Recreational Marijuana-What is an Incorporated Collective?

I was reading some of the new bills that Hick said he was going to sign regarding Recreational Marijuana. No coffee shops, no smoking in any of the bars, etc, but one thing caught my eye. They are also banning incorporated collectives. What is that exactly? Im guessing it is a collective like [FONT=Georgia, Times, Times New Roman, serif]Blue Mountains that are actually selling marijuana, but saying they are non profit when they clearly are profiting. They are selling marijuana for $300 an oz, which is ridiculous to say you are not making a profit on. As of now, they dont have any kind of licensing fees or anything like that the mmc have, and the mmc sell for less and still make money.

Would a collective of friends growing marijuana together, for themselves, and not selling, be considered an Incorporated Collective? Some places you are not allowed to grow, apartments, most rentals, etc, so it would seem to be the only way to grow. You wouldnt be selling the marijuana, it would be friends helping grow at one location where it is allowed. Seems to me that this would be legit, but Im not certain. [/FONT]

I'd appreciate it if anyone has links to the real details of these two bills this week. I've read a couple of articles on them but none really detailing the regulations regarding producing for legal distribution other than there'll be a 15% excise tax. It says the general limit is 6 plants per person but obviously that can't be the limit for someone producing for commercial distribution. Haven't seen anything about licensing fees or requirements (assuming there will be)

Anybody out there?

Still interested in more details myself

Ok I got an email from my lawyer on 64 and I figured I would post it here to answer some of the questions....I didnt get a definition of coop though.

Dear Friends,

Since my last email, there have been a few changes to HB-1317, the bill which regulates retail marijuana businesses. The bill has now passed both the House and Senate and is on the Governor’s desk for his signature. Once that is completed, the bill will become a law (those of you familiar with School House Rock already know that!). The changes include:

1. There will be a 9 month waiting period for new businesses, instead of 90 days. If you do not already own a MMJ business, you will be able to apply on 9/1/14. Prospective business owners can file a notice of intent to own a MJ business after 1/1/14 and must provide a deposit that will be applied to the application fee. The deposit amount is not specified.
2. The bill expressly outlaws the “collective model” and requires that any sale or other distribution of MJ be done only by a licensed MJ business.
3. The MED is required to implement a “seed to sale” tracking system for all MJ sold. This idea was previously shelved by MED.
4. No delivery of MJ.
5. There is a THC content limit for edible MIP products.
There are two other bills that were passed, HB-1318 and SB-283. Here 5 things you should know about each of them.

HB-1318, “the tax bill”:

1. There is a 15% excise tax that will be assessed for wholesale sales of MJ to Retail Marijuana Centers (RMC).
2. The excise tax will be based on an average market price established by the State. The tax must be collected by the wholesaler and a report for such sales filed once a month.
3. The excise tax will apply to the transfer of MJ from the grow to the retail center even if the business owns both the grow and retail center.
4. There is a 10% State sales tax for MJ sold by the RMC. This can be raised to 15% without voter approval.
5. The sales tax will be shared with local governments, but local governments are also permitted to impose additional local taxes.
SB-283, the miscellaneous bill:

1. Local governments may ban the use of butane and compressed gas for use in extraction.
2. The bill creates a responsible vendor program that will require training. There will be created a “certified trainer” and all vendors must be certified.
3. Marijuana business contracts shall not be void despite the federal argument that all such businesses and their contracts are illegal.
4. There will be no exception to the state smoking laws that will permit a private club or other such business to permit MJ use.
5. No open containers of MJ in vehicles. The MJ must be in an unopened, sealed container or be placed in the trunk of your car.

Sounds mostly reasonable... i think they should've allowed smoking in private clubs though -- come on!! what's the reasoning against it???

Thanks for the info!! i'm gonna look up those specific bills to see if i can find the original text and see what else is in them that might be useful.

Thanks Andy, good info

Thanks for the info sir. So basically there will be no more caregivers unless its a business? The tracking from seed to sale, does this cut out clones? And will the ban on butane stop shops from carrying all there waxs, etc?


Is there an issue with the thc content in edibles at the moment? I usually find that there isn't enuff not the other way.

Caregivers are for medical -- a completely separate law/issue. No caregivers for legal weed. Caregivers are for medical -- i haven't heard that this is changing has someone else?

Good question about clones!

From what I saw above there is no ban on butane -- they said localities COULD ban it if they choose to. So I would assume unless everyplace does, the BHO people will just make it in the locations that don't ban it.

Caregivers will still exist, but that is just for medical. Doesnt look like for rec marijuana you can designate someone else to grow for you. That would make a lot of sense though, seeing as most people cannot grow at their own house. I bet the dispensaries had their hand in that, like when they limited caregivers to 5 patients.

bobsstory182 said:

Doesnt look like for rec marijuana you can designate someone else to grow for you.

Click to expand...

Could you quote where you read this?

True, I think that the poster is inferring from the rules that because there is no caregiver with rec, that there would be no assigning of grow rights. Seems like a reasonable assumption. Do you think that there is a legal mechanism to assign growing rights under the new rec rules?

If there is no law specifically preventing it, it is not illegal. I see a lot of money to be made in just contracting alone.

The restriction of 6 plants per person does not seem to have any accommodation for transferring that right to someone else. I like the logic you suggest, but haven't seen anything that allows transferring your plant count to someone else. Hope there is a way, I'll look deeper, this is an important aspect of the new rules.

Answers tonight in FOCO. 6:30 PM at Council Tree Library.

I attended and asked the questions, their answers in the sticky thread...

Actually you might be able to get away with it. Am 64 section 16 paragraph 3 subsection e says that assisting individuals in their personal usage of marijuana is permitted, but there must be no remuneration. So that means no payments or compensation. It also says that the marijuana must not be made for sale. Paragraph 4 goes into who can sell marijuana and to whom they can sell it to.