How to create a collective in California

[richyrich]

Consulting an attorney is your best bet but attorneys have different opinions of prop 215 and how to interpret it so I think there's not just one exact correct way to start a collective and they do not have to be incorporated. Co-ops on the other hand do have to be incorporated according to the a.t. guidelines.

IMO, most of these MMJ attorneys are land sharks. Not to dissuade anyone from consulting an attorney, but well reasoned and good info to make one's decisions can be found by anyone willing to read the many discussions from everyone here on this site.

 

[the_man]

what are some of your guy's thoughts on this good or bad


MEDICAL MARIJUANA, INC.'S TURNKEY COLLECTIVE SOLUTION

Medical Marijuana, Inc.'s Turnkey Collective Solution ensures that collectives operate within the guidelines of all laws and regulations regarding the tracking of the marijuana from grow cycle to final distribution. By employing Medical Marijuana, Inc.'s closed loop tracking system, it can be shown to authorities and collectives alike that the source of their supply was an active member of the collective. Medical Marijuana, Inc.'s Regulatory Module provides officials with a comprehensive reporting tool that allows them to remotely audit the industry in real time to ensure regulations are being properly followed. This audit function can be performed online and remotely from the regulators desktop anywhere in the world, making the process more efficient and cost effective for governments to monitor and regulate the industry. Medical Marijuana, Inc. believes that tools to regulate the industry and collect tax revenue are necessary to gain nationwide acceptance and legalization of medical marijuana. Further, Medical Marijuana's Tax Remittance Platform could not only cost-effectively implement the necessary infrastructure to collect on every sale made within city limits by licensed collectives and collect those taxes on a daily basis, but eliminate the cash problem by using a tax remittance, credit, debit, or proprietary card. The POS system automatically recognizes the collective's tax ID number, state and local tax rates and then provides Automated Clearing House settlement of the taxes and routes the amount to the City's appointed financial institution. Taxes can be collected on a daily basis, providing an economic windfall for the city of Los Angeles and any other municipality recognizing the advantages of this model.

 

[richyrich]

what are some of your guy's thoughts on this good or bad


MEDICAL MARIJUANA, INC.'S TURNKEY COLLECTIVE SOLUTION

Medical Marijuana, Inc.'s Turnkey Collective Solution ensures that collectives operate within the guidelines of all laws and regulations regarding the tracking of the marijuana from grow cycle to final distribution. By employing Medical Marijuana, Inc.'s closed loop tracking system, it can be shown to authorities and collectives alike that the source of their supply was an active member of the collective. Medical Marijuana, Inc.'s Regulatory Module provides officials with a comprehensive reporting tool that allows them to remotely audit the industry in real time to ensure regulations are being properly followed. This audit function can be performed online and remotely from the regulators desktop anywhere in the world, making the process more efficient and cost effective for governments to monitor and regulate the industry. Medical Marijuana, Inc. believes that tools to regulate the industry and collect tax revenue are necessary to gain nationwide acceptance and legalization of medical marijuana. Further, Medical Marijuana's Tax Remittance Platform could not only cost-effectively implement the necessary infrastructure to collect on every sale made within city limits by licensed collectives and collect those taxes on a daily basis, but eliminate the cash problem by using a tax remittance, credit, debit, or proprietary card. The POS system automatically recognizes the collective's tax ID number, state and local tax rates and then provides Automated Clearing House settlement of the taxes and routes the amount to the City's appointed financial institution. Taxes can be collected on a daily basis, providing an economic windfall for the city of Los Angeles and any other municipality recognizing the advantages of this model.

A collective -- a group of persons growing collectively for a common purpose -- need not pay tax; because ideally no $ would be changing hands. Only reasonable compensations for supplies and etc.. Sounds good on face, but seems like someone trying to make a business niche.

 

[zenoonez]

Why does everyone specify that no money changed hands? I thought that members could participate in a collective by donating their time, resources in the form of equipment, or by monetary means?

 

[richyrich]

Why does everyone specify that no money changed hands? I thought that members could participate in a collective by donating their time, resources in the form of equipment, or by monetary means?

They can, I was just speaking idealistic. At this time, $ changing hands is what the LEOs hate, even though it is legal to a point. For the persons unable to participate by means of labor -- such as the severely disabled -- they can provide by monetary means for supplies (overhead, etc.). Thinking idealistically again, I would provide as many possible in that form with free meds from the collective harvest or as cheaply as possible as their form of reasonable compensation.

I posted this above regarding collective structures.

While they are able to earn a profit, more accurately called a surplus, such earnings must be retained by the organization for its future provision of programs and services. Earnings may not benefit individuals or stake-holders.[2] Nonprofit organizations may put substantial funds into hiring leadership and management personnel.

This would mean $$$ changing hands. ^^^

 

[richyrich]

Props to the thread starter. I would like to see this thread be productive on the ways that persons could provide for patients in the collective structure and stay legally sound. I believe even blue dot would approve. I will put forth all that I know in an effort to help.

 

[the_man]

OK then so the problems with collectives in Cali is there is too much money changing hands and not enough members providing labor and supplies at some collectives? Which in turn is causing the legal problems ?

 

[richyrich]

OK then so the problems with collectives in Cali is there is too much money changing hands and not enough members providing labor and supplies at some collectives? Which in turn is causing the legal problems ?

Could look like problems depending on perspective. IMO most dispensaries have run like this and when they convert will mainly run the same way. Their guidance is what I posted above. Go back up to my post #16.

They will need to adopt to this structure.

A board-only organization typically has a self-selected board, and a membership whose powers are limited to those delegated to it by the board.

 

[GilligansIsle]

As I understand it money can change hands and those transactions for Medical Cannabis are taxable.

I think the rub lies in the AG's guidelines which read:

Guidelines for the Lawful Operation of a Cooperative or Collective: Collectives and cooperatives should be organized with sufficient structure to ensure security, non-diversion of marijuana to illicit markets, and compliance with all state and local laws. The following are some suggested guidelines and practices for operating collective growing operations to help ensure lawful operation.

1. Non-Profit Operation: Nothing in Proposition 215 or the MMP authorizes collectives, cooperatives, or individuals to profit from the sale or distribution of marijuana. (See, e.g., § 11362.765(a) [“nothing in this section shall authorize . . . any individual or group to cultivate or distribute marijuana for profit”].
....
6. Permissible Reimbursements and Allocations: Marijuana grown at a
collective or cooperative for medical purposes may be:
a) Provided free to qualified patients and primary caregivers who are
members of the collective or cooperative;
b) Provided in exchange for services rendered to the entity;
c) Allocated based on fees that are reasonably calculated to cover
overhead costs and operating expenses; or
d) Any combination of the above.

As I understand this the cannabis should be provided to the members at no more than the cost of production and distribution. If this is correct, regardless of the form of the organization or individual if a sale is made for more than the cost of production and distribution then there are no protections.

Am I just thick?

 

[ourcee]

I want to look at quality marijuana being grown to provide mmj patients with low-cost, quality.

How far will patients drive for half-price marijuana?

half price of what? 400 a z? 350? 200?

its all relative to the demands.

if you have high quality and at <$250 an ounce you will have people driving from all over the state. You will sell out on a daily basis.

 

[Moldy Dreads]

Wouldn't getting a lawyer to draft your rules and agreement a better option than risking your own verbage on the docs? Also have a lawyer or two ready if you need them? thoughts..

 

[Lazyman]

A trusted (large scale) grower friend consulted a lawyer, and he told him that the only thing a collective needs is the scrips posted on the door, but he also told him that $2500 retainer and he'll walk no matter what, never any jail time, even if he goes over his numbers. I'm still planning on consulting an attorney for the same thing next month but I figured I'd throw in any info I had on the suibject.

Oh, and FF, thanks for reposting this! I knew I had seen a post like this before but couldn't find it.

 

[ourcee]

A trusted (large scale) grower friend consulted a lawyer, and he told him that the only thing a collective needs is the scrips posted on the door, but he also told him that $2500 retainer and he'll walk no matter what, never any jail time, even if he goes over his numbers. I'm still planning on consulting an attorney for the same thing next month but I figured I'd throw in any info I had on the suibject.

Oh, and FF, thanks for reposting this! I knew I had seen a post like this before but couldn't find it.

this lawyer guy lookin for more work?

 

[medmaker420]

Why not just sign up at a few places and see what all they ask you to fill out and take notes.... check out the sites, the printable waivers and collective agreements. Odds are they were cookie cuts from those "cannabis college" style of get rich quick sites and seminars.

Wouldn't getting a lawyer to draft your rules and agreement a better option than risking your own verbage on the docs? Also have a lawyer or two ready if you need them? thoughts..

 

[Lazyman]

this lawyer guy lookin for more work?

I'll get his info next weekend and talk to the guy, if he wants me to post it I better get a free consult lol

 

[SantaCruzMtns]

Guns??

Guns??

I've always wondered why guns would be an issue as long as they're legally owned?

I don't think anybody can do anything about guns that are legal and registered to you. I don't remember signing away any of my constitutional rights when I got my recommendation from my doctor

 

[SeniorBuzz]

I would want to calculate how much product can be produced, on average, per day, under ideal grow conditions, for a given indoor area, to properly size the warehouse needed, allowing for expansion, and phasing in additional grows/patients.

 

[SeniorBuzz]

My goal. our goal, is to create the model grow dispensary.

Price to patients, comes first, before we benefit. It is my belief, that operating with a core of impassioned employees, doing what they love, the rewards are bound to follow.

 

[kmk420kali]

It always struck me odd...that you can have to pay taxes on something you cannot make money on--

 

[Blue Dot]

I don't think anybody can do anything about guns that are legal and registered to you. I don't remember signing away any of my constitutional rights when I got my recommendation from my doctor

The day you became a citizen of the USA, whether born a citizen or became one is the day you entered into an argement with the federal government that you wouldn't have any guns when ILLEGAL drugs were present. That's a law they made and you agreed to oblige defacto and the rec from your doc doesn't invalidate that agreement because your docs rec is for STATE law, not federal law because it's not a federal perscription. If it was a federal perscription you could have pot AND oxycontin AND guns.