FEDS DEMAND USERS PREPAY FOR THEIR POT

OTTAWA -- Health Canada is getting tough with patients who use
government-certified medical marijuana, demanding full payment in
advance before shipping the weed.

The move, effective Nov. 30, is designed to halt the rising number of
accounts in arrears -- and force more patients to pay off old debts
that now total more than $1.2 million.

"This change to a purchase-in-advance system will streamline the
order and payment process and will prevent further increases to the
debt load of the department," says a recent Health Canada letter
issued to users.

More than 4,600 people in Canada are licensed to use medical
marijuana to treat a wide range of conditions, including chronic
pain, that may not be resolved by standard prescription drugs.

Several court rulings forced a reluctant Health Canada to get into
the marijuana business in 2003 so that bona fide patients would not
have to rely on the black market for supplies.

Most authorized users grow their own pot or have someone else grow it
for them, all under licence, but some 800 are currently buying their
medical marijuana from Health Canada.

The government sells dried marijuana for $5 a gram -- about half the
price of street marijuana -- or 30 seeds for $20, plus GST and
provincial taxes.

The marijuana, which has received poor reviews from many users for
being harsh and ineffective, has a THC content of about 12.5%. THC is
the main active ingredient of the cannabis plant.

Previously, users could order and pay later. But hundreds of patients
- -- who are often seriously ill, unable to work and on welfare or
disability pensions -- could not keep up with their Health Canada
bills and built up large debts.

Beginning Nov. 30, Health Canada will require a money order,
certified cheque, Visa, Amex or MasterCard before medical marijuana
is shipped, normally by courier.

And those customers with accounts currently in arrears must agree to
a payment plan with Health Canada before receiving any more product.

Interest accrues on overdue accounts at 3.5%, and Health Canada has
sent 31 stale accounts to collections agencies.

Almost 1,100 customers have fallen behind in payments so far, forcing
Health Canada to carry some $1.2 million in accounts overdue for more
than 30 days. About half of the accounts have been overdue for a year or more.

"This change (in policy) does not alter Health Canada's commitment to
providing fair and equitable access to marijuana for medical purposes
and ... will have no impact on the current authorization process,"
spokeswoman Christelle Legault said in an e-mail.