After September 15, Can I Still be a Caregiver?

The Bureau of Medical Marijuana Regulation is standing firm on their position that all marijuana centers that are not licensed by the State under the Medical Marihuana Facilities Licensing Act, will need to shut down, and will get a cease and desist letter at that time. While the centers are not mandated to shut down, the State Bureau of Licensing and Regulatory Affairs has made clear that any center that continues to run after receipt of the cease and desist will most likely not be granted a license. Further, the State has stated recommended Final Rules concerning Medical Marihuana Facilities licensing, which is going to permit or registered qualifying patients to receive house shipments from provisioning centers (with constraint, naturally) and also will additionally permit online ordering. So, where does that leave registered caregivers, who were anticipating to be able to remain relevant to their clients until 2021?

Traditional Model

The old model for registered caregivers was rather easy. You were allowed to grow up to twelve plants for each patient. You could have 5 clients, besides yourself. If the caregiver was also a patient, they could also grow twelve plants for individual use too. So, a caregiver could cultivate an overall of seventy-two marihuana plants. Many caregivers produced far more usable marihuana from those plants than they could use for patients and individual use. The caregivers would then sell their excess product to medical marihuana dispensaries.

Under the emergency rules, marihuana dispensaries that were running with municipal approval, but that had not obtained a State license were permitted to continue running as well as purchasing from registered caregivers. Those facilities were allowed to purchase caregiver excess for thirty days after receiving their State license for supply. That indicated significant profits for caregivers and also substantial supply for dispensaries.

After September 15, 2018

The troubles for registered caregivers only begins on September 15, 2018. All State licensed centers that will remain open and operating can not buy any type of product from caregivers. State Licensed Provisioning Centers, but statute and administrative rules are strictly forbidden from buying or selling any kind of item that is not produced by a State Licensed Grower or Processor that has had their item tested and certified by a State Licensed Safety Compliance Facility. Any State Licensed Provisioning Center that is found to have product available for sale that is not from a State Licensed Grower or Processor is subject to State sanctions on their license, consisting of short-term or permanent retraction of the license. Given the danger, licensed centers are very unlikely to run the risk of buying from a caregiver, offered the potential effects.

Further, the unlicensed centers to whom caregivers have been continuing to offer to, even throughout the licensing process, will certainly be shutting down. Some might continue to operate, but given the State's stance on centers that do not follow their cease and desist letters being looked at very unfavorably in the licensing process, the market will certainly be significantly reduced, if not eliminated. Therefore, caregivers will certainly not have much recourse for marketing their overages, and also will be limited only to their current clients.

New Administrative Rules

A hearing will be held on September 17, 2018 regarding the brand-new proposed final administrative rules for the regulation of medical marihuana facilities, which will become effective in November, when the emergency rules cease being effective. Those final proposed administrative rules allow for house delivery by a provisioning center, and will additionally allow managed online purchasing. Those 2 things take away much of the function contemplated by caregivers under the brand-new rules. Clients would still require them to go to the provisioning center to grab and deliver marijuana to patients that were too ill or that were handicapped and can not get to those licensed facilities to get their medical cannabis. With this adjustment to the administrative rules, such patients will no longer need a caregiver. They will have the ability to place an order online and have the provisioning center deliver it to them, essentially removing the necessity of a caregiver.

Conclusion

For better or worse, the State is doing everything it can to eliminate caregivers under the new administrative plan, even prior to the intended removal in 2021 contemplated by the MMFLA. There are a great deal of reasons the State could be doing it, but that is of little comfort to caregivers. The bottom line is, the State is eliminating the caregiver model, and they are moving that process along with celerity. The State is sending the message that they want caregivers out of the industry immediately, and they are establishing regulations to make sure that takes place sooner rather than later. The caregiver model, while advantageous and required under the old Michigan Medical Marihuana Act structure, are currently going the way of the Dodo. Like everything else, the Marihuana laws are evolving, and some things that have prospered in the past, will not make it to see the brand-new legalized era.

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