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Cannabis Economics
1
2
3
Top 5 working medical marijuana programs
Washington - 6,724,540
Colorado - 5,029,196
Arizona - 6,392,017
Oregon - 3,831,074
2010 Census population
4
After 10+ years of medical marijuana 4 states decided to
regulate retail sales
all states took a slightly different approach
5
6
With time citizen’s sentiments about legalization has begun to
shift
7
• Retail Marijuana Market
will soon surpass
medical
8
9
*CO, WA, & OR legislators have all cautioned that marijuana tax rate should not be so high
as to prevent elimination of the black market
**Be cautious with revenue estimates, it takes time to develop
10
CO Marijuana Tax & License Revenue
11
CO marijuana market compared to other
industries
12
• Visitors accounted for about 50%
of retail sales in Denver area
• And about 90% of retail sales in
mountain resort communities
13
14
• Contrary to popular beliefs many
canna-businesses are now able to
bank
15
16
Many believe loosening marijuana prohibition will lead to larger amounts of traffic
fatalities, but the numbers don’t seem to support the assumption
17
CO DUI’s decreased after legalization
18
• To reassure the public
that drugged driving will
not be an issue post
legalization, CO has
increased funding for
drug recognition experts
19
• Drug use prevention, and education
is key therefore marijuana revenue
has been allocated for such
• Following legalization teen
marijuana use has remained stable
across the nation
20
In FY 1990, general fund corrections spending in Kentucky totaled $140 million. In FY 2010, that amount
was $440 million, a 214% increase


KY Inmate per year
Class D Felony $11, 866 - $59,331
Class A
Misdemeanants
$2873 - $11,650
Class B
Misdemeanants
$2873
As of August 30, 2015 there
were 22,437 prisoners in
KY
67% arrested are for
marijuana possession
KY state corrections costs have increased from slightly over $11 million in 1974 to $499,067,400 budgeted for
FY 2016
Is it time for KY to take a new approach?
Safety
Facility
License (fee)
KY
Cannabis
Enforcement
Department
Producers
License (fee)
Compassion
Center License
(fee)
Compassion
Center provides a
safe environment for
licensed patients to
purchase medical
cannabis
Produces cannabis
products for
Compassion Center
Safety
Facility is
product
quality control
Agricultural
Department
Public
Protection
Cabinet
Department
of Health
Patient
License
(fee)
Cultivator
License
(fee)
Cultivates
Cannabis for
Compassion
Center
21
We suggest the creation of the
KY Cannabis Enforcement
Department
KY Public Protection Cabinet - protects the public through effective enforcement and regulation
to prevent unscrupulous practices in the cannabis sector maintaining a chain of control from
production to sale
KY Cannabis Enforcement Department (KCED) - regulates the commonwealth's cannabis program,
licenses cannabis patients & all citizens involved in the cannabis industry, in addition to educating
consumers & license owners about compliance & best practices
Cultivator - is an entity licensed through KCED, to grow cannabis for a Compassion Center in compliance
with regulations set forth by KCED
Producer - is an entity licensed through KCED, to manufacture & package cannabis grown by the licensed
Cultivator for the licensed Compassion Center in compliance with regulations set by KCED
Safety Facility - is an independent entity licensed through KCED, to assist all cannabis
establishments in maintaining compliance with regulations set forth by the KCED before patient
consumption
Compassion Center - is an entity licensed through KCED, that provides a safe environment for a
licensed patient to purchase medical cannabis products in compliance with regulations set forth by
the KCED
Patient - is a qualifying KY resident licensed through KCED, to purchase & consume cannabis products
in compliance with regulations set forth by the KCED
KY Agricultural Department - ensures that licensed Cultivators & Producers remain in compliance
to regulations set forth by the KCED
KY Department of Health - ensures that licensed Compassion Centers & patients are in compliance
with regulations set forth by the KCED
L
I
C
E
N
S
I
N
G
LEGEND
22
23
• All participants must register through the state
•Must be registered to enter any cannabis facility
• Law enforcement has 24 hour registry access
• NO bill board, radio, or TV advertisements
•Program fees pay for drug prevention, education & enforcement
• Practitioners may not refer compassion centers or vice versa
• Any cannabis facility must be 1000ft from property line of schools
• Cultivated cannabis must be in a “Enclosed, locked facility”
• NO public smoking
• Employers need not cater to registered patients
• Cannabis products must be in approved child safe containers
• DUI/DWI remains illegal
•Cardholders risk loosing license
Enforcement Questions
24
Medical Cannabis Revenue Projections
25
Revenue
Projections for
KY Responsible
Cannabis Use
Program
26
This is a synopsis of studies performed by State/Federal
Governments, and or National/State organizations.
Sources are available upon request. Request can be
emailed to ky4mm2014@gmail.com

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Cannabis Economics

  • 2. 2
  • 3. 3 Top 5 working medical marijuana programs Washington - 6,724,540 Colorado - 5,029,196 Arizona - 6,392,017 Oregon - 3,831,074 2010 Census population
  • 4. 4 After 10+ years of medical marijuana 4 states decided to regulate retail sales all states took a slightly different approach
  • 5. 5
  • 6. 6 With time citizen’s sentiments about legalization has begun to shift
  • 7. 7 • Retail Marijuana Market will soon surpass medical
  • 8. 8
  • 9. 9 *CO, WA, & OR legislators have all cautioned that marijuana tax rate should not be so high as to prevent elimination of the black market **Be cautious with revenue estimates, it takes time to develop
  • 10. 10 CO Marijuana Tax & License Revenue
  • 11. 11 CO marijuana market compared to other industries
  • 12. 12 • Visitors accounted for about 50% of retail sales in Denver area • And about 90% of retail sales in mountain resort communities
  • 13. 13
  • 14. 14 • Contrary to popular beliefs many canna-businesses are now able to bank
  • 15. 15
  • 16. 16 Many believe loosening marijuana prohibition will lead to larger amounts of traffic fatalities, but the numbers don’t seem to support the assumption
  • 17. 17 CO DUI’s decreased after legalization
  • 18. 18 • To reassure the public that drugged driving will not be an issue post legalization, CO has increased funding for drug recognition experts
  • 19. 19 • Drug use prevention, and education is key therefore marijuana revenue has been allocated for such • Following legalization teen marijuana use has remained stable across the nation
  • 20. 20 In FY 1990, general fund corrections spending in Kentucky totaled $140 million. In FY 2010, that amount was $440 million, a 214% increase 
 KY Inmate per year Class D Felony $11, 866 - $59,331 Class A Misdemeanants $2873 - $11,650 Class B Misdemeanants $2873 As of August 30, 2015 there were 22,437 prisoners in KY 67% arrested are for marijuana possession KY state corrections costs have increased from slightly over $11 million in 1974 to $499,067,400 budgeted for FY 2016 Is it time for KY to take a new approach?
  • 21. Safety Facility License (fee) KY Cannabis Enforcement Department Producers License (fee) Compassion Center License (fee) Compassion Center provides a safe environment for licensed patients to purchase medical cannabis Produces cannabis products for Compassion Center Safety Facility is product quality control Agricultural Department Public Protection Cabinet Department of Health Patient License (fee) Cultivator License (fee) Cultivates Cannabis for Compassion Center 21 We suggest the creation of the KY Cannabis Enforcement Department
  • 22. KY Public Protection Cabinet - protects the public through effective enforcement and regulation to prevent unscrupulous practices in the cannabis sector maintaining a chain of control from production to sale KY Cannabis Enforcement Department (KCED) - regulates the commonwealth's cannabis program, licenses cannabis patients & all citizens involved in the cannabis industry, in addition to educating consumers & license owners about compliance & best practices Cultivator - is an entity licensed through KCED, to grow cannabis for a Compassion Center in compliance with regulations set forth by KCED Producer - is an entity licensed through KCED, to manufacture & package cannabis grown by the licensed Cultivator for the licensed Compassion Center in compliance with regulations set by KCED Safety Facility - is an independent entity licensed through KCED, to assist all cannabis establishments in maintaining compliance with regulations set forth by the KCED before patient consumption Compassion Center - is an entity licensed through KCED, that provides a safe environment for a licensed patient to purchase medical cannabis products in compliance with regulations set forth by the KCED Patient - is a qualifying KY resident licensed through KCED, to purchase & consume cannabis products in compliance with regulations set forth by the KCED KY Agricultural Department - ensures that licensed Cultivators & Producers remain in compliance to regulations set forth by the KCED KY Department of Health - ensures that licensed Compassion Centers & patients are in compliance with regulations set forth by the KCED L I C E N S I N G LEGEND 22
  • 23. 23 • All participants must register through the state •Must be registered to enter any cannabis facility • Law enforcement has 24 hour registry access • NO bill board, radio, or TV advertisements •Program fees pay for drug prevention, education & enforcement • Practitioners may not refer compassion centers or vice versa • Any cannabis facility must be 1000ft from property line of schools • Cultivated cannabis must be in a “Enclosed, locked facility” • NO public smoking • Employers need not cater to registered patients • Cannabis products must be in approved child safe containers • DUI/DWI remains illegal •Cardholders risk loosing license Enforcement Questions
  • 26. 26 This is a synopsis of studies performed by State/Federal Governments, and or National/State organizations. Sources are available upon request. Request can be emailed to ky4mm2014@gmail.com