Hadhinah Felice, Industry Compliance Expert – Interview Series

When it comes to the utmost proper compliance of the numerous and almost never-ending amount of cannabis regulations in Nevada, few cannabis professionals have such an extensive background in both understanding and interpreting those complex matters into action as Industry Compliance Expert Hadhinah Felice. Along with providing much-needed compliance assistance for a number of prominent cannabis brands in Nevada, Felice, who’s originally from Malaysia, is a strong advocate for cannabis reform on all levels of government in both Malaysia and the US simultaneously.

Tell me about yourself and how you first got into cannabis.

Hi Josh! I’ve been a dedicated cannabis patient for a long time. Back in 2018, I was diagnosed with Major Depressive Disorder and was put on a lot of medication. At that time, I was trying to rebuild my life in Malaysia, but things didn’t go as planned, so I moved back to the USA. The medications made me feel disconnected, so I turned to cannabis as a more natural alternative. Eventually, I was able to wean off my medications and now rely solely on medical cannabis. My experiences, along with the connections I made with some of my favorite budtenders at The Apothecarium, sparked my curiosity about a career in cannabis.

A few months after returning to the USA, I landed a job at a cultivation facility, starting with clerical work. From there, I explored various roles like packing, trimming, and tending to the plants. My interest in Metrc began when I watched a coworker log harvests into the seed-to-sale tracking software. I was so intrigued that he let me shadow him and learn the process firsthand. Around that time, the CCB was established, and new regulations were introduced. I was fascinated by the shift from Nevada’s Department of Taxation to the CCB, so I took the initiative to learn about compliance. That’s how I found my way into the industry.

How did compliance become your specialty in cannabis?

I spent 5 years in boarding high school, where I had the opportunity to serve as a school prefect. In this role, I was responsible for enforcing the rules and acting as a liaison to the school’s disciplinary board. It came naturally to me, as I was always known for being a stickler for rules. When I began my career in the cannabis industry, I was immediately curious about how it was regulated and how the laws were enforced. I started digging into the CCB website and studying the Nevada Cannabis Compliance Regulations. Before long, coworkers began coming to me with questions about the regulations and Metrc. It quickly became my specialty, and I’ve been focused on compliance ever since.

Based on your years of experience in compliance for cannabis brands of various sizes, what are the most common compliance issues that arise for Nevada cannabis businesses? And what are common ways that cannabis brands either knowingly or unknowingly cause themselves to become non-compliant.

I regularly reviewed cases of violations, and several common issues stood out. One frequent problem is owners not having an active agent card, unaware that even if they’re not physically present at their facilities, they are still required to maintain one. The next one is failure to keep any required records such as cannabis plants/waste destruction log, including seed-to-sale tracking requirement (Metrc and other third-party integration software). Other common violations include employees without active agent cards, owners and employees lying to CCB agents during audits and inspections about agent cards, and untagged cannabis plants and products in the vault.

New cannabis brands often lack the knowledge to properly set up their operations, which can lead to unintentional violations in advertising and marketing. For example, packaging, marketing, and advertising materials must be approved by the CCB before release to ensure they don’t resemble candies or toys that could appeal to children or those under 21. Owners sometimes get too excited and forget the necessary steps before their products can hit the shelves.

Another common issue is owners not requesting CCB approval for facility modifications before starting renovations. They often proceed with construction without permission because they’re eager to move forward. These actions can result in hefty fines and, in more severe cases, license suspension or revocation.

What advice would you have for cannabis companies to become more compliant? Are there certain easy steps they could take to ensure compliance?

Always hire compliance managers who can do more than just work with Metrc! Many so-called “compliance managers” underestimate the importance of thoroughly understanding and keeping up with the regulations. This isn’t a role just anyone can fill. Companies need a compliance team that can stay on top of the constantly changing regulations and provide immediate advice on emerging issues, with a solid understanding of what the CCB looks for during audits and inspections. If a company truly cares about compliance, they need to start by hiring the right people—it’s the foundation of success. Starting off right means they’ll only need to maintain compliance moving forward. Starting off wrong means they’ll be constantly cycling through compliance managers while racking up civil penalties. This isn’t an area to cut costs. Many companies end up paying tens or even hundreds of thousands in fines because they didn’t hire the right team from the start.

How does Nevada cannabis regulation/compliance compare to other states? Is the Silver State more strict on operating businesses compared to other states or not so much?

Nevada is arguably one of the strictest states in the country when it comes to cannabis regulations. Even Metrc management has recognized Nevada as the model state for developing software functions based on our comprehensive regulations. However, there’s a general consensus that these regulations could be more flexible to better support small businesses. Instead of imposing high costs just to ensure safe operations, a more relaxed regulatory approach could help these businesses thrive.

As a strong advocate for cannabis reform in both America and on the global scale, I wanted to ask about cannabis law in Malaysia. What is the current legal situation and cannabis and do you see those laws ever being reformed? Given the possible death sentences for dealers, it appears on paper that their laws are far more draconian than any American cannabis law.

As of 2024, being arrested with more than 200 grams (7 ounces) of cannabis in Malaysia classifies you as a drug trafficker, a crime punishable by death. Those caught with 50 grams (1.5 ounces) or less face imprisonment for up to 10 years. Cannabis restrictions in Malaysia date back to 1952, during British colonial rule, and have remained unchanged since. I have worked with several cannabis nonprofits in Malaysia and across Southeast Asia to tirelessly advocate for reforming these harsh laws. However, the government continues to believe that the War on Drugs is effective and that cannabis use will lead to abuse, even if regulated. I’ve repeatedly shared with these bodies that the U.S. experience proves otherwise, but the government claims it lacks the resources to research cannabis decriminalization. Under the previous Prime Minister, there were rumors of potential decriminalization, but no reforms were initiated. It could be decades before we see any meaningful change.

As someone with an extensive background in compliance, how do you see federal rescheduling of cannabis impacting compliance and regulation on both the state and federal level?

Rescheduling cannabis would only make the punishment less severe, but it wouldn’t bring about significant changes. Even with rescheduling, cannabis offenses would still be prosecuted at the federal level, meaning compliance and regulations would largely remain the same. For meaningful impact, descheduling needs to occur, as it would open the door for nationwide sales and significantly benefit operators. This would also lead to a shift in how cannabis laws and regulations are enforced, potentially making them less strict than they are now.

Thank you for joining us Hadhinah! For more information about Hey Bud, LLC and Felice’s expertise, please visit https://heybudllc.com/