Section § 26227

Explanation

This law allows an association to take part in a wide range of activities related to cannabis. This includes things like growing, processing, and storing cannabis products that its members produce. It also covers helping members with buying or using supplies, machines, or equipment, and even financing these activities. However, they must have a valid license for doing these activities.

An association may engage in any activity in connection with the growing, harvesting, curing, drying, trimming, packing, grading, storing, or handling of any cannabis product that is produced or delivered to it by its members; or any activity in connection with the purchase, hiring, or use by its members of supplies, machinery, or equipment, or in the financing of any such activities; or in any one or more of the activities that are specified in this section with a valid license.

Section § 26227.1

Explanation

This law allows an association to borrow money without any limits on the amount of debt it can take on. It also permits the association to lend money to its members.

An association may borrow without limitation as to the amount of corporate indebtedness or liability and may make advances to members.

Section § 26227.2

Explanation

This law says that an association can represent one or more of its members when taking part in certain activities mentioned in other sections. It's like having someone act on your behalf for specific tasks.

An association may act as the agent or representative of any member or members in any of the activities specified in Section 26226.2 or 26226.3.

Section § 26227.3

Explanation

This section allows a cannabis-related association to buy, own, and control shares or bonds of another similar association. They can sell or transfer these shares, and even use them to guarantee payments, such as dividends or interest. Essentially, it's about financial transactions between associations involved in cannabis-related activities, like growing or processing.

An association may purchase or otherwise acquire, hold, own, and exercise all rights of ownership in, sell, transfer, pledge, or guarantee the payment of dividends or interest on, or the retirement or redemption of, shares of the capital stock or bonds of an association that is engaged in any related activity or in the growing, harvesting, curing, drying, trimming, packing, grading, storing, or handling of a cannabis product that is handled by the association.

Section § 26227.4

Explanation

This law allows an association to set aside funds, known as reserves, and invest these funds in bonds or other types of property, as long as they follow the rules outlined in their bylaws.

An association may establish reserves and invest the funds of the reserves in bonds or in other property as may be provided in the bylaws.

Section § 26227.5

Explanation

This law allows an association to purchase, own, and use any type of property it needs to run its business effectively.

An association may buy, hold, and exercise all privileges of ownership over such real or personal property as may be necessary or convenient for the conduct and operation of, or incidental to, the business of the association.

Section § 26227.6

Explanation

This law specifies that an association, like a homeowners' association, has the power to charge fees or assessments as detailed in its own rules, known as bylaws.

An association may levy assessments in the manner and in the amount as may be provided in its bylaws.

Section § 26227.7

Explanation

This law gives associations the freedom to do anything needed or appropriate to achieve their goals, as long as it benefits the association. They can make contracts, hold rights and powers necessary for their activities, and enjoy all rights granted to regular corporations in the state, unless those rights contradict specific rules in this chapter.

An association may do any of the following anywhere:
(a)CA Business & Professions Code § 26227.7(a) That which is what is necessary, suitable, or proper for the accomplishment of a purpose, or the attainment of an object, that is enumerated in this article.
(b)CA Business & Professions Code § 26227.7(b) That which is conducive to, or expedient for, the interest or benefit of the association.
(c)CA Business & Professions Code § 26227.7(c) Contract accordingly.
(d)CA Business & Professions Code § 26227.7(d) Exercise and possess all powers, rights, and privileges that are necessary or incidental to the purposes for which the association is organized or to the activities in which it is engaged.
(e)CA Business & Professions Code § 26227.7(e) Exercise any other rights, powers, and privileges that are granted by the laws of this state to ordinary corporations, except such as are inconsistent with the express provisions of this chapter.

Section § 26227.75

Explanation

This law allows an association to use its facilities for any purpose as long as the money earned helps lower operating costs for its members. However, the value of any cannabis products or services provided to nonmembers must not surpass what is offered to members within the same time frame.

An association may use or employ any of its facilities for any purpose, provided the proceeds that arise from such use and employment shall go to reduce the cost of operation for its members. The cannabis products that are handled for, or the services, machinery, equipment, or supplies or facilities that are furnished to, nonmembers shall not, however, exceed in value the cannabis products that are handled for, or the services, merchandise, or facilities that are supplied to, members during the same period.

Section § 26227.8

Explanation

This law allows an organization, referred to as an association, to be involved in various activities related to cannabis, like growing or processing it, and to join or invest in other similar associations. Furthermore, if there are two or more such associations, they can merge or consolidate into one entity, and this should be done following the general state laws applicable to corporations.

(a)CA Business & Professions Code § 26227.8(a) An association may organize, form, operate, own, control, have an interest in, own stock of, or be a member of any other association, with or without capital stock, that is engaged in growing, harvesting, curing, drying, trimming, packing, grading, storing, or handling of any cannabis product that is handled by the association, or the byproducts of the cannabis product.
(b)CA Business & Professions Code § 26227.8(b) Any two or more associations that are organized pursuant to this section may be merged into one constituent association or consolidated into a new association. The merger or consolidation shall be made in the manner that is prescribed by the general laws of the state that cover domestic corporations.

Section § 26227.9

Explanation

This section allows a cannabis association to partner with other cannabis cooperatives or associations in California. They can create agreements to share resources, such as personnel or methods, to conduct their businesses more efficiently. These partnerships can be formalized through resolutions by their boards of directors or through mutual agreements.

(a)CA Business & Professions Code § 26227.9(a) Any association may, upon resolution adopted by its board of directors, enter into all necessary and proper contracts and agreements and make all necessary and proper stipulations and arrangements with another cannabis cooperative or association that is formed in this state for the cannabis cooperative and more economical carrying on of its business or any part of its business.
(b)CA Business & Professions Code § 26227.9(b) Any two or more associations may, by agreement between them, unite in employing and using, or may separately employ and use, the same personnel, methods, means, and agencies for carrying on and conducting their respective business.