ARTICLE 7. Powers [26227. - 26227.9.]

Cal. Business and Professions Code - BPC 7.

in effect

Cal. Business and Professions Code - BPC § 26227. Section 26227.

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.

Cal. Business and Professions Code - BPC § 26227.1. Section 26227.1.

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

Cal. Business and Professions Code - BPC § 26227.2. Section 26227.2.

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.

Cal. Business and Professions Code - BPC § 26227.3. Section 26227.3.

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.

Cal. Business and Professions Code - BPC § 26227.4. Section 26227.4.

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.

Cal. Business and Professions Code - BPC § 26227.5. Section 26227.5.

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.

Cal. Business and Professions Code - BPC § 26227.6. Section 26227.6.

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

Cal. Business and Professions Code - BPC § 26227.7. Section 26227.7.

An association may do any of the following anywhere: (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) That which is conducive to, or expedient for, the interest or benefit of the association. (c) Contract accordingly. (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) 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.

Cal. Business and Professions Code - BPC § 26227.8. Section 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) 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.

Cal. Business and Professions Code - BPC § 26227.9. Section 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) 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.

Cal. Business and Professions Code - BPC § 26227.75. Section 26227.75.

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.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026