Marijuana Business Magazine

128 • Marijuana Business Magazine • November / December 2017 “It’s historic,” Cook said. “You don’t get that many times in your life to expe- rience something like that.” Work with Regulators For Sam Chapman, a principal at New Economy Consulting in Portland, Oregon, it’s important to remember the truism that all politics are local when working with regulatory authorities. “One of the biggest variables when you have a transition from a medical to an adult-use market is how local govern- ments play into the equation,” he said. Additional rules and regulations beyond the state level – from counties and municipalities – are changing “all the time,” Chapman said. To engage at the local level, Chapman recommends calling the city planner and the city recorder who takes the minutes for city meetings. Ask for information. From there you can learn what’s being considered. For example: Will there be license caps? Or: Is there a timeline you aren’t aware of ? It’s not difficult to stay up to date, he added. “But it starts with picking up the phone and getting engaged with your local government,”Chapman said. “Going to meetings, testifying before city council.” However, avoid giving government officials blunt advice about what they should do. “It has to be a collaborative effort,” Chapman said. “You have to help them understand that you want to help create a better industry, you support regula- tions and licenses, that we’re all in the same boat about not letting cannabis fall into the hands of children.” Be Prepared for Change And remember that not all regula- tions are going to stick. According to Jerry Derevyanny – an executive at Northwest Cannabis Solutions, a grower and processor in Tumwater, Washington – requirements will emerge that are ineffective, too expen- sive or overly strict. “Don’t expect that the rules that are in place on Day One are the rules that are going to be in place on Year Two,” he added. Oregon is a case in point. In Decem- ber 2016 – following the state’s launch of adult-use sales two months prior – regulators revised testing rules to get more flower, oils and marijuana-infused edibles on depleted store shelves. As a result, Derevyanny doesn’t rec- ommend building your business model around static regulations. If something does need to change, regulators typi- cally are at least willing to listen and perhaps make needed modifications. “If California’s anything like Wash- ington, the regulators will listen to you,” Derevyanny said. He owes part of his state’s success to the Washington CannaBusiness Association. He recommends that California businesses utilize a well- organized coalition trade group to work with the regulators as well. But use tact when attending any meeting of government officials or regulators. “Without being vitriolic about it, you come in and lay out what the problem is, what you think a reason- able solution is, that addresses their concerns,” Derevyanny said. “Don’t come in like you’re going to war. Come in like you’re working together.” Stay Flexible Chapman, the Oregon consult- ant, recommends hiring a full-time person to track changes to rules and regulations. “It’s not only keeping up, but there’s an opportunity for those people who want to influence and do this right to shape the future of their business,” he added. And be responsive. “If you’re flat-footed, it’s going to cost you a lot of money and a lot of time,” Chapman said. Falconer, the Denver consultant, agreed. “That’s a nuance of the cannabis industry,” he said. “Being a chameleon and being able to adapt to these different environments and regulatory changes is part of your day-to-day activity.” He advises that you should react as soon as you learn about any regulatory changes. “The companies that are more suc- cessful are the ones that make changes a month or two before those changes are required,” Falconer noted. ◆ Near-Term Timeline for California’s Recreational Marijuana Program Mid-November: Official regulations released Early December: Applications will be accepted January: Initial business licenses issued Source: Alex Traverso, spokesman for California Bureau of Cannabis Control C alifornia D reamin' Frank Falconer, managing member of Denver Consulting Group. Photo courtesy of Frank Falconer