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Tucson to Get 10 Medical Marijuana Dispensaries

KOLD News:  “Hundreds of patients applied Thursday for permission to buy medical marijuana, but there’s still no place to buy it.  And it won’t be easy to open one, the requirements are strict.  If you’re interested, before you even submit your application you’d better be able to prove that you have $150,000 in your bank account. . . . So far, 19 applications have been submitted to the city’s [Tucson] zoning office, and 14 of them have been approved.”

By |2012-08-18T10:19:57-07:00April 16th, 2011|Stories & Articles, Zoning|Comments Off on Tucson to Get 10 Medical Marijuana Dispensaries
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Opening Day for Medical Marijuana

From Will Humble’s blog:  “Today was Opening Day for the Arizona Medical Marijuana Act.  We rolled out our brand-new website at 8 a.m. today and began processing applications for Qualifying Patient and Designated Caregiver Registry Identification Cards. The system went live at 8:00 a.m. and we completed our first qualified patient card at about 8:30.  Our first applicant was a 60 year-old gentleman from Scottsdale living with Crohn’s Disease.”

See “Arizona health director: First-day stats for medical marijuana promising,” “State now defining landscape on medical marijuana” and “Applications open for medical marijuana cards.”

By |2017-02-12T07:38:38-07:00April 15th, 2011|Will Humble Speaks|Comments Off on Opening Day for Medical Marijuana
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Feds Raid 5 locations in Oakland County, Detroit in Marijuana Crackdown

Detroit Free Press: “Federal agents raided at least five properties in Oakland County and Detroit this morning.  U.S. Drug Enforcement Administration agents were at two marijuana facilities in Walled Lake and Novi, a home in Commerce Township and the Bayside Sports Grill in Walled Lake. They also raided Coliseum Bar and Grill strip club on Eight Mile in Detroit.”

By |2017-02-12T07:38:37-07:00April 15th, 2011|Federal Dispensary Attacks, Marijuana Crimes, Stories & Articles|Comments Off on Feds Raid 5 locations in Oakland County, Detroit in Marijuana Crackdown
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Three IEDs in DHS’ Actual Final Rules Detonate & Blow Many Would-Be Arizona Medical Marijuana Dispensaries Away

Let the litigation begin.  The Arizona Department of Health Services had 120 days to create the rules to implement Arizona’s medical marijuana law.  During that time DHS produced FOUR versions of its rules, but it saved its three  improvised explosive devices until the 120th day.  When the smoke clears from the DHS final rule bombs and allows would-be dispensaries to check their damage, many will find that they are too crippled to continue the race to the dispensary license finish line.

Today, the DHS submitted its final rules to the Arizona Secretary of State, but not without making three new rules that will prevent many would-be dispensaries from actually filing an application for a dispensary license.  Here’s what DHS did:

The Zoning Comfort Letter Bomb

The first bomb is contained in new rule R9-17-304(D)(6), which reads: “To apply for a dispensary registration certificate, an entity shall submit to the Department the following . . . . Documentation from the local jurisdiction where the dispensary’s proposed physical address is located that:

a. There are no local zoning restrictions for the dispensary’s location, or

b. The dispensary’s location is in compliance with any local zoning restrictions

DHS issued the following FAQ on this issue:

“Do I need a certificate of occupancy from my city in order to apply? No, applicants do not need to submit a certificate of occupancy in the initial application. They must attest to meeting zoning requirements and provide documentation from the local government saying either there are no local zoning requirements or the location meets the requirements. However, if chosen as the dispensary for a specific CHAA, a copy of a certificate of occupancy or other documentation issued by the local jurisdiction will be necessary when requesting approval to operate the dispensary.”

The legal significance of this new rule is that the decision on which entity will get a dispensary license will be determined at the city or local zoning level.   The rule does not give any guidance on what it means to be “in compliance with any local zoning restrictions.”  Each local zoning authority will decide the conditions on which it will give its zoning comfort letter.  The zoning authorities are  able to give one comfort letter per CHAA if they so desire.  Any would-be dispensary that fails to get a zoning comfort letter by June 30, 2011, is precluded from filing an application to get a dispensary license.   Each local zoning authority is now free to determine who will get its zoning comfort letter.  This new rule is an abrogation of DHS’ duty to select the qualified dispensaries and a shameful dereliction of its duty.

For a an actual example of how the cities are now able to select who will own a medical marijuana dispensary within their jurisdictions, see “Fountain Hills Faces Medical-marijuana Challenge.”  Fountain Hills has only accepted one zoning application so no other would-be dispensaries will be able to operate in Fountain Hills.  Result:  Fountain Hills will determine who owns the dispensary in Fountain Hills, not DHS.

The Landlord Comfort Letter Bomb

New rule R9-17-304(D)(7 ) reads: “To apply for a dispensary registration certificate, an entity shall submit to the Department the following . . . . Documentation of:

a. Ownership of the physical address of the proposed dispensary, or

b. Permission from the owner of the physical address of the proposed dispensary for the entity applying for a dispensary registration certificate to operate a dispensary at the physical address;

DHS went backwards.  The second draft of the rules created a nightmarish situation for prospective dispensaries because a large number of prospective tenants were all trying to enter into leases for a very small number of possible sites.  The law of supply and demand made it impossible for most prospective dispensaries to find a properly zoned site and tie it up with a lease.  This caused rents to soar way above market because the laws of economics applies to medical marijuana dispensaries and available rental space like it does to every other commodity.  It was because of this hellish situation that I wrote an article on February 8, 2011, called “Prospective Dispensary’s Single Most Important Task Before May 30, 2011.”

Once again would be dispensaries will be engaged in a mad scramble to get a comfort letter from a landlord.  Many will not be successful or will be successful only at great expense in time and money.  Most landlords will demand real money to get a letter.  Few will give away comfort letters.  A commercial real estate broker who has been successful in getting leases for would-be dispensaries told me today that some landlords are demanding $5,000 to give a tenant a comfort letter for the purpose of getting local zoning approval.  He also said that he has seen rents for dispensaries as high as $27 a foot, which is more than the going rate for class A office space in the Camelback corridor.

I predict that no prudent landlord will simply issue a comfort letter that satisfies the vague language in the new rule.  I am a real estate lawyer and if I were advising a landlord and asked to draft a comfort letter that said the landlord will give the dispensary permission to lease the premises for a medical marijuana dispensary, I would put in language the makes it clear that the letter does not create a legal obligation on the part of the landlord to lease the premises to the dispensary.  Without actually having a signed lease with the dispensary, every landlord should be concerned that a comfort letter does not obligate the landlord to lease the premises.  I would also advise my landlord client to charge a substantial fee to get a comfort letter.

Query:  If the landlords issue comfort letters that clearly state they are not binding on the landlord, then what is the purpose of requiring the prospective dispensaries to get the comfort letter?  Maybe I’ve missed something, but the only reason I can see for this new requirement is to reduce the number of applicants for dispensary licenses and increase the applicants’ costs of doing business.  Landlords once again have the upper hand which means the dispensaries will pay higher rents and the patients will pay more for their medicine.

See “Arizona Medical-marijuana Dispensaries Face Property Hurdles.”

The Bank Comfort Letter Bomb

Last, but not least, are new rules R9-17-302.A.5 and R9-17-304.D.1.f.ii.  This last minute bomb was triggered by a question that should never have been asked of Will Humble last week at the April 5, 2011, forum in Phoenix.  The first final rules issued by DHS on March 28, 2011, added a new requirement that said the dispensary application had to include:

“Documentation, from an in-state financial institution or an out-of-state financial institution, demonstrating that the dispensary has at least $150,000 available to begin operating was submitted with the dispensary registration certificate application.”

Unfortunately for many would-be dispensaries, a man asked Will Humble if it would be ok to deposit money in the bank, get the letter from the bank and immediately take the money out of the bank.  Mr. Humble was visibly stunned by the question as he visualized a hole a mile wide in his capital requirement plan.  Because of that question, RR9-17-304.D.1.f.ii requires the applicant for a dispensary license to submit “documentation that:

(1) Is from an in-state financial institution or an out-of-state financial institution;

(2) Is dated within 30 days before the date the dispensary registration certificate application was submitted; and

(3) Demonstrates that the entity applying for the dispensary registration certificate or a principal officer of the entity has at least $150,000 under the control of the entity or principal officer to begin operating the dispensary and has had control of the $150,000 for at least 30 days before the date the dispensary registration certificate application was submitted“

In-state financial institution” means the same as in A.R.S. § 6-101.  Out-of-state financial institution” means the same as in A.R.S. § 6-101.

A client asked me the if Charles Schwab or Merrill Lynch are “out-of-state financial institutions?  A.R.S. § 6-101 states that “Out-of-state financial institution means a state or federal bank, savings bank, savings and loan association or holding company with its home office in a state other than this state.”  I don’t believe these types of institutions are banks or S & Ls, but could they be “holding companies?”  I have no clue what the term “holding company” means.  It appears, however, that a person who has sufficient assets in Merrill Lynch or a similar financial institution could not use that type of entity as an out of state financial institution for the purposes of this new rule.

This rule is outrageous, unreasonable, unfair and just plain wrong.  Whether or not the reasoning behind the rule is good is something we could debate, but that is not my problem with the rule.  I despise this rule because it is much too late in the process to issue the rule and simply not enough time for many prospective dispensaries to be able to comply with this new rule issued on the last day of the 120 days DHS had to finalize its rules.

The last day applicants may submit applications for dispensary registration certificates is June 30, 2011.

Note carefully requirement number 3.  It could be a nuclear bomb!  Either the entity applicant or A PRINCIPAL OFFICER OF THE ENTITY (whichever one actually has the funds) must show that it/he/she has had control of the $150,000 for at least 30 days before the dispensary application is submitted to DHS.

Bottom line:  DHS may have just opened the litigation flood gates and may have cost the State of Arizona mega-millions in damages for promulgating unreasonable rules that have no basis in Proposition 203.

What do you think?  What am I missing?  Am I wrong.  Add your comments below.

By |2017-02-11T17:21:23-07:00April 14th, 2011|Banking Issues, Legal Issues|1 Comment
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DHS’ Final Arizona Medical Marijuana Rules Now Final

As Will Humble said last week, the March 28, 2011, “final” version of the rules have been changed.  Today the Arizona Department of Health Services submitted to actual final rules to the Arizona Secretary of State.  Here is the  Department of Health Services summary of the changes made to the March 28, 2011, rules.

R9-17-302(A)(5) and R9-17-304(D)(1)(f)(ii)
The 03/28/11 rules allowed applicants for a dispensary registration certificate to submit documentation of $150,000 available to begin operating. The rule was clarified by requiring the documentation to be dated within 30 days before submitting the application, the monies to be under the control of the entity submitting the application or a principal officer of the entity, and the documentation to demonstrate that the monies had been under the control of the entity or principal officer for at least 30 days before the application was submitted.

R9-17-304(D)(1)
Two subsections were added: One subsection requires an applicant for a dispensary registration certificate to submit documentation from the local jurisdiction where the proposed dispensary is located that the local jurisdiction does not have any zoning restrictions or that the proposed dispensary location complies with the zoning restrictions. A second subsection requires an applicant for a dispensary registration certificate to submit documentation that the applicant owns the location of the proposed dispensary or has permission from the owner of the location to operate a dispensary at the location.

R9-17-313(E)
The 03/28/11 rules prohibited a medical director from providing a written certification for medical marijuana for a qualifying patient obtaining marijuana from the dispensary associated with the medical director. Because there is no way for a medical director to ensure that a qualifying patient would not obtain medical marijuana from the dispensary associated with the medical director, the rule was amended to prohibit a medical director from providing written certifications for medical marijuana to any qualifying patient.

By |2011-04-18T09:03:19-07:00April 14th, 2011|DHS Rules|1 Comment
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Push is on to Secure Dispensary Locations

Arizona Daily Star:  “The competition for locations that meet the city’s [Tucson] zoning requirements has been fierce . . . . the rules don’t require any verification from the jurisdiction itself in the application.  But that may change, said Tom Salow, rules administrator with the Arizona Department of Health Services.  By Thursday, the state may require applicants to provide documentation from the municipality that their address meets zoning requirements, Salow said. The state also will likely require verification that the operator has permission from the property owner to run a dispensary at that site, Salow said.”

By |2012-08-18T10:19:11-07:00April 14th, 2011|Stories & Articles, Zoning|Comments Off on Push is on to Secure Dispensary Locations
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Arizona’s Medical Marijuana Law in One Handy Guide

Phoenix New Times:  “On Thursday, April 14, the Arizona Department of Health Services will begin accepting applications for medical marijuana patient and caregiver cards. The ADHS will review and approve or deny each application within 10 business days.  So, in just a couple of weeks, some Arizonans will be able to legally possess and use pot, provided they stay within ADHS guidelines. The department won’t begin accepting dispensary applications until June, so all patients issued cards before a dispensary opens within 25 miles of their home can grow their own weed, if they indicate on their applications that they want to cultivate.”

By |2011-04-14T07:13:39-07:00April 14th, 2011|Stories & Articles|Comments Off on Arizona’s Medical Marijuana Law in One Handy Guide
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Arizona’s Medical Marijuana Law is Effective Today, April 14, 2011

Today is the day that Arizona’s medical marijuana law becomes effective.  As of today, doctors can issue certifications to patients and patients can apply for their patient cards.  Because there are no medical marijuana dispensaries at this time and will not be for until the fall, patients who receive a medical marijuana patient card from Arizona Department of Health Services will be able to legally grow up to twelve marijuana plants.  Although a patient with a DHS card may grow and use medical marijuana in Arizona legally under Arizona law, the growing and possession of marijuana remains a violation of federal criminal law.

  • Washington Examiner:  “Arizonans to begin applying for medical marijuana

“Since the application for a medical marijuana card is electronic, anyone hoping to apply in person or by phone with the Arizona Department of Health Services will be turned away. . . . Patients first will have to do about a half-hour of data entry with things like their age, address and medical condition. They’ll then have to attach documents to their applications that include a photograph of themselves, a photo ID, and a signed doctor’s ‘attestation’ that the patient needs medical marijuana and will not give or sell it to anyone else.”

  • KVOA:  “Medical marijuana applications begin Thursday”
By |2017-10-07T09:54:50-07:00April 14th, 2011|Stories & Articles|Comments Off on Arizona’s Medical Marijuana Law is Effective Today, April 14, 2011
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Arizona Medical-marijuana Dispensaries Face Property Hurdles

Arizona Republic:  “”Medical-marijuana-dispensary applicants are having trouble securing lease agreements for suitable dispensary sites, Phoenix-area commercial-real-estate brokers and observers say.  The challenge is twofold, they say: State-imposed restrictions limit the locations and types of real estate in which a dispensary can operate, and many commercial-property owners don’t want marijuana-dispensary tenants.”

By |2011-04-13T06:27:08-07:00April 13th, 2011|Real Estate Issues, Stories & Articles|Comments Off on Arizona Medical-marijuana Dispensaries Face Property Hurdles
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Words of Wisdom from Will Humble on April 5, 2011

I attended the forum sponsored by the Arizona Medical Marijuana Association and the Marijuana Policy Project in Phoenix on April 5, 2011.  Will Humble spoke for about 30 minutes then answered questions for about 30 minutes.  Here are my notes from the Director’s presentation:

  • The final rules published by the Arizona Department of Health Services on March 28, 2011, are not the actual final rules.  The actual final rules will be the rules that DHS submits to the Arizona Secretary of State on April 14, 2011.  DHS intends to make some changes to the March 28, 2011, version of the rules.
  • The final rules will probably require that dispensary license applicants obtain a “comfort” letter from the landlord of the site where the dispensary’s address listed on the application.  Mr. Humble did not use the phrase “comfort” letter.  That is my characterization of what he said, which was the applicant must attach to the application something in writing from the owner of the site where the dispensary will operate that the owner is ok with the applicant using the owner’s address on the application.
  • Rather than merely requiring the applicant to affirm that the zoning of the prospective dispensary site is “groovy,” the applicant will be required to get something in writing from the city that the proposed site is in accordance with city zoning, i.e., it is properly zoned and not too close to a prohibited structure or area.
  • The March 28, 2011, rules will be modified, but DHS does not intend to make substantive changes.  I submit that the two preceding items, especially the second are substantive changes to the rules.
  • Patient and dispensary applications will be submitted online.  DHS’ goal is to reduce DHS costs.
  • There is no advantage in submitting a dispensary application early.
  • DHS will review dispensary license applications in July and August.  He predicted that there will more applications for licenses in highly populated CHAAs and fewer applications in low populated CHAAs.
  • A dispensary in Ajo that is in a low populated CHAA could have a big grow operation and sell marijuana to other dispensaries.
  • After a dispensary has been operating for three years, it can move any where in the state subject to proper zoning.
  • Dispensary licenses in CHAAs that are located in tribal land will be issued in 2012.
  • A dispensary can move any where within its approved CHAA during its first three years, subject to zoning.
  • If there are multiple dispensary license applicants who meet all five levels of review in a CHAA, the dispensary registration certificate will be awarded by a lottery conducted by the Arizona Lottery Commission.
  • Level five review consists of the applicants providing a letter from a bank that says that the applicant has $150,000 of available capital.  DHS doesn’t care if the available capital is cash in the bank or a line or credit or the ability to borrow $150,000, but it must say that the applicant (not an owner, officer or board member) has the money.  A questioner asked if it would be ok to remove the cash from the bank that day after the bank issued the letter.  Mr. Humble was stumped.  He had not thought of that and the March 28, 2011, version of the rules would not prohibit the removal.
  • Concerning the quality of the dispensary applications:  DHS will take into consideration and look to see if the required documents are submitted and appear to be comprehensive, but will not evaluate them for quality.  Not sure what he meant.
  • The security and inventory control policies and procedures must show that the applicant will be able to prevent the diversion of marijuana from its intended and state lawful use.
  • When asked if the applicant for a dispensary license will be notified if its application is defective and be given a chance to correct any defects, Mr. Humble said he doesn’t know yet.  He said that if the total number of applications for a dispensary license is relatively low, DHS will probably notice applicants of defects and give them a cure period, but will not do so if there are too many applications.  He did not give any indication of when the number of applications would be too many to give defect notices and cure periods.
  • He mentioned that the business plan should include references to the Arizona medical marijuana statutes and the DHS rules where appropriate.
  • As DHS receives applications for dispensary licenses, it will post the location on its CHAA maps.  He did not say what other information would be made available to the public.
  • Subject to applicable zoning requirements, a dispensary agent of a dispensary can deliver marijuana to its patients anywhere in Arizona as long as the agent remains with the marijuana at all times and complies with the DHS delivery rules.
  • It is ok to have multiple dispensary applications for the same site.
  • If a person or group of people who own one or more entities that apply for multiple dispensary licenses in multiple CHAAs were to win more thann one license, DHS expects and demands that a dispensary be opened in each CHAA.  Not sure how DHS would enforce this.  Would it try to terminate all of the licenses if the group failed to open or operate one of the dispensaries?
  • A medical director of a dispensary cannot write certifications for any patient.  Another doctor in the medical director’s medical group can write certifications, but the medical director must disclose that fact to DHS.
  • I asked Mr. Humble this question:  Can a for profit corporation get a dispensary license if it has one or more shareholders who own less than 20 percent of the shares and who are not officers or directors of the corporation if these shareholders do not meet the eligibility criteria including they are not residents of Arizona.  He said yes.

Caution:  What Mr. Humble says is not the official position of the DHS and may or may  not actually be implemented by DHS.  His comments are enlightening, but it is the official acts of DHS such as the rules that have legal significance.

By |2011-04-12T08:50:31-07:00April 12th, 2011|DHS Rules, Will Humble Speaks|Comments Off on Words of Wisdom from Will Humble on April 5, 2011
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Arizona Association of Dispensary Professionals Asks for an Investigation of Will Humble & the Arizona Department of Health Services

Alan Sobol and his Arizona Association of Dispensary Professionals are demanding that there be an investigation of Will Humble and the Arizona Department of Health Services with respect to their implementation of Arizona’s medical marijuana laws.  In a blog post Mr. Sobol makes various allegations about Will Humble and concludes:

“The people of Arizona are initialed to a fair and impartial  administration of the program.  Mr. Humble’s actions demand a through external investigation.  The implementation of the Dispensary Application process should be delayed until such time as the rules and their development process can be reviewed by outside counsel.  We respectfully request that your office conduct a full investigation into this matter.”

By |2015-04-06T18:51:46-07:00April 12th, 2011|Stories & Articles|Comments Off on Arizona Association of Dispensary Professionals Asks for an Investigation of Will Humble & the Arizona Department of Health Services
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Over 50 Studies Show Cannabis Is Medicine

Toke of the Town:  “An overwhelming number of studies exist to firmly support cannabis as all-purpose medicine and very possibly a strong candidate as a cure for cancer as was originally reported by the National Cancer Institute.  There has never been a single documented primary human fatality from overdosing on cannabis in its natural form in any amount. How’s that for safety!”

By |2011-04-16T07:40:00-07:00April 12th, 2011|Stories & Articles|Comments Off on Over 50 Studies Show Cannabis Is Medicine
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Flagstaff’s Own Marijuana Lawyer

Arizona Daily Sun:  “When Thomas Dean was in high school, he watched his friends get in trouble for smoking marijuana and didn’t see any reason for it. Some were expelled from school, while others ended up in juvenile detention.  As he got older, Dean became passionate about reform, and in college he got involved with the National Organization for the Reform of Marijuana Laws. Those experiences steered him toward a life spent challenging the status quo on marijuana law.”

By |2011-04-12T07:04:56-07:00April 12th, 2011|Stories & Articles|Comments Off on Flagstaff’s Own Marijuana Lawyer
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Arizona State Workers Involved in Implementing & Overseeing Arizona’s Medical Marijuana Laws May Violate Federal Criminal Laws

Arizona Republic:  “Those who choose to use, grow or sell marijuana under Arizona’s ‘medical’ marijuana law might not care that they are violating federal law. On the other hand, Arizona Department of Health Services employees who implement these laws very well might care that they are violating federal law, but they are faced with a dilemma.”  This story was written by Carolyn Short, chairwoman of an anti-Proposition 203 campaign and Ed Gogek, a Prescott psychiatrist who specializes in addictions.

The story links to a “legal memorandum” that states:

“Based on our review of Arizona and federal statutes and case law, (1) Arizona citizens who use, possess, cultivate or distribute marijuana, or facilitate such use, possession, cultivation or distribution, including Department of Health Services (“Department”) and other State employees or agents, acting in accordance with the provisions of the Act, could be subject to federal prosecution under the CSA [Controlled Substances Act]; and (2) the Act [Arizona’s medical marijuana laws] is preempted by the CSA and thus is null and void.”

By |2011-04-12T10:02:22-07:00April 12th, 2011|Legal Issues, Marijuana Crimes|Comments Off on Arizona State Workers Involved in Implementing & Overseeing Arizona’s Medical Marijuana Laws May Violate Federal Criminal Laws
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Update on the Bylaws Update

Before the “final” Arizona Department of Health Services rules issued on March 28, 2011, I prepared Bylaws for Arizona limited liability companies, for profit corporations and nonprofit corporations that intend to apply for a license to own and operate an Arizona medical marijuana dispensary.  I have not been able to “finalized” my Bylaws because I have been waiting for the “final” version of the DHS rules to be set in concrete.  I want to modify my Bylaws only one more time so I am waiting patently for DHS to “finalize” the rules.

You will notice that I have put “final” and “finalize” in quotes.  I did that because despite DHS’ statements that the March 28, 2011, version of the rules was the final version, the rules have not yet been “finalized.”  I attended a forum last Tuesday at which DHS Director Will Humble announced two important facts about the March 28, 2011, version of the rules.

  • The rules will not be final until DHS delivers them to the Arizona Secretary of State on or before April 14, 2011.
  • DHS intends to make changes to the March 28, 2011, version of the rules before submitting the rules to the Arizona Secretary of State.

Note to KEYTLaw Dispensary Clients & People Who Purchased Dispensary Bylaws Online in Our Store

My goal is to review the final final version of the rules delivered to the Arizona Secretary of State this coming weekend and modify the Bylaws as necessary to comply with the final rules.  You should anticipate that my “final” version of the Bylaws will be available beginning on April 18, 2011.

If you are an owner of a not for profit LLC or corporation that I formed to own and operate an Arizona medical marijuana dispensary, you should have gotten an email message from me that I sent to you three days ago.  In that message, I asked that the contact for your company send the following information to me so I can prepare the Bylaws for your company:

  • Names of all members of the board of directors of the company
  • Name of the President (must be one of the managers if the company is an LLC – can only have one President)
  • Name of the Secretary (can be the same as the President)
  • Name(s) of any Vice Presidents (optional officers)
  • Name of the Treasurer (optional officer)

If I formed your company, make sure that your contact person sends an email message to me asap with the above information.

See “All Arizona Medical Marijuana Dispensaries Must Have Bylaws.”

By |2012-05-13T16:21:55-07:00April 10th, 2011|DHS Rules, Legal Issues, Will Humble Speaks|Comments Off on Update on the Bylaws Update
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Medical Marijuana: An Unexpected Fight

Arizona Republic:  “Gayle Palms says she has a team of legal and medical experts, a business plan and the $150,000 Arizona requires to open a medical-marijuana dispensary.  She knew it would be a challenge to win one of about 125 certificates for a facility that the state is expected to issue this year. But what Palms didn’t expect were challenges from her own community – and the absence of a local landlord willing to rent to her.”

By |2011-04-10T07:04:57-07:00April 10th, 2011|Stories & Articles|Comments Off on Medical Marijuana: An Unexpected Fight
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Paradise Valley Panel puts off Pot-dispensary Application

Arizona Republic:  “After a marathon meeting Tuesday night, the Paradise Valley Planning Commission unanimously decided that it needs more information before it can allow the Town Council to review the first special-use permit application to dispense medical marijuana.  A small but vocal group’s main concerns during the 5 1/2-hour meeting were security and applicant Mountain View Medical Center’s proximity to a residential area near Tatum and Shea boulevards.”

By |2012-08-18T09:44:24-07:00April 9th, 2011|Stories & Articles, Zoning|Comments Off on Paradise Valley Panel puts off Pot-dispensary Application
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DHS Rules will Limit Gilbert Medical-marijuana Sites

Arizona Republic:  “Two groups competing to become Gilbert’s first medical-marijuana dispensary unveiled their plans to the Planning Commission this week and both could get a use-permit early next month.  Sonoran Star Remedies and Beleaf, Inc. hope to set up in Gilbert’s northwestern corridor, where most of the town’s industrial parks are. Gilbert prohibits dispensaries outside of industrial districts.”

By |2012-08-18T09:34:39-07:00April 9th, 2011|Stories & Articles, Zoning|Comments Off on DHS Rules will Limit Gilbert Medical-marijuana Sites
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DHS Prohibits Medical Directors from Issuing Certificates to Any Patients

As regular readers of this blog may recall, I recently posted an article entitled “Can the Medical Director of an Arizona Medical Marijuana Dispensary also Write Certifications for Qualifying Patients?  Good Question.”  Well, I spoke with Don Herrington, Asst. Director of ADHS, today and. according to him, the answer is NO.

At issue was the changed language of R9-17-313.E in the final rules which seemed to indicate that a medical director could write certifications for qualifying patients as long as the patient did not obtain the marijuana from the dispensary with which the director was associated:

“A medical director for a dispensary shall not provide a written certification for medical marijuana for a qualifying patient obtaining medical marijuana from the dispensary.”

While Mr. Herrington acknowledged that the wording in the foregoing rule might well be interpreted to allow medical directors to write certifications, he informed me that it was still DHS’s intention that medical directors not do so for any patients no matter which dispensary they used.  Apparently DHS is concerned about a conflict of interest occurring, the logic of which escapes me.  He said that DHS may publish a clarification of the rule before the end of the year.

Mr. Herrington did add that physicians who eventually become dispensary medical directors may write certifications up until the time when their medical directorship becomes active, which is presumably when the dispensary opens its doors for business.

In my opinion, this rule is unfair to both medical directors and their patients.  Medical directorships are part time positions, and many, if not most, medical directors are also involved in direct patient care.  This rule, as interpreted by DHS, deprives medical directors who are also clinicians from writing certifications for their patients who have conditions which may benefit from medical marijuana.  It would also require the patients of medical directors in private practice who qualify for medical marijuana to go elsewhere for written certifications.

Jason E. Gittman, MD, FCCP
http://www.medlawconsults.com/

[email protected]

 

By |2011-04-07T17:00:25-07:00April 7th, 2011|Medical Directors|1 Comment
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Officials Worry Arizona Medical Pot will Go Recreational

KTAR radio:  “As Arizona’s medical marijuana program moves toward a launching point, the challenge is to keep it ‘medical.’  Dr. Will Humble, director of the Arizona Department of Health Services, said it would not take much to turn the legal program, approved by voters last November, into a recreational pot program.”

By |2017-02-12T07:38:37-07:00April 6th, 2011|Will Humble Speaks|Comments Off on Officials Worry Arizona Medical Pot will Go Recreational
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Chandler gets First Request to Grow Marijuana

Arizona Republic:  “A week after the Arizona Department of Health Services released its final rules for the voter-approved medical marijuana program, a Phoenix man is seeking city permission to build Chandler’s first marijuana-growing operation.  William Myer and his Arizona Organix wants a permit to cultivate marijuana in an industrial park building at 6730 W. Chicago St.”

By |2012-08-18T09:28:38-07:00April 6th, 2011|Zoning|Comments Off on Chandler gets First Request to Grow Marijuana
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California Medical Marijuana Activist Convicted of Selling Pot in His Dispensary Speaks of Legal Battle

North County Times:  “Two years ago, James Stacy operated a martial arts studio in Vista.  Then he opened a medical marijuana dispensary in the same building.  Within 10 weeks, he landed in federal jail.  Stacy fought federal criminal charges, lost, and now, with a felony drug conviction, is without a full-time job or significant income.  But along the way, he said, he found a new calling: activism.”

By |2015-04-06T18:51:46-07:00April 5th, 2011|California News, Federal Dispensary Attacks, Marijuana Crimes|Comments Off on California Medical Marijuana Activist Convicted of Selling Pot in His Dispensary Speaks of Legal Battle
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Arizona Department of Health Services’ Open Letter to Arizona Physicians on Medical Marijuana

Laura Nelson, M.D.. Chief Medical Officer, Arizona Department of Health Services, and Will Humble, Director, Arizona Department of Health Services posted an “Open Letter to Arizona Physicians on Medical Marijuana” on Mr. Humble’s blog. The text begins:

“Thank you for your interest in the effective implementation of the AZ Medical Marijuana Act.  We realize that many Arizona physicians may not yet feel comfortable with or fully informed about medicinal marijuana.  It is likely that some of your patients will have questions for you about medical marijuana or even request a certification from you.  Given your established relationships with your patients, you are in the best position to determine if medical marijuana is likely to be beneficial for them.  To assist you, we have reviewed numerous articles and sources of information about the medical use of marijuana.”

By |2011-04-05T06:16:06-07:00April 5th, 2011|Will Humble Speaks|Comments Off on Arizona Department of Health Services’ Open Letter to Arizona Physicians on Medical Marijuana
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Medical Marijuana Users Fight for Gun Rights

Associated Press: “Willis is not only packing a concealed handgun permit in her wallet, she also has a medical marijuana card. That combination has led the local sheriff to try to take her gun permit away.  She is part of what is considered the first major court case in the country to consider whether guns and marijuana can legally mix.”

By |2017-02-12T07:38:37-07:00April 5th, 2011|Federal Dispensary Attacks, Stories & Articles|Comments Off on Medical Marijuana Users Fight for Gun Rights
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Medical Pot Banking Dilemma

Recordnet.com:  “Dispensaries run into difficulties dealing with financial institutions. Stockton and other local government agencies in California require medical marijuana dispensaries to promptly deposit cash into bank accounts. The federal government, meanwhile, is putting pressure on financial institutions to make that more difficult.  Medical marijuana dispensaries throughout the state have been getting letters in recent months from their banks telling them their accounts are frozen or closed.”

By |2012-05-12T15:25:15-07:00April 4th, 2011|Banking Issues, California News, Federal Dispensary Attacks|Comments Off on Medical Pot Banking Dilemma
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