What to Expect for 2018 -FAQs

Prop 64 regulations are put into place “officially” on January 1, 2018 and with it brings lots of changes. We’ve put together this guide to help you more easily navigate changes to our business model as well as information you should know.

If you have a question we haven’t addressed, please reach out to us so we can answer it and add to this page.

Cannabis is legal now so why do I need to renew my recommendation?
Cannabis is legal for adult use in California now and sales of same go into effect beginning January 1, 2018. SB94, which has rolled both Prop 215 (medical use law) and Prop 64 (adult use law) under a single regulatory framework mandate that a Dispensary must apply for either a medical or adult use (recreational) cannabis license.

RX-C will not have an immediate opportunity to apply for a license to sell cannabis for recreational purposes**, but will continue to operate under Prop 215 and the new regulations that apply to medicinal cannabis sales.

Therefore, we will continue to require a recommendation from all customers who wish to conduct business with us.


Why can’t I just come in and buy it?
At this time, we are delivery only. Until a local municipality in north county allows for us to apply for a license to set up a walk-in dispensary, we will continue with our current model. We will continue to offer product consulting services at our new location in January.


I can’t have a delivery to my home, can you just meet me on the corner?
For several reasons, the answer to this question is no. Our drivers must be able to come into your home or office so we may complete the transaction in private. If you are unable to receive a delivery in your home/office, for your own reasons, we will be unable to serve you. This rule includes asking us to call on arrival and meet you “out front”.


I read that if I have a recommendation I won’t have to pay sales tax. Why do you charge tax?
Sadly, cannabis is not treated the same way as your prescription and we are required by state law (since 1996) to collect and pay sales use taxes to California and local municipalties. The exemption from having to pay local sales tax applies only if you hold a state issued MMJ card (click here to read more on this topic). Upon presentation of a state card, we are happy to exempt you from the tax as required.


Is it true that all sales will include a 15% excise tax in addition to the sales tax?

Yes. The new law requires retailers to collect a 15% excise tax on all purchases. Therefore, in addition to the local use sales tax, you will see this new tax on every purchase. We regret that this was slipped into the language of the new law; we don’t agree that medical use should be subject to the tax, but we must abide by it to be in full compliance.


Will prices increase?
This is a tough question because we don’t have solid answers yet from our suppliers. The legislature just published the final regulations in late November and we’re all still digesting and understanding the various parameters in which we will now be required to operate. We promise you this: We will do our damndest to continue to keep prices as low as possible. If you haven’t already signed up for our Refill Delivery Program, now is a great time.

 

Other changes to expect based on the new regulations:

No Freebies – The new law mandates we are not allowed to give away incentive product. Therefore, effective January 1, 2018, we will no longer offer a Freebie item for purchases of $100 or more, our volume discount and Member Rewards program discontinued.

Daily Limits – The new laws set maximum daily purchases for medicinal users at 8 ounces (or 224 grams total combined products) vs 28 grams for recreational users. This is another good reason for you to maintain your medical cannabis recommendation.

15% excise tax on all purchases – The new law requires retailers to collect a 15% excise tax on all purchases. Therefore, in addition to the local use sales tax, you will see this new tax on every purchase. We regret that this was slipped into the language of the law; we don’t agree with it, but we must abide by it to be in full compliance.

Testing and labeling – For those of you who have been with us for some time, you know that quality and safety are our top priority. We are pleased to know that the new laws will now require all products to pass consistent testing protocols and have state mandated labeling. There is a six month grace period for the industry to transition, so expect to see changes in the way products are packaged. We’ll continue to educate on what it all means as it rolls out.

Age requirement – As has always been our policy, we will continue to serve adults 21 or over with a valid cannabis recommendation. Parents with children 21 or under who wish to administer products to children will be required to supply us with a caregiver recommendation.

 

California NORML has been a great resource for four decades. This page is full of very useful and concise information with respect to the new world order of cannabis legalization.

**no city in North County San Diego are currently offering regulated access.