Navigating Government Relations in the Cannabis Sector

Hey there, let's chat about how cannabis gets political. When you're knee-deep in the cannabis industry, you've got to keep up with all the ins and outs of federal, state and regional laws. I know it's a lot to juggle when you're running a business, but here's the deal ignoring the policies around cannabis can land your business in hot water. You could get left in the dust by regional legislature changes or, worse, get slapped with non-compliance penalties. So we had to sit down with Scott Rutledge, a communications pro, to pick his brains about why it's crucial to engage with government in the cannabis world, how to get your voice heard in cannabis legislation and the top three things to remember when hiring a government affairs whiz. Now, if you're scratching your head over what government relations actually are, don't fret. They're all about influencing public policies and buddying up with political influencers to get things done in your industry, whether that's locally, regionally or nationally. It's like a branch of PR, but with a focus on how businesses and organizations can work effectively and positively with the government. Scott Rutledge puts it this way you might know what you want to do, but making it happen at the government level. That's where government affairs specialists step in. Now why should you care about government affairs if you're in the cannabis business. Well, they're crucial for any business, but even more so for the cannabis industry. Here's why you need to know who's calling the shots for your business and industry.

Keeping an eye on the law and regulations is key, especially when changes could impact your business. You can play a role in shaping the laws and regulations in the ever-growing cannabis industry. Being proactive doesn't mean you're always pushing for change. It means you're in the know about what's happening in your industry and how it affects you. So how about those privileged cannabis licenses? These babies are heavily regulated and the rules can change from state to state, region to region. To keep your license, you need solid relationships with your local officials, why, with privileged licenses, especially limited ones, even tiny details can risk revocation. Knowing the right folks can come in handy when you need things like land use approvals, zoning permissions, permits or just advice on staying compliant. So cultivating those relationships definitely worth it. Now you might be thinking how can I make a difference in cannabis legislation? Well, if you've got a handle on the compliance for your privileged cannabis license, you could help pave the way for the next wave of cannabis business owners.

Teaming up with a government affairs rep, who has a solid relationship with state legislators and local officials, can give you a leg up. They can help push your initiatives and influence local rules and regulations. Your chosen specialist doesn't need to be a cannabis guru. They just need to be able to clearly communicate your goals and make sure you get the votes or approvals you need.

But what if you don't want to spend money on government affairs? That's a valid question. No cannabis entrepreneur is excited about adding another expense to their business. But think about it. Not having a government affairs strategy could cost you more. In the long run it could mean missed opportunities in legislation or regulations that don't work in your favor.

Remember, government affairs give your business clout, that's, influence or power in your sector. The can of businesses you see with political clout didn't get there by accident. They invested in government affairs. With good government affairs your business stays competitive, no matter who's making the decisions or which party is in control. It keeps you focused on your business goals, not just the latest political whim. Scott Rutledge says if you don't invest in government affairs and political strategy, you won't know what you don't know. You won't have the knowledge of what's currently happening to your industry and how to address it.

To wrap things up, here are three final tips on hiring government affairs for your cannabis business. First, find the right person. If you can afford an in-house government affairs specialist, start there. This person it needs to be all about politics, no compliance, manage campaign budgets and understand how laws are being drafted and how they'll affect your business. Second, go local Partner with someone who knows your state and local legislation inside and out.

Government affairs are all about relationships. A good lobbying firm in California won't do you any good. If your business is in Illinois, your in-house specialist should be able to meet with elected officials, know your business inside and out and speak powerfully on your behalf. They'll also want to coordinate with local government affairs specialists who have the best relationships in each jurisdiction you work in. Third, be resourceful. If you can't afford an in-house political specialist or don't see it as a priority, look for professional services that can assess your political strategy and help you build relationships. Ask companies you trust who they work with and why, and always get at least two to three proposals when hiring professional services for your government affairs needs.

Alright, that wraps up our deep dive into the political world of cannabis. Remember, navigating the complexities of this ever-evolving industry doesn't have to be a solo mission. Investing in government affairs, whether in-house or external, isn't just a business expense. It's a strategic move that could make all the difference, whether you're just starting your journey or looking to expand and influence legislation, remember the importance of local knowledge, relationship building and staying in tune with the regulatory environment. The power to shape the future of the cannabis industry is in your hands. Thanks for tuning in to our podcast today. If you found this insightful, be sure to share it with other cannabis entrepreneurs. Stay informed, stay proactive and let's continue to drive the cannabis industry forward together.