Prohibition of Medical Marijuana is a Win for the Black Market

weed-tax-revenue-elite-dailyIt has been 20 years since Californians approved Proposition 215, the medical marijuana policy that allows for growth and distribution of the drug to designated patients. Since then, the growth and distribution of medical marijuana has been controlled by local entities. But it was only last year that the state approved the Medical Marijuana Regulation and Safety Act, a group of bills that attempts to regulate medical marijuana on a state level. The act seeks to control the cultivation, manufacturing and licensing of medical marijuana, but maintains local government’s sovereignty over marijuana businesses, cultivation, and delivery. But an erroneous deadline in the bill allows local governments to ban medical pot cultivation, dispensaries, and mobile delivery. This has made many patients who have depended on the drug for treatment nervous.

The new bills gives local governments without ordinances relating to the cultivation of medical marijuana, the ability to do so until March 1, 2016. After that, the authority goes to the state. The deadline has sent some local governments scrambling to enact any type of regulation. In fact, dozens of governments have now imposed bans on medical marijuana cultivation. Last month, Paso Robles, Pismo Beach, Calistoga, Merced, and Tustin banned cultivation and/or deliveries. While other cities like Riverside, voted to allow a limited amount of cultivation.

In an open letter to city and county governments, Assemblyman Jim Wood, stated an intention to strike down the deadline and keep regulation in the hands of local governments. Some local governments have indicated a willingness to take another look at ordinances if the deadline is eradicated.

If the deadline is removed, local governments should focus on regulation and not prohibition. According to Americans for Safe Access, an organization that advocates for medical marijuana, bans on commercial or personal pot cultivation hurt patients. Despite the moral qualms that some citizens may have regarding medical marijuana, the reality is that patients are legally prescribed marijuana from a doctor that has determined they can benefit from use. Banning the growth and distribution of medical cannabis will only benefit the black market. As patients lose access to the drug legally, they will seek it out in places much harder to find and control.

Marijuana Merchant Account (MMA) offers a variety of marijuana payment solutions. We are a leading source of medical and recreational payment processing and loan origination. Be ready for state regulation with consumer and government trusted standards that only MMA can provide.

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Illinois Medical Marijuana Business Booming

Highway sign with marijuana leaf "Now Entering Chicago (Illinois)"Illinois medical marijuana dispensaries made over $801,000 in medical cannabis sales since last November. According to the Associated Press, the retail price of medical cannabis is about $14 to $15 per gram. In addition, Illinois earned approximately $57,000 in taxes from medical marijuana. The state has 16 licensed dispensaries, but only 8 are actively taking patients. Thus far about 3,600 patients have been approved for treatment for the program. There should be an influx of patients and profits as more dispensaries open. Joseph Wright, dispensaries director expects 20 to 25 dispensaries to be open by the end of the year.

Illinois is one of a few states that have legalized medical marijuana. Advocates of medical marijuana hope the success in Illinois persuades other states to adopt the same policies. Many states that want to legalize recreational or medical marijuana face severe opposition. Proponents believe that allowing medical marijuana will not only help patients, but create an additional channel of revenue for the state. As seen in Illinois, proponents of medical marijuana hope to make a considerable amount of income from the sale and taxing of medical marijuana. In addition, supporters think legalization will save states money on law enforcement, legal fees, prison sentences, and other judicial costs. Of course, the potential revenue generated from medical marijuana will differ based on state policies.

Even if states were to legalize the sale of medical marijuana, dispensaries and growers will have to surpass a few hurtles. One major issue is finding banks willing to handle medical and recreational merchant accounts. Under current guidelines, bank officials must submit annual reports validating the legitimacy of any cannabis accounts. If there are any irregularities found with the cannabis accounts, banks can be charged with major penalties.

Still, medical and recreational merchants have found success when dealing with smaller, more progressive banks. Medical marijuana and recreational payment processing is a complex business that requires expert knowledge. As states begin to legalize and decriminalize marijuana, you will need a competent lender that specializes in marijuana business funding to infuse your business with cash.

Learn more about expanding your customer’s payment options and finding funding with MMJ

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Many States Predicted to Legalize Medical or Recreational Marijuana in 2016

Marijuana American FlagMany are declaring 2016 the year of the “Green Rush”. There is no year leading up to this one that has offered as many promises for marijuana legalization. At the moment, 14 states have the potential to legalize MMJ, adult-use cannabis or possibly both. This positive change is due to other pioneering marijuana markets and the growing support for cannabis in general.

The legalization of marijuana has become such a recurring topic that it has forced presidential candidates to reveal their position. The fate of marijuana in these 14 states will depend on either the ballot box or state legislatures. The following list details some of the states that have the best chances of legalizing medical or recreational marijuana – or both – later this year.

California

California has been declared the main electoral event for marijuana advocates this year. As the biggest medical marijuana market in the country, advocates are pushing for the legalization of recreational cannabis. If voters approve, the state will quickly generate billions of dollars in recreational sales. Among the groups pushing for this to get on the ballot are billionaire Sean Parker and Lt. Gov. Gavin Newsom.

Florida

Because the measure to legalize medical cannabis failed by such a slim margin back in 2014, MMJ supporter John Morgan is gearing up for round two. With the turnout in the presidential election predicted to be higher than in 2014, and the currently very strong support for MMJ in the state, many are expecting Florida to legalize medical cannabis easily. If this does come to pass, Florida will become the second-largest MMJ market, just behind California.

Maine

A poll conducted in 2015 has revealed that Maine is ready for the legalization of recreational marijuana – with support reaching around 65%. Two competing campaigns, the Marijuana Policy Project and a grassroots group, decided to join their efforts last October instead of having two competing campaigns. Their hope is that this collaboration will boost the chances of success. While Maine would not be the biggest cannabis market in the country, it would contribute towards the progress of the industry as a whole.

Nevada

Nevada has been described as an easy target for recreational legalization. In fact, the state is already catering to out-of-state MMJ patients, thanks to a policy allowing medical marijuana cardholders from other states to purchase cannabis while in Nevada. According to Marijuana Business Daily, the campaign for recreational marijuana has already been placed on the 2016 ballot. The decision is now in the hands of voters.

Pennsylvania

Even though Pennsylvania lawmakers failed to reach a consensus bill in 2015, many advocates feel that MMJ in Pennsylvania will succeed in 2016. Many are afraid the state will replicate strict systems like in New York and Minnesota, which prohibit smokable cannabis. Because the state does not have a citizen initiative process, lawmakers will have the ultimate say-so. Fortunately, most officials are eager to legalize – including the governor of Pennsylvania.

Marijuana Payment Solutions

With so many states predicted to legalize recreational or medical marijuana, there is going to be a growing need for these businesses to secure payment processing solutions. Even with the expected growth, however, the industry is still frowned upon by traditional providers. This leaves many businesses with little to no options. Marijuana payment solutions from a high risk provider – like marijuana-merchant-account.com – provides businesses with the services they need.

For more information on what marijuana payment solutions can offer your business, contact MMA today

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Missouri Secretary of State Approves Medical Marijuana Petition

Marijuana Payment ProcessingIn October  2015, The Missouri Times reported the results of an informal online poll conducted by the St. Louis Business Journal. In this poll, an overwhelming 85% of respondents said “yes”, with only 13% answering “no”. These results came as a surprise for many, since the Business Journal’s readership – both in print and online – is considered to be more conservative.

This response was considered to be a rising tide of pro-marijuana sentiment in Missouri. Staunch medical marijuana advocate, lobbyist Mark Habbas, shared his feelings that people of all ages are simply beginning to see and believe in the benefits of medical marijuana. He also felt that the increase in the education on this topic has played a big part in this change.

“Every month, people are becoming more and more accepting to the fact that medical marijuana is a much safer alternative to prescription drugs,” he said. “I personally believe the numbers are accurate. They could even be higher. The more people we talk to on what the purpose of our bill is, there hasn’t been one person that said ‘I don’t support that.’”

Fast forward to the beginning of 2016. The Missouri Secretary of State has approved a petition calling for a constitutional amendment to legalize marijuana for medicinal purposes. However, in order for this amendment to find itself on the ballet, pro-pot supporters will have to collect roughly 160,000 valid signatures on the petition.

Despite polls revealing the overwhelming support, the petition faces the opposition of both The American Academy of Pediatrics and The American Society of Addiction Medicine. Both have expressed that they are strongly against medical marijuana laws. If Missouri is successful in legalizing medical marijuana, they will become the 24th state to do so.

For those that have businesses in this industry, or for those who are putting together their business plans, you know how difficult it can be to secure the business funding your business needs. Without funding, many marijuana businesses struggle to get their foot in the door. The “high risk” categorization placed on the industry by traditional lenders can make the situation seem impossible.

If this has been a problem for you, consider what marijuana business funding can offer your business. Marijuana business funding from a high risk provider like marijuana-merchant-account.com can provide your business with the funds it needs. Unlike a traditional lender, marijuana-merchant-account.com specializes in working with the marijuana industry and its unique needs. The application process is also simple, fast and hassle-free.

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Mount Vernon, Washington Experiencing a Drop in Marijuana Prices

jointAccording to recent reports, the price of marijuana is dropping significantly. When the retail industry kicked off in July of 2014, the average price for marijuana was $25 to $30 a gram, according to The Daily News in Longview. As of now, the price for a gram of marijuana has fallen to $8 – or lower.

According to Cannarex manager Damion Acosta, the initial prices were forced to drop, otherwise the industry would have to “bail”. “The producers realized things weren’t selling so they had to lower the prices,” he explained.

What caused this dramatic drop in prices? This change occurred for a number of reasons, including: a decrease in taxes, an increase in supply and a need to compete with the black market. Even though the retail market has changed its prices to compete with illicit sales, the black market continues to account for a big chunk of the marijuana industry in Washington state. In fact, according to the state Liquor and Cannabis Board, black market sales account for 28% of the $1.3 billion market.

Local store owners are also adamant that an increase in producers has had a huge impact on lowering prices for buyers at checkout. At first, producers were few and far between. Now, there are so many producers that retailers are having a hard time choosing.

According to Smuggler Brothers owner, Jeff Kraus, “Our first month, it was hard to get producers to call me back. Now I have to tell them, ‘No,’ more than I say, ‘Yes.’”

Many shop owners also believe that the drop in taxes this past summer has led to lower prices on store shelves. Previously, producers and retail shops were required to pay a 25% excise tax; this excise tax is now at 37% at the retail level. Kraus commented that, “We saw cuts on prices almost unanimously across all our producers when the tax cut went into affect. It’s a cleaner system now.”

The current atmosphere in Mount Vernon has left many wondering how these recent changes will affect the market, but one thing has not changed. Marijuana businesses are still considered to be “high risk”. If you have had problems securing the payment processing solutions you need, consider what ACH check processing with marijuana-merchant-account.com can offer your business in options. The application process takes a matter of minutes, contact us today!

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2016’s Trends in the Marijuana Industry

unnamedWith more states heading into the legalized marijuana realm, trends are likely to change. Even if more states were not legalizing this valuable herb, trends would change for those in this ever-changing world. New consumers and new locales mean that different things will be in demand – as well as different types of technology. Below are a few prospective trends to watch for in 2016.

First off, new clients mean introducing a new variety of people to the legalized drug. While some would use marijuana, legal or not, others are interested in the new legal remedy for many ailments. From migraines to seizures to cancer, marijuana has medical benefits that many are willing to embrace. Marketing to both groups can help you gain customers, as well as not alienate those familiar with the industry. In addition, prices are likely to drop thanks to a supply overage. Yes, a massive supply of marijuana that is not being bought and used. That is our reality in 2016, and these lower prices can help attract customers – and keep them satisfied.

Edible goods are also projected to boom in 2016. While edible brownies and lollipops have been around for a few years, many in the culinary field are becoming creative with their marijuana-laced wears. From sauces and marinades, to cake frosting, and even gum flavorings, marijuana is everywhere, and it is becoming a hot item to market. However, you must be careful to keep these items away from the reach of children – and educate your customers to do the same.

Perhaps not a trend, but a very important business move, is the ability to process checks. A dispensary check processing account is in much demand, thanks to the small percentage of customers who pay with cash. Check writing is becoming a lost art for some, but for those who do it, the ability to accept their payment can keep them happy, and give you a new customer. This technology can be hard to find, but the search is well worth it, because it gives you a new avenue to customers.

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California’s Ever Changing Medical Marijuana Rules

high risk marijuana merchant servicesCalifornia was one of the first states to embrace medical marijuana, and they have led to many other states following suit. However, since its legalization in the state, regulations have changed numerous times, making the industry hard for merchants to comprehend, and leaving customers scrambling to figure it out. Below you will learn a few things about the current state of affairs in the California legalized marijuana field, thanks to California Assemblyman Rob Bonta, from his speech at the Marijuana Business Conference and Expo.

Assemblyman Bonta has long been a proponent to the legalization and regulation of marijuana in the state, and he spoke at the Expo to clear up controversy, and to help merchants and those who offer medical marijuana payment processing better understand the current state of affairs. Mr. Bonta spoke about the fee structure, which is complicated and has confused many. With the new state method, smaller merchants will pay a smaller fee than larger businesses. This is only fair, and it is something that many have been wishing. These fees are supposed to help regulation, and the regulation is supposed to show the legitimacy of the industry.

Legitimacy can be an issue when state regulations are faulty, as is in Mr. Bonta’s example of a criminal – formerly imprisoned in another state – being granted a medical marijuana merchant license in California. There are loopholes that need to be closed, but it is hard when there are no federal regulations, or even state-to-state regulations concerning the industry. It may takes years or even decades for these issues to be dealt with quickly, but at least California knows that they exist, and they are trying to fix them. This leaves consumers and other merchants vulnerable, but new regulations can help fix any issues concerning quality control and sales.

The medical marijuana sales industry is booming, but there are issues that can keep merchants from jumping into the industry. While regulations are needed, there is a fine line between the right amount and too many. In California, more regulations are still needed to keep merchants and consumers safe.

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