May 23, 2014 | Collective Operations
If I offered you a McDonald’s franchise in the Indian state of Punjab with venture capital lined up, would you take it? It has 152 million residents which is a boat load of customers… There is only one problem. The people are mainly Hindus and they do not take kindly to slaughtering cows or eating meat. I mention this to illustrate the point that while a market may contain a gap, this does not necessarily mean that there is money in that gap.
Medical marijuana law in California is so disorganized a Huntington Beach pot party might have dreamed it up. I’ll summarize the basics in case you are new to the game. If not, you can skip past the bullets to the meaty stuff.
– Back in 1996, California passed Proposition 215 that allowed marijuana patients to grow their own, provided it was just for them and a doctor recommended it. That right extended to the person looking after them aka their primary caregiver. The system was as leaky as a colander.
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Nov 17, 2013 | Collective Operations
When starting a medical marijuana dispensary the bylaws must be properly written reflecting the current laws of the state and a core team must be gathered. Management, employees and collective members must follow the bylaws – just having the proper documentation is only one piece of the puzzle. It is very important that the right people are hired to manage and work in the medical marijuana collective in order for it to thrive.
When the concept to start a marijuana dispensary (or delivery) is conceived documentation and formalities must be completed which will set the tone and foundation for the organization. it is very important that the right kind of people are hired as part of the medical marijuana collective team to abide by the grey California marijuana laws. The two most important qualities of the collective staff are honesty and reliability. Since the collective deals with a lot of cash and controlled valuable medicine the employees need to be trust worthy. The medical marijuana collective should still have safeguards in place and double checks to ensure the money and medicine are maintained at proper levels. This will not only help defer any fraudulent activities but will also help with human accounting errors.
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Oct 21, 2013 | Collective Operations
Due to constraints of the various cities, some medical marijuana patients don’t have access to storefronts but must rely solely only delivery of medicine through a marijuana delivery service. In California these are typically created through a (not-for-profit) Collective entity or the less structured Unincorporated Association. Regardless of how the medical marijuana delivery is formal organized, it still needs to follow the same California Medical marijuana guidelines (similar to storefronts) – this would include a formal membership agreement, verifying patient’s doctor’s recommendations, keeping detailed business expense records, etc.
Depending on the location and the local laws that apply, due to city bans and moratoriums, a medical marijuana delivery service might be the only way to operate. The laws on delivery-style collectives are less defined than those for traditional storefronts; in fact, more and more delivery services are popping up as more cities are banning medical marijuana storefronts. Below is a list of pros and cons of a delivery-style collective compared to a traditional storefront model.
Pros of a Medical Marijuana Delivery Service:
– Low start-up fees
– Lower overhead
– Fewer regulations, less bureaucracy
– Less attention from law enforcement
– Flexible schedule
– More nimble operations
– Can be discreet
– Some patients are immobile (don’t have or can’t operate vehicles)
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Mar 3, 2013 | Collective Operations
What is required when a individual (or group) decides to start a California medical marijuana collective?
In August of 2008 California Attorney General Jerry Brown published medical marijuana “guidelines” for qualified medical marijuana patients, providers and state law enforcement. The state of California medical marijuana laws (or recommendations) provided in these guidelines is the foundation for how to properly operate a marijuana collective and/or dispensary. The California medical marijuana guidelines emphases the importance of doctor’s medical marijuana recommendation, verification of identification and filing of the relevant documentation as per the laws. Unfortunately, these guidelines are not binding in court, but they do provide a foundation for law enforcement, district attorneys and judges.
Marijuana Collective Membership Agreement
A membership agreement, is required to abide by the collective California medical marijuana laws – it is a contract between the medical marijuana patient and the collective or co-op. This membership agreement is a patient’s commitment to abide by all the requirements laid out in the bylaws of the collective.
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Jan 15, 2013 | Collective Operations
This article explains the core requirements of a Collective model and the compensation for growers. It gives a brief of how the growers should be compensated for their contribution.
The state allows “collective” growing medical marijuana in California, but can a so called seriously ill or handicapped person run a garden? Unfortunately some people are not physically capable to grow medical marijuana. Members’ “contributions” will mainly be in the form of money, but the collective should allow members to contribute and volunteer in various ways. A mixed group of people from various professions was a good recommendation for a group.
The change happened – Collective members don’t have to participate in the “growing”
Until early 2012 California district attorneys were prosecuting collectives that only had a small percentage of members assisting with the growing of marijuana. Luckily, in February of 2012 Los Angeles’ 2nd District of Appeals overruled a landmark case (The People v. Colvin). This decision rejected this notion that the California DA’s were using. The
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Jan 8, 2013 | Collective Operations
What are your goals?
It is always a good idea to have a written plan that outlines the ideas and goals about where you plan to start a marijuana dispensary /collective and a more detailed version for the city or other outside parties depending on what route you intend to take. This activity requires a lot of brainstorming in order to create a mission statement for the organization.
Per the California Attorney General’s Guidelines:
Business Forms: Any group that is (a) collectively or (b) cooperatively growing medical marijuana in California and distributing it for medical purposes should be organized and operated in a manner that ensures the security of the crop and safeguards against diversion for non-medical purposes.”
The attorney general’s guidelines were developed to help cooperatives and collectives operate within the law, and to help law enforcement determine whether they are doing so.
Kinds of Non-profit organizations:
A legal marijuana dispensary by law should be a non-profit organization. It could be one of the following types:
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