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I. Cream Premium Cannabis Clubs: Cream Premium Cannabis Clubs (hereinafter “Cream” or “Club”) is a non-charitable, not-for-profit private membership club established to assist members in acquiring cannabis at cost, without compensation.
II.Marihuana Regulation and Taxation Act (MRTA): New York State has recently implemented legislation allowing for the possession and use of cannabis for all people twenty-one (21) years or older. Pursuant to the MRTA, non-compensatory transfers of up to three (3) ounces of cannabis are lawful. The MRTA also contains a “safe harbor” provision that, among other things, allows for the use of “property” to facilitate such transfers among individuals who are at least twenty-one (21) years old.
III.Defined Services: Cream Premium Cannabis Clubs is a private club that provides a marketplace for members to transfer cannabis and cannabis products among themselves. Members must be at least 21 years of age and submit to a 100% identification check. All applicable taxes are collected by the Club and paid over to New York State and local governments.
IV.Cream Premium Cannabis Clubs Does Not Sell Cannabis Products: Cream Premium Cannabis Clubs does not engage in direct retail sales or indirect retail sales of cannabis as these terms are defined under New York law. Cannabis products are not given to Club members, and no cannabis, cannabis product, cannabinoid hemp, or hemp extract product accompanies the transfer of any tangible or intangible property or the provision of any service, including or a benefit of a membership to a club, association, or other organization.1
V.Illicit Cannabis: Cream Premium Cannabis Clubs does not possess or transfer “Illicit Cannabis.”2
VI.Illicit Cannabis: All Club members understand that Cream Premium Cannabis Clubs will not receive financial compensation for acquiring any cannabis product distributed between or among our members. Cream Premium Cannabis Clubs was established to help club members safely obtain cannabis for a reasonable price and lawfully transfer that cannabis to one another. The Club and its employees function as intermediaries and will only possess and transfer cannabis as allowed under New York State Law. The Club will perform no services other than those expressly agreed upon in this agreement.
VII.Membership Fee: You agree to a membership fee required to keep your status as a Club member; the assignment to the Club of the right to acquire cannabis products; the assignment to the Club of the right to negotiate a fair market price for cannabis products; and the assignment to the Club to calculate the cost of all services and determine the cost of each item procured.3
Acknowledgment of Risk, Release, and Waiver of Liability:
1 See N.Y. Cannabis Law § 3 (46): ‘Retail sale’ means to solicit or receive an order for, to keep or expose for sale, and to keep with intent to sell, made by any licensed person, whether principal, proprietor, agent, or employee, of any cannabis, cannabis product, cannabinoid hemp or hemp extract product to a cannabis consumer for any purpose other than resale. 46-a. ‘Indirect retail sale’ means to give any cannabis, cannabis product, cannabinoid hemp, hemp extract product, or any product marketed or labeled as such by any person engaging in a commercial business venture or otherwise providing or offering goods or services to the general public for remuneration for such goods and/or services, where any such cannabis, cannabis product, cannabinoid hemp or hemp extract product, or any product marketed or labeled as such, accompanies (a) the sale of any tangible or intangible property; or (b) the provision of any service, including but not limited to entry to a venue or event, or a benefit of a membership to a club, association, or other organization.” 2 See N.Y. Tax Law § 492(g): “‘Illicit cannabis’ shall not include any cannabis lawfully possessed in accordance with the cannabis law or penal law” (emphasis added).
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