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Location:
408 Bryant Circle, STE K-1
Ojai, Ca, 93023
Appointment Only
Cannabis Free Zone
Wellness Education Center
Only Lab Samples Accepted


Office Phone Number:
(805) 640-6464

Phone Orders:
805-448-6032
Members Only


Office Fax Number:
(805) 640-8124

Office Hours:
Mon-Fri: 9am to 5pm
Saturday: 12pm to 6pm
Sunday: Closed

Orders before 10am get same day drop-off
Online & Phone orders placed after 10am will get their order the following day. You will be contacted by SLCC to setup delivery.

Closed Sundays
(Office & Delivery)
Shangri La Care Cooperative, INC. - ByLaws

ARTICLE I. NAME AND HEADQUARTERS

Section 1.1. Name and Location.

The name of the cooperative shall be Shangri La Care Cooperative, Inc. and the headquarters will be located in California.

ARTICLE II. MEMBERSHIP

Section 2.1. Membership Qualifications.

Any person, irrespective of age, sex, race, nationality, political opinion, sexual preference, handicap, or marital status, who is entitled to the protections of California Health & Safety Code Section 11362.5, meets membership requirements and is capable of using and enjoying the benefits of membership is eligible to become a shareholder of the Cooperative. A person may become a Member of the Cooperative by:

(a) Complying with the uniform conditions as may be prescribed by the Board of Directors;
(b) Making full payment of any non-refundable membership fee as set forth in Section 2.4; and
(c) Making full payment for one (1) membership share upon joining and additional shares as required by the Board of Directors.

Section 2.2. Application for Membership.

Any applicant eligible for and desiring admission to membership in the Cooperative must file a written application for admission in whatever form and containing whatever information the Board of Directors prescribes.

Section 2.3. Acceptance of Applications.

Applications for membership shall be reviewed by the Board of Directors or by an agent designated for that purpose by the Board. The application shall be accepted or rejected in writing within thirty (30) days or as the case may be for reasons satisfactory to the Board. If accepted, the applicant shall be admitted to membership and shall be allowed to vote and hold office. If rejected, the applicant shall be entitled to a refund of any amounts paid for membership fees and shares.

Section 2.4. Membership Fees.

A one-time non-refundable membership fee, in an amount set, from time to time, by the Board of Directors, may be charged and collected from each prospective Member upon joining the Cooperative.

Section 2.5. Membership Information.

Each person, upon becoming a Member, shall receive a copy of the Articles of Incorporation and the Bylaws of the Cooperative.

Section 2.6. Nomenclature.

"Shareholder" and "Member" and their plurals shall be synonymous throughout these Bylaws. "Board" means the Board of Directors and refers to the entire group, while "Director" and "Directors" refer to Members of the Board of Directors.

Section 2.7. Working Membership.

The Board of Directors shall provide a system and the rules by which Members may provide their labor to the Cooperative in return for a discount or credit on transactions with the Cooperative by such Members. Members may participate in such system at their option.

ARTICLE III. SHARES

Section 3.1. Shares Issuance.

(a) Subject to the exception in Subsection (b), membership shares may be issued for a price set by the board.
(b) Membership shares and fractions thereof may be issued as a share dividend or patronage refund.

Section 3.2. Shares Ownership.

Share ownership entitles a Member to one (1) vote only in the affairs of the Cooperative, regardless of the number of membership shares a Member owns, and to all the rights of the Membership as described by statute, the Articles of Incorporation, and these Bylaws.

Section 3.3. No Transfer of Memberships.

Memberships may not be transferred.

Section 3.4. Fair Share Investment.

(a) From time to time, the Board shall set a monetary amount of investment in membership shares which each Member must purchase. Such minimum investment shall be called the Member's "fair share." The Board shall also, from time to time, set the minimum amount in dollars that each Member must invest toward his or her fair share in each fiscal year of the Cooperative.
(b) Any membership shares distributed to a Member pursuant to Section 3.1(b) shall be counted in determining the Member's total investment toward his or her fair share amount. The Board shall, from time to time, specify the mechanisms by which the annual investments are to be made.
(c) Once a Member reaches his or her fair share amount, he or she may make further purchases of, or receive distributions in, membership shares at his or her option, provided the Board and statute allows this action. Under no circumstances, however, may the Board require a Member to invest in membership shares above the current "fair share" requirement.

Section 3.5. Partial Share Withdrawal.

A Member having membership shares exceeding the current "fair share" requirement may reduce his or her equity by withdrawing property from the Cooperative up to the amount of such excess upon written request to the Board. The Board must, within one (1) year or as the case may be of such request, pay the amount the Member requests in cash or other property or both. The exact form of payment is within the discretion of the Board.

ARTICLE IV. TERMINATION OF MEMBERSHIP

Section 4.1. Voluntary Withdrawal.

A Member shall have the right to resign from the Cooperative and terminate his or membership by filing a written notice of resignation with the Secretary of the Cooperative. The resignation shall become effective without any action on the part of the Cooperative.

Section 4.2. Death.

A Membership shall immediately terminate upon the death of a Member.

Section 4.3. Expulsion.

(a) A Member may be expelled from the Cooperative by resolution adopted by two-thirds (2/3) vote of all the Members of the Board of Directors for any of the following reasons:
(1) Having failed to comply with the Bylaws, rules or regulations of the Cooperative;
(2) Having failed to patronize the Cooperative during the immediately preceding fiscal year of the Cooperative in a minimum amount to be set by the Board;
(3) Being delinquent on the payment of their fair share for one calendar year; or
(4) Any other justifiable reason.
(b) Expulsion shall become effective immediately unless the Board shall, in the resolution, fix another time. On expulsion the name of the Member expelled shall be stricken from the membership register and all his or her rights shall cease except as provided in Section 4.4.
(c) Before a Member is expelled, the Board shall give the Member at least fifteen (15) days written notice of the proposed action and the reasons for the proposed action. The Member shall have the opportunity to respond, orally or in writing not less than five (5) days before the effective date of the expulsion by the Board.

Section 4.4. Redemption of Shares.


If a membership is terminated for any reason set forth in this article, the Cooperative shall purchase the paid up value of the Member's shares within one (1) year after termination occurs, unless the Member chooses to donate the value of such shares to the Cooperative. The Board, in settling the Member's property interest, shall have the right to offset any and all indebtedness of the Member to the Cooperative. The paid-up value of the Member's share interest is the monetary value of the Member's shares at the time of termination.

Section 4.5. Escheat Shares.

(a) Subject to the provisions of paragraph (b) of this Section, any Proprietary Interest that would otherwise escheat to the State of California pursuant to the provisions of the California Code of Civil Procedure section 1500 et seq. shall instead become the property of this corporation in accordance with California Corporations Code section 12446.

(b) No proprietary interest shall become the property of this corporation unless the following requirements are satisfied:

(1) At least 60 days prior notice of the proposed transfer of affected Member by first-class or second-class mail to the last address of the Member shown on this corporation's records, and by publication in a newspaper of general circulation in the county in which this corporation has its principal office.

(2) Nor Proprietary Interest shall become the property of this corporation under this Section if written notice objecting thereto is received by this corporation from the affected Member prior to the date of the proposed transfer.

(c) For purposes of the Section, a "Proprietary Interest" shall mean and include any membership, membership certificate, membership share (including, but not limited to, any Participating Membership Share, Sustaining Membership Share certificate of any class representing a proprietary interest in, and issued by, this corporation together with all accrued and unpaid dividends and patronage distributions relating thereto.)

ARTICLE V. GOVERNANCE OF THE COOPERATIVE

Section 5.1. Control.

The control of the Cooperative shall be vested in the Membership.

Section 5.2. Administration.

The administration of each enterprise of the Cooperative is vested in a Board of Directors responsible to the Membership. The initial term for the board of directors is four (4) years. After the service of the initial term, the term shall be reduced to one (1) year.

Section 5.3. Management.

The management of each enterprise of the Cooperative shall be vested in the Board of Directors.

Section 5.4. Right of Appeal.

(a) Any employee or representative of an employee shall have the right to present a grievance directly to the Board of Directors.

(b) Any Member or representative of a Member shall have the right to present any grievance or concern to the Board of Directors.

ARTICLE VI. MEMBERSHIP MEETINGS

Section 6.1. General.

Whenever Members are required or permitted to take any action at a meeting, a written notice of the meeting's date, time and place shall be posted in the Cooperative store and sent to the Members at least twenty (20) days but not more than ninety (90) days prior to the date of the meeting. This Section shall apply to all quarterly and special meetings. No fee shall be charged for attendance at any membership meeting.

Section 6.2. Twice Annual Meetings.

(a) There shall be two (2) membership meetings per year held every six (6) months. The time and date of the meetings shall be set by the Board of Directors.

(b) The second membership meeting shall be the annual meeting.

Section 6.3. Special Meetings.

(a) Special meetings of Member for any lawful purpose may be called by the Board or the President, and shall be called by the Board upon written request to the Board by at least five percent (5%) of the Members.

(b) Any special meeting called by the written request of the Members pursuant to Subsection (a) shall be held not less than thirty-five (35) days and not more than ninety (90) days after the Board receives the request.

Section 6.4. Chairperson.

Membership meetings shall be chaired by the President of the Board of Directors or his or her designated substitute.

Section 6.5. Quorum.

(a) At any membership meeting, the presence, in person, of two percent (2%) of all Members having voting rights or one hundred percent (100) of the Members, whichever is less, constitutes a quorum for the transaction of business. If a quorum is present, motions shall be passed by a majority vote of those present and voting on the matter, unless the vote of a greater number is required by statute, the Articles of Incorporation, or the Bylaws.

(b) Quorum requirements and number of votes required to conduct an election or approve a mailed ballot measure shall be the same as those required at a membership meeting.

(c) The Members present at any meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the withdrawal of enough Members to leave less than a quorum. If any action is taken, other than adjournment, it must be approved by at least a majority of the quorum.

Section 6.6. Functions of Twice Annual Meetings.

The functions of the meetings shall be primarily to:

(a) Nominate candidates for the Board of Directors (in the appropriate years);

(b) Request referendums and initiatives;

(c) Discuss policies and problems of administration and management;

(d) Make recommendations to the Board of Directors;

(e) Provide educational information on matters of interest to Members;

(f) Install the Board of Directors (in the appropriate years); and

(g) Endorse the annual financial report.

ARTICLE VII. DIRECTORS AND OTHER OFFICERS

Section 7.1. Composition of the Board.

(a) The Board of Directors shall be composed of three (3) persons.

(b) Aside from the initial director, each Director shall be an active Member of the Cooperative for at least six (6) months prior to the date of his or her election and shall continue to be an active Member for the entire term of office.

(c) Two or more Members who are members of the same immediate family may serve on the Board simultaneously.

(d) No Director shall be elected for more than three (3) consecutive terms.

(e) No more than three (3) employees may serve on the Board at any one time.

(f) The Manager/Consultant may not be a Member of the Board.

Section 7.2. Vacancies on the Board.

In the event of a vacancy on the Board, the remaining Directors shall appoint a qualified Member of the Cooperative to fill the vacant position.

However, if such vacancy occurs due to a recall by the Membership as provided in Section 9.4(a), the succeeding Director must be selected by the Membership in accordance with the election code procedures. An appointed Director shall serve the remainder of the term of the Director he or she is replacing.

Section 7.3. Meetings.

(a) The Board of Directors shall have regular monthly meetings on the second Tuesday of each month at a place of their choosing. All meetings, except for executive sessions, shall be open to the Members. All meetings shall be announced at least seven (7) days prior to the meeting by newsletter and an announcement on the Cooperative bulletin board.

(b) A majority of the number of Directors authorized in the Bylaws constitutes a quorum of the Board for the transaction of business.

(c) Meetings of the Board may be called by the President or by any two (2) Directors.

(d) The majority vote of those Board Members present and voting shall be required for official action provided there is a quorum. Abstention votes shall not be counted in determining the passage or failure of any measure on which a vote is taken.

(e) All meetings of the Board of Directors shall be conducted according to "Robert's Rules of Order" unless provided otherwise by a majority of the Board of Directors.

(f) A quorum is necessary to call a meeting of the Board to order. In the event that during the course of a duly called meeting less than a quorum is present, an action taken by a majority of the required quorum is an act of the Board, unless a greater number is required by statute of the Bylaws.

(g) Any action required or permitted to be taken by the Board may be taken without a meeting if all members of the Board shall individually or collectively consent in writing to such action. Such written consent(s) shall be filed with the minutes of the proceedings of the Board. Such action by written consent shall have the same force and effect as an unanimous vote of such Directors.

(h) The Board may meet in executive session to discuss personnel matters, real estate issues, and legal matters. With the unanimous consent of all the Board Members, the Board may meet in executive session to discuss matters provided the topics are announced to the Membership and posted with the meeting announcement.

Section 7.4. Vacancies and Removals.

(a) The Board may declare vacant the office of a Director whose eligibility for election as a Director has ceased, or who has been declared of unsound mind by a final order of court, or convicted of a felony, or who has failed to attend three (3) regular or special meetings in any six (6) month period. A Director whose seat will become subject to the above described action through his or her absence from a subsequent meeting shall be notified by the Secretary after missing two (2) meetings in accordance with California Corporations Code section 7221.

(b) Any and all Directors may be removed without cause if such removal is approved by the Members in accordance with Section 9.4(c).

(c) Except as provided in this Bylaws Section or by court order, a Director may not be removed prior to the expiration of such Director's term office.

Section 7.5. Officers.

(a) At the first meeting of the Board following the Board elections, the Directors shall elect, as Officers of the Cooperative, a President from among the Directors; the Directors shall further elect a Secretary and a Treasurer who may, but need not be, a Member of the Board. The same person may be elected both Secretary and Treasurer.

(b) Responsibilities of the Officers shall be those set forth in the Policy Manual of the Board.

Section 7.6. Board Policy.

The Board shall develop and state in writing those policies necessary to carry out the duties of the Board and the functions of the Cooperative. A copy of these policies shall be available to the Membership on request. The statements shall include policies on election procedures, personnel, duties of Officers and Directors, and any other matters deemed necessary by the Board.

ARTICLE VIII. NOMINATION AND ELECTIONS

Section 8.1. Length and Limitation of Term.

(a) Pursuant to Section 7.1(d), no Member shall be elected as a Director for more than three (3) consecutive terms.

(b) A full term for the initial directors shall be four (4) years; after the initial term, a full term shall be one (1) year.

(c) Directors shall be elected by a schedule established pursuant to Section 8.5. Officers shall be elected by a schedule established pursuant to Section 8.6.

Section 8.2. Nomination Procedures.

A prospective candidate for a seat on the Board of Directors shall secure the nomination by one of the following methods:

(a) Selection by the nominating committee.

(b) Nomination and second by any two Members at the membership meeting preceding the election.

(c) Petition signed by fifty (50) Members or ten percent (10%) of the membership, whichever is less. This petition must be received by the nominating committee at least three (3) weeks before the start of the balloting.

Section 8.3. Election and Nominating Committees.

(a) The election committee shall be appointed by the Board of Directors to administer elections. The election committee shall be composed of no fewer than three (3) and no more than five (5) Members.

(b) The nominating committee shall be appointed by the Board of Directors to recruit a slate of candidates for the Board of Directors and to aid in recruitment of Members to serve on committees. The nominating committee shall be composed of no fewer than two (2) and no more than five (5) Members.

Section 8.4. Mailed Ballots.

Ballots for the purpose of electing Members of the Board of Directors shall be mailed to the Members.

Section 8.5. Schedule of Board Elections.

(a) After the initial term, two (2) Directors will be elected each year for full terms. In years that are evenly divisible by three (3), one (1) additional Director will be elected for a full term.

(b) Election to fill unexpired terms will occur at the first available election cycle.

(c) Installation of the new Board of Directors shall occur at the annual membership meeting.

Section 8.6. Schedule of Officer Elections.

(a) The initial term of the first elected President shall be four (4) years. Each term subsequent thereto shall be three (3) years.

(b) The initial term of the first elected Secretary shall be three (3) years. Each term subsequent thereto shall be two (2) years.

(c) The initial term of the first elected Treasurer and each subsequent term shall be two (2) years.

(d) Election to fill unexpired terms will occur at the first available election cycle.

(e) Installation of the new Officers shall occur at the annual membership meeting.

ARTICLE IX. MAILED BALLOTS

Section 9.1. Uses of Mailed Ballots.

Mailed Ballots shall be used for votes on the following:

(a) Board of Directors elections;

(b) Board of Directors recall elections;

(c) Bylaws amendments;

(d) Referendums; and

(e) Advisory surveys

Section 9.2. Election Code.

Voting by mailed ballot shall be conducted in accordance with the Election Code. The Election Code shall be established by the Board of Directors and shall be in compliance with the following guidelines:

(a) It is in accordance with the Bylaws and Articles of Incorporation.

(b) It provides for a secret ballot.

(c) It is even handed in it rules in respect to all candidates and subjects.

(d) It forbids the use of money of the Cooperative for campaigning beyond the distribution of candidates' statements and pro and con analyses.

(e) It mandates that the ballot shall set forth the proposed action, provides opportunity to specify approval, disapproval, or abstention. The ballot packages must specify the time by which the ballot must be received in order to be counted.

(f) All ballot packages shall indicate the number of responses needed to meet the quorum requirement and, for ballots other than the election of Directors or for advisory surveys, shall state the percentage necessary to pass the measure submitted.

(g) Upon adoption of any amendment to the Bylaws, or any other matter by a mailed ballot, a revised copy of such shall be conspicuously posted at the Cooperative, not later than seven (7) days thereafter, and copies shall be made available upon request.

(h) All mailed ballots under this Article may be sent to the Members and returned from the Members in a single envelope. Proxies are allowed.

Section 9.3. Board Elections.

(a) The Directors elected for full terms shall be those nominees receiving the highest number of votes, consistent with the number of full term Directors to be elected.

(b) The Directors elected to complete unexpired terms (if any) shall be those nominees receiving the highest number of votes, consistent with the number of unexpired terms to be filled after the full term Directorships have been filled.

Section 9.4. Recall of Directors.

(a) A recall election for a Board Member can be initiated by any other Member in good standing with a petition signed by fifty percent (50%) of the Members in good standing. A recall election shall be scheduled by the Board within thirty (30) days of the receipt of the request and the scheduled posted in the store. The recall election will be held in accordance with provisions outlined in the Election Code.

(b) A Director shall be recalled if a two-thirds (2/3) majority of those voting endorse the action.

(c) A director may be removed without cause by a vote of a majority of the total Membership of the Cooperative at a duly called meeting as provided under California Corporations Code sections 7222, 5034 and 7513, or as amended.

Section 9.5. Bylaws Amendments.

(a) Amendments to these Bylaws may be proposed by:

(1) A two-thirds (2/3) vote of the Board of Directors.

(2) A petition signed by fifty (50) Members or five percent (5%) of the Membership, whichever is greater.

(b) Proposed Bylaws changes shall be submitted to a committee assigned by the Board. This committee shall:

(1) Check the proposed amendment for legality, for conflict with other Sections of the Bylaws, and for proper language.

(2) Notify the Membership, in writing, of the proposed amendment.

(3) Hold a publicized meeting to discuss the proposed amendment.

(c) Amendments to these Bylaws shall be adopted by a two-thirds (2/3) majority of those voting as prescribed in the Election Code.

Section 9.6. Referendums and Initiatives.

(a) Any official act, either proposed or taken, at a membership meeting or a Board of Directors meeting, shall be submitted to a referendum or initiative of the Membership under the procedures outline in the Election Code in any of the following situations:

(1) A petition, stating the action requested, signed by at least ten percent (10%) of all the Members is received by the secretary of the Board.

(2) The majority of the Members present and voting at a duly called regular or special Membership meeting deem it necessary.

(3) The Board so directs.

(b) The results of any referendum shall be binding on the Board and Membership.

Section 9.7. Advisory Survey.

In the event it shall be deemed advisable for any reason, the Board of Directors, or the Board of Directors when directed to do so by a motion approved at a membership meeting, shall conduct a non-binding advisory survey of the Membership by mail on a specific issue or issues. The procedures for conducting such balloting shall be as described in the Election Code.

ARTICLE X. FINANCES

Section 10.1. Fiscal Year.

The fiscal year of the Cooperative shall begin on January 1 and end on December 31 of the following year.

Section 10.2. Mortgage Loans.

(a) The Board shall not obtain any loan secured by a mortgage unless approved by the Members by either of the following means:

(1) By the vote of a membership meeting with at least one (1) week previous notice of the proposed plan.

(2) By a mailed ballot.

(b) "Mortgage" shall be defined as a pledge of property to a creditor as a security against debt.

Section 10.3. Other Loans.

(a) Except for loans described in Section 10.2, the Board shall not obtain any loans that in aggregate exceed the net worth of the Cooperative unless authorized by either the following means:

(1) By the vote of a membership meeting with at least one (1) week previous notice of the proposed plan.

(2) By a mailed ballot.

(b) The Board may seek loans from Members and other qualified lenders when insufficient capital is available.

Section 10.4. Bonding of Officers and Employees.

(a) A bond may be required of the General Manager and Treasurer if the Board so elects.

(b) A bond may be required of other Officers and employees as the Board may direct.

Section 10.5. Annual Audit.

An annual audit or financial review of accounts shall be made by an auditor selected by the Board of Directors. A summary of the audit or financial review shall be presented in writing at the first membership meeting held in the year and the complete audit or financial review shall be available to the Members.

Section 10.6. Indemnification.

To the fullest extent permitted by law, this corporation shall indemnify its directors, officers, employees and other persons described in California Corporations Code section 12377(a), including persons formerly occupying any such position, against all expenses, judgments, fines, settlements, and other amount actually and reasonable incurred by then in connection with any "proceeding," as that term is actually used in section 12377(a), and including any action by or in the right of the corporation, by reason of the fact that the person is or was a person described in that section. "Expenses" shall have the same meaning as in that section.

ARTICLE XI. SURPLUS ALLOCATION AND DISTRIBUTION

Section 11.1. Surplus Defined.

"Surplus" shall be defined as the excess of revenue and gains over expenses and losses for a fiscal year. Such surplus shall be determined in accordance with generally accepted accounting principles and shall be computes without regard to patronage refunds, capital allocations, dividends, or income taxes.

Section 11.2. Reserve Fund.

The Board shall annually set aside at least ten percent (10%) of any surplus for a reserve fund equal to thirty percent (30%). Thereafter, the Board may continue to set aside ten percent (10%) of the net surplus savings for a reserve fund.

Section 11.3. Dividends.

After meeting the annual reserve requirements the Board may declare a dividend upon paid up shares at yearly rate not to exceed any maximum rate established by statute. All Members agree that any dividends shall be distributed to a non-profit corporation that has obtained IRC § 501(c)(3) status or multiple corporations who also have obtained such status chosen in the best business judgment of the Directors.

Section 11.4. Remaining Surplus.

(a) The remaining patronage surplus shall be computed without regard to any gains or losses on the sale or other disposition of assets.

(b) The Directors shall distribute all the remaining surplus attributed to patronage of the Members of the Cooperative to a non-profit corporation that has obtained IRC § 501(c)(3) status or multiple corporations who also have obtained such status chosen in the best business judgment of the Directors.

(c) Each person who becomes a Member of this Cooperative consents to include in his or her gross income for federal income tax the amount of any patronage refund paid him or her by the Cooperative in money or by written notice of allocation (as defined in the Internal Revenue Code), except to the extent that such a patronage refund is not income to the Member because:

(1) It is attributable to the purchase of personal, living or family items, or

(2) It should properly be treated as an adjustment to the tax basis of property previously purchase.

The term "patronage refund" as used therein shall have the same meaning as the term "patronage dividend," as used in the Internal Revenue Code.

(d) For the purpose of allocating and distributing the surplus, the entire operations of the Cooperative shall be considered as a unit; provided that by resolution of the Board of Directors, the Cooperative may distribute patronage on the basis of the business transacted by each of the departments or divisions into which the operations of the Cooperative shall be divided by the Board for purpose of allocation.

ARTICLE XII. COMMITTEES

Section 12.1. Board Committees.

The Board of Directors has the authority to appoint standing committees to deal with the management and operation of the Cooperative.

Section 12.2. Mandated Committees.

The following committees shall be established by the Board and Members appointed annually to function as needed:

(a) The election committee (pursuant to Section 8.3(a))

(b) The nominating committee (pursuant to Section 8.3(b))

(c) A committee assigned the function of Member and nonmember education

(d) A committee assigned the responsibility for consideration of Bylaw changes.

Section 12.3. Recruitment of Committee Members.

The nominating committee shall aid in the recruitment of committee Members, subject to Board approval.

Section 12.4. Member Committees.

Any duly called membership meeting, may by the majority vote of those present and voting, appoint a committee to report back at a subsequent meeting.

ARTICLE XIII. PROPOSITION 215/SB420 COMPLIANCE

Section 13.1. Business Licenses, Sales Tax, and Seller’s Permits.

It is the Cooperative’s and all Members’ understanding that sale of marijuana is illegal under both federal and state law. Accordingly, it is the Cooperative’s and all Members’ legal position that sales tax is not a component of any transaction between the Cooperative and its Members. Notwithstanding their legal position, because the State Board of Equalization has determined that medical marijuana transactions are subject to sales tax, regardless of whether the individual or group makes a profit, and those engaging in transactions involving medical marijuana must obtain a Seller’s Permit, the President shall be responsible for obtaining a Seller’s Permit.

Section 13.2. Membership Application and Verification.

When a patient or primary caregiver wishes to join the corporation, the applicant must complete a written membership application to help ensure that marijuana grown for medical use is not diverted to illicit markets. In addition, the corporation shall:

(a) Verify the individual’s status as a qualified patient or primary caregiver. Unless he or she has a valid state medical marijuana identification card, the corporation shall have personal contact with the recommending physician (or his or her agent), and verify the physician’s identity, as well as his or her state licensing status. Verification of primary caregiver status shall include contact with the qualified patient, as well as validation of the patient’s recommendation. The corporation shall retain a copy of the physician’s recommendation or identification card, if any;

(b) Have the individual agree not to distribute marijuana to non-members;

(c) Have the individual agree not to use the marijuana for other than medical purposes;

(d) Maintain membership records on-site or have them reasonably available;

(e) Track when members’ medical marijuana recommendation and/or identification cards expire; and

(f) Enforce conditions of membership by excluding members whose identification card or physician recommendation are invalid or have expired, or who are caught diverting marijuana for non-medical use.

Section 13.3. Acquisition, Possession, and Distribution of Only Lawfully Cultivated Marijuana.

The corporation shall acquire marijuana only from its constituent members, because only marijuana grown by a qualified patient or his or her primary caregiver may lawfully be transported by, or distributed to, other members of a corporation or cooperative. The corporation may then allocate it to other members of the group. Nothing allows marijuana to be purchased from outside the corporation for distribution to its members. Instead, the cycle should be a closed circuit of marijuana cultivation and consumption with no purchases or sales to or from non-members. To help prevent diversion of medical marijuana to non medical markets, the corporations shall document each member’s contribution of labor, resources, or money to the corporation. They also should track and record the source of their marijuana.

Section 13.4. Distribution and Sales to Non-Members are Prohibited.

Neither the corporation nor any of its members shall distribute medical marijuana to any person who is not a member in good standing of the organization. The corporation may credit its members for marijuana they provide to the corporation, which it may then allocate to other members. Members also may reimburse the corporation for marijuana that has been allocated to them. Any monetary reimbursement that members provide to the corporation shall only be an amount necessary to cover overhead costs and operating expenses.

Section 13.5. Permissible Reimbursements and Allocations.

Marijuana grown for and by the corporation for medical purposes may be:

(a) Provided free to qualified patients and primary caregivers who are members;

(b) Provided in exchange for services rendered to the corporation;

(c) Allocated based on fees that are reasonably calculated to cover overhead costs and operating expenses; or

(d) Any combination of the above.

Section 13.6. Possession and Cultivation Guidelines.

If a person is acting as primary caregiver to more than one patient under California Health & Safety Code section 11362.7(d)(2), he or she may aggregate the possession and cultivation limits for each patient. Any patient or primary caregiver exceeding individual possession guidelines should have supporting records readily available when:

(a) Operating a location for cultivation;

(b) Transporting the groups medical marijuana; and

(c) Operating a location for distribution to members of the corporation

Section 13.7. Security.

The corporation shall undertake its best efforts to provide adequate security to ensure that patients are safe and that the surrounding homes or businesses are not negatively impacted by nuisance activity such as loitering or crime. Further, to maintain security, prevent fraud, and deter robberies, the corporations shall keep accurate records and follow accepted cash handling practices, including regular bank runs and cash drops, and maintain a general ledger of cash transactions.



Amendments to Bylaws of Shangri La Care Cooperative, Inc.

Based on the not less than two-thirds vote of the voting members of Shangri La Care Cooperative, Inc. (the "Corporation"), the Corporation's Bylaws are hereby amended as follows:

Section 13.8. Title to Medical Marijuana.

Undivided title to any and all medical marijuana obtained by the corporation for the use and benefit of its membership shall be held by the members in an amount reasonably necessary for the current medical needs such that when the member obtains medical marijuana from the corporation the transaction is not a sale because title does not change.

Section 13.9. Non-Owner Members.

The corporation shall admit into its membership persons who otherwise meet all of the other requirements of becoming a member of the corporation but who do not desire to obtain an ownership interest in the corporation. The Board of Directors shall establish rules and procedures for treatment of non-owner members of the corporation.


Meeting Calendar

What: POT LUCK (Food Only)
When: Saturday, July 29th, 2017
Time: 1:00 - 2:30pm Voting members only
3:00 - 5:00pm Non-Voting and public
Place: Wellness Center in Ojai
408 Bryant Circle, Suite K-1
Ojai, CA 93023

We will be opening soon. Thank you for your support and for being so patient.

Events Calendar

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