legal cannabis Archives - Page 20 of 25 - The Real Dirt with Chip Baker

Illinois cannabis tax revenue nearly surpasses alcohol

by The Real Dirt | Dec 16, 2020 | 420 News, Blog, Business, Cannabis Law and Compliance

The nearly $23 million in revenue was just a few million less than what the sale of alcohol brought in last month.

Amid skyrocketing demand for legal weed in Illinois, statewide tax receipts from recreational pot sales are now rivaling those from booze.

November’s tax revenues from adult-use cannabis, which reflect the record $75.28 million in sales tallied in October, reached nearly $22.88 million, according to figures released by the Illinois Department of Revenue.

That’s less than $3 million shy of the roughly $25.74 million in taxes collected through alcohol sales last month. That’s the smallest deficit since recreational marijuana was legalized in January.

Pot sales have skyrocketed in the 11 months since the drug was fully legalized, resulting in an almost steady increase in monthly returns for the state, according to a Sun-Times analysis. Taxes have pumped nearly $153 million into the state’s cash-strapped coffers, including nearly $100 million in the past five months.

Why have weed sales — and taxes — increased so much?

First of all, state levies on cannabis are far higher than those tacked on the price of booze (not including local or federal taxes).

On pot sales, the state charges a 6.25% sales tax and an excise tax of up to 25%, depending on the amount of mind-altering THC in what’s being sold.

While there’s no apples-to-apples comparison, alcohol is also subject to the general sales tax of 6.25% and an excise tax of 23 cents per gallon of beer, $1.49 per gallon of wine and $8.55 per gallon of liquor.

That means the state’s share of the price of a joint is much more than its share of the cost of a six-pack of beer. A $15 six-pack, for example, would net 69 cents for the state, while two high-potency joints priced at $16 would generate $5 for the state.

What’s more, pot sales have steadily increased since the program launched Jan. 1 — which was to be expected. But COVID-19 has also played a role, experts said.

The pandemic has “had a big impact on sales numbers,” said Alyssa Jank, an analyst at the Brightfield Group, a Loop-based firm that researches the cannabis industry.

“People have been at home more. People are looking for things to do [and] people don’t have to worry about being functional or capable to go and do stuff. So I think that’s part of it,” said Jank. “I think another part of it is that people have been way more stressed out and anxious this year, so they’re looking for something as a solve for that.”

Meanwhile, tax revenues from alcohol sales have fluctuated and returned to pre-pandemic levels. Though some research suggests consumers are spending less overall because they aren’t paying for the markup at restaurants and bars, total alcohol sales still trump the state’s pot sales totals.

Read the full story on Chicago Sun Times

Detroit to issue recreational marijuana licenses in summer 2021

by The Real Dirt | Dec 14, 2020 | 420 News, Blog, Business, Cannabis Law, Culture

Detroit — Starting January, longtime city residents will be the first to apply for certification and secure recreational marijuana licenses by the summer, city officials announced Wednesday.

Mayor Mike Duggan and councilman James Tate unveiled a timeline urging residents eager to jumpstart their marijuana business to begin by applying for Detroit Legacy certification opening online Jan. 19. The first licenses could be issued to qualified residents as soon as June.

Tender Jacob Samways, left, lets Gregg Etzel, 67, of Dundee smell some marijuana flowers during the first day of sales of recreational marijuana at Exclusive Provisioning Center in Ann Arbor, Mich. on Dec. 1, 2019.

The city’s long-awaited ordinance for recreational marijuana, which was unveiled in October, guarantees no less than half of all licenses awarded will go to legacy residents.

“It’s by far the most controversial provision,” Duggan said. “The city will not issue a license to any business unless 50% of the licenses in that category are Detroiters. Which means if you’re from outside the city, you can’t get a license unless a Detroiter already has one. We’ll never go below 50%.”

The plan, city leaders say, was crafted to ensure residents disproportionately affected by the nation’s failed “War on Drugs” will have an equitable opportunity to participate in an industry that’s estimated to yield $3 billion in annual sales. In late November, the city council unanimously approved the ordinance.

“It was imperative for us to ensure we right that wrong,” Tate said. “We have individuals who are making a very good living on marijuana today, the same plant that created this situation of mass incarceration around our country in the city of Detroit, so this is an opportunity for us.”

Applicants can qualify for the “legacy” certification if they’ve lived in Detroit for 15 of the last 30 years; lived in Detroit for 13 of the last 30 years and are low-income; or lived in Detroit for 10 of the last 30 years and have a past marijuana-related conviction.

Legacy Detroiters will receive benefits including reduced fees, technical assistance and a six-week period when only legacy Detroiter applications will be reviewed before the rest of the public by the city’s Civil Rights, Inclusion and Opportunity Department.

Legacy Detroiters will be able to purchase city-owned land at 25% of the fair market value and all application fees be slashed to 1% of the total cost.

Detroit officials have announced plans to give certain residents a head start and other assistance in applying for marijuana licenses.

“These are for real Detroiters, those who have roots in the community,” Duggan said. “Or you can qualify as a business legacy, owned and controlled 51% by individuals with the legacy certification.”

Despite the scrutiny they face, “Detroit is ready for this huge lift,” Tate said.

He added it was rare to witness overwhelming excitement about an ordinance but said it’s because “now (residents) have that sense of opportunity and hope.”

How to apply

The adult-use law is expected to go into effect in January and Detroiters can start by reviewing the process at detroitmeansbusiness.org.

Starting Jan. 19, the website will open for applications for legacy certification. Applicants will also need state certification through the Michigan Marijuana Regulatory Agency.

The state requirements include a $6,000 fee with reductions for those involved in social equity programs. Applicants must provide the state information on the company and have a personal background check.

The state process could take two to three months and Duggan said Detroit applicants can begin the city process in January before state prequalifications are complete.

Starting April 1, Detroiters and general applicants will able to apply for licenses through the Buildings, Safety Engineering and Environmental Department.

Legacy Detroiters will be the first applicants reviewed for licenses starting May 1. General applications will be reviewed starting Aug. 1.

City licensing fees will cost $1,000, but only $10 for legacy Detroiters.

“We are going to change the inequity on Detroit versus non-Detroit businesses,” Duggan said. “We’re doing everything we can to create every opportunity for Detroiters to start these businesses.”

The city will license up to 75 adult-use retailers, the same number it allows for medical marijuana provisioning centers. Officials said it amounted to one dispensary every two square miles in the city.

Applicants will need:

Detailed business plans
Three years of income tax returns
Authorizations for background checks
Property tax clearances and clearances of any blight
An address for the business

Those without an address can obtain a provisional license valid for one year and for information on properties. Detroit officials have said only four of the city’s 46 medical marijuana dispensaries — permitted under a law approved by Detroit’s council in 2018 — are owned by residents.

Mitzi Ruddock, a 40-year-old Detroit single mother with a past marijuana conviction, told The News that having a seat at the table made a difference.

“I and many other Detroiters have sacrificed so much to see the day that brings generational wealth to our children through legal cannabis businesses,” said Ruddock.

Read the full story on The Detroit News

How Long Edibles Take to Kick In

by Travis C | Dec 11, 2020 | 420, 420 Culture & Travel, Blog, Broscience Mythbusters, Culture, Science & Technology

Recreational and medical marijuana has come a long way since Colorado first legalized adult use in 2012.

The saying, “not your father’s weed,” has become truer than ever, as new testing and growing methods has led to great advances in potency and knowledge of marijuana’s many effects. One such delivery method comes in the form of edibles, or marijuana-infused products.

We have long-surpassed the day of brick-weed brownies and random dosages that could do nothing to one person and completely level another, and a new world of options has started to grow in its place. Brownies may still be one of the most popular edible options, but with the addition of candies, drinks, tinctures, and more there is a plethora of new choices that patients and adults can test out themselves.

The difference between eating and smoking cannabis

One of the major issues people face when it comes to edibles is knowing the difference between edible effects and normal smoking or vaporizing effects. The other question many have before they try edibles their first time is, “how long do edibles take to kick in?”, and rightfully so. While many edibles nowadays may come with a measurement on the label of how many milligrams of THC the product has, this can lead to confusion for those who don’t know the recommended amount to take.

The recommended average dose for an edible in places such as Colorado and Washington is 10mg of THC per dose. For example, if a brownie has 100mg of THC in the whole thing, only one small piece of that brownie is equal to a normal dose. This can lead to serious problems when someone who does not know the recommended dose eats half the brownie or even the whole thing, because let’s be real, who just eats half a brownie?

When it comes to feeling the actual effects of an edible after ingestion, results vary for everyone. While one may indulge in marijuana recreationally or medicinally on a daily or chronic basis through smoking or vaporizing, edibles act within the body – from ingestion to digestion – in a very different way.

Compared to smoking or vaporizing in which THC is absorbed through the lungs, ingesting an edible takes and entirely different route through the body. Since it is technically food, the body treats it like anything else you might eat; it passes through the digestive system, which can take a while. While the effects of smoking or vaporizing are near instantaneous, edibles take much longer to take effect due to the digestive process which can vary from person to person.

How long edibles take to kick in

In the case of regular marijuana-infused food products such as brownies, cookies, candies, etc., the average onset time can range from thirty minutes to well over an hour, in some cases even taking as long as two hours to kick in. Inexperienced users many times make the mistake of assuming the edible did not work because it has been longer than what they were told at the dispensary and eat more, only to be hit a short time later with increased effects that last much longer.

When purchasing an edible, always look for labeling and dosage. Some edibles come in one single 10mg dose, while others come in a package with many pieces, each equal to 10mg but accumulate to a higher dose when taken in greater quantities (i.e. gummies that come in a package of five or ten). Always ask your budtender what they recommend for first time edible users, and make an informed decision.

The main thing to keep in mind after ingesting an edible is patience. If on an empty stomach, one can expect an edible to hit much faster, no matter the dosage. However much faster in the case of edibles still ranges between thirty to forty-five minutes for how long it takes for edibles to kick in. Many dispensaries and professionals recommend eating a small amount of normal food prior to ingesting an edible so the effects do not come on too strong and too quickly.

Eating food after ingesting the edible, if on an empty stomach, can increase the speed at which the effects come on, as putting more food on top of the edible can push it down more quickly through the digestive system. So, if you’re looking to feel the effects as quickly as possible, eat or consume the edible on an empty stomach and eat something small afterward to help speed up the digestive process.

It is important to keep in mind that how long edibles take to kick in can also vary depending how they are made. The main methods for infusing food with marijuana consist of cannabis butter, cannabis concentrates and oils. While the former of the three usually involves using marijuana flower itself, the latter two are an already concentrated form of marijuana that can be much stronger. Cannabis butter can also be made more efficiently with concentrates to increase potency.

Shop for edibles with confidence

Asking your budtender if they know how a certain edible was made, what the dosage is, and the average onset time that other consumers have reported can greatly increase confidence when it comes to figuring out how long edibles take to kick in, and how long the effects might last.

Overall, the biggest decider when it comes to choosing an edible and figuring out how long edibles take to kick in is you. While researching certain products and asking your local budtenders about what others have experienced can be extremely beneficial, edibles effect everybody differently, and most anecdotes should be taken with a grain of salt.

As a newbie, here are some of the main notes about edibles to know before trying your first edible:

You can’t overdose on edibles, but taking too much can lead to a very bad time
Edibles affect everybody differently, so don’t get upset if someone who took a similar edible feels it before you.
How long edibles take to kick in depends on a variety of factors from metabolism to dosage to how it is made.
Nobody has ever died from a marijuana overdose, you will come back down from the effects, and you will return to normal.
Be patient and have a good time!

The Future of Legal Cannabis in Florida

by The Real Dirt | Dec 9, 2020 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Culture

The passing of the MORE Act in the House has gotten Floridians talking about their future.

The U.S. House of Representatives on Friday voted to decriminalize marijuana. Most Democrats supported the bill that would enact that change. Most Republicans did not. The bill is unlikely to gain traction in the Republican-controlled U.S. Senate.

Was Congress’ historic vote an early sign of momentum to legalize marijuana across the United States? Or is was it a low-stakes move on a splashy issue that’s unlikely to go anywhere?

Florida is home to plenty who are interested in the answer.

“We talk all the time on the right about the need to empower people and empower states,” U.S. Rep. Matt Gaetz, R-Fort Walton Beach, said in an impassioned speech on the House floor in support of the bill, the MORE Act. “Right now, the federal policy on cannabis constrains our people. It limits our states.”

Gaetz, who helped author Florida’s very first medical marijuana program as a state representative in 2014, was one of just five Republicans to support the bill. Another Florida Republican, Brian Mast, R-Palm City, also voted for the measure. Mast’s office did not respond to requests for comment for this story.

In addition to essentially legalizing marijuana at the federal level, the Marijuana Opportunity Reinvestment and Expungement (MORE) Act establishes a federal tax on cannabis products. That tax money would be set aside in a trust fund for people and businesses that have been affected by the federal war on drugs. A 2020 study by the American Civil Liberties Union showed that Black Americans are nearly four times more likely than white Americans to be arrested for marijuana possession, despite using the drug at a similar rate.

The MORE Act, if signed into law, would also start a formal process for expunging federal marijuana convictions. People serving federal sentences for cannabis-related crimes would get review hearings.

It’s unclear how many Floridians are in federal prison for marijuana-related crimes. But FBI data showed that in 2018, 40 percent of all state and local drug arrests were for marijuana-related offenses. More than 90 percent of those arrests were for possession, according to the Pew Research Center.

Read the full story from Tampa Bay Times

Michigan Designated Consumption Establishments Explained

by Travis C | Nov 20, 2020 | 420 Culture & Travel, 420 News, Blog, Business, Cannabis Law

Michigan legalized cannabis in 2018, and passed emergency rules to get the industry rolling in July 2019.

In addition to creating your run of the mill rules regarding licensing for growers, processors, distributors and retailers, Michigan also created some new license types. These new licenses include a Marijuana Event Organizer license, a Temporary Marijuana Event license and an Excess Marijuana Grower license.

But what has the consumers excited is a different license. A Designated Consumption Establishment license.

Michigan Designated Consumption Establishments

A Designated Consumption Establishment (DCE) license allows the license holder, with local approval, to operate a commercial space that is licensed by the Marijuana Regulatory Agency and authorized to permit adults 21 years of age and older to consume marijuana and marijuana products on premises. A DCE license does not allow for sales or distribution of marijuana or marijuana product, unless the license holder also possesses a Retailer or Microbusiness license.

It is common for public cannabis possession public arrests to rise after a state legalizes cannabis. This happens because most states only allow consumption on private property, and many people who rent may have to go outside to smoke. Michigan saw this problem in other states and is aiming to deal with it before it grows with DCEs, more commonly known as cannabis cafes or lounges.

This license is available to any applicant regardless of if they are currently holding any other licenses. The DCE license is also open to marijuana retailers, microbusinesses or anyone wanting to operate a “bring-your-own-cannabis” model.

DCE Requirements

Applicants for a DCE license must have met a multitude of key criteria. The foremost is a location approved and supported by the local municipality. Next, the facility must have:

An identified area specifically suitable for marijuana consumption, as well as smoke-free areas. DCE rules do allow facilities in which only non-smokable cannabis is consumed; in these spaces, no specified place for smoking cannabis is required.
A smoke-free area for employees to monitor the marijuana consumption area. Facility operators must ensure employees are not subjected to indirect or unintended cannabis consumption while working at the facility.
The facility must have a ventilation system that directs air from the marijuana consumption area to the outside of the building, through a filtration system designed to remove visual smoke and odor.
The facility must have sufficient walls and barriers to ensure smoke does not infiltrate into nonsmoking areas or adjacent spaces.

Additionally, when applying to be a Designated Consumption Establishment for marijuana in Michigan, microbusinesses will need to submit the following information as well:

A Designated Consumption Establishment Plan, or diagram of the facility that explains layout, defines facility locations, and indicates distinct areas or structures distinguishing a DCE from other licenses that may be applicable in adjacent locations.
Building, Construction and Zoning Details so the MRA can verify a safe operation including building and fire safety review, plus ensure a detrimental impact will not occur on adjacent businesses and residences.
A Business Plan that must include proposed hours of operation and, if part of the plan, the intended mechanisms for consumers to acquire cannabis at the facility.
A Plan for Responsible Operations such as an employee training program, how consumption will be monitored, plus prevention of over-intoxication, underage access, and the illegal sale or distribution of cannabis within the establishment.
Waste Management Plan for handling and disposal of any waste at the facility, including unconsumed cannabis products left by patrons of the facility.

Applicants for a Designated Consumption Establishment for Marijuana in Michigan also must undergo a preliminary background check. The Initial Applicant fee for a Designated Consumption Establishment is currently $1,000 and is valid for one year. The renewal fee is also $1,000. Like all other Michigan dispensaries and other licenses, MRA reserves the right to increase fees collected by 10% each year.

A model to follow?

Many states have the same issue that Michigan is trying to deal with right now. As previously mentioned, most states require cannabis consumption to take place on private property, but very few states have cannabis consumption establishments. This leads to more public consumption, and more arrests or citations.

A few states like Colorado have attempted to create consumption establishments, but have fallen short due to restrictions on smoking indoors in Denver. While dabbing and vaping is popular, most people are comfortable doing that in a place they rent since the smell doesn’t stick around.

We have yet to see how the Designated Consumption Establishments will pan out in Michigan or if certain municipalities will ban them all together. The Marijuana Regulatory Agency plans to finalize their rules and begin implementation in January 2021.