Ohio will vote on Adult Use Cannabis sales in November 2023. If passed, Ohio will be the 24th state to legalize cannabis for recreational purposes.
If passes, the new law would allow adults over 21 years of age to possess up to 2.5 ounces of marijuana or 15 grams of marijuana extract. Additionally, Ohio Adult Use cannabis will be available at retail locations. Alternatively, adults will be allowed to grow up to 12 plants in a private residence. Lastly, recreational cannabis will sustain a 10% tax upon purchase.
In a pre-poll created by the Coalition to Regulate Marijuana Like Alcohol and conducted by FM3 Research, 55 percent said they “definitely” or “probably” will vote yes on the initiative, while about 34 percent “definitely” or “probably” will oppose it. Only about 11 percent were undecided. The survey polled 843 likely voters. Historically, voters have supported the decriminalization and legalization of cannabis. Hopefully, Ohio residents will also support the regulation of cannabis.
If Ohio legalizes cannabis for recreational purposes, the state will award retail and cultivation licenses to supply the public. Luckily, we can help you with the application process and required documents. Such documents usually include Standard Operating Procedures, business plans, and even diversity plans. We have all these documents in templates, or we can customize them for your specific application.
A wise CFO once tried to explain to me how he wanted the costs associated with the cultivation and production of cannabis good recorded. He described “buckets” that the costs would essentially “go into”. Thus began my journey of researching cannabis inventory costing. What are these theoretical buckets? What costs “go into” these buckets? How do we determine these costs? These were the questions I needed answers to. It wasn’t long before I understood what he was trying to teach me, and how it applies to the cannabis industry. Specifically, how cannabis inventory costing applied to the cannabis cultivation, manufacturing, and retail operations.
Cannabis Inventory Costing by Batch
Most importantly, batch costing is the process of allocating costs associated with a particular batch to get a total batch cost. Next, the total batch cost is divided by the number of units in the batch which results in the cost per unit. Each batch can be thought of as a “bucket” which accumulates costs. Thus, the CFO was talking about batches when he was referring to “buckets” while explaining cannabis inventory costing.
Cannabis Inventory Costs
I wish cannabis inventory costing were simple. It would make identifying all costs associated with each batch relatively easy. None the less, we can identify 3 categories of costs that should be allocated to each batch of cannabis. These categories include direct materials, direct labor, and direct overhead.
Direct Materials
First, direct materials are materials used in the cultivation or production of cannabis and cannabis products. Such materials might include nutrients, soil, packaging, and any ingredients used in the production of cannabis products. Direct material costs for each batch can be tracked in some seed to sale software systems.
Direct Labor
To begin, direct labor is the labor directly associated with the batch. Including, vegetation staff, cultivation staff, trim labor, and packaging labor. It is important to have a seed to sale system that has the capability of tracking the amount of time a plant spends in each stage of the cultivation and production process. The time in each stage will help determine the direct labor rate to apply to each batch. Because, each batch’s direct labor cost will differ.
Manufacturing Overhead
Overhead costs are costs that cannot be directly associated with a particular batch. Such costs may include electricity, water, and rent or mortgage. These numbers will also depend on how much of the facility is used directly in cultivation and processing VS how much of the facility is used for administrative and sales purposes.
To explain, if a 1,000 square foot building contains 250 (25%) square feet of administrative purposes, and 750 (75%) square feet of cultivation and processing, only 75% of the electricity, water and rent would be included in the manufacturing overhead amount. And then, this amount may be divided among the batches in production. On the contrary, the other 25% of the rent, electricity, and water would be included in the facility overhead, or cost of goods sold amount.
How to Determine These Costs
Tracking the costs associated with each batch of cannabis requires at least 3 things. An understanding of the costs and where they come from, a good seed to sale inventory tracking system, and lastly standard operating procedures. Fortunately, we can recommend good seed to sale systems. Additionally, we have Standard Operating Procedures that can assist you with identifying when costs are accumulated and how to record them. These documents are state specific because we understand that every state has different cannabis requirements.
We want to help you track your cannabis inventory costing and implement processes to continually track costs. Contact us today to schedule a consultation.
Rhode Island cannabis became legal in May of 2022. You might remember our blog post “Rhode Island Recreational Cannabis” announcing the first Adult Use sales. At that time, there were only 6 recreational retail locations in the state, and the Department of Rhode Island Office of Cannabis Regulations were still working on the recreational program rules. At this time, the Department has drafted rules which include details about what will be required to apply for a Rhode Island cannabis license. Although the department has approved 6 dispensary locations, there are still 24 retail licenses available. Let’s discuss the requirements in detail below.
License Types Available
To begin, Rhode Island will be accepting applications for 5 different license types. In addition to retail, the Department will issue licenses for cultivators, product manufacturers, and “hybrid retail” licenses. To describe, a “hybrid retail” license is a license which can sell medical and recreational cannabis.
Requirements
Now that we have an understanding of what license types are available, lets dig into what is required to apply. First, the department will ask for all owners to be at least 21 years of age, and pass a background check. Additionally, the department will require applicable business entity information. This information will include proof of compliance with local and municipal planning and zoning rules. Most importantly, the department will require standard operating procedures, and business plans that comply with the regulations.
The New Mexico Regulations and Licensing Department Cannabis Control Division is currently accepting New Mexico cannabis license applications. Currently, there are no limits to the amount of licenses that can be approved by the department. Additionally, there are no city bans on cannabis business locations in New Mexico. The only exception to this is consumption areas license types. Local jurisdictions can opt out of allowing consumption areas licenses.
License Types Available
There are currently 10 license types available. You can find a list, including a brief description of the license type below.
Consumption Area: A business that and serve cannabis products. These products can also be consumed onsite.
Courier: A business that can transport cannabis products to qualified patients, primary caregivers, or reciprocal participants, or directly to consumers.
Manufacturer: A business licensed to processes and prepare cannabis into usable cannabis products and to purchase, acquire, sell, or transport wholesale cannabis products to other cannabis establishments.
Producer: A business licensed to cultivate cannabis plants, transport unprocessed products only to other cannabis establishments, or sell cannabis products wholesale.
Producer Micro-Business: A business who can legally produce cannabis products at a single premise that possesses a maximum of two hundred (200) mature cannabis plants at one time.
Research Laboratory: A business that produces or possesses cannabis products with the purpose of studying cannabis characteristics.
Retailer: A business licensed to sell cannabis product to qualified patients, caregivers, and individuals over the age of 21.
Testing Laboratory: A business that samples, collects, and tests cannabis products for wholesale or retail licensees.
Integrated Cannabis Microbusiness: A business who can conduct multiple license types at 1 physical location. For example, this license type may allow the production, manufacturing, distribution, and the ability to have 1 retail location. Unfortunately, this business may not have more than 200 plants at one time, and can only have 1 license type from each category.
Vertically Integrated Cannabis Establishment: A business who can act as any of the following: a cannabis courier, a cannabis manufacturer, a cannabis producer, or a cannabis retailer.
Requirements?
To begin, every application must consist of owner information, and standard business documentation. All owners must additionally undergo a background check. In addition to business and owner documentation, the state will require Standard Operating Procedures and Social Equity Plans for a compliant application.
We have the following New Mexico specific marijuana SOPs:
Minnesota is the 23rd state in the nation to legalize cannabis use for people 21 and older! The Minnesota Office of Cannabis Management is currently creating a process for applicants to apply for a variety of license types. Similar to other states, Minnesota will offer the following recreational license types:
Cannabis microbusiness
Cannabis mezzobusiness
Cannabis cultivator
Cannabis manufacturer
Cannabis retailer
Cannabis wholesaler
Cannabis transporter
Cannabis testing facility
Cannabis event organizer
Cannabis delivery service
Each license type has a unique application, license, and renewal fee. The state will prioritize “Social Equity Applicants”. Anyone who has been convicted of a marijuana related crime, was honorably discharged due to a marijuana crime, or lives in a low-income areas qualify as “Social Equity Applicants”.
Although the Minnesota Office of Cannabis Management has not officially licensed any recreational cannabis retail facilities, a dispensary in Red Lake is currently dispensing cannabis products. You might be wondering how? Red Lake is a tribal nation that is sovereign and has its own laws which allows this dispensary to sell cannabis to the recreational market.
Every business needs standard operating procedures to succeed and operate in a compliant manner. We have the following Minnesota specific marijuana SOPs:
With our experience, you will likely need SOPs, Operating Plans, and other relevant business documents. Luckily, we have these documents ready to customize to your specific business. These Standard Operating Procedures have proven to win licenses in several states.
Let us help you obtain a Minnesota Cannabis License today!
Contact Us Today For Help With A License Application
Unfortunately, the Vermont Cannabis Control Board closed the application period for cannabis cultivation licenses on April 28, 2023. However, the Vermont cannabis cultivation license period will open again on December 1, 2023. Luckily, Vermont is accepting all other applications types at this time. Let’s get into what is required to apply for a cannabis license in Vermont.
Requirements
There are several different cannabis license types. Even though the department offers several types of licenses, each license application requires the same documentation. To begin, every license application requires the submission of owner information and each owner must be registered to work as an agent in the industry. Additionally, the following documents must accompany owner information:
Operation plan
Security plan
Hiring plan
Diversity and Inclusion Plan
Fortunately for you, we include all of these documents in our SOP packages. We know creating these documents can take month, which is why we have Vermont specific standard operating procedures to accompany your Vermont cannabis license application.
Granted, some of these requirements are related to Vermont’s Positive Impact criteria. It is important to note that any cannabis business who intends to hire more than 10 employees must submit plans related to the positive impact criteria.
Contact Us Today For Help With A License Application
The Mississippi Medical Cannabis Program’s (MMCP) mission is to “provide a safe and accessible program that meets the needs of patients and the public health and safety of all Mississippi residents”. Because the medical cannabis industry in Mississippi is new, the state has an open licensing period. The department is issuing Mississippi Medical Cannabis License within 30 days of receiving completed applications.
How to Apply
Picking Your Business Type
To distinguish what will be required to apply for a cannabis license in Mississippi, we must first distinguish what type of business you want to run. Picking a business type is simple. What would you like to do in the industry? We must first answer this question. Cultivations grow cannabis, processing facilities create products from cannabis, testing facilities test cannabis, and dispensaries sell cannabis and its byproducts to qualified patients. Each license type has a different fee required when submitting an application.
Requirements By Business Type
All applying entities must submit applicable business information including personal information on all owners. Additionally, the business must have a signed approval from local jurisdiction to operate. Among these technical details, you will need business documents such as standard operating procedures, security plans, and operation plans.
Every business needs standard operating procedures to succeed and operate in a compliant manner. We have the following New Jersey specific marijuana SOPs:
The difference between a cultivation, processing, or testing facility and a dispensary license application is not only the cost, but whom will be reviewing the application. To explain, dispensary applications must be submitted to the Mississippi Department of Revenue whereas all other applications must be submitted to the Mississippi Medical Cannabis Program.
Contact Us Today For Help With A License Application
The New Jersey Cannabis Regulatory Commission currently has an open License Application window. Furthermore, the commission is accepting applications for recreational cultivators, manufacturers, retailers, and testing laboratories. Currently, there is not an established limit on the number of cannabis business licenses available statewide.
License Types Defined
The definition for each license type is available below: Cultivation – Can grow cannabis Manufacturer – Can produce cannabis goods Retailer – Can purchase cannabis and cannabis products from licensed cultivators, manufacturers, and/or wholesalers for sale to consumers in a retail environment Laboratory – Can test cannabis products and issue Certificates of Analysis to retailers prior to the sale of cannabis or cannabis products.
To begin, all applications are required to be submitted in a digital format. The application must also be typed in times new roman, 12pt, single spaced, with 1 inch margins. In addition to the formatting requirements, all applying entities must provide information specific to their business. For example, this information includes local and municipal approval, tax ID numbers, and information on all members of the business.
Most importantly, this information must accompany a specific list of standard operating procedures, business plans, and operating agreements. Unfortunately, these documents can take numerous hours to create. However, luckily we have templates of these documents, or we can customize them for you. We want to help you obtain your New Jersey cannabis license by assisting you with your application requirements.
Every business needs standard operating procedures to succeed and operate in a compliant manner. We have the following New Jersey specific marijuana SOPs:
Maryland opened the adult use cannabis industry to the public on 7/1/23. As of 7/5/23, tax revenue from adult use sales surpassed 10 million dollars. However, only businesses previously licensed as medical cannabis dispensaries are currently able to offer marijuana to adults 21 and older.
What Is Next?
The Maryland Cannabis Administration (MCA), in partnership with the Office of Social Equity will spend July and August of 2023 conducting a plan and process for licensing of additional businesses. In fall of 2023, the MCA will open applications for additional licensing. Businesses and individuals interested in applying will have a 30 day window to submit their application.
What Kind Of Licenses Are Available?
It is important to note, Maryland will only be awarding licenses to social equity candidates. The qualifications to apply include holding at least 65% of the company; Lived in a disproportionately impacted area for at least 5 of the last 10 years; Attended a public school in a disproportionately impacted area for at least 5 years; OR Attended 2 years at a 4-year institution of higher education in the State where at least 40% of the individuals who attended the institution were eligible for a Pell grant.
The MCA may award the following license types:
For standard licenses:
20 grower licenses
40 processor licenses
80 dispensary licenses
For micro licenses: (A micro-business can still sell, process, or dispense like a standard license; however, they may be legally limited on the amount of cannabis they can dispense, process, or grow)
30 grower licenses
30 processor licenses
10 dispensary licenses
10 incubator space licenses
What Is Required To Apply?
An applicant must provide an operation plan, a business plan, and a detailed diversity plan to apply. Additionally, a fee is required. A micro-business application is $1,000 whereas a standard license is $5,000.
The documents required to apply take time to create. Luckily, we have standard operating procedures specific to Maryland for your application!
The Texas Department of Public Safety closed the Compassionate Use Licensing application period on April 28, 2022. However, the licensing period will be open again soon. We will explain throughout this article why we are confident the state will open application windows again, and how we can help you prepare for when additional licensing becomes available.
How Many Licenses Are Available?
As of May 2023, Texas has 56,131 medical marijuana patients. This number has risen significantly since May of 2022, where the patient count was 26,687. It is evident that the number of patients are growing at an exponential rate. Although it is unclear how many licenses the state intends to issue, stating “The department will issue the number of licenses necessary to ensure reasonable statewide access to, and the availability of, low-THC cannabis for patients registered in the compassionate use registry.” which has again, proven to be growing. With this in mind, we could see the number of available licenses at least double within the next year. See our graph below for an overview of patient growth since the start of the Compassionate Use Program in 2017.
How Much Does A License Cost?
Licensing currently costs $488,520. The license will be good for 2 years, after which you must renew your license for $318,511 biannually.
What is Required to Apply?
The requirements to apply for Texas Compassionate Use Licensing are defined in the program statutes and rules. Although we do not give legal advice, we do offer application writing services to help you understand what is required, and write a complete application to deliver to the state. We also provide Standard Operating Procedures to accompany your Texas Compassionate Use License application.
Every business needs standard operating procedures to succeed and operate in a compliant manner. We have the following Iowa specific marijuana SOPs:
Adult Use Marijuana in Texas seems like a myth. However, in April 2023, lawmakers were open to hearing about a bill that would legalize cannabis for recreational sale. This bill is not expected to pass, but the fact that lawmakers were willing to hear the bill, shows a step in the right direction for Adult Use Cannabis in Texas. This step solidifies the chance of Texas legalizing cannabis for recreational use in the future. More to come on Texas cannabis news as it becomes available.
Need a compliance expert, hiring aid, website development, or on site consultant for a Texas MMJ Business?
We have a wide variety of services for a current or future cannabis business.
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