Marijuana Business Factbook 2019

69 © 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. The state has a cap on MMJ business licenses and the number of dispensaries each company can operate. Licensing fees are relatively high and include requirements for minimum working capital/funds in escrow, and dispensaries must grow their own cannabis. Dispensary rules cover all aspects of operations including hiring, security, seed-to-sale inventory tracking, record-keeping, transportation, advertising, cultivation, processing and lab testing. Businesses are also subject to inspections and are required to submit audited financial statements to the state each year. BUSINESS TAXES & FEES Application Fees Dispensary: $5,000 Testing lab: $3,000 License Fees Dispensary: $75,000 (new); $50,000 (annual renewal) Testing lab: $3,000 annual renewal Working capital/escrow/ bond requirements $1 million in working capital or escrow for each license, plus $100,000 for each retail dispensing location permitted under the license State tax requirements Hawaii’s standard General Excise Tax of 4% will be applied to medical cannabis sales plus county excise tax State tax collections in 2018 Not available SUPPLY CHAIN DYNAMICS Dispensary structure For-profit permitted Number of dispensaries allowed 16―the state has awarded licenses to eight companies, each of which can open up to two dispensing and two cultivation sites. Number of dispensaries operating in early 2020 12