OpenGov Partners With Fyllo on Cannabis Regulation Software

As of November, 11 states and Washington, D.C., have legalized cannabis for adults, while 34 have legalized it specifically for medical purposes. In either case, local governments in those states must sort out licensing, planning, zoning and taxation themselves, to accommodate businesses entering a young and burgeoning industry. It’s easier said than done, with new laws varying from one jurisdiction to the next and so many public offices unable to convene in person.

To help local governments manage the process of writing their own policies and checking them against state and federal regulations, the cloud software company OpenGov has entered into a strategic partnership with Fyllo, which makes compliance software for highly regulated industries.

According to a news release today, the partnership will support the creation of a software tool for cannabis licensing, regulatory and compliance tracking, combining OpenGov’s expertise in cloud software for citizen services with Fyllo’s software for making sure local laws comport with all other regulations. The news release explained the partnership as an answer to sheer demand: Since March, Fyllo has detected about 120 cannabis-related announcements across 45 local U.S. jurisdictions, along with a 55 percent increase in local government meetings about marijuana regulation.

“Our partnership will make it easier for governments to keep pace with category growth and accelerate economic development in their communities,” said Fyllo CEO Chad Bronstein in the statement.

OpenGov President David Reeves said in a statement that some of the company’s customers are facing shrinking budgets in the wake of COVID-19 and weighing cannabis as a revenue source, but they don’t know where to begin.

“Fyllo is the market leader in regulatory compliance and will be able to give governments a broad view of the legislative landscape and intelligence about ongoing trends,” he said. “OpenGov will continue to ensure that services such as applying for a license or completing a facility inspection are efficient, safe and seamless for government staffers and community residents.”

With its first foray into cannabis licensing and permitting, OpenGov will find itself in a competitive market with other digital-service companies such as Accela, NIC and CityBase, a subsidiary of GTY Technology Holdings. OpenGov’s focus in recent years has been its ERP cloud software, having acquired four companies in the past five years to improve its products, although it also launched some tools last year for public communications, digital services and remote work during COVID-19.