Proponents of the use of marijuana for medical purposes have been very active in various states of America petitioning the authorities for its legalization. Activists in Michigan have been particularly active in this drive, and their efforts have borne fruit. In 2008, the voters in Michigan approved the use of medical marijuana. This move opened the way for the growth and development of a new industry that is slowly gaining acceptance among the public.
Following the voters’ mandate, laws aimed at regularizing the management of cannabis dispensaries and regulating its cultivation and processing have been enacted. Before the passing of the laws, raids were common on those suspected of using or dealing in cannabis. Recommended users of marijuana are now protected by the law and will not be harassed by the authorities. Since Michigan voters approved the legislation, the laws have not been effective until December 2016. Other components of the law include additional taxes for dispensaries dealing in cannabis and a state-wide licensing of all activities related to the marijuana trade.
Additionally, all marijuana facilities will be required to implement cannabis software seed-to-sale dispensary management system that will track all the transactions. This system has been in use in other states that have enacted and used similar laws.
Reasons for the legislation
The state of Michigan has 211,000 patients who are allowed to use marijuana. These patients either grow their own cannabis or get it from 37,000 authorized caregivers. The caregivers are limited by law not to serve more than five patients. Those in support of the laws argue that the move will help in monitoring dispensaries that were not supervised before.
The requirement that testing be done on the cannabis serves to make it safe for patients. With proper testing and control, medical marijuana will be available for use by all patients.
Rise in cost
Proponents of marijuana contend that the gains made by the passing of the legislation will be wiped off by the 3% tax imposed on dispensaries. They argue that the move will make marijuana more expensive because the dispensaries will push the cost to their customers thus making it too costly to many people who may need it.
The legislation is further criticized because patients growing their own marijuana or those who get from caregivers have to pay for the cost of implementing the legislation. The legislation allocated $8.5 million for the implementation of the regulations which will be paid from a fund created from the fees paid by patients and caregivers when they register to get the ID cards. Opponents of this idea argue that those growing their own marijuana should be exempted from paying the fees.
Control by local authorities
While the legislation has been passed for the entire state, local authorities have a key role to play in the operations of the industry. Patients, caregivers, and dispensaries need to get clearance from their local governments before they get state approval.
The local authorities have the power to limit the number of licenses to be approved within their area of jurisdiction. Apart from the license fees paid to the state, local authorities can also levy fees which should not exceed $5,000.
The industry is still new, and it is hard to estimate how much revenue it will generate. However, revenue collections will be shared as follows: the state will take 30%; counties with marijuana outlets will take another 30%; 25% will go to cities and townships with cannabis facilities; 5% will be paid to Michigan State Police; county sheriffs will get 5% too, while law enforcement standards body will get the final 5%. Initially the share for the state will go into a general fund, but effective October 2018 it will be paid into another fund created to compensate firefighters suffering from specified types of cancer.
Effective date for the changes
The laws will take effect 90 days after being signed. Applications for the state license will be received 360 days after the effective date of the laws. Therefore, people planning to apply for the license can only do that at the start of 2018.
The state is expected to invite bids from firms that create and operate cannabis tracking systems. These firms will be required to deliver within 180 days after winning the contract.
The best software to use
The new legislation requires medical marijuana dealers to install an effective cannabis software seed-to-sale dispensary management system to track their operations. They need to choose a system that will offer a comprehensive solution to their needs. WebJoint tracking system has been the system of choice for many marijuana dealers. It allows you to manage your stocks, finances, employees, customers and your website as well.
It will help you increase your exposure on the web which is crucial in growing your sales and effectively managing all other aspects of the business. It is ideal for established businesses and start-ups too. The success of your business will depend on maximizing your revenues and keeping your expenses at the minimum. The WebJoint system will help you manage your business efficiently.