The ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION recently released the “CONDITIONAL ADULT USE DISPENSING ORGANIZATION LICENSE –APPLICATION FORM.”
The Security Plan Section has the largest page limit (50 Pages) of any section in the application (20 pages more than the Business Plan Section). Do you have an experienced cannabis security expert on your team?
The State Today
The cannabis industry is rapidly expanding, and operators are mandated to comply with regulations which are defined by each individual state. Often, the operations and security requirements vary dramatically from state to state and it is the responsibility of the operator to decipher those regulations. The operator must then comply precisely with state regulations in order to attain and maintain their license to operate. This patchwork approach to cannabis regulations poses challenges to individual operators and more significantly to Multi-State Operators (MSO). This decentralized approach also causes many of the support industries to thrive in some states and stumble in other.
The Fed Tomorrow
It is commonly believed that the federal government cannot continue to forgo the opportunity to legalize and regulate the Cannabis industry and collect extensive tax revenues and fees. The banking and credit card industries are also lobbying to gain access to the industry. These players want to tap into significant income generated by transactions fees, interest fees and owner/operator wealth.
While there will be benefits to federal legalization of cannabis, there will be several negative effects caused by the eventual enforcement of federal regulations. One potential risk is focused on construction methods and standards. Operators may be designing facilities below the standards which are anticipated when the FDA becomes involved thereby requiring additional investment to comply. Another will be felt by those operators who build their security plans around low quality and non-integrated security systems which will require even more investment to upgrade to federal performance levels. Finally, those federal non-compliant operators, who wish to sell their companies after federal legalization will see their market valuation severely depressed based on federal regulations.
This article was first published on https://www.cannabisimp.com.