The California Governor’s Office of Business and Economic Development (GO-Biz) announced a new batch of cannabis tax revenue community investments on May 31. This round’s grants for fiscal year 2023-2024, which was given to recipients from the California Community Reinvestment Grants program (CalCRG), includes 30 organizations and a total of $46.6 million.

In order to be chosen to receive funds through the CalCRG program, applicants must meet a variety of criteria. Organization must be organized and in good standing six months before being chosen, must maintain their tax-exempt status with the IRS and California Franchise Tax Board, must be an active registered organization through the California Secretary of State’s Office, and have a physical address in California, among other requirements.

The most recent round of applicants includes two organizations located in Alameda County, two in Contra Costa county, two in Fresno County, one in Humboldt County, nine in Los Angeles County, two in Sacramento County, one in San Diego County, three in the city and county of San Francisco, and two in Santa Cruz County. Additionally, six applicants hold established residence in more than one county.

Among the recipients with the highest amount of funds granted, four received $3 million, including Poverello House in Fresno County, Downtown Women’s Health Center in Los  Angeles County, and Get Lit-Words Ignite, Inc. in Los Angeles County, and PRC in City/County of San Francisco. The lowest granted amount included was Monument Impact in Contra Costa County, which received $600,000.

The program first began accepting applications from organizations in 2018. In April 2020 for FY 2019-2020, GO-Biz awarded $30 million in cannabis tax revenue toward 54 organizations. The following year, FY 2020-2021 awarded 59 organizations which received a portion of $15 million. For FY 2021-2022, 78 organizations received a split amount of $35.5 million. Last year for FY 2022-2023, GO-Biz awarded $50 million to 31 organizations. And then of course, the most recent round for FY 2023-2024 saw $46.6 million given to 30 organizations.

In reviewing the past few years of grant results, the amount of cannabis tax revenue funds has generally increased (the highest being funds granted in FY 2022-2023), although the number of organizations chosen has decreased.

This upcoming August, GO-Biz also confirmed that it would reopen its window for applicants to apply for funds once again, which will be reviewed and likely awarded sometime in spring 2025.

In a recent breakdown of cannabis tax revenue in each U.S. state, Marijuana Policy Project shows that California generated a total of $5.7 billion since legalization began in 2018 through 2023. In the beginning, the state collected $397 million, followed by $638 million in 2019, $1.11 billion in 2020, $1.4 billion in 2021, $1.1 billion in 2022, and $1.1 billion in 2023. This is based on a tax rate of 15% excise tax and standard 7.25% sales tax.

California collected the most cannabis tax revenue, followed by Illinois which generated $1.9 billion between 2020- partial 2024 data. Between 2014-2023, Washington state has collected $4.1 billion in cannabis tax revenue, and between December 2019-partial 2024 data, Michigan has collected $1.2 billion.

The GO-Biz annual cannabis tax revenue grant isn’t the only state effort to allow cannabis tax revenue to go back into the community. It also recently awarded $12 million to “to advance economic justice for populations and communities impacted by cannabis prohibition and the War on Drugs by providing support to local jurisdictions as they promote equity in California and eliminate barriers to enter the newly regulated cannabis industry for equity program applicants and licensees,” the grant description stated.

The funds were split among 10 cities and/or counties for FY 2023-2024. This included the city of Oakland ($3 million), city/county of San Francisco ($2 million), Trinity County ($1.8 million), Mendocino County ($1.8 million), city of Sacramento ($1.2 million), city of San Jose ($1 million), Humboldt County ($600,000), city of Coachella ($350,000), city of Daly City ($75,000), and city of Santa Monica ($40,000).

In March, the San Jose City Council published a press release stating that the funds would help the city develop its local cannabis industry. “We are thrilled to support the City of San José’s efforts to reduce barriers to entry into the legal, regulated cannabis industry,” said GO-Biz Deputy Director of Community and Local Equity Grants, Will Koch. “We look forward to this grant providing the technical assistance and funding to support equity in licensing and cannabis business registrations.”

Director of the Office of Economic Development and Cultural Affairs, Nanci Klein, explained the necessity of the program. “San José’s Office of Economic Development and Cultural Affairs is committed to driving a competitive economy that increases the prosperity and quality of life for all our residents and business owners,” Klein said. “The Cannabis Equity Business Academy seeks to equalize the playing field in this complex and heavily regulated business sector, and I am glad to say that of the 29 San José residents participating in the Academy, 86% of them identify as Asian, African and Native American, Latino or Pacific Islander.”

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A new report from the Arkansas Department of Finance and Administration (DFA) shares a variety of facts about the state’s medical cannabis program, which launched in May 2019.

According to the Arkansas Advocate, dozens of storefronts have opened over the past five years, and an estimated 102,000 medical cannabis patient cardholders have approved.

In total sales, medical cannabis has generated $1.1 billion since 2019 but for this year alone, the state collected approximately $68 million (between January through March), and just $45 million between February and March.

The report shows that $31.32 million was collected in medical cannabis annual revenue in 2019, which jumped to $181.8 million in 2020, $264.9 million in 2021, $276.3 million in 2022, and finally $282 million in 2023.

Although sales reported in 2024 so far (approximately $2 million less than in 2023), there has been an increase in products sold, with 13,804 sold in 2023 and 17,240 in 2024 so far. This noteworthy observation, according to Arkansas Department of Finance and Administration spokesperson Scott Hardin. “That’s a reflection of the more competitive pricing, which is great news for patients,” Hardin said.

An estimated $127 million in cannabis tax revenue has been collected over the past five years (approximately $5 million came from February and March 2024 alone). The law sets aside 4% of cannabis taxes to help provide meals for students who are on free or reduced lunch programs. The amount of cannabis products in pounds has steadily increased over time as well with 4,735 pounds sold in 2019, 28,021 in 2020, 40,347 in 2021, 50,547 in 2022, and 62,227 in 2023.

When medical cannabis sales first began in 2019, only 11,000 patients were approved cardholders. One year later, cardholder numbers increased to approximately 43,000, and finally the most recent cardholder number has surpassed 102,000. “The pace of it has varied, but the fact that we’ve consistently increased to where we are today with more than 100,000—it’s going to be interesting to see going forward if that continues over the next couple of years,” Hardin said. Current cardholder data shows that most patients use medical cannabis for post-traumatic stress disorder, followed by intractable pain.

An estimated 53%, or 92,494 cardholders, are women, according to data reported in June 2023. Additionally, patients between the ages of 25-44 hold the most cards than any other age range, and in terms of race, 84% of cardholders are white.

The DFA doesn’t show sales data for April at the moment, but Hardin noted that $2 million in sales were collected on 4/20 alone, which is three times more than the daily average (about $750,000).

Arkansas Cannabis Industry Association president, Bill Paschall, has become a mainstay in cannabis policy and regulations. He told the Arkansas Advocate that he has often spent days chatting with legislators to keep them up to speed with what’s going on in the world of weed.”

Although Paschall didn’t have any experience in medical cannabis previously, he has spent the past five years understanding the industry. One of his most important observations is that medical cannabis in Arkansas hasn’t led to any harmful effects on society. “The fears that people expressed when this first passed in 2016 have not come to bear,” said Paschall. “We’ve not seen social upheaval or spikes in kids with drug issues due to medical marijuana. … The industry is well regulated in Arkansas, and because it’s well regulated the folks who buy medical marijuana can have confidence in what they’re buying.”

Natural Relief Dispensary owner David Berman manages the second top performing dispensary in the state, having sold 1,067 pounds of cannabis products in February and March 2024. According to Berman, a majority of the products sold at his dispensary is flower. “Most of our patients are just used to that consumption method,” Berman said. “But as our market matures, we’re educating them on the other consumption methods like edibles, vape cartridges and concentrates.”

Currently, Arkansas allows for a maximum of 40 dispensaries statewide, while only 38 operating dispensaries. The remaining two slots for dispensary licenses have been delayed for approval to do recent litigation.

First involves Green Springs Medical Marijuana Dispensary in Hot Springs, Arkansas, which had its license revoked on May 2. The Arkansas Alcoholic Beverage Control Division (ABC) stated that multiple violations, including selling 1,800 products that had expired, as well as failure to keep the processing area clean and sanitary, and more. “When a dispensary ignores warnings, violations and guidance offered by ABC, the only remaining option is revocation,” said ABC division director Christy Bjornson. “We anticipate an appeal and look forward to presenting our case to the board.”  

Green Springs Medical Marijuana Dispensary owner Dragan Vicentic told the Arkansas Advocate that he plans to appeal the decision. “I thought the fine amount would be reduced because of my satisfactory explanation, and the next thing I knew, the director asked for a revocation of the license, which I thought was very extreme,” Vicentic said.

Arkansas advocates are working on expanding the state medical cannabis law through the ballot measure called “The Arkansas Medical Marijuana Expansion Initiative.” If the initiative is included on the November 2024 ballot and passed into law, it would allow adults over 21 to cultivate seven mature and seven immature plants at home, expand the type of people who would be allowed to certify patients, remove fees for cardholder applications, and allow cards to last for three years instead of just one before needing to reapply.

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Pennsylvania Governor Josh Shapiro this week called on state lawmakers to legalize and regulate recreational marijuana, saying “It’s time to catch up” with neighboring states that have already taken the step. The governor made his plea on Tuesday during an annual budget address to unveil a $48.3 billion spending plan for the state.

“I ask you to come together and send to my desk a bill that legalizes marijuana,” Shapiro told state lawmakers in his address. “But that bill should ensure the industry is regulated and taxed responsibly.”

Although the Democratic governor’s budget proposal does not include a specific cannabis legalization plan, it does call on lawmakers to pass a 20% tax on recreational marijuana. The proposal assumes a January 2025 start date for adult-use cannabis sales and estimates that the state would bring in $14.8 million in tax revenue during the first year. Shapiro added that he expects Pennsylvania’s taxes on recreational marijuana to increase to approximately $250 million per year once the regulated industry is firmly established.

“We’re losing out on an industry that, once fully implemented, would bring in more than $250 million in annual revenue,” Shapiro said. “And our failure to legalize and regulate this only fuels the black market and drains much-needed resources for law enforcement. It’s time to catch up.”

In a written explanation of the $48.3 billion state budget, Shapiro administration officials wrote that some tax revenue from the regulated adult-use cannabis industry should be used for “restorative justice initiatives” to address decades of inequities in the enforcement of marijuana prohibition laws. Among the initiatives, the governor specifically called on lawmakers to pass legislation to expunge the records of those convicted of possession of small amounts of marijuana.

Additional funds from the state’s adult-use cannabis program would go to the Department of Agriculture and the Pennsylvania State Police. The remaining revenue would be directed to the state’s general fund.

Most Pennsylvania Voters Support Legalizing Weed

In his address, the governor noted that legalizing adult-use cannabis is supported by a majority of Pennsylvania voters and that five out of six of the Keystone State’s neighbors have already ended the prohibition of marijuana for adults.

“Last year, 57 percent of voters in Ohio supported an initiative to legalize recreational marijuana,” Shapiro said. “And now, Ohio, New York, New Jersey, Delaware, and Maryland – practically all of our neighbors – have legalized marijuana.”

Ben Kovler, Founder, CEO and chairman at Green Thumb Industries, a multistate cannabis company that operates 18 RISE medical marijuana dispensaries in Pennsylvania, praised Shapiro’s plan to legalize adult-use cannabis.

“We applaud Pennsylvania Governor Josh Shapiro for prioritizing adult-use cannabis legalization this year, including a clear, definitive launch date for sales. This call for change signals continued progress in the Northeast toward ending Prohibition 2.0 and the devastating impact it has inflicted on communities,” Kovler said in a statement to High Times. “The team at Green Thumb is ready to support the people of Pennsylvania on their journey to well-being by providing access to safe, high-quality cannabis.”

Pennsylvania legalized the medicinal use of cannabis in 2016 with the passage of the Medical Marijuana Act. Under the state program, patients with one or more specified serious medical conditions are allowed to purchase and use medical marijuana. Qualifying conditions for the use of medical marijuana in Pennsylvania include cancer, epilepsy, inflammatory bowel disease, multiple sclerosis, post-traumatic stress disorder, terminal illness and others.

A total of 134 licensed medical marijuana dispensaries were in operation as of last year, according to state data. Since the program’s inception, more than 1.3 million patients have been certified as medical marijuana patients in Pennsylvania, Spotlight PA reported in December.

Legalizing recreational marijuana is popular with some lawmakers in Pennsylvania, especially among Democrats. In December, Democratic Senator Sharif Street and Senator Camera Bartolotta, a Republican, introduced bipartisan legislation to legalize adult-use cannabis.

Getting the bill through the Pennsylvania Senate, however, may prove difficult. Senator Kim Ward, the Senate majority leader, has said she will not support the legalization of recreational marijuana until the federal government ends cannabis prohibition, according to a report from PA Spotlight.

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A clerk from the Missouri Supreme Court recently shared in a House of Representatives committee meeting on Jan. 17 that the state has expunged 103,558 cases involving people with cannabis convictions. However, many older court records are not digitized, and it is requiring a lot of time and effort on the parts of circuit clerks to comb through every case in search of expungements.

“We’ve had about 100,000 cases expunged, but I can’t tell you, of that, how many more there are to go,” said court clerk Betsy AuBuchon, according to The Missouri Independent. She added that currently, about 10% of cannabis-related cases are reviewed and eligible. However, AuBuchon requested $3.7 million in the 2024 budget to go toward Missouri courts for expungement purposes.

Missouri state law dictates that cannabis tax revenue primarily go back into the state’s cannabis regulation agencies. Anything left over will then be given to the court system to continue funding expungements for eligible cannabis-related convictions through a special assistance program. 

In March 2023, state courts would receive $4.5 million either to pay employees overtime, or hire temporary workers to complete expungements. In May, the courts were approved to receive $2.5 million in a supplemental budget.

The Missouri Independent spoke with supreme court communications counsel, Beth Riggert, who stated that circuit courts need to request for a fund reimbursement from the Circuit Court Budget Committee. That committee has provided $4.2 million to county courts so far. “Some circuit courts have advised they have not requested special assistance funds because they did not have current court clerks willing or able to work overtime and/or have been unable to find qualified individuals to provide special assistance because the analysis required is complicated and better done by experienced personnel, such as retired clerks,” said Riggert.

Out of the total 103,558 expungements that have been completed so far, Green County has received the most funds with $940,000, and completed 4,306 expungements. The county with the second-highest expungement number is Laclede County (3,515 expungements and $35,000 in funds), followed by St. Louis County (3,749 expungements and $135,000 in funds), Frankline County (3,200 expungements and $53,000 in funds), and Jackson County (2,900 expungements and $195,000 in funds).

Courts are expected to expunge cannabis-related misdemeanors before June 8, 2024, and all felonies by Dec. 8, 2024.

Rep. Maggie Nurrenbern inquired how long it will take for the courts to clear nearly everything. “We are doing our best,” said AuBuchon, who was unable to provide a solid end date for the work.

Bryan Feemster, a circuit clerk from Greene County, told the news outlet about the process of locating and expunging cannabis-related cases. “You have to look at every count in the case and see whether it actually had to do with marijuana or not,” Feemster said, explaining that clerks must read each case thoroughly.

Feemster hired four previously retired clerks to work on expungements part time and brought on two additional people to sift through boxes filled with thousands of paper files that can’t be pre-screened for expungement. “They don’t do anything else,” Feemster explained of the team of six clerks.

Adult-use cannabis was legalized through a voter initiative in November 2022, called Amendment 3, which went into effect in December that year, followed by sales starting in February 2023. Part of the push for legalization prior to the vote was that it would provide “automatic expungements” for people who served their sentences, so they wouldn’t have to petition the court or attend hearings to complete expungement.

However, due to the lack of digital records, this is much easier said than done. “Let me be the first to tell you there is nothing automatic about that,” AuBuchon said.

Feemster told The Missouri Independent that they’re working as quickly as they can. “From 1989 back, we’re going through every single criminal record to find out whether there’s something in there that might qualify,” said Feemster. “And it is, as you might imagine, very slow and tedious.”

Not all counties are lucky enough to find retired clerks with legal experience to hire. In Johnson County, county clerks have expunged 529 cases, and received $18,000 to conduct the expungement. “I have not done any kind of research to see how far along we are,” said Johnson County circuit clerk, Marcy Anderson, of her team. “We just continue to do it every day.”

Likewise, Jackson County spokesperson, Valerie Hartman, shared that clerks have reviewed 20,000 files, and so far has expunged almost 3,000 cases. First, they have reviewed cases between 1989-2022 that came from the Office of State Courts Administrator, the Missouri Corrections Department, and the Missouri State Highway Patrol, and next they’re trying to figure out how to access old criminal databases to potentially find more paper case files. “We have no information nor an estimate on how many additional drug cases await our review,” Hartman said.

As of November 2023, county clerks were far behind the deadlines. Missouri attorney Dan Viets, who often defends cannabis cases, contributed to the writing of Amendment 3. Last year, he said in a KMBC report that progress continues to be made regardless of the deadline. “We have always said that as long as the courts, the circuit clerks in particular, are making a good faith effort to comply with the law, to get those cases expunged, that we’ll be satisfied,” said Viets. “They have not technically met the deadline. But on the other hand, we’re dealing with a century of marijuana prohibition in Missouri. So, there are hundreds of thousands of cases.”

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A cost-benefit analysis of the impact of a proposed cannabis legalization measure in Ohio has determined that legalization would generate a net economic benefit of $260 million per year. Ohio voters go to the polls next week to decide on Issue 2, which would legalize marijuana for adults 21 and over and set the stage for a regulated cannabis industry.

In a study released last week, Columbus-based Scioto Analysis attempted to quantify the net economic impact of Issue 2 if it prevails at the polls. To complete the analysis, researchers used studies from Colorado and Washington, two states with mature regulated cannabis markets, in conjunction with economic and census data and crime statistics to estimate the costs and benefits of legalization. Taken together, the data showed an estimated net economic benefit of $260 million per year.

One of the biggest economic impacts would come from the approximately $190 million in additional tax revenue the state would receive from cannabis taxes. The study notes that this figure, however, does not represent the total social benefits recognized from legalization.

“Tax revenue on its own is not a social benefit, but rather a transfer from taxpayers to the public sector that is then used to pay for goods and services purchased by the government,” it says. “Thus, benefits are only generated when goods and services purchased by governments have positive spillovers.”

Researchers explained that the economic benefit is even greater than the taxes raised, however, because of the way the money is spent. Of the tax revenue raised by Issue 2, 36% is directed to the Cannabis Social Equity and Jobs Fund and 25% is reserved for the Substance Abuse Addiction Fund. Using data from other states with similar funds, the report estimated that the Ohio equity and jobs fund would create $5.76 in benefits for every dollar spent and the substance abuse fund would create $9.19 per dollar.

“The key reason benefits are likely to outweigh costs when it comes to marijuana legalization is how the tax dollars raised are going to be used,” policy analyst Michael Hartnett, said about the study. “The programs outlined in the ballot initiative have historically been very efficient ways to use public dollars, and will likely generate a lot of value for Ohioans.”

Legalization Would Create Thousands of Jobs

The analysis also factored in the new jobs that would be created by the regulated cannabis industry once legalization takes effect.

“Our models predict that Ohio will add roughly 3,300 new jobs in the first year after legalization,” the report notes, as cited by the Ohio Capital Journal. “Assuming these jobs are full time and pay matches the average wage across the state of Ohio, this will amount to about $190 million in wage benefits for workers across the state. Since these jobs are likely to include part-time work and may be lower than the average wage across the state, this may represent an upper bound on the value of employment generated by legalization.”

The state would also have the added economic benefit of fewer arrests for cannabis-related offenses and the resulting court and incarceration costs needed with prohibition.

“One study on arrest rates in Washington found that marijuana arrests fell by 87% for adults aged 21+ and by 46% for adults aged 18-21 after legalization of the sale and purchase of cannabis for recreational purposes,” the study said. “This confirms that for the population that would be allowed to legally use cannabis recreationally, arrests almost completely disappear, but the effect is smaller for the population where it would still be illegal to use cannabis.”

“Using data from the FBI’s Uniform Crime Report on the number of cannabis-related arrests in Ohio, we estimate that there would be about 4,400 fewer arrests per year if recreational cannabis were legalized,” the study continued. “Adding up the cost of those arrests, and assuming that 6% of those people would have been convicted of felonies, this amounts to over $38 million in savings for Ohio.”

The study subtracted the negative economic impacts of legalization to arrive at its estimate of net benefits. One of the greatest costs incurred is a loss of productivity in some industries that was documented in other states after legalization.

“One study from 2017 found that across four industries (mining; construction; arts, entertainment, and recreation; and accommodations and food Service) average productivity per worker fell by just over 1% in states that legalized recreational cannabis,” the report said. “Monetized, this equates to roughly $900 of lost productivity per worker for Ohio.”

Using federal employment data, the report said, “we estimate that legalizing recreational cannabis will cost workers across the state about $760 million in lost productivity in the first year of legalization.”

The study also identified negative implications on public safety caused by legalization including an increase in arrests for intoxicated driving. The study estimated that legalization would lead to an additional 1,700 intoxicated-driving arrests each year in Ohio, costing about $130 million.

But overall, the report estimated that legalization would result in a $260 million net benefit for the state.

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The people of Arkansas spent $23.2 million on medical cannabis in July, Arkansas Democrat-Gazette reports. According to the Department of Finance and Administration, such recent spending is set to surpass the state’s record sales from last year. Scott Hardin, a spokesman for the Department of Finance, said July’s sales numbers demonstrate that Arkansas will exceed 2022’s record medical marijuana sales, which reached $270 million.

Arkansas medical marijuana patients spent $164.6 million on cannabis from January to July of 2023, which marks a $7.3 million increase from the first seven months of 2022. That figure accounts for a whopping 5,157 pounds of bud, bringing the year’s total to 34,214.

“If sales remain consistent for the next several months, we will complete 2023 with total sales reaching more than $280 million,” Hardin shared in a news release. “The state collected $2.5 million in tax revenue from medical marijuana in July. This brings total medical marijuana tax revenue in 2023 to $18.5 million, and $108 million since the first dispensary opened in May 2019.”

July came in fifth in 2023 for sales compared with other months, showing that even an impressive $23.2 million isn’t the biggest figure Arkansas can brag about. The highest-earning month of the year is March, which raked in $25 million worth of sales. The state’s lowest earning month of the year still comes in at $22.4 million, Hardin shares. 

However, while sales are up, the tax revenue generated does not necessarily reflect sale numbers. For example, the $18.5 million in tax revenue the state has collected from medical marijuana sales through July 2023 is slightly down from 2022’s figures around this year, which clocked in at $18.7 million.

The highest-earning dispensaries that sold the most medical marijuana were Suite 443 of Hot Springs, selling 551.7 pounds in July, and Natural Relief Dispensary in Sherwood, which sold 462.1 pounds.

Arkansas voters legalized medical marijuana through a constitutional amendment in 2016. The state saw its first dispensaries open shop in 2019. Since then, as these figures reflect, there’s been a gradual and continual increase in the number of medical patients. The current figure clocks in at 94,059, according to the latest numbers from the Department of Health. This number is up from the 88,893 registered cardholders in 2022. 

Despite such gains in medical sales, in Arkansas, the state has yet to embrace recreational marijuana. Back in November of 2022, voters rejected Issue 4, a measure that would have legalized adult-use cannabis, to the dismay of Arkansas cannabis advocates who worked so hard to push the bill through.  

Those pushing the failed measure were led by Responsible Growth Arkansas, an advocacy group concerned with reforming drug law, prison sentencing, and healthcare research. The bill would have amended the constitution to authorize the possession, personal use, and consumption of cannabis by adults 21 and over, as well as legalizing the cultivation and sale of cannabis by licensed commercial facilities.

However, the measure did face criticism. Some complained that it didn’t include expungement provisions or allow for home growing. There were also questions about the method of implementation. As a constitutional amendment, it would take a lot of work to make those changes further down the line. As a result, even die-hard pro-cannabis reformers weren’t over the moon excited about Issue 4. 

And Arkansas is a conservative state, making any change towards cannabis reform trickier, even in a time where some conservatives show bi-partisan support for cannabis and psychedelic legalization. State officials, such as Arkansas’ secretary of state, challenged the measure’s validity.

While those in support submitted more than the number of signatures required for the proposal to qualify for the ballot, the state Board of Election commissioners still rejected the measure, arguing that the ballot title didn’t adequately explain what the measure meant to voters. 

Arkansas Gov. Asa Hutchinson even held a joint press briefing on October 31, 2022, at the Arkansas State Chamber of Commerce in Little Rock to speak out against Issue 4. “This puts us at a disadvantage in [the] recruiting industry if Issue 4 passes,” Hutchinson said, citing how workplace drug testing would be affected.

So, for now, Arkansas only has (quite profitable) medical cannabis under Amendment 98. Hutchinson’s concern regarding workplace drug testing comes at a time when changes regarding drug testing are sweeping the nation. 

For instance, The Michigan Civil Service Commission recently passed a change that would end drug screenings for cannabis for applicants for many state jobs. This rule would overturn previous state policy that automatically disqualified applicants to state positions that tested positive for cannabis (although applicants to some jobs will still be required to pass a marijuana screening before hiring). 

Additionally, as noted regarding bipartisan support in the country, despite what the Republicans in Arkansas believe, Matt Gaetz of Florida recently proposed an amendment to the National Defense Authorization Act that would cease cannabis testing for military members. 

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A newly released study found that legalizing marijuana could be a major economic boon in Australia.

ABC Radio Perth reports that the study, which comes via the University of Western Australia, found that cannabis legalization could bring $243.5 million per year in the first five years to Western Australia. 

According to the outlet, the study “quantified the revenue the state could make through legalising cannabis,” and “considered data about the form and frequency of cannabis use, as well as the estimated cost of enforcing current laws that prohibit cannabis use.”

“We wanted to find out the actual truth on this, and we commissioned this not expecting any particular result,” Brian Walker, leader of the Legalise Cannabis WA Party, the group that commissioned the report, told ABC Radio Perth.

“This is the first time anyone has shown their working, and set out exactly how their figures were arrived at. On the spending side we’ve got stuff like your police — for chasing a cannabis crime — the courts and the corrective services for managing that. Altogether, that’s about $100 million per year.”

Cannabis is illegal in Australia, with penalties varying from state to state. In Western Australia, according to the Guardian, “[f]ines range from $2,000 to $20,000 and up to two years in prison,” but for “possession up to 10g police [law enforcement] can use discretion to order the person to a counselling session (one for adults, two for children).”

Walker told ABC Radio Perth: “When you engage in something illegal, there’s a price to be paid. How do you account for the losses if you’ve been raided and you’ve lost a million dollars in crop? That all has a cost associated with it. Once you legalise, that risk premium falls away.”

ABC Radio Perth has more background on the study: “The data for the report — An Economic Case to Legalise Cannabis in Western Australia — came from a wide range of sources including the Australian National Drug Strategy Survey, Australian Crime Commission, Australian Criminal Intelligence Commission, and the National Drug and Alcohol Research Centre at the University of NSW. The report, which looked at projected figures for a five-year period after legislation, found a moderate 25 per cent tax on adult-use recreational cannabis would generate approximately $137 million of direct tax revenue in WA based on annual sales of ‘around $686 million.’ Licensing fees for businesses intending to sell cannabis would generate an estimated $6.5 million for the economy each year.”

Cannabis legalization in Australia may soon move from the realm of the theoretical and into actual policy. The Greens, the minor party in Australia, said last year that the country’s constitution empowers parliament to override states and legalize pot for recreational use.

According to the Guardian, the proposal from the Greens would “allow for the regulation and sale of approved cannabis strains for recreational consumption in Australia, joining the handful of countries (and US states) that have already moved to legalise it.”

“Greens senator David Shoebridge plans to introduce the bill to the Senate once the party has taken on board the results of that consultation,” the Guardian reported last month. “To get anywhere, the bill would need government support and Labor hasn’t yet given any indication it would throw its weight behind the legislation.”

As the Guardian explained, “under the constitution [in Australia], the states have responsibility for criminal law,” but the Greens “think that once cannabis was legalised federally, the commonwealth would have the power to create a national, legal cannabis market.”

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The Marijuana Policy Project (MPP) released a report on May 1 with data regarding cannabis tax revenue generated by states with legalization. Between 2014 and the end of 2022, the report shows that states had collected over $15.1 billion in tax revenue.

According to MPP President and CEO Toi Hutchinson, states with legalization are seeing great benefits from cannabis sales. “States that have made the decision to legalize and regulate cannabis are benefiting from hundreds of millions in tax revenue each year,” Hutchinson said in a press release. “These new streams of revenue are helping to fund crucial social services and programs across the country, such as education, alcohol and drug treatment, veterans’ services, job training, and reinvestment in communities that have been disproportionately affected by the war on cannabis. The states that lag behind will not only be doing a disservice to their constituents—they will also be leaving money on the table.”

Tax revenue from 2022 alone showed more than $3.77 billion collected, which was actually the first year that total state cannabis tax revenues decreased in comparison to 2021 with $3.86 billion. Even with seeing mature cannabis states collecting a decreased amount in cannabis tax revenue and newer states collecting an increased amount, MPP notes that the numbers are influenced by sales comparisons from the pandemic. “It is important to note that while ’22 figures were down from ’21 in more mature markets, they were still higher than any year pre-COVID for each state.”

MPP cited Vicente LLP Director of Economics and Research Andrew Livingston, who elaborated on the demand of cannabis during the pandemic. “While 2022 cannabis taxes are lower in some established markets than they were in 2021, it’s important to know how COVID-19 and pandemic initiated lockdown orders increased cannabis demand,” Livingston stated. “People could not spend their money going to concerts, going out to dinner, or vacation travel. So many people increased their consumption of consumer packaged goods. Cannabis was a product that could still be purchased and made the difficulty of staying at home for months on end watching TV shows and movies a bit more enjoyable.”

MPP’s tax revenue report shows the individual 2022 tax revenue for 16 states. Among the highest amounts included California ($1,074,560,287), Illinois ($562,119,019), Washington ($529,443,420), Michigan ($326,049,074), and Colorado ($305,034,034). On the lower end were states including Rhode Island ($579,439), Vermont ($2,363,000), New Jersey ($20,139,655), Maine ($25,329,534), New Mexico ($36,684,235), Montana ($41,989,466).

The report also includes a year-by-year total of collected tax revenue as well. In 2014, tax revenue reached $68,503,980 and 2018 was the first year that cannabis tax revenue passed the million mark at $1,308,693,928. During the pandemic, tax revenue soared to $2,814,837,199 in 2020, $3,866,974,690 in 2021, and dipped slightly to $3,774,783,548 in 2022.

While cannabis tax revenue is at an all-time high, the topic of taxes has long been a concern for consumers and business owners. Most recently on April 17, Oregon Rep. Earl Blumenauer introduced legislation called the Small Business Tax Equity Act which would allow cannabis businesses to remain in compliance with state law by creating an exception to Internal Revenue Code Section 280e.

“State-legal cannabis businesses are denied equal treatment under 280E. They cannot fully deduct the cost of doing business which means they pay two or three times as much as a similar non-cannabis business,” Blumenauer said. “This grotesquely unfair treatment incentivizes people to cut corners. If Congress wants to get serious about supporting small businesses and ending the illicit cannabis market, it is commonsense that we allow legal cannabis operations to deduct business expenses, just like any other industry.”

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Montana raked in more than $200 million in its first year of recreational cannabis sales, the state reported this week.

The Montana Department of Revenue released figures detailing how much money was generated in both medical and recreational marijuana sales in 2022.

Last year marked the launch of the state’s recreational marijuana market. Voters there legalized medical cannabis in 2004. 

The Department of Revenue said that adult-use marijuana sales totaled $202,947,328 in 2022, while medical cannabis sales amounted to $93,616,551.

The two combined to generate a grand total of $303,563,879 in marijuana sales last year. 

Montana generated $41,989,466 in tax revenue off recreational pot sales, according to the Department of Revenue, and $3,744,662 in taxes from medical cannabis sales. Combined, the state pulled in $45,734,128 in tax revenue from marijuana sales in 2022. 

The state levies a 20% take on recreational pot sales, and a 4% tax on medical marijuana.

The Department of Revenue said all figures were estimates. 

Voters in Montana approved a ballot measure in 2020 to legalize recreational cannabis, one of four states that year where voters passed legalization proposals. The law took effect in 2021.

 “Since January, we’ve been focused on implementing the will of Montana voters in a safe, responsible, and appropriately regulated manner. House Bill 701 accomplishes this,” Gov. Greg Gianforte said in May of 2021, as quoted by local news station KTVH. “From the start, I’ve been clear that we need to bring more resources … to combat the drug epidemic that’s devastating our communities.”

Chief among Gianforte’s concerns with the new law was the creation of the HEART Fund, which subsidizes substance abuse treatment in Montana with revenue from recreational marijuana sales. 

“Funding a full continuum of substance abuse prevention and treatment programs for communities, the HEART Fund will offer new support to Montanans who want to get clean, sober, and healthy,” Gianforte said after signing the bill into law in 2021, as quoted by KTVH.

As in other states that have ended the prohibition on pot use for adults, Montana’s new law contains a component to redress harms that have resulted from the War on Drugs. 

The law “authorizes courts to either resentence or expunge marijuana offenses now considered legal or lesser offenses, but does not enact an automatic expungement process,” according to Montana Free Press, but the “the expungement policy has faced criticism as cumbersome and unclear.”

In March of last year, the state Supreme Court issued temporary rules intended to help clarify the expungement application procedure.

The law says that “anyone convicted of an offense that would now be legal in the state can petition to have their conviction removed from their record, get a lesser sentence for it or reclassify it to a lesser offense,” according to the Missoula Current.

The biggest clarification issued by the Montana Supreme Court, the Missoula Current noted, was to inform individuals that “they could submit their expungement request to the court where they were originally sentenced.”

After President Joe Biden issued pardons to everyone with a federal conviction for marijuana possession in October of last year, he encouraged all states to follow his lead. 

A spokesperson for Gianforte told the Montana Free Press at the time that the “governor will continue to evaluate clemencies submitted through the Board of Pardons and Parole on a case-by-case basis, in accordance with [state] statute.”

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The Hawaii state Tax Department projects that legalizing adult-use cannabis in the state would generate about $50 million per year in tax revenue, far eclipsing the $2.5 million in medical marijuana taxes collected over the past fiscal year, according to a recent report from the agency. But a state lawmaker believes the taxes collected will not cover the costs of implementing the legalization of recreational weed.

At a meeting of Hawaii’s Dual Use of Cannabis Task Force on Monday, state Tax Director Isaac Choy reported tax revenue of $2.557 million on medical cannabis sales, corporate income tax and employee withholdings from July 1, 2021, through June 30, 2022. The agency also projected that tax revenue from legalizing recreational marijuana would be about $50 million.

State Representative Ryan Yamane, chair of the House Health, Human Serv­ices Committee, said on a livestreamed news program that the projected tax revenue would likely not be enough to pay for the regulatory costs associated with legalizing adult-use cannabis.

“There’s not much that $50 million can pay for,” Yamane said. “So there is not … this huge windfall that will be able to subsidize education or health services.”

The Democratic lawmaker said that the amount would make it difficult to fund the infrastructure required to provide oversight of a statewide recreational marijuana industry.

“That is difficult to use in order to establish a new program,” said Yamane. “Hire employees, do monitoring, do all the different aspects of adult recreational use, with $50 million annually.”

Cannabis Industry Disputes Projections

But representatives of Hawaii’s medical marijuana industry dispute the Tax Department’s projection that adult-use cannabis legalization would generate about $50 million in revenue for the state. Ty Cheng, chair of the Hawaii Industry Cannabis Association and president of the Aloha Green Apothecary dispensary, said that sales of recreational marijuana, and thus tax revenue generated, would likely be higher than state projections. 

Cheng disputed the department’s projections of gross annual recreational cannabis sales of $200 million to $273 million because it is not clear how much money tourists visiting the islands will spend on adult-use cannabis. He projected a more robust $400 million in recreational weed sales, similar to the amount of money spent on liquor in Hawaii each year. At that rate, taxes raised would likely total about $80 million.

Cheng says that there is a lot of room for growth for Hawaii’s cannabis industry. As of the end of September, there were 33,725 patients with valid medical marijuana cards, according to information from the state Department of Health. And with only eight medical marijuana dispensaries spread across the islands, each business has practical access to a small portion of the total number of patients.

“We’re really only catering to about 8,000, 9,000 patients,” said Cheng. “And those patient numbers have increased over the last three years, especially during the pandemic and we’ve seen revenue double from two years ago.”

Task Force Exploring Legalization in Hawaii

The Dual Use of Cannabis Task Force was created last year by the state legislature and current Democratic Governor David Ige, who opposes recreational cannabis legalization, to explore the issues surrounding further reform of Hawaii’s marijuana policy. The state’s lawmakers legalized the medicinal use of cannabis in 2000, making Hawaii the first state to legalize medical marijuana by action of the legislature rather than through the ballot box. Medical marijuana dispensaries, however, were not legalized until 2015.

Cheng said that he is hopeful that following next week’s general election, the administration of a new governor will herald new progress in cannabis legalization.

“I think there’s real positive mood right now when it comes to adult use cannabis with the recent pardoning by President Biden on federal drug charges,” said Cheng.

Terilynne Gorman, a task force member from Maui, said that if the aim of legalizing marijuana is to generate revenue, the taxes collected from medical marijuana and expected from adult-use cannabis will not live up to people’s expectations. She said that the projected tax revenue does not “seem like much of a windfall for the state of Hawaii. … This could not be the tax windfall that people are anticipating.”

Gorman added that if the goal is to generate tax revenue for public coffers, a state lottery could be “much more lucrative,” then noted, “I know we’re not here to discuss that.”

Yamane has told reporters that the task force is Hawaii’s best chance to legalize cannabis after years of failed attempts. He added the panel is still gathering information that will be reported back to the state legislature.

“There’s going to be a number of opportunities for the general public to chime in, testify for or against,” he said. “But what we wanted was to dispel some of the myths and find out what is fact.”

With voters in five states deciding on cannabis legalization in next week’s election, industry representatives in Hawaii hope that their state will not be far behind.

“We should all stay tuned, and we should be prepared for the public to provide input and comment,” said Randy Gonce, director of the Hawaii Cannabis Industry Association. “This is the closest Hawaii has ever been to legalizing cannabis in the history of our state.”

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