Marijuana Business Factbook 2019

65 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. State-By-State: Legal Overview, Market Data and Outlook | Chapter 2 MJBIZDAILY.COM Business regulations Heavy. Referred to as a "low-THC oil" program rather than a medical marijuana program, House Bill 324 developed strict rules for the state’s future six producer/ processors and delegated authority for dispensaries to the state Board of Pharmacy, which will develop a special low-THC oil dispensing license for pharmacies. All marijuana must be grown indoors and must not be produced with pesticides. Some of the restrictions include plans for chain of custody of marijuana plants and oil must be available for review by the Georgia Bureau of Investigation, 24-hour security surveillance is required with video footage kept at least 45 days, licensees must submit plans detailing jobs, salaries and expected economic impact of their business as well as letters of support from local government entities. Any business must include 20% participation by women, minorities and veterans. The University of Georgia and Fort Valley State University will be licensed to cultivate and manufacture low-THC oil in addition to six private businesses. BUSINESS TAXES & FEES Application Fees Class 1 producer/processor (<100,000 sqft cultivation space): $25,000 Class 2 producer/processor (<50,000 sqft cultivation space ): $5,000 License Fees Class 1 producer/processor: $200,000 (new); Class 1 producer/processor: $100,000 (renewal) Class 2 producer/processor: $100,000 (new); Class 2 producer/processor: $50,000 (renewal) Working capital/escrow/ bond requirements Class 1 producer/processor: $2 million working capital plus $1.5 million bond Class 2 producer/processor: $1.25 million working capital plus $625,000 bond Tax requirements Sale of low-THC oil is subject to all applicable sales and use taxes Tax collections in 2018 N/A―sales not yet started State tax collections in 2018 N/A