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Kesto’S New Provisioning Centers Act Unveiled September 22

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LANSING- Although there hasn’t been an official notice posted yet, so many rumors are swirling around Lansing about a hearing for Michigan’s marijuana bills on Tuesday I’ve decided to post a pre-announcement announcement.

Rep. Klint Kesto, and Oakland County Republican, is in charge of the House Judiciary Committee and it is there that HB 4209 and HB 4210, Michigan’s two long-suffering medical marijuana bills, are currently jailed.

The Judiciary Committee usually meets on Tuesdays at noon, but Kesto has been known to pull a fast one and slip in a meeting at 9am.

How does one subvert the nature of a representative form of government? By restricting public access to information and preventing public participation in the process. The 2015 history of our two bills offer a prime example of both reprehensible acts.

Why would all the Lansing insiders know there is going to be a meeting, but the elected officials haven’t announced it to the general public yet? Because they plan to drop bad news, that’s why.

Read the latest version of the bill (now up to 55 pages) and see for yourself what a big government program this Provisioning Centers Act has turned into.


Kesto is clued in to all the Lansing tricks of the trade, like holding a hearing for a bill (HB 4827, the Seed-To-Sale Marijuana Bill, authored by corporate interest MJ Freeway and introduced by Kesto himself) when the bill WASN’T EVEN ASSIGNED TO HIS COMMITTEE. That little tomfoolery happened on August 18, when Kesto published a meeting announcement for the Judiciary that claimed both HB 4209 and HB 4210 were being debated. They weren’t.

Klint Kesto is no Kevin Cotter, that’s for darn sure.

cotter.jpgRep. Kevin Cotter is a Republican currently serving as the Speaker of the House, the top dog in that pound full of puppies. But in 2013, the last time HBs 4209 and 4210 were heard in the House, he was the Chair of the Judiciary. He was the man that Kesto aspires to be. Afterall the proposed changes were worked into the language he gave those two bills three FULL hearings. He even called the Judiciary back into session after they worked a full day to ensure that all the citizens who wished to have their voice heard on the nature of the marijuana bills had their opportunity.

Kesto isn’t going to do the honorable thing, I am being told. He’ll take testimony from a select few who he chooses, then he’ll call for a vote of his Committee. No full vetting. No opportunity for The People to read the full length and girth of his dickish proposal and advise their elected representatives on how to vote… because he knows The People will hate his Big Government bill.callton.jpg

Guess what? We’d hate it a lot less if the people promoting the bill weren’t so snake-like in their behavior. That goes for diminutive and nearly-forgotten bill sponsor, Rep. Michael Callton (R-Nashville), without whose permission NOTHING gets to be included in the bill.

photo captions: Speaker of the House Rep. Kevin Cotter (above) and Rep. Michael Callton (right)

Kesto is responsible for the way in which the Bill is being forced through the halls of government. Callton and Kesto are responsible for the content of the bill.

There has not been a single hearing yet on HB 4209- the current version- and the House website still carries the Draft 1 version from January 2015. There have been 8 different versions since then. Is this proper lawmaking? I hope the answer is NO.

Read the bill and then, tell Kesto and sponsor Michael Callton exactly what you think.



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Or maybe you have no idea just how much they don't give a shiit want you think...

Thanks for your input. They often respond personally and in detail. I guess we won't see you tomorrow then...


To be fair, they care much less if you are not in their voting district. I always reach out to friends and family in these jurisdictions and ask them for the favor of a phone call in addition to calling/writing myself.


My rep got ahold of me a month after we spoke to let me know he had changed his position on a certain subject matter.

Edited by suneday11

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Or maybe you have no idea just how much they don't give a shiit want you think...





You do live around  or in Lansing right ? i also know of your Court date and you Won right ? i understand winning a  Court case is not to be taken lightly even if someone does win Imo they louse because of all the stress that comes with winning and most times Money and stress come together some days i feel the same way but thats how they want us to think i hope to be their if i can and thats for fighting the good fight that you did do

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There's a lot of overhead built into that scheme. Those are going to be some costly meds.


The bureaucrats must be pinching their genitals in expectation thinking of all the money and power.

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Seems like a whole lot of money to corner a medical market that has less less than a 100,000 participants.....

How much do patients have to be charged for meds for these guys to make a profit?


"The number of patients in Michigan's medical marijuana program declined for the second year in a row in 2014, according to state statistics reviewed by The Detroit News.

Last year, the number of identification cards for patients in the program totaled 96,408, according to the Michigan Department of Licensing and Regulatory Affairs. That compares with 119,470 patients in 2011, and 118,368 in 2013."

Edited by Sidartha Jones

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And they call the original MMMA confusing, take a look at the legislative analysis of what Kesto is proposing, while at the same time not making what he is proposing available to read....





House Bill 4209 (Proposed Substitute H-2) Sponsor: Rep. Mike Callton, D.C.

House Bill 4827 as introduced Sponsor: Rep. Klint Kesto

Committee: Judiciary Complete to 9-21-15


As mentioned above, the bill would authorize LARA to prescribe application fees and adjust the regulatory assessment to generate sufficient revenues to adequately offset the costs of implementing, administering, and enforcing the bill. However, LARA seems to have based its estimates of these costs on assumptions that appear to anticipate the legalization and regulation of marihuana for recreational use. Although the costs estimated by LARA could be appropriate, and potentially accurate, for a scenario in which the recreational use of marihuana is legalized, they do not seem strictly applicable to the provisions of the bill.

According to a statistical report prepared by the Bureau of Health Care Services, there were 96,408 qualifying medical marihuana patients at the close of FY 2013-14; these patients currently either grow their own marihuana or obtain it from their primary caregivers pursuant to the Michigan Medical Marihuana Act of 2008 and could continue to do so irrespective of whether the bill is enacted into law. If the costs estimated above (less the costs for the marihuana tracking information technology system supported by the Michigan Medical Marihuana Fund under HB 4210) were divided equally amongst medical marihuana patients, the average amount ultimately incurred by each patient would be $227. 

This amount would be in addition to the existing application fees for registry identification cards and the effects on prices of any markups by marihuana facilities and from the 8.0% marihuana excise tax. There is a possibility that the medical marihuana market envisioned under the bill would not bear the regulatory costs as estimated by LARA, as medical marihuana patients could opt to continue to grow marihuana or obtain it from caregivers or on the black market rather than pay potentially higher prices charged by provisioning centers.

The amount of revenue that would be generated by the 8.0% excise tax imposed on the purchase price of marihuana paid by provisioning centers to growers or processors and distributed to local units of government and the state’s General Fund is currently unknown and is dependent upon the numerous interrelated and dynamic factors affecting both the legal and black markets for marihuana and whether the market envisioned under the bill could bear the regulatory costs estimated by LARA. 

House Bill 4827 adds new misdemeanors and civil infractions. Misdemeanor convictions would increase costs related to county jails and/or local misdemeanor probation supervision. The costs of local incarceration in a county jail and local misdemeanor probation supervision vary by jurisdiction. Misdemeanor fines and civil infraction fines are constitutionally dedicated to public libraries.

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Medical marijuana dispensary, tax proposal passed by Michigan House panel despite concerns


LANSING, MI — Michigan bills that would create a new and regulated medical marijuana industry — and provide a framework that could apply in case of full legalization — are heading to the full House for consideration.

The House Judiciary Committee on Tuesday quickly advanced the three-bill package, approving the legislation before taking public testimony on changes that many in the audience had not seen, a process that one concerned activist called "atrocious."

The bills would license medical marijuana dispensaries in communities that want them, institute an 8 percent tax on retail sales, allow non-smokable forms of the drug and create a seed-to-sale tracking system for pot plants.

"This is something I've been working on longer than my bachelor's degree," said Rep. Mike Callton, R-Nashville, who sponsored the dispensary bill and an earlier version that cleared the House last session. "It's been essentially over 4 years, and it's been an education. Now it's better than it's ever been."

The dispensary legislation would create a five-tier licensing system for growers, processors, testing labs, "secure transporters" and dispensaries. Licensing would be handled by a five-member board appointed by the governor.

Nick Wake, a legislative assistant for Callton, said the distribution model addressed concerns from the law enforcement community, which wanted to "break the chain of custody and chain of control" to reduce the potential for marijuana being diverted to the black market.

But critics, including Democratic Rep. Jeff Irwin of Ann Arbor, argued that the cost of the proposed tax and regulatory model will be passed on to patients, who may look to the black market if prices are too high. Michigan does not tax most other forms of medicine, he noted.

"When we add all these layers of regulations, we are increasing the cost in the legal market, thereby giving a huge advantage to the illegal market," Irwin said. "If we grab too tightly, this may squeeze through our fingers, and we end up with less control rather than more control."

The House Fiscal Agency, in a 17-page analysis of an earlier version of the bill, estimated that the proposed computer tracking system would cost the state about $227 per registered medical marijuana patient, on top of other fees and taxes.

Michigan voters approved a medical marijuana law in 2007 that created a system of registered patients and caregivers, who are allowed to grow small amounts of the the drug in secured locations.

The law did not address dispensaries and alternative forms of the drug, however, and a series of state court decisions has clouded their legal status. Dispensaries have continued to operate in some communities at the leisure of local law enforcement agencies.

The new package, updated significantly since introduction in February, would create a separate set of regulations for medical marijuana businesses and provide criminal penalties for violators. The regulations could theoretically apply to recreational marijuana sales if they are legalized in 2016 or beyond.

Licensing fees would be used to support regulations and enforcement. The Department of Licensing and Regulatory affairs would have to hire about 113 full-time employees, Michigan State Police would have to hire about 34 and the Attorney General's Office would have to hire four workers for prosecution, according to HFA projections.

Revenue from the 8 percent retail excise tax would be divided between local municipalities (27.5 percent), counties (27.5 percent), sheriffs (5 percent) and the state's general fund (40 percent).

A handful of medical marijuana patients testified in support of the general concept of dispensaries and non-smokeable forms of the drug, saying they would have better access to their medicine as a result.

"I would like to know that there is a place within my community where I can walk in to a clear, well-lit dispensary, know that it's not laced and not have to do some shady back room deal," said Lisa Dibble of Huntington.

However, several long-time medical marijuana activists who have been tracking the specific bills in question blasted recent changes, which were approved by the committee before Tuesday's public comment period began.

In particular, they questioned the tiered system, and the "secure transporter" license, which would function much like wholesale distributors under the state's current system for beer and wine.

"It's a curious invention," said Matthew Abel, a Detroit-based marijuana attorney and executive director of Michigan NORML.

"Those people will neither grow it or sell it, they're just going to repackage it if that and take a cut. That's going to drive up the price unnecessarily. That seems like a big business move to ensconce a few large companies into a cake job."

Law enforcement groups, whose opposition killed similar bills last session, view the updated legislation as an improvement over previous versions but continue to have some concerns with increasing access to marijuana, which remains illegal at the federal level.

The Michigan Cannabis Development Association, an industry trade group supporting the bills, applauded Tuesday's committee approval.

"These strong regulations will provide certainty to businesses, patients, caregivers, local communities, law enforcement and many others after years of confusion," said MCDA secretary Willie Rochon.

"For these reasons, we urge the entire Michigan Legislature to pass these safeguards without delay and help provide relief to Michigan patients and clarity to Michigan businesses so everyone plays by the rules."



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LANSING, MI (WHTC) - Legislation establishing “provisioning centers” for selling medical marijuana in Michigan that would be taxed at a total of 14 percent has moved to the House floor. If passed into law, the three-bill package would create separate business tiers of producers or growers, testing facilities, transport companies and retailers, along with mandatory background checks and training for all involved in the industries. The state could also get around 13 million dollars in licensing fees. Medical marijuana has been legal in Michigan since a voter-approved initiative in 2008.



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its basically a bill to end dispensaries once and for all.


you think any of these people will be able to operate a "provisioning center" for long?

Care to explain your thinking here? Who are "these people" you are talking about?

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So it looks like in order to obtain a growers license one must have been a caregiver for at least two years and once given a growers license that person would have to stop being a caregiver and thus drop their patients?


So the state is encouraging it's caregivers to dump patients? I'm confused... 

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A state House panel has approved long-stalled bills to overhaul Michigan’s medical marijuana system.

House Bills 42094210, and 4827 would add protections for dispensaries and non-smokable forms of medical marijuana. But to get the necessary support from Republicans on the committee, the bills now include taxing and tracking cannabis sold through dispensaries.

The legislation also requires marijuana being transported to go through a licensed “secure transporter.”

Critics say those changes will drive up the cost of safe, legally-obtained medical marijuana.

“The illegal markets, the alternative markets, the black markets – whatever you want to call it – of course will be the more attractive market for consumers as a result,” said Jamie Lowell, a prominent marijuana activist who is also founder of  the Third Coast Compassion Center dispensary in Ypsilanti.

State Rep. Jeff Irwin (D-Ann Arbor) was one of two Democrats who voted against the bills in committee due to the changes.

“What we’ve seen in other states is if you treat the medical marijuana like enriched uranium and you try to wrap it in red tape what ends up happening is that more and more people turn to the illegal market,” said Irwin.

But supporters of the legislation say it will ensure medical marijuana is safe and accessible to patients.

“What I think is going to happen, frankly, is that there’ll to be fewer black market… more people will have certainty and confidence in the system as a result,” said Paul Welday, chair of the Michigan Responsibility Coalition, which lobbied for some of the changes.

The legislation now goes to the full state House.



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I wanted to respond to this thread but am too lazy to type my thoughts, so I figured I would just post over a response I made to a person xplaining to me

 why these bills are good and we shouldn't be whining and the savings for patients will be good and these stores will discourage the black market because they can grow big plants. etc etc...(couple edits to remove personal info)



I didn't really want to respond, but I cant just leave this nonsense hanging.  I have a heart and brain which I use and am unable to put the blinders on to see past the bad.
 This will be heavily shortened and truncated due to not wanting to write a 5-10 page response,  so I will highlight and anyone who wishes to speak to me may do so and anyone who does or has spoken to me knows I can rattle on about this for hours. 
Show me one single state that has commercialized marijuana stores that sells cannabis for cheaper than a Cg, home grower or black market source?  That is a rhetorical question btw.
Even in Michigan, at the black market dispensaries that exist, the prices for oil are horrendous, the prices for medibles is sickening and the price of cannabis is typically 25-50% higher than from a Cg or other black market source.  Now add in 14% taxes, mass overhead, regulations and licensing galore, and it just doesn't add up.  Sure,... a 500 plant grow can produce nicely,  but the overhead costs are going to be back breaking even if you can find a municipality that will allow it. Add in the mind blowing oversight of the tracking system,..... the black market will always be lower. Always. 
Will overall prices be lower? I would hope so. 
Anyhow, more to point.
By agreeing to these bills, you have personally stated it is OK to send MORE patients to jail than is currently  happening, you are stripping patients and caregivers of their current protections, you are charging them more money for registration fees  over time, you are agreeing it is ok to basically have a government public database of every pt and cg that goes to a store, you will track their every sale, how much they buy, exactly what they buy, exacty when they buy, where they buy , for how much, with their names and addresses and photos attached and handed it ALL over directly to Michigan law enforcement on a silver platter with 3 million a year from the MMj fund, 5% of all taxes, and funding for the tracking system operation and OVERSIGHT(means more money for police to hire 100+officers; whom I am sure would never arrest patients<sarc>) that will be funded directly by pts and cgs out of the MMj fund whether they use these stores or not to the tune of millions I will assume. And then said thank you Mr officer, may I have another.
That is just the skim off of the top on the REAL WORLD problems being caused by these bills to the people who actually matter, the patients and the patient caregivers.  Ya know, the whole reason for this program. People that don't matter are getting their way.  People that don't matter are getting their businesses. People that don't matter will make money. People that have zero or next to zero compassion and an OBVIOUS lack of empathy are getting what they want.  Not the people that matter. Patients and caregivers are losing protections, losing privacy, losing rights and will pay more money for the privilege.
Current registration fees for the Michigan Medical Marihuana program will not keep up with costs. They will have drained the entire fund and be going into deficit in about 4 years time. Possibly 5 depending on implementation.  Thus registration fees will be raised to fund more police and pay the cost of seed to sale tracking for BUSINESSES who use it. Not just the patients who use their business, ALL patients will pay for their business expense and pay the police to arrest them over lost rights and privileges. 
As far as the Dispensary bill itself,.. I could care less and am actually laughing at how many regulations businesses have begged to be placed on them. Hahahaha... I  can only hope they add a monthly rectal exam to the list of regulation and licensing requirements.  They all deserve it for what they are allowing to happen to patients,.. more arrests and more costs
Thanks business interests. Thanks for working with law enforcement to throw patients in jail.
I  can and will be very specific if asked on these numbers and explain these issues.
I am off to puppy obedience class. Enjoy and think twice about the real ramifications.  I will gladly send the hundreds, and likely thousands,  of patients that will end up in jail because of these bills your personal contact info so you can explain how great these bills and law will be for them.


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its basically a bill to end dispensaries once and for all.


you think any of these people will be able to operate a "provisioning center" for long?

Care to explain your thinking here? Who are "these people" you are talking about?

i mean that anyone who thinks they can run a provisioning center under this bill will find that the numbers do not add up to a profitable end. nor are the protections for the facilities enough to ensure a simple infraction does not lead to jail time for all involved.


this opinion is based on the last revision of this stupid bunny muffin pile of a bill that i read. it might have changed since then, and i know it will change more before it is voted/passed.


heres what happens in arizona if you dont get a license



probably what they will use the database for is finding welfare patients and then taking away welfare because "they done spent their welfare check on the pot".




interesting tidbit

Patients between 18 and 30 bought the most pot than any other age group, Health Director Will Humble said.

as long as i'm looking for dispensary news in other states...


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LANSING, Mich. (NEWSCHANNEL 3) - New legislation in Lansing is trying to add more regulation to medical marijuana in Michigan.

This would create separate business tiers for producers, test facilities, transportation companies and sellers.

The package of bills would also require medical marijuana to be sold at "provisioning centers" with additional taxes.

The bills cleared a House panel Tuesday.

We spoke with the bills' sponsor, Representative Mike Callton, about where the tax money would go.

"You have a tax that will go to what's going to regulate and police this. So, much of the money will go to different municipalities and police units that would police this and the rest would go into the general fund," said Rep. Callton.

Callton says it's important to regulate medical marijuana so that it can be tested and to also provide a safe place to purchase prescribed medicine.

He's worked with community leaders, law enforcement and other stakeholders on the bills, which now head to the full House for consideration.

A vote is expected in the coming weeks.



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