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FAQ

Find some frequently asked questions below.

 

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Q: If a collective is supposed to be not-for-profit, how do I get paid for any services provided?

A: Although incorporated as a non-profit, each director, manager, or employee who works for the collective is allowed to earn a salary or hourly wage. Also, a collective is allowed to reimburse its members for individual contributions to the collective. These reimbursements can either be in money, or in medicine.

 

 

Q: What is the law on marijuana in California?

A: California provides an affirmative defense for medical marijuana patients charged with certain felony drug charges, including sales, transportation and cultivation. But in order for this to defense to apply, a medical marijuana patient or business must comply with State laws governing medical marijuana. Namely, that only qualified patients with doctor's recommendations for the use of cannabis can cultivate, posses or sell and distribute medical marijuana. Also, that any collective that engages in cultivation and distribution of cannabis do so as a non-profit corporation that provides only reimbursements for member contributions.

 

 

Q: What are the new state rules regarding marijuana?

A: The Medical Marijuana Regulation and Safety Act (AB 266) is recent legislation designed to overhaul the California cannabis industry. The MMRSA creates a Bureau of Medical Marijuana Regulation under the California Department of Consumer Affairs to establish a comprehensive licensing system. The MMRSA also delegates power to the Department of Food and Agriculture to oversee cultivation, the Department of Public Health to develop standards for the production, testing and labeling of Edibles, and the Department of Pesticides and Fish and Wildlife to govern pesticides and water quality.

One major impact of the MMRSA is that it does away with the non-profit requirement. Once the legislation begins to take effect (starting in 2017) cannabis collectives can now organize as for-profit corporate entities.

 

 

Q: What will the new licensing system look like?

A: For State licenses, there will be 17 licensing groups: 10 licensing groups for cultivation; two for manufacturing; two for dispensary sales; one for transportation; one for testing; and one for distribution. Yet, a requirement for obtaining a state license is a local city or county license. The MMRSA grants cities and counties a period of time to develop there respective licensing systems; however, under the MMRSA individual citiesor counties can outright ban cannabis-related if they so choose.

 

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