mmpr growers frequently asked questions

22
To Green House/Warehouse Growers: (Sensitive, Private & Confidential) Action Plan after hours of research to apply for MMPR Producers License: 822476 Ontario Inc. P.O. BOX 1500 Woodbine Avenue, Toronto, Ontario, M4C 4G9 Canada www.CanadaMedicalCannabisGrowersCoop.ca Cell 1-647-999-9993 bus: 1-416-519-0266 HST 106580798 RT0001 [email protected] Health & Welfare Documents: http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/index-eng.php and http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/add-supp-eng.php Checklist Action Plan: Attention 15 page application has been updated & is attached partially filled in: 1. Download and print all above web documents which I usually have attached previously. 2. 15 page application is filled in partially to help you get approved and help give your location privacy on MMPR Producers web site with our Growers Coop / Marketing above contact info. 3. ExperChem Lab’s Terry Pilkey, B.SC., DPCT (Hon.), C.Chem Regulatory Affairs Director will act as your Qualified Person in Charge with degrees & worked for Health & Welfare. When you forward attached quote signed with $5000.00 retainer who then will send by e-mail Standard Operating Proceedures SOP questionnaire; that will help them fill in SOP for your application. ExperChem Labs will be your Health & Welfare contact (no need to hire other consultants, lawyers etc…) They save you money hiring a Qualified Person In Charge. They will bill you monthly for more work which is booking onsite advice and training to your usually a family member that will not leave company while inspecting property with advice on security, sanitation, & qrowing techniques etc..which are listed in above downloadable docs links. 4. Submit copies of 3 letters with below suggested letter to Mayor, Police and Fire Chiefs showing modified GreenHouse / Warehouse drawings incorporating all security, infrastructure, barbed wire fences, shipping/vault/storage/curing room. Canada Flowers vendors list: Gerry Harrison http://www.ggs-greenhouse.com/ 905-562-7341 & Growers Requisites 1915 Setterington Dr. Kingsville Toll Free: 1-800-819-8776 [email protected] www.greenhousepoly.ca Jeremy. 5. Fill in 7 page Security background check for all persons that will be any rooms: SECURITY CLEARANCE APPLICATION FORM MARIHUANA FOR MEDICAL PURPOSES REGULATIONS and take it in with 3 rd party fingerprint form to accredited Digital Fingerprinting (see below) 6. Please understand you are replacing over 15,000 MMAR growers supplying over 30,000 registered patients by March 31 st , 2014. Your job is grow another flower which you do now but get your applications, fingerprints, and hiring a Qualified Person in Charge such as ExperChem Labs in ASAP. Then you have to immediately hire contractors to make your required changes since with all above done properly with over 100 applications that they are looking for all items properly filled in and submitted or will return package to resubmit. The pre inspection call can happen at any time and if still not ready you can give them an extended date. ACTION WINS. This is a daunting project however revenue projections below will hopefully overcome fear of ACTION. The http://www.flowerscanadagrowers.com/flower-growers/directory has banking,

Upload: shawn-tedder

Post on 07-Nov-2014

1.805 views

Category:

Technology


0 download

DESCRIPTION

 

TRANSCRIPT

Page 1: MMPR Growers frequently asked questions

To Green House/Warehouse Growers: (Sensitive, Private & Confidential)

Action Plan after hours of research to apply for MMPR Producers License:

822476 Ontario Inc. P.O. BOX 1500 Woodbine Avenue, Toronto, Ontario, M4C 4G9 Canada

www.CanadaMedicalCannabisGrowersCoop.ca Cell 1-647-999-9993 bus: 1-416-519-0266

HST 106580798 RT0001 [email protected]

Health & Welfare Documents: http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/index-eng.php and

http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/add-supp-eng.php

Checklist Action Plan: Attention 15 page application has been updated & is attached partially filled in:

1. Download and print all above web documents which I usually have attached previously.

2. 15 page application is filled in partially to help you get approved and help give your location

privacy on MMPR Producers web site with our Growers Coop / Marketing above contact info.

3. ExperChem Lab’s Terry Pilkey, B.SC., DPCT (Hon.), C.Chem Regulatory Affairs Director will act as

your Qualified Person in Charge with degrees & worked for Health & Welfare. When you

forward attached quote signed with $5000.00 retainer who then will send by e-mail Standard

Operating Proceedures SOP questionnaire; that will help them fill in SOP for your application.

ExperChem Labs will be your Health & Welfare contact (no need to hire other consultants,

lawyers etc…) They save you money hiring a Qualified Person In Charge. They will bill you

monthly for more work which is booking onsite advice and training to your usually a family

member that will not leave company while inspecting property with advice on security,

sanitation, & qrowing techniques etc..which are listed in above downloadable docs links.

4. Submit copies of 3 letters with below suggested letter to Mayor, Police and Fire Chiefs showing

modified GreenHouse / Warehouse drawings incorporating all security, infrastructure, barbed

wire fences, shipping/vault/storage/curing room. Canada Flowers vendors list: Gerry Harrison

http://www.ggs-greenhouse.com/ 905-562-7341 & Growers Requisites 1915 Setterington Dr.

Kingsville Toll Free: 1-800-819-8776 [email protected] www.greenhousepoly.ca Jeremy.

5. Fill in 7 page Security background check for all persons that will be any rooms: SECURITY

CLEARANCE APPLICATION FORM MARIHUANA FOR MEDICAL PURPOSES REGULATIONS and

take it in with 3rd party fingerprint form to accredited Digital Fingerprinting (see below)

6. Please understand you are replacing over 15,000 MMAR growers supplying over 30,000

registered patients by March 31st, 2014. Your job is grow another flower which you do now but

get your applications, fingerprints, and hiring a Qualified Person in Charge such as ExperChem

Labs in ASAP. Then you have to immediately hire contractors to make your required changes

since with all above done properly with over 100 applications that they are looking for all items

properly filled in and submitted or will return package to resubmit. The pre inspection call can

happen at any time and if still not ready you can give them an extended date. ACTION WINS.

This is a daunting project however revenue projections below will hopefully overcome fear of

ACTION. The http://www.flowerscanadagrowers.com/flower-growers/directory has banking,

Page 2: MMPR Growers frequently asked questions

vendors, and suppliers lists that will support ACTION. Download hundreds of pages E-Books

strains & growing techniques: http://www.howtogrowweed420.com/1036.html see local

bedding green house www.mmar.ca . You can add clay stones to absorb extra water with

aeration pipes and if new cement floors put heated water radiant heating keep bedding warm

with less labour re-potting & also allow up to 4x4 allows to lay plant down producing 25%++.

7. The http://www.howtogrowweed420.com/1036.html how to start from seed or cuttings which

if you know any legal MMAR grower who if not getting new MMPR license thus will want to

move production to you to help their patients out which when you are approved will give you

the documents to do this. So the key is ACTION before MARCH 31st 2014 before they have to

destroy all product. Also you can trade within Coop to have multiple strains available.

8. The BioTrack THC Growers software demo http://stme.in/xr2UNM64l We are getting Coop

pricing saving a couple hundred per month linking up all Coop growers so I can see who has

inventory when patients are approved to buy www.CanadaMedicalCannabisGrowersCoop.ca

Megan Greene • [email protected] BioTrackTHC 1173 S. Huron St. Denver, CO

80223 http://www.BioTrackTHC.com • Phone: (720) 398-6421 • Fax: (720) 274-5671

9. When we are listed on Health & Welfare’s approved Producer’s website: Patients will send to

P.O. Box original medical form with up to 150 grams per month allowed; signed by Doctor or

Nurse Practioner which I will verify and forward on to grower that patient picks strain in stock,

place future and in stock orders for certain strains, packing slip and barcoded labels on child

proof up to 30 gram containers is there legal right to possess in Canada. The E-commerce

platform and above BioTrack THC software will track how many grams each grower sold so I

can pay at end of month planned $6. & $2-4 Sweet Leaf per gram (see below revenue formula)

Normal merchant accounts can be cancelled if selling retail. I have high risk merchant account.

Please forward to me the 15 page digital application attached using 30 day free Adobe Acrobat

http://www.adobe.com/cfusion/tdrc/index.cfm?product=acrobat_pro&loc=us&promoid=KHXXW

which I can review then see #3 instructions to send to ExperChem Laboratories Inc. 1111 Flint

Road, Unit 36 Downsview, ON M3J 3C7 with $5000.00 retainer to get her signature & answer

their SOP questionnaire who then submit your SOP & completed applications (see above links

and my attachments) to become a Licensed Producer under the Marihuana for Medical

Purposes Regulations, including all applicable attachments by registered mail to:

Controlled Drugs Section, Licences and Permits Division, Office of Controlled Substances

Controlled Substances and Tobacco Directorate, Health Canada

150 Tunney’s Pasture Driveway, Tunney’s Pasture, A.L.: 0300B

Ottawa, ON K1A 0K9

All relevant sections of the application form must be completed and all required documents

must be submitted. An incomplete application will not be processed. If your application is

incomplete, it may be returned to you.

Page 3: MMPR Growers frequently asked questions

Congratulations you survived the fun instructions however please feel

free to pass on to associates; to help fellow growers grow the

business (no pun intended)at up to $6. Per gram. I am helping other

grower’s fill in below and attachments application’s for FREE

(ExperChem Labs will do just app for $2000.+ $150 per hour) with all

supporting docs at these link’s and attachment’s if they wish to join

www.CanadaMedicalCannabisGrowersCoop.ca ready to take future orders

when first grower approved. For $2 per gram I will offer to be the

Coop’s marketing board to provide e-commerce due to major Canadian

Banks merchant accounts and online banks credit cards do not wish to

handle what they rate high risk transactions. I will aim be only

contact on your behalf on MMPR’s Health & Welfare’s site when you are

approved after doing below security upgrades and attached above paper

work. I suggest highly print all documents I attached from above

links and read security requirements implementing upgrades since

every grower will be approved with no volume restrictions if you

follow all guidelines and laws. I also with my associates will search

for Doctors/Nurses to provide patients original medical form which

will be mailed to our P.O. Box to enroll in our service. Patients

will have to pay us what the going market rate will sustain which

Health & Welfare has suggested at $8. per gram (see below $1.344

million is what each 2,000 square feet could produce) with creative

programs of selling sweet leaves for $2-4 per gram what market will

buy which help’s patients create medicine by vaporizing, teas, oils,

edibles etc. to help their pain and curing of many diseases that are

now wide open to Doctor’s permission to help. Information for Health

Care Professionals Cannabis (marihuana, marijuana) and the

cannabinoids; 158 page PDF from Health & Welfare

http://www.hc-sc.gc.ca/dhp-mps/marihuana/med/infoprof-eng.php

Health & Welfare Documents:

http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/index-eng.php and

http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/add-supp-eng.php

Health and Welfare’s MMPR application attached to grow Medical Cannabis

shipped direct to patients from your greenhouse shipping area modified to

store narcotics you have to refer to 54 page Health and Welfare to see

what Security Level you would be at if more or less 50km from major city

listed. How much Medical Cannabis you will store in Vaults they describe:

http://www.hc-sc.gc.ca/hc-ps/alt_formats/hecs-

sesc/pdf/pubs/precurs/dealers-distrib/phys_securit_directive/psreqs-

eng.pdf

Of course many infrastructure upgrades will be needed; however to give

you incentive to consider this project; the gross revenue on 4,000 square

feet would be approximate $2.688 million if below formula happens.

Page 4: MMPR Growers frequently asked questions

Greenhouse 2000 square feet: Take your square feet you are starting with

average width of plant up to 4x4 square feet 2000/16 square feet = 125

plants x 16 oz. = 2000 Oz’s / (35.27ozs= 1kg) every 12 weeks depending on

strain, light, cleanup, harvesting, drying, curing etc..) x 4 crops a

year =8000oz x 28 (equals oz.) = 224,000 grams x $6.00= $1,344,000

growers gross revenue. The loose leaves/shake could be sold @ $4.00 per g

Of course this gross revenue will be less with lower producing strains.

Videos growing techniques: Dr.Sanjay CNN Weed, Colorado, Canada Weed Wars

https://www.youtube.com/watch?v=Z3IMfIQ_K6U

https://www.youtube.com/watch?v=GhTYI3DeNgA&feature=player_detailpage

https://www.youtube.com/watch?v=1rEbBB-Hfoc

http://www.truliteled.com/video-tutorial-on-curing-cannabis/

With a reported value of over six billion dollars, it's no secret that

marijuana in British Columbia is big business. However, due to the recent

legalization of recreational and Medical Cannabis in Washington and

Colorado, (total 21 states) the draconian crime laws pushed forward by

the Canadian Conservative government's omnibus crime bill, and recent

changes to medical marijuana regulations, the entire industry is suddenly

facing an identity crisis.

Below template up to xxxxx’s could be used to notify while not asking

permission to Police Chief, Mayor’s Office, and Fire Chief putting in

contact info in attached 15 page application & submit drawings to ALL:

“I have submitted a MMPR application to become licensed producer, which

under the requirements it’s asked me to put your contact info that I

notified you of my intentions to comply under new Marihuana for Medical

Purposes Regulations, including, but not limited to: obtaining the proper

personal security clearances; meeting the physical security requirements

for the cultivation and storage areas. For further information:

http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/index-eng.php

[email protected] or call us at 1-866-337-7705.

8.1 A licensed dealer is authorized to have a narcotic in their

possession for the purpose of exporting the narcotic from Canada if they

have obtained the narcotic in accordance with these Regulations or the

Marihuana for Medical Purposes Regulations. SOR/97-514, s. 1; SOR/2013-

119, s. 204. Previous Version 8.2 To be eligible for a dealer’s licence,

a person must be

(a) an individual who ordinarily resides in Canada;

(b) A corporation that has its head office in Canada or operates a branch

office in Canada; or

(c) the holder of a position that includes responsibility for narcotics

on behalf of a department of the Government of Canada or of a government

of a province, a police force, a hospital or a university in Canada.

Page 5: MMPR Growers frequently asked questions

SOR/2004-237, s. 4.

8.3 (1) A licensed dealer

(a) shall designate one qualified person in charge, who may be the

licensed dealer if the licensed dealer is an individual, who must work at

the premises specified in the licence, have responsibility for

supervising activities with respect to narcotics specified in the licence

and for ensuring, on behalf of the licensed dealer, that those activities

comply with these Regulations and the Marihuana for Medical Purposes

Regulations; and

(b) May designate an alternate qualified person in charge who must work

at the premises specified in the licence and have authority to replace

the qualified person in charge when that person is absent.

(2) The qualified person in charge and, if applicable, the alternate

qualified person in charge

(a) shall be familiar with the provisions of the Act and the regulations

under it that apply to the licence of the licensed dealer who designated

them and have knowledge of chemistry and pharmacology and experience in

those fields to properly carry out their duties;

(b) shall either

(i) Be a pharmacist or a practitioner of medicine, dentistry or

veterinary medicine, registered with a provincial professional licensing

authority, or

(ii) possess a degree in an applicable science — such as pharmacy,

medicine, dentistry, veterinary medicine, pharmacology, organic chemistry

or chemical engineering — that is awarded by a Canadian university or, if

awarded by a foreign university, that is recognized by a Canadian

university or a Canadian professional association; and

(c) Shall not have been convicted, as an adult, within the preceding 10

years, of (i) a designated drug offence, (ii) a designated criminal

offence, or (iii) an offence committed outside Canada that, if committed

in Canada, would have constituted an offence referred to in subparagraph

(i) or(ii).

Attached is the Quote for analytical testing from 3 narcotic labs.

As you know, Division 4 of the MMPR deals with Good Production Practices

which consist primarily of Quality Assurance activities. These activities

include; testing for Microbial and Chemical Contaminants, Pest Control

Products and Analytical testing for the percentages of delta-9-

tetrahydrocannabinol, cannabidiol and cannabinol (THC, CBD, CBN). A copy

of Division 4 of the MMPR is attached “Division 4-MMPR”.

Furthermore, in the Marihuana for Medical Purposes Regulations (MMPR),

each batch or lot of dried marihuana must be approved for release by the

LP’s Quality Assurance person, who must have the training, experience and

technical knowledge relating to the activity conducted and the

requirements of Division 4 of the MMPR. ExperChem can perform this

function on your behalf however we can act as a Quality Assurance Person

on your behalf. See attached quote A Quality Assurance person would; Terry Pilkey, B.SC., DPCT (Hon.), C.Chem Regulatory Affairs Director

Help you with our QA/QC protocols for compliance with Division 4. (please

see attached)Have the technical knowledge to be able to assess analytical

testing results in order to be able to make the determination of whether

Page 6: MMPR Growers frequently asked questions

the dried marijuana is suitable for sale. Help investigate quality-

related complaints (analytical testing) and help take corrective and

preventive actions, if necessary. If you have any questions, please feel

free to call me.

Lisa Plante & Sohil Mana 416-665-2134 Ext. 298

416-665-9251

[email protected]

QA Director

ExperChem Laboratories Inc.

1111 Flint Road, Unit 36

Downsview, ON M3J 3C7

1-866-610-5576

www.experchemlab.com

Guidance: Signage and Physical Barriers

If your site is a stand-alone building, or a space within a building that

shares walls, then physical barriers and signage posted at the perimeter

and entrance to your building/space can assist in ensuring that your site

is secure. The main purpose is to prevent unauthorized access and to act

as a definite demarcation. Physical barriers are required for securing

all areas within a site where cannabis is present. Physical barriers

should provide sufficient resistance to impede unauthorized access to the

premises where cannabis is present. For example, a physical barrier of

some kind (e.g. a fence surrounding the site) and a sign stating that it

is private property or a restricted area and that unauthorized access is

prohibited are appropriate. Guidance: Entrances, Doors and Frames

Minimizing the number of entranceways to the site and areas within a site

where cannabis is present will assist in securing and monitoring the

space; however, it should remain consistent with fire and building safety

codes. Securing all entrances to the building, site or areas within a

site where cannabis is present would prevent unauthorized access. For

example, entranceways to areas within a site where cannabis is present

could be equipped with commercial steel doors and frames. Doors may be

specified as fire rated where required. The doors could also be equipped

with the appropriate locking hardware, door closers, contact switches,

and electronic access control mechanisms (biometric fingerprint), to

assist in providing appropriate security against unauthorized access.

Keeping your entranceways closed and locked to the extent possible given

your business operations can assist in ensuring that your site and areas

within a site where cannabis is present are secure. Keeping doors and

entrances to the areas within your site where cannabis is present closed

at all times with an operational intrusion detection system on (alarm

system that operates at all times) would further prevent unauthorized

access. Guidance: Openings, Ducts and Mechanical/Electrical Pass-Throughs

Minimizing the number of openings, ducts and pass-Throughs in your site

and areas within your site where cannabis is present will assist in

preventing unauthorized access. Protecting all other openings with

security screens, steel bars or equivalent material, welded to steel

frames will assist in preventing unauthorized access to your site. The

screens and bars are most effective in preventing unauthorized access

including quick entry, grab and exit type intrusions. Where appropriate

to accommodate pipe or conduit movement or expansion, pipes and conduits

can be enclosed in a close-fitting sheet metal sleeve and fastened to a

Page 7: MMPR Growers frequently asked questions

frame to provide appropriate security. Guidance: Wall Construction the

walls of your site should be constructed to assist in ensuring that

unauthorized access to your site and areas within your site where

cannabis is present is prevented. For example, slab-to-slab construction

and steel mesh sheets attached to the underside of structural joists can

assist in ensuring wall security. Guidance: Glazing Panel Security

Appropriate use of glazing panels can assist in ensuring that

unauthorized access to your site is prevented. For example, any glazing

panels used in roofing (in a greenhouse for example) should be attached

directly to the roof structure in such a manner as to preventing removal

from the outside. Building security can be further ensured by using

appropriate electronic equipment to monitor glazing elements, including

sensors that can detect breakage of glazing panels. Mechanisms that can

provide secure monitoring of glazing elements include at least one of the

following: • Glass-break sensors of sufficient number may be

appropriately installed to provide 100% coverage of the glazing area. •

Electrically conductive foil or wire can be incorporated in the glazing

elements to provide detection of breaks.• Volumetric or beam-break

detection systems can be employed to provide 100% coverage of the

interior surface area of the glazing.5.2 Regulatory Provisions Relating

to Monitoring and Detection Perimeter of the Site MMPR s43. (1) The

perimeter of the licensed producer’s site must be visually monitored at

all times by visual recording devices to detect any attempted or actual

unauthorized access. MMPR s43. (2) The [visual recording] devices must,

in the conditions under which they are used, be capable of recording in a

visible manner any attempted or actual unauthorized access. MMPR s44. The

perimeter of the licenced producer’s site must be secured by an intrusion

detection system that operates at all times and that allows for the

detection of any attempted or actual unauthorized access to or movement

in the site or tampering with the system. MMPR s45.(1) The system must be

monitored at all times by personnel who must determine the appropriate

steps to be taken in response to the detection of any occurrence [of

attempted or actual unauthorized access]. MMPR s45.(2) If any such

occurrence is detected, the personnel must make a record of: the date,

time of the occurrence; and the measures taken in response to it and the

date and time when they were taken. Areas Within a Site Where Cannabis is

Present MMPR s48.(1) Those areas [within a site where cannabis is

present] must be visually monitored at all times by visual recording

devices to detect illicit conduct. MMPR s48.(2) The devices must, in the

conditions under which they are used, be capable of recording in a

visible manner illicit conduct. MMPR s51.(1) The intrusion detection

system must be monitored at all times by personnel who must determine the

appropriate steps to be taken in response to the detection of any

occurrence [of illicit conduct, any attempted or actual unauthorized

access to or movement in those areas or tampering with the system]. MMPR

s51.(2) If any such occurrence is detected, the personnel must make a

record of: the date, time of the occurrence; and the measures taken in

response to it and the date and time when they were taken. Guidance:

Video Coverage Visual monitoring of the perimeter of your site, as well

as the areas within your site where cannabis is present can be achieved

using closed circuit video equipment (CCVE). Appropriate lighting

equipment in conjunction with CCVE can assist in the detection,

classification, assessment, and recognition of the images recorded.

Camera should be in sufficient number and appropriately located to cover

Page 8: MMPR Growers frequently asked questions

the area to be monitored. Guidance: Redundancy and Back-Ups Keeping all

cameras recording 24/7, and having appropriate back-up mechanisms in

place can achieve the appropriate coverage to detect illegal activity,

unauthorized access and any attempts to breach the security of your site

and of the areas within your site where cannabis is present. Back-up

mechanisms must ensure that all visual recordings and records of a

detected occurrence be retained for two years. These back-up mechanisms

may include storing the visual recordings on multiple media devices. 5.3

Regulatory Provisions Relating to Access Control MMPR s42. The licensed

producer’s site must be designed in a manner that prevents unauthorized

access. MMPR s46. (1) Access to each area within a site where cannabis is

present must be restricted to persons whose presence in the area is

required by their work responsibilities. MMPRP s46.(2) The responsible

person in charge or, if applicable, the alternate responsible person in

charge must be physically present while other persons are in those areas.

MMPR s46.(3) A record must be made of the identity of every person

entering or exiting those areas. Guidance: Securing access to the site

perimeter and areas within a site where cannabis is present There is a

wide range of appropriate electronic access control systems, including

intrusion detection mechanisms and CCVE that may be employed to ensure

that access to the site, and areas within the site where cannabis is

present, is restricted to the appropriate personnel and that a record is

kept of each person entering or exiting those areas. The system that you

install must be capable of identifying each individual who enters or

leaves restricted areas to comply with regulatory requirements. A

personal identification number (PIN) credential system alone is not

sufficient for access control because PINs can be purposefully or

inadvertently disclosed. For example, a security system that requires a

PIN and an identification card, or biometrics and visual monitoring are

examples of ways to prevent both unauthorized access to those areas

within a site where cannabis is present, and keep track of the movements

of personnel that enter and leave those areas. Guidance: Security System

Control Mechanisms Steps should be taken to ensure the appropriate

control of codes, keys, combinations and other elements of your security

system. For example, to ensure appropriate security, only senior

personnel including the senior person in charge, the responsible person

in charge and any alternate responsible persons in charge should have

access to alarm codes, vault combinations and other security elements for

the site. Changing combinations and codes on a regular basis and when

there are any changes with any senior personnel will assist in ensuring

appropriate control of the security system. 5.4 Regulatory Provisions

Relating to Intrusion Detection Perimeter of the Site MMPR s44. The

perimeter of the licenced producer’s site must be secured by an intrusion

detection system that operates at all times and that allows for the

detection of any attempted or actual unauthorized access to or movement

in the site or tampering with the system. MMPR s45.(1) The system must be

monitored at all times by personnel who must determine the appropriate

steps to be taken in response to any occurrence of an attempted or actual

unauthorized access to or movement in the site or tampering with the

system. MMPR s45.(2) If any such occurrence is detected, the personnel

must make a record of: the date, time of the occurrence as well as all

measures taken in response to it and the date and time when they were

taken. Areas within a site where cannabis is present MMPR s49. Those

areas [within a site where cannabis is present] must be secured by an

Page 9: MMPR Growers frequently asked questions

intrusion detection system that operates at all times and that allows for

the detection of any attempted or actual unauthorized access to or

movement in those areas or tampering with the system. MMPR s51. The

intrusion detection system must be monitored at all times by personnel

who must determine the appropriate steps to be taken in response to the

detection of any occurrence [of illicit conduct, any attempted or actual

unauthorized access to or movement in those areas or tampering with the

system]. A robust intrusion detection system can assist in securing both

your site and areas within your site where cannabis is present. Guidance:

Monitoring your site’s perimeter and areas within your site where

cannabis is present via an intrusion detection system with personnel in a

central location will allow your personnel to detect any unauthorized

attempts to enter those areas; or to tamper with security equipment.

Appropriately trained personnel will assist in responding to any incident

involving detected unauthorized activity. When there are no responsible

personnel present, a link to a monitoring station will enable

notification to the appropriate personnel and law enforcement. A response

plan should be designed to ensure quick action when detection has

occurred. Guidance: Records of Detected Matters Keeping all cameras

recording 24/7, and having appropriate back-up mechanisms in place can

achieve the appropriate coverage to detect illegal activity, unauthorized

access and any attempts to breach the security of your site and areas

within your site where cannabis is present. Back-up mechanisms must

ensure that all visual recordings and records of a detected occurrence be

retained for two years. These back-up mechanisms may include storing the

visual recordings on multiple media devices. Guidance: Tampering the

effectiveness of any system is dependent on the signal reaching the

individuals responsible for the monitoring of the signal and the response

to its warning. Depending on how the signal is carried, tampering with

the line carrying the signal may result in the signal not reaching its

intended destination. An acceptable system should be able to identify,

record, and notify if the lines are tampered with or if an attempt has

been made. A response plan should be designed to ensure quick action when

tampering occurs. Guidance: Power Supply In order to comply with

regulations, your security system must include visual recording devices,

access control and an intrusion detection system which must operate on a

continuous basis. For example, supporting your security system and all

components (e.g., sensors, control units and communicators /enunciators,

volumetric sensors, glass-break detectors, beam-break sensors) with an

uninterruptible power supply sufficient for 24/7 continuous operation

would effectively maintain the integrity of your security system. 5.5

Regulatory Provision Relating to Air Filtration MMPR s50. Those areas

[within a site where cannabis is present] must be equipped with a system

that filters air to prevent the escape of odours and, if present, pollen.

Guidance: Air Filtration to assist in the prevention of the escape of

pollen, odours, and other particles, all exhaust air from your

cultivation area and other areas within your site where cannabis is

present can be filtered through appropriate air filtration systems. For

example, a high-efficiency particle air filter such as a H13 HEPA filter

can ensure appropriate ventilation and filtration of exhaust air.

Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Page 10: MMPR Growers frequently asked questions

Local buyers guide: http://leamingtongrower.com/buyers_guide

http://www.rcmp-grc.gc.ca/cr-cj/ps-sp-elect-eng.htm /www.policecheck.com

Fingerprinting Places across Canada. Toronto RCMP accredited finger

printing offices that usually do pardons/waivers as well; one would be

CSI 215 Spadina Suite 206 (5 doors north of McDonalds at Queen)

Wait times for a criminal record checks and VS checks vary depending on

many different factors such as: •The type of submission received: paper

fingerprint or electronic fingerprint •The number of applications

received at different times of the year •The amount of manual processing

related to the application

The approximate wait times for fingerprint submissions received by the

RCMP when there is no match to an RCMP fingerprint holding. Application

for Paper fingerprint submission Electronic fingerprint submission

Criminal record check Inked Fingerprints submitted by a police service or

accredited fingerprinting company 22 weeks vs. Digital VS check

Fingerprints submitted by a police service 4 weeks Fingerprints submitted

by an RCMP certified, accredited fingerprinting company.

You need and your security / construction company to be know & read

54 page Directive on Security attached and Health & Welfare Documents:

http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/index-eng.php and

http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/add-supp-eng.php

Most locations if within 50Km of cities listed and predict storage 50-

250k of product thus most in division 6 for lab/storage/shipping area

separate from Greenhouses surrounded by correct cement / rebar / mortar

walls / biometric steel doors: 12.1.1. The caged area is to be located at

least 1 metre (3') from an outside wall if located on a ground floor or

accessible from a roof. The Office considers a common wall shared with

another firm to be an outside wall; therefore, a 1 metre (3') free area

is required. The Office may consider equivalents to the 1 metre (3') free

area (see examples 4.1.5). 12.1.2. The caged area should preferably be

located in a locked room. 12.1.3. Sufficient electrical detection to

detect unauthorized movement within the caged area. 12.1.4. Cage door or

gate to be secured with an approved padlock (see Appendix "E") or its

equivalent. 12.2 Cage Construction 12.2.1 WALLS/CEILING a) The walls &

ceiling of a caged area will be constructed of 3.5 mm (10gauge) rolled

and flattened metal mesh which has 2.5 cm x 5 cm (1" x 2")diamond shaped

openings securely fastened together. If the existing floor and ceiling

are to be used then the walls are to extend from structural floor to

structural ceiling. The gate or door will provide force resistance

equivalent to that of the walls and ceiling and be equipped with

electrical door contacts. PADLOCKS: The following is a list of some of

the padlocks available which meet or exceed the Office's requirements.

SHACKLE MANUFACTURER MODEL DIAMETER CLEARANCE(mm) (mm)ABLOY 3071 11 25

AMERICAN 570 10 28(with dead locking)BEST 27B462 12 32(with security

sheath)MASTER 15 11 25MEDECO 50-600 10 25 PAPAIZ CR60 10 35 VIRO 304/60

MM 10 35

Page 11: MMPR Growers frequently asked questions

FAQ: Below is copy and pasted from Health and Welfare:

Frequently Asked Questions

For Clients

For Licensed Producers

For Health Care Professionals

For Police / Law Enforcement

For Municipalities

For Clients

How do I access marihuana during the transition period?

Until March 2014, individuals, who have the support of a health care

Practitioner, may access marihuana for medical purposes through either:

The Marihuana Medical Access Regulations (by applying to Health Canada);

or the new Marihuana for Medical Purposes Regulations (by registering

with a licensed producer once they become established).

Under the Marihuana Medical Access Regulations, you can apply to Health

Canada to access one of the three sources of supply: Health Canada

supply; Personal-Use Production Licence; or Designated-Person Production

Licence. For more information on how to apply for one of these sources of

supply, please visit the "How to Apply" web page.

Under the new Marihuana for Medical Purposes Regulations, once licensed

producers are established, you can have your health care practitioner

complete a medical document. You must submit the original medical

document directly to a licensed producer along with a completed

registration form from the licensed producer of your choice.

Please note that you may only have access to marihuana for medical

purposes under either the Marihuana Medical Access Regulations or the new

Marihuana for Medical Purposes Regulations, not both.

During the transition period, what is my proof of authority to possess?

Marihuana?

If you continue to access marihuana under the Marihuana Medical Access

Regulations, your Authorization to Possess (ATP) will remain your proof

of authority to possess until March 31, 2014. As of April 1, 2014, your

ATP can no longer be used as proof that you are authorized to possess

marihuana for medical purposes.

If you register with a licensed producer under the new Marihuana for

Medical Purposes Regulations (regardless of whether it is before or after

March 31, 2014) your proof of authority to possess will either be the

label on the packaging or a separate document accompanying the shipment

of dried marihuana from the licensed producer.

How do I find out how much a licensed producer is charging for marihuana?

You must contact the licensed producer directly for pricing information.

Once licensed producers are established, a list of licensed producers and

Page 12: MMPR Growers frequently asked questions

their contact information will be maintained on the licensed producers

web page.

I have a valid Personal-Use Production Licence or Designated-Person

Production Licence. Can I sell my plants to a licensed producer?

Yes. If you hold a valid licence to produce issued under the Marihuana

Medical Access Program, you may provide starting materials (plants, seeds

or clippings) to a licensed producer. To do so, you must submit an

application to Health Canada.

If you hold a Designated-Person Production Licence, the consent of the

authorized individual will be required. If you produce for more than one

person, you will need to submit this information for each person.

Once the application is received, Health Canada will verify the

information. If all of the information is valid, a notice will be sent to

the licence holder, the authorization holder(s) (if applicable) and the

licensed producer authorizing the transfer of materials.

All Personal-Use Production Licence or a Designated-Person Production

Licence expire no later than March 31, 2014, so this is the last day this

type of transfer may take place.

For Licensed Producers

Where can I obtain the application form to become a licensed producer?

The application along with guidance documents are available on the

Becoming a Licensed Producer web page.

What are the requirements to become a licensed producer?

To become a licensed producer, you must meet all requirements of the new

Marihuana for Medical Purposes Regulations, including, but not limited

to: obtaining the proper personal security clearances; meeting the

physical security requirements for the cultivation and storage areas;

And submitting a completed licensed producer application.

For further information, please refer to the Becoming a Licensed Producer

web page.

If you have any questions about these requirements or the application

process, you can send us your questions by email to [email protected]

or call us at 1-866-337-7705.

Once complete, your application must be submitted to the following

address:

Controlled Drugs Section

Licences and Permits Division

Office of Controlled Substances

Controlled Substances and Tobacco Directorate

Health Canada

Page 13: MMPR Growers frequently asked questions

Address Locator: 0300B

Ottawa, ON K1A 0K9

All relevant sections of the application form must be completed and all

required documents must be submitted. An incomplete application will not

be processed and may be returned to you.

Does Health Canada provide information on how to produce marihuana?

No. Health Canada does not provide this type of information.

Where can I obtain a legal source of starting materials?

There are four legal sources of starting materials:

Health Canada;

Personal-Use Production Licence holders;

Designated-Person Production Licence holders; and

Importation.

The process varies by source. Please contact the Office of Controlled

Substances at [email protected] for details.

Does Health Canada have a list of Personal-Use and Designated-Person

Production Licence holders who are interested in selling starting

materials to licensed producers?

Licensed producers must identify their own source of starting materials.

Health Canada is unable to provide any information about Personal-Use and

Designated-Person Production Licence holders.

What documents are required for a client to register with a licensed

producer?

Licensed producers may accept the following documents:

A medical document - A medical document must be completed in full and

signed by a health care practitioner.

An Authorization to Possess - This document is issued by Health Canada

and can only be used until the end of its validity period, or the expiry

date if no separate validity date is indicated.

A Form B "Medical Practitioner's Form" - While this form is primarily for

use under the Marihuana Medical Access Regulations, if your health care

Practitioner has already completed it, it may be used during the

transition period so long as it is within one year of the date it was

signed by the health care practitioner.

A licensed producer may also require clients to provide additional

supporting documentation.

Once my company registers a client who submitted their Authorization to

Possess, what do I do with this document?

Once the client has been successfully registered, you must send the

original Authorization to Possess document to Health Canada at the

following address:

Page 14: MMPR Growers frequently asked questions

Marihuana Medical Access Program

Controlled Substances and Tobacco Directorate

Healthy Environments and Consumer Safety Branch

Health Canada

Address Locator: 0300A

Ottawa, ON K1A 0K9

Once an Authorization to Possess holder registers with a licensed

producer, Health Canada will revoke the Authorization to Possess and any

associated licence to produce.

Is there a restriction on how much I can charge patients for dried

marihuana?

No. Licensed producers may set their own prices.

What strains of marihuana can I cultivate under a production licence?

The new Marihuana for Medical Purposes Regulations do not specify or

limit what strains of marihuana can be cultivated.

Can I sell cannabis resins, oils, extractions and edible marihuana

products?

No. The new Marihuana for Medical Purposes Regulations only permit the

sale of dried marihuana.

Can a production site be located outdoors or in a greenhouse?

Production sites can only be located indoors. You can cultivate in a

greenhouse if it meets the requirements of the new Marihuana for Medical

Purposes Regulations, including for physical security.

Can I operate a storefront?

No. You must ship dried marihuana directly to the client (or their

physician, if requested).

Can I sell/provide product to a compassion club or dispensary who will

then distribute on my behalf?

No. Only licensed producers are authorized to sell or provide dried

marihuana. Licensed producers must ship dried marihuana directly to the

client (or their physician, if requested) in accordance with the new

Marihuana for Medical Purposes Regulations.

Do municipal zoning by-laws apply to my production site?

Licensed producers are required to notify their local government, local

police force and local fire officials of their intention to apply to

Health Canada, so that local authorities are aware of their proposed

location and activities. Licensed producers are also required to

communicate with local authorities whenever there is a change in the

Page 15: MMPR Growers frequently asked questions

status of their licence. Licensed producers must comply with all federal,

provincial/territorial and municipal laws and by-laws, including

municipal zoning by-laws.

Is there a limit to how many production licences Health Canada will issue

under the Marihuana for Medical Purposes Regulations (MMPR)?

No. Health Canada will not impose a limit on the number of production

licences.

For Health Care Professionals

What medical conditions qualify for the use of marihuana as a treatment

option under the Marihuana for Medical Purposes Regulations (MMPR)?

The MMPR do not contain any limitations on the conditions for which a

health care practitioner can support the use of marihuana for medical

purposes.

You may wish to refer to the document entitled Information for Health

Care Professionals: Cannabis (marihuana, marijuana) and the Cannabinoids

for the latest information on the use of marihuana for medical purposes.

Please note that if you are supporting an application under the Marihuana

Medical Access Program (by completing a Form B "Medical Practitioner's

Form"), applicants must qualify under either the Category 1 or Category 2

medical conditions.

How does my patient access marihuana through the new Marihuana for

Medical Purposes Regulations (MMPR)?

If you support your patient's use of marihuana for medical purposes you

will need to complete a medical document with specific information that

is similar to a prescription. If you choose to use a different

template/form you must ensure that all required information as described

in the sample medical document is provided.

Once complete, your patient must send the original medical document to a

licensed producer with a registration form (provided by the licensed

producer). The licensed producer will fill and ship your patient's order,

based on the daily amount of dried marihuana indicated on the medical

document.

What is the difference between Form B and a medical document?

Form B "Medical Practitioner's Form" is the document that must be

completed by the health care practitioner as part of an application to

Health Canada for an Authorization to Possess marihuana for medical

purposes under the Marihuana Medical Access Program.

If your patient chooses to order dried marihuana from a licensed producer

under the new Marihuana for Medical Purposes Regulations, you must

complete a medical document. This document does not require all of the

same information as Form B.

Page 16: MMPR Growers frequently asked questions

Are there daily amount and duration restrictions under the Marihuana for

Medical Purposes Regulations?

Various surveys published in peer-reviewed literature have suggested that

the majority of people using inhaled or orally ingested cannabis for

medical purposes reported using approximately 1-3 grams of cannabis per

day.

While there are no restrictions under the new Marihuana for Medical

Purposes Regulations on the daily amount that you may recommend, there is

a possession cap of the lesser of 150 grams or 30 times the daily amount.

The medical document must be completed annually (or sooner if you

recommend a shorter duration) to ensure that you continue to support your

patient's use of marihuana.

We recommend you consult the document entitled Information for Health

Care Professionals: Cannabis (marihuana, marijuana) and the Cannabinoids

for further information.

What routes of administration can I recommend for my patient?

Typically dried marihuana is consumed orally or inhaled. Smoking is not

recommended. Some individuals use their dried marihuana with a vaporizer

or in teas.

Please note that licensed producers can only provide dried marihuana.

Other forms of marihuana, such as edibles or oils, are not permitted to

be sold by licensed producers under the Marihuana for Medical Purposes

Regulations.

Is there information available that indicates which strains are better

suited to certain conditions?

Health Canada is not aware of any clinical research on this subject.

Will dried marihuana be assigned a Drug Identification Number?

Marihuana for medical purposes is not an approved therapeutic drug in any

country in the world, including Canada. Scientific studies of its safety

and efficacy are not conclusive.

Where can I obtain information on the product my patient is considering?

You may contact the licensed producer(s) directly to obtain information

about the strain(s) of dried marihuana available. Each product label must

include the percentage of Tetrahydrocannabinol (THC) and percentage of

Cannabidiol (CBD) in the lot and batch that is being sold.

Once licensed producers are established, a list of licensed producers and

their contact information will be maintained on the Licensed Producers

web page.

Page 17: MMPR Growers frequently asked questions

In addition, Health Canada has posted a detailed document entitled

Information for Health Care Professionals: Cannabis (marihuana,

marijuana) and the Cannabinoids, which contains updated information on

the use of marihuana for medical purposes. This document is available on

the Health Canada website.

For Police / Law Enforcement

How do I determine whether or not someone is authorized to be in

possession of marihuana for medical purposes?

Until March 31, 2014, individuals may hold an Authorization to Possess

(ATP) marihuana for medical purposes issued by Health Canada under the

Marihuana Medical Access Regulations (MMAR), OR they may register with a

licensed producer to access dried marihuana under the new Marihuana for

Medical Purposes Regulations (MMPR), but not both.

Under the MMAR:

For individuals who continue to access marihuana for medical purposes

under the MMAR, the ATP will remain the same (a pink, watermarked, legal-

sized document). On March 31, 2014, all ATPs (and licences to produce)

issued under the MMAR expire and will no longer provide individuals

authority to possess marihuana. As of April 1, 2014, the only legal means

to access to marihuana for medical purposes will be through licensed

producers.

Until March 31, 2014, law enforcement officials may continue to contact

the Marihuana Medical Access Program's police services line to verify

information related to authorizations and licences requested in the

context of an investigation.

Under the new MMPR:

Individuals can access marihuana by registering with a licensed producer.

These individuals will not be issued an ATP. Instead, either the label on

the packaging or a separate document accompanying each shipment of dried

marihuana will provide the authority to possess marihuana. In the course

of an investigation, law enforcement officers may contact the licensed

producer directly to confirm whether the individual is a client of the

producer, an individual who is responsible for a client of the producer

and the daily quantity allowed.

Who can I contact if I am investigating someone who may or may not be

authorized under the MMPR?

If an individual presents you with the packaging or a document included

in their order of dried marihuana from a licensed producer, you may

contact the licensed producer to confirm the registration and the daily

quantity of dried marihuana.

The licensed producer must confirm that you are a member of a Canadian

police force, the information must be requested in the context of an

investigation under the CDSA or the Marihuana for Medical Purposes

Page 18: MMPR Growers frequently asked questions

Regulations and you must provide the name of the individual, the date of

birth and the gender.

Will authorization and licence documents issued under the MMAR constitute

valid authority to possess or produce marihuana after March 31, 2014?

No. On April 1, 2014, all Authorizations to Possess (ATPs), Personal-Use

Production Licences (PUPLs) and Designated-Person Production Licences

(DPPLs) will expire. All individuals who possess and/or produce marihuana

under the Marihuana Medical Access Regulations (MMAR) will be advised to

destroy or dispose of their marihuana and/or plants no later than March

31, 2014.

As of April 1, 2014, the only legal means to access marihuana for medical

purposes will be through a licensed producer under the Marihuana for

Medical Purposes Regulations (MMPR).

What is the difference between an expiry and validity date?

The Marihuana Medical Access Regulations (MMAR) will be repealed on March

31, 2014. As a result, between now and March 31, 2014, Health Canada will

issue Authorizations to Possess (ATPs) with two dates: an expiry date and

a validity date.

The expiry date on all ATPs will be March 31, 2014.

The validity date, which may go beyond March 31, 2014, is now included on

an ATP. This date enables ATP holders to switch to a licensed producer by

using their ATP instead of returning to their health care practitioner to

have a medical document signed.

Is there a limit to the amount of dried marihuana someone can carry on

their person under the Marihuana for Medical Purposes Regulations?

Yes. The new Marihuana for Medical Purposes Regulations impose a maximum

possession cap of the lesser of 150 grams of dried marihuana or 30 times

their daily amount at any one time. For example, if an individual has a

daily amount of 2 grams per day, their possession cap would be 60 grams.

Will Health Canada release a list of production sites that were licensed

under the MMAR after March 31, 2014, so that local authorities can ensure

they are dismantled?

No. This information is protected under the Privacy Act.

For Municipalities

Are licensed producers subject to local legislation and by-laws?

Yes; however, it is the responsibility of the municipality to conduct the

relevant inspections for compliance with by-laws such as zoning. Health

Canada can only inspect for compliance with the Marihuana for Medical

Purposes Regulations and any related federal legislation. Note that

licensed producers are required to notify their local government, local

Page 19: MMPR Growers frequently asked questions

police force and local fire officials of their intention to apply to

Health Canada, so that local authorities are aware of their proposed

location and activities. Licensed producers are also required to

communicate with local authorities whenever there is a change in the

status of their licence.

Can municipalities stop the licensing process if they disagree with the

proposed site of production or any other requirement?

No; however, local authorities can communicate any concerns directly to

the production site owner and enforce local legislation and by-laws.

Can compassion clubs dispense for a licensed producer?

No. Licensed producers must ship dried marihuana directly to the client

or the client's health care practitioner (if indicated).

Will Health Canada provide the municipality with a list of production

sites that were licensed under the MMAR after March 31, 2014?

No. This information is protected under the Privacy Act.

Will Health Canada ensure that these sites have been dismantled once the

MMAR is repealed on March 31, 2014?

Health Canada will provide guidance to all current program participants

regarding the appropriate means to dispose of their dried marihuana and

marihuana plants.

The production of marihuana in homes beyond March 31, 2014, is illegal

and may result in law enforcement action.

December 31, 2012 Number of persons who hold an Authorization to Possess Dried Marihuana in Canada: 28,115

Number of persons who hold a Personal-Use Production Licence in Canada: 18,063

Number of persons who hold a Designated Person Production Licence in Canada: 3,405

Number of persons in Canada who have indicated they will access dried marihuana and/or

marihuana seeds from Health Canada for medical purposes: 5,283

Regional Information as of December 2012

Region Authorization to

Possess

Personal-Use

Production Licence

Designated Person

Production Licence

Yukon - - -

Northwest

Territories - - -

Page 20: MMPR Growers frequently asked questions

Nunavut - - -

Newfoundland and

Labrador 146 49 -

Prince Edward

Island 68 35 -

Nova Scotia 1,864 1,338 132

New Brunswick 566 433 31

Quebec 884 556 120

Ontario 8,617 5,044 640

Manitoba 443 276 68

Saskatchewan 688 276 56

Alberta 1,438 677 115

British Columbia 13,362 9,369 2,232

Building a Legal Marijuana Industry From the Ground Up

Washington’s Initiative 502 legalized pot across the state, but provided only a few guidelines

for how to produce, process, and retail the drug. What regulations will lawmakers put in

place—and will they convince black market users to switch to a new, regulated industry?

If all goes according to plan, by the end of this year farmers across Washington State will begin

large-scale cultivation of a commodity they’ve never been allowed to mass-produce before—

marijuana. Washington won’t just have the kind of quasi-legal medical marijuana regime now

operating in 18 states and the District of Columbia. We’re talking about a place where weed can

be produced, sold, and consumed as openly and legally as milk.

As a result, state officials are also getting down to the business of cultivating pot, but in a

different sense. Now that the voters have spoken, the government’s task is to establish the

regulatory furrows and field boundaries that will shape the growth of the legal marijuana

industry itself. Governments invariably help shape markets through rules, subsidies, tariffs, and

Page 21: MMPR Growers frequently asked questions

other interventions designed to promote some priorities at the expense of others. Do you want

factories that produce as much as possible? Then make it easy for big manufacturers to buy up

smaller ones. Do you want to preserve jobs? Then do the opposite. But when it comes to

marijuana, the question of what kind of garden it’s best to grow is particularly complex.

That’s why Washington has hired Mark Kleiman, a jovially argumentative professor of public

policy at the University of California-Los Angeles. Kleiman is a burly, gray-bearded man

whose office is cluttered with haphazardly shelved texts on drug policy and criminology, his

own books on those topics, and a paperback edition of The Hobbit. He has assembled a team of

some 40 researchers to analyze the key issues confronting the Washington State Liquor Control

Board, the body overseeing the whole legal-marijuana endeavor, and sketch out the potential

outcomes of various approaches the board might take. “This isn’t just about making marijuana

use legal,” says Kleiman. “It’s about creating a legal industry. Very different proposition.”

For the industry to succeed, prices need to settle at a just-right “Goldilocks point”—not so high

that they drive people to the black market, but not so low that they promote overindulgence and

an illegal export market.

Initiative 502 (PDF), the ballot measure that legalized marijuana, spells out only a few

guidelines. Producing, processing, and retailing weed will each require a license and will each

be taxed at 25 percent. The product will be sold only to adults over 21, and only in government-

licensed stores that carry nothing but pot products and related paraphernalia. “They can’t even

sell the Doritos,” deadpans Kleiman.

That leaves several key questions unanswered. How many licenses do you hand out? Who gets

them? How big can a retailer, processor, or grower get?

One route Washington could take would be to issue lots of grower licenses and limit farm size

to end up with a large number of small producers. Call it the mom-and-pop, artisanal-weed

option. That would generate competition, which keeps prices low, encourages innovation, and

makes it much more difficult for the industry to accumulate the kind of political power wielded

by, say, Big Tobacco—the three companies that control 85 percent of the national cigarette

market. On the other hand, it’s more difficult to monitor and regulate hundreds of small

businesses than a few big ones. “And,” points out Kleiman, “they’re not making as much, so

each of them has a stronger incentive to push stuff out the back door”—into the black market.

If the state instead allowed only a few big growers to operate, they might get rich enough to

become powerful players in state politics. But their centralized operations would be much easier

to keep tabs on, and they would have a powerful incentive to abide by the law. “Otherwise they

could lose their oligopoly position, which is basically a license to print money,” says Kleiman.

The first round of draft regulations, issued in May for public comment, seems to at least leave

the door open for the mom-and-pop option. The rules don’t mention any cap on the number of

producers’ licenses to be issued. But nor do they set a limit on how big grow operations can get.

And the rules could well change before they are finalized in late summer.

One major advantage of having a few big growers is it would likely keep prices high. That’s a

plus not only for state tax revenues, but for public health as well, because of the way price

influences the behavior of a particular group—serious potheads. “The daily and near-daily users

are the ones who really drive the market,” says Beau Kilmer, the co-director of the RAND Drug

Policy Research Center, who is working with Kleiman. “They’re about 20 percent of total

users, but they account for about 80 percent of total consumption.” The proportions are similar

Page 22: MMPR Growers frequently asked questions

among alcohol drinkers. Studies have found that higher prices keep a lid on how much those

hard-core boozehounds imbibe, says Kleiman. Which is a good reason to keep weed prices up

too. Marijuana may be a relatively benign drug, but it’s not harmless.

But here’s where the legal-pot industry runs into a unique and fiendish challenge: Washington

can’t let the price drift too high because, of course, marijuana is not really a “new” industry.

There is already a well-established system of marijuana producers, processors, and

consumers—it’s just not a legal one.

Coaxing the estimated half-million-plus Washington residents who currently get their ganja

from either the black market or the grey medical market to switch to a new, regulated industry

amounts to a social-engineering project something like trying to divert a wild river into an

improvised canal.

A certain amount of illegal trade is pretty much guaranteed to continue. About a quarter of total

cannabis use is by people who are under 21, for whom marijuana won’t be legal even after

legalization, Kleiman noted in a recent radio interview. “It means we’re only legalizing about

three-quarters of the market,” he said.

For adults, the legal market will have the huge advantages of being, well, legal, and of

providing reliable, tested products. But prices are bound to be higher than in the medical and

black markets. Producers in those systems don’t have to shoulder the costs of complying with

regulations and paying taxes. The multimillion-dollar cigarette smuggling business attests to

how many people are willing to run a little risk to get something cheap. Or think about digital

music: iTunes has cut down on illegal file sharing by offering fans music that is easily

procured, reasonably priced, and of guaranteed quality. But millions of songs are still illegally

downloaded for free every year. And scoring a joint in Washington is almost as easy as pirating

a song on your laptop. “Anyone who wants a medical card can get one,” says Kleiman. Which

raises the question: Suppose they threw a legalized pot industry and nobody came?

For the industry to actually succeed, prices need to settle at what Kleiman calls a just-right

“Goldilocks point”—not so high that they drive people to the black market, but not so low that

they promote overindulgence and an illegal export market. Regulations can’t set those prices;

they can only try to influence them.

All of which makes it exceedingly difficult to figure out how much tax revenue Washington

will actually pull in from legal pot—a key point in selling the initiative. The state’s Office of

Financial Management recently published its best guess on how Initiative 502 will impact

Washington’s bottom line. Regulating the pot industry, the report points out, will certainly

incur millions of dollars in administrative costs, as well as lots of other potential bills. (Don’t

forget the teensy detail that the federal government still considers all marijuana flat-out illegal.

That means it’s possible Washington will find itself having to pay for the legal defense of state

employees targeted by federal prosecutors.) Best case, the report estimates, the state could gross

nearly $2 billion over five years. Worst case? “The total amount of revenue generated to state

and local government could be as low as zero.”