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  • David Bennett posted an article
    The reason why cannabis licenses are limited see more

    The Economics of Scarcity

    The artificial creation of the scarcity of facility licenses increased their value exponentially and created a parallel “license economy” outside of the normal business activity of producing and distributing products and serving customers. Demand outstripped supply of available licenses ten to one. While the normal economic response to scarcity is for the price to go up and the scarce resource is allocated to the buyer willing to pay the most, this was an intentionally created scarcity that the buyers competed for, not by willingness to pay more but by participating in a beauty contest in an idiotic competitive scoring system and 500 page applications.

    348 licenses that were granted immediately became worth millions of dollars each. At least a half a billion dollars in wealth was created out of thin air before the first seed sprouted.

    The scarcity of licenses is a permanent feature of the cannabis market prescribed in Article 14.  With the state having a complete corner on the market for licenses, they control the supply and therefore the price of cannabis products. Businesses must compete for the scarce licenses in whatever manner the department chooses. Every license is in some sense a monopoly and a grant of market share.

    The market conditions created by the scarcity of licenses makes the application process a high risk, high reward endeavor and raises the “bar of entry” too high for most normal businesses. There is no advantage for the patients for there to be a scarcity of licenses and a lack of competition. The scarcity of licenses does nothing to protect the health and safety of society, and in fact, undermines the public confidence in government and the industry by providing opportunities for corruption and patronage politics.

  • Cecil King posted an article
    Don't let this medical marijuana certification scam happen to you! see more

    Keep on the lookout for medical marijuana scams!

    The Better Business Bureau is advising consumers to be cautious working with, a medical marijuana consulting company based out of O'Fallon, Mo.

    The bureau gave an 'F' rating, which is the lowest on the BBB's scale. Several recent unanswered complaints and negative customer reviews led the organization to give the consulting company the rating.

    Consumers have reported to the bureau that failed to file paperwork with the state on their behalf, did not issue refunds when requested to do so, failed to communicate, and provided poor customer service. These customers paid anywhere from $200 to $300 for medical evaluations. Reports to the BBB included medical marijuana patients, caregivers, and home cultivator patients who were all scammed.

    In Missouri, physician certifications are only valid for 30 days, and some consumers reported that their documents expired before paperwork was finished. That meant they had to pay to get another certification to complete the process.

    DHSS and the Missouri Cannabis Industry Association have a few suggestions to avoid Missouri Marijuana Patient certification scams. Remember these guidelines:

    Conduct a Primary Source Verification of the Physician

    Every medical doctor (MD) or osteopath (OD) must be licensed and listed in the Missouri Division of Professional Registration in order to provide you with a Medical Marijuana Certification. Ask the certification provider for the full name and license number of the doctor giving the certification. You can then verify their current license at the Missouri Division of Professional Registration.

    Verify the Medical Marijuana Certification Company

    Your best source for selecting a legitimate company is to ask friends or colleagues who are patient cardholders for a recommendation. Medical marijuana certification companies will usually hire doctors on a contractual basis to conduct patient evaluations. Your doctor may be legitimate, but he or she could just be an employee who gets compensated at a predetermined rate per patient. The certification company handles the payments, marketing, business expenses, HIPPA compliance, patient records security, transaction fees, and a host of other business related tasks where fraud could take place.

    Check with the Better Business Bureau, online medical cannabis groups, or past customers to see if there are any complaints or problems with past evaluations. If something doesn't seem right, it's better to move on to another company for your medical marijuana certification.

    Certification Online

    A medical marijuana certification online or in person should follow specific procedures.

    When your doctor conducts your evaluation, make sure that you are receiving a thorough examination. The doctor should inquire about your medical condition and ask you for detailed information about your condition.

    If your evaluation feels too quick or rushed, then it means that your doctor is probably not complying with the Medical Board’s guidelines. A 5-minute evaluation doesn’t typically represent a legitimate evaluation for a physician’s certification of a patient.

    Contact MCIA for more information.