Medical Marijuana Center and 70/30 Rule

HB1284 Requirements

HB1284 requires that a Medical Marijuana Center cultivate its own medicine. The concept is that one business, the MMC, will operate both a retail and cultivation operation. Many people believe that a grower can merely contract with a MMC and continue wholesale sales of MMJ to MMCs. This is not the case.

Only the MMC can apply for the optional grow premises license and only MMCs can sell MMJ, including to each other.

The 70-30 Rule

The state requires that MMCs established (a lease, payment of local and state sales tax and/or applied for local approval at both locations must certify that the MMC is growing at least 70% of its own medicine by 9/1/10.

The MMC can sell or purchase 30% of the medicine from another MMC (not a grower). The concept is that lag time between harvest and acquisition of unique strains can be facilitated between MMCs.

The question arises as to how the MMC will account for 70% cultivation of its own medicine.

Here it is:

The MMC can only possess 2 ounces and cultivate 6 plants for each patient that assigns the center as their “primary center.”

Be reminded that the MMC can work with any patient (no more “temporary” caregiving) and a patient can go to any MMC. As such, “primary center” means favorite or main center and is not exclusive. This means that the 100% inventory is based on the number of patients who assigned the MMC as their primary center, multiplied by 2 ounces.

Be wary. The state may not be very good at this at first, but it will not be long before it is very experienced with MMJ cultivation. Do not take chances and keep good records in the event of a dispute. You do not want to lose your investment over a few ounces!

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