Senator Cunningham’s Legislative Column for Oct. 12

Cunningham - Media Advisory Banner - 030917On Nov. 6, Missourians will head to the polls to cast their votes for numerous candidates and important issues, including four proposed amendments to the Missouri Constitution. In this legislative column, we will discuss three different ballot measures, which appear on the ballot.

Below you will find a description of several of the measures, including each measure’s official title, fiscal note, fair ballot language and any potential impact it may have on your taxes. For more information about the upcoming election, including where and how to vote, please visit the secretary of state’s website at www.sos.mo.gov.

Amendment 2

Shall the Missouri Constitution be amended to:

  • Allow the use of marijuana for medical purposes, and create regulations and licensing/certification procedures for marijuana and marijuana facilities;
  • Impose a 4 percent tax on the retail sale of marijuana; and
  • Use funds from these taxes for health and care services for military veterans by the Missouri Veterans Commission and to administer the program to license/certify and regulate marijuana and marijuana facilities?

This proposal is estimated to generate annual taxes and fees of $18 million for state operating costs and veterans programs and $6 million for local governments. Annual state operating costs are estimated to be $7 million.

Fair Ballot Language:

A “yes” vote will amend the Missouri Constitution to allow the use of marijuana for medical purposes under state laws. This amendment does not change federal law, which makes marijuana possession, sale and cultivation a federal offense. This amendment creates regulations and licensing procedures for medical marijuana and medical marijuana facilities — dispensary, cultivation, testing and marijuana-infused product manufacturing facilities. This amendment creates licensing fees for such facilities. This amendment will impose a 4 percent tax on the retail sale of marijuana for medical purposes by dispensary facilities. The funds from the license fees and tax will be used by the Missouri Veterans Commission for health and care services for military veterans, and by the Department of Health and Senior Services to administer the program to license/certify and regulate marijuana and marijuana facilities.

A “no” vote will not amend the Missouri Constitution as to the use of marijuana.

If passed, this measure will impose a 4 percent retail sales tax on marijuana for medical purposes.

Amendment 3

Shall the Missouri Constitution be amended to:

  • Allow the use of marijuana for medical purposes, and create regulations and licensing procedures for marijuana and marijuana facilities;
  • Impose a 15 percent tax on the retail sale of marijuana, and a tax on the wholesale sale of marijuana flowers and leaves per dry-weight ounce to licensed facilities; and
  • Use funds from these taxes to establish and fund a state research institute to conduct research with the purpose of developing cures and treatments for cancer and other incurable diseases or medical conditions?

This proposal is estimated to generate annual taxes and fees of $66 million. State governmental entities estimate initial implementation costs of $186,000 and increased annual operating costs of $500,000.

Fair Ballot Language:

A “yes” vote will amend the Missouri Constitution to allow the use of marijuana for medical purposes under state laws. This amendment does not change federal law, which makes marijuana possession, sale and cultivation a federal offense. This amendment makes Brad Bradshaw (the contact person on this initiative petition) the research chairperson of a newly created research institute that is funded by fees and taxes on medical marijuana. Brad Bradshaw will select the members of the board that will govern the research institute, which will issue regulations and licensing procedures for medical marijuana and medical marijuana facilities — dispensary, cultivation and marijuana-infused product manufacturing facilities. This amendment creates licensing fees for such facilities. The amendment imposes a 15 percent tax on the retail sale of marijuana for medical purposes by dispensary facilities and a tax on the wholesale sale of marijuana flowers and leaves by cultivation facilities. The funds generated by the license fees and taxes will be used by the research institute for licensing and regulating marijuana and marijuana facilities, land acquisition and development and conducting research with the purpose of developing cures and treatments for cancer and other incurable diseases.

A “no” vote will not amend the Missouri Constitution as to the use of marijuana.

If passed, this measure will impose a 15 percent retail sales tax on marijuana for medical uses and a wholesale sales tax on marijuana sold by medical marijuana cultivation facilities.

If passed, this amendment would remove input from every state government agency as well as the legislative branch, concerning the structuring, operation, rulemaking and oversight of the entire project.  If passed the program will be administered by Brad Bradshaw, who will run, operate, supervise, purchase land for development, hire all staff and appoint all nine board members. There is no legislative confirmation process for board members, as there is with other boards under the direction of other state agencies. Mr. Bradshaw will be able to make these appointments and all other decisions in regards to the operation of the program, by himself. This nine member research board will issue, renew, regulate, restrict and revoke qualifying patient identification cards and designated primary caregiver cards.

The ballot measure authorizes no less than two dispensaries per 20,000 residents in counties and cities.  It further empowers the coordinator and four of institution board members to develop a list of proposed locations for the Biomedical Research and Drug Development Institute (BRDDI.)  Voters in the counties where the BRDDI would be located will be allowed a yes or no vote on whether to approve or reject the proposed locations.

Proposition C

Do you want to amend Missouri law to:

  • Remove state prohibitions on personal use and possession of medical cannabis (marijuana) with a written certification by a physician who treats a patient diagnosed with a qualifying medical condition;
  • Remove state prohibitions on growth, possession, production and sale of medical marijuana by licensed and regulated facilities, and a facility’s licensed owners and employees;
  • Impose a 2 percent tax on the retail sale of medical marijuana; and
  • Use funds from this tax for veterans’ services, drug treatment, and early childhood education and for public safety in cities with a medical marijuana facility?

State government entities estimate initial and one-time costs of $2.6 million, annual costs of $10 million and annual revenues of at least $10 million. Local government entities estimate no annual costs and are expected to receive at least $152,000 in annual revenues.

Fair Ballot Language:

A “yes” vote will amend Missouri statutes to allow the use of marijuana for medical purposes under state laws. This amendment does not change federal law, which makes marijuana possession, sale and cultivation a federal offense. This amendment creates regulations and licensing procedures for medical marijuana and medical marijuana facilities — dispensary, cultivation, production and testing facilities. This amendment creates licensing fees for such facilities. This amendment will impose a 2 percent tax on the retail sale of marijuana for medical purposes by dispensary facilities. The funds from the license fees will go to the Division of Liquor Control to administer the program to license/certify and regulate marijuana and marijuana facilities. The funds from the tax will be used for veterans’ services, drug treatment and early childhood education opportunities and for public safety in cities with a medical marijuana facility.

A “no” vote will not amend Missouri statutes as to the use of marijuana.

If passed, this measure will impose a 2 percent retail sales tax on marijuana for medical purposes.

As always, I appreciate it when groups from around Missouri and from our community back home come to visit me at the Capitol. If you would like to arrange a time to come and visit me in Jefferson City, or if you ever have any questions, please don’t hesitate to contact my Capitol office at (573) 751-1882.