COMPASSION CENTERS ORDERED CLOSED

At least two medical marijuana operations in Clare County have been
shut down since the state ruled they are busnesses rather than
dispensaries.

A recent State Court of Appeals decision could affect the way many
medical marijuana growers are operating across the State.

An August 23 decision by the Michigan Court of Appeals reversed
Isabella County Trial Court's decision denying an injunction against
Compassionate Apothecary, LLD, an Isabella County medical marijuana
dispensary.

CA, owned and operated by Brandon McQueen and Matthew Taylor, operated
a facility including rental lockers for CA members to store marijuana
which is "for sale" to other registered qualifying patents or their
primary caregivers. According to the court documents, CA collected 20
percent of any sales.

The Appeals Court also outlined the probability that CA stored more
marijuana than is allowed per person.

The trial court had held that defendants operated CA in accordance
with the provisions of the Michigan Medical Marijuana Act and denied
the State of Michigan's claim that "the business was a public nuisance
because it violated the Public Health Code."

The Court of Appeals reversed their decision because, "The operation
of CA violates the PHC, which prohibits the possession and delivery of
Marihuana...specifically that the medical use of marihuana, as defined
by the MMMA, does not include patient-to-patient 'sales' of marihuana."

It continued, "Accordingly, we reverse the trial court's order denying
plaintiff's request for a preliminary injunction and remand for entry
of judgment in favor of the plaintiff."

The MMMA allows for "reimbursement" of costs relating to growing and
transferring marijuana, but not for patient-to-patient sales.

Clare City Attorney Jaynie Hoerauf notified the City of Clare about
the court ruling, saying, "The Court of Appeals has overturned
Isabella County Circuit Court's decision that the Compassionate
Apothecary (now known as "CA") operated consistent with the MMMA. The
business model that most dispensaries are operating under is ruled
unlawful." She added, "I thought that this might interest you, in
light of the dispensaries operating locally."

Hoerauf said, "Unless overturned by the Michigan Supreme Court, or the
legislature, the ruling is the law in Michigan."

When asked if other dispensaries would be facing problems because of
the ruling, she said, "I think that the burden would be on the
dispensary to show that what they are doing differs from what the
Compassionate Apothecary is doing, in some material way."

Following a lengthy discussion and consideration of three
alternatives, the Clare City Commission approved in a 3-2 vote a
second reading and zoning for the establishment of regulations for
growing and transfer of Medical Marijuana in the city last spring.

The City does not recognize dispensaries.

At the March 7 meeting, Mayor Pat Humphrey, Mayor Pro-Tem Jean
McConnell and Commissioner Bill Horwood voted to approve the proposed
ordinance. Commissioners John Koch and Tom Koch voted against the motion.

Clare Planning Commission had been working on the proposed ordinance
since August, 2010. The first ordinance approved by the planners, was
sent back by the City Commission for changes.

The revised zoning ordinance was developed by Hoerauf and the City
Planning Commission, who recommended its approval to the City after a
meeting February 16.

[Sidebar]
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Compassion Center owner Kris Swaffer speaks..

Farwell's Clare Compassion Center owner Chris Swaffer said the center
for distribution of Medical Marijuana has been closed. "Clare
Prosecutor Michelle Ambrozaitis notified us today (Thursday)
that we must cease and desist business."

"I'm here to answer questions. People are calling and coming in
asking, 'What can I do?'"

Swaffer said there are at least 1,000 compassion centers in the state.
"They have employees and help the economy," he said, "I have six
employees I will have to lay off."

"All this will do is drive the medical marijuana operations back
underground again," he added, "Lawmakers need to remember that 63
percent of voters were in favor of the law."

He said there will be a protest September 7 in Lansing

Harrison Clinic owner Janiese Darnell worried..

Janiese Darnell is the sole proprietor of the Harrison Compassion
Clinic. She said she had also received a notice from Prosecutor
Michelle Ambrozaitis Thursday morning asking that "we cease and desist
operations immediately and that failure to do so will result in legal
action."

"We are all certified patients and caregivers," she said. "We do
not sell marijuana. We do donations under the State law and comply
with all Michigan Medical Marijuana Act regulations."

"We run a safe and caring environment for patients and caregivers.
They are taking that away."

Darnell said the action will mean two layoffs at the clinic including
a Certified Nursing Assistant that is on site three days a week.

She said she plans to be at the protest in Lansing September 7. "I
think it is a disgrace to medical marijuana patients. How are they
supposed to get their medicine now?