Marijuana Business Magazine April 2019

Marijuana Business Magazine | April 2019 118 For information about cannabis regulations in other markets, order the Marijuana Business Factbook 2018 at Main measures MMJ business regulations State tax requirements Sampling of state licensing & application fees Senate Bill 862: possession and use (2000) House Bill 321: authority to license and regulate businesses (2015) House Bill 1488: amending standards and deadlines to streamline implementation (2017) The state has capped MMJ business licenses— currently set at eight—and the number of dispensaries each company can operate. Licensing fees are relatively high and include requirements for minimum working capital/funds in escrow— including $1 million per license and an additional $100,000 per dispensary. Dispensaries must grow their own cannabis, and only indoor cultivation is allowed. Dispensary rules cover all aspects of operations, including hiring, security, seed-to-sale inventory tracking, recordkeeping, 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. The state’s 4% general excise tax applies to MMJ. APPLICATION Dispensary: $5,000 Testing lab: $3,000 LICENSE Dispensary: $75,000 new; $50,000 annual renewal Testing lab: no separate license fee, but $3,000 annual renewal fee   What to watch After years of delays, the first dispensary opened in Hilo, on the Big Island of Hawaii, in January 2019. Three more dispensaries are slated to open across the island in 2019. An additional dispensary planning to open in Honolulu will bring the state’s number of dispensaries to 12. Hawaii launched a reciprocity program in 2019, allowing MMJ patients from other U.S. states to obtain a 60-day temporary medical card while visiting Hawaii. Out-of-state patients must have a valid card and ID from an MMJ state and must be receiving treatment for one of Hawaii’s 15 qualifying conditions. Out-of-state patients may possess up to 4 ounces of MMJ and may apply for a temporary card twice per calendar year. Market AtA Glance | Hawaii After a slow start, Hawaii’s medical marijuana program is thriving. Although the state’s medical marijuana cultivation program dates to 2000, sales weren’t legalized until 2015, with the first dispensaries opening in August 2017 on Maui and Oahu. In January 2019, after years of delays, the first dispensary opened for sales on the island of Hawaii. Other facilities slated to open in 2019 will give the Aloha State’s 24,000-plus patients access to 12 dispensaries across four islands. The new dispensaries are opening just in time to take advantage of Hawaii’s out-of-state patient reciprocity program. The program will allow U.S. visitors with a valid medical marijuana card to apply in advance of their visit to Hawaii to obtain a temporary MMJ card, provided they are being treated for one of the state’s 15 qualifying conditions.