Collective Cultivation vs. Cooperative Dispensaries

California offers a number of patient-access models.  On one end of the spectrum, Valerie Corral of Santa Cruz founded WAMM in 1992 – the first and only nonprofit corporation licensed to distribute medical marijuana in CA.  WAMM provides cannabis free of charge to a small number of members, while accruing monetary support through fundraising events and charitable donations in a supportive community.  WAMM was raided once by DEA officers during the George Bush era, but no charges were filed. 

The opposite end of the spectrum of medical marijuana providers in CA is exemplified in the case of Charles Lynch who was sentenced to one year and one day in federal prison for five felonies associated with his San Luis Obispo dispensary, Central Coast Compassionate Caregivers.  Lynch was found guilty of conspiracy to possess and possession with intent to distribute marijuana, and “manufacturing" (growing) more than 100 plants, knowingly maintaining drug premises, and selling marijuana to a minor (under federal rules, someone under age 21).  Lynch was licensed to operate his Compassion Center by the local municipality, and none of the federal charges represent violations of state or local law.  However, Lynch faced the possibility of up to 20 years in federal prison due to the amount of marijuana involved – more than 100 kilograms.  Charles Lynch bought marijuana from growers and then sold it to qualified patients.  In comparison, Valerie Corral supplies her group with medical cannabis grown on her personal property, with no actual sales involved.  These main differences between nonprofit collective gardens and commercial dispensaries are crucial in determining the legality of an organization under state laws.        

While the majority of dispensaries in CA are run by non-patients for profit,  Washington’s medical cannabis collectives are run by qualified patients on a nonprofit basis.  Large dispensing organizations rely on large-scale production often provided by illegal commercial growers.  In contrast, collective cultivation provides a limited supply of medicine to a fixed number of long-term members.  Collectives produce medicine “in-house”, directly producing medical cannabis, rather than purchasing black-market marijuana for resale through retail distribution.  

The following is an excerpt from GUIDELINES FOR THE SECURITY AND NON-DIVERSION OF MARIJUANA GROWN FOR MEDICAL USE from the office of CA Attorney General E.G. Brown Jr., August, 2008:

Collectives: California law does not define collectives, but the dictionary defines them as “a business, farm, etc., jointly owned and operated by the members of a group.” (Random House Unabridged Dictionary; Random House, Inc. © 2006.) Applying this definition, a collective should be an organization that merely facilitates the collaborative efforts of patient and caregiver members – including the allocation of costs and revenues. As such, a collective is not a statutory entity, but as a practical matter it might have to organize as some form of business to carry out its activities. The collective should not purchase marijuana from, or sell to, non-members; instead, it should only provide a means for facilitating or coordinating transactions between members.

 

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