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Texas Medical Program 3rd Draft After All

MedCan Foundation - Sunday, September 06, 2015



Greetings, you are receiving this letter if you have subscribed to our Medcan Herald Newsletter, or if we have received an inquiry from you and/or if you have registered to participate in any of our promotions.

From Dante’s Desk:

Dear Friends, Partners, and Shareholders,

I wanted to take a moment out of my day to give you the latest news from the DPS. The Compassionate Use Program Proposed Administrative Rules have been submitted to the Texas Register  for publication by the Texas Secretary of State. These proposals will appear in about two weeks in the Sept. 18th, 2015 issue and the comment period will expire Oct. 19th, 2015.; hence, we ask that everyone please read these proposed rules and submit your comments, as the DPS does listen to what we say and has made changes to the regulations for the better, based on our comments and suggestions. Furthermore, please understand that this will pretty much be the last opportunity that we will have to speak our mind. Therefore, if we cannot push for change this will be the mandate under which we will have to live whether we like it or not. Surely most of us have heard the incredibly wise old adage that says "do something or get off the pot", so please do something and in regards to the word pot: same word, different meaning and no pun intended. At any rate, be incredibly excited about the fact that we have one more opportunity to make a difference. God bless the DPS and the State of Texas for their altruistic spirit and class 'A' heart. The compassion of the DPS is truly a testament of their sympathy to our cannabis medical efforts and an example of the virtue that will hopefully rub off on our legislators when our new medical cannabis programs make their way onto their desks.

On a still more positive note, please know that Medcan intends to introduce an immediate amendment to SB339 and will demand that our legislators consider it under a special session; particularly, since special sessions are remarkably common and forces legislators that if an amendment is accepted for review by the governor, legislators will need to meet for no more than 30 days. Obviously, our defense and defendable argument will be the basis of the fact that cancer and/or other illnesses as debilitating or life threatening were not taken into consideration on SB339. More to the point, we will present physical and live testament (patients) that have their days numbered and do not have the luxury to wait until 2017 to receive necessary medical treatment to obtain the quality of life they deserve and/or in a lot of cases simply to continue to live. Needless to say, our amendment will continue to be CBD only but will include different and proper THC, CBN or CBG ratios for effective medication.

Therefore, via copy of this communiqué I am requesting from Dr. Henry, Dr. Malamud, Dr. Gans and Dr. McCarty to please help me to identify the proper terminology and definition of patients and illnesses that all of you feel should be included in our amendment. Obviously, I am also requesting help from Mr. Phillip High in the areas of genetic make up, ratios of cannabinoids and all other necessary information to provide effective medication to our Texas patients. Subsequently, from our Medcan office I will connect all the dots, find a sponsor for the amendment and request for our governor to continue to sign his gesture of compassion which he demonstrated when he was happy and proud enough to sign the incomplete bill (SB339) that we received and that conveniently disregarded the needs of our Texas patients with cancer, MS, MD, PTSD, and other life threatening infirmities.

Dear Mr. Khoury, Attorney at Law,

First of all. thank you for providing us with the time to hold a conference call with Dr. McCarty. Your comments and guidelines were both welcome and appreciated. Additionally, please enjoy your time off and travel safe. On a different note, I am working with an attorney/lobbyist out of the Seattle, Washington area on creating an amendment for SB339. Upon your return, I will provide you with a copy for your examination. On a different note, I am going to need you to please refer us to a securities attorney to help us connect the dots and glue our securities documents together. During our previous SEC conversation I detected a whiff of discomfort from you of my wants to start working with the Baker & McKenzies of the world and I couldn't agree with you more. I think you are correct, for right now we need to make sure our stars line up and later we can use the big law firm names for continued credibility for our firm.

Dear Hawaii Group,

Aloha again, and Como Esta? From your friends and partners at Medcan Foundation.

By now you have probably already received my previous email to all of you; therefore, allow me to reiterate some of my previous highlights.  Perhaps we should make plans for me to fly out there to pull the leaves of the plume to be sure the Hawaii Medical Marijuana Program is ripe enough for us to initiate the stabbing of it. Again, please keep in mind that in these early stages of the process our duty is to create a compelling need for the Hawaii Department of Health to understand that your entity is literally the only one that deserves to be licensed. Obviously, we can only do that if from the get go (today) we position ourselves in the marketplace as the premier provider and most reliable source of the best medication or in other words the "Sugarloaf" of cannabis. I will call you  to discuss a date that is convenient for all so that we can spend a couple of days reviewing your completed business plan and to develop strategic and specific marketing techniques to secure the needed market recognition that will allow us to try to obtain for you your operating license.

Dear Mr. Montgomery,

Thank you for your email and telephone conversation requesting clarification on the couple of items necessary for you to submit to your attorney, we are always happy to provide answers to any questions you may have. Additionally, we look forward to meeting Robert (your attorney) to provide him with more detailed information so as to alleviate any concerns he may have; as a matter of fact, as discussed I also need to ask him to provide you with a letter of confidence for your documents that we can in turn make available when we are presenting to your prospective investors. Thank you again,  I look forward to your response and since I am accustomed to always providing deadlines for any of our projects let's try to not let this next week pass without either a personal meeting or a telephone conference at least. I am of the opinion that we should be presenting to your potential investors no later than Sept. 21st, 2015. Keep in mind that we are looking for $1.5 million and that your application will probably call for a minimum of $500,000 in order to grant you a license. Therefore, I feel that I have a moral responsibility to help you put those kinds of monies in your back pocket at our earliest brevity.

Dear Mr. Romero,

I finally had the opportunity to speak with a lawyer concerning the securities question that you had and I have an answer for you. Moreover, I will call you later in the week so we can discuss this.

Puerto Rico

Dear Mr. Gonzales,

I simply would like to say thank you, your help with attending the Puerto Rico medical cannabis hearings has been immense and your briefings are even better. In regards for Medcan to provide funding for our identified entity of course, I would love to continue our conversations and if you could be kind enough to provide me with their contact information naturally I will be delighted to do the follow-up and due diligence. Furthermore, as discussed due to the thank God exorbitant amount of work that we are enjoying in the state of Texas, as agreed I have canceled my visit to PR for this coming weekend and second hearing. Therefore, yes I will take you up on your offer of you attending  and help be the ears and eyes for Medcan. Conclusively, I will call you in a couple of days to let you know about our newspaper ads and a PR telephone line with a Puerto Rico number that will transfer all calls to our office in Texas so that we can respond to every question that  the Puerto Rico community may have and lastly, please let me know if Pedro Ortiz, Attorney at Law, will be able to be a speaker for our seminar. Thanks a million and I look forward to speaking with you.

Dear Dr. McCarty,

It was a definite pleasure meeting with you this past week, your knowledge, experience and expertise in the field of pain management, toxicology and pharmacogenetics,  extractions and testing of products for purity will be invaluable to the cannabis field of medication in Texas. Moreover, the conference meeting with Phillip High (President of High Caliber Analytics and Medcan’s VP of R&D) proved to be time well spent. Particularly, and personally I was most impressed about the fact that the two of you appeared to be speaking the same language and were of the same mind, high quality products with no contaminants for our patients, no exceptions. Thank you for taking the time to meet with me, Henry Levinski, Steve Khoury, Attorney at Law and Phillip High. On a different note, please know that I literally as a coincidence right after our meeting had an opportunity to meet with Mr. Walt Roberts the Assistant Commissioner for Legislative Affairs and External Relations of the Texas Department of Agriculture, and be advised that his message to Medcan and to you is one of unconditional support with the understanding that he is available to us 24/7 not only to ask questions but to help us understand Texas agriculture law in the manner that is applicable to cannabis medication and/or any and all things that we may need in order to produce medication that will benefit the Texas medical cannabis community, patients, doctors and operators. I look forward to continuing our conversations this next week if you are available.

Dear Mr. and Mrs. Foxworth,

Thank you for being able to meet with me this past week, and I want to welcome you to our Medcan family. Your decision to join the Medcan Foundation as well as to become a Medcan Franchisee shows your unwavering commitment to our company and will support immensely our vision for Medcan's future. We look forward to working with you to complete your documents to, in combination with the both of you, acquire regional CBN loans/investment for your operation.

Additionally, we have added your name to our Medcan Shareholder e-mail list.  Our mailing list is for confidential purposes only and it is used to inform and/or update our shareholders of the daily operations of the company and/or special events.  We might at times send you much more information that you would anticipate; consequently, should you find that our correspondence interferes with or disrupts your business communication, please let us know so that we can either remove you from the list and/or send you only specific information outlined by you.

Again, on behalf of our shareholders, directors and especially me personally, thank you for your investment.  If I can be of any assistance to you please do not hesitate to contact me.  You can reach me on my cell at (214) 733-0868 or alternatively via e-mail at dpicazo@msn.com.

Dear Alyssa,

Thank you for purchasing VIP seats for our Medcan seminar Nov. 14th & 15th in Dallas, as well as for setting up the meeting with the President and owners of such a prestigious tobacco company. I look forward to meeting all of you to discuss the field of CBD oils and its revenue potential in the state of Texas. We look to Tuesday, for discussions of how Medcan Foundation might help your prominent tobacco firm achieve its full potential in the Texas marketplace. Thank you and we anticipate an informative meeting this coming Tuesday at 11:30 at Pappadeaux on Lombardy Lane.

Dear Mr. Lambert,

Thank you for the email detailing your 5 years of consulting, testing, researching edibles & extracts, and for sharing with us your desire of opening and operating a Medibles cannabis business and your aspiration of conducting operations of a medical cannabis testing center. Your craving to operate an edibles kitchen in conjunction with a processing lab is a commendable project and involves not only having a processing lab but a commercial kitchen as well; we feel we can help you achieve these goals and will bring the necessary documents to our meeting on Monday, Sept. 7th at noon. I look forward to further discussions to identify, clarify and execute our relationship agreements, thank you in advance see you tomorrow.

Dear Mrs. Smith.

I thoroughly enjoyed our telephone conversation this past week and am sorry we could not arrange a flight to Washington to meet you in person to discuss your involvement with Medcan Foundation. However, we look forward to your visit the last week in September where we be able to meet in person to finalize our relationship. Thank you for your interest in Medcan and I look forward to our meeting later this month.

From Henry’s Desk:

Don’t forget the seminar in Dallas on November 14th and 15th at the Marriott Quorum Hotel in Dallas near LBJ and the Dallas North Tollway. For those travelling from out of town room rates are $89/night plus tax, just click on the following link Book your group rate for Medcan Foundation. We have had numerous students sign up and I don't want you to miss out since this seminar is being held only two weeks prior to the date given by the Texas DPS that the applications to receive licenses in Texas will be available, a topic that we will cover extensively in the seminar.

Enroll Now =>

Additionally, we wanted to remind you to sign up for our seminar in San Juan, Puerto Rico on October 17th & 18th which will be held at the Condado Plaza Hilton in San Juan, Puerto Rico, the room rate is at $125/night plus taxes, just mention you are with the Medcan group; also flights to Puerto Rico booked now through Spirit Airlines are only $468 first class round trip http://www.spirit.com/Default.aspx!

Please continue to follow and friend us on our Facebook page to see daily news and updates at www.facebook.com/med.can.13 and on Instagram under medcanfoundation.

All my best,

Dante Picazo, CHA 

President & CEO

Medcan Foundation, Inc.

214-733-0868 MB

817-528-2475 OF

dpicazo@msn.com

New Questions For The Compassionate Care Program

henry levinski - Wednesday, August 26, 2015

 

Dear Ms. Stevens,

Thank you for speaking to me earlier today regarding the prescription versus recommendation language that still remains present in the CBD/cannabis Texas regulations. Particularly, I appreciated you telling me that it is still being worked on in hopes to get changed for a less incriminating terminology (our doctors will breathe a sigh of relief when that happens). In addition, I put in a call for Mr. Grigsby and he was not in his office but I did leave a voice message for him so that I could also discuss the subject with him in a much more extensive manner.

Another one of the most asked questions we are receiving is concerning security, simply because according to HIPAA regulations cameras cannot be in areas where patients can be recorded. The HIPAA Privacy Rule states that ‘The Privacy Rule protects all "individually identifiable health information" held or transmitted by a covered entity or its business associate, in any form or media, whether electronic, paper, or oral. The Privacy Rule calls this information "protected health information (PHI)."’it then goes on to say that according to the ‘ELECTRONIC CODE OF FEDERAL REGULATIONS  §164.514   Other requirements relating to uses and disclosures of protected health information. (2)(i) The following identifiers of the individual or of relatives, employers, or household members of the individual, are removed: (Q) Full face photographic images and any comparable images.’ However, since the 20:1 CBD under federal law is not viewed as true medication will this still pertain to us or are we exempt from these statues, because at the same time Texas requires us to have video surveillance in the dispensaries at all times?

Moreover, I am forwarding to you the timeline and action plans that the Hawaii Department of Health coincidently sent to our office this morning.  I was wondering if you have anything like this available?  As you can imagine out here the Indians are restless, so a little help from your office will be highly appreciated. As a matter of fact, pretty much people want to know if there is going to be a third draft and/or if we are going to get final regulations and/or a hearing.  Thank you for all your help and I look forward to your reply, otherwise we will just keep looking at the website for additional answers.

All my best,

Henry Levinski

VP of Franchise Operations

Medcan Foundation, Inc.

817.528.2475 MB

henry.levinski@sbcglobal.net

 

 

From: Ruis, Scottina [mailto:Scottina.Ruis@doh.hawaii.gov]
Sent: Sunday, August 23, 2015 6:44 PM
To: henry levinski
Subject: Automatic reply: Questions For The Hawaii Medical Cannabis Dispensary Program

Aloha mai kakou!  Thank you for contacting the Department of Health's Medical Marijuana Registry Program. 

329 Registry Is Our Priority!  Our limited staff are busy working to issue 329 Registration Cards as quickly as possible.  We are currently processing COMPLETE applications received on or after the second week of July 2015.  If you believe your COMPLETE application was submitted to and received by DOH before this date, please contact your physician.  All processed/issued 329 Cards are mailed back to the physician for signature and the physician distributes the signed card to the patient. 

Dispensary Information - will be posted as soon as it is avaialbe.   There is NO NEW INFORMATION at this time.  Please read Act 241 for a more detailed description of the following timeline:

  •          December 11, 2015 (or sooner) DOH will publish notice of dispensary application period
  •          January 4, 2016 - DOH will adopt interim rules AND provide selection process and criteria based on merit
  •          January 11, 2016 - Applications will be made avaliable
  •          January 12, 2016 - Application Period Opens
  •          January 29, 2016 - Application Period Closes
  •          April 15, 2016 - DOH Announces Awardees
  •          July 15, 2016 - and not sooner, dispensaries may begin dispensing medical marijuana between 8 AM - 8 PM and will be closed on Sundays and State/Federal Holidays

If your inquiry is URGENT, please call 733-2162 (you can not leave a message on this number).

We are short staffed this week.  Hopefully, the information above has answered your questions!  If not, someone will respond to you on or after September 1, 2015.

Medcan the Mensch of Marijuana

MedCan Foundation - Monday, August 24, 2015



1) Dear Mr. Steve Khoury, Attorney at Law

Thank you for your quick response regarding Dr. McCarty’s inquiry.  And as an FYI Dr. McCarty was traveling last week; consequently, he will be contacting us this week. Hopefully you guys will be able to connect since I am sure working with such an outstanding attorney as yourself in his corner will make him feel as comfortable as you make us feel. Thank you again for all you do for Medcan.

2) Dear Mr. Cuban, Attorney at Law,

I hope that your surgery recovery continues to go well. Too, as you well know I have been wanting to discuss Medcan with you, particularly Puerto Rico and Dallas. As per your request I am sending you, the dates for our next two seminars: October 17th & 18th at the Condado Plaza Hilton in Puerto Rico and in addition we have scheduled a seminar for November 14th & 15th at the Marriot Quorum in Dallas.  I will call  you to see if you are going to be able to do a presentation, I know that the month of October is extremely busy for your traveling all across the country promoting your cause. Again, continue to get better and please know that we miss you, enjoying our success is not the same without our true friends.

3) Dear Eric, Lindsey, and Scott.

Thank you and we are flattered by your decision to join the Medcan family; we are looking forward to benefit from your groups combined skills in the areas of marketing, distribution, and operations to create an outstanding medical cannabis operation under the Medcan brand. Moreover, as you well know an organization is only as good as its people, therefore, having relationships with people like you with tons energy, professionalism and dedication, (which is lacking in so many these days), on our team is exciting to say the least. In addition, I will have your investment documents ready as soon as you let us know what name and address you want listed on the them, this can be yours personally or your LLC, subsequently let us know when and where you would like to meet. Again, we are eager to begin a long and profitable future with you all; thank you and I look forward to your response.

4) Dear Mr. and Mrs. Ginn,

            Mr. & Mrs. Nguyen,

            Mr. Kory Anderson,

            Mr. Jimmy Breeling,

            Dr. Wolff,

            Ms. April Smith,

Thank you for taking the time to meet/speak with me this week, the conversations were both long and productive, and the questions were intelligent and necessary. I can’t thank you enough, to watch that so many quality individuals from all walks of life that are interested in joining the medical cannabis industry certainly feels encouraging. However, I do want to inform each and every one of you that you need to give this some a serious thought before taking the plunge into this new venture, and if after due consideration you still want to proceed, please call either Henry or myself, we are ready to work on each and every one of your projects as soon as you give us a call. Please do remember that should you decide to try to obtain a license time is of the essence and the application process will be here before you know it, I look forward to your responses.

5) Dear Dr. Malamud,

I wanted to let you know that your investment documents were sent to your financial advisor for his review and your offer letter for joining the Medcan Advisory Board was sent to you directly. Please let us know when you will be available again to finalize these documents; however, I am going to be in Puerto Rico from August 27th through the 31st to participate in their public hearings for their medical cannabis program other than am available anytime to meet with you. As a matter of fact I have a meeting with your son in Austin this coming Tuesday at three pm. Additionally, I  look forward to your participation in the Puerto Rico seminar as well as on our Advisory Board, I am sure the knowledge you will be able to share with us will be invaluable in our future endeavors. Again, thank you for your investment in Medcan and I look forward to meeting with you sometime soon.

6) Dear Mr. Montgomery,

Thank you for your email concerning the data necessary to continue completing your documents for your investors. As mentioned, as soon as you determine a name for your LLP (and the address you want listed with it) we should be about ready to finalize and deliver them to you for your final approval. Furthermore, we are looking forward to begin obtaining investments for your medical cannabis operation as well as commencing the process to try to obtain your license.

7) Dear Bishop Family,

It was sure great meeting with you again, and the following is a recap of our discussions. You determined that your LLC will be named the B3 Group and your LLP will be the B3 Wellness Group. Moreover, you decided that you would be raising $1,000,000 with units valued at $5,000; you also determined that the ownership would be 1% for the Corporation,  10% will be treated as a  Preferred return for your Investors, 5% for the LLC/General Partner, and the remaining 84% will be use as a dividend for your investment community. Furthermore, you will purchase your first unit and own an additional 10 units as sweat equity and to account for your original equity; also, management salary will be determined at a later date. Additionally, I gave you your documents to fill in the highlighted sections, of course Henry and I are available for clarification of any of these items, lastly, we decided to meet again in 15 days. At that point, we should be pretty much done with the documents and will be about ready to begin making presentations to potential investors to obtain funding for your company. Thank you for meeting with me and I greatly look forward to our next meeting in 15 days.

8) Dear Alika, Aloha

Thank you for your investment in Medcan and please accept this note as a follow up since I wanted to be sure you received all the documents you requested for assessment of your legal counsel. Additionally, we are nearing completion of the documents for your corporation and should have those ready for your review shortly; as a matter of fact Phillip High just sent us new cultivation costs and yields which we are incorporating into your business plan. Most importantly, we are more than excited to be working with such a dedicated group as you; your due diligence visiting all the medical cannabis states in preparation for Hawaii’s entry into the medical cannabis market is more than commendable.  I salute your efforts and look forward to speaking with you soon. Conclusively, please see the questions that our conversations with Scotty Ruis have generated.

9) Dear Mr. and Mrs. Schulte,

It was great hearing from you again; it is exciting to know we have such committed people as you in our Medcan family. In addition, please let us know when you get your LLC and LLP set up so we can walk you through each step to finish completing your documents. At that point we can begin finding investors to help fund your business venture. Please remember if you have any questions, we are only a phone call away. Thank you and we look forward to speaking with you again soon.

10) Dear Mr. Romero,

It was great hearing from you and of course I can meet with you this Monday at Goodson’s Cafe in Tomball at 2pm. I look forward to discussing the licensing procedures for Texas, with you and your family in addition our we will discuss a business plan and the investment/business opportunities Medcan has to offer. Thank you again and I will see you Monday.

 

11) Dear Shadiff & Angel,

As usual, communicating with the both of you is always a better than great experience and of course I’m eager to spend quality time with you and making my visit mutually beneficial for our endeavors. Additionally, if the hearings are in the A.M. no worries, I will take a cab and either go directly to the hearings location and/or I will make my way to the hotel and contact you pretty quick. At the risk of being redundant, the following is my travel/itinerary info: I will be arriving on Spirit Airlines Flight 705 at 1:18 pm Aug. 27th, and leaving on Spirit Airlines Flight 710 at 4:15 pm on Aug. 31st. I will be staying at the Condado Plaza Hilton, 999 Ashford Ave. San Juan, PR 00907.  

On a different note, based on the response that I obtained out of the office of Dr. Ana Rius I think we have a tremendous amount of work to take care of; needless to say, that’s what the hearings are for. Hopefully the turnout is good so that we are able to make a difference. At any rate, I look forward to spending time with the both of you see you soon.

Enclosed please find answers to the questions posed regarding the proposed regulations for the use of marihuana for medical purposes.

Lcda.  Mayra Maldonado Colón

Directora

Oficina de Asesores Legales

787-765-2929 Exts. 3501/3502

mayramaldonado2@salud.gov.pr

(Please see attachment for these questions and answers)

 

12) Dear Floyd,

I just wanted to let you know I will be in Tomball Monday meeting Mr. Romero from 2-3pm at Goodman’s Café. So, if you happen to have any of your documents ready or would like to meet to discuss any questions you may have I will be available to meet with you; if not, no worries I simply wanted to let you know I will be in your area and am available to help get your documents completed so we can begin to make presentations to your potential investors as soon as possible. Thank you and I look forward to your response.

All my best,

Dante Picazo, CHA 

President & CEO

Medcan Foundation, Inc.

214-733-0868 MB

817-528-2475 OF

dpicazo@msn.com

Questions For The Hawaii Medical Cannabis Dispensary Program

henry levinski - Monday, August 24, 2015


Dear Ms. Ruis,

Please allow me to in black and white introduce myself, my name is Henry Levinski and I am the VP of Operations for Medcan Foundation; we are a group of professionals consisting of doctors, lawyers, chemists, biologists, and business people that lobby’s for, educates the public on, and provides consulting services to individuals as well as several States on medical cannabis. Additionally, thank you for responding to my calls, but most importantly thank you for your courtesy and attention. On a different note, please know that after carefully scrutinizing and reviewing the public information that was being disseminated out of your office regarding Hawaii’s medical cannabis program, in no order of importance are the following questions. Perhaps you have already given consideration to these matters and perhaps you could be so kind as to reply to my questions; otherwise I am sure that I can find my answers on your next rough draft once it is published on your website. Conclusively, I look forward to your response.

1) Taxes

Will there be sales tax added to the medicine and if so, at what rate?

2) Added Dispensaries

In the regulations it states thatNotwithstanding subsection (d), the department shall determine whether, based on the qualifying patient need, additional dispensary licenses shall be offered to qualified applicants in the State after October 1, 2017; provided that the department shall make available not more than one license per five hundred qualifying patients residing in any single county”

If this occurs will dispensary owners be allowed to have dispensaries in more than one county/island or must owners of current dispensaries remain in their respective counties only?

3) Computerized Tracking System

In the regulations it states thatThe department shall establish, maintain, and control a computer software tracking system that shall have real time, twenty-four hour access to the data of all dispensaries”

Has any determination been made on which system the state will be using in order to be sure the dispensary system is compatible?

4) Edibles

In the regulations it states thatTypes of manufactured marijuana products only includes lozenges, pills, tinctures, creams and oils”

Does this mean that no power bars, candies, sodas, baked goods, etc. can be manufactured?

5) Use of Butane

In the regulations it states thatNo qualifying patient or primary caregiver shall use butane to extract tetrahydrocannabinol from marijuana plants”.

But can commercial butane be used in a production facility to extract THC and CBD from the plants, maintaining of course all the necessary safety precautions as well as removal of the solvent prior to sale to a patient?

6) Zoning

In the regulations it states thatZoning in the counties of Hawaii, Maui, and Kauai means the establishment of districts of such number, shape, and area, and the adoption of regulations for each district to carry out the purposes of this section”

Have these districts already been established?

7) Growing First Crop

How will we be allowed to imports seeds to begin the grow operations? Will we be allowed a one-time exemption to bring seeds in from say Colorado for the first planting or, as most other states have done, is it a ‘don’t ask don’t tell’ for the initial planting where we only record the number of plants growing for the state to inventory and then follow?

8) Patient Primary Care Center

Will patients be allowed to use any dispensary to obtain their medicine, or must they register to use a certain one? As we understand it the patients must register with the state of Hawaii and have a registered doctor’s recommendation prior to going to a dispensary. Once in the dispensary they can receive their medication after their recommendation is verified with the state (a computerized database we assume) to insure they are not being over medicated, or their recommendation has not already been filled elsewhere. However, if the dispensary knew in advance the number of patients they would be able to assure they have an adequate inventory to fill all orders. Otherwise, depending on the number of dispensaries in a given market, it could be possible to exceed the inventory a dispensary has on hand if an exceptional amount of patients walk in on the same day without notice. This could be avoided if the dispensaries knew of the approximate number of patients in their respective markets, in order for them to make an educated guess on necessary inventory levels. Furthermore, we feel that patients should choose their dispensary/caregiver and not be able to change dispensaries for a 3 month period. Therefore, allowing the dispensaries/cultivation sites to plant/grow the appropriate amount of medication to fulfill their patients’ needs.

9) Laboratory standards and testing; laboratory certification.

Has the department established the standards for content, contamination, and consistency yet and have they determined where and how many state certified labs will be in each county?

Can a dispensary establish its own lab to be certified by the state to do its own testing as long as the tests are submitted to the state for verification?

10) Applications

Will the state post a listing of the number of applications received by county so we can determine in which county it would be most advantageous to submit an application?

11) Public Hearings

Will there be any hearings for the public to provide input and/or to ask questions after you publish your regulations on your website but prior to the regulations being set in stone?

All my best,

Henry Levinski

VP of Operations

Medcan Foundation, Inc.

817/528-2475 MB

henry.levinski@sbcglobal.net

Comments on the New DPS Regulations

MedCan Foundation - Friday, August 14, 2015



Dear Mr. Grigsby,

The following are questions based on the latest regulations issued by the DPS, we are grateful for the opportunity to provide input into the formulation of the regulations and wish to acknowledge the speed in which the DPS is developing these regulations.

1) “The inventory control system shall be designed to promptly identify a discrepancy and interact with the department’s centralized registry system. “

Has the department decided on which system they will be utilizing so we can insure our system will interact properly?

2) “Licensees endorsed as processors must test all processed products for the levels of tetrahydrocannabinol and cannabidiol, and for residual solvents, pesticides, fungicides, fertilizers, mold, and heavy metals”

Has the department established levels of residual solvents and contaminants  that are acceptable?

3)”Description of the applicant’s proposed testing laboratory, and cannabis testing protocols and methods.”

Does this mean we can have our own testing facilities and do not have to go through a state certified lab as long as the testing is shown to be accurate and conforms to the state requirements?

4)” Prescriptions for low-THC cannabis must be submitted electronically to the Compassionate Use Registry in compliance with Texas Occupations Code Section 169.003, and may be confirmed and dispensed based on the electronic prescription record in accordance with Section 487.107 of the Act”

Prescriptions is still being used in the language, will this be amended to a recommendation?

5) “The dispensed product may contain no more than 0.5 percent by weight of tetrahydrocannabinols and not less than 10 percent by weight of cannabidiol.”

Does this mean that only the finished product will need to conform to the .5% THC and 10% CBD by weight restrictions and not the actual plants themselves? This will definitely make it easier to obtain plants to grow, while the processing will be more costly and more extensive in order to produce a viable end product. However, this is a much more workable solution to the problem of 20:1 CBD to THC.

Does this mean we can make product from different plant strains even if plant has more THC, as long as it doesn't end up in the end product?

All my best,

Henry Levinski

VP of Franchise Operations

Medcan Foundation, Inc.

817.528.2475 MB

henry.levinski@sbcglobal.net


DPS Regulations

MedCan Foundation - Wednesday, August 05, 2015
Texas Department of Public Safety 


Regulatory Services Division 


 


Compassionate Use / Low-THC Cannabis Program Administrative Rules 


 


Proposed: 37 Tex. Admin. Code 1, Chap.12 


 


Subchapter A General Provisions 


Subchapter B Application and Renewal 


Subchapter C Compliance and Enforcement 


Subchapter D Security 


Subchapter E Compassionate Use Registry 


Subchapter F Special Conditions for Military Service Members and Spouses 


 


Subchapter A General Provisions 


 


12.01 Definitions 


 


The terms in this section have the following meanings when used in this chapter unless the context clearly 
indicates otherwise: 


 


(1) Act – Texas Health and Safety Code Chapter 487. 


 


(2) Application – Includes an original application for a registration or license, or an application 
to renew a registration or license, issued under the Act. 


 


(3) Department – The Texas Department of Public Safety. 


 


(4) Director – An individual, including any owner, involved in decisions governing the 
operation or daily functions of the licensed dispensing organization. 


 


(5) Dispensing Organization – A licensed organization with one or more endorsements to 
perform one or more of the three regulated functions: cultivation, processing, or 
dispensing of low-THC cannabis. 


 


(6) Employee – An individual engaged by or contracting with a licensee to assist with any 
regulated function, whether or not compensated by salary or wage. 


 


(7) Endorsement – the qualified license to cultivate, process, or dispense low-THC cannabis. 


 


(8) Licensee – An organization licensed under the Act. 


 


(9) Manager – An individual employed or otherwise engaged by a dispensing organization to 
supervise others in any portion of the regulated functions and processes. 


 


(10) Product – Any form of low-THC cannabis that is cultivated, handled, transported, 
processed, or dispensed, or raw materials used in or by-products created by the 
production or cultivation of low-THC cannabis. 






 


(11) Registrant – An individual registered with the department as a director, manager, or 
employee of a licensee; this term does not include a physician registered as a prescriber of 
low-THC cannabis. 


 


(12) Regulated premises – The physical areas under the control of a licensee, in which low-THC 
cannabis is cultivated, handled, transported, processed, or dispensed. 


 


(13) SOAH – State Office of Administrative Hearings 


 


12.02 Requirements and Standards 


 


(a) Licensees may only provide the specific regulated service for which they are licensed and 
endorsed, i.e., cultivation, processing, dispensing, or a combination of these services. 


 


(b) Endorsement as a cultivator authorizes the planting, propagating, growing, harvesting, labeling, 
storing, packaging, or transporting of cannabis sativa plants intended for use in the processing of 
low-THC cannabis, including the raw materials used in or by-products created by the cultivation of 
low-THC cannabis, or drug paraphernalia used in the cultivation of low-THC cannabis, for the 
purposes of the Act. 


 


(c) Endorsement as a processor authorizes the acquisition and storage of cannabis sativa plants 
intended for use in the processing of low-THC cannabis, and the production and transportation of 
low-THC cannabis, the raw materials used in or by-products created by the processing of low-THC 
cannabis, or drug paraphernalia used in the processing of low-THC cannabis, for the purposes of 
the Act. 


 


(d) Endorsement as a dispenser authorizes the acquisition, storing, and dispensing of low-THC 
cannabis in a processed form, for the purposes of the Act. 


 


(e) Licensees may only provide regulated services at the department approved locations. Any change 
in location must be approved by the department prior to operation in a regulated capacity. 


 


(f) Licensees shall promptly notify the department upon a registrant’s termination of employment. 


 


(g) All licensees shall display in a conspicuous location in the principal place of business and in any 
branch location a copy of the department issued license and information on how to submit a 
complaint to the department. 


 


(h) Licensees must establish and implement a drug-free workplace policy consistent with the Texas 
Workforce Commission's "Drug-Free Workplace Policy,” and shall maintain in each registrant’s file 
a copy of the company's policy signed or otherwise acknowledged by the registrant. 


(i) Licensees and registrants must cooperate fully with any inspection or investigation conducted by 
the department, including but not limited to the provision of any laboratory test results, employee 
records, or inventory and destruction records, and the compliance with any subpoena issued by 
the department. 






(j) Licensees and registrants may not cultivate, process, or dispense low-THC cannabis if the 
respective license or registration has expired, or has been suspended or revoked. 


 


(k) Licensees and registrants may not dispense to an individual other than a qualified patient or a 
qualified patient’s legal representative. 


 


(l) Licensees and registrants may not permit or fail to prevent the diversion of any controlled 
substance. 


 


(m) Those registered with the department as directors, managers, or employees of a licensed 
dispensing organization may only perform services regulated under the Act for the licensee with 
whom they are registered. 


(n) If arrested, charged, or indicted for a criminal offense above the level of Class C misdemeanor, a 
registrant shall within seventy-two (72) hours notify the employing licensee, and the employer 
when notified by the employee or otherwise informed shall notify the department in writing 
(including by email) within seventy-two (72) hours of notification. The notification shall include the 
name of the arresting agency, the offense, court, and cause number of the charge or indictment. 
The registrant and licensee must supplement their respective notifications as further information 
becomes available. 


(o) Registrants must carry on their person or otherwise display their department issued registration 
card while performing any services regulated under the Act involving contact with or exposure to 
patients or the general public, including the dispensing of low-THC cannabis to patients and the 
transportation of low-THC cannabis on behalf of a licensee. 


 


(p) Licensees may only advertise those services for which they hold an endorsement, i.e., cultivation, 
processing, or dispensing. All advertisements must contain the license number. 


 


(q) Licensees must comply with all applicable local, state and federal regulations relating to air and 
environmental quality, fire safety, and noise or other nuisances. 


 


(r) Destruction of any waste products related to the cultivation or processing of low-THC cannabis 
must involve the rendering of the product indistinguishable from other non-cannabis related plant 
material. The waste product must be stored in a locked container prior to disposal. 


 


(s) Licensees must use applicable best practices to limit contamination of the product including but 
not limited to residual solvents, metals, mold, fungus, bacterial diseases, rot, pests, pesticides, 
mildew, and any other contaminant identified as posing potential harm. The licensee shall 
maintain quality history records showing any laboratory testing results conducted on the licensee’s 
products. 


 


(t) Licensees must have a plan for establishing a recall of their products in the event a product is 
shown by testing or other means to be, or potentially to be, defective or have a reasonable 
probability that their use or exposure to will cause serious adverse health consequences. At a 
minimum, the plan should include the method of identification of the products involved; 
notification to the processing or dispensing organization or others to whom the products were sold 
or otherwise distributed; and how the products will be disposed of if returned to or retrieved by 
the licensee. 






 


 


12.03 Criminal History Disqualifiers 


 


(a) Registration as a director, manager or employee of a licensed dispensing organization provides 
these individuals access to sensitive medical information, drugs, and the equipment and raw 
materials needed to produce drugs. Registration provides those predisposed to commit fraud, 
theft and drug related crimes with greater opportunities to engage in such conduct and escape 
detection or prosecution. Therefore, the department has determined that offenses of the 
following types directly relate to the duties and responsibilities of those who are registered under 
the Act. Such offenses include crimes under the laws of another state or the United States, if the 
offense contains elements that are substantially similar to the elements of an offense under the 
laws of this state. Such offenses also include those "aggravated" or otherwise enhanced versions 
of the listed offenses. 


 


(b) The list of offenses in this subsection is intended to provide guidance only and is not exhaustive of 
either the offenses that may relate to the regulated occupation or of those independently 
disqualifying under Texas Occupations Code, Section 53.021(a)(2) - (4). The listed offenses are 
general categories that include all specific offenses within the corresponding chapter of the Texas 
Penal Code and Texas Health and Safety Code. In addition, after due consideration of the 
circumstances of the criminal act and its relationship to the position of trust involved in the 
particular licensed occupation, the department may find that an offense not described below also 
renders an individual unfit to hold a registration. In particular, an offense that is committed in 
one's capacity as a registrant under the Act, or an offense that is facilitated by one's registration 
under the Act, will be considered related to the regulated occupation and may render the 
individual unfit to hold the registration. 


 


(1) Bribery--Any offense under the Texas Penal Code, Chapter 36. 


 


(2) Burglary and criminal trespass--Any offense under the Texas Penal Code, Chapter 30. 


 


(3) Fraud--Any offense under the Texas Penal Code, Chapter 32. 


 


(4) Perjury--Any offense under the Texas Penal Code, Chapter 37. 


 


(5) Robbery--Any offense under the Texas Penal Code, Chapter 29. 


 


(6) Theft--Any offense under the Texas Penal Code, Chapter 31. 


 


(7) Organized Crime, Texas Penal Code, Chapter 71. 


 


(8) Any offense under Texas Health and Safety Code, Chapters 481, 482, or 483. 


 


(9) In addition: 


 


(A) An attempt to commit a crime listed in this subsection; 


 


(B) Aiding and abetting in the commission of a crime listed in this subsection; and 


 






(C) Being an accessory before or after the fact to a crime listed in this subsection. 


 


(c) A felony conviction for an offense listed in subsection (b) of this section is disqualifying for ten (10) 
years from the date of the conviction. 


 


(d) A Class A or B misdemeanor conviction for an offense listed in subsection (b) of this section is 
disqualifying for five (5) years from the date of conviction. 


 


(e) Conviction for a felony or Class A offense that does not relate to the occupation for which 
registration is sought is disqualifying for five (5) years from the date of commission, pursuant to 
Texas Occupations Code, Section 53.021(a)(2). 


 


(f) Independently of whether the offense is otherwise described or listed in subsection (b) of this 
section, a conviction for an offense listed in Texas Code of Criminal Procedure, Article 42.12 
Section 3g, or that is a sexually violent offense as defined by Texas Code of Criminal Procedure, 
Article 62.001, is permanently disqualifying subject to the requirements of Texas Occupations 
Code, Chapter 53. 


 


(g) Any unlisted offense that is substantially similar in elements to an offense listed in subsection (b) 
of this section is disqualifying in the same manner as the corresponding listed offense. 


 


(h) A pending Class B misdemeanor charged by information for an offense listed in subsection (b) of 
this section is grounds for suspension. 


 


(i) Any pending Class A misdemeanor charged by information or pending felony charged by 
indictment is grounds for suspension. 


 


(j) In determining the fitness to perform the duties and discharge the responsibilities of the regulated 
occupation of an individual against whom disqualifying charges have been filed or who has been 
convicted of a disqualifying offense, the department may consider evidence of the following: 


 


(1) The extent and nature of the individual's past criminal activity; 


 


(2) The age of the individual when the crime was committed; 


 


(3) The amount of time that has elapsed since the individual's last criminal activity; 


 


(4) The conduct and work activity of the individual before and after the criminal activity; 


 


(5) Evidence of the individual's rehabilitation or rehabilitative effort while incarcerated or 
after release; 


 


(6) The date the individual will be eligible; and 


 


(7) Any other evidence of the individual's fitness, including letters of recommendation from: 


 


(A) Prosecutors or law enforcement and correctional officers who prosecuted, arrested, or 
had custodial responsibility for the individual; or 


 






(B) The sheriff or chief of police in the community where the individual resides. 


 


(k) In addition to the documentation listed in subsection (j) of this section, the applicant or registrant 
shall, in conjunction with any request for hearing on a criminal history based denial, suspension or 
revocation, furnish proof in the form required by the department that the individual has: 


 


(1) Maintained a record of steady employment; 


 


(2) Supported the individual’s dependents; 


 


(3) Maintained a record of good conduct; and 


 


(4) Paid all outstanding court costs, supervision fees, fines and restitution ordered in any 
criminal case in which the individual has been charged or convicted. 


 


(l) The information listed in subsection (j) and subsection (k) of this section must be submitted in 
conjunction with the request for hearing, following notification of the proposed action and prior to 
the deadline for submission of the request for hearing. 


 


12.04 Records 


 


(a) Records required under the Act or this chapter must be maintained and made available for 
inspection or copying for a period of two (2) years. Records may be maintained in digital form 
so long as a hard copy may be produced upon request of department personnel. 


 


(b) The following records must be maintained by all licensees for two (2) years, unless otherwise 
provided or not applicable to the type of regulated service for which the licensee is authorized: 


 


(1) All application materials submitted to the department or relied on in making any 
representation or affirmation in conjunction with the application process; 


 


(2) Purchase, sale, and inventory records, including records of destruction; 


 


(3) Shipping invoices, log books, records of duty status if applicable, delivery records and 
manifests reflecting the recipient’s acknowledgment and establishing the chain of custody, 
relating to the transportation of: 


 


(A) Low-THC cannabis and any cannabis sativa plants intended for use in the 
processing of low-THC cannabis; 


 


(B) Raw materials used in or by-products created by the production or cultivation of 
low-THC cannabis; or 


 


(C) Drug paraphernalia used in the production, cultivation or delivery of low-THC 
cannabis; 


 


(4) Security records, including building access and visitor logs, and video recordings; 


 


(5) The licensee’s drug-free workplace policy; 






 


(6) Records on all registered directors, managers, and employees, including a color 
photograph of the individual, a copy of the registration issued by the department, records 
reflecting the individual’s position, assigned duties, and work schedule, and a copy of the 
company's drug-free workplace policy signed by the individual. These records must be 
maintained for two years from the date employment is terminated. 


 


12.05 Address on File 


 


(a) All licensees, registrants, or applicants shall at all times maintain on file with the department a 
current electronic mail address, physical mailing address, and the physical address of each location 
at which low-THC cannabis is cultivated, processed, or dispensed. 


 


(b) All licensees or registrants shall notify the department of any change to their addresses on file in 
the manner provided on the department’s website prior to the effective date of the change of 
address. 


 


12.06 Notice 


 


(a) The department is entitled to rely on the physical mailing address and the electronic mail address 
currently on file for all purposes relating to notification. The failure to maintain current addresses 
with the department is not a defense to any action based on the licensee’s, registrant’s, or 
applicant's failure to respond. 


 


(b) Service of notice is complete and receipt is presumed upon the date the notice is sent, if sent 
before 5:00 p.m. by facsimile transmission or electronic mail, or three (3) days following the date 
sent, if notice is sent by regular United States mail or certified mail, return receipt requested. 


 


(c) Unless otherwise specified by the Act, notifications by the department may be by facsimile 
transmission, electronic mail, regular U.S. mail, certified mail, return receipt requested, or hand-
delivery. 


 


12.07 Testing, Production, and Packaging 


 


(a) Licensees endorsed as cultivators must comply with all applicable provisions of the Texas 
Agriculture Code and the Texas Department of Agriculture’s administrative rules. 


 


(b) Licensees endorsed as processors must test all processed products for the levels of 
tetrahydrocannabinol and cannabidiol, and for residual solvents, pesticides, fungicides, fertilizers, 
mold, and heavy metals, in accordance with applicable provisions of the Texas Agriculture Code 
and Texas Department of Agriculture’s administrative rules, and CFR Title 16 Part 1107. 


 


(c) The following requirements only apply to licensees endorsed as dispensers: 


 


(1) All final packaging for patient consumption must be in child-resistant packaging designed 
or constructed to be significantly difficult for children under five years of age to open and 
not difficult for normal adults to use properly as defined by the most current version of the 
CFR Title 16 Part 1700 and Title 40 Part 157.2 and ASTM D3475-15, Standard Classification 
of Child-Resistant Packages, ASTM International, West Conshohocken, PA, 2015. 






 


(2) All final packaging labels must include the following: 


 


 (A) Physician’s name; 


 (B) Patient’s name; 


(C) Dispensing organization’s name, state license number, telephone number, and 
mailing address; 


(D) Dosage prescribed and means of administration; 


(E) Date the dispensing organization packaged the contents; 


(F) Batch number, sequential serial number, and bar code when used, to identify the 
batch associated with manufacturing and processing; 


(G) Potency of the low-THC cannabis contained in the package, including the levels of 
tetrahydrocannabinol and cannabidiol; 


(H) Statement that the product has been tested for contaminants and there were no 
adverse findings, and the date of testing in accordance with CFR Title 16 Part 1107; 
and 


(I) Statement that the product is for medical use only and is intended for the 
exclusive use of the patient to whom it is prescribed. This statement should be in 
bold print. 


(3) The dispensed product may contain no more than 0.5 percent by weight of 
tetrahydrocannabinols and not less than 10 percent by weight of cannabidiol. 


12.08 Inventory Control System 


 


(a) A licensed dispensing organization shall use a perpetual inventory control system that identifies 
and tracks the licensee’s stock of low-THC cannabis from the time it is propagated from seed or 
cutting to the time it is delivered to either another licensee or a qualifying patient or caregiver. 


 


(b) The inventory control system shall be capable of tracking low-THC cannabis from a qualified 
patient back to the source of the low-THC cannabis in the event of a serious adverse event. 


 


(c) The inventory control system shall be designed to promptly identify a discrepancy and interact 
with the department’s centralized registry system. 


 


(d) Upon receipt of raw material for cultivation, a licensee shall record in the inventory control 
system: 


 


 (1) The date delivered; and 


 


(2) The number of clones or seeds delivered or the weight of the seeds for each variety in the 
shipment. 






 


(e) For each plant, including any clippings to be used for propagation, a licensee shall: 


 


 (1) Create a unique identifier; 


 


 (2) Assign a batch number; 


 


 (3) Enter appropriate plant identifying information into the inventory control system; 


 


(4) Create an indelible and tamper resistant tag made of temperature and moisture resistance 
material, with a unique identifier and batch number; 


 


(5) Securely attach the tag to a container in which a plant is grown until a plant is large 
enough to securely hold a tag; 


 


(f) Upon curing or drying of each batch, a licensee shall weigh low-THC cannabis to update inventory 
control for the batch. 


 


(g) At least monthly, a licensee shall conduct a physical inventory of the stock and compare the 
physical inventory of stock with inventory control system data. 


 


(h) If a licensee discerns a discrepancy between the inventory of stock and inventory control system 
data outside of normal weight loss due to moisture loss and handling, a licensee shall commence 
an audit of the discrepancy. 


 


(i) Within fifteen (15) business days of discovering a discrepancy, the licensee shall: 


 


 (1) Complete an audit; 


 


 (2) Amend the licensee’s standard operating procedures, if necessary; and 


 


 (3) Send an audit report to the department. 


 


(j) If a licensee finds evidence of theft or diversion, the licensee shall immediately report the theft or 
diversion to the department. 


 


Subchapter B Application and Renewal 


 


12.11 Application for License 


 


(a) Application for license as a dispensing organization may only be made through the department's 
online application process. 


 


(b) A complete application must include the following, in a manner determined by the department: 


 


(1) The applicant’s selection of the specific function to be authorized by endorsement, either 
cultivation, processing, or dispensing, or a combination of the three functions; 


 



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(2) Proof of ownership and current status in the manner required by the department, 
including but not limited to a current Certificate of Existence or Certificate of Authority 
from the Texas Office of the Secretary of State and a Certificate of Good Standing from the 
Texas Comptroller of Public Accounts; 


 


(3) All fees required under Section 12.14 of this title (relating to Application Fees and Method 
of Payment); 


 


(4) Names, dates of birth, addresses, and all other information required by the department 
necessary to verify the identity of all directors, managers, and employees of the applicant; 


 


(5) Criminal history disclosure of all convictions and deferred adjudications for each individual 
listed on the application as directors, managers, and employees of the dispensing 
organization; 


 


(6) Complete registration applications for all directors, managers and employees submitted in 
the manner approved by the department and in compliance with Section 12.12 of this title 
(relating to Application for Registration); 


 


(7) Evidence of the following qualifications as determined at the time of the required onsite 
inspection, in the manner determined by the department and as appropriate to the 
specific endorsement sought: 


 


(A) The technical and technological ability to cultivate, process, and/or dispense low-
THC cannabis, evidenced by experience in the areas of: 


 


(i) Cultivation, analytical organic chemistry and micro-biology; and analytical 
laboratory methods (if applying as cultivator or processor); 


 


(ii) Patient education and interaction, and the handling of confidential 
information including familiarity with the requirements of the Health 
Insurance Portability and Accountability Act (HIPAA) (if applying as 
dispenser); 


 


(B) The ability to secure the premises, resources, and personnel necessary to 
operate as a dispensing organization, evidenced by: 


 


(i) Descriptions of all properties applicant proposes to utilize to cultivate, 
process, or dispense low-THC cannabis, including ownership information 
for the properties; 


 


(ii) Descriptions of the methods proposed for the cultivation, processing, or 
dispensing of low-THC cannabis; 


 


(iii) Descriptions of the types and locations of worker safety equipment and 
plans and procedures for complying with federal Occupational Safety and 
Health Administration (OSHA) regulations for workplace safety; 


 


(iv) A list of current and proposed staff, including, position, duties and 



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responsibilities, and an organizational chart illustrating the supervisory 
structure of the organization; 


 


(v) Description of the applicant’s proposed testing laboratory, and cannabis 
testing protocols and methods, if applicable; 


 


(vi) A proposal establishing the ability to secure premises reasonably located 
to allow patient access through existing infrastructure; 


 


(C) The ability to maintain accountability of all raw materials, finished products, and 
any byproducts to prevent diversion or unlawful access to or possession of these 
substances, evidenced by the following: 


 


(i) Floor plan of each facility or proposed floor plans for proposed facilities, 
including the following: 


 


1. Locking options for all means of ingress and egress; 


2. Alarm systems; 


3. Video surveillance; 


4. Name, layout and function of each room; 


5. Storage, including safes and vaults; 


 


(ii) Diversion prevention procedures; 


 


(iii) Emergency management plan; 


 


(iv) System for tracking low-THC source plant material throughout cultivation, 
processing, or dispensing, as applicable; 


 


(v) Inventory control system for low-THC cannabis as required by Section 
12.08 of this title (relating to Inventory Control System); 


 


(vi) Policies and procedures for recordkeeping; 


 


(vii) Electronic vehicle tracking systems; 


 


(viii) Vehicle security systems; 


 


(ix) Methods of screening and monitoring employees; 


 


(x) Personnel qualifications and experience with chain of custody or other 
tracking mechanisms; 


 


(xi) Waste disposal plan; 


 


(xii) Recall procedures for any product that has a reasonable probability of 
causing adverse health consequences based on a testing result, patient 
reaction, or other reason; and 


 



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(xiii) Access to specialized resources or expertise regarding data collection, 
security, and tracking; 


 


(D) Infrastructure reasonably located to dispense low-THC cannabis to registered 
patients, evidenced by the following: 


 


(i) Map showing the location of the applicant’s proposed dispensing facilities 
with streets; property lines; buildings; parking areas; outdoor areas, if 
applicable; fences; security features; fire hydrants, if applicable; and 
access to water and sanitation systems; 


 


(ii) Floor plan of the actual or proposed building or buildings where dispensing 
activities will occur showing areas designed to protect patient privacy and 
areas designed for retail sales, with proposed hours of operation; 


 


(iii) HIPAA compliant computer network utilized by all facilities; 


 


(iv) Identifying descriptions of any vehicles to be used to transport product 
between licensed facilities; and 


 


(v) Description of all communication systems; 


 


(E) The financial ability to maintain operations for two years from the date of 
application, evidenced by the following: 


 


(i) Applicant’s business organization, and corporate structure if applicable; 


 


(ii) List of all owners of the Applicant, including any shareholders owning 10 
percent or more of a corporate applicant; 


 


(iii) All individuals and entities with control over the Applicant; 


 


(iv) Projected two year budget; and 


 


(v) Description of available assets sufficient to support the Dispensing 
Organization activities. 


 


(c) Subsequent to the submission of all information and documentation required by subsection (b)(1) 
through (b)(6) of this section, and prior to approval of the application, the department will conduct 
an onsite inspection to confirm applicant’s compliance with the requirements of subsection (b)(7) 
of this section and of this chapter generally. The applicant must pass the inspection prior to 
licensure. Failure to pass the inspection will result in notification of the basis for the failure. 
Failure to address the basis for the failure within ninety (90) days of notice may result in the denial 
of the application, pursuant to Section 12.15 of this title (relating to Denial of Application for 
License). Upon request of the applicant, the department may extend the period to address the 
basis for the failure for one additional ninety (90) day period. 


 


(d) Failure of an applicant to submit all information and documentation required by subsection (b)(1) 
through (b)(6) of this section will result in notification of the deficiency. Applicant will have ninety 



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(90) days from the date of notice to address the deficiency. Upon request of the applicant, the 
department may extend the period to address the deficiency for one additional ninety (90) day 
period. If an applicant fails to provide all required application materials, or fails to respond to a 
request by the department for additional information necessary to process the application, the 
application will be terminated. Following the termination of an application, a new application, 
including a new application fee, must be submitted. 


 


12.12 Application for Registration 


 


(a) In conjunction with the dispensing organization’s application for license, or prior to employment 
with a currently licensed dispensing organization, directors, managers, and employees must 
submit the following: 


 


(1) Identifiers, including the individual’s full name, date of birth, telephone number, electronic 
mail address, residential address, and driver license or state-issued identification number; 


 


 (2) Fingerprints submitted in the manner approved by the department; 


 


(b) If the applicant does not have a digital photograph on file with the department or the department 
is unable to access the photograph on file, the registration card will be issued without a 
photograph. When presenting such a card to a peace officer or to a representative of the 
department, the registrant shall also present a valid government issued identification card or 
driver license. 


 


(c) Failure of an applicant to comply with the requirements of this section will result in notification of 
the deficiency. Applicant will have ninety (90) days from the date of notice to address the 
deficiency. Upon request of the applicant, the department may extend the period to address the 
deficiency for one additional ninety (90) day period. If an applicant fails to provide all required 
application materials, or fails to respond to a request by the department for additional information 
necessary to process the application, the application will be terminated. Following the termination 
of an application, a new application, including a new application fee, must be submitted. 


 


12.13 Renewal 


 


(a) A license or registration may be renewed at any time during the six (6) months prior to expiration. 


 


(b) A renewal applicant must pass department inspection prior to approval of the application. This 
requirement is satisfied by an inspection within ninety (90) days prior to the submission of the 
renewal application. 


 


(c) An expired license or registration may be renewed for up to six months after the expiration date. If 
the license has been expired for more than six (6) months, the former license holder must submit 
an original license application to receive a license in the future. 


 


12.14 Application Fees and Method of Payment 


 


(a) The application fee for a dispensing organization license is $6,000.00. 


 


(b) The fee for the biennial renewal of the dispensing organization license is $6,000.00. 



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(c) The registration application and biennial renewal fees are $150.00. 


 


(d) Payment of all fees must be made electronically in the manner determined by the department. 


 


(e) If payment is dishonored or reversed prior to issuance of the license or registration, the application 
will be rejected as incomplete. If the license or registration has been issued prior to the payment 
being dishonored or reversed, revocation proceedings will be initiated pursuant to Section 12.23 of 
this title (relating to Revocation). The department may dismiss a pending revocation proceeding 
upon receipt of payment of the full amount due, including any additional processing fees. 


 


12.15 Denial of Application for License 


 


The department may deny the application for a license as a dispensing organization if the applicant fails to 
pass the onsite inspection, based on the failure to satisfy the applicable requirements reflected in 
subsection (b)(7) of Section 12.11 of this title (relating to Application for License), and has either failed to 
address the basis for the failure within ninety (90) days of notice of the failure, or has failed to request an 
additional ninety (90) days to address the basis for the failure. 


 


The department may also deny the application for a license if the applicant is found to have violated any 
provision of the Act or this chapter, or Sections 481.120, 481.121, 481.122, or 481.125 of the Texas Health 
and Safety Code prior to licensure or renewal. 


 


Following the notice of denial the applicant will be provided thirty (30) days to request a hearing by 
submitting a request through the department’s website. 


 


12.16 Denial of Application for Registration 


 


The department may deny the application for registration of a director, manager, or employee of a 
dispensing organization if the applicant is disqualified pursuant to Section 12.03 of this title (relating to 
Criminal History Disqualifiers). The applicant may request a hearing by submitting a request through the 
department’s website within thirty (30) days of the date of the denial notice. 


 


Subchapter C Compliance and Enforcement 


 


12.21 Inspections 


 


(a) Submission of an application for a license as a dispensing organization constitutes permission for 
entry by the department to the regulated premises of the dispensing organization at any time 
during regular business hours. 


 


(b) While conducting an inspection or engaging in activity reasonably related to the inspection, the 
department may be assisted by a peace officer or a representative of an appropriate state 
regulatory agency. 


 


(c) Within 30 calendar days of the date of receipt of the written notice of violation, the dispensing 
organization shall provide the department with notification of all corrective actions taken and the 
dates of the corrections. 


 



15 


(d) Onsite inspections may include but are not limited to review of the following: 


 


(1) All applicable requirements provided in Section 12.11(b) of this title (relating to 
Application for License); 


 


(2) Security equipment and protocols as provided in Sections 12.31 and 12.32 of this title 
(relating to Security of Facilities and Security of Vehicles, respectively); 


 


(3) Records as provided in Section 12.04 of this title (relating to Records). 


 


(e) Failure to cooperate with an inspection by department personnel, or any law enforcement officer, 
may result in suspension or revocation of the individual’s registration and the license of the 
dispensing organization. 


 


12.22 Suspension 


 


(a) The department may initiate suspension proceedings against the license of a dispensing 
organization if the licensee or its registrant: 


 


(1) Willfully or knowingly submits false, inaccurate, or incomplete information to the 
department or records such information on any records required to be maintained under 
this chapter; 


 


(2) Fails to maintain the records required under this chapter; or 


 


(3) Violates any provision of the Act, of this chapter, or Sections 481.120, 481.121, 481.122, or 
481.125 of the Texas Health and Safety Code. 


 


(b) For the first violation of subsection (a) of this section, the license may be suspended for a period 
not to exceed 30 days. 


 


(c) For multiple first time violations, or for a second violation of subsection (a) of this section occurring 
within two years of an earlier violation for which a final order has been issued, the license may be 
suspended for a period not to exceed 90 days. 


 


(d) For multiple, repetitive violations, or for a third violation of subsection (a) of this section occurring 
within two years of two earlier violations for which final orders have been issued, the license may 
be suspended for a period not to exceed 180 days. 


 


(e) Upon receipt of a notice of suspension under this section, the licensee will be provided with 30 days 
to address the violation or request a hearing before SOAH. The failure to timely appeal the 
proposed action will result in the issuance of a final order. 


 


(f) Registrants may be suspended if charged by misdemeanor information or felony indictment with a 
disqualifying offense as provided in Section 12.03 of this title (relating to Criminal History 
Disqualifiers). 


 


12.23 Revocation 


 



16 


(a) The department may revoke a license or registration if the licensee or registrant: 


 


(1) Performs a regulated function outside the scope of the license or registration; 


 


(2) Misrepresents a material fact in any application to the department or any other 
information filed pursuant to the Act or this chapter; 


 


(3) Prepares or submits to the department false, incorrect, incomplete or misleading forms or 
reports on multiple occasions; 


 


(4) Performs a regulated function while suspended; 


 


(5) Exhibits a pattern of misconduct evidenced by previous violations for which previous 
suspensions have been inadequate to affect compliance; 


 


(6) Is convicted of a disqualifying felony or misdemeanor offense pursuant to Section 12.03 of 
this title (relating to Criminal History Disqualifiers); 


 


(7) Violates Sections 481.120, 481.121, 481.122, or 481.125 of the Texas Health and Safety 
Code; or 


 


(8) Submits to the department a payment that is dishonored, reversed, or otherwise 
insufficient or invalid. 


 


(b) Following notification of the violation, the licensee will be provided with 30 days to address the 
violation or request a hearing by submitting the request electronically through the department’s 
website or as otherwise determined by the department. If a hearing is requested, the department 
will schedule a hearing before SOAH. 


 


(c) Except as provided in subsection (b) of this section, an individual whose certificate of registration 
has been revoked may not be relicensed or reregistered earlier than two years from the date of 
revocation. 


 


(d) A individual whose registration has been revoked for a dishonored or reversed payment, as 
provided under subsection (a)(8) of this section may reapply at any time. Approval of the 
application is contingent upon receipt of payment of the full amount due, including any additional 
processing fees resulting from the prior dishonored or reversed payment. 


(e) Other than as provided in subsection (d) of this section, an individual whose license or registration 
has been revoked for a dishonored or reversed payment must follow the applicable procedures 
pursuant to Sections 12.11 or 12.12 of this title (relating to Application for License and Application 
for Registration, respectively) for new applications. 


12.24 Default Judgments 


 


Following adequate notice of a hearing on a contested case before SOAH, failure of the respondent to 
appear at the time of hearing shall entitle the department to request from the administrative law judge an 
order dismissing the case from the SOAH docket and to informally dispose of the case on a default basis. 


 



17 


12.25 Hearing Costs. 


(a) In cases brought before SOAH, in the event the respondent is adjudicated as being in violation of 
the Act or this chapter after a trial on the merits, the department has authority to assess the actual 
costs of the administrative hearing in addition to the penalty imposed. Such costs include, but are 
not limited to, investigative costs, witness fees, deposition expenses, travel expenses of witnesses, 
transcription expenses, or any other costs that are necessary for the preparation of the 
department's case. 


(b) The costs of transcriptions and preparation of the record for appeal shall be paid by the 
respondent. 


 


Subchapter D Security 


 


12.31 Security of Facilities 


 


(a) A licensee or applicant for licensure must maintain effective controls and procedures in order to 
prevent unauthorized access, theft, or diversion of the low-THC cannabis and any derivative 
products. The standards provided in this subchapter are minimum standards only. 


 


(b) During the regular course of business activities, a dispensing organization licensed under the Act 
may not allow access to the facility's low-THC cannabis area to unauthorized personnel or to the 
public. The licensee must establish and maintain a building, an enclosure within a building, or an 
enclosed yard that provides reasonably adequate security against the diversion of low-THC 
cannabis or raw materials used in or by-products created by the production or cultivation of low-
THC cannabis; limit access to each area to the minimum number of individuals or employees 
necessary for the licensee’s activities; and designate an individual or a limited number of 
individuals with responsibility for each area where a controlled item is cultivated, processed, 
dispensed, produced, stored; and authority to enter or control entry into the area. 


 


(c) Access to regulated premises by authorized personnel shall at a minimum be restricted by a 
physical barrier with a mechanical locking device that must be kept closed and locked at all times 
when not immediately being used to enter or exit the area. The area shall be clearly marked with 
signage indicating access is restricted to individuals registered with the Texas Department of Public 
Safety under Chapter 487 of the Texas Health and Safety Code. 


 


(d) When unregistered individuals, whether personnel or contractors, business guests or visitors, or 
maintenance or other service providers not regulated under the Act, are to be present in or are to 
pass through regulated premises, the unregistered individuals must be continuously escorted by a 
registrant. Unregistered individuals must be provided a visitor’s badge reflecting the individual’s 
name and the date of issuance. All ingress and egress by unregistered individuals must be 
recorded in a daily log. 


 


12.32 Security of Vehicles 


 


Any vehicle used by a dispensing organization for the transportation of low-THC cannabis must have a 
vehicle security system and a securely attached and locked container within the vehicle. It is the 
responsibility of the licensee to ensure that only authorized registered personnel have access to the locked 
secure container within the vehicle. 



18 


 


12.33 Response to Security Breach 


 


(a) The licensee must immediately report any unauthorized intrusion or other security breach of the 
regulated premises to both the local law enforcement agency with primary jurisdiction and to the 
department. 


 


(b) Following any security breach the licensee shall review existing security procedures for any 
deficiencies that may have contributed to the breach. The licensee shall remedy the deficiency 
and report the remedial measures to the department. 


 


(c) The licensee must rekey or change the combinations of any locks opened in the breach, and 
change any passwords that may have been used in the breach. 


 


12.34 Reporting of Discrepancy, Loss or Theft 


 


(a) A licensee or registrant must report to department not later than the second day following the 
date the licensee or registrant learns of: 


 


 (1) A notable inventory discrepancy; 


 


 (2) An inventory loss or theft; or 


 


 (3) A loss or theft during transport. 


 


(b) The report required by subsection (a) of this section must reflect the name and registration or 
license number of the individual preparing the report, the date of the report, and the following 
details, as applicable: 


 


(1) Date of discovery; 


 


(2) Amount of low-THC cannabis involved, including amounts transported and received; 


 


(3) Physical location at issue; 


 


(4) Date transported, name of carrier or employee involved in the transport; or 


 


(5) Description of any suspected criminal activity; 


 


Subchapter E Compassionate Use Registry 


 


12.41 Access to Compassionate Use Registry 


 


(a) Qualified physicians registered as prescribers of low-THC cannabis under Texas Occupations Code 
Chapter 169 may access the Compassionate Use Registry using the department’s secure web 
portal. 


 


(b) Dispensing organizations and law enforcement agencies may request access to the Compassionate 
Use Registry for the purpose of verifying whether a patient is one for whom low-THC cannabis is 



19 


prescribed and whether the patient’s prescriptions have been filled. 


 


12.42 Verification of Patient Registration 


 


(a) Before dispensing any low-THC cannabis to a registered patient or the patient’s legal 
guardian, the dispensing organization must verify the identity of the patient or guardian, verify 
the guardian’s status, if applicable, and confirm the patient has an active registration, the 
order has been entered in the registry by the physician, and the order has not already been 
dispensed. 


 


(b) The dispensing organization shall enter a dispensing action into the registry immediately upon 
dispensing the low-THC cannabis to the registered patient or the patient’s legal guardian. 


 


12.43 Prescriber Registration 


 


(a) In addition to the requirements of Texas Occupations Code Section 169.004, for purposes of 
identification the physician’s registration must include the patient’s address, the last four digits of 
the patient’s Social Security Number, and if applicable, the name of the patient’s legal guardian. 


 


(b) Physicians registered as prescribers of low-THC cannabis under Texas Occupations Code Chapter 
169 must immediately inform the department of any change to their qualifications to prescribe 
under Section 169.002. 


 


12.44 Prescriptions 


 


Prescriptions for low-THC cannabis must be submitted electronically to the Compassionate Use Registry in 
compliance with Texas Occupations Code Section 169.003, and may be confirmed and dispensed based on 
the electronic prescription record in accordance with Section 487.107 of the Act. 


 


Subchapter F Special Conditions for Military Service Members and Spouses 


 


12.51 Definitions 


 


For purposes of this subchapter, the terms “military service member”, “military veteran”, and “military 
spouse” have the meanings provided in Texas Occupations Code Section 55.001. 


 


12.52 Exemption from Penalty for Failure to Renew in Timely Manner 


 


An individual who holds a registration or license issued under the Act is exempt from any increased fee or 
other penalty for failing to renew the license or registration in a timely manner if the individual establishes 
to the satisfaction of the department the individual failed to renew the license or registration in a timely 
manner because the individual was serving as a military service member. 


 


12.53 Extension of License Renewal Deadlines for Military Members 


 


A military service member who holds a registration or license issued under the Act is entitled to two (2) 
years of additional time to complete any requirement related to the renewal of the license. 


 


12.54 Alternative Licensing for Military Service Members, Military Veterans, and Military Spouses 



20 


 


(a) An individual who is a military service member, military veteran, or military spouse may apply for a 
license under this section if the individual: 


 


(1) Holds a current license issued by another jurisdiction with licensing requirements 
substantially equivalent to the Act's requirements for the license; or 


 


(2) Held a license in this state within the five (5) years preceding the date of application. 


 


(b) The department may accept alternative demonstrations of professional competence in lieu of 
existing experience, training, or educational requirements. 


 


12.55 Credit for Military Experience and Training 


 


(a) Verified military service, training, or education that relates to the registration or license for which a 
military service member or military veteran has applied will be credited toward the respective 
experience or training requirements. 


 


(b) This section does not apply to an applicant who: 


 


(1) Holds a restricted licensed issued by another jurisdiction; or 


 


(2) Is ineligible for the registration or license under the Act or this chapter, based on a 
disqualifying criminal history. 


 


 


 

Questions on Puerto Rico Regulations

MedCan Foundation - Friday, July 24, 2015



Greetings, you are receiving this letter if you have subscribed to our Medcan Herald Newsletter, or if we have received an inquiry from you and/or if you have registered to participate in any of our promotions. 

From Dante's Desk:

Dear Dr. Rius,

Thank you for posting the first draft of your Puerto Rico medical cannabis program; needless to say, we are incredibly impressed and you and the rest of your associates must be proud for the beautiful legislation that you are presently creating. Your regulation presents both compassion and accountability. On a different subject, the following in no order of importance are some of the questions that we have regarding your initial draft:

Questions for the Department of Health, Puerto Rico regarding the Medical Cannabis Program

1)     What is the time frame for applying for licenses? Will it be a 90 day period and then no additional applications or licenses be made available for say a year, or can anyone apply at any time to obtain a license like a liquor license where you can apply at any time throughout the year with no time restraints?

2)     How will we be allowed to imports seeds to begin the grow operations? Will we be allowed a one-time exemption to bring seeds in from say Colorado for the first planting or, as most other states have done, is it a ‘don’t ask don’t tell’ for the initial planting where we only record the number of plants growing for the state to inventory and then follow?

3)     Will the grow and lab operations be allowed to start 30-90 days earlier than the dispensaries to allow for the plants to be growing and then processed so the medication will be ready for the dispensaries? It will take at least 90 days for the plants to reach maturity and then be processed before the medication can be available for use.

4)     Transporting cannabis – will we need to submit vehicle and driver information when the cannabis is transported from the growing facility to the processing/lab facility and from the processing/lab to the dispensary? This should help in maintaining the security of the product and hopefully alleviate any misdirection of the product.

5)     Will there be limits placed on the number of plants that can be grown by the cultivation centers? And if more is grown than is needed by one certain dispensary/processing facility can the excess be sold to another dispensary/processing facility for their use, maintaining of course records of the exact amount grown and sold to be submitted to the state. This could help alleviate problems with some areas having not enough inventory to aid their patients while others have too much for theirs. Or will one cultivation center be able to provide plants to multiple dispensaries/processing facilities?

6)     Any thoughts on which inventory tracking system the state will utilize for the medical cannabis?  As there are several companies that manufacture this technology (Franwell, MMJ Freeway, BioTrack to name a few) by certifying one for the state everyone would be on the same system making it easier on the RSD (Regulatory Services Division) to keep track of usages and inventories. The purpose of these is to establish a system that could allow the RSD and the grower/lab/dispensary to jointly track medical cannabis and/or medical cannabis -Infused Product from either seed or immature plant stage until the product is sold to the patient or destroyed. These inventory tracking systems are web-based tools coupled with RFID (radio frequency identification) technology that would allow both the user and the RSD the ability to identify and account for all medical cannabis and/or medical cannabis -Infused Product. Through the use of RFID technology, a cultivation facility would tag either the seed or immature plant with an individualized number which would follow the medical cannabis through all phases of production and final sale to a patient. This would allow the RSD and the user the ability to monitor and track medical cannabis and medical cannabis -Infused Products. The inventory tracking system would also provide a platform for the RSD to exchange information and provide compliance notifications to the industry

7)     Would this be done by an independent lab, or would this be part of the processing done on site? If done on site it, we would recommend it be certified by a company’s Medical Director prior to being dispensed to the patient. We would recommend that each batch of oil, edibles or harvest of plant material be tested as to potency and contaminates to insure only the highest quality and safest product reaches the patient. This is typically done by taking a sample from each batch or harvest and usually takes 1 day to complete. We feel that the products should be tested for pesticides, fungicides, fertilizers, mold, fungus, and heavy metals in addition to potency, again this would insure only the safest products reach our patients. All other medicines have information regarding the strength or dosage of the product, and we feel it should be no different with medical cannabis  products.

8)     Will there be labeling requirements for the cannabis oil and/or cannabis edibles? In our opinion all products dispensed should be in child-proof packaging and properly labeled as to the ingredients, potency, and recommended dosage. You could also include the product’s test results as a way to certify the potency/purity of the product. Labels could also identify all additives used in the cultivation/processing of the products, such as fertilizers; pesticides; fungicides; etc., so that patients can avoid allergic or negative responses. Containers for edible cannabis products should also be labeled with all ingredients, if refrigeration is required, standard serving limit and expiration date.

9)     Are the growing facilities and medical clinic/dispensary going to be able to be separated but under one roof, or is the grow facility going to be separated by large distances from the medical clinic/dispensary? Please keep in mind that somewhat of a large facility is going to be needed for the growing facility due to the fact that, for the most part, it is going to take eight times the product to extract the purity of the specified ratio of cannabis oil.

10)How many licenses are going to be permitted initially and are there different limits on dispensaries versus grow facilities and processing facilities?

11)What is the period of time that a person must be a resident to qualify to apply for a license?

12)The act says a physician is to recommend medical cannabis, then says he must prescribe it. I am afraid that if your final regulation documents utilizes the word prescription most doctors will not take the chance of losing their DEA license by prescribing cannabis which is still illegal Federally, unless Puerto Rico does not have to comply with Federal law and of course doctors need to know that.

13)Is Puerto Rico changing the classification of cannabis from Schedule I to Schedule II? I was under the impression that only the Federal government can reclassify a controlled substance and that if doctors prescribe a Schedule I substance they can lose their medical prescription license.

14)Are there any provisions for obtaining medication for children (epilepsy, Charlotte’s Web), as it seems at this point the patients must be 18 years of age? Possibly with parent’s consent along with a doctor’s recommendation?

15)Do growers register with the University of Puerto Rico and Department of Agriculture prior to being issued a license?

16)How soon before doctors can be registered?

17)How soon before patients can begin registering?

 

Again, thank you for allowing us the benefit to provide an opinion so that you will continue to have an organized program that will be of great benefit for the people of Puerto Rico. I will send you another set of questions that I have in a couple of days, since I thought the previous questions could utilize a bit of your incredibly busy time.

 

All my best,

Dante Picazo, CHA 

President & CEO

Medcan Foundation, Inc.

214-733-0868 MB

817-528-2475 OF

dpicazo@msn.com

Comments on DPS Rules

MedCan Foundation - Friday, July 24, 2015



Greetings, you are receiving this letter if you have subscribed to our Medcan Herald Newsletter, or if we have received an inquiry from you and/or if you have registered to participate in any of our promotions. 

From Dante’s Desk:


We want to welcome Mr. Lowry, Mr. Douglas, Ms. Sutton, Mr. Belcher, Mr. Wolff, and Ms. Danielsson for registering in the last two days to attend our seminar in Austin on August 8th & 9th this past week. Furthermore, please know that in addition to cannabis growing, oils & extracts, dispensary design and construction, cannabis cooking, etc. Mr. Picazo will be discussing the licensing and application process for Texas. Please remember that we always sell out, seats are filling fast and we only have about 20 seats still remaining.

                                                                                                                                                       Enroll Now =>

Additionally, we wanted to remind you to sign up for our seminar in San Juan, Puerto Rico on October 17th & 18th which will be held at the Condado Plaza Hilton in San Juan, Puerto Rico, the room rate at this point is at $159/night plus tax, however we are negotiating for a much better rate; also flights to Puerto Rico booked now through Spirit Airlines are only $384 round trip http://www.spirit.com/Default.aspx!

Please be sure to follow and friend us on our Facebook page to see daily news and updates at www.facebook.com/med.can.13.


From Henry’s Desk:


Dear Mr. Grigsby,

We have a few additional questions on the Compassionate Use Program:

1)     Can a dispensary be opened in a retail shop, as long as there is a separate secure area for the patients to receive their medication?

2)     Will the $6,000 application fee be refunded, or a portion refunded, if no license is issued?

3)     Can cities or counties disallow having dispensaries, cultivation centers, or processing facilities within their jurisdictions?

4)     Can we have a dispensary in one county and a cultivation center in another under the same license?

5)     Once a license is issued is there a time frame in which the facility must be opened? In other words can a license be obtained and the facility opened at a later date?

6)     What is the time frame for applying for licenses? Will it be a 90 day period and then no additional applications or licenses be made available for say a year, or can anyone apply at any time to obtain a license like a liquor license where you can apply at any time throughout the year with no time restraints?

7)     Will the number of applications and the areas for which they are being submitted be made available to the public so that those applying can make an educated decision as to which area to submit their license application for? In other words if there are 50 applications submitted for Dallas yet only 1 for Waco, I would submit an application for Waco because my chances would be better to receive one.

8)     Henry: What will be the reporting requirements, daily, weekly or monthly? Most states have a requirement that is submitted via the cannabis control software that sends in production numbers, sales numbers, processing numbers so the inventory and usage is maintained and followed statewide. This helps insure all plants are accounted for at all times and nothing is being misdirected.

Phillip: I went through the Colorado Rules for guidance and pulled a few excerpts from their document that I thought might apply to the Texas program.  Obviously, Texas will have its own program with its own rules and regulations.  However, Colorado has a working program that has gone through many revisions and has proven its feasibility.  As many other states have done, we could benefit from some copying of their framework.

Business Records

This rule explains what business records a Licensee must maintain. It also clarifies that such records must be made available to the Division on demand. Rule R 901.B was added due to written commentary received from an industry representative.

General Requirements

1. A Medical Marijuana Business must maintain the information required in this rule in a format that is readily understood by a reasonably prudent business person.

2. Each Medical Marijuana Business shall retain all books and records necessary to fully account for the business transactions conducted under its license for the current year and three preceding calendar years.

a. On premises records: The Medical Marijuana Business' books and records for the preceding six months (or complete copies of such records) must be maintained on its Licensed Premises at all times.

b. On-or off-premises records: Books and records associated with older periods may be archived on or off of the Licensed Premises.

3. The books and records must fully account for the transactions of the business and must include, but shall not be limited to:

a. Current Employee List – This list must provide the full name and Occupational License number of each employee and all non-employee Owners, who work at a Medical Marijuana Business.

b. Secure Facility Information - For its Licensed Premises and any associated permitted off-premises storage facility, a Medical Marijuana Business must maintain the business contact information for vendors that maintain video surveillance systems and Security Alarm Systems.

c. Licensed Premises - Diagram of all approved Limited Access Areas and any permitted off-premises storage facilities.

d. Visitor Log - List of all visitors entering Limited Access Areas or Restricted Access Areas.

e. All records normally retained for tax purposes.

B. Loss of Records and Data.

Any loss of electronically-maintained records shall not be considered a mitigating factor for violations of this rule. Licensees are required to exercise due diligence in preserving and maintaining all required records.

C. Violation Affecting Public Safety.

Violation of this rule may constitute a license violation affecting public safety.

D. Records Related to Inventory Tracking.

A Medical Marijuana Business must maintain accurate and comprehensive inventory tracking records that account for, reconcile, and evidence all inventory activity for Medical Marijuana from either seed or Immature Plant stage until the Medical Marijuana or Medical Marijuana-Infused Product is destroyed or sold to another Medical Marijuana Business or a patient.

E. Records Related to Transport.

A Medical Marijuana Business must maintain adequate records for the transport of all activities related to Medical Marijuana and Medical Marijuana-Infused Product.

See Rule M 801 –Transport of Medical Marijuana or Medical Marijuana-Infused Product.

F. Provision of Requested Records to the Division.

A Licensee must provide on-demand access to on-premises records following a request from the Division during normal business hours or hours of apparent operation, and must provide access to off-premises records within three business days following a request from the Division.

9)     Regarding 12.07 Testing and Production 

Phillip: Marijuana Testing Facility: Mandatory Sampling and Testing Program

 Division Authority. The Division may elect to require that a Test Batch be submitted to a specific Retail Marijuana Testing Facility for testing to verify compliance, perform investigations, compile data or address a public health and safety concern.

B.  Test Batches

1. Retail Marijuana and Retail Marijuana Concentrate. A Retail Marijuana Testing Facility must establish a standard minimum weight of Retail Marijuana and Retail Marijuana Concentrate that must be included in a Test Batch for every type of test that it conducts.

2. Retail Marijuana Product. A Retail Marijuana Testing Facility must establish a standard number of finished product(s) it requires to be included in each Test Batch of Retail Marijuana Product for every type of test that it conducts.

C. Rejection of Test Batches and Samples

1. A Retail Marijuana Testing Facility may not accept a Test Batch that is smaller than its standard minimum amount.

2. Beginning on July 1, 2014, a Retail Marijuana Testing Facility may not accept a Test Batch or Sample that it knows was not taken in accordance these rules or any additional Division sampling procedures or was not collected by Division personnel or a Division Approved Sampler.

D. Notification of Retail Marijuana Establishment. If Retail Marijuana, Retail Marijuana Concentrate or Retail Marijuana Product failed a contaminant test, then the Retail Marijuana Testing Facility  immediately notify the Retail Marijuana Establishment that submitted the sample for testing and report the failure in accordance with all Inventory Tracking System procedures.

E. Permissible Levels of Contaminants. If Retail Marijuana, Retail Marijuana Concentrate or Retail Marijuana Product is found to have a contaminant in levels exceeding those established as permissible under this rule, then it shall be considered to have failed contaminant testing. Notwithstanding the permissible levels established in this rule, the Division reserves the right to determine, upon good cause and reasonable grounds that a particular Test Batch presents a risk to the public health or safety and therefore shall be considered to have failed a contaminant test.

1. Microbials (Bacteria, Fungus)

Substance Acceptable Limits Per Gram Product to be Tested –Shiga-toxin producing Escherichia coli (STEC)*- Bacteria < 1 Colony Forming Unit (CFU)  Flower; Retail Marijuana Products; Water- and Food-Based Concentrates Salmonella species* – Bacteria < 1 Colony Forming Unit (CFU) Aspergillus fumigatus, Aspergillus flavus, Aspergillus niger - Fungus < 1 Colony Forming Unit (CFU)

*Testing facilities should contact the Colorado Department of Public Health and Environment when STEC and Salmonella are detected beyond the acceptable limits.

2. Residual Solvents and Metals Substance Acceptable Limits Per Gram Product to be Tested

Butanes < 800 Parts Per Million (PPM)   

Heptanes < 500 Parts Per Million (PPM)

Benzene** < 1 Parts Per Million (PPM)

Toluene** < 1 Parts Per Million (PPM)

Hexane** < 10 Parts Per Million (PPM)

Total Xylenes (m,p, o-xylenes)** < 1 Parts Per Million (PPM)

Any solvent not permitted for use pursuant to Rule R 605.  None Detected

** Note: These solvents are not approved for use. Due to their possible presence in the solvents approved for use per Rule R 605, limits have been listed here accordingly.

3. Metals Substance Acceptable Limits Per Gram Product to be Tested Metals (Arsenic, Cadmium, Lead and Mercury)

Lead – Max Limit: < 10 ppm

Arsenic – Max Limit: < 10 ppm

Cadmium – Max Limit: <4.1 ppm

Mercury – Max Limit: <2.0 ppm

Flower; Water-, Food-, and Solvent-Based Concentrates; and Retail Marijuana Products

4. Other Contaminants Pesticide If testing identifies the use of a banned Pesticide or the improper application of a permitted Pesticide, then that Test Batch shall be considered to have failed contaminant testing. Chemicals If Test Batch is found to contain levels of any chemical that could be toxic if consumed, then the Division may determine that the Test Batch has failed contaminant testing. Microbials If Test Batch is found to contain levels of any microbial that could be toxic if consumed, then the Division may determine that the Test Batch has failed contaminant testing. Molds, Mildew, and Filth If a Test Batch is found to contain levels of any mold, mildew, or filth that could be toxic if consumed, then that Test Batch shall be considered to have failed contaminant testing.

4. Division Notification. A Retail Marijuana Testing Facility must notify the Division if a Test Batch is found to contain levels of a contaminant not listed within this rule that could be injurious to human health if consumed.

F. Potency Testing

1. Cannabinoids Potency Profiles. A Retail Marijuana Testing Facility may test and report results for any cannabinoid provided the test is conducted in accordance with the Division’s Retail Marijuana Testing Facility Certification Policy Statement.

2. Reporting of Results

a. For potency tests on Retail Marijuana and Retail Marijuana Concentrate, results must be reported by listing a single percentage concentration for each cannabinoid that represents an average of all samples within the Test Batch.

b. For potency tests conducted on Retail Marijuana Product, whether conducted on each individual production batch or via Process Validation per rule R 1503, results must be reported by listing the total number of milligrams contained within a single Retail Marijuana Product unit for sale for each cannabinoid and affirming the THC content is homogenous.

3. Dried Flower.

All potency tests conducted on Retail Marijuana must occur on dried and cured Retail Marijuana that is ready for sale.

4. Failed Potency Tests for Retail Marijuana Products

 If the THC content of a Marijuana Product is determined through testing to not be homogenous, then it shall be considered to have failed potency testing. A Retail Marijuana Product shall be considered to not be homogenous if 10% of the infused portion of the Retail Marijuana Product contains more than 20% of the total THC contained within entire Retail Marijuana Product.

Collection of Samples

1. Sample Collection.

All Samples submitted for testing pursuant to this rule must be collected by Division personnel or a Division Approved Sampler in accordance with the Division’s sampling procedures.

2. Sample Selection.

A Retail Marijuana Establishment, its Owners and employees may not select Samples or attempt to influence the Samples selected by Division personnel or a Division Approved Sampler.

3. Division Approved Sampler Selection.

The Division will generally permit a Retail Marijuana Establishment to select which Division Approved Sampler collects a Sample pursuant to this rule. However, the Division may elect, at its sole direction, to assign Division personnel or a Division Approved Sampler to collect the Sample.

B. Samples for Test Batches of Retail Marijuana and Retail Marijuana Concentrate. Each Test Batch of Retail Marijuana or Retail Marijuana Concentrate must be comprised of a representative selection of Samples.

1. Minimum Number of Samples.

At a minimum, each Test Batch of Retail Marijuana or Retail Marijuana Concentrate must be comprised of at least the following number of separately taken Samples:

a. For Test Batches comprised of Harvest Batches or Production Batches weighing up to 10 pounds, eight separate Samples must be taken.

b. For Test Batches comprised of Harvest Batches or Production Batches weighing more than 10 pounds but less than 20 pounds, 12 separate Samples must be taken.

c. For Test Batches comprised of Harvest Batches or Production Batches weighing 20 pounds or more but less than 30 pounds, 15 separate Samples must be taken.

d. For Test Batches comprised of Harvest Batches or Production Batches weighing 30 pound or more but less than 40 pounds, 18 separate Samples must be taken.

e. For Test Batches comprised of Harvest Batches or Production Batches weighing 40 pounds or more but less than 100 pounds, 23 separate Samples must be taken.

f. For Test Batches comprised of Harvest Batches or Production Batches weighing 100 pounds or more, 29 separate Samples must be taken.

2. Multiple Harvest Batches or Production Batches.

If more than one Harvest Batch or Production Batch is combined into a single Test Batch, then that Test Batch must include at least one Sample from each Harvest Batch or Production Batch.

C.  Samples for Test Batches of Retail Marijuana Product

1. Finished Product.

Test Batches of Retail Marijuana Product must be comprised of finished product that is packaged for sale.

2. Multiple Production Batches.

If more than one Production Batch of Retail Marijuana Product is combined into a single Test Batch, then that Test Batch must include at least one finished product that is packaged for sale from each Production Batch combined into that Test Batch.

D.  Third-Party Samplers

1. A Retail Marijuana Establishment may not employ a Division Approved Sampler.

2. A Retail Marijuana Establishment may not have an ownership interest in a company that employs a Division Approved Sampler.

3. A Division Approved Sampler may not have an ownership interest in a Retail Marijuana Establishment.

E. Retail Marijuana Testing Facility Selection.

The Division will generally permit a Retail Marijuana Establishment to select which Retail Marijuana Testing Facility will test a Sample collected pursuant to this rule. However, the Division may elect, at is sole discretion, to assign a Retail Marijuana Testing Facility to test the Sample.

F. Violation Affecting Public Safety.

Failure to comply with this rule may constitute a license violation affecting public safety.

Packaging Requirements: General Requirements

Packaging of Medical Marijuana and Medical Marijuana-Infused Product by a Medical Marijuana Center.

A Medical Marijuana Center must ensure that all Medical Marijuana and Medical Marijuana-Infused

Product is placed within a Container prior to sale to a consumer. If the Container is not Child-Resistant, the Medical Marijuana Center must place the Container within an Opaque and Resealable Exit Package that is Child-Resistant.

The purpose of this rule is to ensure that the labeling on each Container of Medical Marijuana and Medical Marijuana-Infused Product includes necessary and relevant information for consumers, is easily accessible to consumers, and is clear and noticeable. This rule also ensures that Medical Marijuana and Medical Marijuana-Infused Products labeling does not include health and physical benefit claims.

Labeling Requirements: General Requirements

Labeling Required.

All Medical Marijuana and Medical Marijuana-Infused Product sold, transferred, or otherwise provided to a consumer must be in a Container that is labeled with all required information, see

Rules M 1001 –Packaging Requirements: General Requirements, M 1003 –Labeling Requirements: Specific Requirements, Medical Marijuana and Medical Marijuana-Infused Product and M 1004 –Labeling Requirements: Specific Requirements, Edible Medical Marijuana-Infused Product, and that specifically excludes certain text.

B. Health and Benefit Claims.

Labeling text on a Container may not make any false or misleading statements regarding health or physical benefits to the consumer.

C. Font Size.

Labeling text on a Container must be no smaller than 1/16 of an inch.

D. Use of English Language.

Labeling text on a Container must be clearly written or printed and in the English language.

E. Unobstructed and Conspicuous.

Labeling text on a Container must be unobstructed and conspicuous. A Licensee may affix multiple labels to a Container, provided that none of the information required by these rules is completely obstructed.

Basis and Purpose

The purpose of this rule is to ensure that each Container of Medical Marijuana and Medical Marijuana-Infused Product includes necessary and relevant labeling information for consumers.

Labeling Requirements: Specific Requirements, Medical Marijuana and Medical Marijuana-Infused Product

Labels Required.

No Licensee shall sell, transfer, or give away any Medical Marijuana that does not contain a Label with a list of all ingredients, including all chemical additives, including but not limited to nonorganic pesticides, herbicides, and fertilizers that were used in its cultivation and production. The label must also list:

The Batch Number or numbers assigned by the Optional Premises Cultivation Operation to the marijuana plant or plants from which the Medical Marijuana contained within the Container was harvested; and

2. A complete list of solvents and chemicals used in the creation of any Medical Marijuana concentrate.

B. Medical Marijuana Container Labeling Must Include the Following Information:

1. The license number of the Optional Premises Cultivation Facility, if different than the Medical Marijuana Center's license number, identifying where the Medical Marijuana within the Container was grown;

2. The license number of the Medical Marijuana Center that sold the Medical Marijuana to the patient;

3. The date of sale; and

4. The patient registry number of the purchaser.

C. Medical Marijuana-Infused Product Container Labeling Must Include the Following Information:

1. The license number of the Medical Marijuana Business(es) where the Medical Marijuana used to manufacture the Medical Marijuana-Infused Product within the Container was grown;

2. The license number of the Medical Marijuana Center that sold the Medical Marijuana-Infused Product to the patient;

3. The following statement: "This product contains medical marijuana and was produced without regulatory oversight for health, safety or efficacy and there may be health risks associated with the consumption of the product."

4. For Medical Marijuana-Infused Product, the product identity and net weight statements must appear on the portion of the label displayed to the patient.

5. When a Medical Marijuana-Infused Product is made specifically for a designated patient, the label of that product shall state the patient's Medical Marijuana Registry number.

6. The list of ingredients and company name statements must be conspicuously listed on the Medical Marijuana-Infused Product package.

7.A nutrition facts panel may be required if nutritional claims are made on the label of any Medical Marijuana-Infused Product.

D. Minimum print size.

The minimum print size for each of the required statements for non-infused products and for each of the required statements for Medical Marijuana-Infused Product is 1/16 inch. The size of the characters in the net weight statement is determined by the area of the principal display panel and may be greater than 1/16 inch.

Basis and Purpose

The purpose of this rule is to ensure that each Container of an Edible Medical Marijuana-Infused Product includes necessary and relevant information for patients.

Labeling Requirements: Specific Requirements, Medical Marijuana-Infused Product

Ingredient List.

A list of all ingredients used to manufacture the Edible Medical Marijuana-Infused Product; which may include a list of any potential allergens contained within, or used in the manufacture of, the Medical Marijuana-Infused Product.

B. Statement Regarding Refrigeration.

A statement that the Medical Marijuana-Infused Product, if perishable, must be refrigerated.

C. Statement of Expiration Date.

A product expiration date, for perishable Medical Marijuana-Infused Product, upon which the product will no longer be fit for consumption, or a use-by-date, upon which the product will no longer be optimally fresh. Once a label with a use-by or expiration date has been affixed to a Container of a Medical Marijuana-Infused Product, a Licensee shall not alter that date or affix a new label with a later use-by or expiration date.

Signage, Marketing, and Advertising

Basis and Purpose

The purpose of this rule is to clearly delineate that Licensees are not permitted to make false or misleading statements.

General Requirement: False and Misleading Statements

  1.  No Medical Marijuana Business shall display upon or in proximity to, or referring to the

Licensed Premises, use, publish or exhibit, or permit to be used, or published, any sign, advertisement, display, notice, symbol or other device which are inconsistent with the local laws and regulations in which the licensee operates.

  1.  No Medical Marijuana Business shall display upon or in proximity to, or referring to the Licensed Premises, use, publish or exhibit, or permit to be used, or published, any sign, advertisement, display, notice, symbol or other device which uses misleading, deceptive, or false advertising

10)Regarding 12.11(C)  The ability to maintain accountability of all raw materials, finished products, and any byproducts to prevent diversion or unlawful access to or possession of these substances, evidenced by the following: Phillip has the following recommendations:

Transport and Storage

The purpose of the rule is to provide clarity as to the requirements associated with the delivery of Medical Marijuana and Medical Marijuana-Infused Product between Licensed Premises. It also prescribes the manner in which licensed entities will track inventory in the transport process to prevent diversionary practices.

Transport of Medical Marijuana and Medical Marijuana-Infused Product

A. Persons Authorized to Transport.

The only Persons authorized to transport Medical Marijuana or Medical Marijuana-Infused Product are those individuals licensed by the State Licensing Authority pursuant to section 12-43.3-401, C.R.S.; including Owners or others holding Occupational Licenses. An individual who does not possess a current and valid Occupational License from the State Licensing Authority may not transport Medical Marijuana or Retail Marijuana Product between Licensed Premises.

B. Transport Between Licensed Premises.

Medical Marijuana and Medical Marijuana-Infused Product shall only be transported between Licensed Premises and between Licensed Premises and a permitted off-premises storage facility. Licensees transporting Medical Marijuana and Medical Marijuana-Infused Product are responsible for ensuring that all Medical Marijuana and Medical Marijuana-Infused Product are secured at all times during transport.

C. Inventory Tracking System-Generated Transport Manifest Required.

A Licensee may only transport Medical Marijuana and Medical Marijuana-Infused Product if he or she has a hard copy of an Inventory Tracking System-generated transport manifest that contains all the information required by this rule and shall be in the format prepared by the State Licensing Authority. A Licensee may transport Medical Marijuana or Medical Marijuana-Infused Product from an originating location to multiple destination locations so long as the transport manifest correctly reflects the specific inventory destined for specific licensed locations.

D. Motor Vehicle Required.

Transport of Medical Marijuana and Medical Marijuana-Infused Product shall be conducted by a motor vehicle that is properly registered in the state of Colorado pursuant to motor vehicle laws, but need not be registered in the name of the Licensee.

E. Documents Required During Transport.

Transport of Medical Marijuana or Medical Marijuana-Infused Product shall be accompanied by a copy of the originating Medical Marijuana Business, the driver's valid Owner or Occupational License, the driver's valid motor vehicle operator's license, and all required vehicle registration information.

F. Use of Colorado Roadways.

State law does not prohibit the transport of Medical Marijuana and Medical Marijuana-Infused Product on any public road within the state of Colorado as authorized in this rule. However, nothing herein authorizes a Licensee to violate specific local ordinances or resolutions enacted by any city, town, city and county, or county related to the transport of Medical Marijuana or Medical Marijuana-Infused Product.

G. Preparation of Medical Marijuana and Medical Marijuana-Infused Product for Transport

1. Final Weighing and Packaging.

A Medical Marijuana Business shall comply with the specific rules associated with the final weighing and packaging of Medical Marijuana or Medical Marijuana-Infused Product before such items are prepared for transport pursuant to this rule. The scale used to weigh product to be transported shall be certified in accordance with measurement standards established in Article 14 of Title 35, C.R.S.

2. Preparation in Limited Access Area. Medical Marijuana and Medical Marijuana-Infused Product shall be prepared for transport in a Limited Access Area, including the packing and labeling of Shipping Containers.

3. Shipping Containers.

All Shipping Containers must be affixed with an RFID tag prior to transport. Sealed packages or Containers may be placed in larger Shipping Containers, so long as such Shipping Containers are labeled with type and amount of Medical Marijuana or Medical Marijuana-Infused Product contained therein. The contents of Shipping Containers shall be easily accessible and may be inspected by the State Licensing Authority, local licensing authorities, and state and local law enforcement agency for a purpose authorized by the Medical Code or for any other state or local law enforcement purpose.

H. Creation of Records and Inventory Tracking

1. Use of Inventory Tracking System -Generated Transport Manifest.

Licensees who transport Medical Marijuana or Medical Marijuana-Infused Product shall create an Inventory Tracking System-generated transport manifest to reflect inventory that leaves the Licensed Premises for destinations to other licensed locations. The transport manifest may either reflect all deliveries for multiple locations within a single trip or separate transport manifests may reflect each single delivery. In either case, no inventory shall be transported without an Inventory Tracking System-generated transport manifest.

2. Copy of Transport Manifest to Receiver.

A Licensee shall provide a copy of the transport manifest to each Medical Marijuana Business receiving the inventory described in the transport manifest. In order to maintain transaction confidentiality, the originating Licensee may prepare a separate Inventory Tracking System-generated transport manifest for each receiving Medical Marijuana Business.

3. The Inventory Tracking System-generated transport manifest shall include the following:

a. Departure date and approximate time of departure;

b. Name, location, address, and license number of the originating Medical

Marijuana Business;

c. Name, location address, and license number of the destination Medical Marijuana Business(es);

d. Product name and quantities (by weight or unit) of each product to be delivered to each specific destination location(s);

e. Arrival date and estimated time of arrival;

f. Delivery vehicle make and model and license plate number; and

g. Name, Occupational License number, and signature of the Licensee accompanying the transport.

I. Inventory Tracking.

In addition to all the other tracking requirements set forth in these rules, a Medical Marijuana Business shall be responsible for all the procedures associated with the tracking of inventory that is transported between Licensed Premises.

See Rule M 901 –Business Records Required.

Responsibilities of Originating Licensee.

Prior to departure, the originating Medical Marijuana Business shall adjust its records to reflect the removal of Medical Marijuana or Medical Marijuana-Infused Product. The scale used to weigh product to be transported shall be certified in accordance with measurement standards established in Article 14 of Title 35, C.R.S. Entries to the records shall note the Inventory Tracking System-generated transport manifest and shall be easily reconciled, by product name and quantity, with the applicable transport manifest.

2. Responsibilities of Receiving Licensee.

Upon receipt, the receiving Licensee shall ensure that the Medical Marijuana or Medical Marijuana-Infused Product received are as described in the transport manifest and shall immediately adjust its records to reflect the receipt of inventory. The scale used to weigh product being received shall be certified in accordance with measurement standards established in Article 14 of Title 35, C.R.S. Entries to the inventory records shall note the Inventory Tracking System-generated transport manifest and shall be easily reconciled, by product name and quantity, with the applicable transport manifest.

3. Discrepancies.

A receiving Licensee shall separately document any differences between the quantity specified in the transport manifest and the quantities received. Such documentation shall be made in the Inventory Tracking System and in any relevant business records.

J. Adequate Care of Perishable Medical Marijuana-Infused Product.

A Medical Marijuana Business must provide adequate refrigeration for perishable Medical Marijuana-Infused Product during transport

Waste Disposal

All Applicable Laws Apply.

Medical Marijuana and Medical Marijuana

-

Infused Product waste must be stored, secured and managed in accordance with all applicable state and

local statutes, regulations, ordinances or other requirements.

B. Liquid Waste.

Liquid waste from Medical Marijuana Businesses shall be disposed of in compliance all applicable federal, state and local laws, regulations, rules and other requirement

C. Chemical, Dangerous and Hazardous Waste. Disposal of chemical, dangerous or hazardous waste must be conducted in a manner consistent with federal, state and local laws, regulations, rules or other requirements. This may include, but is not limited to, the disposal of all Pesticide or other chemicals used in the cultivation process, certain solvents or other chemicals used in the production of Medical Marijuana Concentrate or any Medical Marijuana soaked in a Flammable Solvent for purposes of producing a Medical Marijuana Concentrate.

D. Waste Must Be Made Unusable and Unrecognizable

Medical Marijuana and Medical Marijuana-Infused Product waste must be made unusable and Unrecognizable prior to leaving the Licensed Premises.

E. Methods to Make Waste

Unusable and Unrecognizable.

Medical Marijuana and Medical

Marijuana-Infused Product waste shall be rendered unusable and Unrecognizable through one of the following methods:

Grinding and incorporating the marijuana waste with non-consumable, solid wastes listed below such that the resulting mixture is at least 50 percent non-marijuana waste:

Paper waste;

b. Plastic waste;

c. Cardboard waste;

d. Food waste;

e. Grease or other compostable oil waste;

f. Bokashi, or other compost activators;

g. Other wastes approved by the State Licensing Authority that will render the Medical Marijuana and Medical Marijuana-Infused Product waste unusable and Unrecognizable as marijuana; and

h. Soil.

F. After Waste is Made Unusable and Unrecognizable.

After the Medical Marijuana and Medical Marijuana-Infused Product waste is made unusable and Unrecognizable, then the rendered waste shall be:

1.         Disposed of at a solid waste site and disposal facility that has a Certificate of

Designation from the local governing body;

2.         Deposited at a compost facility that has a Certificate of Designation from the

Department of Public Health and Environment; or

3.         Composted on-site at a facility owned by the generator of the waste and operated in compliance with the Regulations Pertaining to Solid Waste Sites and Facilities (6 CCR 1007-2, Part 1) in the Department of Public Health and Environment.

G. Proper Disposal of Waste.

A Licensee shall not dispose of Medical Marijuana and

Medical Marijuana-Infused Product waste in an unsecured waste receptacle not in possession and control of the Licensee.

H. Inventory Tracking Requirements

1. In addition to all other tracking requirements set forth in these rules, a Licensee shall utilize the Inventory Tracking System to ensure its post-harvest waste materials are identified, weighed and tracked while on the Licensed Premises until disposed of.

2. All Medical Marijuana waste must be weighed before leaving any Medical Marijuana Business. A scale used to weigh Medical Marijuana waste prior to entry into the Inventory Tracking System shall be certified in accordance with measurement standards established in Article 14 of Title 35, C.R.S.

See Rule M 309 –Medical Marijuana Business: Inventory Tracking System.

3.  A Licensee is required to maintain accurate and comprehensive records regarding waste material that accounts for, reconciles, and evidences all waste activity related to the disposal of Marijuana.

See Rule M 901 –Business Records Required.

4.  A Licensee is required to maintain accurate and comprehensive records regarding any waste material produced through the trimming or pruning of a Medical Marijuana plant prior to harvest, which must include weighing and documenting all waste. Unless required by an Inventory Tracking System procedure, records of waste produced prior to harvest must be maintained on the

Licensed Premises. All waste, whether produced prior or subsequent to harvest, must be disposed of in accordance with this rule and be made unusable and unrecognizable.

11)Henry: What type of security will be required at the facilities? Besides well locked areas containing the medicine, will we need to have video surveillance as well? And in the case of large cultivation  and processing centers, will we allowed to have guards to prevent theft and vandalism? We are talking about a million dollars’ worth of equipment and product in many cases.

Phillip: Security Alarm Systems and Lock Standards

Security Alarm Systems

Minimum Requirements

Each Licensed Premises shall have a Security Alarm System, installed by an Alarm Installation Company, on all perimeter entry points and perimeter windows.

2. Each Licensee must ensure that all of its Licensed Premises are continuously monitored. Licensees may engage the services of a Monitoring Company to fulfill this requirement.

3. The Licensees shall maintain up to date and current records and existing contracts on the Licensed Premises that describe the location and operation of each Security Alarm System, a schematic of security zones, the name of the Alarm Installation Company, and the name of any Monitoring Company.

Business Records Required.

4. Upon request, Licensees shall make available to agents of the Division or relevant local licensing authority or other state or local law enforcement agency, for a purpose authorized by the Medical Code or any other state or local law enforcement purpose, all information related to Security Alarm Systems, Monitoring, and alarm activity.

5. Any outdoor Optional Premises Cultivation Facility, or greenhouse cultivation, is a Limited Access Area and must meet all of the requirements for Security Alarm Systems described in this rule. An outdoor or greenhouse Optional Premises

Cultivation Facility must provide sufficient security measures to demonstrate that outdoor areas are not readily accessible by unauthorized individuals. This shall, at a minimum include, perimeter fencing designed to prevent the general public from entering the Limited Access Areas. It shall be the responsibility of the Licensee to maintain physical security in a manner similar to an Optional

Premises Cultivation Facility located in an indoor Licensed Premises so it can be fully secured and alarmed

The purpose of this rule is to ensure adequate control of the Licensed Premises and the Medical Marijuana and Medical Marijuana-Infused Product contained therein. This rule also establishes the minimum guidelines for security requirements for alarm systems, and commercial locking mechanisms for maintaining adequate security.

Security Alarm Systems and Lock Standards

A. Security Alarm Systems

Minimum Requirements

1. Each Licensed Premises shall have a Security Alarm System, installed by an Alarm Installation Company, on all perimeter entry points and perimeter windows.

2. Each Licensee must ensure that all of its Licensed Premises are continuously monitored. Licensees may engage the services of a Monitoring Company to fulfill this requirement.

3. The Licensees shall maintain up to date and current records and existing contracts on the Licensed Premises that describe the location and operation of each Security Alarm System, a schematic of security zones, the name of the Alarm Installation Company, and the name of any Monitoring Company.

Business Records Required.

4. Upon request, Licensees shall make available to agents of the Division or relevant local licensing authority or other state or local law enforcement agency, for a purpose authorized by the Medical Code or any other state or local law enforcement purpose, all information related to Security Alarm Systems, Monitoring, and alarm activity.

5. Any outdoor Optional Premises Cultivation Facility, or greenhouse cultivation, is a Limited Access Area and must meet all of the requirements for Security Alarm Systems described in this rule. An outdoor or greenhouse Optional Premises Cultivation Facility must provide sufficient security measures to demonstrate that outdoor areas are not readily accessible by unauthorized individuals. This shall, at a minimum include, perimeter fencing designed to prevent the general public from entering the Limited Access Areas. It shall be the responsibility of the Licensee to maintain physical security in a manner similar to an Optional Premises Cultivation Facility located in an indoor Licensed Premises so it can be fully secured and alarmed

B. Lock Standards

Minimum Requirement

1. At all points of ingress and egress, the Licensee shall ensure the use of a commercial-grade, non-residential door locks.

2. Any outdoor Optional Premises Cultivation Facility, or greenhouse cultivation, must meet all of the requirements for the lock standards described in this rule

Video Surveillance

A. Minimum Requirements

The following video surveillance requirements shall apply to all Medical Marijuana Businesses:

1. Prior to exercising the privileges of a Medical Marijuana Business, an Applicant must install fully operational video surveillance and camera recording system. The recording system must record in digital format and meet the requirements outlined in this rule.

2. All video surveillance records and recordings must be stored in a secure area that is only accessible to a Licensee's management staff.

3. Video surveillance records and recordings must be made available upon request to the Division, the relevant local licensing authority, or any other state or local law enforcement agency for a purpose authorized by the Medical Code or for any other state or local law enforcement purpose.

4. Video surveillance records and recordings of point-of-sale areas shall be held in confidence by all employees and representatives of the Division, except that the Division may provide such records and recordings to the relevant local licensing authority, or any other state or local law enforcement agency for a purpose authorized by the Medical Code or for any other state or local law enforcement purpose.

B. Video Surveillance Equipment

1. Video surveillance equipment shall, at a minimum, consist of digital or network video recorders, cameras capable of meeting the recording requirements described in this rule, video monitors, digital archiving devices, and a color printer capable of delivering still photos.

2. All video surveillance systems must be equipped with a failure notification system that provides prompt notification to the Licensee of any prolonged surveillance interruption and/or the complete failure of the surveillance system.

3. Licensees are responsible for ensuring that all surveillance equipment is properly functioning and maintained so that the playback quality is suitable for viewing and the surveillance equipment is capturing the identity of all individuals and activities in the monitored areas.

4. All video surveillance equipment shall have sufficient battery backup to support a minimum of four hours of recording in the event of a power outage.

C. Placement of Cameras and Required Camera Coverage

1. Camera coverage is required for all Limited Access Areas, point-of-sale areas, security rooms, all points of ingress and egress to Limited Access Areas , all areas where Medical Marijuana or Medical Marijuana Infused Product is displayed for sale, and all points of ingress/egress to the exterior of the Licensed Premises.

2. Camera placement shall be capable of identifying activity occurring within 20 feet of all points of ingress and egress and shall allow for the clear and certain identification of any individual and activities on the Licensed Premises.

3. At each point-of-sale location, camera coverage must enable recording of the patients, caregiver or customer(s) and employee(s) facial features with sufficient clarity to determine identity.

4. All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage points.

5. The system shall be capable of recording all pre-determined surveillance areas in any lighting conditions. If the Licensed Premises has a Medical Marijuana cultivation area, a rotating schedule of lighted conditions and zero-illumination can occur as long as ingress and egress points to Flowering areas remain constantly illuminated for recording purposes.

6. Areas where Medical Marijuana is grown, tested, cured, manufactured, or stored shall have camera placement in the room facing the primary entry door at a height which will provide a clear unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment.

7. Cameras shall also be placed at each location where weighing, packaging, transport, preparation, or tagging activities occur.

8. At least one camera must be dedicated to record the access points to the secured surveillance recording area.

9. All outdoor cultivation areas must meet the same video surveillance requirements applicable to any other indoor Limited Access Areas.

D. Location and Maintenance of Surveillance Equipment

1. The surveillance room or surveillance area shall be a Limited Access Area.

2. Surveillance recording equipment must be housed in a designated, locked and secured room or other enclosure with access limited to authorized employees, agents of the Division and relevant local licensing authority, state or local law enforcement agencies for a purpose authorized by the Medical Code or for any other state or local law enforcement purpose, and service personnel or contractors.

3. Licensees must keep a current list of all authorized employees and service Personnel who have access to the surveillance system and/or room on the Licensed Premises. Licensees must keep a surveillance equipment maintenance activity log on the Licensed Premises to record all service activity including the identity of the individual(s) performing the service, the service date and time and

the reason for service to the surveillance system.

4. Off-site Monitoring and video recording storage of the Licensed Premises by the Licensee or an independent third-party is authorized as long as standards exercised at the remote location meets or exceeds all standards for on-site Monitoring.

5. Each Medical Marijuana Licensed Premises located in a common or shared building must have a separate surveillance room/area that is dedicated to that specific Licensed Premises. Commonly-owned Medical Marijuana Businesses located in the same local jurisdiction may have one central surveillance room located at one of the commonly owned Licensed Premises which simultaneously serves all of the commonly-owned Medical Marijuana Businesses. The facility that does not house the central surveillance room is required to have a review station, printer, and map of camera placement on the premises. All minimum requirements for equipment and security standards as set forth in the section apply to the review station.

6. Licensed Premises that combine both a Medical Marijuana Business and a Retail Marijuana Establishment may have one central surveillance room located at the shared Licensed Premises.

Medical Marijuana Business and Retail Marijuana Establishment: Shared Licensed Premises and Operational Separation.

E. Video Recording and Retention Requirements

1. All camera views of all Limited Access Areas must be continuously recorded 24 hours a day. The use of motion detection is authorized when a Licensee can demonstrate that monitored activities are adequately recorded.

2. All surveillance recordings must be kept for a minimum of 40 days and be in a Format that can be easily accessed for viewing. Video recordings must be archived in a format that ensures authentication of the recording as legitimately captured video and guarantees that no alteration of the recorded image has taken place.

3. The Licensee's surveillance system or equipment must have the capabilities to produce a color still photograph from any camera image, live or recorded, of the Licensed Premises.

4. The date and time must be embedded on all surveillance recordings without significantly obscuring the picture. The date and time must be synchronized with any point-of-sale system.

5. Time is to be measured in accordance with the official United States time established by the National Institute of Standards and Technology and the U.S. Naval Observatory at:

http://www.time.gov/timezone.cgi?Mountain/d/

6. After the 40 day surveillance video retention schedule has lapsed, surveillance video recordings must be erased or destroyed prior to sale or transfer of the facility or business to another Licensee, or being discarded or disposed of for any other purpose. Surveillance video recordings may not be destroyed if the Licensee knows or should have known of a pending criminal, civil or administrative investigation or any other proceeding for which the recording may contain relevant information.

F. Other Records

1. All records applicable to the surveillance system shall be maintained on the Licensed Premises. At a minimum, Licensees shall maintain a map of the camera locations, direction of coverage, camera numbers, surveillance equipment maintenance activity log, user authorization list and operating instructions for the surveillance equipment.

2. A chronological point-of-sale transaction log must be made available to be used in conjunction with recorded video of those transactions

12)Henry: Regarding 12.34  Reporting of Discrepancy, Loss or Theft  Will the state employ a certain Inventory Control System, or will each applicant have their own system to use?

Phillip: Medical Marijuana Business: Inventory Tracking System

A. Inventory Tracking System Required. A Medical Marijuana Business is required to use the Inventory Tracking System as the primary inventory tracking system of record. A Medical Marijuana Business must have an Inventory Tracking System account activated and functional on or before December 31, 2013. After December 31, 2013, a Medical

Marijuana Business without an Inventory Tracking System account that is activated and functional shall not operate or exercise any privileges of a license. Medical Marijuana

Businesses converting to or adding a Retail Marijuana Establishment must follow the inventory transfer guidelines detailed in Rule R 309 (D) below.

B. Inventory Tracking System Access

Inventory Tracking System Administrator

1. Inventory Tracking System Administrator Required

. A Medical Marijuana Business must have at least one individual Owner who is an Inventory Tracking System Administrator. A Medical Marijuana Business may also designate additional Owners and occupationally licensed employees to obtain Inventory

Tracking System Administrator accounts.

2. Training for Inventory Tracking System Administrator Account

. In order to obtain an Inventory Tracking System Administrator account, a person must attend and successfully complete all required Inventory Tracking System training. The Division may also require additional ongoing, continuing education for an individual to retain his or her Inventory Tracking System Administrator account.

C. Inventory Tracking System Access

Inventory Tracking System User Accounts

. A  Medical Marijuana Business may designate licensed Owners and employees who hold a valid Occupational License as an Inventory Tracking System User. A Medical Marijuana Business shall ensure that all Owners and Occupational Licensees who are granted

Inventory Tracking System User account access for the purposes of conducting inventory tracking functions in the system are trained by Inventory Tracking System Administrators in the proper and lawful use of Inventory Tracking System.

D. Medical Marijuana Business License Conversions

-

Declaring Inventory Prior to

Exercising Licensed Privileges as a Medical Marijuana Business

1. Medical Marijuana Inventory Transfer to Retail Marijuana Establishments

. Each Medical Marijuana Business that is either converting to or adding a Retail Marijuana Establishment license must create a Retail Marijuana Inventory Tracking System account for each license it is converting or adding. A Medical Marijuana Business must transfer all relevant Medical Marijuana inventory into the Retail Marijuana Establishment's Inventory Tracking System account and affirmatively declare those items as Retail Marijuana and Retail Marijuana Product.

2. No Further Transfer Allowed

. Once a Licensee has declared any portion of its Medical Marijuana inventory as Retail Marijuana, no further transfers of inventory from Medical Marijuana to Retail Marijuana shall be allowed.

E. RFID Tags Required

1. Authorized Tags Required and Costs. Licensees are required to use RFID tags issued by a Division-approved vendor that is authorized to provision RFID tags for the Inventory Tracking System. Each licensee is responsible for the cost of all RFID tags and any associated vendor fees.

2. Use of RFID Tags Required. A Licensee is responsible to ensure its inventories are properly tagged where the Inventory Tracking System requires RFID tag use.

A Medical Marijuana Business must ensure it has an adequate supply of RFID tags to properly tag Medical Marijuana and Medical Marijuana-Infused Product as required by the Inventory Tracking System.

F. General Inventory Tracking System Use

1. Reconciliation with Inventory.

All inventory tracking activities at a Medical Marijuana Business must be tracked through use of the Inventory Tracking System. A Licensee must reconcile all on-premises and in-transit Medical

Marijuana and Medical Marijuana-Infused Product inventories each day in the Inventory Tracking System at the close of business.

2. Common Weights and Measures.

a. A Medical Marijuana Business must utilize a standard of measurement that is supported by the Inventory Tracking System to track all Medical Marijuana and Medical Marijuana-Infused Product.

b. A scale used to weigh such product prior to entry into the Inventory

Tracking System shall be certified in accordance with measurement standards established in Article 14 of Title 35, C.R.S.

3. Inventory Tracking System Administrator and User Accounts –Security and Record

a. A Medical Marijuana Business shall maintain an accurate and complete list of all Inventory Tracking System Administrators and Inventory Tracking System Users for each Licensed Premises. A Medical Marijuana Business shall update this list when a new Inventory Tracking System User is trained. A Medical Marijuana Business must train and authorize any new Inventory Tracking System Users before those Owners or employees may access Inventory Tracking System or input, modify, or delete any information in the Inventory Tracking System.

b. A Medical Marijuana Business must cancel any Inventory Tracking System Administrators and Inventory Tracking System Users from their associated Inventory Tracking System accounts once any such individuals are no longer employed by the Licensee or at the Licensed Premises.

c. A Medical Marijuana Business is accountable for all actions employees take while logged into the Inventory Tracking System or otherwise conducting Medical Marijuana or Medical Marijuana-Infused Product inventory tracking activities.

4. Secondary Software Systems Allowed

a. Nothing in this rule prohibits a Medical Marijuana Business from using separate software applications to collect information to be used by the business including secondary inventory tracking or point of sale systems

b. A Licensee must ensure that all relevant Inventory Tracking System data is accurately transferred to and from the Inventory Tracking System for the purposes of reconciliations with any secondary systems.

c. A Medical Marijuana Business must preserve original Inventory Tracking System data when transferred to and from a secondary application(s).

Secondary software applications must use Inventory Tracking System data as the primary source of data and must be compatible with updating to the Inventory Tracking System.

G. Conduct While Using Inventory Tracking System

1. Misstatements or Omissions Prohibited.

A Medical Marijuana Business and its designated Inventory Tracking System Administrator(s) and Inventory Tracking System User(s) shall enter data into the Inventory Tracking System that fully and transparently accounts for all inventory tracking activities. A Medical Marijuana Business is responsible for the accuracy of all information entered into the Inventory Tracking System. Any misstatements or omissions may be considered a license violation affecting public safety.

2. Use of Another User's Login Prohibited.

Individuals entering data into the Inventory Tracking System shall only use that individual's Inventory Tracking System account.

3. Loss of System Access. If at any point a Medical Marijuana Business loses access to the Inventory Tracking System for any reason, the Medical Marijuana Business must keep and maintain comprehensive records detailing all Medical Marijuana and Medical Marijuana-Infused Product tracking inventory activities that were conducted during the loss of access. Once access is restored, all Medical Marijuana and Medical Marijuana-Infused Product inventory tracking activities that occurred during the loss of access must be entered into the Inventory Tracking System. A Medical Marijuana Business must document when access to the system was lost and when it was restored. A Medical Marijuana Business shall not transport any Medical Marijuana or Medical Marijuana-Infused Product to another Medical Marijuana Business until such time as access is restored and all information is recorded into the Inventory Tracking System.

H. System Notifications

1. Compliance Notifications.

A Medical Marijuana Business must monitor all compliance notifications from the Inventory Tracking System. The Licensee must resolve the issues detailed in the compliance notification in a timely fashion.

Compliance notifications shall not be dismissed in the Inventory Tracking System until the Medical Marijuana Business resolves the compliance issues detailed in the notification.

2. Informational Notifications.

A Medical Marijuana Business must take appropriate action in response to informational notifications received through the Inventory Tracking System, including but not limited to notifications related to RFID billing, enforcement alerts, and other pertinent information.

I. Lawful Activity Required.

Proper use of the Inventory Tracking System does not relieve a Licensee of its responsibility to maintain compliance with all laws, rules, and other requirements at all times.

J. Inventory Tracking System Procedures Must Be Followed.

A Medical Marijuana Business must utilize the Inventory Tracking System in conformance with these rules and Inventory Tracking System procedures

K. Transition Period.

Notwithstanding any other rule, a Medical Marijuana Business shall not be required to utilize the Inventory Tracking System until that Medical Marijuana Business has an Inventory Tracking System Trained Administrator and has accounted for all of its on-hand Medical Marijuana and Medical Marijuana-Infused Product in the Inventory Tracking System. Until that time, a Medical Marijuana Business must ensure that its books and records are maintained in such a manner that its entire inventory is fully accounted for, which includes tracking all Medical Marijuana from seed, cutting or receipt to sale or transfer and all Medical Marijuana-Infused Products from manufacture or receipt to sale or transfer. Additionally, a Medical Marijuana Business must obtain a valid transport manifest from the Division, which must carried by a Licensee transporting any Medical Marijuana or Medical Marijuana-Infused Products at all times.


All my best,

Henry Levinski

VP of Operations

Medcan Foundation, Inc.

817.528.2475 MB

henry.levinski@sbcglobal.net


Texas DPS Posts Proposed Rules For The Compassionate Use Program

MedCan Foundation - Thursday, July 16, 2015



From Dante’s Desk:

It is with great pleasure that I write this e-correspondence to all of you and provide you with a link to the DPS website http://dps.texas.gov/RSD/CUP/index.htm, particularly since the proposed rules and regulations of the Compassionate Use Program have been posted. Additionally, I would strongly recommend for each one of you to read it and should you find any type of disconnect and/or any disagreements please feel free to post your comments. All of our observations will only be noted if we turn them in prior to July 23, 2015; if any one of you wishes to make your voice heard, this will be your only opportunity. Furthermore, if you wish to review some of the comments that we Medcan have been sending and discussing with the DPS executive personnel please click on our Medcan Foundation Blog and you will find some of the highlights of our conversations http://www.medcanfoundation.com/medcanblog.

It is time for all of us to get serious about this, the licensing applications will be out pretty quick and we don’t want to be left out in the cold. Instead we need to have our finances in order, our professional relationships airtight and our business plan in our back pocket. This is the part of the process that all of us have been waiting for and it’s time for us to capitalize on the opportunity. Should any of you have any kind of questions after reviewing the regulations in their entirety please do not hesitate to contact me at 214/733-0868 or alternately at dpicazo@msn.com



From Henry’s Desk:

Don’t forget about our two day seminar in Austin August 8th & 9th. We will be discussing the licensing and application process, as well as the various licenses available and the qualifications for each here in Texas. Medcan Foundation seminars offer an outstanding curriculum designed for people working in the industry, potential patients wanting to be well informed on the subject or those wanting to invest in the rapidly growing medical cannabis world. The seminars are the quintessential precursor to those either wanting to start their own business or work within the industry or patients in need of information about medical cannabis, and must I remind you that each and every one of our seminars has always sold out. Accordingly, please reserve your seats as soon as you can for the reason that this will be a seminar that will help prepare you to join in the Texas medical cannabis industry.                                                                                                                                                            

                                                                                                                                     Enroll Now =>

Additionally, we are already getting students signing up for our seminar in San Juan, Puerto Rico on October 17th & 18th. This will be held at the Courtyard by Marriott Isla Verde Beach Resort http://www.marriott.com/hotels/travel/sjuiv-courtyard-isla-verde-beach-resort/ , and rooms there are at $159/night plus tax, also flights to Puerto Rico booked now through Spirit Airlines are only $384 round trip http://www.spirit.com/Default.aspx!

Please be sure to follow and friend us on our Facebook page to see daily news and updates at www.facebook.com/med.can.13.

All my best,

Henry Levinski

VP of Franchise Operations

Medcan Foundation, Inc.

817.528.2475 MB

henry.levinski@sbcglobal.net

Added Questions For The Compassionate Use Program

MedCan Foundation - Tuesday, July 14, 2015


Dear Mr. Grigsby,

Below please find additional questions on the Texas Compassionate Use Program, and again we will post these to your website as well.

 1)     Henry: How will we be allowed to imports seeds to begin the grow operations? Will we be allowed a one-time exemption to bring seeds in from say Colorado for the first planting or, as most other states have done, is it a ‘don’t ask don’t tell’ for the initial planting where we only record the number of plants growing for the state to inventory and then follow?

Phillip: This is a good question, as obviously seeds/genetics will have to be sourced from somewhere.  Honestly, I believe we will have to source seeds from Europe or the middle east.  There are probably 5 strains in existence that fit the 20:1 ratio requirements. I don’t believe the legislators and most people involved realize how hard it is going to be to find these starting genetics.  By restricting to actual plants to this ratio it is going to make it almost impossible for anyone to comply with the law.  As I originally was under the impression that we could remove the THC in the lab and have finished products that complied with the 20:1 ratio.  At this point, someone will have to make a trip to Europe or Israel and find and identify the right and necessary seeds since this product could not be found in Texas today.  Once we have the seeds, tissue culture will take care of the rest.  Though, finding them will be the hard part.  Another option would be to start by growing high CBD hemp instead of cannabis.  At least until we find the proper genetics elsewhere or develop them in our genetics lab.

2)      2)  Henry: Will the grow and lab operations be allowed to start 30-90 days earlier than the dispensaries to allow for the plants to be growing and then processed so the medication will be ready for the dispensaries? It will take at least 90 days for the plants to reach maturity and then be processed before the medication can be available for use.

Phillip: This is also a good point.  Not to mention, there will be 2-3 weeks were we will have to test different products/delivery systems to make sure they work as they are supposed to.  We naturally will have a host of different products thought of, designed and methodologies ready for their production.  However, we will never know if they work the way they are supposed to until we have them loaded with the actual product. 

     The testing lab(s) will need at least 30-60 days to make sure that all systems; procedures and methodologies are in place and working.

3)   3) Henry: How many testing labs will there be in the state and will these labs be certified by the state? We would recommend having a lab in each of the major population centers in order to expedite the testing and get the medicine to the patients with the least delay. We would also welcome having these testing centers certified by the state as to following proper testing protocols, maintaining proper recordkeeping and having qualified personnel on site to perform the tests.

     Phillip: Eventually, I would agree with having labs in every major market.  However, due to the initial high cost to build-out and the uncertainty of the number of patients, I would not recommend building more than one lab initially.  If the market can support more than one lab, it will be very easy to duplicate the facility wherever it is needed.  The labs need to be certified by the state, if the state is going to mandate testing.  The state has to mandate testing in order to determine the CBD:THC ratio.

4)     4) Henry: Transporting low-THC cannabis – will we need to submit vehicle and driver information when the cannabis is transported from the growing facility to the processing/lab facility and from the processing/lab to the dispensary? This should help in maintaining the security of the product and hopefully alleviate any misdirection of the product.

Phillip: This is a good idea in general.  I know that cell phone gps can track location in real time.  Perhaps, that can be linked with the RFID tags in some way.  I honestly believe that samples being transported to a testing facility should be taken by a certified third party.  Actually, the samples themselves should be acquired by a third party (or a representative/employee of the testing lab) to ensure that proper samples are being taken.  It would be very easy for someone to grow a handful of CBD plants and a warehouse of high THC cannabis. Then send samples just from the CBD plants to keep the authorities at bay.  I realize this would be very hard to implement.  As, Colorado has had similar language in its rules and regulations for almost a year, but has yet to implement such a program.

5)       5) Henry: Have you any idea as to the amount of medicine a patient can purchase at one time? A 30 day supply would be approximately 9 grams (based on the average of 300mg per day) or about 1/3 ounce.

Phillip: I believe this is a good limit from our stand point.  The more we can get the patients in our facilities the better.  However, from a compassion stand point, it might help patients that live farther from a dispensary to be able to purchase 1-2oz at a time.  Maybe there can be a provision for patients that live more than X number of miles from their dispensary.

6)     6) Dante: If I am a pharmacist and owner of an independent pharmacy, or a medical doctor that owns a clinic or wellness center that offers alternative medicine such as chiropractic services would I be able to section off a secure area of my current business to dispense this medicine from? Seeing as how this bill was written with a very limited medication (20:1 CBD oil only) and a very limited patient base (intractable epilepsy only) smaller dispensing operations would only seem prudent and cost effective.

      Be sure to sign up for our seminar in Austin on August 8th & 9th where we will discuss in detail all information we have received from the Texas DPS as well as all the questions and comments we have presented to them. Time is of the essence, now is when we need to be proactive in preparing for the licensing process and this will be fully discussed in the seminar. Please know that we sell out at every seminar, so register early to reserve your seat and come prepared to learn how you can be part of the future of cannabis in Texas.

All my best,

Dante Picazo, CHA 

President & CEO

Medcan Foundation, Inc.

214-733-0868 MB

817-528-2475 OF

dpicazo@msn.com

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