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In this guide you will learn
California has long been a cannabis pioneer in the United States, starting with its initial legalization of medical marijuana back in 1996. With California leading the way, other states began to fall in line through today, when half of America’s states have a legal medical marijuana program.
Somehow it took another two decades before California voted to legalize recreational marijuana. The vote was successful in 2016, and the details are still being finalized. The future is bright: starting in January 2018, retail sales of recreational marijuana will begin. The licensing processes for recreational and medical marijuana are being combined into one to help speed things along.
Starting a marijuana delivery service in California is almost exactly the same as opening a retail store. The difference is that you will be contracting with cultivators and/or edible/extraction/infused product manufacturers to grow and produce the marijuana products you intend to sell – unless you do so yourself.
When was cannabis made legal
The original vote to legalize medical marijuana took place in California in 1995, with the program launch occurring in 1996. Jerry Brown, the governor at the time, is once again governor of California today. The licensing program was made with the help of the Medical Marijuana Regulation and Safety Act (MCRSA), which details all the rules and regulations for any marijuana-related business. The same framework is being used to design the recreational program (launching on the first day of 2018).
California’s marijuana market
The marijuana market in California is booming, as indicated by the money: $845 million is made annually from marijuana. There are currently more than 2,800 dispensaries to be found in California. The current prediction states that, in just over two years, the market will be up to $1 billion.
Owner requirements
Any prospective cannabis business owner should be aware of the fact that, although there are certain laws in the state of California, individual cities and counties can make their own rules for what is required. Be sure to check into these laws and differences, so you stay within the bounds of the law.
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License requirements
The licensing process, starting in January of 2018, will include the following stages:
- Stage 1: Preliminary determination of eligibility Cost: $3,258.00
- Stage 2: Initial ranking. Cost: $701.00
- Stage 3: Second ranking. Cost: $1,790.00
- Stage 4: Public Meeting and City Council Final Selection. Cost:$1,937.00
During the first stage, the California City Police Department will run a background check on the applicant to determine if there has ever been criminal charges. Due to a lack of resources, it is a slow process and needs to be paid by the applicant. It costs $78 and should be paid on-site. Only six applicants’ background checks (at the most) will be processed per day.
The location also needs to be taken into account. Acquire a “Zoning Verification Letter” from the local Public Works department, and submit it to your local city hall’s Planning Division. This will cost $250 and should take approximately two weeks in total.
Before the fourth and final stage, a public meeting will take place between applicants and community members. It will occur in the California City Council Chambers and will discuss the location proposed, the business planning (budgets, proof of capital), safety plans, environmental and community benefits, and standards of employment.
Financial requirements
Be sure to have the sufficient financial means to start up a marijuana business in the state of California, as they add up quickly right off the bat. The costs vary according to how expansive your delivery service is going to be. As described above, you can expect the following prices:
- Stage 1: $3,258.00
- Stage 2: $701.00
- Stage 3: $1,790.00
- Stage 4: $1,937.00
- Total cost: $7,686
Timeframe
How long it takes to get your cannabis business up and running can vary widely; but it is not unusual for the process to take more than a year, due to finances, required licenses, suppliers, and employees lined up, etc.
How much does a marijuana delivery service in California make
Cannabis delivery services in California can earn exceed $1 million annually. For example, Harborside Medical dispensary in San Jose, California reportedly does over $20 million in annual sales.
Links to consulting companies
Looking to start a marijuana delivery business in California? These consulting companies provide a wide range of services – including helping with state licensing requirements and applications to running and stocking your business.
- Canna Advisors http://thinkcanna.com/
- Quantum 9 Inc. https://quantum9.net/portfolio/cannabis-consulting-services/
- DispensaryPermits.com http://dispensarypermits.com/
- Comprehensive Cannabis Consulting https://www.3ccannabis.com/
- Green Rush Consulting http://greenrushconsulting.com/open-a-dispensary/
- GreenZipp https://greenzipp.com/pages/states
- Medicine Man Technologies http://www.medicinemantechnologies.com/
By Ricky Avila
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