Advocate Lawyer Warns That 'Capitalist' Dispensaries May Close

Jim Finnel

Fallen Cannabis Warrior & Ex News Moderator
Oakland lawyer William G. Panzer came to last weekend's International Hemp & Cannabis Expo aptly wearing a medical pot tee-shirt and handing out business cards printed on hemp fiber paper.

Then the co-author of the Proposition 215 medical marijuana law and winner of a High Times Magazine "Freedom Fighter" award told dispensary officials and wannabe pot shop operators they may well be breaking the law.

He also predicted there could be a major downsizing in the medical marijuana trade. Panzer said California courts could order closure of scores of cannabis outlets that don't operate as strict, non-profit, socialist-style collectives.

"A dispensary is a place where cannabis is distributed," he told the convention crowd at the Cow Palace in Daly City. "It can be set up as a lawful cannabis collective or as an illegal retail sales outlet. I think the way most dispensaries are set up, they are retail operations.

"The truth is, if you set up lawfully, you're not going to make money. And there are a lot of people for whom it is more important to make money than to serve patients."

Panzer represents dispensaries and advises them on how to organize lawfully as patient networks. But the sharp words of the leading medical marijuana advocate seemed to buttress a hard-line view expressed by Los Angeles City Attorney Carmen A. Trutanich.

Arguing that dispensaries are illegally operating as retail stores, Trutanich has won two court injunctions against Los Angeles dispensaries. Judge James C. Chalfant this month ordered a popular Venice Beach dispensary, Organica, to stop selling or distributing marijuana. In January, Chalfant's injunction barred sales at the Hemp Factory V in Eagle Rock.

The L.A. actions have been assailed by the patient advocacy group, Americans for Safe Access, as violating "the letter and spirit" of state law and the city's dispensary ordinance.

Prosecutors in San Diego County have taken a similar view as those in Los Angeles, but have lost twice in recent prosecutions of medical marijuana operators.

Panzer said a state appellate court may ultimately issue a ruling that may force many improperly run dispensaries to close.

He counseled people operating dispensaries to follow the mandates of a "closed-circuit" patient collective. Under such rules, all marijuana is cultivated and distributed by medical marijuana users who are members of the collective. Any payments for pot are reimbursement for services provided by the non-profit collective.

As one woman asked Panzer about potential income tax deductions from a medical pot business, he abruptly cut her off.

"I'm counseling people not to be a business," he told the crowd. "You have to stop thinking that it is a business. There is no buying and selling."

In an interview, he said many marijuana dispensaries are operating correctly and legally. But he said there are also pot shops set up as "sole proprietorships and limited partnerships that are owned by somebody. You see advertisements to sell them.

"That's not socialism. It's capitalist."


NewsHawk: User: 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: sacbee.com
Author: Peter Hecht
Copyright: 2010 The Sacramento Bee
Contact: Contact Us - sacbee.com
Website: Weed Wars: Advocate lawyer warns that 'capitalist' dispensaries may close
 
A LA dispensary just sold me an 1/8th of Bubba Kush in exchange for $65 cash. Is Trutanich saying this is illegal? I bought. The dispensary sold.
 
Cali's law is close to the same as Washington's law. Dispensaries are illegal. There is nothing in the law that allows for SALES of MMJ. The voters are either going to have to address that issue or pass the legal MJ intiative to remedy this.
It would be nice if the state would just look the other way on an unconstitutional prohibition of MMJ, and sometimes they do, bet we need something in the laws that protects citizens from oppresive government we live under.
And thats the fact in these matters, it isn't that there is anything illegal about MJ its that our own government is forcing up to buckle under to there will.
 
Then the tax on marijuana is illegal as there is no profit as well the state of california could be held accountable for recieving illegal drug money in the form of Taxes.
 
I apologize to my community for buying marijuana. It's just that I have smokes all I grew. I just paid the price the dispensary charged me. Was the dispensary supposed to give it to me?
How is the prohibition of MMJ unconstitutional? There is nothing in the constitution about marijuana but I do have the right to pursue happiness. If it is unconstitutional we should contact the ACLU
 
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