Is Marijuana Legal in Michigan?

Is marijuana legal in Michigan? This is the question on your mind, and since state laws are different from federal, it’s easy to see why there’s so much buzz about Michigan marijuana legality.

Keep reading to learn more about Michigan’s cannabis laws.

Is Marijuana Legal in Michigan?

Marijuana is Now Legal in Michigan

At this point, marijuana is still a Schedule I controlled substance at the federal level. This means that the drug has “no currently accepted medical use and a high potential for abuse.” Thus, we see cannabis is in the same category as notorious drugs like heroin and cocaine, meaning it carries some severe penalties.

However, even with these regulations in place, every state has its own set of state laws for the use, possession, and sale of cannabis. With this being the case, we’ve observed many states legalizing both medical and recreational use of marijuana.

But it wasn’t until late in 2018 that Michigan became the first state in the Midwest to legalize marijuana for adult use. Even with this being the case, there are some rules surrounding marijuana in Michigan.

Marijuana Use Laws in Michigan

Michigan allows adults 21 years old or older to consume marijuana legally.

But where can they use it?

Michigan law demands anyone using cannabis do it in private. This means, most of the time, consumption is taking place in the consumer’s own residence. Public consumption, like at a park or on the street, is still illegal.

Possession has its own set of rules, too. So, if you’re considering walking around with a backpack full of ganja, that’s probably not the best idea.

You’re allowed to possess up to 10 ounces of cannabis at your residence. But you cannot carry beyond 2.5 ounces of cannabis on you while you’re out in public.

Furthermore, some places in Michigan fall under federal jurisdiction. For instance, you cannot have cannabis on federal property. Thus, possessing or using cannabis at an airport in Michigan is illegal. It’s also not allowed to consume or possess at government buildings or prisons.

Also, if you’re considering carrying cannabis in areas with children, like schools or school buses, think again. This can cause some serious trouble.

Michigan Marijuana Sales and Distribution

Michigan allows adults to transfer up to 2.5 ounces of marijuana to one another. But there cannot be an exchange of money or anything else involved.

Also, the transfer cannot be marketed to the public. This means the transfer has to be an actual gift rather than a transaction.

Cannabis Cultivation in Michigan

Adults in Michigan are allowed to grow up to 12 marijuana plants at their private residence for their personal use. But if the plants are visible from a public place, these plants are illegal.

How to Start a Cannabis Business in Michigan

After legalizing adult-use marijuana in 2018, Michigan allows entrepreneurs to become involved in the industry. To start a cannabusiness, there are some legal hurdles you’ll have to go through to become established legally.

Up until December 6, 2021, operating a recreational cannabis business in Michigan means you’ll need to get licensing for the medical space. After you complete this documentation, you can apply for your adult-use marijuana establishment license in the Great Lake State.

Through the Michigan Regulation and Taxation of Marijuana Act (MRTMA), you’ll need to get one of these applications accepted for licensure up until December 6, 2021:

  • For applicants looking for a class A grower or a microbusiness license in Michigan, you’ll need to be a resident of the state.
  • For applicants interested in applying for a Class B or Class C grower, a retailer, a secure transporter, or a processor license, you’ll need to hold a medical marijuana facility license first.

Once December 6, 2021 passes, you’ll no longer have to be a Michigan resident or hold a medical marijuana facility license. This means anyone will be able to apply for an adult-use marijuana establishment license in the state.

The state’s law also made a path for industrial hemp cultivation licensure. This cultivation is primarily for cannabidiol (CBD) as this variety of cannabis plant contains less than 0.3% THC.

Michigan Marijuana: Everything You Need to Know

Michigan Marijuana: Everything You Need to Know

Michigan’s Marijuana Regulatory Agency is in charge of cannabis laws in the Great Lake State. However, these laws impact several parties.

Adult recreational consumers, medical marijuana patients, and caregivers will benefit from the information in this post. However, if you’re part of this state’s cannabis industry, this information is essential for your success.

Keep reading to learn more about Michigan marijuana and the regulations surrounding it.

Operating a Michigan marijuana business? Northstar is here to help you navigate cannabis compliance!

Contact us now to learn how we’ll scale your Michigan cannabusiness in this budding space.

Michigan Cannabis Safety Act

The Michigan Cannabis Safety Act was recently introduced by a bipartisan group of legislators. Through this update, Michigan’s medical marijuana laws will now facilitate safe patient and caregiver cannabis access.

At this point, unlicensed marijuana growers do not need to test, track, or label medical marijuana caregivers or patients purchases. They can also sell their leftover medical marijuana.

However, the new regulation will still permit cannabis grows by unlicensed caregivers.

Just like licensed caregivers, unlicensed caregivers are still allowed to grow medical marijuana under the Michigan Compassionate Care Initiative. They can also grow for one patient. But the main difference is now, many caregivers will be allowed to demand testing of specialty medical grower product.

michigan medical marijuana girl

Michigan Medical Marijuana Progress

“Michigan has an opportunity to be a national leader in cannabis safety, job creation and economic growth, and these bills help us rein in Michigan’s unlicensed cannabis market that threatens the health of all Michiganders,” explained state Rep. Jim Lilly, R-Park Township.

Ultimately, lifting this limit caregivers have been burdened with will improve the caregiver system tremendously. And we expect the medical marijuana prong of the cannabis industry to become a safe space as a result.

Michigan Cannabis Manufacturers Association (MCMA)

Michigan Cannabis Manufacturers Association (MCMA)

As black-market cannabis in Michigan continues to thrive, patient and consumer safety are at risk. Illicit market cannabis products aren’t tested for safety, lack labeling, and aren’t tracked or subjected to state taxes.

Unlike licensed retailers responsible for legal sales, the illicit cannabis market lacks safety, accountability, and transparency. And these aspects of this state’s cannabis industry are what the MCMA aims to change.

As one of the largest organizations working to limit caregivers, the MCMA also represents many of the space’s largest financial interests. One study they released in June estimates that nearly 66% of all cannabis sales in Michigan, around $3.2 billion in sales, happened through the illicit market.

Much of the market share remains illegal. And this is why the MCMA is fighting for regulatory reform, urging lawmakers and state officials to take action with new regulations and proposed changes.

The MCMA’s Commitments

The MCMA wants Michigan to become a leader in cannabis safety, innovation, and entrepreneurship. But the growing illicit market has the potential to destabilize the state’s regulated space.

Without cannabis law enforcement, cannabis cultivated illegally threatens to put people out of work. Countless businesses and opportunities are currently at risk as the illicit market continues distributing cannabis flower and other products.

Here’s what the MCMA commits to doing for Michiganders:

Medical & Recreational Cannabis Safety & Regulations

The MCMA focuses on enhancing customer and product safety. It also works to enforce each cannabis law while ensuring equality throughout the regulated cannabis marketplace.

In essence, for patients and consumers, this means the MCMA strives to guarantee safe, accessible products. But for entrepreneurs in this space, heavy regulation to ensure marijuana plants and products are created in accordance with state law.

High Standards for Marijuana Plants, Products, & Business Operators

While federal law is still restrictive, to legalize cannabis at the state-level means Michiganders need access to safe, high-quality medical and recreational marijuana. This federally controlled substance also needs some state-level control to maintain patient and consumer safety.

With the MCMA, lawmakers seek to maintain a strong Michigan cannabis industry. This ultimately results in more tax revenue generated and safer, more profitable legal cannabis sales in the Great Lake State.

Investing in the Medical & Recreational Cannabis Space

Members of the MCMA have already invested almost $1 billion in the state’s cannabis space. And let’s not forget about how this has stimulated Michigan’s economy.

The MCMA has hired thousands of employees as it built a foundation for the regulated cannabis marketplace. But it’s also supporting opportunities for new businesses to become a part of the regulated medical and recreational cannabis marketplace in Michigan.

Equality & Justice for Everyone Involved

The MCMA promotes social equity and social justice by calling for clemency and expungement for all non-violent cannabis offenders. This encourages people to work for the industry and delve in marijuana entrepreneurship.

MCMA members also support equal access to medical marijuana for patients and recreational cannabis for adults. While this industry has thrived, minorities constantly face criminalization and countless arrests.

This association aims to make minority-owned businesses eligible for state licensing through legislation. And it also pledges to open opportunities through accessible licenses and affordable licensing fees within the industry as more entrepreneurs join the legal landscape.

Community Revitalization

The War on Drugs has been detrimental to the community. This is where community revitalization comes into play.

The MCMA’s members are investing in innovative tech, good-paying jobs, and community revitalization to improve the state.

Michigan Cannabis Legislation for Regulation

Michigan Medical Cannabis Legislation

Proposal 1, the Michigan Compassionate Care Initiative, passed on November 4, 2008. With this measure, medical cannabis was legalized.

The measure allowed Michigan patients to possess up to 2.5 ounces of marijuana for certain medical conditions after receiving approval from a physician. However, dispensaries were not given permission to operate.

However, even without dispensary permission to operate, patients or their caregivers were given permission to cultivate up to a dozen cannabis plants.

In February 2013, the Supreme Court of Michigan decided that this 2008 initiative didn’t permit medical cannabis dispensary operation. Thus, there were between 75 and 100 dispensaries operating in this legal gray area at this point.

Then, in September 2016, Governor Rick Snyder signed a package of bills to implement some reforms. These included the following:

  1. Permission for medical cannabis dispensaries to operate with the regulation in place,
  2. Establish a 3% taxation rate for medical cannabis, and
  3. Permit non-smokable cannabis forms like edibles and topicals.

michigan marijuana smoker

Michigan Recreational Cannabis Legalization

In November 2017, the state’s legalization proponents submitted 365,000 signatures to get adult-use cannabis legalization on the 2018 ballot. Then, in April 2018, the state certified that cannabis supporters had achieved enough valid signatures to get it on the ballot.

In June, 2018, Michigan lawmakers rejected the option to pass this measure on their own. This sent it to the November ballot.

Michigan voters approved Proposal 1 by a 56 – 44 margin on November 6, 2018. In turn, the Great Lake State became the 10 state to legalize recreational use marijuana. Equally important to note is that it was the first state in the Midwest to do so, too.

The Michigan Regulation and Taxation of Marihuana Act

Through the Michigan Regulation and Taxation of Marihuana Act, anyone 21 years or older is allowed to possess up to 2.5 ounces of marijuana in public. They can also possess up to 10 ounces and cultivate up to a dozen plants at their residence.

This new legislation also created a system for state-licensed cultivation and distribution for marijuana. Sales became subject to a 10% excise tax, and the 6% state sales tax remained.

The law began implementation on December 6, 2018. Dispensaries opened their doors to the public on December 1, 2019.

Michigan Marijuana Consumption Insight

Michigan Marijuana Consumption Insight

Consumption of recreational and medical cannabis in Michigan is legal. These products have been legal for medical consumption since 2008. But recreational marijuana didn’t become legal until 2018.

Federal law doesn’t permit marijuana consumption. However, while it’s still a controlled substance in Michigan, the penalties aren’t so harsh for personal use possession.

Michiganders can have up to 2.5 ounces on them legally. Furthermore, up to 10 ounces of cannabis flower at home is legal.

If someone has beyond 2.5 ounces but as much as 5 ounces, this is a civil infraction. The maximum fine for this offense is $500.

However, beyond 5 ounces for a first-time offender is a misdemeanor punishable by a maximum fine of $500. No incarceration time for any of these offenses, though.

What’s a Designated Marijuana Consumption Establishment?

You’re probably wondering about designated marijuana consumption establishments in Michigan. The state now has a Designated Consumption Establishment license that allows cannabis consumption on commercial property for adults 21 years old or older.

Keep in mind, a Designated Consumption Establishment cannot have retail sales of medical or recreational marijuana. But this is a tremendous stride in the right direction for increasing accessibility for consumers and opportunities for entrepreneurs.

Michigan Medical Marijuana Card Information

Through the Michigan Medical Marijuana Program (MMMP), the Marijuana Regulatory Agency administers the current law for patients and caregivers.

Click here to apply for a medical marijuana card online.

Click here for online application resources.

Click here to view paper applications and forms.

Apply for a Medical Marijuana Card Online

To apply, you’ll need to be a patient without a caregiver. You’ll also have to create a secure online account here.

For more information about applying, follow the instructions to apply for a Patient Only Registry Card here.

Michigan Caregiver FAQ

How do I become a caregiver in Michigan?

Caregivers must meet the requirements of the caregiver definition as per the MMMA. Then, a patient has to submit documentation to designate you as their caregiver.

The documentation can be a complete Application Packet if the patient’s registry card is expiring in fewer than 60 days or isn’t holding an active registry card. Patients can also submit a complete Add or Change Caregiver Form if the patient already holds an active registry card.

Keep in mind, you’ll need to submit your valid state-issued driver’s license or another personal identification card with the patient’s documentation.

Can a caregiver sell to a dispensary in Michigan?

As per some emergency rules created and implemented by the MRA, caregivers used to be allowed to sell products and extra cannabis to commercial operations. However, this has changed as of September 2020.

In the past, the licensed market was undersupplied. Caregivers supported the regulated market by selling to dispensaries for commercial purposes.

How much can a caregiver grow in Michigan?

Caregivers are allowed to grow up to 12 plants for each of their patients. Furthermore, they can possess up to 2.5 ounces of marijuana for each of their patients.

Caregivers and patients can legally grow indoors or outdoors. However, the grow must happen in an enclosed, locked facility.

Is Michigan getting rid of caregivers?

The licensed cannabis market no longer recognizes caregivers since September 2020. This phased out a caregiver classification that came about in 2008.

But why?

Michigan marijuana companies and politicians involved with regulatory affairs want to limit how much marijuana loosely regulated caregivers can legally cultivate. State lawmakers unveiled a package of bipartisan bills on September 14 that focuses on reducing the number of patients caregivers can serve.

Caregivers are allowed to serve up to five patients. However, if this law passes, the 12-plant-per-patient limit would limit how many marijuana plants a caregiver can grow and possess for personal use.

Cannabis activists argue that legitimate caregivers aren’t at fault. Instead, it’s the operations that use the title to legitimize their activities.

The proposed legislation creates a new license type for the specialty medical grower. This would operate within the regulated space. Specialty medical growers would need to pay $500 for application fees and put their marijuana through safety compliance testing.

Rick Thompson, a caregiver supporter and the director of the NORML Michigan chapter is against the change.

“There should be no changes to the current caregiver plant allowance, regardless of the addition of the specialty grower license type,” said Thompson.

Thompson claims that the proposed legislation is a “smoke-and-mirrors game” that is working to lessen the number of caregivers while hiding behind claims that consumer safety is the priority.

Cultivating Marijuana Plants in Michigan

Adults can grow marijuana plants (12 or fewer) at their residences for personal use. But the plants cannot be visible from a public place and must be grown in a secure place. A civil infraction can occur with a fine of up to $100, along with forfeiture of the cannabis.

For those who cultivate up to 24 plants for personal use, it’s only a civil infraction. The maximum fine is $500 and there is no maximum sentence for this offense.

Anyone caught illegally cultivating between 25 and 200 plants for personal use can have a civil infraction. This can result in imprisonment if it was “habitual, willful, and for commercial purpose or the violation involved violence.”

If someone is arrested cultivating beyond 200 plants for personal use, they could be charged with a misdemeanor. They might face some imprisonment if it was “habitual, willful, and for commercial purpose or the violation involved violence.”

While you won’t face a felony punishable by prison time if you aren’t operating as an illicit commercial entity, it’s always best to follow the rules in place. However, if you do decide to operate illegally in this space and face a felony punishable by prison time, it’s always best to have a cannabis lawyer ready to help just in case.

Michigan Marijuana Financial Services

Regardless of which stage your Michigan marijuana business is at, financial services are essential to scale. Compliance is a must in this industry, and having your financials in order will guarantee you adhere to all regulations in place.

Do you have a CPA on your team who understands the Michigan marijuana industry? From tax prep to other compliance matters, your operation will benefit from professional assistance.

Looking for help scaling your operation in this budding space? Northstar is here to help!

Contact us now to speak with one of our experts about how we’ll grow your operation with the right financial services.

Jersey Medical Marijuana Program Insight

Jersey Medical Marijuana Program Insight

Looking for information about how to serve medical marijuana patients in New Jersey? Or perhaps you want to get a medical marijuana card in Jersey.

Medical marijuana patients need to obtain medical marijuana. But it’s equally important that businesses handling legalized medical marijuana in the Garden State understand everything that’s involved.

The state medical marijuana program has nuances that must be followed. And if you plan to consume or distribute medicinal marijuana in New Jersey, you’ll find all of the information you need here and now.

Medical marijuana patients and business owners in New Jersey need to know what to expect in this budding space. In this post, we cover the ins and outs of the New Jersey medical marijuana card, how to get it, and how to serve a New Jersey resident through the state’s medical marijuana program.

Looking to scale your medicinal marijuana business in New Jersey’s cannabis sector? Northstar is here to help.

Contact us now for expert assistance navigating New Jersey’s medicinal cannabis industry with financial services.

new jersey medical marijuana laws

New Jersey Medical Marijuana Laws

Compassionate Use Medical Marijuana Act

It wasn’t always possible to obtain a medical marijuana card in New Jersey. The Jersey medical marijuana program came along after the Legislature passed the New Jersey Compassionate Use Medical Marijuana Act (CUMMA), or S 88, in January of 2010.

new jersey's medical marijuana

New Jersey’s Medical Marijuana Program

Governor Jon Corzine signed CUMMA into law on January 18, 2010. However, this law was stalled after Governor Chris Christie took office the following day. It wasn’t until August 9, 2012, when New Jersey’s medical marijuana patient registry opened that registered physicians were allowed to initiate patient certifications with the state’s Medical Marijuana Program (MMP).

cannabis lozenges New jersey

S 2842 in 2013

Eventually, more legislation was passed to expand the New Jersey medical marijuana offerings. Through S 2842, New Jersey medical marijuana included edible forms of medical marijuana that can be consumed by patients less than 18 years of age. Governor Christie signed this into law on September 10, 2013.

jake honig jake's law

Jake’s Law

Governor Phil Murphy signed Jake’s Law on June 2, 2019. This law, also known as A 20, was named after Jake Honig, a patient who was using medical cannabis during his battle with cancer. Through this bill, New Jersey medical cannabis laws changed. It added provisions to increase the amount of cannabis allowed, permit home delivery, and expand the accessibility with additional cultivators, retailers, and manufacturers.

The Marijuana Legalization Amendment

Then, on November 3, 2020, New Jersey voters approved the Marijuana Legalization Amendment. This is also known as New Jersey Public Question 1. Through this amendment, the state legalized possession and use of marijuana for adult residents at least 21 years of age.

This same constitutional amendment made the New Jersey state sales tax rate (6.625%) apply to recreational cannabis purchases while allowing local municipalities to impose an additional tax of up to 2%.

The New Jersey Cannabis Regulatory, Enforcement Assistance, & Modernization Act

The New Jersey Cannabis Regulatory, Enforcement Assistance, & Modernization Act

Months later, on February 22, 2021, Governor Phil Murphy signed the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act. Through this new law, possession of up to 6 ounces of cannabis became legal, as did 17 grams of hashish. It also set the marketplace framework up for cannabis business operators.

A1897 in 2021

A1897 in 2021

Governor Murphy also signed A1897, which lessens the penalties for possession for as much as 6 ounces of cannabis flower and 17 grams of hashish. The governor also signed A5342, which made it so minors would receive written warnings instead of criminal penalties or fines for possession of cannabis products.

Where can medical marijuana patients in New Jersey access medical cannabis?

Where can medical marijuana patients in New Jersey access medical cannabis?

Medical marijuana can be accessed through New Jersey’s Alternative Treatment Centers (ATCs). The patient must visit a medical marijuana doctor to get a physician’s recommendation before making their purchase.

What taxes do card holders in New Jersey pay?

What taxes do card holders in New Jersey pay?

Each medical marijuana patient must have a state medical marijuana card. They also have to pay 4% in sales taxes, although that’s expected to be gone by July 2022.

Medical marijuana cardholders in New Jersey can be either patients or caregivers. They can buy up to 3 ounces each month. For terminally ill patients and those on hospice, there’s no monthly limit for the amount of medical marijuana they can buy.

What do medical marijuana patients in New Jersey have access to?

What do medical marijuana patients in New Jersey have access to?

After visiting a licensed medical marijuana doctor in New Jersey, the patient is on the Jersey medical marijuana registry. Then, the medical marijuana patient will have access to the following forms of medical marijuana:

  • Cannabis Flower
  • Cannabis Oil/Concentrate
  • Infused Oral Lozenges
  • Medical Marijuana Topicals

Where can New Jersey medical marijuana patients consume medical marijuana safely? cannabis consumption lounge new jersey

Where can New Jersey medical marijuana patients consume medical marijuana safely?

New Jersey medical marijuana cardholders can consume medical marijuana at their private residences. However, some dispensaries might offer cannabis consumption areas for patients.

The Smoke-Free Air Act

The Smoke-Free Air Act

At this point, patients can smoke medicinal marijuana while adhering to the Smoke-Free Air Act, which allows public consumption in much the same way as tobacco.

Regardless, the fact that medical marijuana establishments are allowed to offer consumption areas is massive for the industry. Medicinal marijuana consumption zones give these operations the chance to appeal to new patients by showing them how to use medical marijuana on-site.

Can New Jersey patients possess medical marijuana?

Can New Jersey patients possess medical marijuana?

Yes, a medical patient can possess up to 3 ounces of New Jersey medical marijuana during a 30-day period. If the medical marijuana cardholder is terminally ill or in hospice care, they don’t have a limit.

Keep in mind, if you’re a medical patient or caregiver in New Jersey, you cannot cultivate cannabis plants.

How to Get a Medical Marijuanas Card NJ

How to Get a Medical Marijuanas Card NJ

How do I get a Jersey medical marijuana card?

First, you’ll need to speak with a doctor registered with New Jersey’s medicinal marijuana program. Jersey patients can only get a medicinal cannabis recommendation from physicians who are registered with the state program.

Once you meet with your physician, you’ll need to ascertain if medicinal marijuana is right for your condition. Terminal illness is usually a quick ‘yes’ for medicinal marijuana. But other conditions will be covered below.

Your medical marijuana evaluation will involve looking over your medical records. But the analysis goes further than your medical history; you’ll need to show that you need medical marijuana products to treat one or more medical conditions.

Here’s a list of the qualifying medical conditions a patient can have to get a medical marijuana card in New Jersey:

  • Amyotrophic lateral sclerosis (ALS), or Lou Gehrig’s disease
  • Anxiety
  • Cachexia, or wasting syndrome
  • Cancer
  • Chronic pain
  • Dysmenorrhea
  • Glaucoma
  • HIV/AIDS
  • Inflammatory bowel disease, including Crohn’s disease
  • Intractable skeletal muscular spasticity
  • Migraines
  • Multiple sclerosis
  • Muscular dystrophy
  • Nausea and vomiting
  • Opioid use disorder
  • Post-traumatic stress disorder
  • Seizure disorder, including epilepsy
  • Terminal cancer or illness, if the physician determines the patient has less than 12 months to live
  • Tourette syndrome

Regardless, you’ll need to become a qualified New Jersey medical marijuana patient. This involves visiting a licensed medical marijuana doctor in the state. You’ll need to register and get a valid state-issued identification card from the Department of Health (NJDOH) Medicinal Marijuana Program, as well.

nj health marijuana card registration

Patient Registration

Next, go to NJ Health’s ‘How to Register’ page. Here’s what you’ll need:

  • Your NJ Health medical marijuana reference number (your doctor will provide this)
  • Passport-style photo from within the last 60 days
  • Government-issued photo ID
  • Proof of New Jersey residency (discussed more in-depth below)
  • Registration fee of $100. However, some patients may pay a reduced fee of $20

You’ll need to submit the application on the NJ Health website. Patients cannot register in person.

Once NJ Health gets your application, it usually takes weeks to process. Once processed, it may take longer to receive your card by mail.

State-issued medical marijuana registry cards are valid for two years from their issue date. However, patients have to check in with their certifying physician a minimum of one time every 12 months.

Whether you need a medical card to treat post-traumatic stress disorder, epilepsy, chronic pain, a terminal illness, or something else, your medical history can tell your marijuana doctor all about your medical conditions. If there’s nothing on your medical records that shows your need for a medical card, you’ll likely need to get some additional tests.

You’ll also need to prove New Jersey residency. This is easy to do, and it can be done by presenting your driver’s license, motor vehicle registration, or voter registration along with three other forms of proof like income tax returns or proof of 12 months’ employment.

What happens after I get a New Jersey medical card?

What happens after I get a New Jersey medical card?

Once you visit your New Jersey medical marijuana doctor, you’ll be allowed to legally buy and consume marijuana products as part of your treatment. Your medical cannabis card will tell Alternative Treatment Centers that they’re allowed to sell to you.

But on the other end of the spectrum, what’s involved in operating one of these ATC’s?

Operating a Medical Cannabis Business in New Jersey

Operating a Medical Cannabis Business in New Jersey

The New Jersey Department of Health is responsible for regulating the state’s ATC’s. If you haven’t already received permission from the Jersey Department of Health, it’s unlikely you’ll be able to open an ATC.

Here’s a list of the ATC’s that currently operate under the regulations of the New Jersey Department of Health:

If you do decide to try opening an ATC in New Jersey, you’ll need to go through the Department of Health, which operates in consultation with the Attorney General’s Office. This entity has developed two screening tools it uses to efficiently and effectively oversee ATCs applying to the Department for permits to grow and dispense medical marijuana in New Jersey.

Through the Compassionate Use of Medicinal Marijuana Act, the Department has the authority to verify the information in all applications to get an ATC permit. It also has the right to ensure effective documentation of each ATC’s operations before issuing the permit. Furthermore, the Department is responsible for overseeing, monitoring, and investigating the activities related to all ATCs interested in operating in New Jersey.

The Department uses the Permitting Request Form and the Personal History Disclosure Form 1 and 2 to review all changes from the original application. It also uses this to collect and consider all relevant information from the ATCs and related entities. This offers guidance as it conducts background checks for all owners, officers, directors, and employees of the ATCs.

Contact the Medicinal Marijuana Program through the New Jersey Health Department to obtain these forms.

Best Practices for Serving Medical Marijuana Card Holders

Best Practices for Serving Medical Marijuana Card Holders

While it’s difficult to start an ATC, recreational marijuana is now legal in New Jersey. If you haven’t already been approved to operate an ATC, you might be considering operating in the state’s recreational space.

Regardless of whether you distribute medicinal or recreational cannabis, you’re likely to serve medical marijuana cardholders. Military veterans, those who have social security disability benefits, and other people with a debilitating medical condition will still shop at adult-use operations.

Here’s a list of tips to keep in mind as you serve medical marijuana card holders in New Jersey:

Welcome New Jersey Patients

Welcome New Jersey Patients

It should go without saying that as a cannabis business operator, you should welcome New Jersey patients with open arms. Besides encouraging patients to shop your assortment of products, you should also have plenty of information about each of your products and how patients can use them to treat their ailments.

Patients who use medical marijuana to treat their conditions need access to services. They will look for information about how cannabis affects the body. Some patients will also want to know how it interacts with other medications they are already taking. You should be ready to answer all of these questions and help patients find the right cannabis products for them.

understand debilitating conditions that need cannabis for treatment

Understand Debilitating Medical Conditions

Many medical conditions qualify patients for medical marijuana in New Jersey. Here’s a list of the medical conditions you should familiarize yourself with if you plan to serve patients in New Jersey.

ALS

Amyotrophic lateral sclerosis (ALS), or Lou Gehrig’s disease, is a condition where your nerve cells gradually die, limiting your ability to control muscle movement.

Medical cannabis can help with ALS by easing stiffness, spasticity, pain, and cramping.

Anxiety

Anxiety is the feeling of unease, worry, or fear. It’s generally triggered by a specific stimulus such as an event or substance.

Medical marijuana helps with anxiety by stimulating the body’s own endocannabinoid system. In particular, THC found within cannabis provides a calming effect that helps reduce anxiety and stress.

Cachexia/Wasting Syndrome

Cachexia, also known as wasting syndrome, is a condition where you lose weight and muscle mass. It’s often caused by heart disease, HIV, cancer, or other diseases.

Medical marijuana can help with cachexia by stimulating appetite, reducing nausea and vomiting, relieving pain, and improving mood.

Cancer

Cancer is the uncontrolled growth of abnormal cells in your body. These cells form tumors that can invade the tissue around them and spread to other parts of your body.

Medical cannabis can help with cancer by inhibiting angiogenesis, or the formation of new blood vessels, in tumors. It can also reduce nausea and vomiting from chemotherapy treatments.

Chronic Pain

Chronic pain can include neuralgia, arthritis, migraines, and sickle cell disease. It’s a lasting pain that continues after the body’s initial injury has healed.

Medical marijuana can help with chronic pain by reducing inflammation, muscle spasms, and stiffness. It can also increase appetite and reduce weight loss associated with chronic pain.

Dysmenorrhea

Dysmenorrhea is pain and cramping associated with menstruation.

Medical marijuana can help with dysmenorrhea by reducing the muscle tension, inflammation, and nausea that contribute to pain and cramping.

Glaucoma

Glaucoma is a condition where your optic nerve becomes damaged. This damages your sight and can eventually lead to blindness.

Medical cannabis can help with glaucoma by reducing the ocular pressure associated with the condition. This way, it reduces one’s risk of optic nerve damage and eventual blindness.

HIV/AIDS

HIV, or human immunodeficiency virus, attacks the patient’s immune system and weakens it over time. AIDS is a later stage version of this condition where this attack depletes your white blood cells to dangerous levels.

Medical marijuana can help with HIV/AIDS by reducing pain, increasing appetite, reducing nausea and vomiting associated with treatment, and improving mood.

Inflammatory Bowel Disease (IBD)

Inflammatory bowel disease, or IBD, is a condition where your intestines become chronically inflamed. This can happen to your small intestine or large intestine.

Medical cannabis can help with inflammatory bowel disease by reducing inflammation and cramping associated with the condition. It can also stimulate appetite and reduce nausea and vomiting from treatment.

Intractable Skeletal Muscular Spasticity

Intractable skeletal muscular spasticity is a condition where the patient has persistent muscle spasms that are resistant to treatment.

Medical cannabis can help with intractable skeletal muscular spasticity by reducing the number of spasms, improving sleep quality, and increasing patient’s feelings of relaxation.

Migraines

Migraines are severe, recurring headaches associated with nausea, photophobia (sensitivity to light), and phonophobia (sensitivity to sound).

Medical cannabis can help with migraines by reducing the number of headaches a patient gets. It’s also known to reduce nausea and vomiting associated with migraine treatment.

Multiple Sclerosis

Multiple sclerosis is a condition where the patient’s immune system attacks the myelin sheath that protects nerve cells. This can eventually lead to muscle weakness and tremors in the patient.

Medical cannabis can help with multiple sclerosis by reducing inflammation, pain, spasms, and drooling associated with the condition. It may also provide relief from depression associated with multiple sclerosis.

Muscular Dystrophy

Muscular dystrophy is a condition where the patient’s muscles become weakened and eventually stop working properly.

Medical cannabis can help with muscular dystrophy by reducing muscle spasms and muscle twitches associated with the disease. It may also improve appetite and reduce weight loss in patients with muscular dystrophy.

Nausea & Vomiting

Nausea is a feeling of unease and discomfort in the stomach that can lead to vomiting. It’s an undesirable side effect of some medications, as well as some diseases.

Medical cannabis can help with nausea and vomiting by improving appetite, reducing gastric pain associated with the conditions, relieving anxiety associated with being sick, and reducing stress caused by pain.

Opioid Use Disorder

Opioid use disorder is when a patient overuses opioid drugs. These drugs have an addictive tendency, which can have a negative impact on the patient’s life and those around them.

Medical cannabis can help with opioid use disorder by reducing withdrawal symptoms, cravings, and the desire to continue using opioids. It’s also known to reduce the pain that opioids are used to treat.

Post-Traumatic Stress Disorder (PTSD)

PTSD is a chronic condition where the patient’s memories of traumatic events can come back to haunt them. It often results in hallucinations, flashbacks, trouble sleeping, and severe anxiety.

Medical marijuana can help with PTSD by reducing stress associated with the disorder, lowering anxiety, and improving sleep quality for patients struggling with PTSD.

Seizure Disorder, Including Epilepsy

Seizure disorder, including epilepsy, is a condition where the patient suffers from recurrent seizures. These seizures can impact physical and mental health in a variety of ways.

Medical marijuana can help with seizure disorder by reducing the severity and duration of seizures for patients struggling with this chronic illness. It’s also known to reduce anxiety associated with living with a chronic illness.

Terminal Cancer or Illnesses

Terminal illnesses are diseases where the patient isn’t expected to live for more than 2 years. Glaucoma, one of the qualifying conditions to obtain medical marijuana in New Jersey, is an example of a terminal illness that is often treated with medical marijuana.

Medical marijuana can help with terminal cancer or illnesses by improving appetite and relieving pain associated with diseases like cancer.

Tourette Syndrome

Tourette’s syndrome and tics are neurological symptoms where the patient makes involuntary sounds or movements. The severity varies from patient to patient.

Medical marijuana can help with Tourette syndrome by reducing tics, relieving stress associated with the condition, and improving sleep quality for patients struggling with this chronic illness.

Offer Flower Cannabis & More to Help New Jersey Patients

It’s common knowledge that smoking flower cannabis is not recommended for patients with certain conditions. Many people who don’t know this also think that medical marijuana is only available in flower form, which isn’t the case.

Patients can find cannabis-infused products like oils, vapes, and edibles at dispensaries around New Jersey. These products are often used to treat qualifying conditions that require different forms of cannabis.

New Jersey has made it very clear that patients should have access to medical marijuana in several forms. Here’s what you should familiarize yourself with to give New Jersey patients the best products for treatment:

cannabis flower new jersey

Cannabis Flower

Cannabis flower might seem basic, but it’s anything but. In New Jersey, many strains are available, and it’s up to you to know which ones will work best for which treatment.

Sativa-dominant strains are great for those who need to increase their appetite because it stimulates the brain and tricks the body into thinking that it’s hungry. Indica-dominant strains are perfect for those who struggle with insomnia.

Cannabis Oil/Concentrate

Cannabis Oil/Concentrate

Extracts such as oil, wax, rosin, shatter, and others come from cannabis flower and represent a potent form of medical marijuana. These extracts are often consumed on their own or used as a substitute for flower.

Cannabis vape cartridges contain oil that’s extracted from cannabis and mixed with a carrier liquid to be inhaled into a vaporizer pen. After the patient inhales, they can instantly feel the effects of medical marijuana without having to smoke flower or wait for edibles to kick in.

infused cannabis lozenges new jersey

Infused Oral Lozenges

Infused oral lozenges are an edible form of medical marijuana. These lozenges come in different flavors and can be used to treat a number of qualifying conditions. The lozenges are much like cough drops and dissolve slowly in the patient’s mouth.

Medical Marijuana Topicals new jersey

Medical Marijuana Topicals

Medical marijuana topicals are used to alleviate pain in a specific area of the body. They come in forms like lotions, transdermal patches, and even bath soaks.

These topicals are effective ways for patients with chronic pain conditions to get needed relief without having to resort to opioids or other pharmaceuticals that could be addicting or dangerous to mix with other medications.

Offer Deals & Discounts to Patients in new jersey

Offer Deals & Discounts to Patients

Offering deals and discounts to patients is an excellent way to show them that you care. It can also help encourage them to try new products and make purchases they might not have considered before.

If you offer deals and discounts, be sure that all patients qualify for the same promotion. It’s wrong to advertise that one patient has access to a deal while others don’t, and patients will appreciate the extra assistance.

Patients really like it when dispensaries offer special promotions and sales on medical marijuana products, so make sure you mention this in your marketing and advertising.

Offer Discounts for Veterans in new jersey

Offer Discounts for Veterans

Military and law enforcement veterans in New Jersey are also medical marijuana patients. The state’s MMJ program allows patients to register as a veteran and receive a reduced price on their purchases.

Make sure that your dispensary offers the same discounts to all veterans, whether they’re patients or not. You can even offer extra specials for military vets stationed in New Jersey’s various veterans homes.

Servicing Medical Marijuanas Card Holders in New Jersey

Looking to scale your operation in New Jersey? Northstar is here to help!

The right financial services will enhance your operations and prepare you for growth. Contact us now to expand your Garden State cannabis business in this budding space now.

Love this article? Here are a few other NJ medical marijuana posts you might also enjoy!

Cost to Start a Grow Operation

Cost to Start a Grow Operation

The cost to start a grow operation can be quite high. But it ultimately depends on what you’re willing to invest.

Minimally speaking, the cost to start a grow operation that will turn a massive profit will usually range in the hundreds of thousands of dollars. However, if you’re looking to build out a grow room on a shoestring budget, it’ll ultimately come down to how many square feet you’ll have in your grow operation.

You’ll need to think about all of the variables involved to accurately determine your cannabis grow operation startup costs. In this post, we’ll cover all of the considerations to give you a good idea of the average startup costs associated with indoor grow rooms and outdoor grows.

Interesting in scaling your grow operation? Northstar is ready to help!

Contact us now to speak with one of our experts about how our financial services will grow your operations in this budding space.

growing cannabis in the legal cannabis industry

Growing in the Legal Cannabis Industry

So, how much does it cost to grow cannabis in the legal space? Well, if you want to grow marijuana legally, you’ll need all the equipment, real estate, and cultivation license.

First, let’s cover the licensing fees for a legal cannabis grow.

Application & Licensing Fees for Cannabis Cultivation

A legal cannabis grow operation needs to worry about the application and licensing fees first and foremost. These costs vary from state to state.

For instance, if you were to get a cultivation license in California for a 22,000 square foot canopy grow operation, you’d have to pay $4,945 for the application fee. You’d also need to pay the annual fee of $44,517.

Other states have their own specifications. But it’s important to remember that while you might save money growing cannabis illegally, it’s best to legitimize your operation.

Average Startup Cost Considerations in Cannabis

Think about how much cannabis you plan to grow. Then, consider whether you’ll use a grow room or focus on large-scale cultivation outdoors.

These operating costs will vastly differ from one another.

Here’s a list of average startup cost considerations for startup businesses growing cannabis.

square footage in cannabis grow room

Square Foot

The big question: how many square foot is your operation?

If you’re a master grower, you probably already know the cost per square foot for growing indoors is significantly more expensive than the average cost to grow weed outdoors. But for the new growers, this is still an important consideration.

If you plan to grow a few plants in your closet, this doesn’t apply to you. However, if you plan to use an industrial space, the price per square foot will rise.

The number of square feet in your operation really becomes costly if you’re planning to rent the space. For example, it could cost nearly $20 per square foot just to rent the space.

This is because landlords tend to charge more than four times as much for anyone looking to participate in the green rush. Regardless of whether you focus on outdoor grows or plan to get into a larger facility for an indoor grow, the ideal environment isn’t going to come cheap.

cannabis grow room with lights

Grow Lights

If you’re not using solar power or growing outdoors, you’re probably wondering what grow lights cost. Growing indoors means you’ll have less reliance on outdoor variables. However, you’ll need more equipment to enhance the environment.

So, how much does it cost to set up LED lights for a larger scale indoor grow?

LED lights are the most expensive option at first. However, they save money for your commercial grow. And this means you’ll get to keep more revenue or allocate it towards other business expenses.

The average cost, minimally speaking, it around $1,800. But this is just part of the cost to start a small operation with minimal plants.

Then, you’ll need to factor in the cost of electricity. But there’s more to it than that.

cannabis grow room air circulation with fan

Air Circulation

Grow room air circulation is essential for humidity control. But how much does it cost to get more fans running and humidity control systems in place?

More fans and more ventilation are needed if you have more plants in your grow room. This is how you maintain an ideal growing environment for your cannabis grow.

For a commercial grow, you’ll likely need to spend at least $100 on each fan. And if your commercial grow is massive, you’ll need quite a few fans and a ventilation system.

All of this costs money, of course. And for a decent size commercial grow, you should expect to spend at least $1,000 on the basic equipment you’ll need to produce air circulation that nurtures each plant.

commercial grow room electricity bill

Electricity

Your grow room will need electricity. But what should you expect to spend on it?

That’s like asking how much does it cost for your electric bill each money without knowing the size of your house and how often you run your air conditioner. This will vary from grow room to grow room.

So, how much money should you expect to pay monthly for your power bill? It depends on what you’re running and the equipment efficiency.

If you have a grow room large enough to generate significant profits, your power bill will probably be $1,500 or more.

watering cannabis plants for commercial grow

Water

Water is essential for cannabis cultivation business success. Some growers even choose to use it as their growing medium as an alternative to soil.

But this is something for master growers.

If you’re just starting your marijuana cultivation business, you’re probably only using water to nurture your plants and flush the soil before harvest.

Most of the time, you’ll spend the same amount on the water as you do on electricity. With this in mind, you’ll likely spend at least $1,000 per month on your water bill if you have a sizable business.

cannabis growing medium costs

Growing Medium

Think about the growing medium you plan to use. If you want to cultivate premium marijuana plants, you can’t go wrong with organic soil. Organic living soil, to be exact.

Organic living soil has all of the nutrients your marijuana plants want and need. And this is something you can’t usually get from hydroponics systems.

However, organic soil isn’t perfect for every type of commercial grow operation. If you plan to use a hydroponics system or some other growing medium like coco coir, you’ll pay less for your initial setup and ongoing costs.

The medium you choose will affect your initial and ongoing costs. So, these can vary depending on your situation.

Consider Rockwool, hydroponics, organic growing soil, and other options. They all range in price, but you can expect to spend between $15 and $30 per plant on the medium.

cannabis nutrients cost

Nutrients

Keeping marijuana plants healthy involves giving them the right nutrition. This is true, regardless of the medium you use for your grow.

The most common type of commercial cannabis fertilizer is a premixed blend that contains various nutrients, vitamins, and other chemicals your plants need to stay strong and resist disease.

Fertilizer costs will vary depending on the brand you choose and how often you plan to fertilize your grow. But, depending on how many plants you’re cultivating, you should expect to spend around $1,000 or more per harvest.

feminized cannabis seeds image

Feminized Seeds

Feminized seeds take the guesswork out of growing marijuana. Rather than risking growing male cannabis plants, you’ll know you have female plants growing.

This is essential to avoid wasting resources on growing male cannabis plants.

Most of the time, you can expect to spend between $30 and $60 on each pack. But ultimately, the cost for feminized seeds is related to the strains you plan on growing.

Indoor Grow Room Costs

An indoor commercial grow produces throughout the year. However, this requires expensive equipment, so expect an indoor operation to cost more money.

Even with this being the case, an indoor marijuana grow has the potential to generate between one and twelve harvests annually. But the initial expenses could exceed what you’re willing to spend on your new cannabis grow operation.

Here’s what you can expect to spend on large scale indoor grows:

Warehouse rental – $50,000+

Build out, improvements – $50,000+

Growing equipment – $100,000+

Lighting system – $100,000+

Alarm & Security System – $25,000+

Licensing & legal fees – $55,000+

Direct costs (first months before profit) – $200,000+

Administrative expenses – $50,000+

Other expenses – $100,000+

Total = $730,000+

Concluding on Grow Operation Costs

Your grow operation will cost more than just seeds and nutrients. You’ll find yourself spending on electricity, water, and other supplies to get your grow started.

You can cut down some of your expenses, but ultimately, you’ll need to account for everything you spend on. This is something that can be handled with financial services.

Looking to scale your grow? Northstar is ready to help.

Contact us now for insight into how our financial services will expand your grow in this budding space.

If you liked this post, here are a few others you might enjoy, too!

Cannabis Dispensary Profit Margin Insight

Cannabis Dispensary Profit Margin Insight

Operating a cannabis dispensary? Thinking about dipping your toes in the cannabis industry as a dispensary owner?

In this post, we cover everything you should know about operating a successful cannabis dispensary from a financial perspective.

Looking for expert assistance managing your legal cannabis business’s financials? Northstar is ready to increase your dispensary’s profitability!

Contact us now to learn more about how we’ll enhance your weed profits with the right financial services.

average dispensary profit margin example

What is the Average Dispensary Profit Margin?

Whether you’re operating in medical or recreational marijuana, your average profit margin is important. Besides the cost of opening a dispensary, other expenses exist – and these will impact your profit margin.

Medical and recreational marijuana cannabis dispensaries usually operate with an average net profit margin between 15 and 21 percent after accounting for taxes. However, equally important to note is that this percentage varies in accordance with state or provincial regulations.

The cannabis dispensaries distributing medical marijuana and recreational cannabis usually have the best net profit margin. However, creative recreational dispensaries can dominate the dispensary space, too.

Cannabis Industry Banking Fees

Operating Expenses

After your initial investment to open your doors, you’re ready to operate. But ongoing expenses can affect profitability.

Here’s a list of the expenses likely to affect your operating profit margin:

Operating Expenses cannabis dispensary jars of buds

Cannabis Real Estate

Besides the initial licensing fees for cannabis businesses, dispensaries should expect to spend at least $100,000 annually in rent. But if you find real estate for cannabis that requires renovations, this could increase the initial cost to $50,000 or more.

However, if the cannabis dispensaries locations are purchased outright, dispensary owners mainly have to worry about property taxes impacting their net profit margin. For additional insight, make sure to check out our post on buying commercial cannabis property.

Cannabis Industry Banking Fees

Part of your estimated annual revenue will go towards banking fees. It costs money to have your own growing business, but the cost of banking is higher in this grey-area space.

Since cannabis is still technically federally illegal in the US, many banks still refuse to work with dispensaries. However, it’s still possible to work with credit unions and private marijuana banks in some regions. Even with this being the case, some of these organizations will charge holding fees as high as $2,000 per month.

cctv and cannabis image

Electronics

Cannabis businesses need electronics to operate successfully. Each square foot of space could be holding thousands or even tens of thousands of dollars worth of inventory. So, you’ll need a security system and a fully compliant POS system to manage your inventory.

cannabis advertising

Advertising Budget

Advertising budgets in cannabis vary, of course. But, depending on your location, you may need to invest more than a quarter of your annual revenues in an advertising budget to compete.

cannabis lawyer attorney

Attorney on Retainer

While a dispensary makes money, these earnings don’t always come without risk. This is why it’s a good idea to have an attorney on retainer.

Dispensaries are especially vulnerable to lawsuits. Thus, having an attorney ready for a worst-case scenario situation is always ideal in this space. This could cost up to $50,000 annually.

cannabis dispensary employees staff

Employees

Even a smaller dispensary serving the adult market will need a team to operate successfully. Depending on the size of your cannabis operation, your annual payroll could be $250,000 or more!

Operating Expenses

How Much Does a Dispensary Owner Make?

How much a dispensary owner makes depends on several variables. For example, medicinal weed sales might earn more in one cannabis market than it does in another. However, in some spaces, medical marijuana might not be as popular as adult use.

Furthermore, your cannabis business might grow its own marijuana indoors. This would minimize your inventory cost while allocating some of your operating income towards elevated utility costs.

The money dispensaries or cannabis retailers spend on inventory varies. Some might spend more to supply stores with special medical-grade strains while others need to focus on stocking other cannabis products like extracts or edibles.

Operating dispensaries isn’t an exact science. But you can learn a lot from your sales data and use this to increase your annual revenue and average profit margins.

But how much money should you expect as a dispensary operator? If your business generates over $5 million annually, you could expect to pay yourself an annual salary of $500,000+.

how much does a cannabis dispensary in sales

How Much Does a Dispensary Make in Sales?

Dispensary sales are much like coffee shops; annual sales depend on several factors.

Think about the market competition. Dispensaries focusing on patient access to marijuana can run a profitable company. But they miss the adult-use market.

However, entrepreneurs interested in operating a dispensary in the recreational marijuana space will need a strong marketing campaign to acquire customers. Medical dispensary businesses will also need marketing, but the operation can become profitable based solely on word of mouth if they’re in the right location.

If a location is saturated, running a profitable marijuana business becomes more difficult. Business opportunities become more profitable with less competition, and this holds true in cannabis, too.

cannabis and money

Tips for Maximizing Dispensary Profit Margins

Find Your Break-Even Point

Use the break-even formula to determine your break-even point. This is the point at which marijuana dispensaries break even, meaning this is the minimum dispensaries must earn to continue operating.

Check each month’s revenue receipts to determine whether you’re within the threshold of breaking even. Marijuana dispensaries are notorious for having high inventory costs. But if you’re selling enough product to cover all costs and then some, your cannabis supply store could be running at a profit.

Research Your Competition

Marijuana prices have been dropping throughout the US. As more competition enters the space, more marijuana is available, and this drives the price down.

Look at your competition. They likely use professional packaging, sales, and digital marketing to increase their market share. See what you can do and how you can improve upon what your competition is doing.

Improve Your Product Offerings

Whether you operate a recreational cannabis supply store or a dispensary focused on medical marijuana, you’ll need to offer more than just cannabis.

You need unique and preferred dispensary products to stock your shelves.

You might even go the extra mile for your customers by offering their favorite infused snacks or drinks. You can win over customers by analyzing what the market demands.

For example, your average supermarket might notice that more customers are looking for organic items. To compete with the local Whole Foods Store, it might begin offering more organic options.

For a dispensary, you might notice that more people are looking for quality concentrates. If this is the case, sourcing these products from top producers could be a good idea. While you might need to charge a premium, you could maximize your profit margins by offering products no one else is offering.

The same goes for impressive flower strains, edibles, and other product offerings.

Offer Promotions

Doing promotions on a limited-time basis is a good way to increase dispensary sales. And if it’s something you can purchase in bulk at a great price, you could increase your profit margins tremendously with the right promotion.

For example, you can run a promotion offering a first-time discount on concentrates on first visits. You could even try implementing a loyalty program that offers customers high-quantity discounts for purchasing regularly from your dispensary.

You might also consider providing a daily deal. You could offer 50% off a single item or a free gram with a purchase of an ounce.

Streamline Your Operations

One of the simplest most direct ways to optimize a dispensary’s profitability is to make it more efficient. Identify your operation’s daily functions and look for ways to reduce costs. With the right system of checks and balances in place, you can ensure your business is operating as cost-effectively as possible.

Business owners should also make every effort to only carry the products they need. Being selective about inventory will help save on monthly carrying costs while minimizing costs related to these risks.

For example, if you’re already paying rent for space, using that space effectively can increase dispensary revenue and profits. What’s more, adding storage shelves or cabinets to that space can help you store more product, allowing you to purchase in bulk at a discounted rate.

Manage Your Inventory

Inventory control is one of the most critical aspects of operating a marijuana dispensary. Government regulatory requirements in the US demand dispensaries closely monitor their inventory. Without a POS system in place to manage inventory data in real-time, inventory audits and discrepancy reporting are nearly impossible, and this can result in costly compliance violations that put dispensaries out of business.

Also, if you lose track of what you have, you could find yourself with excess products and nowhere to store them. Or worse, if your records aren’t accurate, you could run out and jeopardize the health and well-being of your customers.

You can avoid these issues by ensuring that your inventory records are organized and up-to-date. This can also help you make better purchasing decisions moving forward.

Consider Costs

Staying mindful of dispensary costs is essential for success in this competitive industry. Profitability depends on bringing money in. But if costs become too excessive, this can become a serious problem.

Regularly monitor your dispensary expenses and make adjustments as needed. Focus on the expenses that have the most significant impact on the business’s profitability, and outsource critical non-retail operations to experienced professionals.

Think about your marketing activities and how you can enhance them. Use your sales data insight to get the most out of your marketing budget, as well.

Dominating the Cannabis Industry with Northstar

The marijuana industry is growing exponentially every year, and attracting more people to the market means that there’s room for many dispensaries to do well in spite of competition from larger businesses.

Looking to increase your dispensary’s profitability? Northstar scales dispensary profit margins successfully with the right financial guidance.

Contact us now to learn more about how we’ll grow your dispensary in this budding space.

If you liked this post, here are a few others you might enjoy, too!

Virginia Marijuana Legalization FAQs

Virginia Marijuana Legalization FAQs

Now that Virginia marijuana legalization is just on the horizon before marijuana sales begin, it’s important to understand the rules in place. The Cannabis Control Authority of Virginia will regulate marijuana plants, marijuana sales, and other key aspects of this budding space’s regulatory framework.

In this post, we cover some of the most frequently asked questions about selling marijuana, possessing products made from the marijuana plant, commercial sales, and more. Keep reading to learn how the legal sale of this formerly prohibited plant will look once the new law takes effect.

Looking to break into the Virginia legal marijuana space in this southern state? Northstar is ready to help you get your share of the green rush!

Contact us now to learn how we’ll use processes and financial organization to scale your operation in time for the CCA to issue business licenses!

Virginia Marijuana Legalization

Virginia Marijuana Legalization

Now that Virginia is on the path to legalize marijuana, the state will go beyond allowing minimizing marijuana-related offenses. The licensing provisions will eventually allow for the legal sale of these products, and while it’s still currently illegal to possess marijuana in some places, the state will stop restricting marijuana businesses from operating once the regulatory framework is in place.

For now, here’s what Virginia’s law on cannabis will allow:

✓ Adults (21+) to possess marijuana (up to one ounce) in public;

✓ Adult-sharing of no more than an ounce in private without remuneration;

✓ The continuation of the state’s medical cannabis program that allows medical marijuana purchases at Virginia dispensaries; and

✓ Personal cultivation of up to four plants per household by adults 21+ at their primary residence.

what remains illegal under virginia marijuana legalization

What Remains Illegal?

While it’s big news that marijuana-related offenses will no longer be so commonplace, much remains illegal, including the following:

X Public consumption

X Buying or selling cannabis seeds or cannabis products

X Gifting schemes to give cannabis away

X Possession of cannabis on school grounds or a school bus

X Consumption in a motor vehicle while being driven (passenger or driver)

X Open cannabis containers in a vehicle

X Possession or consumption of marijuana by persons younger than 21

X Buying or selling cannabis outside of the state’s medical program

X Sharing or offering marijuana in public

Personal Cultivation Guidelines for Marijuana Plants in Virginia

Personal Cultivation Guidelines for Marijuana Plants

Now you know you can’t use marijuana on school grounds, on a school bus, or while driving. But what about growing it at your private residence? What does this entail?

Here’s some more insight into personal cultivation guidelines for those who want to grow at their private residence:

  • Each plant needs a tag with the owner’s name, driver’s license/state ID number, and for personal use;
  • Plants must be hidden from the public;
  • Prevent unauthorized access by any persons under 21;
  • Cultivation is allowed indoors or outdoors but rental housing or an apartment owned by someone else can prohibit grow operations; and
  • Cultivation is only allowed at the person’s primary residence.

Motor Vehicle Transporting Passengers/Commercial Vehicle Possessing Marijuana School Bus

Motor Vehicle Transporting Passengers/Commercial Vehicle Possessing Marijuana

Marijuana-related offenses can occur on the road, and in some cases, they can result in driver’s license forfeiture. Here’s a list of the complete regulations in effect with Virginia’s law:

  • It’s illegal to drive while impaired;
  • Drivers or passengers cannot consume marijuana or possess an open container of cannabis while a vehicle is in operation;
  • Cannabis transportation must be done in a completely sealed (preferably locked) container located in the trunk of a passenger vehicle, or in the area behind the last upright seat of a hatchback, station wagon, SUV, passenger van, or similar vehicle out of the driver’s reach.

 Adult-Sharing Guidelines

  • Adults 21+ may share up to one ounce of cannabis in private, much like they could share a bottle of wine
  • Cannabis may not be offered to or shared with anyone in public
  • There may not be any exchange of goods or services (no gifting schemes)

Other Common Virginia Marijuana Questions

Where can I buy cannabis in Virginia?

Legal retail sales are only allowed by licensed dispensaries to registered medical marijuana patients. To receive your certification for the medical cannabis program, you’ll need to speak with a licensed medical practitioner.

Can I order cannabis from a legal state?

No. Importing or transporting cannabis across state lines is still illegal.

Can I buy seeds in Virginia?

No. At this point, until the 2022 General Assembly confirms it once more, retail sales are not allowed in Virginia.

Can I order seeds online?

No. Even if the site says you’re allowed to order seeds to grow your four plants per household, it’s still not legal to order seeds online.

Can my business give away or sell seeds or clones?

No, “Adult sharing” does not include giving away or selling seeds or clones. The list prohibiting this includes the following (i) marijuana is given away contemporaneously with another reciprocal transaction between the same parties; (ii) a gift of marijuana is offered or advertised in conjunction with an offer for the sale of goods or services, or (iii) a gift of marijuana is contingent upon a separate reciprocal transaction for goods or services.

Is it legal to give away seeds, plants, or cannabis in public?

No, it’s illegal to offer cannabis in public. Here’s the exact rule:

4.1-1108. Consuming marijuana or marijuana products, or offering to another, in a public place; penalty.

  1. No person shall consume marijuana or a marijuana product or offer marijuana or a marijuana product to another, whether accepted or not, at or in any public place.
  2. Any person who violates this section is subject to a civil penalty of no more than $25 for a first offense. A person who is convicted under this section of a second offense is subject to a $25 civil penalty and shall be ordered to enter a substance abuse treatment or education program or both, if available, that in the opinion of the court best suits the needs of the accused. A person convicted under this section of a third or subsequent offense is guilty of a Class 4 misdemeanor.

Can I open a consumption venue for cannabis?

No. “Public place” includes any place, building, or conveyance that the public has, or is permitted to have, access. This also includes restaurants, hotel dining areas, hotel lobbies, and corridors. But the definition also includes any park, place of public resort or amusement, highway, street, lane, or sidewalk adjoining any highway, street, or lane.

My plants will produce more than one ounce. Is that legal?

The law explains that “a person 21 years of age or older may lawfully possess on his person or in any public place not more than an ounce of marijuana.” However, the state lacks a law specific to what an adult 21+ may possess in private. Keep in mind, you cannot have more than an ounce on your person for personal use at any time. And if you get caught with intent to distribute, you may need legal counsel.

How much marijuana concentrate/edible can I possess?

Until the Virginia Cannabis Control Authority implements its regulations during the legalization process, there isn’t an equivalent possession limit specification. Virginia officials have defined the limit for legal possession on their person or in public by adults 21+ as one ounce of marijuana until regulations regarding other cannabis products can be enacted.

What about paraphernalia?

There’s a new definition for “marijuana paraphernalia” that went into effect on July 1, 2021. It removes the term “marijuana” from § 18.2-265.1 but still requires reenactment by the 2022 General Assembly for it to become law. However, the intent of this legislation was not to legalize cannabis consumption, possession, and cultivation of cannabis by adults 21 years of age and older while keeping these devices illegal

4.1-600. Definitions. (Effective July 1, 2021)

“Marijuana paraphernalia” means all equipment, products, and materials of any kind that are either designed for use or are intended for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, strength testing, analyzing, packaging, repackaging, storing, containing, concealing, ingesting, inhaling, or otherwise introducing into the human body marijuana.

Can I be fired for testing positive?

Yes. Limited employment protections are only extended to registered medical cannabis patients.

40.1-27.4. Discipline for employee’s medicinal use of cannabis oil prohibited.

  1. As used in this section, “cannabis oil” means the same as that term is defined in § 54.1-3408.3.
  2. No employer shall discharge, discipline, or discriminate against an employee for such employee’s lawful use of cannabis oil pursuant to a valid written certification issued by a practitioner for the treatment or to eliminate the symptoms of the employee’s diagnosed condition or disease pursuant to § 54.1-3408.3.
  3. Notwithstanding the provisions of subsection B, nothing in this section shall (i) restrict an employer’s ability to take any adverse employment action for any work impairment caused by the use of cannabis oil or to prohibit possession during work hours, (ii) require an employer to commit any act that would cause the employer to be in violation of federal law or that would result in the loss of a federal contract or federal funding, or (iii) require any defense industrial base sector employer or prospective employer, as defined by the U.S. Cybersecurity and Infrastructure Security Agency, to hire or retain any applicant or employee who tests positive for tetrahydrocannabinol (THC) in excess of 50 ng/ml for a urine test or 10 pg/mg for a hair test.

Will I lose my guns?

Losing your guns as a result of cannabis legalization doesn’t seem likely. You’ll need to answer background check questions about marijuana use, but it’s doubtful that you’ll need to worry about losing your guns as a cannabis consumer or business operator.

Concluding on Virginia Marijuana Legalization

As a consumer, you’ll experience more freedom with the plant than ever before. You can hold up to an ounce of marijuana on your person, grow it at home, and consume it. It won’t be long until you’ll be able to start making your purchases at a local dispensary.

For business operators looking to get involved in Virginia’s cannabis space, the opportunities are just on the horizon. Once the 2022 General Assembly reconfirms legalization and implements the state’s regulations, we can expect the social equity program to take precedence as cannabis business licenses are awarded.

Social equity is essential for Virginia as intent to distribute and simple possession violations have historically impacted certain communities more than others. With this in mind, those originally sentenced to prison for simple possession or other cannabis-related offenses experienced the worst this industry has to offer.

Looking to become involved in Virginia’s cannabis space? Northstar is here to guide your success!

Contact us now to speak with one of our experts about how your budding operation will scale with the right financial services and processes in place.

Interested in state cannabis laws? Make sure to check out our other Virginia posts, too!

Virginia Marijuana Laws, Penalties, & Sales