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Why Regulation May Be Good for the MMD Business

By Frank Cseke of The Offices of Frank A. Cseke

Lawmakers in the state of Colorado recently passed its first initiative toward greater medical-marijuana regulations, by a 6-1 vote in the Senate Health and Human Services Committee, just before the end of January 2010. The current proposal before the Senate floor would essentially prevent doctors from prescribing medical-pot for recreational users by imposing bona fide medical visits on patients and doctors, who will have to fulfill a full health exam, and prohibiting doctors from receiving compensation from the medical-marijuana dispensaries that rely on the current “prescriptions” for their patients. Many advocates in the medical-marijuana community see the regulations from the state as infringements on patients’ rights and the doctor-patient relationship.

Presently, Colorado has some medical-marijuana regulations on the books that are promulgated by the State Board of Health which respect Amendment 20 and make medical use of the drug legal. These are commonly referred to as the patient’s rights laws in Colorado that apply to the legal use of medical-marijuana pursuant to 5 CCR 1006-2 under the auspices of the Department of Health and Environment. There are essentially seven parts of 5 CCR 1006-2:

• Regulation 1: Establishment and confidentiality
of the registry for the medical use of marijuana
• Regulation 2: Application for a registry
identification card
• Regulation 3: Verification of medical
information; issuance, denial, revocation, and
form of registry identification cards
• Regulation 4: Proper notification for Change in
applicant information
• Regulation 5: Communications with law
enforcement officials about patients in the
registry
• Regulation 6: Debilitating medical conditions
and the process for adding new debilitating
medical conditions
• Regulation 7: Determination of fees to pay for
administrative costs of the medical use of
marijuana program

For more explanation as to these go to:

http://www.coloradomedicalmarijuana.com/medical-marijuana-patient-rights.htm.

The upshot of the regulations proposed is that Colorado is taking medical-marijuana seriously as a form of legitimate business within its borders while also pleasing critics who believe recreational users are abusing the system. The downside is what some pot-advocates feel is an intrusion into a patient’s right to a doctor of their choosing, which is often such practitioners whom they know are willing to prescribe medical-marijuana despite federal regulatory sanctions. Moreover, they argue regulations present a problem when it comes to access to the “treatment” due to greater costs and lack of prescribing M.D.s not to mention those receiving Veterans benefits, Medicaid, and Medicare will be limited even more; although, critics of medical-pot support this limitation on the grounds that tax revenues should not supplement the purchase of a drug that is still federally illegal.

In Fort Collins, Colorado, where dispensaries are allowed –though new business seekers face pending licenses because of a three-month moratorium – some of the worries by anxious dispensary owners revolves around local regulations, mainly through uncertain zoning ordinances. While the northern Colorado city has become somewhat notorious throughout the state for having very strict zoning, a significant number of homeowners and businesses are calling for the regulations so as to keep dispensaries in “appropriate” areas. Medical-Marijuana dispensary owners, or MMDs, have cried out against any measures that could relegate their existing or potential shops to “undesirable” locales. The big question for the zoning board will then be what is “appropriate” and “undesirable” for the shaping industry. On the one hand, dispensaries in residential neighborhoods will not likely be feasible given the practical aspects of being able to insure the business let alone the political reaction from the voting power of homeowners. On the other, meaningful respect for patients not to have to go to areas which are either inconvenient or abject may behoove local authorities to formulate some kind of balanced “zoning-scheme.”

Regulation by itself is not empirically a bad thing. It is usually the manner it is administered and how much which make a difference, at least in terms of efficacy. The history of tobacco regulations reflects, in theory, how regulations can work to protect consumers yet allow for capitalism to take its course. One can hardly argue that tobacco has been overly regulated while at the same time hold that the industry is struggling to make a profit. At any rate, some regulation works and there ought to be some deference given to consumers when it comes to making health decisions. In the debate surrounding MMDs, the evolution of the pot-trade is yet to fully unfold as no one can tell what the final federal response will be. With the recent raid of a Denver medical-marijuana lab, however, Colorado patients and dispensary owners are keeping a close watch – that is for certain.

Frank A. Cseke is a Fort Collins, Colorado-based attorney whose practice is focused on the areas of Estate Planning (Wills and Trusts), Business Law, VA and Governments Benefits Assistance. He serves as President of the Northern Rocky Mountain Chapter of the Society of Financial Services Professionals. Before setting out on his own, Frank practiced civil litigation and criminal defense for two Northern Colorado law offices, where in his general practice work he grew his passion for Estate Planning and Elder Law. Moreover, he has taken on an emphasis in Veterans and Special Needs trusts. Frank received his J.D. from the University of Colorado, School of Law (Boulder), in 2004, where he also worked as a student associate for LexisNexis, Inc. Prior to attending law school, Frank gained experience as an entrepreneur and LLC manager, and later as General Counsel, with 4 Guys Investments, LLC of Fort Collins. Frank obtained his undergraduate degree (a B.A. in Political Science with High Honors) from Franklin Pierce University (Rindge, NE) in 1999, where he was a member of Alpha Chi, Phi Alpha Theta, and Sigma Tao Delta. Frank, who grew up in Fort Collins, Colorado, now lives there with his wife, Daffney, and his son, Matthew, and step-son, Austin. "We are here to add what we can to life, not to get what we can from life." -William Osler

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Frank, I don't pretend to understand the whole idea of the use of marijuana for medical reasons. But it seems to me that this should be highly regulated. I don't smoke pot, though I used to on occasion years ago. I never got into it -- never saw the point. I don't see why the medical industry should even vaguely promote the use of a substance that alters the mental state of its users to the point of distraction. These people drive cars, operate machinery, and even make decisions that could effect others. There just has to be another, better way. Just my opinion.

Over 60 percent of Colorado supported Amendment 20 legalizing medical-pot. So, it is here whether good or bad, which is why regulation is critical at this early stage. Some argue alcohol alters the mind more significantly than pot, and there are statistics to support the dangers posed by this long-time legal drug. No comparable statistics exist to show medical-pot either poses the gravamen of social harms as does alcohol or that other similar prescribed drugs alter the mind any less. Thank you for your comment. You make a good point.

I've never used drugs and detest the people that promote them for profit. Our children have enough challenges without being pressured by drugs. Regulations are only as good as the enforcements associated with them.
Thank you for sharing, Frank.
Best wishes.
Frederick

Hopefully the federal and state governments will enforce the regulations to address recreational users/abusers as well as use by minors. The medical-marijuana issue is a telling one in that it calls into questions needed regulation for a whole host of drugs that the federal government does not make illegal. I see cases quite often where families have been destroyed by alcohol, tobacco, and prescription drugs more so than by medical-pot.

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