Prepare to lose it all


Ah, yes. It's easy to get lost in green dreams, but in truth, they could crumble. The rollout of a medical marijuana program could get bogged down by any number of foes: the Republican-controlled Legislature, Gov. Scott if he gets reelected, or local governments.
On its face, the potential tax revenue looks like red meat for politicians. California charges 7.5 percent sales tax on medical marijuana, generating $58 million to $105 million. Many cities charge a local sales tax on top of this. Colorado charges 2.9 percent sales tax on medical marijuana and collected $6 million in the last six months of 2013. (Colorado taxes recreational pot, which was made legal in January, at 25 percent; it should bring in $45 million to $98 million by the end of the year.) In Florida, medical marijuana could bring in $19 million to $337 million per year in taxes.
But consider what happened in New Jersey. In 2010, the state passed a medical marijuana law that had no provisions for patients to grow their own pot. This forced them to wait for dispensaries to open. But Gov. Chris Christie, a staunch marijuana opponent, limited the number to a mere six. Four years after medical marijuana was legalized, just three of these dispensaries have business licenses, and only one is operational. And access to medical marijuana is limited to those having certain diseases or those with terminal illnesses who are expected to die in a year. New Jersey has only 1,500 patients — who get charged $200 just to obtain a medical card (whereas other states charge $5 to $15). The 2013 study prepared by Florida's Department of Revenue estimates that if a similar scenario played out in Florida, only 452 patients would qualify during the first year.
In California, the state that pioneered the medical cheeba industry, bust followed boom. The state legalized pot in 1996. There were essentially no state regulations on dispensaries, so thousands opened. In 2007, the L.A. City Council sought to limit dispensaries to the 186 that were already in business, but resilient entrepreneurs discovered a loophole. Soon, there were more than 1,000 dispensaries across Los Angeles alone — on almost every block, near schools, everywhere. In 2012, 63 percent of voters supported a measure to limit dispensaries to the stores that had registered before 2007. The City Attorney's Office is now moving to shut down 970 dispensaries.
In San Diego, the City Council voted to keep no more than 36 dispensaries. Some cities, like Oakland and San Francisco, have enacted clear-cut rules that dictate where dispensaries can operate and tack on fees for local government.
In Florida, the Legislature or local municipalities could decide how many businesses will be allowed to open. Some local governments may opt not to allow any medical marijuana commerce at all.
And medical marijuana businesses will have to be wary of legal challenges. Michigan approved medical marijuana in 2008, but when two store owners appealed a civil case against their business, the case went to the state supreme court, which ruled that Michigan's 2008 medical marijuana law "does not contemplate patient-to-patient sales of marijuana for medical use." This left an opening for patients and caregivers to grow weed but essentially outlawed dispensaries, and many shut down.
Maggie Volpo, a state marijuana activist, wrote in her blog that she had no choice but to close. She and her husband lost their life savings.

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