Final Rules for Marijuana Regulation

Post-Prohibition Planning in Open New Markets

Arizona is adding 4,000 medical marijuana patients every month. Hawaii and Nevada allow dispensing to out of state patients but ownership is advantageous to residents. Where should you dedicate your resources?

Our Mission

Final Rules provides tailored consulting for accredited investors and legislators in states that are considering marijuana laws. Our on-boarding process outlines a successful policy blueprint cohesive with the current Federal administrations laissez faire approach towards state-legal marijuana producers, distributors, and end users. Final Rules utilizes comprehensive resources and industry expertise, to advise stakeholders on the realities of the marijuana business.

Real marijuana investing begins with understanding the asset class.

We only focus on open markets with a limited number of licenses.

Current State

The medical and recreational marijuana markets in North America are growing at a rapid rate with Europe showing signs of following with a five year lagtime. At the same time, the constraints to optimizing business and financial processes are not being solved at a fast enough pace. Savvy investors playing by traditional rules are already being left behind.

Final Rules is being launched with a two-pronged purpose:

Preparing city & state government organizations to regulate marijuana effectively
Providing a realistic framework for potential marijuana investors who have already done their preliminary research

The Business Side

Confusing & Contradictory Laws
Tax Deductions – 280E
Business Banking
Lack of Medical Payor Access
Standardized Dosing
Food Safety Regulations
Energy & Water Costs

Speed

The combination of media coverage, heartbreaking stories of children in need, a high interest level in a previously forbidden market, and the lucrativeness of efficient marijuana grow operations has led several states to push legislation creating adult use or medical marijuana markets.

The tax revenues for local government make marijuana normalization an easy decision politically in liberal and moderate regions.

Key Factors

Increasing City & State Coffers
Minimizing Revenues to Illegal Operations
Providing Multiple Dosage Forms & Routes of Administration
Regulation Based on Realistic Prioritization

What to Regulate

There are many elements of marijuana to manage and regulate. However, there will be departments and divisions that are understaffed and overworked.
Whether considering public health or revenue generation aspects, legislators have to focus on the critical aspects first.

Focus on Critical Elements

Preventing Marijuana Diversion
Reducing Probability of Violence
Balancing Safe Access & Community Standards
Guidelines for Dosage & Quality Control
Preventing Regulatory Gridlock
Streamlining Licensing & Approval Process
Mandating & Enforcing Testing Standards
Simpliflying Tax Collection

Medical Marijuana Asset Classes

In states that have enacted marijuana laws amidst strong political opposition, marijuana entrepreneurs should budget a significant set of resources towards lobbying in the developmental phase. If the marijuana industry does not have a strong presence in the capitol, it is likely that competing industries will ensure that the program is built on a weak foundation and falls within a lower asset class.

The pattern we have seen is that investors are often front-loading their costs as they buy into a “gold rush” mentality and want to get a license regardless of the long-term feasibility, burn rate, or expected return on investment. This is a simple set of criteria to use when evaluating how much effort or money to invest in a state’s medical marijuana program.

Tier I Medical

1 license per 30,000+ population block
Qualifying conditions include pain, nausea, anxiety, or doctor’s discretion
Patient evaluation & registry cost less than $150 annually
For-profit business structure allowed
Transferable license
Total State + Local Tax less than 10%

Tier II Medical

1 license per 15,000+ population block
Qualifying conditions include pain, nausea, anxiety, or doctor’s discretion
Patient evaluation & registry cost less than $300 annually
For-profit or non-profit business structure allowed
Transferable license
Total State + Local Tax less than 15%

Tier III Medical

1 license per 10,000+ population block
Qualifying conditions include only PTSD or migraines
Patient evaluation & registry cost more than $300 annually
For-profit or non-profit business structure allowed
Non-transferable license
Total State + Local Tax less than 15%