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Medical Marijuana Ruminations

July 4, 2012
Medical marijuana dispensary on Ventura Boulev...

Medical marijuana dispensary on Ventura Boulevard in Los Angeles, California, U.S.A. (Photo credit: Wikipedia)

The pot calling the kettle something or other: A few years ago, the local newspapers reported at length about the Federal crackdown on California’s medical marijuana growing and distribution industry because of their supposed failure even to comply with the State’s own laws on the subject. The Obama administration’s announced policy at the time was basically not to enforce federal marijuana laws where the operation complied with local state law. Thereafter, the DEA justified their raids operations as being justified even when to many they as overzealous in the interpretation of the policy as well as their execution of it. This prompted a frenzy by the less reflective and knowledgeable left that it was just another example that Obama was just a Conservative in Liberal’s clothing.

Forgetting for a minute, whether the President’s daily national global concerns even allowed him to be more than peripherally aware of one of his agency’s enforcement of Federal Law in a state or the reality that the DEA was riddled with extreme right-wing holdovers on the phony war on drugs, all is not as it seems.

Several years ago as my legal career wound down and my self-confidence plummeted and I inevitably (and mostly happily) slid into poverty, I had involved myself with a number of clients (few of whom paid their bills) interested in entering into the burgeoning Medical Marijuana business. At that time, the few attorneys who claimed to specialize in the area generally advised their clients on the technicalities of the State process and the vagaries of local and Federal enforcement. They, and I as well, developed form books to assist the would-be entrepreneur through the process.

What most of us cautioned our clients about was the clear intention of the law as written to limit the industry to non-profits operating for medical purposes as well as the strict limits on the permitted size of the operation.

English: Medical Marijuana surrounding a vapor...

Of course, as to be expected, the fledgling marijuana millionaire usually was interested only in getting around those limitations and developing ever larger, more efficient and profitable growing and distribution companies thereby reaping some of the huge profits that at that time were going outside our borders or within them to the so-called criminal element who shotgun in hand, guarded their wilderness pot plantations and distributed their wares through shadowy agent on the streets. Some of us attempted to strongly advise them to stifle this ambition since, in terms of Federal enforcement, size matters. Alas, to no avail. They ignored the advice, ignored California’s laws and went big and bold. Thus the Federal crackdown.

Recognizing this addiction by private entrepreneurs to indulge themselves in the ego satisfaction of becoming wealthy plantation owners and the creators of the marijuana version of Sam’s club and its obvious questionable legality and unacceptable risk, I developed an alternative business approach, based upon the compound growth power of fees and financial manipulation.

Instead of going into the marijuana growing and distribution business, I advised my clients and developed the forms and procedures for entering the Medical Marijuana financing and equipment supply business. Briefly it required the prospective grower-distributor, in return for obtaining the financing from the Company, to enter into a contract, much like that used in contemporary franchise operations, requiring them to strictly comply with all laws and regulations and to buy all supplies as well as consulting services from the Company or risk losing their operation. The entrepreneur would then provide the grower-distributor the financing and a turn-key operation including consulting services and contract labor.

Now, of course, through the initiative process, users of marijuana no longer need to provide a medical reason to indulge themselves in the cannabis product of their choice. The law is no less complicated than before. In fact, it is much more so. Now only large well-funded companies can afford to wind their way through the process and provide the host of products that their advertising budgets will persuade the consumer that he or she must have.

2 Comments
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