Can someone please explain the difference between a Coop and a Collective?

[SoCaliSmoker]

I live in San Diego and they have a 10 month moratorium out here on store front dispensaries. Although, there is no restriction on opening a "private" collective.

From my understanding, (and of course I'm probably wrong on this and that is why I need help) I thought that most of the dispensaries that are opening up here are registered as "collectives" and allow marijuana or cash to be donated amongst the members.

A "cooperative or Coop" primarily uses a parcel of land that members of the coop use together to grow marijuana and split whatever is grown evenly at the end of the harvest. My question to everyone is this:

Could you please explain the differences between a Coop and a Collective for me?

What I want to do is open a "Coop" and grow with a few of my buddies. We'll all incorporate, we all have California state-issued medical marijuana cards that allow us to grow up to 24 plants per person, and I want to take all four of us and use our plant limits to grow on one parcel of land where we could have up to 96 plants. And do it legally!

Any info helps, thanks!!!

 

[Blue Dot]

Jerry's guidelines "explain" the differences between a co-op and a collective.

http://www.americansforsafeaccess.org/downloads/AG_Guidelines.pdf

1. Statutory Cooperatives: A cooperative must file articles of incorporation
with the state and conduct its business for the mutual benefit of its members.
(Corp. Code, § 12201, 12300.) No business may call itself a “cooperative” (or “coop”)
unless it is properly organized and registered as such a corporation under the
Corporations or Food and Agricultural Code. (Id. at § 12311(b).) Cooperative
corporations are “democratically controlled and are not organized to make a profit
for themselves, as such, or for their members, as such, but primarily for their
members as patrons.” (Id. at § 12201.) The earnings and savings of the business
must be used for the general welfare of its members or equitably distributed to
members in the form of cash, property, credits, or services. (Ibid.) Cooperatives
must follow strict rules on organization, articles, elections, and distribution of
earnings, and must report individual transactions from individual members each
year. (See id. at § 12200, et seq.) Agricultural cooperatives are likewise nonprofit
corporate entities “since they are not organized to make profit for themselves, as
such, or for their members, as such, but only for their members as producers.”
(Food & Agric. Code, § 54033.) Agricultural cooperatives share many
characteristics with consumer cooperatives. (See, e.g., id. at § 54002, et seq.)
Cooperatives should not purchase marijuana from, or sell to, non-members;
instead, they should only provide a means for facilitating or coordinating
transactions between members.


2. Collectives: California law does not define collectives, but the dictionary
defines them as “a business, farm, etc., jointly owned and operated by the members
of a group.” (Random House Unabridged Dictionary; Random House, Inc.
© 2006.) Applying this definition, a collective should be an organization that
merely facilitates the collaborative efforts of patient and caregiver 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 to organize as some form of
business to carry out its activities. The collective should not purchase marijuana
from, or sell to, non-members; instead, it should only provide a means for
facilitating or coordinating transactions between members.

 

[SoCaliSmoker]

Thank you Blue Dot

 

[JackTheGrower]

I'm in the same boat really.. Wikipedia has an entry..

I'm not so hot for a proper coop but there are variations.

I want to be employed by one but getting voted of the island I build isn't my idea of staying employed..

I'm confused as well..

Can we have a type of coop or is it only one type..

BTW there is a proper domain called DotCoop as in Website.coop

Weird huh..

 

[Surrender]

I've been doing a lot of research on Co-ops lately. It's really a fascinating form of business.

There's a very special type of non-profit coop called an IRS 990C "Exempt Farmers Cooperative Association" which is interesting to read about. I'm thinking about forming one in Colorado. Producers would buy in as co-op owners with a small chunk of cash. Patients would get some money back on each transaction like with a normal retailer co-op, e.g., REI. There would have to be a dispensary but it would be more like a business office rather than a walk-in store front--we'd put a strong emphasis on making deliveries. Having the co-op act as a non-profit middle man would go a long ways to bring prices down towards what I see as a fair price of around $10 a gram, maybe less.



IRS page on farmers co-ops

 

[TheGreenBastard]

$10/g is a very fair price, where I'm from it goes at ~$20/g and our schwag goes for $2/g.