Marijuana Business Magazine January 2019

Marijuana Business Magazine | January 2019 28 Michigan On Dec. 6, Michigan became the latest state to officially legalize the recrea- tional use of marijuana, but it’s initially only for adult possession and use–not commercial sales. The start of what is expected to be billion-dollar-plus com- mercial industry is still more than a year away, but businesses are positioning themselves in anticipation. Missouri State voters approved business-friendly Amendment 2 to legalize medical marijuana. Many industry stakeholders considered Amendment 2 the most favorable to businesses of the three MMJ initiatives on the ballot because of its relatively low tax rate of 4%, generous number of business licenses and physi- cians’ discretion in recommending MMJ. According to MJBizDaily projections, Amendment 2 could lead to $175 million-$275 million in annual dispensary MMJ sales within the first several years. Montana State regulators set the maximum amount of space that medical cannabis pro- viders are allotted per patient at 30 square feet, causing overproduction con- cerns among licensed marijuana companies. The state health department set the amount for square footage for each registered patient while finalizing rules for the medical marijuana program. Montana’s new rules for medical cannabis also include a new tax, lab testing charges and steep licensing fees. New Jersey State lawmakers were forced at the last minute to abandon efforts to pass legislation legalizing recreational marijuana in 2018. They’re expected to take up the matter again in 2019. Gov. Phil Murphy and lawmakers reportedly failed to agree on a tax rate for marijuana before the legislative clock ran out in December. In November, separate panels in the Senate and the Assembly had approved identical legislation and sent it to the full Legislature for a vote. New Mexico A New Mexico judge struck down the state-imposed limit on the number of plants medical marijuana producers can grow, calling the 450-plant limit “arbitrary and capricious.” Under the cap, vertically integrated MMJ businesses were forced to buy plants from the wholesale market because they couldn’t grow enough to stock their dispensaries. The plant limit also was blamed for high MMJ prices and product shortages. Business owners, who’ve been paying $2,000 per pound or more for wholesale cannabis flower, think the elimination of the 450-plant limit will boost supplies and drive down prices. Industry Developments | International & State