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[as-accordion-item title=”1. Create a (not-for-profit) business plan or outline of what you want to accomplish”]
- Determine your goals and specific features that will help you accomplish them
- Decide between a storefront dispensary or mobile MMJ delivery service (or combination of the two)
- Find a mentor to help make a game plan and can help you along the way
- Partner with qualified trustworthy individuals
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[as-accordion-item title=”2. Read and understand CA MMJ Laws and local regulations”]
- Senate Bill 215 or The Compassionate Use Act of 1996
- California Proposition 420 – The Medical Marijuana Program Act
- 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”]
- Many cities/counties add their own unique laws with regard to medical marijuana “business”
- A list of California local regulations
http://www.safeaccessnow.org/california_local_regulations - Some cities have banned MMJ dispensaries
- 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.”]
- 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.
- 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.
- 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.”]
- 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.
- 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”]
- 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.
- Senate Bill 420 authorized patient “cooperatives” or “collectives” to grow, distribute and/or sell medical marijuana on a non-profit basis to their members.
- From the less involved articles of association to incorporating as a Mutual Benefit not-for-profit corporation.
- Cooperative or “co-ops”
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[as-accordion-item title=”7. Obtain a Sellers Permit from the Board of Equalization (BOE)”]
- 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”]
- Use professional, adult focused, advertising methods
- Use discretion based on your location
- Seek word of mouth referrals
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[as-accordion-item title=”9. Get patients/members to join your organization”]
- Verify that members are eligible under CA law to use medical marijuana/ join a Collective
- Are they a California Resident
- Do they have a current Doctor’s Recommendation
- Verify CA ID matches the name on the recommendation
- Call the doctors office to verify the recommendation is valid
- Have individuals sign a Collective Membership Agreement
- Identify the current state and local laws the individual must follow along with additional guidelines set up by the organization
- 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.
- Make sure individuals understand the agreement they are signing and what is expected of them.
- Make it clear that they can be removed from the organization for violating its policies.
- 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.”]
- 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.
- 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.
- 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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