Pubdate: Mon, 10 Oct 2016
Source: Forbes Magazine (US)
Copyright: 2016 Forbes Inc.
Contact:  http://www.forbes.com/forbes/current/
Details: http://www.mapinc.org/media/769
Author: Debra Borchardt

FIVE MORE STATES ON TRACK TO LEGALIZE RECREATIONAL MARIJUANA

There are nine state ballot measures regarding the legalization of
marijuana that will be voted on this November. Five states will vote
to legalize recreational marijuana, while the other four states are
voting on legalizing medicinal marijuana.

Arizona, California, Maine, Massachusetts and Nevada are all looking
to legalize recreational marijuana. Arkansas, Florida, Montana and
North Dakota are proposing medical marijuana legislation. Equity
research firm Cowen and Company said that if all five measures pass,
the percent of the U.S. population and GDP covered by recreational
states would grow roughly four times to 23% and 26%
respectively.

FILE a€" In this Saturday April 23, 2016, file photo, petition
signature gatherer Peter Keyes, right, discusses a petition to
legalize marijuana in Sacramento, Calif. For the second time in six
years, California voters are being asked to legalize the recreational
use of marijuana. This time, supporters of the move have much more
financial backing and professional campaign help than they did in
2010. Polls show Proposition 64 with more than the 50 percent of voter
support needed to pass. (AP Photo/Rich Pedroncelli, File)

The biggest and most watched measure is Californiaa€™s Proposition 64.
Roughly 60% of the population is in favor and its passage looks pretty
strong. a€œI think as of right now, people are cautiously
optimistic,a€ said David Dinenberg, chief executive officer of KIND
Financial, a leading software company for the cannabis industry.

The California law will allow adults over the age of 21 to possess up
to one ounce of marijuana and grow up to six plants in a secure area.
There will be a 10% sales tax on adult-use marijuana sales, but no
sales tax on medical marijuana. The reason this vote is being watched
so closely is that the projected numbers in this market are
astounding. If you thought Colorado was putting up some big pot
revenue dollars, get ready because California will dwarf that state.

a€œMy personal opinion is that ita€™s already a $2 billion market
today and I think it could grow very rapidly to $5 billion,a€ said
Dinenberg. He fully expects that the measure will pass. California was
the first state to legalize medical marijuana and has a long history
of leniency towards recreational usage. The heaviest resistance to the
law has actually come from within the marijuana industry in the state.
Namely growers in the north part of the state that have wanted to
protect their market share and keep outside growers from coming in and
setting up shop.

Marijuana And Election 2016: Where The Presidential Candidates Stand
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Northwestern MutualVoice: A Conversation With Bud Selig

Most of the numbers that have been thrown around regarding California
have been estimates because without regulation, there is little hard
data. This legislation aims to fix that. a€œIta€™s going to be a
monster market,a€ said Dinenberg.

Nevadaa€™s legislation is named the Nevada Marijuana Legalization
Initiative or Question 2. If passed, it will allow adults over the age
of 21 to possess up to one ounce of marijuana and be able to purchase
it from a licensed retail store and if you dona€™t live within 25
miles of a licensed store, you can grow up to six plants in an
enclosed locked area. There will be a 15% excise tax on wholesale
marijuana sales, while retail sales will be subject to the standard
sales tax. The taxes will be used for regulation and enforcement of
the program with the remaining tax receipts going towards education.
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