Strict guidelines exist in the establishment and operation of a storefront facility — also known as dispensaries or cannabis clubs — specializing in the sale of medical marijuana. Consulting an attorney and taking the proper steps can help you avoid legal trouble. The lawyers at the Law Offices of Valencia, Ippolito & Bowman combine experience in their private practice of drug crimes with backgrounds as prosecutors.
Their insight can be invaluable as the laws regarding sales of medical marijuana are complex, evolving and ever-changing. Various city and county ordinances exist to regulate facilities, with the possibility of statewide regulations in the future.
Our law firm has won numerous awards, including being named Criminal Defense Firm of the Year by San Jose Magazine.
The Americans for Safe Access (ASA) serves as the largest national member-based organization of patients, medical professionals, scientists and concerned citizens that promote safe and legal access to cannabis for therapeutic uses and research. The organization strongly recommends acquiring legal representation before opening a collective or cooperative.
California Health and Safety Code 11362.775 authorizes patients and caregivers to collectively or cooperatively cultivate medical marijuana. Cooperatives are specified and organized under California Corporations Code Sections 12201 and 12300. These statutory entities must elect a board of directors and report financial contributions from members. The attorney general describes medical cannabis collectives as organizations facilitating the collaborative efforts of patents and caregiver members. That includes allocation of costs and revenues.
California Health and Safety Code Section 11362.765(a) coupled with the attorney general's guidelines does not authorize profits from sales or distribution. While not required and to comply with the attorney general, operators may choose to organize as a California non-profit corporation. Reasonable wages are acceptable, but not required. Excessive profits should not take the form of bonuses or other spending. In addition, the Internal Revenue Service will not recognize the operation as a tax-exempt activity.
Sales are also subject to sales tax. However, collectives and cooperatives can only be reimbursed via the following:
- Providing medication to members for free
- Members trading labor for medication
- Members can pay the collective to cover medicine and overhead costs
- A combination of the above three
Free Consultation With a San Jose Medical Marijuana Attorney
Call our law firm at 877-7NO-JAIL or send us an e-mail. We offer payment plans, credit card payments and evening or weekend consultations. Se habla español.
