Nov 2, 2012 | Collective Operations
Summary
In this article we discuss the different options for California medical marijuana entities. Clarity will be provided on the differences between non-profits, not-for-profits and 501c3 organizations.
California MMJ Collectives/Dispensaries – Non Profits, Not-For-Profits, and 501(C)3 Organizations
Look around you will find a number of different entities providing medical marijuana in California. Most people don’t know the difference between the various “non-profit” entities. Non Profit and Not-for Profit can basically be used interchangeably, the real differences arise when an organization receives tax-exempt status. When most people think “non-profits” they are referring to 501(c)3 tax exempt organizations. These entities are funded primarily with charitable contributions. For example, the operations of the American Cancer Society, Operation Smile or the Red Cross are paid through contributions. 501(c)3 organizations are tax-exempt, nonprofit corporation or associations that meet specific guidelines and are granted exemption with the IRS. There are other tax exempt organizations recognized by the IRS but 501(c)3 is the most common. There is no legal distinction between non-profit and not-for-profit; both can qualify as a tax exempt organization under the US Tax Code. Another difference between tax-exempt and non tax-exempt is their business models and sources of operating funds.
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Sep 1, 2012 | Collective Operations
Earlier this year the California court of appeals over turned the conviction of William Frank Colvin (People v. Colvin), which was a landmark case for MMJ Collectives. This appeal case basically made it clear that collective members Do Not have to physically work or donate time to “collective” operations. So just paying for medicine (as 99% of members do) is okay with the courts.
With regards to the original conviction the appeals court wrote
[The Attorney General does not specify how many members must participate or in what way or ways they must do so, except to imply that Holistic, with its 5,000 members and 14 growers, is simply too big to allow any “meaningful” participation in the cooperative process; hence, it cannot be a “cooperative” or a “collective” in the way section 11362.775 intended. But this interpretation of section 11362.775 would impose on medical marijuana cooperatives requirements not imposed on other cooperatives. A grocery cooperative, for example, may have members who grow and sell the food and run a store out of which the cooperative’s products are sold. But not everyone who pays a fee to become a member participates in the cooperative other than to shop at it.]
However, given the not-for-profit nature of this business; we still feel it is a good idea to have willing and able members (periodically) volunteer for various collective duties.
May 22, 2012 | Collective Operations
Medical marijuana is valuable and sought after item. A dispensary needs solid procedures in place to assure that its medicine isn’t being stolen. This will demand repeated physical counts of the products on hand and also accurate collection/accounting of sales. Preferably the dispensary’s point-of-sales program (POS) will track the dispensary’s inventory. You’ll need the ability to know what the present inventory available is at any particular time. A deviation report (POS count vs. actual) is your best way to identify problems. In case your greenroom/sales register employee switches shifts mid-day, you’ll choose to cross verify by performing a count then as well. You may encounter an instance exactly where one strain of medical marijuana is a few grams short but a different strain is a few grams over (but overall totals balance). This would reveal that the incorrect product was run through the POS system. You have to be far more concerned with the overall variance total (which combines all the various strains).The variance report is a superb process to have in place and will deter personnel from trying to steal.
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May 22, 2012 | Collective Operations
Encounters with Law Enforcement
The laws and attitudes toward the cannabis plant are ever changing. Currently, in California simple possession of marijuana is an infraction. Still, there are people who will be unfortunate enough to have an unpleasant contact with . From experience here are some suggestions. First off, always be polite. DO NOT GET BELIGERANT. It’s one thing to discuss your rights as an American citizen, and it’s another thing when you act aggressively toward law enforcement. Usually there are three stages to the typical encounter, the first stage is questioning, the second is detained, and the third is arrest. (more…)
May 10, 2012 | Collective Operations
FAQs
Why should I buy your guidebook? This is the most comprehensive book on the market. This book provides information on all aspects of opening a medical marijuana collective/dispensary and starting a legal medical marijuana grow – it is also priced extremely low given the quality of the material.
Aren’t there other books like this? No. The other books are written solely by lawyers or former dispensary owners. This book combines the expertise of medical marijuana owners, medical marijuana experts, and lawyers. This book also provides specific details on how to operate a successful Collective or grow in California. A lot of the other books are standardized with very little state specific information.
Will this book keep me out of jail? Hopefully, but you should understand that there is an underlying level or risk in this business that is beyond your control. You need to be able to accept the fact that anyone growing or possessing large quantities marijuana is at risk.
My City has banned dispensaries, can I still open? It’s probably best you open a discreet medical marijuana delivery service rather than a storefront dispensary. The regulation and legality of delivery services is still being determined but it is likely unconstitutional to ban these entities.
Aren’t the laws still changing? The core laws aren’t changing but the local laws are constantly changing. Any major changes will be available on our website and we encourage you to join our mailing list.
May 10, 2012 | Collective Operations, Proposed MMJ Law Changes
Per the California Attorney General’s Guidelines:
“Under California law, medical marijuana patients and primary caregivers may “associate within the State of California in order collectively or cooperatively to cultivate marijuana for medical purposes.” (§ 11362.775.) The following guidelines are meant to apply to qualified patients and primary caregivers who come together in order to collectively or cooperatively cultivate (physician-recommended) marijuana/cannabis.
Business Forms: Any group that is (a.) collectively or (B.) cooperatively cultivating and distributing marijuana 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’s general guidelines were developed to help cooperatives and collectives operate within the law, and to help law enforcement determine whether they are doing so. (more…)
