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New industry, new jobs, but buyer beware

Tuesday, Aug 20, 2013 - Posted by Rich Miller

* A buddy of mine told me the other day that he’s leaving politics and going to work for a medical marijuana-related company. A childhood friend, a family farmer, asked me recently about opportunities for him in the med-mar business.

I told my buddy to be very careful and told my childhood friend that this would be big business with huge startup costs and possible federal prison risks, so he might wanna think again.

* Even so, a new industry is being created here in Illinois, and the National Cannabis Industry Association is holding a big conference in Chicago billed as “the first comprehensive marijuana business symposium ever conducted in the Midwest.”

* This is serious stuff

This day-long educational program will be a unique opportunity to glean information from cannabusiness professionals and experts in the fields of regulatory models, operations, and ancillary businesses.

* One of the speakers…

Hilary Bricken
Partner, Canna Law Group
Seattle, WA

Regarded as one of Washington State’s premier cannabis business attorneys, Hilary helps cannabis companies of all sizes with everything from corporate structure and intellectual property protection to branding, licensing, and medical cannabis law. Hilary’s primary focus is helping cannabis businesses navigate the increasingly confusing and murky legal climate surrounding Washington State medical and recreational cannabis laws. She has represented clients struggling with a host of common problems in the industry, from business license denials, revocations, and injunctions to land-use disputes and moratoria on cannabis businesses.

Industries need lawyers and lobbyists, and CPAs

Bridge West, CPAs is currently the pre-eminent accounting firm serving the cannabis industry in the United States, and internationally.

Founded by two CPAs in California and Colorado with decades of experience in this field, Bridge West intends to create affiliated offices in every major city and state which has legalized cannabis use.

* But this is not a good thing

Chicago’s first medical marijuana clinic, Good Intentions LLC, opened its doors to a string of new patients Wednesday in Wicker Park.

The clinic, strategically opened near the Kennedy Expressway and adjacent to two other medical facilities on Ashland Avenue, accepted its first patients at 10 a.m.; by mid-morning, DNAinfo Chicago reported more than 30 patients had already visited.

“We’ll be informing people about the Illinois medical marijuana program,” Good Intentions owner and registered nurse Tammy Jacobi told Fox Chicago. “We’re going to be establishing relationships with our doctor. We’re encouraging patients to contact primary doctors first but we want people to know that we’re here, they can talk to us, find out if medical marijuana may be right for them.”

The new law requires that patients have an “existing relationship” with a doctor before they can get medical marijuana, so this looks like a way to establish that relationship.

* Some folks weren’t all that happy with what the clinic was offering

On Wednesday, the clinic charged some people a $99 fee for an individual care plan that would later be formulated. […]

Stuart Bander, 50, who said he’s been suffering from multiple sclerosis for 20 years, was disappointed with the staff’s answers to his questions about the law.

“I know more than they do,” he said. “They’re doing nothing.”

A $99 fee up front to establish a care plan that isn’t yet formulated?

What?

* The state is apparently looking into it

Just before the clinic closed for the day Wednesday, two men who said they were from the state medical board showed up and met privately with Murray.

When asked about the meeting, a spokeswoman for the Illinois Department of Financial and Professional Regulation, Susan Hofer, said she could not confirm that anyone from the department had been to the office.

Hofer said that because rules for the “prior relationship” with the doctor who helps a patient qualify to receive medical marijuana haven’t been established yet, nobody can say whether what’s going on at this clinic would qualify as a prior relationship when the law goes into effect.

I called Ms. Hofer today. By law, she could neither confirm nor deny that there is any sort of investigation.

But, Hofer said, “The law is very explicit that your personal physician… would be the one who certifies that you’re eligible,” adding, “The people who are eligible for medical marijuana are already under the treatment of a doctor.”

No rules have been written yet, Hofer stressed, but “from the perspective of our Department, a doctor-patient relationship would have already been developed because the patient already had the disease that would have qualified him or her for medical marijuana. If you had that, why would you need to go to another clinic?”

Exactly.

It’s probably best to shy away from such places. Save your money.

       

25 Comments
  1. - Dan S, a Cubs fan - Tuesday, Aug 20, 13 @ 2:44 pm:

    There won’t be any Federal legal issues, this Adminstration pick’s and chooses which laws they enforce. Those guys might as well cash in.


  2. - formerpolitico - Tuesday, Aug 20, 13 @ 2:54 pm:

    If this is supposed to be serious medicine for serious ailments, the we don’t want the California model- ever see those signs along Venice Beach saying “The Doctor is in” with a marijuana leaf? For money they will ‘prescribe’ marijuana for you if you just complain about aches and pains or trouble sleeping. And these are real doctors! So let’s keep it MEDICAL marijuana (and use pills rather than roaches if possible!)


  3. - Empty Suit - Tuesday, Aug 20, 13 @ 2:57 pm:

    >Hilary Bricken
    Partner, Canna Law Group
    Seattle, WA

    Regarded as one of Washington State’s premier cannabis business attorneys


  4. - Rich Miller - Tuesday, Aug 20, 13 @ 3:05 pm:

    ===There won’t be any Federal legal issues===

    Tell that to all the people who’ve been busted so far. They might be surprised to hear it.


  5. - 47th Ward - Tuesday, Aug 20, 13 @ 3:17 pm:

    Your farmer friend might do well if we could promote industrial hemp in Illinois. Perhaps when the hysteria over this harmless and beneficial weed dies down, we can more fully embrace the economic potential of hemp production.

    Oil, biodiesel, fabric, paper, building materials, and on and on and on. U of I could really be at the forefront of technology transfer too. We just have to let it happen and the market will take off.

    The marijuana being developed for medical use is high grade, often hydroponic and small batch, grown largely indoors. Not the best product for a traditional farmer to get into. Hemp on the other hand is perfect and can easily be rotated into current fields to supplement corn and soy beans.


  6. - Grandson of Man - Tuesday, Aug 20, 13 @ 3:29 pm:

    I drove by the Chicago clinic yesterday, to see what the first Illinois MMJ clinic looks like. I didn’t see it, but I could’ve missed it. I didn’t see anything there that looked like a clinic. It’s in a tiny strip mall. I think I read that this clinic or owner had legal problems in Michigan.

    I agree that if patients were already diagnosed and treated, they wouldn’t need to go elsewhere to establish a doctor-patient relationship and pay needless fees.

    There is a massive market for recreational and medicinal marijuana. I hope we can soon tap into these markets for job creation and tax revenue.


  7. - Ron Burgundy - Tuesday, Aug 20, 13 @ 3:35 pm:

    Funny aside from a friend: A classmate of mine from IL was hiking with her family in Colorado and one of their young daughters took a fall and cut her leg up in the mountains. They got in the car and started driving looking for some first aid. Seeing a sign for a “Medical Clinic,” they go inside looking for help. Much to their surprise the “Clinic” didn’t have any bandages… Quite an education for the little ones. Coming soon to Illinois, that and as one radio host quipped, teenagers suffering from glaucoma.


  8. - Rich Miller - Tuesday, Aug 20, 13 @ 3:39 pm:

    ===Coming soon to Illinois, that and as one radio host quipped, teenagers suffering from glaucoma. ===

    They may have glaucoma, but they can’t get med-mar under this law.


  9. - 47th Ward - Tuesday, Aug 20, 13 @ 3:42 pm:

    There is some medical support for using mj to treat children with epilepsy but not enough yet to get the law amended. I think Gov. Christie is taking the right approach, if a doctor believes this will help a minor, the age of the patient shouldn’t matter.

    This is not recreational use, despite many preconceived notions otherwise.


  10. - Keep Calm and Carry On - Tuesday, Aug 20, 13 @ 3:51 pm:

    Ummm…. guys…

    It appears Ms. Jacobi’s nursing license may be under review due to her prior work in Michigan as owner of a medical marijuana dispensary.

    www.hollandsentinel.com/news/x671078369/Marijuana-dispensary-closed-as-owner-s-nursing-license-under-investigation

    “A Saugatuck woman has closed her medical marijuana dispensary, Good Intentions Paving Co., following a visit this week from WEMET drug enforcement officers and a state representative who said her nursing license was under investigation…

    Her worries began when a representative from the state Department of Licensing and Regulatory Affairs came by this week with news that her nursing license, which she maintained while running the dispensary, was under investigation.”

    It appears from multiple news stories available online that Jacobi has had more than a few run-ins with the law in regards to her medical marijuana dispensary.

    Does this impact her ability to operate in Illinois? Or can anyone open a dispensary? Who is the appropriate authority to check with?


  11. - Jim - Tuesday, Aug 20, 13 @ 3:52 pm:

    groundwork for medical marijuana sham is being established. should be fun to watch unfold.


  12. - Arthur Andersen - Tuesday, Aug 20, 13 @ 3:53 pm:

    You gotta wonder what type of snacks are out in the Waiting Room at Canna Law Group.


  13. - Sandy Champion - Tuesday, Aug 20, 13 @ 4:13 pm:

    If Good Intentions is/was running a licensed medical cannabis business in Michigan, shut down or not, and wants to cash in on Illinois law they should be watched and the same to anyone else who thinks they can rail the system. This why background checks are so important, albeit not so cool for the sick or dying. I think all these places need to wait for the rules to be placed? This is not California and we plan to keep it that way.


  14. - Fed up - Tuesday, Aug 20, 13 @ 4:16 pm:

    47th ward
    Not often in agreement but hemp would be a beneficial crop, the hysteria associated with it is ridiculous. It is very useful in many applications. No fan of cannabis but treating it like tobacco & alcohol, and taxing it would be fine with me. Don’t believe in smoking anything as a medicine, but some respected physicians believe in it, thou usually not in a smoked application.


  15. - homunculus - Tuesday, Aug 20, 13 @ 4:18 pm:

    Glaucoma is a debilitating medical condition in the bill; can’t get MM under 18 years old, even if you have a condition.

    While society is trending towards decriminalization, crossing unknown prosecutorial boundaries is still ripe for a federal drug charge.


  16. - Jeff Trigg - Tuesday, Aug 20, 13 @ 4:22 pm:

    Goes to show the regulations in this law are overkill. The system they put in place benefits a select small group of profit makers at the expense of real patients. Many of those patients are poor because of their condition and can’t afford to have an ongoing relationship with a primary care physician, so its not safe to assume everyone already has a relationship with a physician.

    I have Parkinson’s, which is a qualifying condition, and haven’t been able to afford to see a doctor in more than 5 years. So I’m out of luck because I’m poor? I can walk into a Dentist office, whom I’ve never seen before, for a tooth ache and walk out with a script for Vicodin or other dangerous opiates. Maybe we need to put direct police feed video cameras on all the harsh legal narcotics.

    Why doesn’t the restrictive doctor provisions of this regulation violate the 14th’s equal protection clause? Not to mention several other parts of the regulation. Those poor patients are the ones who should be allowed to grow it and share it with other patients and take part in any profits that can be found from it.

    This will never work long-term, but it was something I guess. A select few will be the only ones who profit, while patients will end up with an over-priced, inferior product. And the black market will still thrive.

    ==and use pills rather than roaches if possible!== There are all kinds of medicine that does not come in pill form. Its silly to assume only pills can be medicine, unless you work for big pharma I guess. Vaporization and ingestion are the methods most used by medical cannabis patients. Taking a pill when your problem is extreme nausea that causes you to throw up hundreds of $ of pills doesn’t work.

    ==There is some medical support for using mj to treat children with epilepsy but not enough yet to get the law amended.==

    What’s the government evidence behind the government ban on all cannabis? That’s the better question. Kids with severe epilepsy shouldn’t have to prove it helps them, the government needs to prove it doesn’t and any harm.

    Where is the government evidence behind the ban on industrial hemp? The ban on industrial hemp is paranoia and fear, for the most part, not science or evidence the government has come up with t0 justify it. Well, same thing with this medical cannabis law in Illinois, its mostly about unfound paranoia and fear, and that’s too bad. This law is definitely not recreational use, and is nothing like California or Washington, unfortunately.


  17. - Belle - Tuesday, Aug 20, 13 @ 4:22 pm:

    My biggest concern with trying to make it in this business would be locking horns (taking business)with groups like the Spanish Cobras, Latin Kings or their ilk.


  18. - Anyone Remember? - Tuesday, Aug 20, 13 @ 4:34 pm:

    Has there been any discussion on how the “growing centers” will be selected? There’s only one per … State Police district, correct? Who will make the selection? Without proper scrutiny, this could be another Argosy casino license situation.


  19. - John A Logan - Tuesday, Aug 20, 13 @ 4:38 pm:

    Good to see things are off to a good start.


  20. - dan linn - Tuesday, Aug 20, 13 @ 4:42 pm:

    *******My biggest concern with trying to make it in this business would be locking horns (taking business)with groups like the Spanish Cobras, Latin Kings or their ilk. **********

    Ending prohibition entirely would be the best way pull one financial rug out from under organized crime. Obviously, the medical cannabis program in IL will not accomplish that but it is a step towards educating people about this plant and removing the fear that so many people have regarding cannabis.

    Industrial hemp in Illinois should be a no brainer but still faces the hurdle of a federal prohibition. The money behind legalizing industrial hemp is greatly overshadowed by that of medical cannabis.


  21. - Rich Miller - Tuesday, Aug 20, 13 @ 4:47 pm:

    JAL, there are always gonna be scammers in any industry. The government needs to stay on this, and I think the regulators here are doing so.

    But, whatever, go on and predict the end of the world because evil has been released upon the land.


  22. - Anonymous - Tuesday, Aug 20, 13 @ 5:04 pm:

    Hmmm…not planning to research, but my first thought was: Don’t understand how the Feds can’t be involved…somewhere, if not throughout related processes.


  23. - -HB 1 - Tuesday, Aug 20, 13 @ 5:06 pm:

    Rich- again you hit the nail on the head. This is not an easy task, growing medicinal grade cannabis, is not akin to growing ditch weed. I would think Lisa M’s office might want to look in to Good Intentions. The bill is strict, very strict, this is not the wild west. Con’s like Good Intentions should be ashamed taking advantage of people who are looking for relief. As for Hemp, easy enough to grow, but illegal. Different plant, no THC. For the Fed’s- look in to the busts, you will note a very large percentage focused o; no tax paid, guns in house, selling other drugs, not compliant to location. This is a business, not a cute little hobby. Medicinal is the operative word.


  24. - MrJM - Tuesday, Aug 20, 13 @ 7:13 pm:

    The line between legal and strictly regulated and legal but virtually impossible is fine indeed.

    – MrJM


  25. - Waste of time - Tuesday, Aug 20, 13 @ 7:20 pm:

    1- http://www.denverpost.com/business/ci_22751888/colorado-pot-businesses-cannot-bank-and-no-solution-is

    2- http://www.deadiversion.usdoj.gov/21cfr/21usc/

    3- http://www.law.cornell.edu/uscode/text/26/280E

    None of the real estate involved could be mortgaged, and all will be subject to asset forfeiture. No reasonable investor will support this ‘industry’.


Sorry, comments for this post are now closed.


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