Hemp and Cannabis “compliance” is a term that can have multiple meanings depending on context, and is a more complicated term than most people give it credit for:
1) The most common usage of “compliance” refers to compliance with state and local cannabis/hemp regulations that govern the operation of a business. While this may sound straight forward, attorneys and operators both need to be aware that operational compliance involves understanding the regulations as well as how those regulations integrate with a state’s chosen track and trace system. This is why I often advise operators to seek out attorneys/consultants with supply chain experience–it’s one thing to know the regulations, but it’s another to be able to apply them in conjunction with track and trace interfaces and third party providers.
2) “Compliance” can also refer to internal policies and procedures that govern how a corporation governs itself internally. A robust internal legal compliance program is particularly important in the context of publicly traded companies.
As you can see from the non-exhaustive list above, understanding the varying definitions of “compliance” is critical in ensuring that both attorney and client are setting expectations and avoiding headaches down the road.
DISCLAIMER: THIS INFORMATION IS STRICTLY EDUCATIONAL AND DOES NOT CONSTITUTE LEGAL ADVICE.