SB 5887 Specifies
The LCB must license medicalcannabis producers, processors,and dispensaries,2.
A 20% medical cannabis excisetax on each wholesale sale of dried medical cannabis to amedical cannabis processor or medical cannabis dispensary,3.
Imposes a 10% medical cannabisexcise tax on retail sales,4.
Authorizes the DOR to adoptrules for tax collection5.
Defines key terms: cannabis,collective garden, medicalcannabis dispensary, processor,and producer,6.
Specifies where medicalcannabis can be used,7.
Requires that a qualifying patientmust be at least 18 or asupervised minor and visit therecommending health professional at least twice a year,8.
Exempts sales of medicalcannabis from RST and use tax,9.
Requires mandatory safetyinspections and recordkeeping of medical cannabis dispensaries,10.
States health professionalrecommendations for medicalcannabis are valid for only 365days (90 days for minors),11.
Provider recommendations muststate cannabis will benefit the patient,12.
License and renewal fees arecommensurate with the costs of administering the medicalcannabis licensing program, and13.
Establish other rules needed toensure the safety and security of medical cannabis and medicalcannabis products1.
A tax rate comparable to I-502,i.e. collective 50% -75%,
Regulation of medical cannabiscollective gardens.
These bills can be amended to provide the LCB with much more authority toregulate the medical cannabis supply chain. One example of how SB 5887can provide greater market parity is to mandate that medical cannabisdispensaries purchase cannabis and cannabis-infused products from LCBlicensed recreational marijuana processors. HB 1789 will require substantialamendments to lessen the perceived differences in how recreational marijuanawill be, and medical cannabis is, regulated.