SK3 Group Inc. (SKTO)

[Budd Kind]

On Aug. 25, 2005 the California Attorney General’s office issued new guidelines for medical marijuana enforcement explaining its interpretation of SB 420 and Proposition 215. Although not strictly binding as law, they provide a good indication of how the AG wants to proceed with state enforcement.

“Collectives must serve only verified legal patients, and distribute only to their own members”.

Beyond this, the guidelines specify that collectives should use only marijuana legally grown or obtained by their own members, with no purchases from outside their membership. This requirement is questionable, since there is nothing in state or federal law banning the purchase of marijuana, medical or otherwise, from any source (the law bans possession, not purchase, and possession is protected under Prop. 215). However, this problem can be avoided by including all growers and suppliers as members.

Not a magic formula.