DISCLAIMER – PRIVACY, SECURITY, LICENSE TO USE, REFUNDS, WARRANTY
Marijuana remains illegal under federal law. The Federal Government does not recognize marijuana to have any medicinal values. Marijuana sales and distributions are illegal under California law and Federal laws.
Cloud 9 Collective is in accordance with California Attorney General Guidelines, California Health and Safety code 11362.5 and 11362.775, and Senate Bill 420.
THE CALIFORNIA ATTORNEY GENERAL HAS STATED:
“Under California law, medical marijuana patients and primary caregivers may “associate within the State of California in order collectively or cooperatively to cultivate marijuana for medical purposes.” (§ 11362.775.) The following guidelines are meant to apply to qualified patients and primary caregivers who come together to collectively or cooperatively cultivate physician-recommended marijuana.
It is the opinion of this Office that a properly organized and operated collective or cooperative that dispenses medical marijuana through a storefront may be lawful under California law, but that dispensaries that do not substantially comply with the guidelines set forth in sections , are likely operating outside the protections of Proposition 215 and the Medical Marijuana Program (SB 420), and that the individuals operating such entities may be subject to arrest and criminal prosecution under California law.”
Collectives (page 8): California law does not define collectives, but the dictionary defines them as “a business, farm, etc., jointly owned and operated by the members of a group.” (Random House Unabridged Dictionary; Random House, Inc. Applying this definition, a collective should be an organization that merely facilitates the collaborative efforts of patient and caregiver members – including the allocation of costs and revenues. As such, a collective is not a statutory entity, but as a practical matter it might have to organize as some form of business to carry out its activities. The collective should not purchase marijuana from, or sell to, non-members; instead, it should only provide a means for facilitating or coordinating transactions between members.
Storefront Dispensaries: Although medical marijuana “dispensaries” have been operating in California for years, dispensaries, as such, are not recognized under the law. As noted above, the only recognized group entities are cooperatives and collectives.
Statutory (page 8): A cooperative or collectives must file with the state and conduct its business for the mutual benefit of its members (that means non-profit). (Corp. Code, § 12201, 12300.) Cooperative corporations are “democratically controlled and are not organized to make a profit for themselves, as such, or for their members, as such, but primarily for their members as patrons.”
Sales Tax, and Seller’s Permits (page 9): The State Board of Equalization has determined that medical marijuana transactions are subject to sales tax, regardless of whether the individual or group makes a profit, and those engaging in transactions involving medical marijuana must obtain a Seller’s Permit.