Posts Tagged ‘Marijuana card’

Colorado: Medical Marijuana Business is on Fire

Tuesday, April 20th, 2010

One-ounce bags of medicinal marijuana are displayed at the Berkeley  Patients Group in Berkeley, Calif. April 20, 2010 – “Like California, which was the first to OK medical marijuana in 1996, Colorado’s marijuana infrastructure and culture are well ahead of the other 12 states that followed. Though Alaska, Hawaii, Maine, Michigan, Montana, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont and Washington allow the practice, they are in various stages of start-up mode.”

Medical marijuana dispensaries are springing up in Colorado‘s major cities like coffee shops, nail parlors, tanning salons or taco shops.

It’s been 10 years since Colorado voted to allow the use and sale of marijuana for medical reasons. But in the past six months, the number of patients and dispensaries has skyrocketed.

“This industry is like a bolting horse running out of a stable that’s on fire,” said Sierra Neblina, owner of the Medimar Haven dispensary in Lakewood, Colo. “We need to get a hold of our own industry.”

Denver has some 250 dispensary storefronts and Boulder, Colo., has more than 100. So far, the state has issued more than 66,000 cards that allow holders to purchase medical pot. Card demand is so high that there’s a six-month waiting period.

Now, experts estimate more than 100,000 Coloradans can buy medicinal marijuana legally. On April 1, the Medical Marijuana Registry at the state health department stopped accepting walk-up applications and will only process those sent by mail.

“The changes are necessary due to the explosive growth in the number of medical marijuana applications,” said Mark Salley of the Colorado Health Department. He said the number of applications jumped from 270 per workday in August 2009 to about 1,000 in February 2010.

Yet, few see legalized marijuana as a way to boost the economy and create jobs, according to an Associated Press/CNBC poll. About a quarter of those polled said legalized pot would lead to more jobs, but 57% said there would be no effect. Sixty-two percent approve of states taxing the drug, with people in the West more likely to back the idea.

Call it Marijuana Country

Like California, which was the first to OK medical marijuana in 1996, Colorado’s marijuana infrastructure and culture are well ahead of the other 12 states that followed.

Though Alaska, Hawaii, Maine, Michigan, Montana, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont and Washington allow the practice, they are in various stages of start-up mode.

Similar ballot measures or legislation allowing medical marijuana are pending in 14 more states this year: Alabama, Delaware, Illinois, Iowa, Kansas, Maryland, Massachusetts, Missouri, New York, North Carolina, Pennsylvania, South Dakota, Tennessee and Wisconsin. The City Council of the District of Columbia today considers a bill to allow the sale and use of medical marijuana.

Those states have a lot to learn from California and Colorado. In the Mountain State, the jump in dispensary openings and applications for medical marijuana cards appears to be a direct result of key events — both local and national — that essentially loosened restrictions.

In February 2009, Attorney General Eric Holder said the Drug Enforcement Agency would end raids on state-approved marijuana dispensaries. He said President Obama‘s election campaign position condoning medical use is “now American policy.” Marijuana for non-medical purposes remains illegal.

In July 2009, during a 12-hour hearing in which hundreds testified, the Colorado Board of Health rejected a proposal to limit the number of patients to five that could be served by each caregiver or dispensary. In October, the Obama administration clarified Holder’s February statement, telling federal authorities not to arrest or prosecute medical marijuana users and suppliers who aren’t violating local laws.

The policy decisions bolstered a business model used by most existing dispensaries, which serve 400 or more patients. And they offered a measure of certainty to investors who are bankrolling the growth in retail outlets.

How it works

To get a medical marijuana card in Colorado, a patient must see a licensed physician who provides written documentation of a “debilitating medical condition.” These may include cancer, glaucoma, AIDS or HIV-positive status, seizures, severe pain, severe nausea or severe muscle spasms.

Medical use, according to the law, covers “the acquisition, possession, production, use or transportation of marijuana or paraphernalia related to the administration of such marijuana to address the symptoms.” A doctor’s visit typically costs about $150 and may consist of a five- to 10-minute conversation.

Some dispensaries host doctors on site. Websites list regular doctors’ hours. The state charges a $90 processing fee, and dispensaries usually add notary or other smaller handling charges, for a total patient cost of about $250.

Then there’s the product. An ounce of medical marijuana currently costs about $350 and is considered sufficient to last about six weeks for the average patient.

Often, a dispensary offers a discount to a patient, who then lists it as his or her “primary caregiver.” A patient may possess up to 2 ounces of pot or six plants for personal use, and a dispensary may have on hand 2 ounces of pot per patient.

A dispensary may provide a grower with its patient list; a grower may house six plants per patient.

Dispensaries, however, are far more than smoking dens. Marijuana is bought and sold in an array of edible forms, such as caramel corn made with marijuana-laced butter, chocolate-covered cherries, rice cake treats and frozen pizzas.

Mile High Ice Cream in Denver makes dozens of flavors with marijuana. There are bottled soft drinks, pills and tinctures.

Dispensaries also sell routine and advanced drug paraphernalia, including pipes, lighters, scented candles and smokeless “delivery systems” called vaporizers, the latter of which can cost several hundred dollars apiece.

Many dispensaries have expanded to offer massage, acupuncture and other alternative healing methods, usually arranging patient appointments and providing operating space for a practitioner.

There’s even an industry trade group, the Colorado Wellness Association, formed in October 2009, whose public affairs officer is a former state senator, Bob Hagedorn.

“I’ve visited about 80 dispensaries in the Denver metro area,” Hagedorn said. “I’d say 10% are very serious about the wellness side of things. Fifty percent are interested in moving product. The other 40% is a balance of those two.”

Regulatory whiplash

Since medical marijuana started to take off here, state officials have been scrambling to control a largely unregulated industry that is maturing with retail storefronts, prominent advertising and large-scale operations.

In January, the Denver City Council passed a slew of new dispensary regulations aimed at bringing order to industry chaos and revenue to city coffers.

“Six months ago, Denver and Colorado were the Wild West of medical marijuana, with unregulated and untaxed dispensaries opening almost daily and the number of registered patients soaring,” said Denver Councilman Charlie Brown, who sponsored the ordinance.

Now, an applicant for a dispensary license must submit a floor plan and security plan and apply for a zoning permit, a sales tax license and a burglar alarm license. Fees top $5,000 annually, plus ongoing sales tax.

Brown said crafting the ordinance was “like trying to pick your teeth with a rattlesnake.”

Nearby Boulder passed a similar ordinance in 2009. Dispensaries and marijuana-growing operations there generated nearly $74,000 in sales tax revenue, though most of the estimated 105 businesses didn’t open until September or later. (In Los Angeles, the city council is poised to pass regulations aimed at reducing the current 545 dispensaries to about 70, mostly through license fees and zoning.)

“With taxation comes legitimacy,” said medical marijuana attorney Rob Corry. “This industry is one of the few that is asking to be taxed and legitimized to join the rest of the business world.”

The Colorado Senate is now crafting an additional layer of regulations and fees.

A bill introduced by state Sen. Chris Romer creates new requirements for dispensaries and may institute an excise tax similar to taxes on liquor sales.

“I believe that a highly regulated business structure is required to separate the medical marijuana industry from black market operators,” Romer said.

Once state legislation is passed, Romer believes “new business people will quickly enter the market and increase the status and quality of the wellness models.”

Jack Cary, a partner in Greenwerkz, a Denver dispensary, agrees. “There is a lot of investment money waiting on the sidelines, investors waiting to see what the rules are, waiting until an investment is not so high-risk,” he said.

“Like any gold rush, any boom, there’ll be a bust. There will be a shakeout.”

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Oregon Medical Marijuana: A Broken System- Hazy Pot Rules leave Patients, Police Upset

Thursday, April 15th, 2010

April 15, 2010 – Twelve years after it was passed by voters with hope and empathy for people in pain, Oregon’s medical marijuana program is broken.

Marijuana activists say the law is turning innocent citizens into criminals. Criminal justice officials say the program is turning illegal drug dealers with large-scale marijuana farms into quasi-legitimate business people the law can’t touch.

That’s primarily because the law allows physicians to sign authorizations so patients can obtain medical marijuana cards — but the law doesn’t provide a way for most of those patients to actually get their marijuana.

Under the law, cardholders can grow their own or designate a grower. But many, especially the elderly, can’t grow their own and don’t know anyone who will grow marijuana for them. And that puts them in the same place as any teenage kid hoping for a high — they’re looking for a dealer.

“Somehow, patients need a place to get it without going to the black market if they can’t grow it themselves,” says Madeline Martinez, executive director of the Oregon chapter of the National Organization for the Reform of Marijuana Laws — NORML. “The law says it should be treated like any other medicine. We don’t have access to that medicine that we need, except on the black market.”

Martinez started the Cannabis Café in Northeast Portland as a service to those cardholders, she says. There are only two marijuana cafes in the country, both in Portland, and Martinez says hers provides free donated marijuana and a place to smoke it — for those who pay a total of $60 for a $35 NORML membership fee, a $20 café membership and a $5 cover charge.

“People get ripped off all the time,” Martinez says. “They look for somebody because they’re desperate. They give drug dealers money and never get their pot.”

State police confirm that they get calls from cardholders reporting just that scenario, but they don’t have the manpower to follow up. According to Lt. Michael Dingeman, longtime director of the Oregon State Police drug enforcement section, many of those calls involve a slightly different twist — cardholders designating established growers to provide for them, but who never see their marijuana.

Dingeman says many growers are simply using the cardholders for cover, and selling their crops on the black market. In fact, some county sheriffs estimate that as much as one half of the illegal street marijuana they’re seeing is being grown under the protection of the state’s medical marijuana program.

All this is set against a backdrop of increasing public acceptance of marijuana, a growing population of people who use the drug — both legally and illegally — and one and possibly more state ballot measures looming that could dramatically alter Oregon’s political and social landscape.

As of last month, 36,403 Oregonians held or were waiting final state approval for medical marijuana cards. In the last year alone, close to 21,000 new applications for cards have been approved by physicians. That’s a far cry from the numbers anticipated when the medical marijuana ballot measure was approved by voters in 1998.

“The way (the ballot measure) was sold was basically there’s this grandmother with cancer who can’t keep any food down because she’s so nauseated with chemo, and there’s this drug that can (help),” says Josh Marquis, Clatsop County district attorney. “The problem is it’s being abused by people who just want to smoke a doobie.”

It certainly isn’t old ladies and cancer patients anymore. Fewer than 10 percent of the Oregonians who are cardholders are suffering from cancer, multiple sclerosis, glaucoma and the other ailments that were given high profile 12 years ago. In fact, the heavy majority of cardholders have pain relief listed as their condition (see chart).

Operators of clinics where patients can see a doctor who will recommend them for a state-issued medical marijuana card say the average age of their patients is closer to 45 than 75.

But many in law enforcement don’t think the primary abuse of the state’s medical marijuana laws comes from recreational smokers. They worry about the cover the medical marijuana program offers illegal growers and dealers.

Cornelius resident Robin Sawyer figures cops are estimating low when they say 50 percent of black market marijuana is grown under protection of the medical marijuana act. Sawyer is not a police officer, just a 51-year-old truck driver who had a frustrating one-year experience with medical marijuana.

A few years ago, a truck Sawyer was driving was hit by a train in Montana, leaving him with a variety of neurological ills. Pharmaceutical pain relief left him addicted to morphine. In 2008, he decided to apply for a medical marijuana card.

Ten minutes with a doctor who reviewed his medical records at a Portland medical marijuana clinic cost him $180 and yielded an authorization for his card.

“The doctor walked up to me and said, ‘You’re qualified, congratulations,’ ” Sawyer recalls. “It became apparent that people who hold cards seemed to be in some exclusive pot club.”

That, Sawyer says, was the easy part. As a cardholder, he spent a year unsuccessfully trying to get marijuana to relieve his pain. He talked to other card holders; he even posted online for a grower to help him. And he spoke to a number of growers — just not growers interested in providing him with marijuana free of charge.

Some growers said they’d use his card, and maybe give him a small amount. But all, he says, made it clear that they were in business to sell marijuana on the black market, and that’s where most of their crop would go, for upwards of $200 an ounce.

“These guys don’t want to grow for medical marijuana. They want to grow for money,” Sawyer says.

A few acquaintances eventually gave Sawyer a small amount of marijuana but he found it didn’t seem to help his pain. At the end of a year he didn’t bother to renew his medical marijuana card.

Every 15 minutes, Portland physician Sandra Camacho-Otero writes an authorization for an Oregon resident to get a medical marijuana card.

Last year, Camacho-Otero wrote authorizations for 8,760 Oregonians to get medical marijuana cards — far more than any other Oregon physician (see chart).

Camacho-Otero’s work is the most extreme Oregon example of a physician specialty that exists in only a few states. She is employed by a medical marijuana clinic, the biggest such clinic in Oregon — The Hemp and Cannabis Foundation (THCF) in Southeast Portland. Her job, perfectly legal, illustrates how far Oregon’s medical marijuana program has come from what voters thought it would be.

The list of local doctors who work in medical marijuana clinics includes moonlighting surgeons, retired general practitioners and at least one pathologist.

Five days a week, Camacho-Otero sees between 35 and 40 patients for about 15 minutes each, reviewing their medical records and deciding if, based on their history, they meet the loose Oregon guidelines for receiving medical marijuana cards.

Most, she says, aren’t suffering from cancer, AIDS or multiple sclerosis — the maladies that were most frequently mentioned when Oregonians approved a medical marijuana program back in 1998.

Marijuana advocates say that’s a sign that, as people have become accustomed to legal medical marijuana, more have found they can benefit from it. Studies show that as many as one out of three Americans suffer from chronic pain, and some activists say they can foresee the day when one third of Oregonians use medical marijuana.

As for her job, Camacho-Otero says prior to moving to Oregon three years ago, she had never thought about medicinal marijuana. In Puerto Rico, she worked as a nuclear medicine specialist in a hospital, having to deal with the administrative overload that most doctors complain about. At the THCF clinic her hours are regular and the work not nearly as stressful.

Camacho-Otero is not passionate about reforming marijuana laws, but she does believe she is providing a public service.

Most of her marijuana clinic patients, Camacho-Otero says, have already been to conventional physicians, chiropractors and acupuncturists in search of pain relief. She’s convinced that for some, marijuana provides that relief.

“As a medical provider, whatever works to improve the quality of life for the person in front of you, if it works, why not?” Camacho-Otero says.

A prosperous industry

While nobody keeps an exact count (no state agency is required to), state officials estimate there are about 15 medical marijuana clinics statewide and four or five in Portland. The THCF clinic is by far the largest, servicing about half the state’s medical marijuana clinic patients, according to owner Paul Stanford.

Stanford is a hard-core marijuana activist, and behind a looming ballot measure to legalize marijuana in Oregon. He’s also at the nexus of the burgeoning marijuana business in Oregon.

Stanford owns and runs six medical marijuana clinics (and 37 traveling clinics) in nine states, with his headquarters here in Portland. He says his clinics have approved more than 110,000 people for medical marijuana cards. Most have paid $150 to $200 for their clinic visits. That computes to nearly $20 million in revenue.

From that, Stanford has to pay his overhead, starting with the doctors such as Camacho-Otero. Most work for him only part time, and receive $1,000 to $1,200 a day. Still, it’s a good business and a sign, Stanford says, of how much prosperity there is to be had should marijuana become legal and taxed.

Sandee Burbank, executive director of Mothers Against Misuse and Abuse (MAMA), which runs another Southeast Portland clinic, says she employs five local doctors, “and every week I have more calling, wanting to work.”

Burbank says that in addition to helping patients get authorization for cards, her staff spends on average 90 minutes educating each patient about the dangers of mixing cannabis and pharmaceuticals, and teaching them how to take medical marijuana in different forms, such as tinctures placed under the tongue.

In an attempt to keep money out of the mix, Oregon law says that medical marijuana cannot be sold. Nevertheless, money is very much a part of the medical marijuana landscape. Stanford says the dozens of horticultural shops that have sprung up to sell supplies such as indoor grow lights represent a larger business than the clinics.

Initiatives would change law

Supporters of ballot measures that would change Oregon’s medical marijuana laws say money — tax money — is one of their major selling points.

The measure most likely to make it on to the November ballot would establish nonprofit dispensaries throughout the state to sell marijuana to cardholders.

Independent marijuana growers would be licensed by the state to provide the cannabis, with the idea that competition among the growers would lower the price of the marijuana sold to the stores. Dispensaries and growers would pay 10 percent of gross sales to the state and provide discounted marijuana for low-income cardholders.

John Sajo, director of nonprofit advocacy organization Voter Power, helped draft the initiative, and he projects that in the first year after passage, dispensaries and growers could be sending between $10 million to $40 million back to the state, which would use some of that money to oversee the growers and stores.

Sajo says based on the growth rate in the number of medical marijuana users — and in recent years those numbers have been skyrocketing — as much as $1 billion could make its way into state coffers over 10 years.

Stanford’s initiative, to which he has pledged $150,000 to help pay signature gatherers, is considered more of a long shot to make it on this November’s ballot.

It would make marijuana legal and allow its sale through state-run stores modeled after liquor stores. It, too, would give the state the power to license growers.

Stanford projects that his measure would bring in about $150 million in additional tax revenues a year, and save an additional $75 million in prison, court and police costs now spent on pursuing marijuana-related crimes.

He foresees Oregon farmers profiting the most, as they become the first in the country to legally harvest marijuana.

“It’s just going to make Oregon’s economy boom. We’ll be the Anheuser-Bush of cannabis,” Stanford says.

Stanford says he’s getting a head start by spending $200,000 a year on his own marijuana garden for cannabis that he either uses or gives away. He says the garden is an investment — should either of the ballot measures pass in November, he says he will be poised to take advantage of the market with new strains of cannabis he is developing.

But the prospect of marijuana dispensaries and legalization has some looking south, to California, where poor and in some cases nonexistent oversight has led to what everyone on the marijuana scene agrees is a mess.

In Los Angeles alone, until recent federal intervention, an estimated 1,000 marijuana dispensaries had been operating in open competition with each other, with sidewalk hawkers beckoning pedestrians to come inside for quick approval by a doctor and an afternoon toke.

Proponents say that won’t happen in Oregon, should the measure pass. The state health department would have broad powers to monitor and regulate the growers and the dispensaries. But Clatsop County District Attorney Josh Marquis, for one, still doesn’t like the idea.

“I don’t have a high degree of confidence that the state bureaucracy will do that,” he says.

Growers get by police with ‘stay out of jail’ cards

Lt. Curt Strickland, interagency narcotics team commander for Douglas County, says it is not unusual for one of his officers to stop a vehicle, find as much as six pounds of marijuana inside, and do nothing about it.

The reason, Strickland says, is Oregon’s medical marijuana law, which allows growers to transport up to a pound and a half of marijuana per cardholder. If a driver can produce four cards and say he’s growing for himself and three others, he’s free to transport up to six pounds — a lot of marijuana.

“There’s nothing we can do,” Strickland says. “But we know they’re transporting it for sale.”

The only place in the process where police have a chance for making an arrest, Strickland says, is when the marijuana is actually being sold. And Douglas County marijuana farmers have figured out a the way to avoid that — drive south and sell their pot in California.

At the large marijuana farms that have begun to dot the Southern Oregon landscape, growers have begun to work cooperatively, according to law enforcement officials.

Each grower can raise enough for a maximum of four cardholders, but four growers working at one site can have 16 cards, which allows them to be tending six mature plants and 18 immature plants per card. At 24 plants per card, and 16 cards, that’s a grow site with 284 total plants, all legal.

All supposedly destined for medical marijuana cardholders free of charge. Medical marijuana law says designated growers can’t charge for their crop, or even the time they spend tending it.

“If you fly over Douglas County it’s the most common thing in the world,” Strickland says. But he isn’t buying into the idea that all those growers are altruistic in nature.

The trick for marijuana farmers, Strickland says, is getting enough cardholders to designate them as their growers. Some, he says, advertise on Internet social networking sites for cards, offering an ounce of pot a month for the right to grow 24 plants.

“If people have their cards and a modicum of common sense, it’s hard to catch them,” Strickland says. “And a huge percentage of them are growing for sale.”

Grower gets fulfillment from helping others

Jay Freeman wants it known that there are a lot of medical marijuana growers who do follow the law and who provide marijuana to cardholders for free, as the law allows.

Freeman, who moved to Northeast Portland last year from Seattle, suffers from back spasms. A physician prescribed muscle relaxants that made him sleepy, but didn’t do much for the pain.

So Freeman visited Mothers Against Misuse and Abuse, a Southeast Portland marijuana education center that also serves as a clinic. A short visit with a physician there cost him $200, and after he sent another $100 to the state, Freeman had his medical marijuana card.

He went online looking for a grower but found, as others have, that growers on the Web seemed more interested in securing cards to enlarge their operations. Freeman decided to grow his own, and he learned how by attending meetings at local headquarters for two other advocacy organizations, the National Organization for the Reform of Marijuana Laws and The Hemp and Cannabis Foundation. These contacts allowed Freeman to plug into a local marijuana support network that advocates say is steadily growing.

Indoor growing, Freeman says, has not been that difficult. He grows the limit of six plants and gets a few ounces from each plant, more than he needs. The excess he gives away, through contacts on a social networking Web site he set up last year for medical marijuana cardholders and growers, www.budbook.org.

Freeman, 25, says the street price of marijuana these days is somewhere between $200 and $250 an ounce. Yet by his last count, 197 members from his Web site have given out free marijuana to cardholders. The Web site itself has attracted more than 2,200 members.

“To be able to grow a plant that medicates a person, that a 60- or 70-year-old woman (uses to) relieve her pain, makes a young grower feel so good inside. It’s unlike anything I have ever experienced,” Freeman says.

By Peter Korn  Source.

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