Since my last blog entry, there have been a few changes to HB-1317, the bill which regulates retail marijuana businesses. The bill has now passed both the House and Senate and is on the Governor’s desk for his signature. Once that is completed, the bill will become a law (those of you familiar with School House Rock already know that!).
HB-1317 changes include:
- There will be a 9 month waiting period for new businesses, instead of 90 days. If you do not already own a MMJ business, you will be able to apply on 9/1/14. Prospective business owners can file a notice of intent to own a MJ business after 1/1/14 and must provide a deposit that will be applied to the application fee. The deposit amount is not specified.
- The bill expressly outlaws the “collective model” and requires that any sale or other distribution of MJ be done only by a licensed MJ business.
- The MED is required to implement a “seed to sale” tracking system for all MJ sold. This idea was previously shelved by MED.
- No delivery of MJ.
- There is a THC content limit for edible MIP products.
There are two other bills that were passed, HB-1318 and SB-283. Here are 5 things you should know about each of them.
HB-1318, “the tax bill”:
- There is a 15% excise tax that will be assessed for wholesale sales of MJ to Retail Marijuana Centers (RMC).
- The excise tax will be based on an average market price established by the State. The tax must be collected by the wholesaler and a report for such sales filed once a month.
- The excise tax will apply to the transfer of MJ from the grow to the retail center even if the business owns both the grow and retail center.
- There is a 10% State sales tax for MJ sold by the RMC. This can be raised to 15% without voter approval.
- The sales tax will be shared with local governments, but local governments are also permitted to impose additional local taxes.
SB-283, the miscellaneous bill:
- Local governments may ban the use of butane and compressed gas for use in extraction.
- The bill creates a responsible vendor program that will require training. There will be created a “certified trainer” and all vendors must be certified.
- Marijuana business contracts shall not be void despite the federal argument that all such businesses and their contracts are illegal.
- There will be no exception to the state smoking laws that will permit a private club or other such business to permit MJ use.
- No open containers of MJ in vehicles. The MJ must be in an unopened, sealed container or be placed in the trunk of your car.