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Some states like Oregon require cannabis businesses to be majority-owned by local residents and federal law prohibits products from moving across state lines. But if Michigan succeeds in mimicking regulation from Colorado it may attract businesses that could contract with local growers allowing new shops to start up faster. The biggest concern for states looking to legalise is the possibility that bad regulation could choke a potentially profitable industry before it get started. Image caption Cannabidiol Oil Epilepsy Dosage Michigan legalised medical marijuana in 2008 Off licences fast food restaurants and abandoned buildings line Gratiot Street in north-east Detroit where the cannabis dispensary 420 Dank stands. The store is not owner Kim Gaetano’s first foray into the medical marijuana business.
If it appears we went too far or not far enough we can adjust it” he says. Image caption Legal marijuana can generate tax revenue for states Smart regulation But as more states legalise marijuana it has become clear how much revenue can be generated by the industry. “There is no question that a legal programme can bring in good tax revenue for the state. If they put in a regulation programme that is reasonable and doesn’t restrict for the reason of restricting it can attract businesses” says Taylor West deputy director of the National Cannabis Industry Association. Ms West explains getting regulation right is especially difficult since most states are starting from scratch. Many look to Colorado as an example of how to balance the concerns of all sides. Ms West says you would be hard pressed to find one group that says Colorado’s regulation is perfect but all sides collectively agree that they can live with it.