The laws in California are changing—again. The passing of SB 94, also known as the MAUCRSA, effectively and drastically changed many of the laws and regulations already set in place by Proposition 64. Once again, both novice and seasoned canna business owners and operators of various kinds have to go back to the drawing board in order to be sure that their business models will fit into the framework of the new bill.
Many of the regulations have stay the same. But many of them have changed, leaving business owners and operators left scrambling to figure out the next steps to take to ensure legal compliance.
With over one thousand pages of newly amended cannabis regulations, it’s easy to miss something vital that can affect your business or startup in a negative way. Even if you read through the MCRSA and the AUMA, and you thought that you had a good idea of what the laws and regulations are surrounding medical and/or recreational cannabis, now that SB 94 is scheduled to go into effect in January 2018, it is crucial to really take the time to look at the new bill and what it means for your business.
Requirements keep changing at a very rapid pace and, if you aren’t careful, you could be left behind. Start Your Collective is here to help.
A CAUTIONARY TALE
Here’s an example of what I mean.
A customer called Start Your Collective recently to organize paperwork for his new grow operation in Northern California. As a new business owner, he was very excited and filled with anticipation about his venture and wanted to take the proper steps in order to become an operation that was compliant with all of the new laws and regulations coming out of SB 94.
He purchased a property that would be perfect. Based on what he saw and learned from the previous owner, the land had been used for cultivation of up to forty-eight plants outdoors at any given time and that there had never been any problems. The seller assured him that this had been the case for a number of years and that all would run smoothly when he chose to purchase the property.
Because all seemed fine, the sale went through and the property was purchased. It wasn’t until after he closed escrow on the property and paid the down payment in cash, that he noticed some inconsistencies between what the seller told him about cultivation and what he was learning from the municipality. So, he called us for help.
After doing a bit of research about the local cultivation ordinances in Northern California, we discovered that his newly purchased property was located less than two miles away from the zoning lines which would have allowed him to legally grow more than a few plants recreationally or for medicinal purposes. Due to the property’s location, the new owner would not be able to grow more than six plants at any given time, effectively obliterating his dreams of owning and operating a canna business.
Knowledge is Power
Scenarios like this are happening all over California right now. Both seasoned and novice business owners, anxious to get a jump on the market and secure an early foot hold in the industry, are trying to move as quickly as they can to establish and strengthen their businesses. Everyone wants to be on the cutting edge so that their business models will grow and become successful.
Unfortunately, with all of the changing laws and regulations, many of these business owners are finding that their dreams are going up in smoke.
Many business owners and those hopefuls are still using the regulations established by the MCRSA, the AUMA, SB 837, and AB 266. Unfortunately, with the passage of the MAUCRSA, many essential regulations that were already in existence have shifted, changed, or have been completely erased. As you can imagine, this is a confusing time to start a new cannabis business due to the ever changing regulations and laws.
Accept Only the Best
A qualified cannabis consultant should have no less than five years of experience in the field. Don’t fall prey to the numerous services promising anything and everything to potential clients without any sort of proven track record to support their claims.
If you need help, seek out a consultant with:
- No less than five years of experience
- Clients CURRENTLY working in the cannabis industry
- Bonded and/or error and omission insurance, to guarantee your safety
- Good online reviews, no scam or “rip-off” reports
- An active social media presence
- An informative, accurate, and up to date website and blog
- Successful clients willing to give testimony to the consultant’s best practices
- Only positive search results about the company, its founders and/or employees (When considering our competition, we researched many consulting firms in California, only to find out that it is possible to be both an owner of a cannabis consulting firm that offers legal counsel to those in need and also to have been convicted of armed robbery with a firearm!)
When comparing consulting costs, it’s crucial to consider several factors, in addition to those already mentioned. Ask the consultants for any proof of:
- Results and a time lines for those results? How long did the whole process take? Time is money, and we all know how important it is to maximize both
- Efficiency. Were the results delivered in a timely and efficient manner?
Some consulting firms will take their time with your case, explaining things that are really just common knowledge to most people. If being paid by the hour, it’s always possible for consultants to try to squeeze out as many hours as possible.
Before you agree to work with a consultant, and surely before you enter into a paid contract, ask a question related to your current venture to see if they have any useful insights or solutions, even if they are more general in nature. If they won’t give you any verbal assistance until you pay, consider signing a very short contract with them, so that you can determine whether or not their counsel will be helpful.
Start Your Collective is Here for You and Your Business
With over eight years of experience consulting with more than eight hundred cannabis owners and operators in the state of California, Start Your Collective is ready to work diligently and efficiently to help you realize your dream. We are more than confident that our services will provide you with a substantial leg up in the cannabis industry, cutting out the need for copious amounts of money spent, or hours of research and time wasted on legalities and technicalities. We want you to focus on creation, vision, and operation so that your business will be successful. Let us take care of the rest.
Don’t Wait. The Time to Act is Now.
More than ever, the time to ask as many questions as possible before moving forward with any business plan or potential model, is now. Let our professional team of knowledgeable consultants here, at Start Your Collective work for you.
If you are a new or hopeful businessperson, we will look at your current business plan and identify where your model may or may not conflict with any existing and new regulations in the state of California. With a bit of time and energy, our consultants can help you identify and solidify sources of potential investment, which can give you the financial resources you will need to initially startup and operate your cannabis business. We can then go on to identify the license or licenses you will need in order to legally operate a marijuana business in California, both at a state and local level.
If you are a seasoned business owner, we can help you keep up with the new state laws and regulations so that your business will continue to run smoothly and according to the laws setup by SB 94. We don’t have time for games, and neither do you. This is serious business and we are here for you.
Take the Plunge. We’re Ready
If you are ready to begin the ride of your life and to see all of your hard work pay off, give us a call today. Our team of professional consultants are waiting for help.
When you call, all you need to do is give us a brief overview of your situation and an idea of the type of license or licenses you might need for your business.
In order to help you decide which are right for your business model, here is a list of the new license types and categories:
- (1) Type 1—Cultivation; Specialty outdoor; Small.
- (2) Type 1A—Cultivation; Specialty indoor; Small.
- (3) Type 1B—Cultivation; Specialty mixed-light; Small.
- (4) Type 1C—Cultivation; Specialty cottage; Small.
- (5) Type 2—Cultivation; Outdoor; Small.
- (6) Type 2A—Cultivation; Indoor; Small.
- (7) Type 2B—Cultivation; Mixed-light; Small.
- (8) Type 3—Cultivation; Outdoor; Medium.
- (9) Type 3A—Cultivation; Indoor; Medium.
- (10) Type 3B—Cultivation; Mixed-light; Medium.
- (11) Type 4—Cultivation; Nursery.
- (12) Type 5—Cultivation; Outdoor; Large.
- (13) Type 5A—Cultivation; Indoor; Large.
- (14) Type 5B—Cultivation; Mixed-light; Large.
- (15) Type 6—Manufacturer 1.
- (16) Type 7—Manufacturer 2.
- (17) Type 8—Testing laboratory.
- (18) Type 10—Retailer.
- (19) Type 11—Distributor.
- (20) Type 12—Microbusiness.
After a brief consultation on the phone, we will then be able to move forward, setting up a time to meet and discuss your business plan and all of the steps that will be necessary in order to help you create a manageable, profitable, and fully legal business model.
If you are ready to take the plunge, Start Your Collective is ready to help. Give us a call today and watch, as your dreams become a reality.