Frequently Asked QuestionsHere are some Frequently Asked Questions about federal compliance for the cannabis industry.
Q: Do I need to prepare for federal cannabis legalization?
A: Due to public safety concerns, economic need, and the upcoming federal elections, the path to cannabis legalization is accelerating, and could occur as early as 2021. The process will undoubtedly be complicated, and as outlined below, it could take as long as two years to receive your federal permit.
A: Proposed federal legislation would require every cannabis cultivator and processor nationwide, to obtain a federal permit and comply with new regulations. Future importers and exporters would also be required to obtain a federal permit.
A: Gathering & preparing all of the information anticipated to be required to be approved for a cannabis manufacturing permit could take anywhere from two months to a year, depending on your knowledge and experience with US Alcohol and Tobacco Tax & Trade Bureau policies and systems. Once submitted, the current wait time, from submission of application to approval for a tobacco manufacturing permit is 368 days. You can expect that to increase significantly as twenty thousand (20,000) current state licensed cannabis producers would be applying at the same time. When you add these up, it could be two years before you receive your federal permit.
A: Below is a list of just some of the information you will need, based on current requirements for tobacco permits. Our experienced consultants anticipate that much more information will be required, as cannabis will be more highly regulated than tobacco.
• Business entity structure
• State documents proving business structure
• Tax ID – EIN
• Background checks on all corporation members and owners with a substantial ownership position, as well as directors and certain key managers
• Proof of state license
• Provide financial surety to ensure that taxes will be paid
• Leases / proof of property ownership
• Site plans, diagrams and premises descriptions
• Signing authority and power of attorney documents
• Source of funds documentation
A: Verde Compliance Partners is uniquely positioned to help companies to prepare for the inevitable federal legalization for cannabis. Our consultants have over 60 years of experience at the highest levels of federal alcohol and tobacco regulatory agencies, as well as experience with other federal and state administrative agencies. This combination of knowledge and experience, along with our analysis of pending legislation, and industry network, allow us to anticipate how the federal government will implement cannabis legalization. We can guide you through the preparation and application for a federal cannabis permit, as well as assist you with compliance with federal regulations post legalization.