California Cities Unprepared for Legal Recreational Cannabis Sales Jan. 1

Marijuana Business FundingThe long-awaited day is right around the corner, but California is not as prepared as it should be for the start of recreational marijuana sales on January 1st. Both Los Angeles and San Francisco are struggling to put together local rules for cannabis shops and growers. The problem is that a delay in regulations could lead to limited options in many areas. This would be incredibly unfortunate, considering how many consumers are eager to ring in the new year with a legal cannabis purchase.

Thus far, California plans to treat marijuana like alcohol. Individuals 21 and older will be permitted to possess up to an ounce and grow six marijuana plants at home. On Jan. 1, the newly legalized recreational marijuana sales will be merged with the state’s medical marijuana market, which is experiencing stronger regulation. Recently published plans to regulate the two-decades-old medical marijuana market are the first since it was legalized.

This proposed plan details the standards for marijuana merchants that wish to be licensed by the state. The rules range from how late these cannabis shops can stay open to how much they will be allowed to sell each day. The final rules should be in place in time to start issuing licenses by January 1st – just in time for the rollout of legal recreational marijuana purchases.

While it sounds like things are moving steadily forward, there are some holes in the system. Specifically, how the cannabis will be moved from the field to distribution centers, on to testing labs and finally arriving at the retail shops themselves. The licenses to be issued in January are temporary, and plans have not been released on how the estimated $7 billion marketplace will be governed.

Obviously, a big problem considering the state is expecting to see as much as $1 billion in the first few years. Operators are concerned that this delay in nailing down the details could cause serious conflicts in various rules and laws to pop up down the road.

According to The Cannabist, “The state expects businesses that receive licenses will only work with others that hold them. But that has alarmed operators who wonder what will happen if their supplier, for instance, decides not to join the new legal market.”

Another huge obstacle for marijuana operators is that banks still refuse to work with them. Under federal law, marijuana remains very much illegal. As a result, these merchants have turned to alternative providers like Marijuana Merchant Account for their business funding and payment processing needs. Unlike their experience with a bank, merchants can secure the services they need with MMA in as little as 24 hours with minimal documentation requirements.

Meanwhile, Jan. 1 is fast approaching – ready or not. Cara Martinson of the California State Association of Counties recently admitted, “The bulk of folks probably are not going to be ready Jan. 1.”


Legalized Marijuana Helps All Industries – Including Real Estate

marijuana dispensary merchant accountMarijuana and real estate may seem like they do not go together, at least legally. When you think of the two words together, you may think of a big drug lord and his mega mansion. However, in today’s world legalized marijuana is quickly becoming a familiar feature, and this legality can help local real estate markets. It doesn’t help only because the proprietor is making big bucks, but it helps small downtown areas, and other commercial areas. This legalization has caused some to worry, but for areas who have legalized it, they are seeing the economic growth that it can bring.

One of the unknown or perhaps un-thought of, real estate issues that come with legalized marijuana is where it is grown. New York State, which has legalized medical marijuana, permits the marijuana to be grown in an enclosed greenhouse or warehouse. This brings the need for rentable space, or buyable space for those lucky ones who can afford to purchase property in New York. These are spaces that otherwise would be unoccupied, and thanks to the legalization of medical marijuana, they are now occupied, and the monies paid in rent is filtered back through the state’s economy. Other have found that hemp, a nationally legalized strain of cannabis, can be grown and used for other things. For instance, clothing, jewelry, and building materials. Hemp can be shipped around the globe, unlike it’s green cousin, and can be grown and processed (and used) without any odor.

While starting your own legalized marijuana business can bring you big bucks, it can also contribute to all aspects of your local economy. From providing jobs, to renting a retail space, to ordering takeout at local restaurants, the economic flow is endless. You need to make sure that you have your company in order, from employees down to marijuana merchant processing account, so that your business can fully contribute to your local economy. Not all areas are welcoming to the industry as soon as it is legalized, but after the local economy grows, they become friendlier to the new growth in the area.

For Marijuana Merchant Processing contact us today!