Selling Product To Dispensaries

[PufferLungs]

How does the law read on this? Is it one of those gray areas?

I can legally hold 2oz as a patient with an MMJ card and no designated caregiver. So let's say I happen to have several ounces of overgrowth. I'd like to get rid of it because I don't need that much medicine to control my pain. How would I go about sending it to a dispensary and being paid for my labor or services?

I am pretty sure I'd need to get a Federal Tax ID and start an LLC company. Yes? No?

Can anyone tell me where I might read the laws on this subject?

PufferLungs Reviewed by PufferLungs on 11-30-2009. Selling Product To Dispensaries How does the law read on this? Is it one of those gray areas? I can legally hold 2oz as a patient with an MMJ card and no designated caregiver. So let's say I happen to have several ounces of overgrowth. I'd like to get rid of it because I don't need that much medicine to control my pain. How would I go about sending it to a dispensary and being paid for my labor or services? I am pretty sure I'd need to get a Federal Tax ID and start an LLC company. Yes? No? Can anyone tell me Rating: 5

[puntacometa]

How does the law read on this? Is it one of those gray areas?

I can legally hold 2oz as a patient with an MMJ card and no designated caregiver. So let's say I happen to have several ounces of overgrowth. I'd like to get rid of it because I don't need that much medicine to control my pain. How would I go about sending it to a dispensary and being paid for my labor or services?

I am pretty sure I'd need to get a Federal Tax ID and start an LLC company. Yes? No?

Can anyone tell me where I might read the laws on this subject?

I formed a Colorado S-Corp and I use a Colorado bank with a credit card issued by that same Colorado bank so there is no question of my transactions intentionally crossing state lines. I only ship within the boundaries of the state of Colorado and do not use the USPS or interact with any other federal entity in any way whatsoever. I do sell my overage to Colorado dispensaries once I have taken care of my patients. I strictly follow state law relative to growing 6 plants per patient. I did have a dispensary offer me a contract but I wasn't comfortable with it. Having all my paperwork in order and hanging in the growop with the legal plant count per patient and with each plant tagged and labelled with the patient number on it was what I determined to be the best for my particular situation. My attorney thinks the same.

I know some dispensaries are offering grow contracts, but if you are inspected and your plant count exceeds your patient count and you are not the primary caregiver for those patients, IMO, you may be asking for trouble if you get inspected and you aren't in strict compliance with the plant count regs. Explaining a third party contract from a jail cell while hoping that the dispensary owner (who is actually the license holder) picks up your one phone call and comes down there to bail you out and pays out of his own pocket to defend you in court is not a scenario I particularly want to have to deal with.

[PufferLungs]

Oh I'm in agreement with you 100% my friend. I only want to grow for myself. I do not have a care giver and I do not want one. I know that I can legally have 6 plants. But I only want to have 1 or 2 plants growing at a time. Never so many as 3 vegging and 3 flowering at the same time. I don't need that much. 1 vegging and 1 flowering would be too much.

But even one plant would probably yield enough overgrowth that I'd need to get rid of some of it. By law I am only allowed to possess 2oz at a time. So I'd like to get rid of that and stay on the up and up with the laws.

Will the dispensary purchase 2oz from me? Do I just throw it away?

[puntacometa]

Oh I'm in agreement with you 100% my friend. I only want to grow for myself. I do not have a care giver and I do not want one. I know that I can legally have 6 plants. But I only want to have 1 or 2 plants growing at a time. Never so many as 3 vegging and 3 flowering at the same time. I don't need that much. 1 vegging and 1 flowering would be too much.

But even one plant would probably yield enough overgrowth that I'd need to get rid of some of it. By law I am only allowed to possess 2oz at a time. So I'd like to get rid of that and stay on the up and up with the laws.

Will the dispensary purchase 2oz from me? Do I just throw it away?

If it's good product, I see no problem with taking a sample by a dispensary and if they like it, let them purchase it for their patients. I always invoice and insist on payment by check in the name of the corporation. I hold back around 35% for state and federal income tax (appropriate for my particular situation).

[Kartel]

If it's good product, I see no problem with taking a sample by a dispensary and if they like it, let them purchase it for their patients. I always invoice and insist on payment by check in the name of the corporation. I hold back around 35% for state and federal income tax (appropriate for my particular situation).

Warren Edson's opinion is that it is illegal to sell to clubs, distribution is only legal from a caregiver to a patient (not necessarily primary caregiver, just a caregiver)... the vendor is almost never a caregiver to the dispensary owner and therefore it is illegal.

I think he's an asshole and we'll just see what the court's opinion is about this kinda thing one day I guess, cause otherwise there wouldn't be a shop that had medicine on the shelf.

[Feijao]

So let's say I happen to have several ounces of overgrowth. I'd like to get rid of it because I don't need that much medicine to control my pain. How would I go about sending it to a dispensary and being paid for my labor or services?

What you do is get your 2oz or whatever you are allowed to hold and that you want sell because it is extra and head to a disp. If its good enough they will pick it up. Who am I kidding most disp's are taking what ever is brought to them that is C grade and above.

Feijao

[Spacedet01]

What you do is get your 2oz or whatever you are allowed to hold and that you want sell because it is extra and head to a disp. If its good enough they will pick it up. Who am I kidding most disp's are taking what ever is brought to them that is C grade and above.

Feijao

lol..so tru. You shouldn't have any trouble unloading extra at most dispensaries. If you have top quality wears you might find your self in a situation where they ask you to contract for them.

[puntacometa]

[QUOTE]

Warren Edson's opinion is that it is illegal to sell to clubs, distribution is only legal from a caregiver to a patient (not necessarily primary caregiver, just a caregiver)... the vendor is almost never a caregiver to the dispensary owner and therefore it is illegal.

.....good info. Thanks.

I think he's an asshole and we'll just see what the court's opinion is about this kinda thing one day I guess, cause otherwise there wouldn't be a shop that had medicine on the shelf.

I think that paying taxes is going to strengthen support for limited commerce within the grower/caregiver>dispensary>patient loop. Paying taxes helps to legitimize a business as the system that is receiving those taxes comes to depend on them.

[canaguy27]

If you are on contract, they will 1099 you. Do you really want that?

Vending is a grey area and I would treat it like such until you are forced to do something else. But hey, that's me. Sounds like you need to talk to a tax guy.

[MEDEDCANNABIS]

right now the consensus is that there are too many dispensaries. they want closures on them so i would venture a guess that vending would be frowned upon. Ideally the situation would be at its best like so: backgrounds on all owners AND funding scources so that organized will stay out this, then dispense with plant counts. limiting the number of plants only leads to morre dispensaries to meet the demand. this in turn would lead to a more competetive market of higher standards and lower prices. more supply=lower prices.

meded so you can mededicate to mededitate