Compliance

What is Cannabis Compliance?

Compliance in the cannabis industry refers to the adherence to laws, regulations, and standards set by governing bodies. This includes compliance with licensing requirements, safety and security protocols, product labeling and packaging rules, and testing and quality control standards. Compliance is crucial for ensuring the safety of consumers, maintaining the industry’s integrity and avoiding legal and financial penalties. Cannabis businesses must stay up to date with the ever-evolving regulatory landscape and implement robust compliance programs to ensure they are operating within the bounds of the law.

Why Employ Cannabis Compliance Consultants?

The cannabis industry is heavily regulated, and compliance with state and federal laws is critical. Cannabis compliance consultants help businesses understand and navigate the complex regulatory landscape and ensure they meet all of the necessary legal requirements. Failing to comply with regulations can result in fines, legal action, or even loss of license. Cannabis compliance consultants can help businesses identify potential risks and develop strategies to mitigate them, reducing the likelihood of regulatory violations. Cannabis compliance consultants typically have extensive knowledge and experience in the cannabis industry. They can guide and advise on various issues, from licensing and permitting to product safety and quality control. Compliance requirements can be time-consuming and complex, particularly for businesses new to the industry. Cannabis compliance consultants can help companies streamline compliance processes and ensure they are using their resources effectively. Compliance violations can damage a business’s reputation and harm its relationships with customers, suppliers, and partners. By working with cannabis compliance consultants, businesses can demonstrate their commitment to compliance and build trust with stakeholders. To summarize, compliance consulting services can help you with the following:

• Identify cost-effective ways of achieving compliance that will save your budget.
• Offer a deep knowledge of current and future compliance demands of state regulators and help implement strategies to help address these demands.
• Identify blind spots in your compliance strategy that may be difficult to recognize otherwise, based on experience working with cannabis businesses.
• Provide best practices and tools to make compliance less demanding, saving you time and money.

Cannaspire Cannabis Compliance Consulting

Adjusting to compliance regulations is one of the biggest risks facing cannabis businesses, as the industry is heavily regulated and subject to constant change. Cannaspire’s compliance program is designed to assess risks and ensure that the company operates in accordance with applicable laws and regulations. By prioritizing compliance, Cannaspire is committed to maintaining the highest standards of integrity and legal compliance in the cannabis industry. We have a team of experts who possess an extensive understanding of the dynamic regulatory environment, and we offer personalized solutions that cater to each client’s specific requirements.

Cannaspire can help with your compliance needs

Standard Operating Procedures (SOPs)

Immediately after a business completes their license application, our team develops custom SOPs for the company’s business model and scale. We ensure every aspect of the business meets state and federal compliance standards and industry best practices. This means procedures for meeting Good Manufacturing Practice (GMP) for manufacturing, Good Agricultural Practices (GAP) for cultivation, and Good Retail Practice (GRP) for retail. Operating procedures should cover every aspect of business activity, including but not limited to production, sales, inventory, security, pest management, waste disposal, sanitation, packaging, IT, and transportation.

Hazard Analysis and Critical Control Points (HACCP) and Quality Assurance and Quality Control (QAQC)

For companies that are already in operation with SOPs and are still encountering production issues, our team can analyze procedures, identify critical control points, and implement corrective actions, remediation, and mitigation strategies to ensure production meets quality standards. This includes plans for in-house testing, consumer complaints, and product recalls, as well as training for company employees on performing hazard analyses and implementing QAQC procedures. These are developed according to the Food and Drug Administration (FDA) standards for Quality Management Systems, ISO 9000.

Employee Training & Employee Handbooks

These materials encompass all activities engaged in by employees that may pose a risk to the company’s compliance. Specific company policies crafted to meet state and federal guidelines can include but are not limited to Occupational Safety and Health Administration (OSHA), zero-tolerance workplace violence, smoking, appropriate language for retail customer interactions, emergency response, hazardous material storage and reporting, Personal Protective Equipment (PPE) implementation and training, sanitation, social media use, and client access verification. We can provide virtual seminars or in-person training.

Self-Auditing & Records Management

Our compliance team will develop checklists and facility review forms designed to prepare your facility for regulatory review and inspection based on your company’s business model and scale. We can perform a GAP analysis through an in-person facility review and notify your company within 72 hours of any discrepancies or deficiencies in meeting state or federal compliance requirements. We can also train your team to perform these in-house inspections and checks and provide your company with a software-based solution for managing these logs and records. The software enables managers to easily assign tasks, track facility data, and maintain records of when tasks are completed and the employees’ names.

Environmental Impact & Facility Efficiency Analysis

We can analyze a facility’s production model and recommend strategies to reduce their resource consumption, decrease their carbon footprint, and meet state and federal guidelines for environmental resource management and waste disposal. These consultations can also create contingency plans and fail-safes for facility operations in the event of an emergency. We have experience partnering with utility providers to maximize rebates and minimize costs through efficient resource management.

USDA Organic Hemp Farm Certification

For the Hemp/CBD Industry only due to federal regulations, our team can implement organic farming SOPs and help clients choose a third-party certifier. We will work with the client to ensure they are prepared for the initial inspection and help them maintain records for ongoing monitoring by certifying agents.

Food Safety Plan and Nutrition Labeling

For businesses operating within states where edible cannabis or hemp and CBD-infused food products are available for purchase, our team can implement a food safety plan using the standards provided by the FDA, Safe Quality Foods (SQF), International Organization for Standardization ISO 22000, and HACCP to develop safety protocols and compliance measures for all commercial kitchen applications. This also includes required nutrition labeling and food allergy reporting information. A comprehensive look at cannabis labeling and what you can do to remain compliant can be found HERE.

Good Laboratory Practices (GLP)

18 of the 26 states that require testing for medical or adult-use cannabis also require these facilities to undergo accreditation or third-party auditing. Testing laboratories seeking to enter the regulated cannabis industry need to establish their workflows and procedures according to the practices of GLP which are provided by the FDA HERE. In order to ensure accuracy and consistency in testing protocols and the calibration of equipment according to international standards, our team can help accredit a cannabis testing lab with ISO/IEC 17025 Certification which will help the company to provide consistently valid results. This includes selecting a USDA certified accrediting body, establishing SOPs and Recordkeeping practices, and undergoing a Gap analysis prior to inspection by the accrediting body to avoid deficiencies that can delay certification.

Tax Compliance

The Internal Revenue Service (IRS) has recently established guidelines for managing cash transactions and has noted that cannabis businesses can write off the cost of goods sold on their taxes. Our compliance experts can help develop the appropriate forms and records as well as policies and procedures to ensure that your business is prepared with a record of compliance in the event of an audit from the IRS. We also partner with experienced industry accounting experts that can manage your company’s needs and answer any questions surrounding best banking practices for the quickly expanding cannabis market.

Regulatory Compliance Audit

Have the experts at Cannaspire review your SOPs, facilities, operations, and workflows, speak with your employees about production issues, and identify sources of lost productivity or potential fines or regulatory infractions. We can provide this service for companies preparing to open, or already running operations that are experiencing issues. Our team will review for compliance with international fire code, ADA, and OSHA, as well as all state and federal requirements pertaining to the specific business type and scale of production. Common issues we can help mitigate are loss of crops in cultivation due to mold or seeds, product remediation and failed testing in manufacturing operations through the adoption of in-house testing and QAQC practices, and even retail sales language and customer interactions for retail dispensaries to ensure their customers are well informed about their purchases.

Hemp/CBD Industry Compliance

Our team of experts can handle the licensing and operational compliance needs of all business models within the Hemp/CBD Industry. Hemp cultivators are required to be licensed at the Federal level via the USDA, as well as following state and local guidelines. These businesses have a number of unique compliance challenges including crop handling and lab testing requirements, age verification, recalls, packaging and labeling, and Good Manufacturing Practices (GMP) in certain states where it’s required. Let our team of experts ensure your business’s continued success!

Compliance Solutions for Different Cannabis Business Types

• Cultivation – Cannaspire can help cultivators ensure they maintain compliance with regulations related to growing and harvesting cannabis, including licensing requirements and environmental standards.
• Process Manufacturing – Process manufacturing companies can rely on Cannaspire to help them navigate complex regulations, increase operational efficiency, and provide strategic planning. Cannaspire also supports compliance projects, manufacturing capacity expansions, and more.
• Retail Dispensaries – Retail dispensaries can benefit from Cannaspire’s expertise in regulatory compliance. This includes securing and managing proper licenses, dispensary security, development of communication initiatives, training, and compliance workshops, among other services.
• Laboratories – Cannaspire also provides compliance services to laboratories that test cannabis, helping them meet state and federal regulations related to quality control, safety, and testing accuracy.
• Vertically Integrated Businesses & Microbusinesses – Cannaspire can design intricate business plans with complete financial Pro Forma for vertically integrated businesses that include cultivation, manufacturing, retail, delivery, and distribution, as well as being able to design these business models within the restrictions of a microbusiness license for states like New York that allow for vertical integration at the micro scale. Cannaspire can manage the license application, facility compliance, and ongoing operational compliance as many of these vertical facilities are required to undergo GMP certification following licensure such as is required in New York and Florida. Our team has won licenses nationally and helped establish several vertical operations, including microbusinesses, that are currently thriving in some the most lucrative markets within the US cannabis industry. Whatever scale you intend to operate at, let our team set you up for success!
• State and Local Regulators – Cannaspire offers support and guidance to state and local regulators, helping them understand and implement regulations related to cannabis in their jurisdiction, including licensing and enforcement.

Cannaspire can help your cannabusiness

Begin by filling out the form below. We will discuss what services your company may need, your business model and scale, and your project budget. Then, we can suggest services with timelines for project delivery and completion. We can partner with a company through an ongoing retainer to provide compliance services on an as-needed basis, or we can provide a quote for services with a scope of work statement, milestones for completion, and deadlines for delivery. Do not wait to get your company complaint. Contact our team today!