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New Mexico cannabis sales hit nearly $40 million in first month

New Mexico cannabis sales hit nearly $40 million in first month

by | May 4, 2022 | 420 Culture & Travel, Blog, Business, Cannabis Business, Cannabis News, Culture, Industry News, Legalization, Marijuana

New Mexico cannabis sales revenue numbers

In its first month of recreational cannabis sales, New Mexico brought in nearly $40 million in revenue.

After launching its legal cannabis industry on April 1, the state made over $4 million in its opening weekend. Through the rest of the month, adult use sales across 40 cities in New Mexico sold $22 million worth of cannabis products.

The remaining $17 million was medical cannabis sales.

Medical cannabis sales are exempt from taxes unlike recreational sales, so there was no tax revenue generated from the $17 million in sales for the month. The majority of the state’s recreational sales were in Albuquerque, home to roughly 564,000 residents.

The city alone sold nearly $15 million in cannabis in April. The next highest revenue generated was in Las Cruces at only $2 million in adult use sales.

Las Cruces is also home to the state’s first licensed cannabis lounge where consumers can enjoy cannabis in a public setting.

New Mexico communities that border Texas also saw a fair amount of sales in the first month of adult use cannabis in the state. Hobbs and Sunland Park sold $1.7 and $1.4 million respectively, including medical and recreational cannabis sales.

An analysis from Sun-News found that Sunland Park had the third highest sales per capita, likely due to “cannabis tourism” from Texas and Mexico.

New Mexico cannabis sales are taxed at 12% for adult-use, plus additional taxes from local jurisdictions. Final tax revenue numbers won’t be announced until May 25, but with current data it is expected that the state will make about $2.6 million in tax revenue for the month.

Additionally, the 12% excise tax rate on adult-use cannabis sales is set to increase to 18% in 2025. This is still a lower tax rate than neighboring states Arizona and Colorado.

It is likely that the 4/20 holiday helped to boost recreational sales in the New Mexico’s first month. However the state’s director of the Cannabis Control Division, Kristen Thomson, is still satisfied with how the state performed and anticipates continued growth in the future.

“New Mexicans showed up on April 1 ready to support local businesses selling high-quality New Mexico products, and they’re still coming,” Thomson wrote.

“Thanks to hard work by the dedicated people working in the industry, supply easily met consumer and patient demand. New Mexicans have a lot to be proud of in the launch of this new industry, which is already adding value to the state’s diverse economy.”

The CCD has projected that the New Mexico cannabis industry will create up to 11,000 jobs statewide, with $300 million in sales and $50 million in tax revenue in its first year.

California cannabis farmers markets? New bill would make it possible

California cannabis farmers markets? New bill would make it possible

by | Apr 29, 2022 | Blog, Business, Cannabis Business, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization

California cannabis farmers markets could become a thing

It is not secret that small cannabis farms in California have had a rough few years. A new bill aims to help them out.

A new bill introduced into the Assembly Business and Professions Committee on Tuesday (4/26/22) would allow small scale cannabis farmers to sell their products at farmers markets in California. Introduced by Assembly member Jim Wood, he has seen the issues that small cannabis operations have dealt with and wants to give them a hand.

“It is no secret that cannabis businesses throughout the state are struggling, whether it’s taxes, compliance costs, competing with the illicit market or other challenges, but the focus of AB 2691 is to help legal cannabis farmers who grow less than 1 acre of cannabis get consumer recognition for their unique products, much as has been done for craft beer, artisanal wine and other family farm agricultural products. Giving these smaller farmers opportunities at locally approved events to expose the public to their products increases consumer choice and offers farmers a better chance to reach retail shelves which is their ultimate goal. This is not about circumventing retailers, but growing the industry overall. My office has always been open to those who may have concerns about this bill and I’m here to listen to their concerns and their proposed solutions.”

The Origins Council, a cannabis advocacy organization that represents historic, rural, cannabis-producing regions across California has expressed their support for the bill. Genine Coleman and the group’s 900 or so members have fought consistently for the rights and protections of small, local farms that have been in operation in the state for decades.

“The vast majority of them are producing half an acre or less of cannabis, so this is definitely a huge potential opportunity for our membership,” Coleman said. “For small-scale producers to have direct marketing and sales opportunities with consumers is really critical.”

However not everybody is on board with the new arrangement. The Executive Director of the Davis Farmers Market Alliance, Randi MacNear, says what she oversees is a “food business”. Even if the new bill passes, she says it is unlikely anything will change at their market.

“We really are interested in selling food, so at this point, cannabis is not a food,” MacNear said. “We’re trying to increase our local farmers. We’re trying to get new, emerging Yolo County farmers in here and give them a space to sell, so I think that probably we would stick with that concentration.”

MacNear did add that the decision ultimately comes down to the Davis City Council.

“I’m sure you’ll see some of this product at other markets but not here in Davis,” MacNear said.

Assembly Bill 2691 is now headed to the Assembly Appropriations Committee, where it must pass before entering the full Assembly followed by the Senate. If approved by all of the above, the bill goes to the governor’s desk for signing.

Supporters argue that the main purpose of this bill is to help small farmers who don’t have the same access channels to consumers as larger competition have the opportunity to grow their customer base and their brand at the local level.

First New York cannabis dispensaries to open on tribal land

First New York cannabis dispensaries to open on tribal land

by | Apr 12, 2022 | 420 Culture & Travel, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization

New York cannabis dispensaries

The New York legal cannabis industry may be delayed by politicians and bureaucracy, but that isn’t stopping Native tribes from rolling out their own markets.

The Saint Regis Mohawk Tribe based in Akwesasne will be the first to launch a regulated cannabis market in New York state. Beginning April 15, several Tribal businesses will open their doors to sell cannabis flower, edibles and other cannabis products to consumers.

The Tribe is able to do so thanks to their Adult Use Cannabis Ordinance. The ordinance states that adults 21 years old or older can transport, possess, and use up to three ounces of cannabis and up to 24 grams of concentrated cannabis.

Once New York legalized cannabis officially in 2020, the option to legalize the plant on tribal lands became more enticing. Not beholden to state laws and regulations regarding the plant, the Tribe was free to establish their own regulatory framework to permit sales and possession.

The Saint Regis Mohawk Tribe is also the first in the country to regulate and license tribal member-owned businesses for cannabis.

According to the Tribe, licensing fees collected from legal cannabis operations will be used to keep community members employed and fund a wide range of community services. Additionally the funds will help support educational scholarships, public safety, road maintenance, elder assistance, health care, and community organizations.

Tribal Chief Michael Conners said he believes the system will benefit the community while providing a safe product for consumers.

“We are confident that the hard work of the tribally licensed cannabis business owners will result in loyal customers from beyond Akwesasne,” Conners said. “We know that it took a while, but we are confident that our system is designed to provide quality product, in a regulated system, with Compliance oversight and a qualified Board of Managers to see that all regulations are followed for the safety of our community and consumers.”

Montana recreational cannabis sales top $43 million in first quarter of 2022

Montana recreational cannabis sales top $43 million in first quarter of 2022

by | Apr 11, 2022 | Blog, Business, Cannabis Business, Cannabis News, Culture, Industry News, Legalization

Montana recreational cannabis dispensary sales

In its first three months of operation, Montana recreational cannabis sales have surpassed $43 million, resulting in nearly $9 million in tax revenue for the state.

According to the state’s Department of Revenue, Montana recreational cannabis produced $43,537,110 in sales, compared to medical cannabis which generated $29,373,731 in sales during the same period.

Voters approved a ballot initiative to legalize Montana recreational cannabis in 2020, the same year three other states — Arizona, South Dakota and New Jersey — passed similar measures. However state officials wouldn’t approve regulations for a legal cannabis marketplace until October 2021.

This late action created a short deadline for the state’s Department of Revenue Cannabis Control Division to build out the framework for legal sales in Montana.

“The deadlines are aggressive,” Kristan Barbour, administrator of the Department of Revenue’s Cannabis Control Division, said at the time. “Really, the rules are our biggest challenge.”

“Our focus was really to be business-friendly and to try to work with the industry in a fashion that makes the rules adaptable to their current business structure and that they’ll be able to evolve into without a whole lot of pain,” Barbour added.

However despite the delays and tight deadlines, the Montana recreational cannabis market opened right on time, New Years Day 2022. On January 1 an estimated 380 dispensaries opened their doors in 29 counties across the state.

The state brought in an estimated $1.5 millions in adult-use sales in the opening weekend, a number that would snowball over the next couple months. While money isn’t the only reason a state like Montana would legalize cannabis, it is at the top of the list.

According to the Marijuana Policy Project, states have generated over $11 billion in tax revenue through legal cannabis. On average, a state with adult-use cannabis sales generated more than $3.7 billion in total revenue in 2021.

However another growing reason for multiple states legalizing cannabis is the failing War on Drugs. In 2018, 40% (yes, 40%) of all drug arrests in the US were for cannabis, typically possession. Think about the resources and dollars that go into arresting, processing, and housing all of these mostly non-violent offenders.

In March the Montana Supreme Court issued temporary rules for procedures that would allow those with past cannabis-related convictions to have them expunged. The state’s new cannabis law says “anyone convicted of an offense that would now be legal in the state can petition to have their conviction removed from their record, get a lesser sentence for it or reclassify it to a lesser offense,” according to local television station KPAX.

Just for comparison, Oklahoma, an equally red state with just a medical cannabis program that launched in 2019 brought in nearly $500 million in its first year of sales. Then the state nearly doubled that number in 2020.

Comparatively Montana recreational cannabis sales seem pretty miniscule. However it has only been three months. Should the trend continue, the state could easily see over $200 million in sales its first year.

Interstate cannabis commerce bill introduced in California

Interstate cannabis commerce bill introduced in California

by | Mar 23, 2022 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Growing, Industry News, Legalization

California interstate cannabis commerce bill introduced

California has always been at the forefront of cannabis legalization. As one of the first states to legalize medical and recreational cannabis, other states looked to California for the outline of legal cannabis.

But despite its progressive policies regarding cannabis, California has not been able to develop and maintain a strong legal cannabis industry. This is for a wide range of reasons, from strict and expansive regulations to exorbitant application and licensing fees. Not to mention the massive illicit market that still operates within the state, in part due to the current barriers to entry into the legal market.

Some would argue that the solution to California’s cannabis industry woes is to simplify the application process, lessen the cost of licensing and give cultivators and retail owners the resources they need to stay within regulation. However the state is taking a different approach to profiting off an industry with an oversupply of cannabis.

SB1326 has been introduced to approve interstate commercial transactions for cannabis products. This means that if passed, California would be able to import and export cannabis products from other legal cannabis states. For example a state that recently legalized cannabis but does not yet have enough supply to meet demand could import products from California to fill the gaps.

If this bill sounds familiar, it may be because Oregon passed something similar in 2019. However since they were the only state with a law allowing export of cannabis, and no states have a law allowing imports, the law is basically moot.

The interstate cannabis commerce bill wouldn’t just be restricted to recreational cannabis either. California also has one of the country’s oldest medical cannabis programs and would be able to provide medical cannabis to neighboring states as well.

Even with the largest illicit market of cannabis production in the country, California’s legal recreational market is still oversupplied. The hope with SB 1326 is that some of that supply can be sent to other states to make the industry more profitable for those participating legally.

Critics of the bill have shown concern however over wording that could remove the opt-out clause currently in place in the state.

Most states with legal cannabis programs will have opt-out clauses that permit municipalities to opt-out of legal cannabis business in their localities. Those criticizing SB 1326 believe that the new bill will overshadow the opt-out clause, but lawmakers believe that it will actually give the municipalities more options than the opt-out clause itself provides.

The interstate cannabis commerce bill also places restrictions on who can enter the new market if it passes.

“The bill would prohibit an entity with a commercial cannabis license issued under the laws of another state from engaging in commercial cannabis activity within the boundaries of this state without a state license, or within a local jurisdiction without a license, permit, or other authorization issued by the local jurisdiction,” the bill’s text reads.

This line should reassure smaller towns and local businesses that multi-state operators won’t be able to just storm in and take over. And at this time, officials in the cannabis industry want to focus on leveling out the supply in California before they begin accepting any imports.