California’s Cannabis Comeback; Progress for Prop. 64
On Tuesday, November 8, 2016, Californians will have the opportunity to solidify the state’s status as the cannabis capital by voting for Prop. 64 and making California the fifth state to legalize recreational cannabis. Prop. 64, also known as the Adult Use of Marijuana Act, made its way onto the ballot on June 28, 2016. California has unsuccessfully attempted to legalize the adult use of recreational cannabis in the past, but Prop. 64 is a far cry from the state’s previous pot pursuits.
If passed, Prop. 64 would allow adults 21 years and older to possess up to one ounce of marijuana and cultivate up to six plants for personal use. California could collect up to $1 billion annually in taxes within a few years of Prop. 64’s passage. This is due in large part to the excise tax, cultivation tax, sales tax and local taxes Prop. 64 permits. Furthermore, Prop. 64 would amend the sentences for cannabis crimes and reduce the punishment for selling recreational marijuana from up to four years in prison to no more than six months in jail and a potential $500 fine. Finally, to protect California counties whose economies rely on small-farm cannabis cultivation, Prop. 64 mandates that large cultivators cannot be licensed until five years after the Proposition’s passage.
Prop. 64’s impressive regulatory framework is not the only difference in California’s latest legalization efforts. Only 43% of Californians voted in favor of legalizing the adult use of recreational cannabis in 2010. This time around, the latest polls show that more than 60% of the state’s voters support Prop. 64. The Proposition’s powerful proponents include Lt. Gov. Gavin Newson, former Facebook president Sean Parker and the California NAACP. Most notably, this time around, the pro-Prop. 64 movement has raised nearly $7 million dollars. Prop. 64’s opponents have raised no more than $180,000.00.
While California’s cannabis kismet is not yet concrete, it’s clear that Prop. 64’s passage will increase both the regulations and the cannabis cash throughout the state. Consequently, compliance, cash management and electronic payment processing platforms, such as PayQwick, will be integral in ensuring that consumers and businesses can take full advantage of Prop. 64. PayQwick’s compliance assessment programs, which incorporate standards from the Cole Memo, Bank Secrecy Act/Anti Money Laundering Control Act protocols, the FinCEN Guidelines and each state’s marijuana regulations, ensure that marijuana businesses remain completely compliant, and, in turn, help them to get bank accounts. Additionally, PayQwick’s business-to-business electronic payment platform, armored car cash pickup service, and consumer Smartphone App and loadable cards make it easy for businesses and consumers to operate without the hassles and dangers of cash, so that everyone can benefit from the all the cannabis capital has to offer.
