitates dealing with all of the pieces involved in enabling the business to run smoothly.
Specifically, a company\’s business model can be adapted to serve the needs of both large and small tribes, in the Native American communities. The larger tribes might want to incorporate a cannabis business into a hotel or casino, and smaller tribes would find that a cannabis business would utilize a large amount of their budget. One cannabis business stated that their partnerships with Native American tribes will enable the tribes to assume control of their businesses according to their needs and wishes. An overall model with the exact same approach for everyone will not be useful or functional due to the various goals of tribes. If one tribe has a lot of experience with convenience store spaces for selling cannabis, they might want to augment a dispensary, while another tribe might want to set up a multi-use cannabis destination.
The chairperson of a tribal development corporation which runs a Native American cannabis business, thinks that the demands for having more tribes who can help to open the businesses legally, are important to meet. The Native American tribe of the Iipay Nation became the first tribe to open a cannabis business in 2016, in California.
Verifying the customer bases and the available cannabis products are crucial for success. To grow cannabis businesses and the industry as a whole, retailers must also utilize online reporting for regulations.
The cannabis business has started to see the importance of technology in most of the aspects of their business. This goes from management and point of sale to delivery and marketing automation. The legal cannabis industry is still young, and the concepts of sales and marketing remains a novel one. It is fortunate that the capabilities of cannabis technology are being adapted to rapidly. The cannabis industry is growing and evolving along with these capabilities.
Since cannabis remains a federally controlled substance, online transactions utilizing credit cards is still difficult, and is the reason why many dispensaries operate on a cash only basis. Technological advances have fortunately made it possible for cannabis consumers to browse and order products online, but then pay in person. This translates to nine billion dollars in sales per year. Point of sale systems must accommodate this aspect of online-offline combination which is unique to the cannabis industry. Without these point of sale tools, dispensaries would miss a large proportion of their orders which are placed online, and would not have the means for which to collect payments.
This aspect of payment collection seems simple compared to managing inventory. This is a challenge when selling cannabis products. Technology which is used in more established and less regulated areas might not meet the needs of the dispensary. Whereas restaurants might serve about 30 or 40 items on their menus, a cannabis dispensary is likely to have maybe 300, or more likely, as many as 3,000 cannabis products. There are large numbers of data required, such as serving size, or dosage, ingredients and type of cannabis strain.
Some key facts to remember about cannabis growth are that cannabis is legal in 16 states, in Washington, D. C. and in several worldwide markets. Using a credit card to purchase cannabis products remains difficult, since many cannabis dispensaries operate on a cash only basis, as was discussed here with regard to the passage of the SAFE Act. In addition,technology is possibly the most significant factor and driving force in facilitating the cannabis industry\’s largest growth opportunity.
In less than twenty years, cannabis has risen to the forefront to become a large industry, for which the legalization of cannabis in 16 states, D.C. and in international countries, as mentioned, is a significant proportion of the industry as a whole. This growth brings about economic opportunities as well as its own unique challenges. A complex regulation picture and marketing restrictions can present obstacles, but the cannabis industry continues to succeed at overcoming these early challenges. Innovations in technology are making commercial opportunities possible.
The cannabis industry is unlike other retailers because of the fluctuations in statewide laws, and also because of the constant changes in local laws. Cannabis retailers in the U.S. need to verify buyers\’ identities and medical cards, for medicinal cannabis. They also have to calculate the amount of local taxes and track each individual purchase of the cannabis. They then must report to regulatory agencies for validation and enforce possession limits by each consumer. These steps for compliance for medicinal sales of cannabis are half of the battle, and are necessary steps.
The United States cannabis industry is poised to continue growing. There are ebbs and flows in global markets, where industries experience a boon, continue to mature and then fade away. In recent years, the cannabis industry has been expanding. Cannabis is legal in 36 states, and although it is still not legal at the federal level, publicly traded companies which are in this industry are in the position to become prosperous.
The potential for growth exists for any company handling cannabis. This can occur when full legalization is achieved in the U.S. The question is when federal legality will come. A report from an investment group was optimistic for this young industry. Several events will happen in the near future that will change and solidify not only the cannabis industry, but also those dealing with both the alcohol and pharmaceutical industries. It is predicted that within the next year, there will be federal legislation which will offer protection to companies willing to invest in the cannabis industry.
Later, this anticipated legislation is expected to offer nationwide cannabis legality by 2026. When full federal legality happens, interstate commerce in the cannabis industry will begin, and the industry as a whole will be worth more, and will experience higher valuations. In additional to this financial aspect, cannabis and its derivative products will become more mainstreamed and this will lead to increased sales of these products.
The analyst who authored this report estimated that U.S. sales of cannabis related products improved by 40% from 2019 to 2020. This percentage translates to 17.2 billion dollars. This number is predicted to more than double by 2025, and then to double again by 2030. It was further explained that mergers and acquisitions (M&A) will be turning points for more than 27,000 cannabis businesses already in operation. The consolidation into fewer, yet more valuable, operations is predicted. Due to the current regulations, this growth has not happened in its entirety.
Building upon earlier research in the area of how cannabidiol can alleviate psychotic symptoms in schizophrenia, researchers in another study focused on identifying specific pathways in the brain, on how this is achieved. The scientists wished to identify the exact mechanisms which are responsible for the impact of CBD on certain types of psychosis, as are exhibited in schizophrenia. The result was that the researchers concluded that CBD regulated concentrations of a neurochemical called anandamide. This is an important neurotransmitter that promotes feelings of bliss or happiness. Therefore, in addition to the study of how this chemical impacts the treatment of schizophrenia, researchers are also interested in how the relationship between CBD and anandamide may be important in other areas of psychology, as well.
Anandamide is an endocannabinoid for which cannabidiol can inhibit the rate at which it is broken down, or degraded. Even though cannabidiol is a component of the cannabis plant which does not activate cannabinoid receptors, CBD at increased levels in the brain and in spinal fluid can increase the levels of anandamide, and decrease psychotic symptoms. This mechanism of enhanced signaling of anandamide leads to a lower rate of transition, or to a delayed transition, from symptoms occurring before a more severe psychotic episode.
The approach taken to show how anandamide delayed the more severe symptoms of psychosis was performed in a double-blind, randomized clinical trial of CBD, as compared with a potent antipsychotic agent, called amisulpride. These were administered during acute psychotic episodes to evaluate the clinical relevance to the researchers\’ initial findings. Both treatments, with amisulpride and CBD, were found to be safe, and led to marked improvement. Cannabidiol displayed a noticeably superior profile regarding side effects. The treatment with the CBD also elevated the levels of serum anandamide in the brain, and this effect led to significant clinical improvement of symptoms. Overall, the method by which the anandamide is prevented from being broken down by the CBD may contribute to its antipsychotic properties. This is a new mechanism by which to treat schizophrenia.
In addition to the aforementioned anxiolytic effects of CBD, it has been shown to have the ability to alleviate symptoms of psychosis, as well. This finding was brought to light in 1995, when a single case study became the inception of a continuing basis of research on the potential benefits of CBD on schizophrenia. In this case study, a 19 year old female patient was suffering from the typical symptoms of schizophrenia. These symptoms of thought delusions and hostility, as well as suspiciousness, were treated with cannabidiol, and the researchers who conducted the trial noticed improvements in several areas.
Specifically, improvements were noted in the areas of the above mentioned characteristics of thought disturbance, suspiciousness and hostility, which are characteristics of schizophrenia. In the 26 years since this study\’s findings were published, many other researchers became empowered to conduct further research on the potential relationship between schizophrenia and other psychotic disorders and CBD.
The 19 year old female patient with schizophrenia had hormonal side effects related to the use of the typically prescribed neuroleptics, or antipsychotics. Her improvement with the treatment of cannabidiol was noted on all of the terms of the rating scale known as the Brief Psychiatric Rating Scale, which encompasses the symptoms described above, including disordered thoughts and hostility or anger. The drug effect that was observed from the CBD was similar to those from the antipsychotic medication.
A high dosage of Delta-9 THC is the main component of the cannabis Sativa plant, and can induce anxiety and psychotic-like effects in healthy subjects. These symptoms are in turn reduced by CBD, which counteracts these effects. This observation led scientists to believe that CBD could have antipsychotic, as well as anxiolytic properties. The latter term refers to anti-anxiety properties.
Studies in both animal and healthy human models clearly indicate that there is an anxiolytic-like effect from CBD. CBD has also been shown to possess antipsychotic-like properties, as has been demonstrated in animal subjects by using behavioral and neurochemical methods. The psychopharmacological profile of CBD is similar to that of the newer, atypical antipsychotic medications. Open case reports of patients with schizophrenia who have been treated with CBD, and a preliminary report of a controlled study, have compared CBD with an atypical antipsychotic medication, and CBD was demonstrated to be a safe and well tolerated alternative treatment for schizophrenia.
The anxiolytic effects of CBD have been demonstrated by a double-blind study performed on human volunteers. After scans of the brains of these subjects after a public speaking event, CBD produced an obvious anti-anxiety effect, and showed a pattern of improved brain activity, with a comparable reduction in anxiolytic activity. These data on healthy subjects demonstrated the anxiolytic effects of CBD.
The SAFE Act will be a beneficial act for the banking aspects of the cannabis industry. Americans are hoping for a positive outcome for its success. In contrast, Canadians, who legalized cannabis in 2018, are fearful that Canada\’s stock market and investments will lose business if the SAFE Act passes. They are afraid that American cannabis companies will move their cash from Canada to the New York Stock Exchange and to U.S.banks. This is according to Bloomberg News.
The passage of the SAFE Banking Act would be a significant factor for the U.S. cannabis industry, but there is still a chance for Canada to profit, as well. The big banks in America, such as Chase, PNC and Bank of America have stated that they will not work with cannabis companies until cannabis becomes federally legalized, due to ongoing risks.
While the big banks wait for federal legalization, many believe that small, local banks and credit unions will be the first ones to offer financial services to the cannabis industry. This is good news in that cannabis companies should see decreased operating costs and increased security. The illegal market would be reduced and also, smaller, community banks would have newly created customers.
After the bill for the SAFE Banking Act was revised, Senate majority leader Republican Mitch McConnell had to agree to being it to the Senate floor for a vote. McConnell had become a CBD proponent as shown by his support for the 2018 Farm Bill. He then was less enthusiastic about cannabis reform, and blocked almost every part of cannabis legislation that Congress sent for approval.
There was much support for the SAFE Act in 2019, and many people hoped he would change his mind. He agreed to send the bill to the floor, and it had to pass in the Republican-controlled Senate by a minimum of 60 votes. The Republicans had usually voted no on legislation in favor of cannabis, and every Democrat in the Senate was not a definite pro-cannabis vote, either. Certain democrats in conservative states said that they would not agree to cannabis banking reform until cannabis was legal at the federal level.
Even given the cannabis banking questions, advocates in the cannabis industry were positive that a version of the bill would pass. The bill would then provide immense benefits to banks and cannabis companies and up and coming cannabis entrepreneurs. Even though the act wasn\’t perfect, it did begin to address various financial issues, including the nature of the cash-only process, which increased violent crimes and prevented crucial access to cannabis business owners for loans and credit lines.
Even though the voting was a significant step forward for the banking act, there was a similar amendment which was proposed in 2014. At that time, the House of Representatives passed a similar, yet more limited, amendment. It was more limited, in that it was geared toward preventing the Treasury Department from issuing penalties to banks who did business with cannabis companies. The measure passed, by a vote of 231:192, but was never enacted into a law because the Senate did not vote on it.
Fortunately, after that attempt, the Senate Republicans were more receptive to reform for cannabis banking. It took a few revisions to the bill before the Republicans in the Senate agreed to support it. An example of this is that they asked for provisions that favor legal CBD and hemp companies as well as wording that offers protection for the firearms industry.
Although the SAFE Banking Act has imperfection, the act addresses the issues of making the cash-only cannabis industry safer and with increased banking options, cannabis companies can invest more in innovation and hiring practices. In addition, cannabis entrepreneurs will be able to apply for loans and access needed funds in order to start their business plans. This will promote further growth in the cannabis industry.
It is very important to ensure that cannabis store employees remain safe, pending the outcome of the SAFE Banking Act as law. There was a fatal shooting of a budtender, a few years ago, and many dispensaries on a nationwide basis have repeatedly been burglarized and robbed. It will be worth noting how the progression of the SAFE Banking Act unfolds. This is in addition to other legislation related to cannabis. For the time being, banks can prepare for the law to be passed by looking for reputable cannabis businesses with COAs with which to partner.
This partnership will enable legitimate cannabis companies to focus on their growth, rather than on where to keep their cash. Since there is still a federal ban on cannabis, companies must financially operate like drug trafficking operations. Legitimate cannabis companies cannot claim deductions on their federal income taxes. This means that they may have to pay a very high rate of taxes, which is up to 90%. Additionally, cannabis companies cannot apply for loans or for lines of credits, since most banks do not want to do business with them. As a result, the industry, which is worth about 10.9 billion dollars must operate on a cash only basis, which limits its opportunity for growth.
The federal ban on cannabis is an obstacle to the growing market, and politicians who are in favor of cannabis have stepped in to offer financial relief through the SAFE Banking Act. This Act is the first legislative measure to remove the threat of punishment against banks in states where cannabis is legal. The goal is for banks to feel more at ease with doing business with cannabis companies and retailers without the fear of losing their licenses. This notion inspires them to do business with these companies. When the bill was submitted to the House of Representatives, it required a two-thirds vote, and it won by a landslide majority, of 321 to 103. All Democrats but one voted in favor, and nearly half of Republicans were in favor.
This Act is a good method for the financial aspects of the cannabis industry. Many people would rather see cannabis become legal at the federal level first, but this revision to the industry\’s banking needs assists in bridging the gap between state and federal laws. It also has the support of lawmakers in both parties. The Treasury Secretary supports this Act, because he was concerned that the IRS had to build rooms to contain all of the cash from taxes which were paid by legally run state cannabis businesses.
The SAFE Banking Act will eliminate that concern, as well as help to ease critical safety concerns. Furthermore, a senator stated that no one who works in a store or behind a register should have to worry about experiencing a sudden and traumatic robbery. The banking act would help to ensure that legally operating cannabis businesses should not have to operate entirely on a cash basis. He stated that that is a ridiculous rule that is an open opportunity for money laundering and robbery.
The senator emphasized that this year, 2021, should be the year that the SAFE Act is signed into law, so that all legal cannabis businesses can have access to necessary financial services. It is also crucial to keeping cannabis employees safe, as well.
