August 2008 – Attorney General Jerry Brown put forth guidelines and instructions for medical marijuana users. He outlined how one might comply with California’s cannabis laws enacted within SB 420 (2003) and Prop 215 (1996).
Collectives and Cooperatives are defined as not for profit organizations created by members who collectively fund and reap the benefits of member run activities. It can be designated grower cooperative or consumer cooperative. They must report all financial contributions by members.
Most collectives will choose to incorporate themselves as “California Nonprofit Mutual Benefit Corporations” as described by California Corporations Code 7110
Taxes must be paid for sales. California sellers permit form to complete is Form BOE-400-SPA (Download at www.boe.ca.gov) Some people suggest that a cooperative owner fill out a “Waiver for Incomplete Application” for as well so that they are not required to state the product they are selling.
The legal status of these collectives and cooperatives will be evolving in steps and is sure to see give and take with law enforcement and government officials.
A great step in the right direction towards the legalization of cannabis.