The Jackson City Council is currently evaluating a proposed ordinance to raise the licensing fees for medical marijuana businesses from $40 to $1,000. This significant increase aims to bring Jackson’s licensing fees in line with those of other municipalities in Mississippi, where the average fee is approximately $2,500.
Industry Growth and Licensing Changes
Since the legalization of medical marijuana in Mississippi in 2022, the industry has seen considerable expansion. At a recent council meeting, Yika Hoover, the city’s deputy director of economic development, explained that the current fee structure of about $40 is no longer adequate given the industry’s growth. The first dispensary in Jackson opened in 2023, marking a notable milestone in the city’s evolving economic landscape.
The proposed ordinance would raise the fee for obtaining a medical marijuana business license to $1,000. Despite this increase, Hoover emphasized that the new fee would still be less than the average charge imposed by nearby municipalities.
Current Landscape of Medical Marijuana in Mississippi
According to the Mississippi Medical Cannabis Program, Hinds County currently hosts 36 businesses within the medical marijuana sector, which includes 20 dispensaries, four processing facilities, nine cultivators, two transportation companies, and one disposal service. However, it’s unclear how many of these businesses are specifically located in Jackson.
The proposed licensing fee adjustment is intended to align Jackson with state practices and the regulations of other municipalities. Hoover remarked, “This is just an attempt for us to license medical cannabis businesses in the same fashion as the state of Mississippi and other municipalities in the state.”
Next Steps for the Proposed Ordinance
For the ordinance to take effect, it must first be introduced during a council meeting and subsequently voted on in a following session. If all goes according to plan, the council is expected to cast its vote on the ordinance at its next meeting scheduled for March 11.
In 2022, Mississippi became the 37th state to legalize cannabis when the legislation was signed by Republican Governor Tate Reeves. The Mississippi State Department of Health and the Mississippi Department of Revenue are tasked with overseeing the state’s medical marijuana program.
Ongoing Legislative Developments
While recreational marijuana use remains illegal in Mississippi, recent legislative discussions have focused on two bills aimed at banning intoxicating hemp products. As the medical cannabis industry continues to grow, various stakeholders, including business owners and health advocates, have been advocating for the removal of hemp-derived THC products from retail locations such as CBD stores and gas stations.