LAWMAKERS EYE WAYS TO REGULATE MEDICAL MARIJUANA OR REPEAL ITS LEGALIZATION

HELENA -- Key members of the 2011 Legislature are determined to impose
new regulations on a medical marijuana industry that some believe has
reeled out of control the past year.

Others are calling for outright repeal of the medical marijuana law
enacted by a 2004 ballot measure, which 62 percent of Montanans
approved, and one lawmaker wants to put the issue before voters again.

One legislator believes it's time to start taxing what he believes is
an industry with annual revenues approaching $150 million.

Another wants to require a three-physician panel to review a
physician's recommendation that patients can use medical marijuana for
"chronic pain," the most common condition for which a person is
allowed to use the product.

At the very least, major changes are being proposed for a Montana
medical marijuana industry that was often in the news, frequently
negatively, over the past year.

The number of people legally allowed to use medical marijuana in
Montana was at about 4,000 in September 2009. Then, the Obama
administration recommended that federal prosecutors not pursue medical
marijuana users and suppliers if they conformed to state law. Now,
Montanans approved to use medical marijuana has skyrocketed to more
than 26,000 at the end of last month.

At the same time, the business experienced many problems or growing
pains, depending on your perspective.

A medical-marijuana shop was firebombed in Billings and a
Kalispell-area man was murdered and his medical marijuana stolen.

Medical-marijuana dispensaries rented hotels for traveling "cannabis
clinics" where hundreds of people saw a doctor in person or over the
Internet to obtain "green cards" allowing them to legally use the
product. A Billings Gazette reporter obtained a green card in eight
minutes.

"I think the public perception is this is totally out of control,"
said Rep. Diane Sands, D-Missoula, who headed a legislative committee
that studied the issue and drafted some bills.

"In my opinion, the choice is passing a bill that is probably too
restrictive, but it needs to pass, because the other alternative is
that it will be repealed completely and be made illegal."

Sands said the committee's intent "was to honor the fact that the
majority of the public voted to allow limited use of medical marijuana
for conditions where they thought it would provide some pain and
relief or medical relief." The panel also wanted to provide additional
regulation of the industry for health and public safety reasons and
clarify the gray areas.

"The big bill is pretty substantial at this point," she
said.

The estimated $3 million required to regulate the industry would be
paid for by licensing fees from the industry.

Gov. Brian Schweitzer said he's "absolutely convinced" a large number
of Montanans with medical marijuana cards don't have legitimate
medical needs and just want to smoke marijuana "quasi-legally."

"What we need to do is create a system so that we have people who
actually have a medical need for marijuana," he said in an interview.
"There will be a bill that will make it to my desk that is going to
sort of close the loopholes in this medical marijuana. It needs to be
done. It think currently the law is, 'smoke 'em if you got 'em.' "

Tom Daubert, a leading advocate for the 2004 medical marijuana
initiative, said he can't support the various proposals he's seen so
far, but is confident a consensus can be reached at the
Legislature.

When the state Board of Medical Examiners in November required
physicians to conduct "hands-on" physical examinations of patients
seeking medical marijuana authorization, that effectively stopped what
Daubert called the "traveling cannabis clinics."

"In light of what the Board of Medical Examiners has already done,
there is a risk of (the Legislature) overreacting to change aspects of
the law that aren't broken in any significant way," said Daubert, a
volunteer lobbyist for a medical marijuana support group who recently
dissociated himself from a medical marijuana business.

"It's been a tragedy from my perspective on how this issue has become
controversial as a result of a handful of opportunists grossly
exploiting the law's gray areas and loopholes," Daubert said. "Even
those who helped write and promote the law agree with law enforcement
and local governments that too much of what we've seen was not
envisioned, nor intended."

Rep. Gary MacLaren, R-Victor, who served on the legislative panel
studying the issue, said the problem with the original initiative is
that it was so loosely written.

"You either repeal it or start over, or you can put some sideboards on
it," he said.

House Speaker-elect Mike Milburn, R-Cascade, is having a bill drafted
to repeal the law.

"I've had a tremendous amount of feedback from our schools, our
cities, our law enforcement about the problems associated with it,"
Milburn said. "All of the solutions that have come up won't remedy the
problem."

Sen. Jim Shockley, R-Victor, also has a repeal bill standing by if
lawmakers can't put some adequate controls on the industry.

"It hasn't worked out," said Shockley. "There's virtually no control
now, whether you're for it or against it."

Daubert said repealing the law would be "as disastrous as doing
nothing."

"It would be disastrous for patients who genuinely use and need the
medicine," he said. "It would be disastrous for the taxpayers for the
state to redefine 25,000 Montanans as criminals. It would be a law
enforcement nightmare when budgets are tightened."

Rep. Keith Regier, R-Kalispell, said his bill will take whatever
changes the 2011 Legislature makes to the medical marijuana law and
put the entire issue before voters in the November 2012 election.
Montanans could decide to accept the revised law or get rid of the
medical marijuana law altogether.

"I've had a lot of constituents that said the Medical Marijuana Act
(as implemented) wasn't what they thought it was," Regier said. "They
said, 'It's not what I thought I voted for.'"

Sen. Dave Lewis, D-Helena, would slap a 10 percent tax on medical
marijuana growers and has own ideas how to regulate it.

"My philosophy is it's a big industry, it's here, I don't think it's
going to be repealed," he said. "In the meantime, we have to have some
control of it."

Sen. Jeff Essmann, R-Billings, wants to tighten up the ability for
people to be able to obtain a green card for "chronic pain" by
requiring an independent three-physician panel to approve the original
doctor's recommendation. More than 70 percent of the green-card
recipients site chronic pain as their reason.

"What I heard from my constituents is that most of them thought they
were voting for allowing someone that's terminally ill or that had
untreatable pain to receive help, not that they were setting up a
system for 21-year-old ski bums with shoulder pain to get a card from
out-of-state physicians over the phone," Essmann said.

Coming Sunday: A look at the health care issues coming before the 2011
Legislature.

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Highlights of main medical marijuana bills

Here are the highlights of an interim legislative committee's major
proposal to revise the state's Medical Marijuana Act and create a
regulatory structure for the industry.

Rep. Diane Sands, D-Missoula, has introduced the bill on behalf of the
Children, Families, Health and Human Services Interim Committee that she
chaired. Here are its key provisions, according to a summary by
legislative researcher Sue O'Connell:

Creates a state licensing and regulatory structure for medical
marijuana businesses.

The Revenue Department would be placed charge of regulation, while the
Department of Public Health and Human Services would continue to
register patients qualified to use medical marijuana.

Parolees, probationers and individuals under youth court supervision
may not receive cards.

Creates a tiered licensing system for people growing and selling
medical marijuana.

A provider would be an individual who grows or obtains medical
marijuana for registered cardholders and is limited to working with
five or fewer cardholders.

A medical marijuana dispensary may sell marijuana to more than five
cardholders.

A medical marijuana-infused products manufacturer may make products,
such as edible products or tinctures.

A medical marijuana grower may grow marijuana for a dispensary or
infused products manufacturer. This grower must also have a license
for one of those other businesses.

Establishes requirements for people applying for a license to grow and
sell medical marijuana.

Applicants must submit fingerprints for a national criminal history
background check. They may not have felony convictions of any kind,
nor be on probation or parole or be under youth court
supervision.

Applicants may not be licensed if they owe taxes, child support or
student loans.

Applicants must disclose the names of all people affiliated with the
business and those with financial interests in the business.

The bill would require regular monitoring of license holders.
Licensees must provide quarterly reports on sales, revenues and other
items.

The Revenue Department may inspect the business premises and audit its
records.

Gives local government the authority to regulate.

A local government may establish zoning regulations, business
licensing requirements and building codes and standards, but may not
ban medical marijuana within its boundaries.

Establishes new requirement for physicians.

It creates a definition of standard of care and requires physicians to
meet the standard when providing a written certification for use of
medical marijuana. They must have an office in the state and not
located where medical marijuana is grown, stored or
distributed.

It prohibits physicians from having any financial ties to a medical
marijuana business if they provide written certifications for medical
marijuana.

Revises the existing law to clean up gray areas.

It requires that applicants for medical marijuana registry cards and
business licenses be Montana residents. A proof of residency would be
required for applicants using medical marijuana cards. There would be
a two-year residency requirement for people applying for licenses to
grow or sell the product.

Two physician certifications are necessary to get a card for chronic
pain. A person with cancer, glaucoma, HIV or AIDS may receive a card
when the symptoms of the condition are seriously affecting the
person's health status.

It increases from 1 ounce to 2 ounces the amount of usable marijuana a
person may possess, but caps purchases at 2 ounces per month.

The current law has no limits on the frequency of purchases.

It prohibits the smoking of medical marijuana in public.

It repeals the so-called "affirmative defense" that people could raise
in court, even if they weren't registered to use or grow medical
marijuana or had more than the allowable amount.