Author: Joy

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The Fyllo Regulatory Database creates unparalleled visibility at every level of government with access to more than 800,000+ files and entries addressing regulations across the United States. Today’s leading MSOs, SSOs and law firms rely on Fyllo to accelerate research, track licensing opportunities and make better decisions. To learn more or schedule a demo, please visit hellofyllo.com.

Voters in both Maryland and Missouri have approved initiatives legalizing adult-use cannabis, following this year’s midterm elections. Adult-use sales could begin as soon as July 1, 2023, for Maryland citizens over the age of 21, and as soon as February 6, 2023, for Missourians. Missouri’s Marijuana Legalization Initiative calls for the automatic expungement of criminal records for low-level cannabis offenses, whereas Maryland legislation passed in the spring addresses the reduction of marijuana-related possession penalties and sentences.

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.

The Fyllo Regulatory Database creates unparalleled visibility at every level of government with access to more than 800,000+ files and entries addressing regulations across the United States. Today’s leading MSOs, SSOs and law firms rely on Fyllo to accelerate research, track licensing opportunities and make better decisions. To learn more or schedule a demo, please visit hellofyllo.com.

The Humboldt County Board of Supervisors has suspended Measure S, eliminating the County’s tax on cultivation for two years. At the November 1st meeting, Supervisors voted (3-2) to suspend tax payments for the cultivation year 2022, billing them for 2023, and for the cultivation year 2023, billing them for 2024. Additionally, all outstanding payments are deferred until October 2023, with related penalties waived.

Increased concern over the high rate of tax delinquency, believed to be the result of over-taxation and overregulation of the cannabis industry, was influential in the decision to temporarily eliminate the tax, which was previously reduced by 85% in early 2022.

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.

The Fyllo Regulatory Database creates unparalleled visibility at every level of government with access to more than 800,000+ files and entries addressing regulations across the United States. Today’s leading MSOs, SSOs and law firms rely on Fyllo to accelerate research, track licensing opportunities and make better decisions. To learn more or schedule a demo, please visit hellofyllo.com.

Congress will hold a hearing to examine the benefits of decriminalizing cannabis at the federal level which includes “addressing racial disparities in the criminal justice system, improving treatment options for veterans, and allowing cannabis companies to access traditional banking services.” The hearing follows President Biden’s announcement last month, to issue a pardon to individuals convicted of simple possession of cannabis under federal law and review the scheduling of cannabis under the Controlled Substances Act.

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.

On election day the Show-Me state and Maryland joined a growing list of US states where recreational marijuana is now legal for adults. In a move that can only be viewed with envy by cannabis operators in New York state officials have announced an ambitious goal of starting recreational cannabis sales by February 2023.

Missouri voters approved Amendment Five with a comfortable 53% of the vote on November 8th. It’s been only two years since the first medical cannabis dispensary opened its doors on October 17th, 2020. If sales do indeed begin in February, it will be the fastest turnaround from the start of medical cannabis sales to recreational sales beginning of any state program by some distance. Arizona quickly converted its medical market to recreational sales after voters approved an initiative in 2020; sales began by the end of January but had a mature medical market in existence for many years previous.

What will the new market look like for cannabis operators?

194 medical dispensary licenses approved to operate with 182 currently operational in geographically divided into eight districts around the state. Existing medical marijuana dispensaries will also be first in line to start serving adult consumers with dual licenses. Applications open on December 8th and officials have 60 days to approve or deny.

The Missouri Division of Cannabis Regulation under the Department of Health and Senior Services will also be accepting applications in June of 2023 for 144 micro-business licenses. These licenses will be determined through a lottery system, with priority given to low-income applicants and people who have been disproportionately impacted by drug criminalization.

A maximum of 62 cultivation facilities and 88 manufacturers will be initially permitted under the law.

The initiative will impose a six percent tax on recreational cannabis sales.

Regulators can create rules around advertising, but they cannot be any more stringent than existing restrictions on alcohol marketing.

Local jurisdictions will be able to opt out of permitting cannabis microbusinesses or retailers from operating in their area if voters approve the ban on the ballot.

Midwestern Cannabis Powerhouse?

Missouri’s medical cannabis program brought in just over $160 M in total sales in its first twelve months of operation and quickly accelerated from there. As of September 2022, another $378 M had accumulated. Projections vary but most expect Missouri to exceed total sales of $1 Billion within three years of adult-use sales beginning.

Tourism and out-of-state residents

Illinois shares a large border with Missouri and since opening its cannabis market consistently reports more than 30% of its sales are from out-of-state residents from surrounding prohibited states. More than half of Kansas residents live near the border with Missouri with no legal access to cannabis. Iowa, Kentucky, and Tennessee fall into the same category. Each of these states has debated and so far turned down the opportunity to legalize medical or adult cannabis – will Missouri’s successful cannabis marketplace show them the way?

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.