Section § 26223

Explanation

This law allows three or more people who grow cannabis to form a cooperative. They can work together on activities like growing, marketing, selling, or handling cannabis products. They can also share resources, like machinery or financing. Anyone in the cooperative must be disclosed to the state, and members can only have a basic Type 1 or Type 2 license. The cooperative can't cultivate more than four acres of cannabis in total, and no member is allowed to operate a cannabis business outside of California.

(a)CA Business & Professions Code § 26223(a) Three or more natural persons, who are engaged in the cultivation of any cannabis product, may form an association pursuant to this chapter for the purpose of engaging in any activity in connection with any of the following:
(1)CA Business & Professions Code § 26223(a)(1) The cultivation, marketing, or selling of the cannabis products of its members.
(2)CA Business & Professions Code § 26223(a)(2) The growing, harvesting, curing, drying, trimming, packing, grading, storing, or handling of any product of its members.
(3)CA Business & Professions Code § 26223(a)(3) The manufacturing, selling, or supplying to its members of machinery, equipment, or supplies.
(4)CA Business & Professions Code § 26223(a)(4) The financing of the activities that are specified by this section.
(b)CA Business & Professions Code § 26223(b) Members of a cannabis cooperative shall be disclosed to the department before the application is processed.
(c)CA Business & Professions Code § 26223(c) Members of a cannabis cooperative formed pursuant to this chapter shall be limited to cultivators who only hold a single Type 1 or Type 2 license.
(d)CA Business & Professions Code § 26223(d) Collectively, members of a cannabis cooperative shall not grow more than four acres of total canopy size of cultivation throughout the state during the period that the respective licensees are valid.
(e)CA Business & Professions Code § 26223(e) No member of a cooperative formed pursuant to this section shall be licensed to operate a cannabis business in another state or country.