Watch the youtube.com clip of him discussing his previous stance on medical marijuana: http://www.youtube.com/watch?v=LvUziSfMwAw

The feds stated that they are also going to go after landlords who rent to marijuana dispensaries.  They can seize their property, prosecute them and make them repay 15 years of collected rents.   This is a surefire way to change the landscape of medical marijuana overnight.

I will say that it seems odd that Obama’s position change so rapidly overnight.   In California, the medical marijuana industry employs thousands of people and generates millions in revenue for the state at a time of crisis.   With unemployment in the US at over 9% it seems like an odd time to stymy the industry.

My only guess is that the pharmaceutical industry sent some heavy hitters to lobby to get these laws changed.   I can understand why: I have thousands of patients who stop paying for their drugs and in turn grow a few marijuana plants.   It is certainly hitting their pockets.

Regardless, I just pray that my patients can continue to get their medication safely.   I would hate to see this pushed back to the black market and have patients have to get medicine illegally.

WHAT CAN YOU DO?   I would suggest you write to your elected officials and let them know your thoughts.  We have the incredible freedom of speech and the press.  I suggest you use it!  Click this link to share your thoughts with President Obama:

http://www.whitehouse.gov/contact

Lastly, why would our President turn his back on the one group that would probably work the hardest to get him re-elected?

What I am about to write is not based on running the day to day operations of a dispensary or seeing the actual numbers of what a dispensary can potentially do.    They are simply observations, based on conversations,  for those of you looking to start or purchase a medical marijuana dispensary to consider.  

IF YOU ARE LOOKING TO BUY ONE:

1. The numbers “aint what they say they are.”    Couple things that I have observed through conversation.   People never tell you how much cash they actually made because they are not allowed to make a profit.   From speaking with this one gentlemen, “the books are cooked every time.”

2. Patients are NOT going to stay loyal.   Expect to lose A LOT of patients.  Why?  Because patients in this industry go to dispensaries where they feel comfortable with the specific people working there.   Yes it is about the medicine as well but more so about the people.   If you buy a dispensary and don’t keep the same staff, expect the numbers to drop off considerably.  This one gentlemen who starts and sells collectives says he takes his staff with him and most of the patients follow him.   New owners are left scratching their heads going “where are all those people who came in.”

3. Your vendors may not keep vending to you.    If you do not have your own source of medicine and are relying on the existing vendors in place to supply you with medicine, don’t be surprised if you can’t get that same top quality medicine.  I don’t know why this is but that’s just what I have been told.

4. Expect theft and there is nothing you can do about it.   I once had a dispensary owner tell me one of his employees stole $10,000 in medicine and took off.    He couldn’t call the police and say “I just had $10,000 in marijuana stolen from me.”   Also, employees feel its their “right” to skim medicine off the top.     I recently had an ex-dispensary owner in Long Beach tell me he was not chosen for the lotto to stay open, and it was “the best thing that happened to me.”

5. You may spend thousands of dollars on a dispensary only to find out the city is going to shut you down in a week.   A LOT of people will see the writing on the wall and try to find an unsuspecting buyer before the city shuts them down.  They may be getting fined daily, weekly or monthy and NOT disclosing that.   CALL YOUR CITY FIRST TO MAKE SURE YOU WILL BE ABLE TO STAY.

6. Call a solid attorney.  Anthony Curiale is in Brea and is the best and most knowledgable that I have seen.   Many attorneys charge $5K to set up a useless corporation that only traps you into following corporate structure.   Mr Curiale has a better way.

7. Understand that the dispensary you are buying may have their pricing completely screwball because a) they were not paying state sales tax b) they are paying their employees off the books and c) were putting cash under the mattress.     As such, they can charge $45 for an eight of an ounce.   You may want to follow the law (HIGHLY RECOMMENDED) and realize you CAN”T charge $45 for an eight in order generate cash flow and may have to charge $55.    THIS WILL GUARANTEE YOU LOSE THE MAJORITY OF YOUR CLIENTS.    They will not understand why they now have to pay more for the same exact service and product.  ooops!

IF YOU ARE LOOKING TO START A DISPENSARY:

1. Expect to put in a LOT of cash up front.

2. Expect to take a LOT of risk.

3. Be completely OK if you lose $100,000 after the city shuts you down or the PD takes all of your lights, plants and cash.

LASTLY,  DID I FAIL TO MENTION THAT THE STATE DOES NOT ALLOW YOU TO EARN THE PROFITS YOU DESERVE FOR TAKING THE RISK AND PUTTING UP THE MONEY!

GOOD LUCK!

MYTH #1. If your doctor says you can grow up to 99 plants and writes that on your recommendation you are protected legally.

The “Cultivation License” being sold for $250.00  by doctors is not a legal document.   This is a scam and a lie being perpetuated by doctors trying to capitalize and take advantage of patients.    A doctor can not recommend how many plants you can grow.  I have testified for 2 patients on separate occasions and in both trials the doctors “plant exemption” was thrown out. I encourage you to discuss this with some of the most respected attorneys in the industry and they will tell you the same thing.  There is no recommended dose for patients because it is not an FDA approved medication.  There are also no clinical trials that state that for a given condition a specific dose is needed.

The reason this myth was started because is the price of recommendations plummeted by doctors doing recommendations over skype and existing clinics needed additional streams of revenue to stay in business.

PLEASE speak with an attorney prior to growing the limit set by SB 420 which is 12 plants (6 mature at any given time) and 8 ounces of marijuana.

MYTH #2. If you admit to using marijuana on your patient history form you can be prosecuted.

I have seen clinics advertise that the don’t have “self incriminating” medical forms.  They claim that if you admit to using marijuana recreationally in the past that you can “go to jail.”    Nothing can be further from the truth.   If that were the case then Charlie Sheen would have been prosecuted for admitting to using cocaine.   Or Bill Clinton would have been prosecuted for possession of marijuana saying he tried it but did not inhale.

There is ZERO chance that you will be prosecuted for telling your doctor that you have experience using marijuana in the past.  I encourage you to be honest so that the doctor can give you the best advice possible.

This is a very WEAK marketing tactic to scare patients into using their clinic.

MYTH #3.  If you are a primary giver for 10 patients you can legally grow 12 plants for each patient.

This myth was started by attorneys who did not understand the law and patients who bought into it.   You can be a primary giver for another patient if you are actually caring for them.  Meaning you are housing, feeding or taking care of their day to day needs.  For example, a cancer patient would designate her husband as her primary caregiver so that he can get her medicine for her because she is too sick to get out of bed.   You are NOT a primary caregiver just because you want to grow their plants.   If you want to “collectively grow” then you have to form a collective.   I have had one patient bring in 10 different people stating that he was their primary caregiver because he had a grow of 120 plants.   Legally he is screwed if he gets caught.

If you want to grow for a bunch of people make sure you get the advice of a competent attorney before you make a decision that could cost you tens of thousands of dollars and/or your freedom.

MYTH #4:  If you come to our clinic you will be protected through our “Attorney Protection Programs”

What these clinics tell patients is they offer is a free legal advice through their “legal team”.   In reality what they do is call an attorney and say “I know you offer patients a free consultation regardless, but can we use your name and call it an attorney protection program? ”   The attorney of course agrees because it is free business.

Understand that attorneys offer a free one hour consultation always.  If they hear your case and think they can help they then typically charge a $2000 retainer to represent you.

In my experience working with attorneys who represent patients, very few doctors actually show up in court as they say they do.  I was speaking to one physician from a large clinic offering an “attorney protection plan” who flat out refused to go to court.

This is “value added service” that is nothing more than a gimmick.

MYTH #4.  A doctor doing recommendations over skype is completely legal because of  ”telemedicine” laws.

Yes doctors use telemedicine in their regular practices to see patients.   For example, a regular patient of a family doctor may use telemedicine to look at a rash and let they patient know whether or not to come in to his office.

However, when it comes to recommending or prescribing a controlled substance (which is what the California medical board looks at cannabis), doctors must not only review patients medical histories but also perform a physical exam.  This is good medicine and is what is required by the law.    Doctors are using the “telemedicine” law to justify spending 30 seconds with a patient over the computer and having the office staff rubber stamp their signatures.

MYTH #5.  You can get a recommendation from a doctor without being previously diagnosed for your condition.

In an attempt to capture as much of the market share as possible, some doctors tell patients that if they have not been previously diagnosed to come in and receive a temporary recommendation until they get diagnosed.    And in the meantime they can have access to medical marijuana.

The California medical board was very clear when it set the standards for a physician to recommend the use of medical marijuana.  In a nutshell, a patient must have been seen and diagnosed for their condition PRIOR to receiving a medical marijuana recommendation.   A doctor who recommends cannabis by law is supposed to review a patients medical record and make sure that the diagnosis has been properly worked up and treated appropriately.

What this is intended to prevent is a patient walking into the medical marijuana clinic saying “I have bad headaches” and the doctor saying “OK, here is your recommendation for headaches. Come back in 6 months after you have seen a specialist to evaluate them.”  3 months go by and the tumor causing that patients headaches gets twice the size and metastasizes to another organ.   What the doctor is supposed to do is make sure he knows what is causing the patients headaches FIRST, so that mistakes like this do not happen.

I hope patients head this advice:  JUST BECAUSE A BUNCH OF PEOPLE ARE DOING SOMETHING A CERTAIN WAY DOES NOT MEAN THAT IT IS LEGAL.   I had a patient yesterday that was convinced she needed a cultivators license and be the primary caregiver for 10 patients because she wanted to legally grow 99 plants.    She was adamant because her friend was doing just that and making money doing it.    She got frustrated because I wouldn’t sell her a $250 cultivators license.

The truth is the truth and ignorant people that simply follow the herd without checking their facts with an attorney will continue to be arrested.   Do your due diligence. Be smart.   Don’t be greedy. And be blessed!

Step 1: Determine if you have a qualifying diagnosis
Most patients think medical marijuana can only be recommended for dying patients or those with severe disabilities. In California, that is not the case. The most common reasons patients receive a medical marijuana card are:

a. Chronic Pain: any condition where chronic pain is a component can qualify. For example, back pain, joint pain, post-operative pain etc.

b. Muscle spasms: can be for many reasons but things like Multiple Sclerosis, Restless Legs Syndrome

c. Nausea and Poor Appetite

d. Insomnia and Anxiety

e. Mood disorders such as depression.

f. Inflammatory bowel disease including Irritable Bowel Syndrome: Crohns Disease and Ulcerative Colitis

***There are over 250 indications that we can recommend cannabis for. You can simply call our office and find out if your diagnosis will qualify. 877-721-0047

Step 2: Gather your medical documentation.
When you see a doctor for medical marijuana he will need to review your medical records and verify your diagnosis. You can simply contact your treating doctors office and ask that they release your medical records to you. They simply have you fill out a form.

Step 3: Locate a doctor that is specialized in recommending medical marijuana
Dr. Breen has extensive knowledge about the medicinal benefits of using marijuana and will be able to answer any questions you may have. Visit our website at www.MCSoCal.com and see our office locations in Irvine, CA and Long Beach, CA

Step 4: Simply bring in your documentation.
At your appointment Dr. Breen will review you medical records, go over all the benefits and risk of using medical marijuana, perform a physical exam and then determine if it is an appropriate treatment approach.

Step 5: Purchasing your Medicine at a Medical Marijuana Dispensary
Doctors are not allowed to provide you with the medical marijuana so you have to go to a local medical marijuana dispensary. You will need to bring your written recommendation signed by Dr. Breen They will make a copy of it and verify your eligibility by using our 24 hour online verification system. You can then purchase up to 8 ounces of medical marijuana.

The process is as simple as that. Dr. Breen and the staff of MCSoCal will make sure that all your questions are answered before your leave our office. We realize that for many patients this is a very new experience and can be nerve racking. We want to assure you that your doctors visit will be very professional and compassionate.

Thanks for visiting our site and reading our blog.

MCSoCal Staff

With that said, here are my TOP 10 REASONS FOR NOT OPENING A MEDICAL MARIJUANA DISPENSARY.

1. Legality and Your Freedom: Yes it is “legal” in California to run a non-profit collective but it is still illegal Federally. If arrested and tried in Federal Court you will not even be allowed to argue that what you were doing is legal in the state of California. This IS still happening and is only getting worse. If you follow the news the Attorney General is threatening states with letters directly to the State Attorneys.

2. City Code and Ordinances: One day you have full approval from the city to operate your business and one day a new ordinance or ban is passed and you are shut down. If you don’t think this happens just look at San Diego, Anaheim, Dana Point and probably Costa Mesa coming soon. On top of that the city can start fining you daily until you leave. In Costa Mesa some collectives are being fined $1000/week and in Long Beach the fines were hitting $2500.00 per day!

3. Not for Profit:   Per the attorney general guidelines you are not allowed to run a FOR-PROFIT business.   Yes you can pay yourself a reasonable wage and many owners try to set up “management companies” and pay them “consulting fees” but this is not fooling the IRS.   In recent raids law enforcement is involving the IRS and this is where they are really getting owners.  It is all looked at as profit and it is NOT ALLOWED.

4.  Write-Offs, NOT:   Di you know that because marijuana is illegal federally you are NOT allowed to write off the cost of your medicine or other ordinary business expenses.  So if you gross $100,000 and have $65,000 in the cost of the medicine, you will be taxed on $100,000 instead of the $35,000 in any other legal business.   The bottom line is that you will get crushed if you do it correctly by the letter of the law.

5. Your Competition:  Let’s forget about for one second the fact that in Santa Ana there are 65 medical marijuana dispensaries in a one mile stretch.  Running a legit business with this much competition would be difficult by itself.   HOWEVER, have you considered the fact that it is NOT a level playing field.    Let’s assume you are a legit business man, will pay your employees on the books, will pay your state sales tax and declare all your income because you FEAR THE IRS (which you should).  With all that overhead you will have to charge $50 per 1/8th ounce just to make ANY money.   Then all of a sudden you realize your competitors are charging $35 and $40 per 1/8th ounce for the same EXACT strain.   You will be left scratching you head wondering how they are making any money.    Here is the reason: they are NOT paying taxes, they hire employees as “volunteers” and are taking cash and not declaring it to the IRS.   If you don’t think this is going on just take a day and visit 30 different dispensaries in Santa Ana.   Some advertise “the dirty 30!” (thirty strains capped at $30/1/8th ounce)  Until their is legitimate regulation you will always have this problem.  This will force you to do one of two things: a) Shut down or b) Evade taxes, hire “volunteers” and skip all the rules.  Either way it is a shit sandwich.

6.  Your safety:  you WILL have to look over your shoulder and watch your back.   Is it as dangerous as they say it is?  NO, however you are still dealing with a lot of people who do not have the same morals and ethics as you may have.    If you have a wife and kids why wold you ever do anything to jeopardize their safety.

7.  Legal Fund:  At some point you can expect to be harassed or even arrested.  With that, I have spoken to three dispensary owners who were forced to plead guilty to a lesser charge because they did not have the money set aside to defend themselves in court.     Would they have been acquitted had it gone to trial?  Most likely.   However they did not have $75,000 sitting around trying to defend themselves.

8. Proposition 19:  Had proposition 19 passed back in November the landscape of medical marijuana would have changed.  I experienced it directly in my business.   2 months prior to the vote our business dropped off 60%.  Why would a patient pay me $99 for something that they might not need in 2 months.  On top of that, it would have been legal for anyone to grow their own medicine.  Bye bye dispensary!   Friends would have been supplying friends, corporation would have made a major play in the industry and you would be the “mom and pop” video store trying to compete with blockbuster back in 1995.   There is legislation being considered for the 2012 ballot in california.  This could end your business overnight.

I can’t think of 9 and 10 however in conclusion:   WHY WOULD YOU SPEND OVER  A $100,000 TO START A BUSINESS (CONSERVATIVE NUMBERS) AND RISK YOUR FREEDOM  AND SAFETY TO START A BUSINESS THAT CAN BE SHUT DOWN IN AN INSTANT WITH ONE PIECE OF LEGISLATION OR CITY ORDINANCE.   ON TOP OF THAT THIS BUSINESS IS NOT LEGALLY ALLOWED TO MAKE A PROFIT!!!!!!  YOU WILL SPEND ENDLESS HOURS AND MONEY ONLY TO REALIZE THAT THE MONEY IS NOT THAT GREAT, THE INDUSTRY IS SLEAZY AND THE PLAYING FIELD IS NOT LEVEL.   LASTLY, YOU WILL SPEND MORE TIME WITH AN ATTORNEY THAN YOU WOULD NORMALLY HAVE IF YOU LIVED 5 LIFETIMES.

If you think this post is BS, simply talk to the numerous dispensary owners who are SELLING their dispensaries because they see the writing on the wall.   I personally know 3 who are getting out and running for the hills.   Amazingly they found buyers who have no idea what they are getting themselves into.

One of the provisions that they are incorporating is that a dispensary will be charged an annual fee based on how many patients they see throughout the year (or how many members their dispensary has total).   Dispensaries are supposed to have a point of sale software system that tracks every time someone comes in and purchases medicine.

Cities are also charging a special tax on top of state and federal taxes based on the gross volume of sales.

These may be reasonable right??   However the issue is this.    This particular dispensary owner is 150% above board and complying with all of the cities zoning and financial codes.   He tracks every patient that comes in, charges them sales tax for their medication, pays all his employees on the books and has all his corporate paperwork in order.

The problem is that MOST of his competitors are not compliant.  They are paying employees off the books, are not using a point of sale system to track sales, are not paying their fare share of taxes since they is no record of a sale and are therefore paying significantly less money to the local and state governments.

As a result of this, the dispensary owner that is doing everything RIGHT, has to charge more for the medicine he is providing his patients.   The non-compliant dispensaries are putting caps on the prices of their medicine and charging ridiculously low prices.  This is forcing compliant owners out of business.

At the end of the day patients want to pay as little s possible for medication.  That is completely reasonable.  But what they do not understand is that by supporting shops that are not above board in their business practices they are going to deregulate the entire industry.

What needs to happen is that cities need to level the playing field.   They need to shut down the dispensaries that are not tracking sales or paying their correct annual fees.  They need to audit their books to make sure employees are being paid on the books.    And if they find dispensaries not in compliance they need to be able to fine them until they either have to close or get shut down.   Dispensary owners that cheat their taxes should be subject to IRS audits and be prosecuted criminally.

There is no way for patients to figure out who is being compliant.  This is the job of the city.    When this particular dispensary owner told me about his discussion with the city on this very topic the response he got was this (paraphrased). “We just do not have the manpower to shut down these clinics like we need to.  As a result it is taking us forever to level the playing field for you.”

This problem is just one more step that needs to be fixed in order to legitimize the industry.

I emphatically say NO.   READ ON…

As it stands today the attorney general guidelines state that medical marijuana dispensaries have to operate not-for-profit.  This means that they can only take a reasonable salary to reimburse themselves for their work.   This set up is similar to Churches.

I say that if you want to impose additional taxes on dispensaries then allow them to operate for profit.    Every other drug and drug company is sold for profit.  If you are going to say that medical marijuana is medicine for patients than treated it as such.   CVS and Savon are allowed to operate for profit.  Merck and Eli Lilly operate for profit.  Pharmacists work for profit as do the physicians.   So why aren’t we allowing dispensary owners to operate for profit.  It does not make sense.

I think the cities need to understand that any tax on the dispensaries gets passed to the patient.   The price they pay for medicine will go up.   So it is the patients that will be eating this one big time.   Secondly, dispensaries are making the huge margins that everyone thinks they are.   Because of the proliferation of dispensaries and the cost and risk it takes to grow it the wholesale prices are still very high.

Why is it so expensive to grow?  Simply because it is still illegal federally.  Anyone that is growing for a collective is taking the risk of being prosecuted federally.    And because there is that risk not everyone is willing to do it.   The growers that are providing medicine to dispensaries can therefore still charge a premium.

I think what this is coming down to is that the cities do not want dispensaries at all in their neighborhoods.    But I think they are looking at them from the wrong angle.  They see them as recreational depots for pot heads.   They are not seeing them for what they are which is a place for patients to pick up medication.  I have blogged extensively in the past on how dispensaries are shooting themselves in the foot by catering to the recreational user.   Many do not even give the slightest impression that they are there to help patients.  That being said you should not penalize the legitimate ones because of the lack of self regulation by a few.

2 things need to happen for this to become VERY legitimate.

1. Allow them to operate for profit so legitimate corporations can run them.

2. Provide protection under state law so that they do not have to worry about federal prosecution.   Only then will legitimate businesses come out of the woods to invest in grow operations and storefronts.

In the words of Bill O’Reilly; “what say you?”

It’s a great question because you must be very careful when choosing to work with any specific collective to purchase your medicine.   Most of them are not operating according to state law.  They simply set up shop and hope to make as much money as possible before they get shut down or caught.   They do not have the proper corporate structure, legal documents, sales licenses and accounting practices.  I can not stress the next statement enough.

YOU DO NOT WANT TO EVER PURCHASE MEDICINE FROM DISPENSARIES NOT IN COMPLIANCE WITH STATE LAW!

The question becomes how do you find a collective that can provide you with the best quality medicine and is in full compliance with State law.  They are out there but unfortunately are in the minority.   Here are some things that they MUST do if they are in compliance with State law.  If you go into one and they do not follow the following procedures simply leave and look for another one.

1. They must have articles and by-laws available for you to read and offer you the opportunity to do so.  If they don’t then they are not complying with state law.

2. They must have you sign an executing agreement.

3. They must have you sign a release to verify with your doctor that you are a patient.

4. You must sign any documentation regarding the rules of the collective.

5. They should have you sign a release of liability.

6. They must verify your recommendation with your doctor and ask to see your ID. The legitimate ones have access to the internet to do so.  If they don’t simply do not use them as they most likely have not followed proper procedures.

7.They should be professional, the location should be safe and they should be VERY knowledgeable about the types of medicine.  They should sit down and spend time with each of you and answer all of your questions.

If they follow these procedures then chances are that the have had proper legal counsel and operating per California law.

Lastly, the quality of the medicine should be excellent.  Many places offer 30 varieties but 28 of them are not effective.   The best dispensaries only need four quality strains.  1 Indica, 1 Sativa, 1 Hybrid-indica, 1 Hybrid-Sativa

A note regarding edibles (brownies/cookies/lollipops/honey/teas etc):

Unless you plan on making your own edibles for ingestion I DO NOT recommend that you purchase edibles from dispensaries.   The reason is that there is NO quality control.  When tested they have found to contain Salmonella, E-Coli, Aspergillus (fungus) and FECAL MATERIAL. The “cooks” are not being monitored by the department of health.   Many times edibles sit without being properly refrigerated.  I have seen edibles that are covered with mold. Lastly they vary in quality and it is very difficult to predict to strength until it is too late.

For more information on determining whether cannabis is an appropriate medication for your condition please visit our website at www.MCSoCal.com and pre-qualify for free online.