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New California Law on Cannabis could ruin the business

jump /injack

Member
Veteran
<article class="post-4352 article type-article status-publish has-post-thumbnail category-activism tag-lets-fix-mmrsa entry" itemscope="" itemtype="http://schema.org/CreativeWork"><header class="entry-header">The new law being proposed in California is a lawyers and bank robbers dream. The fix is in for the buddies of California politicians, be sure to listen to what Steve DeAngelo has to say about the tier system, only an attorney could come up with something like this. The URL at the bottom will take you to the DeAngelo statement and it makes sense, the California Legislature in their greed wil ruin the business before it born, it should be against the law for attorneys to be legislators because they sure aren't business men.

New regulation could triple the price of cannabis in California unless we fix it now.


  • By:
    author-logo-web.png

    The Green Flower Teamon June 13, 2016
</header></article>
MMRSA_green-flower-media_600x400-web.jpg
If you don’t want cannabis prices to triple, there is something you can do about it right now.

While many industry leaders in California are very excited that we could soon have a fully regulated and above-board cannabis industry, there’s a serious flaw in California’s new Medical Marijuana Regulation and Safety Act (MMRSA) that could double or triple the price of cannabis for consumers.
This would jeopardize the safety of patients, farmers, jobs, state tax revenue – and potentially bring down the state’s entire regulated cannabis industry.
If this sounds alarming to you – that’s because it is.
But it’s not too late to fix this if we act now.
Let’s take a quick look at what the actual problem is and how it will affect patients like you.
And if you don’t live in California, you should still take note because California is the largest cannabis market, and if regulations go wrong here, it will be a disaster for the rest of the country in regards to legalizing cannabis.
The urgent problem with MMRSA

The passing of MMRSA brings with it long-awaited, state-wide regulation of medical cannabis.
However, there is one aspect of MMRSA that makes zero sense for medical cannabis patients, cannabis farmers, manufacturers, or dispensaries – and that’s the introduction of a mandatory distributor level into the supply chain.
This distributor requirement will add extra steps (and costs) into the supply chain, with distributors quoting a 15 percent to 35 percent fee to manage each step.
In this video, watch long-time cannabis entrepreneur and activist Steve DeAngelo explain the challenges and negative repercussions with mandatory distribution:
Patients and farmers alike are worried about MMRSA

Watch how patients and families will suffer if we don’t amend the new regulation ASAP:
And while the reasoning behind MMRSA’s mandatory distribution clause is to protect the small farmers, most of them are opposed to it:
The additional taxation alone would SUBSTANTIALLY drive up prices.

MMRSA also includes two new taxation measures that will substantially raise the price of cannabis and hurt patients.
Specifically, SB987 is a new 15% retail tax (to consumers) and AB224 creates new (excess) taxation to growers on the raw plant material.
While everyone appreciates the desire to create funding from this new regulatory system, this is an outrageous level of additional taxation that will prevent affordable and safe access to the medicine.
This is not something we should just sit back and tolerate when the price of cannabis is already too expensive for most patients.
More challenges with mandatory distribution

Mandatory distribution presents other challenges, like increasing the time it takes for cannabis products to reach patients.
As cannabis ages, THC is turned into CBN, which can have a dramatically different effect on a patient – mostly sedative. And THCA can turn into THC through temperature changes – also dangerous if unexpected.
Bottom line is that adding in mandatory distribution will substantially increase the processing and transportation time, which could have damaging, unintended consequences on patients who rely on cannabis as medicine.
How you can save medical cannabis in California (yes you!)

This mandatory distribution scheme was not created with cannabis patients in mind. It was drawn up by outside interests who are almost exclusively financially motivated – and don’t have the best interests of the people, farmers, or the industry.
Unfortunately, they don’t realize that their avaricious play could sink the entire industry and threaten the safety and livelihood of countless people.
Luckily, it is not too late to fix this. But we’re going to need your help…
If you live in California, we encourage you to contact your local representative and share your concerns.

Here’s how you can do that.
Step 1: You can easily find your local representatives here: http://findyourrep.legislature.ca.gov/
Step 2: Reach out to EVERY REPRESENTATIVE listed in your local area and send them an email, call them up, or make an appointment to go speak with them in-person. Their job is to listen to your concerns.
Step 3: Tell them:
“I am very opposed to mandatory distribution and excess taxation in the MMRSA to regulate medical cannabis in California. It will substantially raise the price of cannabis for patients, and it will put many small farmers out of business. I am voicing my concerns so that you can represent our best interests to make sure this bill gets amended to support the people it’s designed to serve.”
That’s it! They just need to hear your voice to make a difference.
Together, we can save cannabis in California. Let’s show our public servants that we don’t accept MMRSA’s mandatory distribution model and the excess taxation, and let’s flood their email boxes and voice mails so they know to act in favor of our best interests.
If you care about cannabis and the patients who depend on it, please share this article with as many people as possible.

http://greenflowermedia.com/article/lets-fix-mmrsa/ Steve DeAngelo outlining the proposed [MMRSA] rip off by the State for their relatives and friends.
 
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stoned-trout

if it smells like fish
Veteran
no surprise ..I been saying all along its gonna go wrong....vote no.....yeehaw..either way I will still have mine..and fuck steve he aint our friend he just wants to line his pockets and crush any competition...on the upside the black market is gonna thrive again...!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
 
Are you sure DeAngelo isn't just salty as fuck that he doesn't qualify to own his $30 million a year business anymore under MMRSA because he has a major felony on his record?

The regs in CA under the MMRSA aren't bad. Effective excise tax rate's going to be lower than most places. 15% retail plus $9 an ounce from the grower. And the distribution will take almost no time - the point is to make it so there's a third party making sure the grower paid all their taxes and giving the lab a chance to select their own samples so growers can't doctor their test results the way we can in most other states. If the batch is presold the whole distribution process should take maybe three or four days. Not enough to significantly change cannabinoid content. And the 15%-35% quote is ridiculous. They're entitled to charge a fair cut but I'd be very surprised if it was more than 10%. I'm expecting 3-5. Remember, they're set up to be holding tons of marijuana at a time, not pounds, and everyone has to use them, so they don't have to gouge to get theirs and then some. That's also the easiest license to get under the MMRSA so if the biggest distributors get too greedy, competition can pop up overnight. The MMRSA just isn't structured to allow that kind of price gouging to happen by distributors and the AUMA would cut the separation of distributors entirely so their services wouldn't even be mandatory.

Also, check out the provisions in the AUMA regarding keeping low income medical access and not charging taxes on nonprofit dispensaries, not that most growers actually care about being able to sell their product at half price so the consumer doesn't have to pay taxes.

Crap on the lawyers till you need one, bud :) It's where DeAngelo's at right now. How many lawyers do you think that guy is working with right now to try and get his 200lb delivery to an East Coast undercover sealed so he can keep his huge, partially-regulated business?

http://www.latimes.com/politics/la-pol-sac-pot-dispensary-felon-owners-20160513-story.html
 
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krunchbubble

Dear Haters, I Have So Much More For You To Be Mad
Veteran
I wouldn't trust a God damn thing that comes out of Deangelos mouth...
 

jump /injack

Member
Veteran
"Are you sure DeAngelo isn't just salty as fuck that he doesn't qualify to own his $30 million a year business anymore under MMRSA because he has a major felony on his record?"

Most people who are in the MJ business has some kink of record, remember its a business for the State and Federal to put you in prison for their Union Goons. Why would you think that the Government in California won't do the usual, ruin the business with rules and regulations and make it so expensive no one could afford it legally. Just what does Government do right anymore? As President Kennedy once said, "the most terrifying thing a business man can hear is "I'm from the government and I'm here to help." DeAngelo thinks that MJ prices would jump over 300% and from prior business experience so do I and many others, you do not want 'GOVERNMENT' as your partner except in for scams like "Solyandra" or "Fast and Furious" where the sucker taxpayer is humping the expenses.
 

Mrs.Babba

THE CHIMNEY!!
ICMag Donor
Veteran
The ballot measure we tried to pass here in siskiyou county didn't make it, so no outdoor or indoor growing in the county. Sucks big time but I don't think it will stop a lot of ppl. This is going to be interesting here how it plays out and what happens in November, lots of voter intimidation by law enforcement and the county clerk is also being looked at.....
 

krunchbubble

Dear Haters, I Have So Much More For You To Be Mad
Veteran
The ballot measure we tried to pass here in siskiyou county didn't make it, so no outdoor or indoor growing in the county. Sucks big time but I don't think it will stop a lot of ppl. This is going to be interesting here how it plays out and what happens in November, lots of voter intimidation by law enforcement and the county clerk is also being looked at.....



Yes, im really wondering IF it will become legal come November...

I mean just about all the pro pot ballots failed miserably, and in areas DOMINATED by growers and their families...

Makes you wonder if there is some kind of corruption to keep cannabis ILLEGAL in California...
 
Lots of people have some kind of record. Not everyone gets popped with 200 pounds. Kinda takes the whole "picking on the little guy" thing outta the equation. There are provisions in the MMRSA for people with less serious records than that to qualify for ownership. I mean, you move that kinda weight, you're getting the markup for it being illegal along with the risk that something bad could happen, right? It's a business transaction and now he's paying for it. Poor lil guy only has a jillion dollars and a business he'll probably be able to sell for another jillion. Man, I sure would hate to have to retire and live in my hot tub filled with champagne or switch to a cushy consulting job after building and running one of the top 10 most profitable marijuana businesses in the nation.

And I think that because I'm starting from the assumption that making marijuana safer and widely available is a good thing. And when you look at the MMRSA compared to the other states that have legalized so far, it's not outta line. Lower tax rate, reasonable structuring, intelligent testing requirements, wide access, and a runway into recreational. After looking at the whole country, CA's the place where I'd wanna set up shop. Too bad the MMRSA doesn't allow out of state ownership.
 

jump /injack

Member
Veteran
"And I think that because I'm starting from the assumption that making marijuana safer and widely available is a good thing. And when you look at the MMRSA compared to the other states that have legalized so far, it's not outta line. Lower tax rate, reasonable structuring, intelligent testing requirements, wide access, and a runway into recreational. After looking at the whole country, CA's the place where I'd wanna set up shop. Too bad the MMRSA doesn't allow out of state ownership."


Why would you think that a 10% state sales tax plus a sin tax of 15% totaling 25% would be a good thing, written by people with no experience in a workable, profitable business. Only a government chump would think that 25% taxation would be a good thing and then insert additional and not needed an extra load of baggage for your friends to rake off 35% profit without any qualifications, only a apparatchik of socialism would think something like that was good. California has lost many, many businesses to other States like Texas with that type of thinking, California has went from the 7th largest economy in the WORLD only 10 years ago to a pauper state under Democrats and you're saying TRUST them again? California will soon be in receivership for its profligate ways, lets give all taxes to Medical Research for Cancer using cannabis. Democrat Politicians have not helped in the least with Prop 215, they fought it but now want 75% of the profits from it. They are just like the Communists of Venezuela where there is no toilet paper except for the elitists and no water for anyone.
 

krunchbubble

Dear Haters, I Have So Much More For You To Be Mad
Veteran
"And I think that because I'm starting from the assumption that making marijuana safer and widely available is a good thing. And when you look at the MMRSA compared to the other states that have legalized so far, it's not outta line. Lower tax rate, reasonable structuring, intelligent testing requirements, wide access, and a runway into recreational. After looking at the whole country, CA's the place where I'd wanna set up shop. Too bad the MMRSA doesn't allow out of state ownership."


Why would you think that a 10% state sales tax plus a sin tax of 15% totaling 25% would be a good thing, written by people with no experience in a workable, profitable business. Only a government chump would think that 25% taxation would be a good thing and then insert additional and not needed an extra load of baggage for your friends to rake off 35% profit without any qualifications, only a apparatchik of socialism would think something like that was good. California has lost many, many businesses to other States like Texas with that type of thinking, California has went from the 7th largest economy in the WORLD only 10 years ago to a pauper state under Democrats and you're saying TRUST them again? California will soon be in receivership for its profligate ways, lets give all taxes to Medical Research for Cancer using cannabis. Democrat Politicians have not helped in the least with Prop 215, they fought it but now want 75% of the profits from it. They are just like the Communists or Venezuela where there is no toilet paper except for the elitists and no water for anyone.



25%? Bro, have you seen the receipts coming out of Colorado? Closer to 40% tax...
 

MileHighGlass

Senior Member
How many people in California are going to keep crying about new laws?

The free ride is over. Get over it. 99% of you will have to find a job because you won't have the money to be in a "legal" regulated business.

Then some of that 99% won't be employable in the marijuana industry because of felonies, child support, taxes, etc...

It's been coming for so long, and people keep acting surprised. Look at Colorado to get a glimpse of your future. Growing on a large scale without the proper licensing will be gone. Most of the growers you know now will be criminals once it passes. You will have to move shit indoors to evade detection.

Ironically, "legalized" marijuana makes growing your own on any kind of scale "illegal".

Carbon filters, don't talk to anyone about your shit, and don't be flashy with your cars, jewelry, etc... Welcome to "legalized" cannabis. It sucks giant balls. :)
 

iBogart

Active member
Veteran
Legalize it and let the market decide the price.

If it's taxed to heavily, then a black market will dominate. More people will grow their own 6 plants legally. Eventually, the market price will adjust to compete. Oversupply will bring the price down too, which will probably happen.

jumpin/jack is straight tripp'n on the political end. Whatever.

AUMA's all good with these eyes. I say legalize!
 

CoCoSativas

Active member
Legalization sucks here in Canada um looking down the barrel of that gun too. Fuck it I might just grow my own and say too bad for everyone else least Ill save a ton of money. Plus I have 4 lights I like to run anywhere from 1 to 4 lights so I don't need to yield large at all hell 4 lights to sully my wife and myself really could run 2 grows a year aND would have tons extra

Good luck to you guys. The way one guy explained it didn't sound so bad. It depends on your legislation ours looks like they want only bigwarehouse grows run by big bi. Fuck I'll always grow my own
 

stoned-trout

if it smells like fish
Veteran
I would rather it stays like it is,,then any new proposed bullshit.....but hey I don't mind being illegal if prices rise...and with all them hands out for a cut its gonna be expensive....and don't think once its legal they wont change the game to suit their needs and generate more taxes...look at what they are doing to medical now...banning any kind of growing in some places...just wait till they start making tax money bigtime....yeehaw..THERES GOING TO BE A HUGE AMOUNT OF MARIJUANA ENFORCEMENT LIKE NEVER SEEN BEFORE...are you prepared????????????????
 

iBogart

Active member
Veteran
I would rather it stays like it is,,then any new proposed bullshit.....but hey I don't mind being illegal if prices rise...and with all them hands out for a cut its gonna be expensive....and don't think once its legal they wont change the game to suit their needs and generate more taxes...look at what they are doing to medical now...banning any kind of growing in some places...just wait till they start making tax money bigtime....yeehaw..THERES GOING TO BE A HUGE AMOUNT OF MARIJUANA ENFORCEMENT LIKE NEVER SEEN BEFORE...are you prepared????????????????

What are you talking about? 6 plants big as you like. You keep whatever that amounts to. 1 ounce on your person in public. You can give, trade, share.

Legalize it.
 

stoned-trout

if it smells like fish
Veteran
ya and everyone was supposed to have the right to grow their own right now....and slowly places are banning it...nope I aint buying it..i know better ...yeehaw..we need to fight for what we are already loosing ..once the cat is out of the bag and their raking in gazillions of tax dollars things will get ugly....just say no...
 

MileHighGlass

Senior Member
What are you talking about? 6 plants big as you like. You keep whatever that amounts to. 1 ounce on your person in public. You can give, trade, share.

Legalize it.

What about moms, dads, clones, etc...? These laws are setup for you to "have" to go to a dispensary and buy clones. More money for them. Don't be fooled, every single law passed from here on out will be to benefit the dispensaries. We see it every single day here in colorado.

They don't want competition from home growers because the home growers quality is typically way above theirs.
 

FoothillFarming

Active member
Am I the only one that thinks without Steve our industry would be underground? No canna cups, no grows period. I personally look to him as a hero in our industry, just because he is making money doesn't make him a bad guy?

I am getting hooked up with a clean green certification so I can try to work with Harborside even more in the future. If things do go legal, Steve is going to lead the way. Get in while you can people. Sitting back and hating will get you nowhere.
 

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