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The Permitting Vortex: How a Simple Question Turns Into Regulatory Hell

By Patricia Rosi

Coming off the Memorial Day weekend, I thought I would start on a humorous note by sharing our most recent challenge: Convincing local authorities that installing a closed loop, supercritical CO2 extraction system is not akin to opening a nuclear waste facility.

We are at the end of a months-long process of expanding our production facility, and like any such project, there have been minor challenges along the way. But with a smart, flexible team and the support of local and state officials, we managed to resolve all of them on time and on budget – except one.

  • Double the size of our production site? No problem.
  • Install a supercritical CO2 extraction unit? Done.
  • ISO-8 certification? Piece of cake.
  • Getting the final permit approval from the city? Insert the sound of screeching brakes here.

The reason? A safe storage plan for the one (1) gallon of acetone we will keep on site. You read that right; not 100 gallons, but ONE gallon — less than a busy nail salon runs through in a morning.

Just a simple question, or so we thought

It started as a fairly simple classification question, sent via email, borne out of our desire to achieve full regulatory compliance and transparency. Two months later, we were knee-deep in plans, chemical compound formularies, diagrams of molecular atomic structures, schematics, vents, air exchangers, even explosion-proof refrigeration and outlets.

My team and I found ourselves trapped in a permitting vortex.

We answered question after question, debunked assumption after assumption. Days dragged into weeks, and weeks crept into months. Summits were convened.

The city sent the code enforcer, the fire chief, the fire prevention specialist, the electrical inspector. We sent the general contractor, the contractor’s architect, the fire code safety specialist, the clean room expert, the production director, and the Ph.D in analytical chemistry.

And after each of these respective leaders talked to our people and then their people, we finally emerged from the permitting vortex we unwittingly stepped into. After three months, I’m pleased to report we secured our seal of approval.

Just how did this all happen?

We came out the other side older but wiser, our regulators hopefully better educated about the emphasis that responsible cannabusiness place on safety.

As with so many of the challenges facing our industry, the root cause of this particular delay was two-fold:

  1. First, a general lack of understanding about our industry on the part of those tasked with regulating us.
  2. And second, an automatic worst-case-scenario approach on the part of those regulators, simply because we “touch the plant.”

Don’t get me wrong; one of the most rewarding parts of our work is watching and helping this industry mature into a robust, regulated, taxpaying business just like anyone else. In other words, the ongoing normalization of the Cannabis Industry.

Understandably, city authorities want to do the right (and safe) thing. So do we, as do most others in our industry. But in this case, fear and lack of understanding delayed a multi-million dollar build-out process by three months over a one-gallon container of a common and perfectly legal substance.

Fortunately, we had the resources to successfully survive the vortex. But not every start-up would. In this way, burdensome regulations form a barrier to smaller businesses seeking to expand their professional operations.

We look forward to a day when all of our companies are regulated sensibly, but not so restrictively that businesses, and communities, lose jobs, time, and revenue.

Patricia Rosi

Patricia Rosi

Patricia Rosi is CEO of Wellness Connection, Maine’s leading cannabis operator that’s now a model for patient-centric care on the East Coast and beyond. With 80 employees and over $15M in revenue, the Wellness Connection includes four Maine state-licensed dispensaries with state-of-the art cultivation, processing and manufacturing facilities.

Rosi is a cannabis industry trailblazer. Since 2011, she has successfully navigated the challenges of this new industry, collaborating with Maine state officials to create a solid and sustainable policy framework, developing strong business partnerships and expanding all lines of business. She’s now a sought-after advisor to early stage cannabis enterprises across the US, providing insight on best management, production and R&D practices as well as emerging retail and consumer trends.

Rosi has been honored nationally as a pioneer and progressive in the cannabis industry. She’s on the list of the Glass Ceiling Wreckers: 2019 Power Women of Cannabis by Cannabis Business Executive (CBE). This is the third year Rosi has been honored by CBE: She was named the 2017 CBE Most Important Woman in Cannabis and ranked #3 of the CBE 50 Most Important Women in the Cannabis Industry. Also, Rosi has been honored as one of Maine’s top five female CEOs by MaineBiz.

On the national scene, she is an active member of the National Cannabis Industry Association (NCIA) Marketing and Advertising Committee as well as the American Trade Association for Cannabis and Hemp (ATACH). Rosi continues to support policy work in Maine as the state navigates new recreational cannabis laws. She works with the Association of Maine Cannabis Operators (MEACO), Maine Professionals for Regulating Marijuana (MPRM) and Retail Association of Maine.

Rosi champions corporate social responsibility, creating a wellness culture that benefits not only her employees but their communities and patients in need. In 2016, Rosi launched a program dedicated to providing free cannabinoid therapies to patients in hospice care. The Wellness Connection team gives back each year via preferred rates for qualified patients and donates dozens of paid volunteer hours for community non-profits.

Rosi is also a passionate and result-oriented executive with vast global experience in the areas of business management, team-building, marketing, communications and branding. As a citizen of both the US and France, she has decades of experience as a creative leader at both Saatchi & Saatchi and Omnicom. And she built a small, local creative agency into an experiential marketing leader with national clients that included Verizon, Kraft and Procter & Gamble.

This Post Has 3 Comments
  1. Hello Patricia,
    My name is Chad. I’m getting ready to go through a similar situation here in California. Is there any advise or documentation you would be willing to share us with?

  2. I understand the limitations of both your time and this venue. With that said, this article was very frustrating. It reads as “once over lightly” with the broad lesson of “be careful when dealing with regulators.” Not much added to the broader body of knowledge there, and there could have been so much…

  3. Provision of information consistent with what is required under the Risk Management Program (RMP)/Emergency Planning and Community Right-to-Know Act (EPCRA) [as enforced by EPA] should be more than sufficient. Assembly of these packages is fairly simple for knowledgeable regulatory consultants, who can interface with the local regulatory and emergency officials on your behalf to negotiate the necessary data.

    Get in touch!
    – Erik Janus

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