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Brent Bradshaw

LARA Issues Hefty Regulatory Assessment Fees 2018

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I would be very surprised if there were many folks paying for application that had no idea.   

Considering the complexity of the application it would seem unlikely that one would attempt the process without an attorney and accountant on board.  The numbers LARA shows in the table are not that far out of line from their original projections.  If neither you, nor your attorney or accountant were not up to speed on this before starting the application process, you have the wrong team and should not have even considered being on the commercial side of the business.  

One thing that is not clear from LARA's posting is when the $ are due.   They are rather onerous if due up front.  If you can pay it quarterly it would be much more reasonable as it could be paid from cash flow.

Edited by semicaregiver

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I appreciate the comments regarding my post. I am a new member and it appeared to me that the only way I could post to the member's forum was by asking a question. These fees were not a surprise for us, however I wasn't sure if the community had seen the latest release of the fee information. I apologize if I am using the board incorrectly. Thank you.

Brent B.

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1 hour ago, blackhorse said:

So it will cost $48,000 per year for a transporter license?

Maybe that is why only a few have applied for the transporter license.

Yup, plus the $6000 state application fee plus the local &5000 application fee so $59,000 and that is for any license besides a class A growers license which was capped at $10000.

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Nice find, Mr. Brent.

Do not forget, these fees will eventually be paid by the customers of the provisioning centers.

Some of us wonder if any link in the chain (grower, processor, secure transport, provisioning center, safety testing) will actually be profitable with all of the state and local fees. My guess is not with 280,000 medical marijuana patients. Most patients I've seen aren't exactly rich.

I think everyone is just waiting for full legalization.

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There's a huge rush of new patients to get a card. Clinics have applicants lined up out the door. People definitely are not sitting back and waiting for legalization. 

 

 

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9 hours ago, bax said:

Nice find, Mr. Brent.

Do not forget, these fees will eventually be paid by the customers of the provisioning centers.

Some of us wonder if any link in the chain (grower, processor, secure transport, provisioning center, safety testing) will actually be profitable with all of the state and local fees. My guess is not with 280,000 medical marijuana patients. Most patients I've seen aren't exactly rich.

I think everyone is just waiting for full legalization.

If you read the original bills the fees are based on the cost of the regulatory operations of the BMMR.     There is no question that the staffing and costs they have in that document are based on full legalization and not just regulating a commercial Medical market.   The first growers, retailers and other business will have the advantage of being up and running once the full legalization bill passes in November, the downside is they will be bearing the brunt of the BMMR's start up costs.   

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Remember when everyone was looking forward to having farm stands? They really believed that this would be a way for the little guy to get ahead.

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Our township has collected around a quarter million dollars in application fees. 

There are so many dispensaries it's hard to count them now.

Medical Cannabis is going for $150-$200 an ounce for their best stuff.

What I grow blows them away.

One of my patients actually wanted to throw away what I bought them as a sample of what they could be enjoying from the dispensary.

I said, "Hold it right there, I paid $10 for that gram so you can't just throw it away!"

"You have to smoke it up until the dispensary crap weed is gone."

"Then you can go back to the real deal."

 

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Here's something to think about;

50 entities put up $5000 a piece for a local dispensary permit (just in one township).

They all opened whether they will be approved by the State or not.

How many are just pretending and will never follow through with the State fee of $48,000?  

 

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2 hours ago, Restorium2 said:

Here's something to think about;

50 entities put up $5000 a piece for a local dispensary permit (just in one township).

They all opened whether they will be approved by the State or not.

How many are just pretending and will never follow through with the State fee of $48,000?  

 

The big difference now will be the shop that put up the $48K will call LEO.  This would not have happened before when they were all illegal.  That said, it could take several years for it to all sort out.

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21 hours ago, semicaregiver said:

If you read the original bills the fees are based on the cost of the regulatory operations of the BMMR.     There is no question that the staffing and costs they have in that document are based on full legalization and not just regulating a commercial Medical market.   The first growers, retailers and other business will have the advantage of being up and running once the full legalization bill passes in November, the downside is they will be bearing the brunt of the BMMR's start up costs.   

Especially considering if you don't have a med grow license you will need to wait two years to apply for a rec grow license.

Edited by shishka
clarification

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