Compliance

Being compliant is an on-going task and requires several things involving both local laws and business operations compliance. Having the business structured properly, knowing your city and county ordinances, having a licensed facility in the county you are currently operating out of, and standardized plans are just a few of the ways to currently be in compliance with the state of California.

There are several groups and associations as well as events that allow for networking for cannabis business operators. Look to your local meet up groups, cannabis events, cannabis associations to being this process.

Currently under the regulations that stand, you will need to set up a “collective” or a non-profit mutual benefit corporation. This will come with a seller’s permit, Tax ID number, articles of incorporation and corporate name. You will then need to file by-laws, corporate minutes, and a board of directors for your company. There are additional things that need to be done from an operational standpoint as well, but this is what is required to “start a business entity” in California.

From a federal standpoint, it is still a federally illegal business. You are not protected from arrest and seizure but can be protected from prosecution. Running an illegal business in regards to local laws can also be a risk – from a local standpoint. There then can be the risk for theft and robbery of either your cash or inventory.  

You will want to first conduct an interview with your potential employees (consider off site of your business) and do a background check as well as references. You will want to see a clean record (no cannabis infractions or business infractions – ie, fraud, theft) and be sure they are over 21 years of age. They will also need a California state medical cannabis card.

There is a set procedure to sign up patients to your collective. You will need membership agreements, patient intake forms, verify their CA ID as well as their CA medical cannabis recommendation. You will also need to verify their cannabis physician that approved their recommendation. With the new laws coming online, there are 2 laws – medical and recreational. Medical will still have a process (we don’t know what that will entail as of yet) and recreational will be for clients 21 years of age or older.

On January 1st, 2018 when recreational cannabis comes online, you will be able to purchase if you are 21 years of age or older.

Yes, anyone working in the current CA cannabis business market needs a medical cannabis card to do work and become part of the collective – this may change with new regulations, but currently this is what stands.

Yes, with their CA cannabis recommendation there is a limit that each patient can have on them at any given time and this includes being able to transport their medicine back to their residence. They cannot, however, consume their medicine in the vehicle.