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Michigan's medical marijuana program generated record revenues last fiscal year despite declining enrollment numbers and a steep drop in registered caregivers. The Michigan Department of Licensing and Regulatory Affairs approved more than 82,000 new medical marijuana applications and 36,000 renewals for the year ending September 30, according to department reports mandated by the state's 2008 voter-approved law. LARA, which also rejected some 20,000 applications, requires most doctor-approved patients to pay a $100 application fee designed to cover administrative costs, but some residents can qualify for a reduced rate of $25. Overall, the state pulled in $10.9 million in fees during fiscal year 2013, up about a million dollars from 2012.
LARA said the program cost around $4 million to administer, leaving the state with a year-end profit of nearly $7 million and a stockpiled savings of roughly $23.5 million. While revenue increased last year, the total number of registered patients and caregivers in Michigan actually fell, meaning more people dropped out of the program than successfully signed up or renewed. As of September 30, there were roughly 118,000 patients in the program, down from 124,000 at the same point in 2012. Nearly 70 percent of patients qualified for the program because of "severe and chronic pain." The number of registered caregivers -- who can grow and sell marijuana for up to five patients -- dropped dramatically last year, falling from approximately 50,000 to 27,000.
Tim Beck, a Detroit activist who helped spearhead Michigan's medical marijuana law, attributed the steep decline in caregivers to realities of the business and a controversial decision by the Michigan Supreme Court that allowed prosecutors to close dispensaries, which often sold off excess product from growers. "I think people got into this program thinking it was going to be some kind of gold rush," said Beck. "The fact of the matter is, it's not really easy to grow quality marijuana, especially indoors. They're just not making the type of money they were expecting."
New rules approved by the state Legislature in 2012 and enacted in April also prohibit anyone from becoming a caregiver if they've been convicted of a felony in the past 10 years or have ever been convicted of a felony involving illegal drugs or an assaultive crime. Medical marijuana application fee revenue is expected to drop significantly in the current fiscal year. Under the revised law, registry cards will be valid for two years instead of one, meaning patients and caregivers will pay fewer annual renewal fees.
"We expect revenues will decrease by up to one-half," said LARA spokesperson Jeannie Vogel. "Expenditures however will continue to go up due to increasing fixed costs and paying for an existing database upgrade project. Once the project is completed we anticipate costs could drop barring any changes to the existing statute." Medical marijuana revenue is set aside in a special fund administered by LARA to cover operating and oversight costs. As of September 30, that fund had a balance of $23,534,952.42, according to Vogel, who said the department is "researching" the potential of reducing fees if revenues continue to outpace costs.
Michigan lawmakers, as part of the current-year budget, gave LARA the authority to tap into the fund and award up to $3 million in medical marijuana oversight grants for county law enforcement agencies. The department has not yet done so. "We have been working with the Legislature to further clarify the language to ensure we are not in conflict with the existing statutory language," Vogel said. The state House in December approved "provisioning center" legislation that would allow for the return of regulated medical marijuana dispensaries. That bill, along with an "edibles" proposal that would expand the definition of "usable marijuana," are awaiting action in the Senate.
News Moderator - The General @ 420 MAGAZINE ®
Source: Mlive.com
Author: Jonathan Oosting
Contact: About MLive.com: Michigan's Leading News, Information and Community Web Site with The Booth Newspapers
Website: Michigan medical marijuana law leads to record revenues, sharp drop in licensed growers | MLive.com
LARA said the program cost around $4 million to administer, leaving the state with a year-end profit of nearly $7 million and a stockpiled savings of roughly $23.5 million. While revenue increased last year, the total number of registered patients and caregivers in Michigan actually fell, meaning more people dropped out of the program than successfully signed up or renewed. As of September 30, there were roughly 118,000 patients in the program, down from 124,000 at the same point in 2012. Nearly 70 percent of patients qualified for the program because of "severe and chronic pain." The number of registered caregivers -- who can grow and sell marijuana for up to five patients -- dropped dramatically last year, falling from approximately 50,000 to 27,000.
Tim Beck, a Detroit activist who helped spearhead Michigan's medical marijuana law, attributed the steep decline in caregivers to realities of the business and a controversial decision by the Michigan Supreme Court that allowed prosecutors to close dispensaries, which often sold off excess product from growers. "I think people got into this program thinking it was going to be some kind of gold rush," said Beck. "The fact of the matter is, it's not really easy to grow quality marijuana, especially indoors. They're just not making the type of money they were expecting."
New rules approved by the state Legislature in 2012 and enacted in April also prohibit anyone from becoming a caregiver if they've been convicted of a felony in the past 10 years or have ever been convicted of a felony involving illegal drugs or an assaultive crime. Medical marijuana application fee revenue is expected to drop significantly in the current fiscal year. Under the revised law, registry cards will be valid for two years instead of one, meaning patients and caregivers will pay fewer annual renewal fees.
"We expect revenues will decrease by up to one-half," said LARA spokesperson Jeannie Vogel. "Expenditures however will continue to go up due to increasing fixed costs and paying for an existing database upgrade project. Once the project is completed we anticipate costs could drop barring any changes to the existing statute." Medical marijuana revenue is set aside in a special fund administered by LARA to cover operating and oversight costs. As of September 30, that fund had a balance of $23,534,952.42, according to Vogel, who said the department is "researching" the potential of reducing fees if revenues continue to outpace costs.
Michigan lawmakers, as part of the current-year budget, gave LARA the authority to tap into the fund and award up to $3 million in medical marijuana oversight grants for county law enforcement agencies. The department has not yet done so. "We have been working with the Legislature to further clarify the language to ensure we are not in conflict with the existing statutory language," Vogel said. The state House in December approved "provisioning center" legislation that would allow for the return of regulated medical marijuana dispensaries. That bill, along with an "edibles" proposal that would expand the definition of "usable marijuana," are awaiting action in the Senate.
News Moderator - The General @ 420 MAGAZINE ®
Source: Mlive.com
Author: Jonathan Oosting
Contact: About MLive.com: Michigan's Leading News, Information and Community Web Site with The Booth Newspapers
Website: Michigan medical marijuana law leads to record revenues, sharp drop in licensed growers | MLive.com
