Category Archives: California Marijuana

Marijuana Tax Facts for California

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480007355Marijuana is a big tax builder for California, and some new law changes can make it an even bigger tax booster. The tax in Prop 55 is not new, but is an extension of a temporary tax increase approved by voters in the last election when they voted for Prop 30. Prop 55 would extend that tax by 12 years, but only for Californians earning more than $250,000. It’s estimated the tax would generate between four and $9 billion a year for public schools, and $2 billion dollars a year for health care for low-income patients.

So, that’s good right? Right, but it could be more. And with more legal issues in the way it could be a long road before the numbers are met. However, it can be met with a major blow to another filter-tipped friend: The cigarette. Prop 56 would also help fund the state’s Medi-Cal program by hitting cigarette smokers where it hurts most – their wallets. The measure proposes increasing the tax on a pack of cigarettes from 87 cents by $2 to $2.87. So, it could be adding tax revenue to the state and help curb smoking.

But let’s be real: It probably will not totally cut out cigarette smoking. The cigarette tax in NYC is over $4, and people still buy them. But, legalized marijuana is a whole other game. Not only is it for those who want a stress reliever, but it is also for those with medical issues who want a natural remedy. And pot seems to be a great natural remedy.

Merchants still need to be careful, because even if these taxes are totally enacted, there will be even more strain on marijuana businesses. You need to make sure that your business is following the state laws, county laws, and city laws as they relate to your business. You also need to make sure that you have a marijuana merchant account provider that understands your industry. This not only can help save your business from violating any laws, but it can help it from losing money from a merchant account provider who doesn’t know how your industry works.

California’s Ever Changing Medical Marijuana Rules

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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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New Rules Have Los Angeles Dispensaries Scrambling Not To Close

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Indoor Marijuana Grow Room with Plants in Soil Under LightsWhen it comes to marijuana dispensaries and their rules, it seems that anything goes with California’s law makers. The newest rules have dispensary operators scrambling to keep their doors open. While Californians have (for the most part) welcomed marijuana dispensaries to their communities, the state’s law makers have been unable to come to terms with the new industry, and have been unable to come to a conclusion on state-wide rules. That is, however, until a few weeks ago when Governor Brown signed new legislation in regards to the state-wide marijuana industry.

This new legislation affects more than just who can work in a dispensary, or more than rules regarding marijuana payment processing systems. This new rule brings forth licensure both – state and city – for dispensaries. The problem is that Los Angeles does not offer city-wide dispensary licensing. Oddly enough, thanks to the citizens voting for Proposition D in 2013, dispensaries are not legal in Los Angeles. These dispensaries only have “limited immunity… from prosecution” according to Prop. D. There are currently 1,500 or so dispensaries in the city of Los Angeles, and they are all at risk of closing.

So, what do you do if you are a marijuana merchant in Los Angeles? First off, don’t panic. Yes, it seems natural to panic. You’re operating a business that isn’t 100% legal on a city-wide level, and you may be afraid of what will happen. Well, thankfully, there is a state-wide legality for marijuana dispensaries. These new laws are a good thing, and they help better regulate the medical marijuana industry. Without these state-wide bills, local ordinances can make their own rules and regulations as they please. These new rules create a Bureau of Medical Marijuana Regulations (sounds fancy, doesn’t it), and it will be operated under California’s Department of Consumer affairs. This helps better regulate the businesses – and gives consumers a place to formally complain if something goes wrong. It also helps further legitimize the often-controversial medical marijuana industry.

Typically, the biggest issues medical marijuana merchants have is locating a marijuana payment processor. However, Los Angeles dispensaries now have to worry about new state-wide regulations. The best thing that existing dispensaries can do is rely on the state laws, which look to protect both dispensaries and consumers.

Let us help you with Marijuana Payment Processing today!

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Marijuana Business Funding – California Businesses Await Statewide Regulations

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Marijuana Business FundingMedical marijuana is not new to the state of California. Although California was the first state to legalize medical cannabis in 1996, it never managed to establish statewide regulations on the medical cannabis industry. As a result, a mishmash of local rules were put into place that vary depending on the municipality or county.

The lack of regulations has led to a lot of uncertainty for businesses. On top of the general confusion in the market, there is also a continuous fluctuation of companies. Companies start up only to be shut down by anti-cannabis officials. This confusion and inconsistency in regulations is a statewide problem. If a regulatory scheme could be adopted statewide, it would help to stabilize the country’s largest MMJ industry.

At the beginning of September, it was announced that California was just days away from approving statewide regulations on its enormous medical cannabis industry. With the legislative session set to adjourn on Sept. 11, lawmakers and stakeholders are under a lot of pressure to work through negotiations and strike an agreement.

The key to reaching a solution will be appeasing all of the stakeholders, which includes industry leaders, law enforcement representatives and healthcare officials. All while conforming to new proposed bill language released by Gov. Jerry Brown’s office.

According to Sean Donahoe, an industry political consultant, “What’s been happening for at least the last two years is we’ve been trying to smoke out the governor – pun intended – as to what his preferred regulatory approach might be”.

While the governor’s bill language is likely to undergo further revisions, there have been hints as to what the bill might include. According to various sources and the East Bay Express’s review of Brown’s draft:

  • There would be a dozen state business licenses to choose from for businesses in the industry including: cultivator, dispensary, manufacturer, testing lab, and more.
  • Companies would be limited to two licenses each. A single company would not be allowed to grow, dispense and manufacture other goods, such as edibles. (However, there would more than likely be exemptions for the two-license cap for existing businesses that are currently conforming to separate local mandates).
  • Organic certifications would be put into place, and testing would more than likely be implemented and required.
  • Local governments could still possess the ability to ban commercial marijuana activity if it so desired.
  • Growing would be limited to one acre, or 20,000 square feet (the paper did not specify whether or not this would apply to outdoor or indoor grows).
  • There could be requirements that medical cannabis must be sold in the geographic region in which it was grown.

While the next steps involved are unclear, the specific regulations will be left to rulemaking under the authority of one or more state agencies. The governor reportedly preferred to choose a bigger picture regulatory bill while leaving the majority of the details to administrators. While the governor’s bill will more than likely undergo further revisions, many are optimistic in the progress that is being made.

In the words of one staffer, “This is the farthest any of the cannabis bills have come in the past few years, ever”.

The issue of regulation is obviously a big obstacle for businesses to overcome. Finding business funding is even more so. Many businesses have turned to marijuana business funding from high risk merchant account providers. Since business funding is not a loan, the application process is simple. Basic documentation is required, and the acceptance time is quick – sometimes in as little as 5-7 days. This has made marijuana business funding an attractive option as businesses wait for regulation issues to be addressed and decisions to be made.

Contact MMA for Marijuana Business Funding today!

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Plans for Recreational Marijuana Regulations in California Begin

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imgresIt is well known that medical cannabis is big business for California. However, California’s history with the regulation of medical marijuana has been described as being subpar and disjointed, at best. After the fiscal analysis by the office of California Attorney General Kamala Harris was released, a Stanford Law class decided to draw up their own report analysis that outlines what the state should do to ensure that regulation, taxes and distribution of recreational marijuana is done properly.

The report, Analyzing Alternative Laws & Policies for Psychoactive Drugs Seminar, was presented by Stanford Law Professor Robert J. MacCoun’s law practicum. The report states that the intentions and the conclusions of the paper were not aimed at providing a recommended policy. The goal was to inform the public debate and highlight certain, important issues that might not have been otherwise widely recognized and understood.

The report covers three main areas: labor relations, regulation and taxation. While the nine students in the practicum did not adopt specific positions, they did draw some specific conclusions concerning these issues.  For example, in their opinion, one of the most pressing issues is the tension that continues to build between federal prohibition and state legalization.

One of the proposed solutions is to regulate and enforce laws through a single, integrated agency. This agency can be an existing state organization or a newly formed independent commission. Another option is to enforce and regulate laws through utilizing the strength of multiple agencies. This conclusion was drawn from the troubled history California has with trying to regulate medical marijuana. The thought of a powerful, well-informed (preferably independent) agency regulating recreational marijuana is thought to be a step in the right direction.

The report when on to cite the numerous tax bases that are being utilized in Colorado and Washington where recreational marijuana is already legal. The pros and cons of a high and low tax rate were then examined. A high rate was felt to limit the negative consequences that are associated with marijuana consumption. On the other hand, it could limit the amount consumed. Too low of a tax rate could mean that the government cannot obtain a meaningful revenue. On the other hand, it could help to eliminate the black market.

With the possibility that a ballot initiative could be passed for recreational marijuana in November 2016, the race is on to answer these important questions and set up a structure in the state of California that works better for recreational marijuana than the structure for medical marijuana has been.

For the sake of the marijuana businesses, many are hoping that the divide between federal and state will be one of the first issues to be addressed. Entrepreneurs are struggling to even get their businesses started since banks are hesitant to offer merchant accounts with the regulations they must follow on the federal level. For now, businesses continue to turn to marijuana business funding as an alternative solution to their payment processing needs.

For Marijuana Business Funding contact us today!

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California is Wanting a Marijuana Bank

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Marijuana Business FundingBanks are everywhere, and most of us have an issue with our bank at one time or another. However, for legalized marijuana merchants in California, these issues are never-ending. From finding a business account, to the fear (and reality) of having that account closed without notice, Californian marijuana merchants are in a mess when it comes to finding and keeping a bank account. While the idea of a marijuana bank is great, in the long-term it may face issues. The main issue is the Fed.

The Federal Government is an issue because 1) the regulate the banking system, and 2) marijuana is still illegal in the Fed’s eyes. Yes, even though so many states have some form of legalized marijuana, it is still a federal crime to possess it. Because of its federal illegality, banks are not wanting to deal with these business. However, a cash-only business is hazardous, as there is no way to verify or recoup the funds if stolen. Cash-only businesses are at a higher risk for burglary, and sadly, it happens often. While the industry as a whole is at a higher risk of being robbed, those who advertise that they are cash-only have put a target on their backs.

Instead of all of this chaos, marijuana merchants need to search for a medical marijuana payment processing account. Yes, it is possible to find a legal payment processor for the marijuana industry. While banks are tightening the reigns on who they will, and will not, work with, the marijuana payment processing industry is picking up the slack. There are many who claim to be educated and experienced in the industry, so be sure to do your research. Not all are created equal, and even processing fees can vary with each processor. Processing fees are huge, and high processing rates can sink a new or struggling company. However, before going with the processor with the lower rates, check around and do not rush. Be sure to do your research before signing on with a marijuana payment processor, as this is one of the most important things you will invest in for your business.

For Medical Marijuana Payment Processing, contact us today!

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California Advances two Bills Regulating Medical Marijuana

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Marijuana Business FundingMedical and recreational marijuana is big news in all states. From the legalization of cannabis oil for terminally ill patients in Georgia, to legalized recreational marijuana in Colorado, the topics and talk are endless. While states and consumers are embracing this legalization, you need to remember that any type of marijuana containing THC, or Tetrahydrocannabinol is still federally illegal. The potent, and thus illegal, chemical compound is long been proven effective for managing pain in patients who have terminal conditions, ranging from cancer to AIDS.

Luckily, the state of California has recognized this, and they have pushed forward two bills that help regulate the industry. This bill creates a framework for governing the medical cannabis industry, from establishing tax structures and quality controls to licensing dispensaries and cultivation sites. A Bureau of Medical Marijuana Regulation established within the existing Department of Consumer Affairs would oversee the industry. It sounds like a great plan, and a plan that should be able to help the businesses more successful. The second bill, AB 266, would spread the responsibility for licensing different aspects of medical marijuana across several state agencies, including the Board of Equalization and the departments of Public Health and Food and Agriculture. Local governments would oversee growing and selling marijuana. This works as well, and many love the “local’ aspect to this bill. Not all areas are the same, both economically and socially, so this more localized option may fare better.

One of this bills will pass, as the state needs better control of their legalized marijuana market. That being said all legalized marijuana merchants need to have control of their companies. This starts with a good business plan and following local regulations. This also starts with how you operate your business. Few start out with the funds needed to fully provide for all of its business needs, so a good marijuana business funding source is needed. It can be hard to locate one that is equipped to deal with this industry, so be sure to fully research all of your options before making a quick decision. Every marijuana business funding source is different, and most have varying terms. By researching your options, you are bettering your chances of having a successful business.

Contact us today for Marijuana Business Funding

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Understanding How to Operate Under the CA Marijuana Law

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Marijuana Business FundingAre you one of the many individuals in the state of California in need of marijuana for medical use? If you are, there are key aspects of California law that you should know. While the medical use of marijuana is legal, the recreational use, possession, and cultivation of marijuana is very much illegal. You must not only understand California law, but also federal law and your rights.

The fact that marijuana is still illegal on the federal level continues to be the biggest obstacle for those who need to use marijuana for medical purposes. The Drug Enforcement Administration (DEA), lists marijuana as a Schedule I drug along with other drugs, substances and chemicals that are considered the most dangerous along with having no currently accepted medical use. This means that even though medical marijuana cultivation was legalized in 1996, it is still technically illegal on the federal level.

According to California law, the possession of one ounce of marijuana or less is an infraction with the possibility of a $100 fine. Larger amounts can mean fines of up to $500 and six months in jail. If you are found to be in possession with the intent to sell and/or cultivate, it can lead to a possible state prison sentence since both are considered to be felonies.

The best thing you can do for yourself is to educate yourself on your rights. For example, if authorities find that you have baggies and scales then there is evidence of intent to distribute. Instead of looking at a simple possession misdemeanor, you might now face prison time. In addition, if you are located close to a school or near children, your punishment will be much worse.

When growing for medical use, you will have an easier time proving that it is for medical use if you grow a number consistent with your needs. If you are caught with 300 plus plants, for example, this will immediately appear excessive for one individual’s medical use; thus, you may be charged with a felony. However, if you have a large group of people and you can show that it is a more reasonable count of ten plants per person, your grow may be declared legal under California law.

While the medical marijuana industry continues to grow at a rapid pace, there are still many obstacles for those who have startups in the industry; the conflict between state and federal law being a major one. The following tips should help you to be prepared for worst case scenarios while also providing safe solutions to your business needs. Keep all of your “I”’s dotted and your “T”’s crossed.

First, be sure to secure the services of a lawyer who knows cannabis and medical marijuana laws. They can provide answer to any questions you might have as well as assist you in operating your business in compliance with state law.

Second, consider securing marijuana payment processing. This option will provide you with safe and hassle-free payment processing solutions when traditional lending sources shy away from you due to the “high risk” nature of the medical marijuana industry.

For Marijuana Payment Processing contact us today!

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The Momentum Needed to Legalize California

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Marijuana Business FundingCalifornia was the first state to legalize medicinal marijuana, but has fallen behind in the efforts to legalize it for recreational use while Colorado, Washington, Oregon, and Alaska has successfully started selling and making profits from marijuana sales. It was thought undoubtedly that California would have been the first state to legalize recreational marijuana, but with California’s different campaigns and multiple population centers, it has been hard for everyone to focus solely on the marijuana legalization campaign. Here are a few things that it would take for California to legalize marijuana.

The most important and main step to take for California to legalize marijuana is to actually have the campaign be the main focus during the election. The last two elections had too many competing initiatives that refused to work together. Given, California has other initiatives such and education and healthcare that need to be addressed and many are not willing to unite together to spend their funding and time into a campaign that contradicts their belief system. It will take everyone’s resources and efforts to really get the marijuana campaign noticed in the state.

Let’s say the reform community unites and large contributors follow, the next step would be having money to fund the recreational marijuana campaign. It will be no easy feat, it took Oregon 4 million dollars in campaign spending to legalize the drug and that was a smaller state. It would take an estimated 18-20 million dollars to legalize marijuana in California and additional millions for behind the scenes spending. The signature requirement is much higher in California compared to other states and has more population centers around the state, which translates to more money needed to have stronger media campaigns in the population centers. Now, if the funding for the campaign were met, to successfully win the vote to legalize marijuana it will require a strong campaign team.

A strong campaign team will be needed that consists of California reform leaders and members from other successful campaigns that are willing to focus on the legalization of marijuana. If these groups of people got together then surely marijuana would be legalized. Join California’s marijuana industry by receiving marijuana business funding with marijuana-merchant-account.com. Become a marijuana merchant and join the already thriving industry.

All hope is not lost for California in their pursuit to legalize marijuana. By chance, the California Legislature could even legalize marijuana before the election and save time and money in campaigning, but without relying on that, the listed steps would be needed to see legalization happen in the state of California. California is relentless in making change happen, if the 2016 election doesn’t prove to be successful, there will always be the years onward to fight to legalize their beloved plant.

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