California Senate Moves to Crush Medical Marijuana Profits

A bill approved by the California state senate on Monday would further restrict the state’s medical marijuana industry by requiring the end of all for-profit sales of the drug to licensed patients and caregivers.

The proposed law would go further than the state attorney general’s non-binding guidelines issued in 2008, making the not-for-profit collective model mandatory for dispensaries. Provisions in S.B. 439 would also place even greater records-keeping requirements on dispensary owners, who would still be entitled to reasonable compensation for their time and efforts. In theory, that should allow tax enforcers to peer more closely at dispensary finances to ensure shady businesses are not taking profits while reporting none.

“Everybody benefits from tighter regulations,” Chris Lindsey, legislative analyst for the Marijuana Policy Project, told Raw Story. “Where you run into problems is when you have a law that can be interpreted several different ways, which means that people trying to comply with the law don’t know where they stand.”

– Read the entire article at Raw Story.



  1. Anonymous on

    Dale is correct. It will actually allow for profit business models now.

    “(2) A collective may be organized as any statutory business entity permitted under California law.”

  2. VIPelle on

    Dale Gieringer of CaNORML writes:

    “This is really misleading. In fact, the Steinberg bill has language that makes it easier for business entities to deal in MMJ. ‘For-profit’ businesses have always been beyond the legal pale under SB 420. Steinberg’s bill wouldn’t change that, but not-for-profit entities would be better protected under the law.”

    There is currently nothing in California state law legalizing sales of medical marijuana and all collectives must be nonprofit entities.

  3. Mrs. Ratsrectum on

    Representative Matt Salmon of Arizon and, I think, Hunter Douglas of California have some kind of proposed legislation in mind at the federal level to prevent the IRS from interfering, putting on hold and denying 501(c)4 applications for tea party groups and other conservative groups. They’re not sure if it was the workload that put applications on hold for 2 years or if the Cincinnati office was the only office involved. Well, how would they like to wait 10 years for an answer from the DEA regarding cannabis rescheduling and other shit and delays the DEA pulls?

    My point is that this legislation should contain language the prevents the IRS from denying tax-free status to the non profit cannabis collectives based on federal law by shifting from federal law to community, local and state standards, similar to how pornography standards are determined locally. Or the larger non profit could somehow do the banking for the cannabis non profit, owning perhaps all the brick and mortar and hardware items leased to the cannabis non profit, perhaps be empowered to pump money back into the cannabis non profits to get them started up again after the feds keep shutting them down.

    Keep brainstorming. Keep thinking. Sooner or later the prohibitionists will suffer another major loss. It’s just a matter of how much longer the government wants to keep wasting money on cannabis prohibition.

    If, as most people believe, you believe cannabis will be legal in years, then why not save all the money that will have been wasted and all the lives that will have been ruined and lost over that time span?