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JURI615: Corporate Compliance Survey
Article Review
Akeema Wignall
Liberty university
Professor Nicholas Myles
February 4, 2023
JURI615: Article Review
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For many years, the topic of legalization of cannabis has been on the American agenda.
California, in particular, became the first state to allow medicinal cannabis use when voters
passed the Compassionate Use Act in 1996. Today, cannabis is legal in California for both
medicinal and adult (recreational) use(californian). After legalization: Cannabis, environmental
compliance, and agricultural futures address issues such as the intersections of cannabis
legalization, environmental compliance, and the potential impact on agricultural futures. There
are multiple issues within this article. One is environmental regulations and cannabis cultivation
placed on particularly small farmers, as there are some challenges the state faces in its transition.
Creating a solid-state regulatory enforcement mechanism to combat violations of federal
enforcement priorities is significant, given the ramifications of marijuana legalization in the
state. Due to the legalization of cannabis, the size of both licensed and unlicensed farms is
increasing, potentially raising environmental pressures Michael Polson et al., After legalization:
Cannabis, environmental compliance, and Agricultural Futures, 126 Land Use Policy 106531
(2023). Small-scale farmers are increasingly challenged to keep up with environmental
regulation as the new regulatory regime favors larger-scale cultivators Id. Supportive research
has shown that farms with over 1500 plants are twice as likely to apply for a permit than farms
with less than 500 plants, and from 2018 to 19, indicate that only 2% of small farms are
becoming permitted compared to 15% generally Id. The other issue is successfully transitioning
farmers to legal economies and establishing smaller farms as the foundation of a legal cannabis
industry as the state takes the necessary procedure to apply these methods in California Id. The
article then went on to address that the legalization’s benefits hinge on whether government
agencies can support compliance among California’s cannabis farmers, the vast majority of
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whom currently run independent, small-scale operations and cultivate areas less than an acre that
can sometimes hurt them than have any benefit Id.
The article was able to touch on specific problems that are hindering small-scale cannabis
farmers, such as the state's history with the prohibition of the drug once upon a time. In the past,
prohibition incentivized farmers to locate in remote sites and limit farm size to evade detection,
especially in the northern region of California and the Sierra Nevada foothills, characterized by
remote, sparsely populated communities, declining extractive industries, and long, dry growing
seasons Id at 2. This incentivizes illegal farmers to these remote areas where their cash crop
cultivates a footprint expanded with the passage of medical cannabis legislation in 1996 Id. This
is where the issue lies: when in remote areas, cannabis agriculture can cause notable
environmental impacts, including deforestation, water diversion from rivers and streams, and
pollutant discharge Id. The article stumbles on the issue of why many cannabis farmers,
especially at more minor scales, are not complying. In the early stages of this process, many of
the state's cannabis farmers continue to operate illicitly, and there is a reason for this Hekia
Bodwitch et al., Why comply? farmer motivations and barriers in cannabis agriculture, 86
Journal of Rural Studies 155–170 (2021). Compliance from small-scale framers was hindered by
two significant factors: high costs and stringent, confusing, and mercurial regulatory
requirements Michael Polson et al., After legalization: Cannabis, environmental compliance, and
Agricultural Futures, 126 Land Use Policy 106531 (2023). As a result of this issue, the policy
efforts to mitigate the administrative burdens of compliance, such as streamlining permitting
processes, extending agricultural support services, and supporting farmer collectives, warrant
further attention to enhance compliance, public safety, environmental outcomes, and rural
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development in cannabis cultivating communities Hekia Bodwitch et al., Why comply? farmer
motivations and barriers in cannabis agriculture, 86 Journal of Rural Studies 155–170 (2021).
There is one In particular, "administrative burdens," or costs related to learning and complying
with stringent standards, impeded compliance that can also be ameliorated through policy
adjustments Michael Polson et al., After legalization: Cannabis, environmental compliance, and
Agricultural Futures, 126 Land Use Policy 106531 (2023).
To better understand why these regulations are significant in California, as to do with the
increasing number of illegal farmers who are unlicensed, potentially raising environmental
pressures, Id at 1. California has made cannabis much more problematic and more expensive by
requiring analysis under the California Environmental Quality Act (CEQA) to obtain an annual
license Steven L. Hoch, What the California environmental quality act means for cannabis
operators in the Golden State: News & Events: Clark Hill PLC Clark Hill,
https://www.clarkhill.com/news-events/news/what-the-california-environmental-quality-act-mea
ns-for-cannabis-operators/ (Feb 4, 2024). Numerous regulations encompass a wide range of
regulations imposed on California cannabis farmers, from environmental regulations to licenses
and permits for cannabis farmers that are required for cultivating, and we will be reviewing
them. Cannabis, a cash crop in the state of California, elevated the economy; the California
Department of Cannabis Control has its own set of procedures and requirements for licensing Id.
Some of these requirements range from the cultivation of cannabis to seeding; everything about
cannabis is regulated in the state of California. However, one of the most valuable permits in
cannabis is related to water, which can only be issued by the Fish and Game Department or one
of the California Regional Water Quality Control Boards Id. In California, the final confirmation
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of the water right remains effective as long as its conditions are fulfilled and water continues to
be reasonably beneficial California State Water Resources Control Board, Cannabis cultivation
water rights SWRCB.gov,
https://www.waterboards.ca.gov/water_issues/programs/cannabis/cannabis_water_rights.html#:~
:text=All%20cannabis%20cultivators%20that%20plan,31%20of%20each%20calendar%20year.
(Feb 4, 2024). Another environmental regulation on cannabis farmers is a cultivation license; this
allows farmers (cultivators) to grow all of the cannabis plants that are harvested, sold as flowers,
and made into products Department of Cannabis Control - State of California, Cultivation
Department of Cannabis Control, https://cannabis.ca.gov/licensees/cultivation/ (Feb 4, 2024). In
California, water rights for cultivators may be acceptable for cannabis cultivation if it (1)
includes irrigation as a purpose of use and (2) provides for adequate storage of water to irrigate
during the forbearance period California State Water Resources Control Board, Cannabis
cultivation water rights SWRCB.gov,
https://www.waterboards.ca.gov/water_issues/programs/cannabis/cannabis_water_rights.html#:~
:text=All%20cannabis%20cultivators%20that%20plan,31%20of%20each%20calendar%20year.
(Feb 4, 2024).
The authors of this article imagine that cannabis can lead to a new type of
environmentally sensitive agriculture that supports many farmers and communities Michael
Polson et al., After legalization: Cannabis, environmental compliance, and Agricultural Futures,
126 Land Use Policy 106531 (2023). The state of California imagines that allowing illegal
cannabis farmers to participate in the market would allow them to carefully survey the
environmental and economic impact of the cash crop on the state of California. One of the two
JURI615: Article Review
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solutions the state brought forth was reducing administrative burdens and increasing farmer
compliance, particularly for small farms Id at 2. The first initiative that the state took was to
lower the learning cost of farmers who wanted to go the legal route. This initiative would
decrease the cost of learning about regulatory programs and applying for approval under them by
distributing information that will lower compliance levels within farmers, reduce
administratively, and promote environmental stewardship Id. The government would have the
opportunity to conduct more research regarding water usage, etc., based on evidence and no
longer on scenarios. California has dedicated 110 million dollars over 11 years to ensure this
research will be carried out. The second solution that was brought forth is the cost of compliance
within the farm community, which is the cost of meeting substantive requirements of regulations.
Compliance costs ensure that small and marginalized farmers' compliance costs can be reduced
with equity initiatives that facilitate compliant market access in the long run. These compliant
costs can be initiated through tax incentives or stewardship funds that are there to encourage
affirmative efforts by farmers to undertake restoration and advance the sustainability of shared
natural resources Id.
The article's conclusion calls for a different approach when approaching situations such
as this in California regarding environmental regulations. The state is using the implementation
of cannabis into the legal market as a new type of environment-sensitive agriculture. The article
imagines that camibis, the most valuable cop in California, might beagle to facilitate other crops
into the legal market and other sustainable, equitable agriculture practices throughout the state.
Though the state of California has decided to support cannabis-related livelihood and policy, the
state might, in the long run, see the perils of legalization as it relates to the socio-environmental
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crisis. The state of California's bold move to legalize cannabis, as we can see, had a devastating
effect on small farmers in the region. Though this was not the state's intent, it implemented two
initiatives to help transition small cannabis farmers into the legal sector. It is hard not to see the
implication of California's legalization of their cash crop on smaller farmers as most of them who
want to go legal cannot cover the extreme cost of all the regulations that the state set forth. There
should have been some slow implementation for small farmers who need more resources and are
entering legal economics. One of the many benefits that the state has been able to gain from the
legalization of cannabis is the opportunity to survey the implications of farming cannabis and
how that has affected the environment; this will help guide the state in applying regulations that
fit their understanding of the effect of cannabis is better known. The policy decisions
surrounding legalized recreational marijuana are complex Andrew Baker et al., Legalizing
marijuana in California: A review of policy considerations ...,
https://law.stanford.edu/index.php?webauth-document=publication/988796/doc/slspublic/SLS%2
0Marijuana%20Policy%20Practicum%20Report.pdf (last visited Feb 5, 2024). If other states and
policymakers are looking to legalize cannabis, the best of those states ensure that the regulatory
system reflects the values and objectives of Californians Id.
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Reference
Andrew Baker et al., LEGALIZING MARIJUANA IN CALIFORNIA: A REVIEW OF POLICY
CONSIDERATIONS ...,
https://law.stanford.edu/index.php?webauth-document=publication/988796/doc/slspublic/SLS%2
0Marijuana%20Policy%20Practicum%20Report.pdf (last visited Feb 5, 2024).
California State Water Resources Control Board, CANNABIS CULTIVATION WATER RIGHTS
SWRCB.GOV,
https://www.waterboards.ca.gov/water_issues/programs/cannabis/cannabis_water_rights.html#:
~:text=All%20cannabis%20cultivators%20that%20plan,31%20of%20each%20calendar%20yea
r. (last visited Feb 4, 2024).
Department of Cannabis Control - State of California, CULTIVATION DEPARTMENT OF
CANNABIS CONTROL, https://cannabis.ca.gov/licensees/cultivation/ (last visited Feb 4, 2024).
Hekia Bodwitch et al., Why comply? farmer motivations and barriers in cannabis
agriculture, 86 JOURNAL OF RURAL STUDIES 155–170 (2021).
Michael Polson et al., After legalization: Cannabis, environmental compliance, and
Agricultural Futures, 126 LAND USE POLICY 106531 (2023).
Steven L. Hoch, WHAT THE CALIFORNIA ENVIRONMENTAL QUALITY ACT MEANS FOR CANNABIS
OPERATORS IN THE GOLDEN STATE: NEWS & EVENTS: CLARK HILL PLC CLARK HILL,
https://www.clarkhill.com/news-events/news/what-the-california-environmental-quality-act-me
ans-for-cannabis-operators/ (last visited Feb 4, 2024).
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