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'seed-To-Sale' Marijuana Tracking System Proposed For Michigan Medical Dispensaries


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LANSING, MI — Medical marijuana sold through licensed dispensaries would be tracked from "seed to sale" under new legislation in the Michigan House. 

House Bill 4827, sponsored by Judiciary Committee Chairman Klint Kesto, R-Commerce Township, would require the state to establish or contract for a marijuana tracking system.

The legislation would complement an ongoing push to formally allow and regulate medical marijuana dispensaries, some of which have continued to operate in a legal grey area since a 2013 Michigan Supreme Court ruling.

The dispensary bill would see the state license larger-scale marijuana growers, processors, transporters, "provisioning centers" and product safety testing facilities.

Marijuana transfers to dispensaries would be subject to an 8 percent tax under the proposed system, which would run parallel to the voter-approved caregiver home growing model.

The tracking bill is the latest wrinkle in the evolving medical marijuana dispensary plan, which may also provide a regulatory framework in the event that a recreational legalization proposal makes the ballot in 2016.

"We believe that regulation is the way forward," said Jessica Billingsley, chief operating officer and co-founder of MJ Freeway Business Solutions, a tracking software company that could eventually bid for the state contract.

"Cannabis is unique in that it's brought to market in a high-value dried flower form that loses value and weight as it evaporates, and it requires very unique inventory tracking in order to maintain a clear chain of custody and to prevent diversion."

MJ Freeway, based in Colorado, is among a growing number of companies now offering marijuana inventory tracking software in states that have legalized marijuana for medical or recreational use.

Kesto invited MJ Freeway to testify before the committee on Tuesday but noted that his invitation did not reflect an endorsement of their particular suite of tracking and compliance software.

Tracking medical marijuana can improve patient and product safety, according to MJ Freeway program manager Tony Reese, ensuring that strains are properly identified, testing is completed and dosage is consistent.

Tracking can also benefit public safety and help states avoid interference by the federal government, which continues to consider marijuana an illegal controlled substance, according to Reese.

"It's product going across state borders that draws federal interference," he said, explaining that tracking systems can help match supply and demand.

"It's when supply overreaches demand significantly that things like diversion — people taking product and trying to capitalize that product in other markets to recover the capital investment — occurs."

State Rep. Jeff Irwin, D-Ann Arbor, questioned how much the software contract would cost the state and whether those costs would ultimately be passed onto consumers, thereby discouraging purchase through legal channels.

"My fear here is that in trying to grasp so tightly for control, everything will squeeze through our system, because of course there's a very active black market for cannabis," Irwin said.

Washington state, where voters chose to fully legalize the drug, contracted with Biotrack THC for tracking. The company reportedly submitted a bidof $782,000 for its software and $296,000 for annual maintenance and support.

Medical marijuana activists, who were not able to testify in committee on Tuesday due to time constraints, raised other concerns after the hearing.

"It seems excessive," said Rick Thompson, former editor of the Michigan Medical Marijuana Magazine. "We don't really need the state to know whether we're producing sativa or indica, or exactly how many clones we've produced."

Roger Milford, who runs the Jackson County Compassion Club, said he uses the MJ Freeway software but does not believe it should be mandated by the state.

"I use it because it's good for business," said Milford. "I can track my caregivers. I can track my business. I know my patients are in a HIPAA-compliant database so they're information is protected. I enjoy the system. It works well. But I don't need the state telling us to track every little minutia." 

The House Judiciary Committee did not vote on the medical marijuana dispensary or tracking bills. Discussion is expected to continue at a later date.

 

http://www.mlive.com/lansing-news/index.ssf/2015/08/seed-to-sale_tracking_system_p.html

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Law enforcement can't make a case against a dispensary easily so they make another law to make the job easier. With this law dispensaries would have to admit to being illegal, not just caregivers servicing their 5 patients at the store, or easily be caught lying. It's a dispensary trap. They unwittingly try to comply with this new law and instantly incriminate themselves. 

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Roger Milford, who runs the Jackson County Compassion Club, said he uses the MJ Freeway software but does not believe it should be mandated by the state.


"I use it because it's good for business," said Milford. "I can track my caregivers. I can track my business. I know my patients are in a HIPAA-compliant database so they're information is protected. I enjoy the system. It works well. But I don't need the state telling us to track every little minutia." 


 


I'd watch out for this guy, Roger Milford. Seems he is a plant or a total idiot. Both. 


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Roger Milford, who runs the Jackson County Compassion Club, said he uses the MJ Freeway software but does not believe it should be mandated by the state.

"I use it because it's good for business," said Milford. "I can track my caregivers. I can track my business. I know my patients are in a HIPAA-compliant database so they're information is protected. I enjoy the system. It works well. But I don't need the state telling us to track every little minutia." 

 

I'd watch out for this guy, Roger Milford. Seems he is a plant or a total idiot. Both. 

 

BOTH

 

And a compliant dispensary can afford this??? $782,000 for its software and $296,000 

Edited by Willy
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I watched the MJFreeway presentation and I would agree with the above poster, regarding its use as a business management tool.   If you are going to operate an honest to goodness real commercial mj grow, marketing and sales business you need the cost accounting and sales/marketing data that of a program like the one MJFreeway folks presented.  

 

As far as a seed to sale system for the State to control sales and the grey/black market, the concept seems like a hopeless failure before it even starts.  You are counting on people that for years grew completely illegally and then opened illegal storefronts to now cross all the tees and dot the i's.  Good luck with that.

Edited by semicaregiver
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I watched the MJFreeway presentation and I would agree with the above poster, regarding its use as a business management tool.   If you are going to operate an honest to goodness real commercial mj grow, marketing and sales business you need the cost accounting and sales/marketing data that of a program like the one MJFreeway folks presented.  

 

As far as a seed to sale system for the State to control sales and the grey/black market, the concept seems like a hopeless failure before it even starts.  You are counting on people that for years grew completely illegally and then opened illegal storefronts to now cross all the tees and dot the i's.  Good luck with that.

I think that the people who open these store fronts are the ones that were always wanna-bees. Always thinking it was easy money. Not the real deal. The real growers are not that dumb or they wouldn't be around anymore. Opening a dispensary is a harsh way to learn what a lot of us already know.

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Rest, agreed many are wanabee's and folks that were just dealers before.   Either way, no rational person would expect that this demographic group are not going to immediately devise ways around whatever system the anti group puts in place.

And.... no rational person would expect that the anti's are going to let them find ways around it either, including a ballot initiative. That will be their toy also because the anti's are in power here in Michigan.

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no, what mjfreeway does is try to reinvent the wheel.

 

what you need is a food processor software tracking system.

like say the one nabisco cookies uses. it automatically weighs, and tracks weights, defects, testing , and they already have a system setup for tracking recalls due to contaminated foods.

 

why would anyone use mjfreeway when the food industry already has systems that are proven to work and have been in use for 30+ years?

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t-pain.  That was my point.   If someone is in a legit commercial business they need to manage their costs, inventory, marketing and sales info.   Software consultants have taken software that does these things and customized it to every industry from cookie making to resale shops to the auto industry.   I do not need it so I have not looked at software that has been specifically modified for the mj commercial industry, but apparently MJFreeway seems to have created one such variety.    I have no idea of the value/quality of their package.  All I am saying is that if you are truly in a large scale commercial mj grow/distribute/sell business you need data on your operation.   

 

Jumping off from the point that some sort of software would be needed to manage a commercial business, the state should not be micro managing what software you buy, but rather a database that your software would communicate with.  

Edited by semicaregiver
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I wonder if any current dispensary customers or suppliers have concerns about the possibility that only dispensaries that have tracked this information since the beginning will be allowed to participate in any future licensing scheme, and that they might be compelled to share the previously collected data with law enforcement via this new tracking system?

 

Which current dispensaries track this information? Is it not subject to compelled release when the dispensary wants to "play ball?"

 

I had a bit of a disagreement a couple of years ago with a former poster here who felt that the MMJ disclosure portion of the MMMA applied only to law enforcement and government employees.  In my own, non-legal-professional opinion, disclosure requirements apply to everyone.  If this interpretation is true, it becomes a bit troublesome to think about dispensaries recording patient and CG information and making said information available to others.

 

I visited a dispensary only one time...and that because they billed themselves more as a farmer's market.  They wanted to copy my patient or CG card, and I said "no way."  They didn't need to copy my card; they simply needed to know that I was a qualified MMJ person.

 

I fear the databases that dispensaries are compiling = a feeding frenzy for LEOs.

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According tot he bill, LEO will have 100% access specifically for enforcement purposes of any kind.  So any person who goes to a dispensary will have all their information given to police. How much they buy, when they buy, pics of cards, entire purchasing history , what they bought etc.

 

Yeap... And by going to a dispensary, you agree to such intrusion.

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