MMC and patient assignment – a follow up to the 70/30 rule

Further to my previous post, a MMC’s inventory is measured by the number of patients that assign the MMC as their “primary center” times two ounces per patient (I am not dealing with the “edibles”/medical necessity issues here) and can only grow 6 plants for each assigned patient. The question is how do we do this? The answer is not simple and has not yet been considered by the Dept. of Revenue or Dept. of Health. As with most MMJ issues, we must solve the problem ourselves and wait for the state to catch up. As with all MMC issues, prior to 7/1/10 is the date to accomplish this.

Accordingly, I suggest that the primary caregivers associated with the MMC have their patients assign the MMC as their “primary center.” Since their is no form or procedure for this, I suggest using the Change of Primary Caregiver form issued by the Dept. of Health. Instead of inserting a person’s name as the PC, I suggest inserting the MMC’s name, address, etc. Otherwise, fill out the form as required by the Dept. of Health and have the document notarized and mailed to the Dept. of Health, certified mail, return receipt requested. The state may reject the form, but at least you have timely proof of conversion from primary caregiver to primary center. Keep the proof handy, including the original patient cards, change of caregiver forms and return receipts as evidence of an unbroken chain of legal caregiving/care centering.

Finally, there are many patients you cannot locate. I suggest sending the Dept. of Health a letter detailing the patients that have changed from you as a PC to the MMC. Next, list each of the patients you were unable to locate and advise the state that “I am listed as the primary caregiver for the following patients listed below. I have tried to contact these patients, but am unable to do so. Accordingly, let this letter serve as notice that I am unwilling to act as the primary caregiver for the patients listed below effective immediately. If you have any means of contacting these patients, please advise them that I am no longer their primary caregiver.” Again, notarize and send this letter to the Dept. of Health AND Dept. of Revenue, attn. Mr. Matt Cook, certified mail/return receipt requested.

Someday the state will create its own procedure and form for designating a primary center and you get to do this all over again!

Keep all the records handy, organized and a copy at the MMC and any optional grow premises.

Primary Caregiving post HB1284

HB1284 goes into effect on 7/1/10. This restrict all primary caregiving to five patients or less, requires the provision of “other services” as set forth in the Clendenin case, and providing the MMJ for cost only. No two (or more) primary caregivers can work together, share a grow, etc. and no primary caregiving duties can be delegated (grow assistance, delivery, etc.). Finally, you cannot ever sell your “excess” medicine to medical marijuana centers.

Meeting with Matt Cook

I just completed my meeting with Mr. Matt Cook, the current head of the Department of Revenue Medical Marijuana Business Division. I clarified several points that concern MMJ businesses:

1. All MMJ Centers must be locally approved for both the cultivation and retail sale of medical marijuana by 7/1. I understand this presents many logistical problems, but it is true nonetheless;
2. There is no state moratorium on new MMJ businesses (that was just in the bill summary) but local approval and state approval is required BEFORE any operation of that business.
3. Hash is likely to be considered an infused product and its creation is likely to be limited to Infused Product Manufactures. He stated that MMC’s are going to be able to create “raw product” only and that is likely to include clones.
4. The no felony within five years of the completion of sentence and no felony drug convictions ever is going to apply to employees, managers, investors, etc., as well as owners.
5. The two year residency requirement is likely to apply to employees and managers, not just owner/licensees.
6. The corporate structure for a MMC is simplistic: one business handling both the grow and cultivation, which is locally approved for both activities. This means no corporations owning corporations. While this is permitted as a matter of corporate law and may evolve in the future, I suggest you give the state what it expects to see.
6. Growers may not be “employed” by more that one MMC and, under no circumstances, can exist as a seperate business.
7. Owners of MMCs can still be a primary caregiver for 5 patients, but all activities must be separate from the MMC (no selling excess from your patient grow!).
8. In examining your MMC/MIP application, the state will refer back to 7/1/10 to establish your compliance with HB1284.
10. Service business will be allowed, like a grow consultant, but be careful not to blur the lines between consultant and grower.
11. The rules will be created over a six month process and will be binding. That means what Mr. Cook says today may or may not be established by rule in the future. Anticipate the most conservative view of HB1284 and expand beyond that when the rule permits such expansion.

I hope this helps guide you efforts to comply with the new regulations.