Pubdate: Thu, 22 Aug 2013
Source: Washington Times (DC)
Copyright: 2013 The Washington Times, LLC.
Contact:  http://www.washingtontimes.com/
Details: http://www.mapinc.org/media/492
Author: Celina Durgin
Page: A12

DISPENSARIES PROFITS TO PAY FOR POT FOR POOR

Clinic Owner Says District's Proposed Sliding Scale a Step Too Far for
Sustainability

A proposed first-in-the-nation government program would require
medical marijuana dispensaries in the District to put aside 2 percent
of their profits in order to subsidize pot purchases for poor patients.

Under the regulatory proposal, dispensaries would give at least a 20
percent discount on marijuana to low-income people at or below 200
percent of the federal poverty level.

Clinics often offer lower prices to poor patients, and states that
allow medical marijuana often encourage discounts for low-income
patients. But Allen St. Pierre, executive director of the National
Organization for the Reform of Marijuana Laws, said no state has
inserted this type of provision into regulations.

"This rule is totally unprecedented in the medical marijuana
community," he said.

Medical marijuana sales began in the District at the Capital City Care
clinic last month. Prices for marijuana range from $380 to $440 per
ounce, according to the clinic's website.

The sliding scale program is intended to improve access for the poor,
who potentially comprise a large percentage of medical marijuana
consumers. Often, marijuana patients do not hold full-time jobs
because of the nature of the illnesses that qualify them to use pot
medically, analysts say. Medical marijuana cards issued to patients
indicate whether they are low-income and eligible for discounts on the
drug.

Other state governments mandate a sliding scale program for medical
marijuana patient license registration. Arizona normally charges a
$150 patient registry fee, which is reduced 50 percent for low income
registrants.

Yet in such cases the discount is funded by the state government, not
the dispensaries.

Supporters have praised the rule for mitigating what they call
"prohibition-level prices" of medical marijuana, said Dan Riffle,
legislative analyst for D.C.-based Marijuana Policy Project.

"Marijuana is overpriced because it's over-regulated, so a program for
the poor is necessary," he said. "There's this outdated hysteria
surrounding marijuana, but it's much safer than many other
medications."

It is not clear when the rule, which was published in the D.C.
Register last week and is in the midst of a 30-day review period, will
take effect.

City officials in March proposed a subsidy program in which
dispensaries would pay into a city-operated fund, but that proposal
was amended. Under the new rule, dispensaries would have to reserve
funds themselves to ensure that the discounts they give amount to 2
percent of their income. The city will audit reports from the clinics
annually and can adjust the percentage of profits that dispensaries
have to reserve for subsidies.

But dispensaries are uncertain about how they would meet the rule's
new requirements. Unlike a city-operated fund, a mandate that
dispensaries cover discounts up to 2 percent of their income could be
fulfilled in several different ways, but officials haven't specified
how it will operate.

"Nobody understands how this system is going to work," Mr. St. Pierre
said.

Officials with the District's Department of Health did not return
phone messages seeking comment.

The rule also does not specify which type of cannabis the dispensaries
must discount. D.C. marijuana clinics carry multiple strains of the
plant, some more expensive than others.

Dispensary owners sympathize with low-income patients, but "a 20
percent discount is not insignificant" as a challenge to business
sustainability, said Mike Cuthriell, president of the Metropolitan
Wellness Center dispensary in Southeast. While he believes discounts
are beneficial to patients, Mr. Cuthriell expressed concerns about the
ratio of low-income patients to those who are not.

Capital City Care dispensary already offers discounts for seniors,
veterans and low-income patients.

"Capital City Care is happy to do its part to ensure that all
qualified patients have access to the medicine," spokesman Scott
Morgan said.
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MAP posted-by: Matt