R.I. Senate Approves Bill for Dispensaries For MMJ
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R.I. Senate Approves Bill for Dispensaries For MMJ
Posted by CN Staff on April 30, 2009 at 06:16:29 PT
By Katherine Gregg, Journal State House Bureau 
Source: Providence Journal
Providence, R.I. -- For the second year, the full state Senate has approved a bill to allow licensed dispensaries — known as “compassion centers” — to sell marijuana to the hundreds of people in Rhode Island who have been prescribed the drug for medicinal purposes.The bill now goes to the House, where a committee is slated to vote on a matching bill on Thursday.
State law already allows doctors to prescribe marijuana for use by people with severe, chronic and debilitating illnesses, such as cancer, Hepatitis C and HIV. There are currently 681 people registered to do so with the Department of Health.But that law, adopted in 2006, does not provide a legal avenue for any of these registered patients — or their 581 registered caregivers — to obtain the drug, even though one Warwick man has publicly acknowledged taking part in a group, known as the Rhode Island Compassion Club, that has grown and supplied the drug to “hundreds” of people over the last three years with a permit from the state Division of Taxation that is currently under review.A spokeswoman for Governor Carcieri’s office confirmed last night that the permit application filed by Kirk Manter on behalf of the Compassion Club “did list his intention to sell medicinal marijuana.” Spokeswoman Amy Kempe, said: “We believe it was an administrative mix-up … and I would like to stress that this gentleman cannot be selling marijuana in a retail environment because it is illegal under the state statute.”It was against this backdrop that the Senate voted 35 to 2 on Wednesday in favor of the bill to license up to three marijuana dispensaries, after the sponsor — Sen. Rhoda Perry, D-Providence — told colleagues the list of supporters, which includes both the Rhode Island Medical Society and the Rhode Island Council of Churches, has grown over time while it appeared to her that the state police had dropped their opposition.The vote was immediately hailed by the Rhode Island Patient Advocacy Coalition as a victory for seriously ill patients who, in many cases, “are too sick to grow their own medicine, and don’t have a trusted friend or family member to appoint as a caregiver.”Coalition spokesman Jesse Stout said the bill would make Rhode Island the second state to license and regulate “nonprofit compassion centers,” after New Mexico, which started licensing producers last month. And he said the Obama administration’s pledge not to raid such facilities ends “concerns about federal interference in Rhode Island.”But Carcieri vetoed the bill last year, and Kempe said the state police remain “opposed to this legislation as it weakens the laws governing, and public perception, of an illicit drug.” Kempe said they also have “serious concerns with how the compassion centers would be set up and regulated.”Those concerns were echoed by the two senators who voted nay: Michael Pinga, D-West Warwick, and Paul Jabour, D-Providence.Pinga said the customers would be easy marks for thieves. Beyond that, he wondered: “How are you going to control the trafficking? What if they become traffickers themselves? I am not saying all of them, but I mean, now they have it legally. What if they sell it to their friends?”Added Jabour: “I am sure there are actual people out there that see the passage of this bill, although well-intended, as an opportunity for some economic gain and profit.”One 55-year-old Narragansett man has already filed papers with the secretary of state to reserve the corporate name: “Compassion Center RI.”In an interview on Wednesday, incorporator David Phaneuf said he is not a patient or medical professional, but rather a businessman who has had “various management positions within Home Depot, US Remodeling, and At Home Services,” who sees passage of the bill as both a business opportunity and chance to provide “safe access to medical cannabis for registered patients.”Read the full text of the Bill: Providence Journal, The (RI)Author:   Katherine Gregg, Journal State House Bureau Published: Thursday, April 30, 2009Copyright: 2009 The Providence Journal CompanyContact: letters projo.comWebsite: Articles:Senate Backs Medical Marijuana Stores OKs Centers To Sell Medical Marijuana
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Comment #11 posted by TerryClimber on October 14, 2009 at 15:25:38 PT
Why I Don't Buy Medical Marijuana Inc. 
Medical Marijuana Inc. (MJNA) is truly a forward looking company.Looking back, it began in 2003 as Berkshire Collection, Inc. (BKCL) of Ontario, Canada. According to a complaint filed 12 Jun 09 by the U.S. Securities Exchange Commission (SEC) against Blackout Media (BKMP) and its principal Sandy Winick of Toronto, Berkshire Collection was one of 59 subsidiaries spun off from Blackout Media Corporation, formerly known as First Canadian American Holding Corporation, (FCDH).The SEC complaint alleges these 59 subsidiaries had no legitimate business purpose and were just "public company shells", and that Winick profited at least $3.2 million from selling shares in these "shells" from 2004 through 2007.On 23 May 05 Berkshire Collection changed its jurisdiction to Oregon, at the same time issuing a 1 for 1,000 reverse split.I have never before in my life seen a 1 for 1,000 reverse split. A reverse split is typically a last ditch effort to prevent a company from being delisted on an exchange. According to MSN Money, "reverse splits are like a message from management that the underlying business trends are so rotten, they won't be enough to get the stock price up to snuff." Small shareholders, those holding less than 1 share after the reverse split, are cashed out. They're lucky if they get a penny on the dollar.On 31 Jan 2007 Berkshire Collection changed its name to My Newpedia Corp (MYNW). This incarnation lasted until June of 2008 when it issued 211,926,840 shares of common stock, realizing $100,000. Then My Newpedia changed it's name to Club Vivanet, exchanging 12 shares of MYNW for 1 share of CVIV. Then the merged entities, now named Club Vivanet (CVIV), "took back" 210,117,998 shares in a 1 for 20 reverse split and posted a stunning net profit of $26,040 for 2008.The Statement of Operations found on page 16 of the Annual Report for Club Vivanet for 31 Dec 08 states that it spent $751,359 on sales and marketing in order to post a profit of $26,040 on revenue of $818,992. While this was more than double the net profit of $12,624 for the previous year, it doesn't seem particularly forthcoming to term the growth "meteoric" as Perlowin does repeatedly.In April of 2009 Club Vivanet (CVIV) became Medical Marijuana Inc. (MJNA):We thought at first we'd call our corporation Marijuana Inc. But when you say to someone ... you're in the Marijuana Business, you do get that weird, kinda strange look. But when you say 'We're in the Medical Marijuana Business' ...I don't care where I am, everyone's interested. Not only are they interested, sometimes they're passionately interested because they've heard the stories and they think people should have the freedom to choose the medicine that really does help them.On 25 Mar 09, the day the name change was filed, the stock was worth 4 cents. The name change and 10 for 1 forward split occurred on 28 Apr 09. The day before the split and name change CVIV closed at 22 cents. The day after, MJNA closed at 62 cents. It has trended downward since.Perlowin explains it like this, pointing out he got out of prison 19 years ago:I was the largest marijuana smuggler in West Coast history. The media dubbed me the King of Pot. As the newspapers said, I had a fleet of boats larger than most country's navies, and that was probably true. Made $100 million bucks by the time I was thirty. And then I went to jail for nine years and got out and made some huge businesses in the phone card and international telecom business. We've always had meteorically growing businesses after I got out of prison. Well, before I got out of prison too...Just look at what happened to our stock from day one and you can see we sort of know know what we're doing in this industry.He explains that he is "monetizing" the public's desire to legalize marijuana and that buying stock in his company is casting a vote for the legalization of marijuana.When Obama and the attorney general Holder said that they'd no longer interfere with state laws on marijuana issues, all of a sudden dispensaries and collectives and co-ops started popping up like weeds all over California ... and, all of a sudden, legitimate business people started getting involved and wanting to get involved. And then "we" come along...This is one of those statements were you don't really know where to begin.What is this "all of a sudden" legitimate business people are getting involved? Is he saying those dispensaries and co-operatives that have been doing it for years and who built the industry he finds so exciting are not "legitimate business people"? What does this say about The Green Cross - in business in San Francisco for five years and featured in June as an example of how medical marijuana had become mainstream? And, by the way, they've all been using plastic cards of all kinds for years: debit, credit, stored value, ID, and so forth. A manager of one dispensary told me 5 years ago, "Bank of America loves us."Are we also supposed to believe that the "legitimate business people" who have been waiting for Obama to start the green rush before they got involved will not have the wherewithal to set up a business account with, oh, Bank of America or Wells Fargo, but instead will be "cash based"?While Perlowin wasn't really sure if New Mexico had passed a medical marijuana law or not and was astonished at what he found when he came to California in February and told his doctor he had insomnia so he could get in a dispensary and see what it was like, he assures us he is the one to tell us all how to do it.I actually believe New Mexico is one of the places - don't quote me on that because my big focus is on marijuana, on California - but I think New Mexico is one of the places where it's legal. You can look at any of the movement websites like NORML or - that's a great one, - and they really keep you up-to-date on what's going on in each state. So I think it is. And in some places you can have co-ops, like in Colorado and California, and some places you're allowed to grow your own. There's no standardized laws or rules, which for a public company like us makes it really lucrative, or potentially lucrative. Because we can help come in and standardize the industry and help regulate the industry. Again, from the bottom up. Typically a company like this can move much quicker than the government can.It's all a mish-mash. Every county in California is different from every city. And every state has different rules. And if you standardize it - it will take a few years - but that's one of the things that we're here to do, is to help standardize it. And again, starting with the most lucrative of all, the tax remittance.And he's going to begin by re-assembling his old organization, from administering taxes paid by the sick and dying for medicine. When asked if he has any plans to own a dispensary:"If Nevada ever legalizes it - it'll be on the ballot in 2012, November - I would love to have a dispensary inside a casino, growing the marijuana plants..."Obviously, Medical Marijuana Inc. CEO and King of Pot Bruce Perlowin didn't have "medical marijuana" in mind when he said this. When the host points out this has the appearance of exploitation he replies:Yeah. So in that case, yeah. In the beginning. no. In the beginning all we want to do is provide all the tools for the dispensaries or the co-ops. In fact, we're going to be doing seminars on how to open up a dispensary and we want management contracts with the dispensaries, not just for the tax card but for inventory control, for grading and standardizing the marijuana for software, for the doctors to use, and evaluating whether sativa or indica should be used for glaucoma vs. cancer vs. MS vs. headaches..."In the meantime, he hopes to buy "homesteads" of 1 to 5 thousand acres all over the country and grow vegetables or something on them until hemp is legalized, and then convert them to hemp farms. All this from administering taxes paid by the sick and dying for medicine.It's an intriguing business model. He states they've decided 60% of the profit will go to the company, and 40% to charity.My job is to empower people, and specifically (because of another model) empower women. 40% of our profits goes to The Global Family and WE (Women Empowerment) because their job is to make sure this wealth goes all over the world to create a thousand millionaire women, who will create a thousand millionaire women each, and then they take over the world in what's known as a global coup, but it's really a coochie coo..Again, it's difficult to figure out where to begin. Seems a bit sexist (not to mention boorish) to me, but what do I know? Besides there are more pressing issues. For instance, just ten minutes previously he stated 40% of "revenues" would be going to the local community: 10% to schools and or the women's council (because women won't take bribes and kick-backs, but men will); 10% to another local problem like fire or police (speaking of bribes); 10% to another city in America; and 10% to some international problem.Obviously, how much of what goes where isn't really important. All that's important is that 40% of the stockholders earnings from administering taxes paid on medicine by the sick and dying will go to some charity somewhere. No doubt medical marijuana patients will get a warm glow knowing their disability stipend is going to increase the supply of female millionaires in third world countries.Among a nebulae of disconnects is that it never occurred to Medical Marijuana Inc. that there are medical marijuana patients that can't afford medicine, that are losing their jobs and their homes, that can't pay lawyers and court costs. And a lot of them are men.Perlowin says he doesn't smoke marijuana, except rarely.My prescription's for insomnia. And I don't know if I have insomnia, I'm so excited about what we're doing I can't sleep at night so I jump up and email. I go to sleep. I wake up. I email. And so I'm thinking, 'I really want to go see these dispensaries but you can't get in without a medical condition and I don't want to lie about a medical condition. I won't do that. I'm CEO of a public company, I've got to keep everything really straight. So, I'm thinking, 'wait a minute...' and if I don't have my computer I'm sitting there awake all night, just thinking. So that's clinical insomnia. That's insomnia. So I got my medical marijuana card for being too excited. But I haven't used my marijuana medicine yet because if I do I won't answer my emails all night.As for the morality of taxing medicine? As for what happens when The Medical Marijuana Patient Protection Act (HR 2835) is passed? As for the fact that you don't get a "prescription" for medical marijuana, you get a "recommendation"?HR 2835 will move marijuana from the Controlled Substances Act's Schedule I to Schedule II. Among other things this will mean marijuana will meet the legal definition of medicine and that doctors can prescribe it the same as pharmaceuticals. And this means it will not be taxed in states such as California where the people think there's something sleazy and just plain wrong about taxing medicine.Well, maybe by then Perlowin will have his upscale pot emporium in some swanky Las Vegas casino.
Why I Don't Buy Medical Marijuana Inc. 
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Comment #10 posted by FoM on May 01, 2009 at 09:03:56 PT
Update: MMJ Centers Bill Headed for House Vote
Medical Marijuana Centers Bill Headed for House Vote***By Cynthia Needham, Journal State House Bureau Friday, May 1, 2009PROVIDENCE — A proposal that would create licensed dispensaries to sell marijuana to those who’ve been prescribed the drug for medicinal purposes is headed for an official vote on the House floor in the coming weeks, having cleared a final committee Thursday night.Establishing the so-called “compassion centers” would allow the hundreds of Rhode Islanders legally allowed to use the drug under a relatively new state law to safely and affordably purchase it, supporters say.Though lawmakers in 2006 legalized use of medical marijuana for those who suffer from certain chronic, debilitating illnesses, they never provided a legal avenue to obtain the drug, drawing concerns about safety and accessibility.Thursday night’s vote, which came just 24 hours after the full Senate OK’d the measure, was lauded by patients and legislative supporters. “This is about safety,” said patient Ellen Smith, of Scituate. “When you’re feeling sick, the last thing you want to worry about is where you will safely get your medicine.”“Our intent was not to send people out to deal with drug dealers,” said Rep. Joseph McNamara, D-Warwick, who chairs the House Health, Education and Welfare Committee that approved the bill. “…This legislation allows people to have a safe, viable and regulated alternative to that. In the past, we had some questions related to the security of the compassion centers which I think have been addressed.”Copyright: 2009 The Providence Journal Company
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Comment #9 posted by greenmed on April 30, 2009 at 14:50:35 PT
It will be interesting to see how these issues shake out (no pun intended:) I am beginning to see the foresight of Mr. Perlowin's business venture. The web site is now online: wonder how dispensaries in California handle taxes.
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Comment #8 posted by FoM on April 30, 2009 at 14:38:56 PT
Thanks so much for the information. That seems very understandable to me.
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Comment #7 posted by greenmed on April 30, 2009 at 14:26:42 PT
IRS and income taxes
Until cannabis is rescheduled, medical cultivators cannot be expected to pay income tax on their compensation. To do so would self-incriminate. Maybe the dispensaries could collect (withhold) tax for growers and pay for them, by proxy.The dispensaries themselves should be considered charitable organizations as they are providing a needed (and state-authorized) service not met by the government. That would make them tax-exempt I think.
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Comment #6 posted by greenmed on April 30, 2009 at 14:02:20 PT
Dispensaries as NPOs
The dispensaries would be able to work as non-profit or not-for-profit organizations and still pay their employees (including growers, perhaps as independent contractors).(The) primary difference between a nonprofit and a for-profit corporation is that a nonprofit does not issue stock or pay dividends, ... and may not enrich its directors. However, like for-profit corporations, nonprofits may still have employees and can compensate their directors within reasonable bounds., according to the IRS,If a tax-exempt organization (EO) has employees, the EO is responsible for Federal Income Tax Withholding and Social Security and Medicare taxes. In addition, some EOs are responsible for Federal Unemployment Tax.Wikipedia "External link"
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Comment #5 posted by Hope on April 30, 2009 at 12:03:20 PT
Yes, it does sound like fun, Dankhank.
Also, I agree with your opinion on pharmaceuticals and medicine. Why is that only cannabis medicine must be "Non-Profit"?Non-Profit seems that they should be tax exempt too... but we know that part doesn't apply... and not even the part about medicine being tax free.
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Comment #4 posted by FoM on April 30, 2009 at 11:39:02 PT
It sounds like you had a good time. Welcome home.
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Comment #3 posted by Dankhank on April 30, 2009 at 11:19:33 PT
meds ...
I agree ... why can WalMart and any other drug store make a profit on sales but not Cannabis providers?
In a country that touts the entrepreneurial spirit of it's citizens it seems disingenuous to say only ONE medical drug provider can't make a profit.OT ...
just returned from New Orleans and the first week of Jazzfest.Great music, great performers of all stripes, and interesting food.If you get down thataway, try some Crawfish Monica, Crawfish Etouffee, or even Alligator soup.Great visit with 2 buddies met in 1972/3 in the Army. and great bud.There's still FEMA trailers lightly located in some neighborhoods, damn bush and brownie.peace to all who help one another ...
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Comment #2 posted by George Servantes on April 30, 2009 at 10:18:17 PT
what if you sell your prescription medicine?
It should be treated same as other legal drugs. It's a medicine, a very useful one and should be treated same as any other medicine, regulate it any way you want just let people get their medicine.
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Comment #1 posted by Sam Adams on April 30, 2009 at 09:04:49 PT
Pinga said the customers would be easy marks for thieves. Beyond that, he wondered: “How are you going to control the trafficking? What if they become traffickers themselves? I am not saying all of them, but I mean, now they have it legally. What if they sell it to their friends?”then their friends will get high!  Seems easy enough to understand
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