California was the first state to legalize medical marijuana. However, recreational use of marijuana is still illegal. The medical marijuana programme was first passed by the California state as Proposition 215 in 1996 and as a Senate bill 420 in 2003. Prop.215 also known as the Compassionate Use Act allowed people with Cancer, AIDS and other chronic illnesses to grow or obtain marijuana for medical purposes when recommended by a doctor. This was voted into action with a 55% majority.
The Medical Marijuana Protection Act or SB 420 signed into existence by Governer Gray Davis intents to establish an identification card system for medical marijuana patients. Currently Medical Marijuana users in California with a valid Doctors recommendation may grow and possess as much marijuana as they require, provided it is strictly for personal use.
People who use marijuana for recreational purposes are breaking California law but the degree has been downgraded as an infraction if one carries up to one ounce similar to a traffic violation with $100 as fine.
There is nothing in the federal legislature that gives license to people to open dispensaries, transport and sell marijuana. Under state law MMP gives the right to form marijuana cooperatives or collectives, they may be perceived as illegal under federal drug laws as marijuana is still in the narcotic list.
So opening a dispensary will lift a few federal eye brows. The U.S. Attorney General, Eric Holder, in 2009 released a statement that the office would not prosecute the cooperatives or dispensaries that are compliant with the state law. However, the Feds continued to harrase MMJ providers.
So how do you open a dispensary?
First educate yourself and consult with an attorney that deals with marijuana. Collectives have specific guideline they need to follow in order to comply with state law. Strict record keeping is a must.
California dispensaries need to be not-for-profit organizations. Individuals working at dispensary can make a “reasonable wage” and be reimbursed for any out of pocket expenses.
Medical marijuana transactions are subject to sales tax (BOE) and obtaining a sellers permit is a must. Additionally you may also be required to obtain a business license depending upon the city or county you wish to open.
You should have an application process where new members or primary care givers complete details of the recommending physicians name and contact information. The members of the collective should sign a contract agreeing not to distribute or use marijuana for anything other than medicinal purposes.
According to the California MMP act, a patient or caregiver may grow, possess or distribute 8 ounce of dried marijuana, 6 mature and 12 immature plants. If a caretaker has more than one patient, he/she may grow, possess or transport only that much amount needed for each patient.
Lastly you want to make your shop as neighborhood-friendly as possible. Neighborhood complaints are one of the main causes for police raids.
Per a survey run by the public policy institute of California in March 2015, 53% of Californians feel that marijuana should be legal.
The future is looking brighter as a “California Responsible Use Act” initiative is approved as a contender for November 8, 2016 ballot as an initiated state statute. It hopes to legalize marijuana possession, production, cultivation, transportation, manufacture, processing, and sale under state law. It establishes procedures for reconsidering those convicted of marijuana offences and imposes an excise tax of $8 per ounce of dried, $.20 for infusion products and $1 per gram of concentrated marijuana.