However according to the author of the state's medical marijuana law, former state Senator John Vasconcellos, a profitable collective doesn't mean it's breaking the law. In fact, according to the law he authored, there's no requirement that the dispensary be non-profit, reports the L.A. Weekly.
In a letter to clarify the issue, he wrote:
Nothing in that section prohibits profit. Nothing in that section explicitly authorizes profit, either. But I must point out that nobody is required to obtain an "authorization" from the Legislature to make a profit in California.
... the language does not in any respect purport to prohibit profit ~ if that had been the intent, the language would have so stated clearly. It obviously does no such thing.