NH: Bidder In Pot ATC Program Sues DHHS Over Arbitrary Application Process

Katelyn Baker

Well-Known Member
Concord – One of the unsuccessful bidders in the state's medical marijuana program is suing the Department of Health and Human Services, claiming the agency did not follow competitive bidding statutes or its own bidding guidelines in denying him one of the licenses to open an alternative treatment center.

Franklin businessman, developer and auctioneer Paul Morrissette says he spent more than $100,000 putting together what he thought was a strong application for the right to cultivate and dispense cannabis in the south-central part of the state.

He has been challenging the rejection of his application in an appeals process through DHHS since the fall of 2015, when the winning bidders were announced.

His lawsuit, filed on Thursday in Merrimack County Superior Court by attorney Bruce Marshall of Concord, accuses DHHS of fraud negligence in its handling of the request for proposals and assessment of bids from 14 different applicants.

The state eventually granted licenses to Prime Alternative Treatment Center in Merrimack, Sanctuary ATC with a dispensary in Plymouth, and Temescal Wellness with dispensaries in Dover and Lebanon.

The lawsuit accuses DHHS of arbitrarily changing deadlines and the criteria by which bidders were judged, and failing to follow required procedures.

Among other things, "DHHS ignored the statutory requirements and never sought input from qualifying patients, designated caregivers or the residents of the towns or cities in which the alternative treatment center would be located, prior to choosing the successful applicant, as is required by law," the lawsuit states.

Morrissette attempted to follow the administrative appeals process within the DHHS, but hit a dead end.

"After more than a year of delay, the hearings examiners determined that DHHS could not hear the appeal, due to a clear conflict of interest," according to the lawsuit.

That left Morrissette with little choice but to drop the matter or take his case to court.

He is seeking unspecified damages for lost opportunity, lost investment, interest and attorney fees.

State Sen. John Reagan, R-Deerfield, one of the most aggressive advocates for the medical marijuana program, has called the DHHS scoring of applications "arbitrary."

"This is a sensitive subject in New Hampshire and whatever the requirements were going to be, everyone should have been held to the same requirements," he told the New Hampshire Union Leader when Morrissette first filed his administrative appeal in 2015.

"It appears to me that there is some question as to whether all the bidders knew everything at the same time, which is pretty basic in any bidding process," he said.

DHHS spokesman Jake Leon said the department had not been served the lawsuit yet, and therefore could not comment.

"Once the department receives the complaint, we will review the matter thoroughly with the Attorney General to determine a response," Leon said.

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Full Article: Bidder In Pot ATC Program Sues DHHS Over Arbitrary Application Process
Author: Dave Solomon
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Website: New Hampshire Union Leader
 
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