Dispensary Agent Collaborative

Director Humble,

I trust that your reply above has the right dosage of sarcasm that those posts deserved. Everyone knows that the authors of those blog posts want nothing more than to grow weed for themselves and their ONE AND ONLY concern is that they’re adversely affected by the 25 mile rule. The court has spoken and now they’re relegated to attacking you on the blogs. They’ve been doing it for years underground – and probably still are — and are having difficulty adapting to a MMJ model. Accept it for what it is. It’s those strident voices that will be our worse enemy in 2016 if they can’t work within the confines of the law now. This isn’t Colorado – unfortunately in many ways – however, unless we deal the cards we’ve been dealt, we won’t move the discussion and therefore the industry any further. I believe your response says it all so enough said.

In regards to constructive comments/criticism, consider this.
Dispensaries wouldn’t have to spend $20,000 in auditing fees if they’d been doing things right all along. They’re paying to “get the books in order” so that their accountants will be able to defend indefensible conduct. However, the department has to accept some responsibility in that regard. Requiring dispensaries to create some “creative accounting” because you’ve incorporated impossible rules – i.e. can’t pay a dispensary agent for meds — is unrealistic. No one has to get rich, but growers certainly aren’t “donating” time after having spent the considerable amount of time, energy, money and effort for months to grow quality, medical grade cannabis. Dispensaries shouldn’t have to add those people to their boards or pay $50,000/month for “deliveries” simply to compensate growers what is due them. There needs to be a recognition that those people need to be paid, and they’re being paid for the cannabis, not for time and not for gas, etc.

Secondly, unless and until DHS comes down hard on dispensaries who are clearly diverting funds from their non-profit dispensary to their for-profit holding company, the practice is going to continue with reckless abandon. There are cases that I personally know of where the revenues aren’t even hitting the dispensary itself, but are going directly into the holding company’s pockets, well beyond getting a reasonable ROI. The department needs to decide to either make the program a for-profit model, which is really the only model that is sustainable, or not. However, if you’re only giving lip service to a not for profit model, then you’re doing a disservice to all and have created a program ripe for fraud.

How are you holding dispensaries accountable for their educational and charitable endeavors? What about the obligation to provide meds for indigent patients or patients in need? These requirements shouldn’t be reported on annually, but like most not for profits, verification should be made on a quarterly basis. DHS could use some U of A or ASU graduate school interns studying non-profit management to monitor those activities and to provide counsel to the dispensaries.

Moreover, unless and until DHS in fact does step in and hold dispensary owners to the voracity of their original applications (why can’t a dispensary owner who allegedly had a location and money at the time they won the lottery open after almost 1 1/2 years?) Have you considered that perhaps the application was fraudulent in the first place? How is that fair to those applicants who submitted factual applications, yet didn’t receive “the lucky ball?” If the integrity of the process is questioned, you lose all credibility. You were directed by Judge Warner to review those applications and provide administrative relief – that’s it. That was almost 7 months ago and the vast majority of those plaintiffs are still piddling around because the problems they had originally – when they claimed they were taken care of – weren’t. (All of that could be remedied by requiring that whatever location you submit is where you need to open barring some extenuating circumstance, i.e. the building burned down, etc. No more of this landlord letter nonsense when the landlord never intended to lease the site in the first place)..

Why haven’t those people who caused the program to be delayed by a year, been held accountable and their certificates returned to the pool for the next lottery, if appropriate? How is that fair to the majority of people who weren’t awarded a license?

Further, unless and until the department holds dispensaries who are clearly in violation of the AMMA responsible (illegal compassion clubs, illegal collaborative dispensary/compassion club delivery models, etc), the industry perception is that the department is impotent and “DHS isn’t going to do anything”. Whether that’s true or not, that is clearly the perception. Why not report – without divulging confidential information – complaints, pending investigations, closed investigations, etc to a) act as a deterrent and b) provide transparency? I have spoken to local law enforcement and if reports of these illegal clubs were made, that would give them what they need to start the investigation; that apparently hasn’t been done.

I recognize that DHS is not law enforcement, however a task force that makes recommendations to law enforcement when there are clear violations would ensure that integrity is maintained and that there are consequences for misconduct.

Director Humble, while I understand that the department has probably grown weary of litigation, there needs to be accountability or the perception is that there is no accountability. Your staff has seen some incredibly large grows, I’m sure. While DHS has no regs in regards to the size of a cultivation site, an admonition that you “grow at your own risk of antagonizing the Federal government” might be in order. Unless you protect the integrity of the AMMA based on the conduct of a few it will be lost for all forever. Hopefully that isn’t your intention, so these are the types of safeguards that are appropriate and should be considered.

I truly believe that it was initially your intent to build a model program. Unfortunately, with all of the litigation, public opposition, political sabotage, etc., that message has been muddled. However, what else would you expect? When you allocate dispensaries with the drop of a lottery ball, this is what you get. Nevertheless, I’m optimistic that it’s not too late to right the ship and get things in order!

You have dispensary owners with some experience now. You have legal counsel who recognize areas for improvement. You have dispensary agents who are in the trenches every day. You have patients who are stakeholders and have a vested interest. You have law enforcement who has seen breaches in the system. You have enough data and human intelligence — if you really want it — to improve the program dramatically…if that is truly your intent!

It would be money much better spent than funding litigation to keep a 5 year old boy with seizures from getting a tincture to put on his cereal upon the recommendation of a physician and under the watchful eye of distraught parents.

The ball is in your court to take the bull by the horns and to regain control. It’s your call! Hopefully you will be on the right side of history when all is said and done.