Discover how Paula Savchenko, Esq., helps cannabis businesses thrive with her insights on compliance, multi-state licensing, and the future of cannabis legalization.
Paula Savchenko, Esq., is a prominent attorney and consultant specializing in the cannabis industry, focusing on multi-state competitive licensing and regulatory compliance. With an impressive 85% success rate in securing marijuana business licenses for clients across states like California, Florida, Illinois, and New York, Paula is a trusted expert in navigating the complex and evolving legal landscape of the cannabis sector.
Her deep understanding of regulatory priorities, combined with a strong network within the industry, has positioned her as a key figure in helping businesses establish and expand operations. In addition to her legal work, Paula is a recognized voice in the industry, frequently speaking and writing about cannabis law and policy.
In this interview, she shares insights into her approach to licensing, the importance of regulatory compliance, and the future of cannabis legalization, among other critical topics shaping the industry today.
Ganjly: How do you approach the process of securing competitive cannabis licenses, and what are the key factors that regulators typically prioritize in these applications?
Paula Savchenko: The best approach to tackling a competitive application process is staying current with each state’s perspective on cannabis reform from the Governor to the local communities that our clients desire to operate.
For example, in Virginia’s 2024 legislative session, the legislature was pushing to pass a bill to establish a regulatory framework for their adult-use program but could not compromise with the Governor to have it signed into law. Moreover, even if the state passes legalization in some form, those interested in operating in local cities and counties may find an obstacle in securing real estate in an area they desire due to states allowing municipalities to prohibit cannabis business operations.
Generally, regulators overseeing competitive application processes for cannabis businesses prioritize industry knowledge and experience, as well as financial acumen, history of community outreach and development, and the ability to expand access to less populated areas. Specifically, in the medical cannabis space, regulators want to see that the applicant has set forth a comprehensive business plan to ensure an expansion in patient access, especially in rural areas.
Ganjly: Can you explain the importance of regulatory compliance in the cannabis industry and how it impacts the success and sustainability of cannabis businesses?
Paula Savchenko: Regulatory compliance is key to ensuring a company meets its long-term goals of being a longstanding, successful operation. Even one violation can result in a decline in the company’s reputation not only with the state but also with the communities they serve. However, playing by the rules can be difficult for operators due to the legal gray areas they operate in as cannabis remains a Schedule I drug under federal law. Due to the fragmented legal landscape, it complicates compliance in areas like banking, taxation, and interstate commerce for cannabis operators in each state.
Ganjly: What are some of the common challenges that cannabis businesses face when expanding into multiple states, and how can they navigate these obstacles effectively?
Paula Savchenko: One of the common challenges is the lack of attention given to the legal landscape and community perspective by many clients who have the assumption that if they were successful in one state, the model could be easily replicated in another.
Choosing ideal real estate in a community that is pro-cannabis, while also partnering with local business owners and organizations to have local support is crucial for those who are not used to operating in a state that has a majority conservative approach to cannabis legalization.
Ganjly: How does the legalization of adult-use cannabis in states like North Dakota potentially impact the local economy, and what specific benefits can residents expect to see?
Paula Savchenko: From an increase in tax revenue and job opportunities to lowering criminal justice expenditures, states’ economies will be further stimulated once cannabis is legalized. The 20-page statutory measure on the ballot currently does not address specific tax regulations if voters approve, however, this issue will be handled by the legislature during its next session.
Nevertheless, in Alaska, which has a similar population to North Dakota, the state received approximately $28.3 million in excise tax revenue in 2023. Although Alaska has a history of having higher taxes on its cannabis products, it still demonstrates the significant income a state receives once cannabis is legalized and how it can be allocated to funding various state programs and services.
Ganjly: In your experience, what strategies have proven most effective in gaining public support for cannabis legalization initiatives, particularly in states that have previously rejected similar measures?
Paula Savchenko: From my experience, legalization initiatives that have been successful tend to have the funding behind the campaign, usually from well-known and trusted companies that operate in that state, as well as stricter regulations that were previously proposed.
At times, states can propose measures that are too far-reaching to sway opponents from supporting the measures, so finding a middle ground and compromising from the start may essentially lead the state to the program the campaign intended to implement, to begin with.
Ganjly: Could you discuss the role of home cultivation in the cannabis legalization movement and its significance for both consumers and the broader industry?
Paula Savchenko: Home cultivation is key to ensuring patient access remains at the forefront of the state’s objectives when implementing a cannabis program. Many opponents of legalizing recreational cannabis criticize states’ treatment of medical cannabis patients once legalization is passed, so it is crucial to ensure operators can service both consumers. However, by including home cultivation in the state’s measure, it can ensure not only that patients maintain access to their product, but also guarantee that the rural communities in the state do not go without access to cannabis.
Ganjly: What lessons can be learned from states that have successfully implemented adult-use cannabis programs, and how can these lessons be applied to emerging markets like North Dakota?
Paula Savchenko: With 24 states legalizing the adult use of cannabis, North Dakota regulators can utilize comprehensive regulatory frameworks used in other states and modify them to meet North Dakota’s specifications.
As other states have been the “guinea pigs” in figuring out what works and what doesn’t, North Dakota has precedence to follow as a guideline that earlier states did not. From structuring their cannabis taxes to balance generating revenue while avoiding excessive pricing to investments in local educational and community programs, North Dakota can use other states’ guidelines and modify them to better meet the needs of the state.
Ganjly: How do you foresee the relationship between cannabis legalization and law enforcement evolving, especially concerning resource allocation and addressing other pressing issues like the opioid crisis?
Paula Savchenko: Although law enforcement does have concerns with the legalization of cannabis, removing cannabis as a priority enforcement issue helps better allocate their resources to tackling more pressing ones such as the fentanyl and opioid epidemics.
Several states have allocated cannabis tax revenue to fund public safety initiatives, including training officers on drug recognition, enhancing DUI enforcement programs, and funding programs that are combating illegal cannabis operations. Due to the burden placed on local law enforcement and the benefits the tax revenue may play in funding their program, the relationship between law enforcement and cannabis operators can drastically shift for the better.
Ganjly: As someone who also works in the psychedelic industry, how do the regulatory challenges and opportunities in this space compare to those in the cannabis industry?
Paula Savchenko: Although the psychedelic and cannabis industries face very similar challenges, there is a stark difference in how the programs are utilized by consumers. The psychedelic industry is more heavily focused on the healthcare aspect of their operations.
In contrast to patients who purchase cannabis from a medical dispensary and use their products at home, consumers who are interested in using psychedelics to treat their conditions are required to go to a center to take the substance and undergo treatment with a licensed facilitator. As such, the process is more standardized, and further, the psychedelic industry does not have the dispensing/retail component that the cannabis industry has.
Ganjly: What advice would you give to entrepreneurs looking to enter the cannabis industry, particularly in states with newly legalized markets?
Paula Savchenko: Never stop being a student. With the ever-changing laws and regulations, it is key to take advantage of your downtime to continue learning about not only the regulatory framework of a state’s program but also staying up to date on industry best practices, legislative objectives, and key players in each state. Hone in on your craft and understand the proposed foundation of the program to be an irreplaceable asset to those who wish to enter a market that is uncharted territory.
Thank you, Paula, for taking the time to do the interview. To know more about Paula and her company, check out CannaCoreGrp.com.
