CITY TO SIT TIGHT UNTIL SUPREME COURT ADDRESSES MEDICAL MARIJUANA
DISPENSARY ISSUE

For now, the city of Ypsilanti will await a ruling from the Michigan
Supreme Court before it takes any action regarding recent appellate
court decision concerning medical marijuana dispensaries.

On Wednesday, the Michigan Court of Appeals ruled that "medical use,"
as defined in the Michigan Medical Marihuana Act, does not include
"patient-to-patient sales." The act was passed by 63 percent of
Michigan voters in 2008.

"At this time, I don't foresee the city administration doing
anything," said City Attorney John Barr. "We are watching, the city is
cognizant of it. If it appears we should take action than we will."

On Thursday, Barr said he was writing a draft opinion for City Manager
Ed Koryzno as how the city should handle the situation.

In February, the city adopted ordinances regarding the growing and
dispensing of medical marijuana as well as zoning. Shortly thereafter,
it began issuing permits.

Ypsilanti now has four dispensaries and a licensed grow facility still
in the planning stages.

The case involved the Mt. Pleasnt-based Compassionate Apothecary, LLC.
The dispensary, which opened in May 2010, is owned and operated by
Brandon McQueen, a patient and primary caregiver, and Matthew Taylor,
also a caregiver.

According to the ruling "...the 'medical use' of marihuana, as defined
by the MMMA, does not include patient-to-patient ';sales' of
marihuana, and no other provision of the MMMA can be read to permit
such sales. Therefore, defendants have no authority to actively engage
in and carry out the selling of marihuana between (dispensary) members."

The ruling states the dispensary can be shut down as a public nuisance
as it is in violation of the Public Health Code.

The dispensary has 27 storage lockers that are rented to its members
for $50 a month. Patients who use the facility rent lockers where they
sell excess marijuana they have grown but do not need to use to treat
their condition. In addition, a caregiver can rent a locker if the
patient does not need all of the marijuana grown by the caregiver.
Both patients and caregivers are able to store 2.5 ounces and a
caregiver can store 2.5 ounces for each patient.

Members paid $5 per month and the owners of the dispensary retain at
least 20 percent of the sale price.

In the first two and a half months of its operation, the dispensary
sold approximately 19 pounds of marijuana. Its "farmers" made more
than $76,000. Before expenses were paid, the dispensary earned
approximately $21,000.

In July 2010, a complaint was filed by Isabella County by Prosecuting
Attorney Larry Burdick against the dispensary, stating its operation
was not in accordance with the MMMA and was a public nuisance because
it violated the Public Health Code. The trial court found the
dispensary was operating in accordance with the MMMA and the decision
was appealed.

Barr said the MMMA has created a lot of uncertainty and problems
because it is so poorly drafted.

"A 'good law' gives direction so people know what they can and cannot
do whereas the medical marijuana law essentially gives people a get of
jail free card so they can do certain things and not be prosecuted,"
Barr said.

"It's caused a lot of uncertainty," he said. "Most cities and
municipalities have a lot of unanswered questions."

Barr said the city did not try to say if the law was legal or not.
Instead, it passed zoning regulations and other ordinances regarding
the dispensaries.

Included in the legislation is a provision stating it does not give
the dispensaries greater protection that it would have otherwise
because the use and sale is against federal law. If state law was
found to not be legal or valid, it does not guarantee anything, he
said.

"They're acting at their own peril," he said.

Court opinions have been issued in both Oakland and Wayne counties and
the Michigan Supreme Court has stated it will hear appeals regarding
the matter.

Barr said there is still a level of uncertainty that will remain until
the Michigan Supreme Court determines what the law really means. He
emphasized the city did not wait for that interpretation, had a number
of meetings, passed ordinances and therefore have a plan in place.

"We're watching to see how the court opinions affect our plan," he
said.

State Attorney General Bill Schuette praised the ruling, saying it was
a victory for public safety and local communities.

"This ruling is a huge victory for public safety and Michigan
communities struggling with an invasion of pot shops near their
schools, homes and churches," said Schuette in a press release. "Today
the Court echoed the concerns of law enforcement, clarifying that this
law is narrowly focused to help the seriously ill, not the creation of
a marijuana free-for-all."

According to the release, Schuette will send a letter to the state's
83 county prosecutors explaining that the ruling clearly empowers them
to close dispensaries and provide instructions on how to file similar
nuisance actions to close dispensaries in their own counties.

Michigan is one of 17 states in addition to the District of Columbia
that has active programs allowing cultivation and possession of
marijuana for certain medical conditions.