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selling to dispensaries in california

You Can Legally Buy Marijuana in California But Selling It Legally Is Tricky

Free Book Preview Cannabis Capital

As California begins legal adult-use cannabis sales this month, experts at GreenWave Advisors, a research company that specializes in the marijuana industry, are projecting a $5 billion annual marijuana market in the Golden State.

However, entrepreneurs entering the California recreational marijuana market will face some critical issues. None are insurmountable, and it should be well worth the effort, given the expected demand.

The following areas may present challenges.

Supply Chain Issues

It happened in Nevada, when a shortage of available transportation services for cannabis resulted in dispensaries in some areas quickly running out of product. Now, a comparable situation seems a possible in California, given the expected huge marijuana demand from Day 1.

Part of the issue is the licensing process, which only started in December. Licenses are needed for every step of the supply chain. That includes growers, testers, transportation companies and retailers, as well as associated businesses such as security.

Even the state’s top regulator has concerns. Lori Ajax, who leads the state Bureau of Cannabis Control, told the Associated Press that supply chain issues are her chief concern for cannabis businesses in California. That said, she expects things will smooth out over the first few months of cannabis sales.

Banking

This is an issue everywhere, not only in California.

Because marijuana remains illegal at the federal level, cannabis entrepreneurs in states where weed is legal have difficulty finding banks that will extend them services. This has lead to cash-only status for dispensaries and related businesses.

One option to deal with the issue is coming from the state itself. California Treasurer John Chiang spoke in late 2017 about the possibility of a public bank that would serve the cannabis industry. That option came out of meetings with government officials, cannabis entrepreneurs and bank officers.

However, even a government-run bank would have limited services available for cannabis businesses. Chiang’s group also proposed creating a lobbying team to send to Washington, seeking changes in federal banking regulations in reference to marijuana.

Chiang said without changes at the federal level, “a definitive, bulletproof solution will remain elusive.”

Black Market Competition

The black market remains an issue. Even in Colorado, where recreational marijuana has now been legal for three years, a man was arrested in December for trying to buy a car with black market marijuana. The man had four pounds of homegrown cannabis.

The California Department of Food and Agriculture estimates illegal growers produce 13.5 million pounds of marijuana annually, with about 11 million pounds exported to other states for sale. That’s a lot of competition, completely unregulated.

Ajax, in her interview with the Associated Press, said the state plans to wield a carrot rather than a stick, at least initially. She said that education will provide the key to luring black market operations out of the shadows. She said the state should remain flexible in the initial months of the regulated market in terms of enforcement.

The ease of applying for a state license should encourage black market businesses to enter the mainstream, she said, adding, “We, as a state, have to show them that this is where you need to be.”

Marijuana's unique status as legal under state law but illegal under federal law makes the cannabis business unlike any other.

What are the requirements to sell to a dispensary in California

patrick17
Member
cuddlesthesheep
Well-Known Member
Jeremy Pivens
Well-Known Member
BigmanBud
Member
Jeremy Pivens
Well-Known Member
Well-Known Member

In CA, a grower can “donate” their “overage” (that which is beyond your personal needs, beyond those of your patient network as a “caregiver”, beyond that of your “collective” as designated grower, etc) to a legal medical dispensary and expect to recieve appropriate compensation for time, power/water consumption, and other related expenses.

Now that the “Legal” is covered, you either have to have beyond exceptional product, or nice smelling “mids” that you let go for “bargain basement prices”. All dispensaries grow for themselves and have an established network of “suppliers”. In order to get your foot in the door you have to “knock their socks off” with some super buds, or undercut the next guy with “mids” on the super cheap. Generalized.

Come 2018 this changes. Licenses available/required will be for Medical Dispensaries, Retail Distribution, Transporting, and Cultivation (various).

Jeremy Pivens
Well-Known Member

In CA, a grower can “donate” their “overage” (that which is beyond your personal needs, beyond those of your patient network as a “caregiver”, beyond that of your “collective” as designated grower, etc) to a legal medical dispensary and expect to recieve appropriate compensation for time, power/water consumption, and other related expenses.

Now that the “Legal” is covered, you either have to have beyond exceptional product, or nice smelling “mids” that you let go for “bargain basement prices”. All dispensaries grow for themselves and have an established network of “suppliers”. In order to get your foot in the door you have to “knock their socks off” with some super buds, or undercut the next guy with “mids” on the super cheap. Generalized.

Come 2018 this changes. Licenses available/required will be for Medical Dispensaries, Retail Distribution, Transporting, and Cultivation (various).

a mongo frog
Well-Known Member
Well-Known Member
Dr. Who
Well-Known Member

MI is doing the same.
Going lic. grows to sell to disp. NO caregiver overage anything!
Next step will be the reduction of plant counts for caregivers and patient growers.
I suspect that in the future (considering the strangle hold the religious FAR right has on state politic’s). They may down the road, simply phase out any caregiver/patient growing.

I laugh at the narrow minded that say they “can’t”. “We passed a law.” Yeah, so what?
As long as the state has a way for patients to get meds. The law is honored and they can change the rest of the content of the law as they see fit!

Yodaweed
Well-Known Member

MI is doing the same.
Going lic. grows to sell to disp. NO caregiver overage anything!
Next step will be the reduction of plant counts for caregivers and patient growers.
I suspect that in the future (considering the strangle hold the religious FAR right has on state politic’s). They may down the road, simply phase out any caregiver/patient growing.

I laugh at the narrow minded that say they “can’t”. “We passed a law.” Yeah, so what?
As long as the state has a way for patients to get meds. The law is honored and they can change the rest of the content of the law as they see fit!

Dr. Who
Well-Known Member
cuddlesthesheep
Well-Known Member
BigmanBud
Member

In CA, a grower can “donate” their “overage” (that which is beyond your personal needs, beyond those of your patient network as a “caregiver”, beyond that of your “collective” as designated grower, etc) to a legal medical dispensary and expect to recieve appropriate compensation for time, power/water consumption, and other related expenses.

Now that the “Legal” is covered, you either have to have beyond exceptional product, or nice smelling “mids” that you let go for “bargain basement prices”. All dispensaries grow for themselves and have an established network of “suppliers”. In order to get your foot in the door you have to “knock their socks off” with some super buds, or undercut the next guy with “mids” on the super cheap. Generalized.

Come 2018 this changes. Licenses available/required will be for Medical Dispensaries, Retail Distribution, Transporting, and Cultivation (various).

a mongo frog
Well-Known Member
BigmanBud
Member
Well-Known Member

No, but Yes. What I’ve heard is that CA is going to make it extremely difficult to qualify for “Medical”. Why? “Medical” is exempt from a tax (or two). Lower tax, less money for the State, cheaper for the consumer. Right now, damn near anyone (of age w/ID) can get a rec. My back is kinda fucked (not proper fucked, but close, good as long as I stay strong/in the gym). When 215 first came about, I grabbed all of my X-rays, MRI’s, Drs/Orthopedic surgeons diagnosis’/prognosis’, proof of “minor surgery”, and headed to a rec Dr “far from home”. Shitty building, unmarked offices, trying to find my may, when Inpassed a door and heard “Man, I smoke so much fucking weed. ”.

Only State approved “legitimate” patients will be awarded “Medical recs” as needed. Meaning, it will be close to prescription, monitored, and limited. They do not want anyone circumventing the new taxes.

This is where “smokers” failed themselves. It was essentially legal before, now the State can tax as they see fit, incarcerate as necessary.. It was not the “non-smokers” voting “Yes”.

xtsho
Well-Known Member

To get as accurate information regarding California’s marijuana laws as possible you would be wise to start at these websites.

Bureau of Cannabis Control
http://bcc.ca.gov/

Daveindiego
Well-Known Member

You took an entry level position with a dispensary with an understanding of bringing in ‘occasional’ ‘overages’?

xtsho
Well-Known Member

You took an entry level position with a dispensary with an understanding of bringing in ‘occasional’ ‘overages’?

No dispensary in any legal state is going to risk their licensing by allowing an entry level employee to provide product that they sell. Anyone that has gone through the licensing process and other requirements to provide marijuana to dispensaries is not going to be working an entry level job at a dispensary to begin with. Dispensaries already have access to all they need. There are over 150 licensed dispensary’s within a ten mile radius of where I live. They have so much that they’re almost giving it away. At any given time there are numerous promotions and discounts going on. In fact it’s cheaper to just buy it when you take into account the cost in time and money to grow it. Which in my case is minimal because I use the KISS method. For some like me it’s a hobby more than anything else.

It’s tough to get started in any business and the cannabis industry has many more obstacles, potential pitfalls, and an unknown future. There is nothing stopping the feds from overnight deciding to enforce federal law “cannabis is a schedule 1 drug” and conduct raids across the country in legal states. Seizing assets and shutting businesses down. They show up with tow trucks ready to seize your vehicle. You might prevail in court and recover your assets but that could take years. In the meantime you’re livelihood is put on hold. Nothing I’m putting my money into. I wish anyone the best if they decide to try and make a living off of cannabis. But for me I just don’t see the reward/risk ratio I need to. Once you’re all registered legally to do legitimate business your name is on a list that the feds have access to. That’s a list I don’t want to be on.

Does anyone know what the requirements are to sell to a local dispensary in California? Thanks!