21 HERBAL OWNERS SAY THEY DIDN'T EXPECT PROBLEMS

OWOSSO - When opening their doors for business just a few weeks ago,
the owners of 21 Herbal on W M-21 didn't expect the firestorm of
controversy they find themselves in today.

Because of complaints from members of a Catholic church across the
street, the owners of the medical marijuana facility say they are
willing to relocate their business.

Co-owner Zack, who declined to provide his last name citing
employment concerns, said he didn't intend to upset anyone at the
church, but figures it's better just to move on, although as of now,
he doesn't appear to be breaking any laws.

"As of right now there isn't something solidly prohibiting us from
being here," he said. "Due to the fact they're trying to drive us
out...If it's that big of a problem it's just not worth it."

Zack and co-owner Susan, who also chose not to provide her last name,
thought business for their medical marijuana dispensary would get
underway without a hitch.

"(Causing trouble) was not our goal whatsoever," Zack said after
being asked about all the attention his business has received in the
past few days. "We're not trying to be controversial."

The third-party medical marijuana facility became the center of
controversy when Father John Fain, pastor of St. Paul Catholic Church
and dozens of his parishioners addressed the Owosso City Council
during Monday's meeting.

Their main concern was the view from the school's first-grade
classroom window, which is directly across the street from 21 Herbal.

"We are here tonight to express our concern and, I think, even our
outrage that there is a medical marijuana business directly across
the street from our school. In fact, if you look out the first-grade
classroom that's what you'll see," Fain said during public comment at
the meeting.

According to Zack, he made a phone call to the St. Paul Church when
the facility opened and prior to the council meeting. He said he did
not talk directly to Father Fain, but that he had a conversation with
the woman who answered the phone. Zack said they spoke about the
facility's hours of operation. He said he would close down during an
hour stretch of when the children were arriving at school, the same
amount of time while the children were leaving school and would also
close down during the church's Sunday service.

"Whoever I spoke with at the church didn't seem to think it would be
an issue," Zack said. "I thought if it was an issue they would have
come directly to me."

He said church members didn't do that. They instead chose to take it
to the city council. "We could have worked out some sort of
agreement," Zack contends.

Zack said he wanted to address some of the concerns St. Paul
parishioners raised to the city council. First, his method of
operation, which some consider questionable, but which appears to be
within the law.

Both Zack and Susan are registered medical marijuana patients and are
considered primary caregivers, which allows each of them to possess
up to 2.5 ounces of marijuana and to grow up to 12 plants apiece.
Zack has been approved for medical marijuana because of persistent
muscle spasms while Susan cited migraines as her illness.

As part of their business, Zack and Susan use a portion of their own
medical marijuana, along with marijuana from what Zack calls
"overages from other caregivers and patients," to supply his
business' members. He can still only possess 5 ounces at the store at
any time because both he and Susan are caregivers. Because each
caregiver is only allowed 2.5 ounces of marijuana, but can grow up to
12 plants, they often have more than they can legally possess, he said.

Through what Zack calls "reimbursements for donations," because it is
illegal to sell the controlled substance, he obtains marijuana from
other caregivers and as a third party, 21 Herbal, through the same
concept of "reimbursements of donations," distributes the medical
marijuana to registered card holders only, who pay a $5 fee for
lifetime membership. That is where the law gets tricky.

21 Herbal and medical marijuana dispensaries alike operate under a
specific provision within the Michigan Medical Marijuana Act that
states "A registered primary caregiver may receive compensation for
costs associated with assisting a registered qualifying patient in
the medical use of marihuana. Any such compensation shall not
constitute the sale of controlled substances."

According to Mike Compeau, Owosso public safety director, because
dispensaries say they are receiving the money through donations,
along with the allowed compensation from the growing, processing and
producing of medical marijuana, it is legal.

Zack and Susan's dispensary has about 30 members. They said all of
their members must prove they are licensed card-holders for medical
marijuana and must show paperwork every time they come in the door.

One of the issues raised at Monday's meeting was how a facility may
serve more than five patients per caregiver as outlined in the law.

Compeau said the provision under which they operate is ambiguous and
can be interpreted in many ways. Also, few court cases have
contributed to how it is interpreted. Zack and Susan are within the
law because they are not their patients' registered caregivers, they
are simply assisting patients, which the law states they can legally
do, and receive compensation for it.

"I might read it one way and someone else reads it another way,"
Compeau said. "I may say he can only have five patients, but he says
the number he can assist is unlimited...it's so ambiguous."

As far as the donations go, Zack said they aren't required. When
asked what would happen if someone chose not to donate he said he
still would supply it "if the amount wasn't too great. I do it every day."

21 Herbal also assists in registering for of medical marijuana cards
for $120. The facility does not issue cards.

The ambiguity of the law and its openness to interpretation is why
Owosso and several other communities are struggling to regulate it.

"We're reviewing it, but as far as I see, we haven't seen anything
illegal," Compeau said.

As far as moving to a different location, Zack said the business has
been looking for other rental sites, but because of the attention to
his business, in particular, it hasn't been easy.

"We will be moving to a different location, but nobody will rent to
us," he said. He did have another building owner willing to rent, but
once the church expressed concerns, 21 Herbal was turned down. Zack
noted the irony of the situation. He said by creating so much
controversy about the business and where it is, the church has made
it difficult to find a willing lessee elsewhere.

"They are almost forcing us to stay here," he said.