Did the state regulations change “Not for Profit” to “For Profit”

The issue of profit under the Medical Marijuana Regulation and Safety Act remains unclear. Neither Senate Bill 643 (Author: McGuire), Assembly Bill 266 (Author: Bonta), and Assembly Bill 243 (Author: Wood) which collectively make up the “Medical Marijuana Regulation and Safety Act” addressed the issue of profit. To make a change from the “not for profit” model would require the amendment or repeal of Health and Safety Code section 11362.765 which specifically states that no person or group may cultivate or distribute marijuana in California for a profit.

If it was the intent of the Legislature to change the California medical cannabis “not for profit” model to a “for profit” model under the “Medical Marijuana Regulation and Safety Act” then such intent must be made clear and unequivocal by the amendment or repeal of Health and Safety Code section 11362.765.

There will be an opportunity to do so in the cleanup legislation anticipated in the 2016 Legislative Term.  Stakeholders have urged that the “not for profit” issue of Health and Safety Code section 11362.765 be directly addressed in the 2016 clean up legislation.  Being clear and unequivocal on the issue of “profit” will only provide assistance to all involved in the regulation of medical cannabis in the state of California.

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