How to Start a Medical Marijuana Dispensary

How to Start a Medical Marijuana Dispensary

Aug 11, 2015 | Marijuana Legalization

[as-accordion autoclose=”false” openfirst=”false” clicktoclose=”true” tag=”h4″]
[as-accordion-item title=”1. Create a (not-for-profit) business plan or outline of what you want to accomplish”]

  1. Determine your goals and specific features that will help you accomplish them
  2. Decide between a storefront dispensary or mobile MMJ delivery service (or combination of the two)
  3. Find a mentor to help make a game plan and can help you along the way
  4. Partner with qualified trustworthy individuals

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[as-accordion-item title=”2. Read and understand CA MMJ Laws and local regulations”]

  1. Senate Bill 215 or The Compassionate Use Act of 1996
  2. California Proposition 420 – The Medical Marijuana Program Act
  3. 2008 California Attorney General’s Guidelines for “The Security and Non-Diversion of Marijuana Grown for Medical Use”

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[as-accordion-item title=”3. Determine where you will operate”]

  1. Many cities/counties add their own unique laws with regard to medical marijuana “business”
  2. A list of California local regulations
    http://www.safeaccessnow.org/california_local_regulations
  3. Some cities have banned MMJ dispensaries
  4. You will have to weigh the pros and cons of working in an area with a lot of competition (as there are a number of MMJ dispensaries or delivery services) versus venturing into an area where the politics are less accepting.

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[as-accordion-item title=”4. Obtain your doctors recommendation to use medical marijuana.”]

  1. Under Prop 215 individuals may use marijuana to treat “cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine headaches , or any other illness for which marijuana provides relief.” It is the last one that allows doctors almost unlimited possibilities to prescribe this herb.
  2. A doctor’s recommendation to use MMJ exempts qualified patients from criminal liability for possessing or cultivating marijuana when these conducted pursuant to the recommendation.
  3. Doctor’s recommendations typically need to be updated annually

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[as-accordion-item title=”5. Speak with a qualified MMJ attorney in the local area that you will be operating.”]

  1. As you have likely found through your research, there is more than one way to operate a legally under CA law. Ask the attorney how they would start a medical marijuana dispensary. The local law enforcement might have their opinions on how a “legal” operation should be set up. Do whatever you can to become compliant in their eyes. This is where a respected MMJ attorney is worth every penny.
  2. If nothing else have an attorney’s name and number that you will call in case of emergency. You don’t want to be scrambling to find someone in the heat of the moment.

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[as-accordion-item title=”6. Determine what entity will best suit your plan”]

  1. There isn’t one right answer for how to set up your MMJ entity. It is required that the entity function as a “not-for-profit” similar to how typical non-profit entities operate.
  2. Senate Bill 420 authorized patient “cooperatives” or “collectives” to grow, distribute and/or sell medical marijuana on a non-profit basis to their members.
  3. From the less involved articles of association to incorporating as a Mutual Benefit not-for-profit corporation.
  4. Cooperative or “co-ops”

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[as-accordion-item title=”7. Obtain a Sellers Permit from the Board of Equalization (BOE)”]

  1. Unfortunately medical marijuana is taxable and the CA BOE issued a memo regarding this matter. It is just not worth trying to take an alternative approach on this one. At the current base rate of 7.5% you don’t want to be playing catch up or get hit with a bill for back owed tax. This could be detrimental to the organization and you in general

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[as-accordion-item title=”8. Seek like minded members of for your organization”]

  1. Use professional, adult focused, advertising methods
  2. Use discretion based on your location
  3. Seek word of mouth referrals

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[as-accordion-item title=”9. Get patients/members to join your organization”]

  1. Verify that members are eligible under CA law to use medical marijuana/ join a Collective
    1. Are they a California Resident
    2. Do they have a current Doctor’s Recommendation
    3. Verify CA ID matches the name on the recommendation
    4. Call the doctors office to verify the recommendation is valid
  2. Have individuals sign a Collective Membership Agreement
    1. Identify the current state and local laws the individual must follow along with additional guidelines set up by the organization
    2. The agreement will ensure that the medical marijuana purchased is for the individuals use and that they will not divert the medicine to others or resell.
  3. Make sure individuals understand the agreement they are signing and what is expected of them.
    1. Make it clear that they can be removed from the organization for violating its policies.
    2. Keep a copy of the members ID, recommendation and signed Collective agreement

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[as-accordion-item title=”10. Keep detailed records of expenses and purchases.”]

  1. MMJ businesses will be looked at with extra scrutiny given the nature of the product and that they deal with a lot of cash. Keep accurate, easy to follow, up to date records. This will help you keep a finger on the pulse of the business and also be prepared for inquiries as they arise from various agencies.
  2. As the founder of the collective you are entitled to reasonable compensation for your time and effort. Keep in mind profits are not allowed. Any earnings left after all expenses have been paid should be returned to the member or used to benefit the group as a whole.
  3. Pay all sales taxes, Employer (EDD) payroll taxes (if applicable), IRS Federal taxes and CA FTB state income taxes

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[as-accordion-item title=’11. Develop a “What if” emergency plan and be prepared.’][/as-accordion-item]
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National Institutes of Health (NIH) should initiate credible research on the medical efficacy of marihuana

Jul 17, 2015 | Marijuana Legalization, MMJ News

The debate on the legalization of marijuana and its medical uses has been a raging topic for quite some time in the U.S. As of now, 23 states in the U.S. have legalized the application of marijuana for medicinal use. Many studies that have been carried out have shown that marijuana can be used in certain circumstances to treat different physical and mental medical conditions but the effect of this medicinal use and its contribution to a cure could very much depend on the specific medical condition.

Broadly speaking, for medical conditions like nausea and vomiting that AIDS patients and cancer patients experience, for nerve pain, multiple sclerosis and general chronic pain, treatment incorporating marijuana has shown substantial promise. With regard to serious illnesses like epilepsy, Crohn’s disease, cancer and Parkinson’s disease, research undertaken has shown that treatment involving medicinal marijuana could be significantly effective. However, the positive contribution of medicinal marijuana is limited for the effective treatment of medical conditions like Alzheimer’s disease, Anxiety disorders, Post-Traumatic Stress Disorders, Weight Loss, Lupus and Glaucoma, based on the research undertaken as of now.

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Oregon Medical Marijuana Battles Offer Lessons for California

May 18, 2015 | Marijuana Legalization, MMJ News

By David Downs

At EastBayExpress.com 

Oregon’s robust medical marijuana industry fended off the first round of post-legalization restrictions this week, but not without an all-hands-on-deck, knock-down, drag-out fight that provides a lesson for California.

Sources report that Oregon Senate Bill 844 to inspect and restrict certain commercial medical collective grows failed to pass committee Monday.

But Oregon’s medical marijuana growers will remain in the crosshairs of both law enforcement and the commercial recreational industry — mainly because medical growers leak tons of pot into the black market. Oregon enjoys the distinction of having the cheapest high quality bud in America, at $204 per ounce, compared to $241 in the Bay Area and $346 in Washington, DC. The national average is $324. While medical patients celebrate the access, officials chafe at the leakage.

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When Will Marijuana Be Legalized Nationwide? Americans’ Surprising Answer

Apr 26, 2015 | Marijuana Legalization, MMJ News

By Sean Williams

At Fool.com

Public opinion suggests that a growing number of Americans would approve of legalizing marijuana. But how long could it take for the U.S. government to actually make sweeping changes to the current marijuana laws? Americans’ answers in this latest poll might surprise you! The marijuana movement is transforming before our eyes, whether you’re for legalization, against it, or are undecided.

Over the past two decades, nearly two dozen states have legalized marijuana for medical use. Meanwhile, four states have legalized the recreational, adult use of marijuana since 2012. Long gone are the days where the idea of legalizing marijuana derived 25% or less support from polling the public. Now, you’ll find nearly overwhelming support for the legalization of medical marijuana, and a slight bias in favor of legalizing recreational marijuana.

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Marijuana enthusiasts seek to capitalize on evolving US pot laws

Mar 5, 2015 | Marijuana Legalization, MMJ News

By Thomas Atkins

At AFP

From aspiring “bud tenders” to research scientists and Wall Street analysts, marijuana enthusiasts of every stripe gathered in Washington looking for ways to capitalize on America’s evolving pot laws.

Billions of dollars could be up for grabs in years to come as states allow medical marijuana or fully decriminalize the drug — even though it remains illegal under federal law.

In a scene unthinkable during the first two decades of America’s long-standing “war on drugs,” dozens of pot industry representatives squeezed into a swish hotel just a few blocks from the United States Capitol.

Several were raising money for cannabis ventures or looking to recruit staff but — aside from some futuristic-looking metal pipes and glass bongs — there was little of the paraphernalia one might ordinarily expect at a cannabis convention.

“It’s a once-in-a-lifetime opportunity, and you kind of need to jump on it now to be ahead of the game,” said Nicklaus Tilford, a Tennessee chef who had just given his resume to a Washington-based medicinal marijuana grower searching for a part-time “junior gardener.”

“It’s either now or never,” he said.

A total of 23 states have now legalized marijuana for medical use. Colorado, Washington state, Alaska, Oregon and the US capital have recently passed laws legalizing it altogether.

A total of 23 states have now legalized marijuana for …

 

A total of 23 states have now legalized marijuana for medical use (AFP Photo/Robert MacPherson)

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Feds Propose Taxing Marijuana, True Cash Crop

Dec 10, 2014 | Marijuana Legalization, MMJ News

By Robert R. Wood

At Forbes

With all the upheaval in Washington, it isn’t likely that federal proposals to tax marijuana will pass anytime soon. Yet as Professor Paul Caron catalogs, economists are looking anew at the proposed Marijuana Tax Equity Act (H.R. 501). It would end the federal prohibition on marijuana and allow it to be taxed. Growers, sellers and users would not to fear violating federal law. But dealing with taxes would be another story.

The bill would impose an excise tax of 50% on cannabis sales and an annual occupational tax on workers in the growing field of legal marijuana. Is that a good trade-off? Federal Proposals to Tax Marijuana: An Economic Analysis by Jane G. Gravelle and Sean Lowry focuses on potential federal marijuana taxes. The authors present justifications for taxes and they estimate levels of tax. They consider possible marijuana tax designs, as well as tax administration and enforcement issues such as labeling and tracking.

Of course, statistics can be deceptive. When Colorado legalized recreational use, it trumpeted the tax revenue it knew would be piling in. There’s a 2.9% sales tax and a 10% marijuana sales tax. Plus, there is a 15% excise tax on the average market rate of retail marijuana. If you add them up, it’s 27.9%.

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