Case Study: Sweet Grass Kitchen
February 6, 2013

When selecting a company to provide edibles for your patients, there are many factors that come into play: efficacy, taste, packaging, and compliance with state law. In Colorado, a Manufacturer of Infused Products (MIP) must abide by certain guidelines laid forth by the Department of Revenue (DOR). While a MIP must complete an application and pass a health inspection, it is incumbent on Medical Marijuana Centers (MMC’s) to determine their labeling is up to code. Here’s what to look for, using Denver MIP Sweet Grass Kitchen as our study, per HB1284 and the DOR:

Does the edible contain:

a.  an identity statement;
b.  a net weight statement;
c.  a list of ingredients;
d.  a recommended use by or expiration date;
e.  batch tracking information;
f.  basic medical and/or legal warning information; and
g.  statement of the company name and State Licensing Authority
license number, together with the company’s telephone number
or mailing address or website information;

From the example here, you can see clearly where Sweet Grass Kitchen has made the required disclaimers and provided product information. One issue that we found was an altering of the language that the DOR provides, specifically:

“This product is infused with medical marijuana and was produced without regulatory oversight for health, safety or efficacy and there may be health risks associated with the consumption of the product.”

While this information is paraphrased on the product, it is not identical to the preferred language and should be updated to reflect that exact phrasing. Additionally, MIP’s that include statements regarding the efficacy or milligram amounts in the product are encouraged to include the following statements:

1.  ”The appropriate dose of medical marijuana may be different for each patient and medical condition.  Please consult your physician or medical marijuana center.”
2.  ”Levels of active components of medical marijuana reported on product labels are not subject to independent verification and may differ from actual levels.”

We would encourage all MIP’s to include this language, as it prevents any ambiguity over the intent of their product. A warning for children, while not mentioned in the rules specifically, is another element we think responsible MIP’s should move toward.

Overall, Sweet Grass Kitchen is one of the most complete labels we’ve seen for compliance and would recommend only minor changes.

Massachusetts Releases First FAQ
January 2, 2013

Massachusetts has finally released their FAQ about medical marijuana, although they aren’t letting too much out of the bag. The DPH website does provide some information, however, and with the dearth of state releases so far, it’s a welcome sight.

Key points include:

• Deadlines now that January 1st has passed.
• How patients can access medical marijuana until dispensaries are allowed to open.
• Issues that DPH will look at with regards to regulation, including defining a “60-day supply”.
• Early registration (or lack there of).
• Where guidance for health care providers will come from.

Read the entire FAQ online in either PDF or DOC format.

How Amendment 64 Helps MMC’s, MMC Owners
November 7, 2012

And now, the landscape has been drastically altered.

The passage of Amendment 64, along with our regulated medical marijuana industry, makes Colorado the most cannabis friendly state in our nation’s history. Voters overwhelmingly approved retail operations similar to liquor stores, allowed to sell marijuana to any adult over the age of 21. Our phones haven’t stopped ringing all morning. For current and prospective clients, the questions all boil down to this one: what’s changed?

The short answer is, for the next year, very little. Placed on the Department of Revenue’s plate will be the arduous task of creating the regulatory framework for licensing, a process that was anything but expedient when it came to MMJ (although it has been suggested they will borrow heavily from existing code). They have two key deadlines:

• July 1st: promulgation of rules.
• October 1st: accepting applications.

Processing that application can take up to 90 days, at which point a license request must be resolved or the applicant can simply forward their paperwork to their locality, which has another 90 days to issue a license or denial. Add up the days and a worse case scenario for opening is April of 2014, just in time for one of the busiest months for a cannabis related business.

In the meantime, medical marijuana related businesses are projected for higher growth than has been seen in years. Interest in marijuana in general, as well as a decreased stigmatization, look to increase patient numbers - which are already trending up - amongst both the young and old. A blisteringly hot summer also forced many warehouses to make large investments in electrical and HVAC, which will increase harvest yields in the year to come. They are also well positioned for the future.

Amendment 64 provides several benefits to those with operating experience in the MMJ field. From “Section 5. Regulation of marijuana”:

(b) IN ORDER TO ENSURE THE MOST SECURE, RELIABLE, AND ACCOUNTABLE SYSTEM FOR THE PRODUCTION AND DISTRIBUTION OF MARIJUANA AND MARIJUANA PRODUCTS IN ACCORDANCE WITH THIS SUBSECTION, IN ANY COMPETITIVE APPLICATION PROCESS THE DEPARTMENT SHALL HAVE AS A PRIMARY CONSIDERATION WHETHER AN APPLICANT:

         (I) HAS PRIOR EXPERIENCE PRODUCING OR DISTRIBUTING MARIJUANA OR MARIJUANA PRODUCTS PURSUANT TO SECTION 14 OF THIS ARTICLE AND THE COLORADO MEDICAL MARIJUANA CODE IN THE LOCALITY IN WHICH THE APPLICANT SEEKS TO OPERATE A MARIJUANA ESTABLISHMENT; AND

         (II) HAS, DURING THE EXPERIENCE DESCRIBED IN SUBPARAGRAPH (I), COMPLIED CONSISTENTLY WITH SECTION 14 OF THIS ARTICLE, THE PROVISIONS OF THE COLORADO MEDICAL MARIJUANA CODE AND CONFORMING REGULATIONS.

We can guarantee competition will be fierce in what looks to be one of the most sought after new business opportunities of the last decade. Having a leg up by currently operating a MMC and receiving that primary consideration can have huge implications for the success of a business. Additionally, new entrants to the market will pay up to $5,000 to apply, possibly more depending on implementation issues, while owners of MMC’s have their application fee capped at $500, a steep discount.

As always, the easiest way to move forward is with experienced professionals at your side, so call Denver Relief Consulting at 303.420.PLAN with additional questions, or find us at the National Marijuana Business Conference November 8th and 9th.