This article was originally published on the Marijuana Patients Organization site on December 16, 2011.
In recent decisions and actions, Michigan Attorney General Bill Schuette has supported a for-profit medical marijuana system as written in the plain text of the Michigan medical marijuana voter approved ballot initiative. Many States that are more organized and structured in dispensing the medicine like Colorado, have a for-profit system in place. However, California, a State that has a medical marijuana law described by Federal prosecutors as “lax and unstructured”, relies on a not-for-profit model to dispense marijuana to it’s residents.
While no formal opinion has been released by the AG’s office, we have heard from several attorneys across the State that his office, which administers the Michigan Medical Marihuana Act and controls the office that issues business registrations, has only authorized licenses to for-profit applicants that are State approved caregivers. In fact our own application for Marijuana Patients Organization, Inc, a Michigan not-for-profit corporation, had challenges registering with the State.
Initially our not-for-profit application was denied and flagged, assumably for the use of the word Marijuana in conjunction with our non-profit request. Our counsel spoke with the corporate division (ie. Bill Schuettes staff) and explained that we cannot be denied based on our name alone. Several faxes and calls went back and forth, pretty much the same response, “you cant do that, or that, or that, no!”
In short the corporate division (ie. Bill Schuettes staff) rewrote our entire purpose, the section on the form that asks, “what does your entity do?” Instead of waiting any longer fighting the obvious abuses of power, we agreed to the proposed purpose in order to open a bank account, change our mailing address, you know do all the things any respectable organization does before starting. We were explained that not-for-profits cannot be engaged in caregiving duties and the following sentence was absolutely mandatory and made part of our corporations purpose:
The corporation will NOT engage in the growing, distributing, or selling of marijuana.
Had we not asked to be recognized as a non-profit entity, this would not have been the case, and our for-profit entity would have been able to use the standard purpose that most corporations enjoy.
Recently Hon. Daniel O’Brien, a circuit judge from Oakland County asked if profit is protected under the Michigan Medical Marihuana Act, clearly our Attorney General feels it is. The statute points to clear language of income, compensation, and who would dispute that any activity is assumed engaged in a for profit scheme, unless of course you live in China, or the statute is crystal clear. How do we forget all about capitalism, democracy, free enterprise, plain language, all these words we teach fifth graders but easily ignore when there is a not-politically-easy decision to make.
Happy Holidays from your friends at the Marijuana Patients Organization, Inc, a Michigan not-for-profit corporation not engaged in the growing, distributing, or selling of marijuana.