Selling Weed....legally To Dispensaries?

[xavier7995]

So thank you google recommended news articles, this one floated up:
http://www.thecannabist.co/2015/01/...e-limits-edibles-nonresident-marijuana/25773/

Per this, an individual should be able to get a license for 7200 (will just refer to it as being 10k, would probably be a terrible idea to not consult a lawyer first) that would allow them to grow and sell to dispensaries. That seems pretty dreamy and I think you could make up the money spent on fees fairly quickly with a full basement.

This raises a couple of questions for me that I figured I would throw out for random chatter. First and foremost, would any dispensary actually buy from an individual. My understanding was all existing retail/med outlets had to grow their own...so they have growing facilities in place and one would assume they are not going to be that interested in paying to buy it when they could grow it cheaper. If I were a dispensary and cared about my reputation of having great products, I would be very leery of taking in outside product and putting it on my shelf. A decent amount of the concerns could be alleviated by testing the product, but who would cover that, the grower or the dispensary? Outside of the numbers, I would expect anyone that would be in a buying position to be able to distinguish the good from the bad.

 

[3N1GM4]

There are lots of members here that sell to dispensaries. They take a sample of your bud to a lab and have it analyzed for thc, chemicals, and cbd and such. Then they either dont buy your bud or call you and make an offer.

 

[xavier7995]

in CO? I know that is common in CA, one of my big blunders/oversights was assuming there would be similar setup here.

 

[GrowGod]

6 years ago you could lol

 

[xavier7995]

See thats what I thought, I looked really briefly and it looked like that would be an option if you got the caregiver license/registration; but well I think I failed mightily at looking at the published dates of what i read and to see if there had been any new updates.

CA, you are the land of milk and honey when it comes to having a legit gray market, but welp, you are going to fall in the ocean.

edit: I think most growers would be jazzed to have a legal outlet to unload their product. I can't imagine dispensaries paying all that much, 1.5-2k if you are lucky, but to me that would beat the hell out of the uncertainty you have dealing with a local black market that has crappy prices or the risk that comes with shipping to illegal lands. 10k to be able to grow/sell say...100 plants or whatever, man that would be great.

 

[We Solidarity]

you can absolutely apply for a license, it's not too bad, but once you get into city permitting fees it's a real headache. But yes, if you follow the law you can grow weed and sell it independently to a dispensary. It's going to take closer to a half million to get started, though. You need an architect and engineers to draft plans, the city to approve them, you need insured contractors, and materials. Plus property and business taxes, then the excise tax when you finally get around to selling something. There's a long, expensive lead time to opening a warehouse and that's really what you need to be anticipating.

as far as selling, the market fluctuates just like the black market, prices build in march/april and rocket in august-september, and then drop again november-february. As long as you can take the hit most companies ride the market down as low as 1400 and as high as 2300. There are definitely more shortages than surplus and even when it hits rock bottom and there's 2000 lbs for sale at 1300 a pound, everyone tends to move their herb. There are multiple brokers who can list and sell your herb for you too if you're having trouble.

 

[xavier7995]

Well I think that sort of puts the kibbosh on it, 500k is a steep price tag:) I was thinking more along the lines of a side job done out of your home rather than a full warehouse; being a handyman vs. Toll Bros home building company if you will. I am guessing that would run afoul of all sorts of zoning laws though now that I think about it.

The 500k is actually very much in line with other figures I have seen that seem credible (1m if you are also setting up a sales outlet) but they all seem to be geared towards a warehouse setup. The article made it seem like I could get the permits/license, then just show up at a dispensary with my 10 lbs and make a deal....but well I am 100% sure I am misinterpreting that.

The big mystery for me is definitely in what it would take to get your grow setup to pass whatever applicable permitting laws are out there. Going to assume there is quite a bit more to it than making sure you have the seed to sale inventory tracking stuff going on.

edit: btw, thank you for the info on pricing and brokers, good to know and it is appreciated.

 

[We Solidarity]

maybe soon they'll allow for more licenses and approve smaller grows, I've always wanted to license like 1200 sq ft in a warehouse and have a little botique grow, sell the 3000 dollar lbs again.

 

[LocalGrowGuy]

Well I think that sort of puts the kibbosh on it, 500k is a steep price tag:) I was thinking more along the lines of a side job done out of your home rather than a full warehouse; being a handyman vs. Toll Bros home building company if you will. I am guessing that would run afoul of all sorts of zoning laws though now that I think about it.

The 500k is actually very much in line with other figures I have seen that seem credible (1m if you are also setting up a sales outlet) but they all seem to be geared towards a warehouse setup. The article made it seem like I could get the permits/license, then just show up at a dispensary with my 10 lbs and make a deal....but well I am 100% sure I am misinterpreting that.

The big mystery for me is definitely in what it would take to get your grow setup to pass whatever applicable permitting laws are out there. Going to assume there is quite a bit more to it than making sure you have the seed to sale inventory tracking stuff going on.

edit: btw, thank you for the info on pricing and brokers, good to know and it is appreciated.

Don't caregivers have to register with the state and open themselves up to inspections? Additionally, aren't there requirements for caregivers that they must handle more than strictly pot. They have to actually provide care and not just grow pot. I think it's safe to say there is a grey area. I don't think many caregivers register and it makes sense, if I'm not selling to the state or state-licensed places I am not registering anything.

In this situation (asking the experts around the forum here like We Solidarity), are these brokers using off premise licenses?

 

[xavier7995]

Something like that is exactly what I would love. Basically a legal version of grow house that puts out very high quality...like your standard 3 bed and a basement size grow a single person or two could handle.

 

[xavier7995]

Don't caregivers have to register with the state and open themselves up to inspections? Additionally, aren't there requirements for caregivers that they must handle more than strictly pot. They have to actually provide care and not just grow pot. I think it's safe to say there is a grey area. I don't think many caregivers register and it makes sense, if I'm not selling to the state or state-licensed places I am not registering anything.

In this situation (asking the experts around the forum here like We Solidarity), are these brokers using off premise licenses?

you are 100% right on the caregiver front. That's just a bad deal all around and I have no clue why anyone would set themselves up like that.

 

[GreenThumbBill]

Might be worth a few hundred dollars to sit down with Warren Edson or Sean Mcalister and see what they have to say. Anybody have a recommendation for a good Canna biz lawyer?

 

[xavier7995]

Might be worth a few hundred dollars to sit down with Warren Edson or Sean Mcalister and see what they have to say. Anybody have a recommendation for a good Canna biz lawyer?

Oh absolutely. I just like idle chatter and figured we could ramble about stuff. Would be quite the bad idea to act on Internet advice without the proper due diligence.

Lawyer of choice is FRANK MF'N AZAR.

 

[We Solidarity]

Something like that is exactly what I would love. Basically a legal version of grow house that puts out very high quality...like your standard 3 bed and a basement size grow a single person or two could handle.

Unfortunately growing in houses is extremely looked down upon here...a lot of growers I know who have had cops show up actually aren't in court for growing they're in court for property damage because its a guarantee once you grow in a house you will damage it in some way.

 

[xavier7995]

Unfortunately growing in houses is extremely looked down upon here...a lot of growers I know who have had cops show up actually aren't in court for growing they're in court for property damage because its a guarantee once you grow in a house you will damage it in some way.

Oh don't I know it, the nederland thread makes it sound like a nightmare. Thats awesome to know they do wind up going to court. That thread made it sound like property owners have no recourse when people damage the house. I was super confused and like "why don't you just sue them or file criminal charges if the damage is bad enough."

Pretty obvious the last tenants in my current place ran the whole basement as a grow. My ducting is fucked and you can see where they drilled into the floor joists above.

edit: back on track for the thread topic....well I got nothing. I sure am hopeful that some mechanic will get put in place so that home growers could sell their excess to dispensaries, a 1-5 lb. flip if you will or that it becomes more feasible to do something other than a huge warehouse, large but still small enough that you can actually give each plant a decent once over a couple of times during the run.

 

[JakeCake27]

A few years ago walk-ins where commonplace. Not actually legal but under the 70/30 law a medical patients excess product was technically viewed as a legal source of wholesale product.

 

[LocalGrowGuy]

A few years ago walk-ins where commonplace. Not actually legal but under the 70/30 law a medical patients excess product was technically viewed as a legal source of wholesale product.

I think 'not actually legal' and 'technically viewed as a legal source' are mutually exclusive.

I am not aware of any situation where a patient/red card holder/home grower has been able to sell their overage or anything else to an MMC without being an off premise grow, mip kitchen, etc.

Where were walk ins common after 1284 and 106? I don't see anything remotely close to what you are saying. Where are you getting your info? I see no permission for home growers to sell to MMC's in the language of 106 and 1284. Just the opposite.

I guess I don't see how you can get past this as far as being able to sell to MMC's:
12-43.3-101. State licensing authority - creation. (1) FOR THE
4 PURPOSE OF REGULATING AND CONTROLLING THE LICENSING OF THE
5 CULTIVATION, DISTRIBUTION, AND SALE OF MEDICAL MARIJUANA IN THIS
6 STATE, THERE IS HEREBY CREATED THE MEDICAL MARIJUANA LICENSING
7 AUTHORITY, WHICH SHALL BE THE EXECUTIVE DIRECTOR OF THE
8 DEPARTMENT OF REVENUE, REFERRED TO IN THIS ARTICLE AS THE
9 "DEPARTMENT", OR THE DEPUTY DIRECTOR OF THE DEPARTMENT IF THE
10 EXECUTIVE DIRECTOR SO DESIGNATES.

http://www.leg.state.co.us/clics/cl...C6DB1E8872576A80029D7E2?Open&file=1284_01.pdf


I thought california allowed caregiver sales or allowed people to sell their wares to marijuana centers. I've been incorrect before though.

 

[LocalGrowGuy]

I think 'not actually legal' and 'technically viewed as a legal source' are mutually exclusive.

I am not aware of any situation where a patient/red card holder/home grower has been able to sell their overage or anything else to an MMC without being an off premise grow, mip kitchen, etc.

Where were walk ins common after 1284 and 106? I don't see anything remotely close to what you are saying. Where are you getting your info? I see no permission for home growers to sell to MMC's in the language of 106 and 1284. Just the opposite.

I guess I don't see how you can get past this as far as being able to sell to MMC's:
12-43.3-101. State licensing authority - creation. (1) FOR THE
4 PURPOSE OF REGULATING AND CONTROLLING THE LICENSING OF THE
5 CULTIVATION, DISTRIBUTION, AND SALE OF MEDICAL MARIJUANA IN THIS
6 STATE, THERE IS HEREBY CREATED THE MEDICAL MARIJUANA LICENSING
7 AUTHORITY, WHICH SHALL BE THE EXECUTIVE DIRECTOR OF THE
8 DEPARTMENT OF REVENUE, REFERRED TO IN THIS ARTICLE AS THE
9 "DEPARTMENT", OR THE DEPUTY DIRECTOR OF THE DEPARTMENT IF THE
10 EXECUTIVE DIRECTOR SO DESIGNATES.

http://www.leg.state.co.us/clics/cl...C6DB1E8872576A80029D7E2?Open&file=1284_01.pdf


I thought california allowed caregiver sales or allowed people to sell their wares to marijuana centers. I've been incorrect before though.

You should clarify. Are you saying that walk-in sales were common even though they were illegal?

 

[JakeCake27]

You should clarify. Are you saying that walk-in sales were common even though they were illegal?

I am not sure if that last question was for me but I can tell you YES. Walk-ins were common and still are common. But his language definitely makes me believe it is not legal after those last two revision. Still happens on the regular anyhow.

 

[muir]

I am not sure if that last question was for me but I can tell you YES. Walk-ins were common and still are common. But his language definitely makes me believe it is not legal after those last two revision. Still happens on the regular anyhow.

not in Colorado, not any more. I would chase with a club, any vendor (or anyone) that came into my shop with un-mainfested cannabis/cannabis product and tried to sell it to me.