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  1. 1. No matter what state you are in, if you want to knowhow to open a collective, you first need to know that dispensaries are formed as either collectives or cooperatives and that there are major differencesbetween them and your choice of formation affectshow you operate your dispensary and the legality of it.Edit PDF on a Mac
  2. 2. By far, collectives are the most widely used choice The idea behind acollective is that you as the Dispensary Owner (You also must be a qualified,legal medical patient yourself) are teaming up with other patients to collectivelyform an establishment that cooperates to exchange and donate marijuanaamongst each other Members of the collective may be reasonablycompensated monetarily for their time and efforts in producing andtransporting the marijuana Within a collective, the production is done by theable members of the collective and distribution is back to them
  3. 3. Nothing is "bought from anyone" it all belongs to the members If you want toknow how to open a collective or cooperative, know this also - It's beensaid that Collectives Edit PDF on a Mac don't have the tight definitionsthat Cooperatives have around them For instance Collectives are notprivately owned, they are owned and worked by members of the group(collective) and no single member 'owns' the production there ofThe old communistic axiom of "Each as they can; each by their needs," wouldbe a good line to follow to see if an entity is a collective
  4. 4. Cooperatives (on the other hand) are groups of people who all own their ownland, (production sites) and sell their production to a central market or hub ACooperative is an entity that buys medical cannabis from members (at givenprices: 1,800-6,000 a pound) then resells it tacking on their Cost Of Operations(COO) also looking at current street prices to dissuade resell on the blackmarket A Collective is an entity that produces its own cannabis then providesit to its membership for Cost of Production (COP) and Cost of Operations(COO) (staffing et al) Prices are totally reflective of the actual COP &COO vs
  5. 5. any outside modifiers Membership and distribution is in a closed circuit andmonitored in a collective model Applying this definition, a collective should bean organization that merely facilitates the collaborative efforts of patient andcaregiver 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 toorganize as some form of business to carry out its activities
  6. 6. The collective should not purchase marijuana from, or sell to, non-members;instead, it should only provide a means for facilitating or coordinatingtransactions between members Collectives and cooperatives should beorganized with sufficient structure to ensure security, non-diversion ofmarijuana to illicit markets, and compliance with all state and local lawsRegardless of the organizational structure, a medical cannabis collectiveshould operate in a "not-for-profit" manner Not-for-profit operation describesthe behavior of a business or association that is not operated for a commercialpurpose, or to generate profits for its owners
  7. 7. Any business, regardless of its formal structure, can operate in a not-for-profitfashion by reinvesting excess revenue (after salaries and other overhead) inservices for members, advocacy for patients' rights, or othernoncommercial activity Remember when you know how to open a collectiveproperly- you can be salaried and if you are providing the marijuana, you canalso still be reasonably compensated for your time and efforts
  8. 8. Edit PDF on a Mac