A recent bill out of the California state house would make marijuana compassionate-care programs exempt from the substantial state taxes on the medical cannabis that they supply to patients in need. SB 829 corrects a hole in Proposition 64, which saddled these not-for-profit organizations with taxes. The Compassionate Use Act of 1996 made medical marijuana legal in California, which spurred the birth of compassionate-care programs for patients with serious health issues and financial restraints. According to NORML, these organizations have been able to donate product and function tax-free up until this year when recreational marijuana became legal.
What did recreational legalization have to do with medical marijuana patients and associated care programs? As our marijuana attorneys can explain, after voters approved Proposition 64, government representatives and officials began ironing out how the recreational program would work. It was determined a set of guidelines was needed that could pull together the medical marijuana industry (which had been active for 20 years) with the new recreational cannabis law. That is when MAUCRSA (Medicinal And Adult-Use Cannabis Regulatory Safety Act) was born. What was intended to streamline rules and make things easier for business owners, customers, and law enforcement officials ended up strapping medical marijuana institutions with a significant number of regulations they previously did not have to follow. Continue reading