By: Cecil King
Setting the Timer on Missouri Cannabis
Missourians can all agree more economic activity in the Show-Me State is good for every citizen. Putting people to work in a brand-new, home-grown state-wide industry would be even better.
This November 2016, millions of voters in multiple states will decide what kind of new economic activity they want in their state as they vote on legalizing cannabis.
One petition initiative, California’s Adult Use of Marijuana Act (AUMA), is touted as the “Gold Standard” of citizen initiatives. More than 60% of Californians are in favor of AUMA listed as Proposition 64 on the ballot.
AUMA allows adults 21 and over to possess one ounce of cannabis and cultivate up to six plants for personal use. The law is also business-friendly which benefits all Californians.
AUMA provides 19 different business license types which cover cultivation, manufacturing, testing, distribution and retail sale of marijuana. Cultivation licenses are available for small, medium and large-scale growers.
AUMA authors adopted Vertical Integration, a successful business idea that accelerated Colorado’s cannabis market into the $1.0 billion sales range in less than two years. California would allow a single business to work in more than one license class. This means a grower can cultivate a cannabis crop and then sell the retail product.
The largest cultivators are not allowed to vertically integrate. California will also protect home-grown businesses by requiring state residency on or before January 1, 2015 to apply for a license. No out-of-state business concerns can quickly move to the state and take away California cannabis jobs.
AUMA encourages small business entrepreneurs to set up shop with a unique microbusiness license. This business license allows all activities under one license if the business cultivates in an area less than 10,000 square feet.
The nation’s cannabis industry anticipates successful passage of AUMA and is watching for opportunities. One industry-leading firm, The Denver Consulting Group (DCG) has decided to not only watch, but participate.
Jay Griffin, Co-Founder of DCG, announced their entrance into the California market earlier this year. Griffen says there is tremendous interest in the company’s services from California. “Many growers, dispensaries, producers, and distributors are concerned about the move to a highly regulated environment in California.”
With the variety of cannabis business licensing options available there, new business owners will need to take an AUMA crash course in order to successfully meet compliance requirements.
“One of the most important things any canna-business can do, is to take steps now to assure compliance and licensure,” offers Griffin. “If you wait until new laws take effect, you may be completely shut out.”
When Missouri finally approves legal cannabis, the clock will start ticking. At the top of every Missouri cannabis entrepreneur’s “To-Do” list would be to hire a legal team, meet with an experienced cannabis industry consultant and formulate his or her business plan.