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Defence solicitor John Weller said Richards had seen his mental health improve "once he stopped what he thought was the healing drug".
Magistrate Karen Stafford said members of the community must not simply decide to be medical cannabis dispensaries.
"(For you) to supply them on a medical basis, it is still criminal behaviour," she said.
Ms Stafford noted a recent Private Members Bill before NSW parliament calling for the legalisation of cannabis and related products.
"That has been rejected by the current government," she said.
"You're not the only person in this area who's taken it upon themselves to become some sort of de facto supplier of medical cannabis."