Superior Court Judge Overturns State's Denial Of Medical Dispensary licenses

Jacob Redmond

Well-Known Member
A Superior Court judge has overturned the state's decision to deny Medical Marijuana of Massachusetts a license to open medical marijuana dispensaries in Plymouth, Mashpee and Taunton.

Judge Mitchell Kaplan ruled that the state's Department of Public Health did not comply with its own regulations when it denied the license last year.

Among concerns documented in the judgment, Kaplan suggests that the state created a licensing phase that was not included in its regulations.

"The so-called 'verification phase,' which resulted in MMM's non-selection was not mentioned in the regulations, the department's informational materials provided to prospective applicants, or the Jan. 31 letter," the ruling reads.

The state has 60 days to appeal the decision.

Department of Public Health spokesman Scott Zoback said the agency is reviewing the decision and stressed that the medical marijuana program's priority is ensuring safe and appropriate patient access across the state.

Initially led by former U.S. Rep. William Delahunt, MMM was originally awarded 160 points out of 163 - the highest marks in the applicant pool. So, MMM representatives cried foul last year when the state announced its subsequent and unexpected decision to deny the company the licenses. MMM appealed that decision on the grounds it was made in response to pressure from the governor's office and state legislators, and not for any legitimate reason.

Delahunt resigned, saying he needed to focus on other aspects of his career.

"I can honestly say that I lost my faith in the government's process during this but I was completely enthralled by the fact that both judge (Suffolk Superior Court Judge Thomas Billings) Billings and Kaplan said that we were wronged," MMM COO Jonathan Herlihy said. "The thing that restored my faith in the system is that the judges read everything and looked at everything and made the right decision. I was amazed."

According to the denial letter, the crux of the conflict swirled around conversations, among other issues, and whether MMM representatives had implied something they shouldn't have in the company's application about the support it had received from then-Senate President Therese Murray, D-Plymouth.

MMM explained that the reference to Murray was simply to provide full disclosure about those to whom the company had spoken regarding its proposed clinics and that there was never any reference to suggest support from those people.

In a footnote on the appeal, Kaplan takes issue with the state's reasoning.

"The inclusion of this ... is suggestive of a search for reasons to support the department's reversal of its decision to select MMM," he writes. "If this was the only basis for the department's decision to non-select MMM, the court would have no difficulty finding it arbitrary and capricious."

The state also questioned MMM's plan to give 50 percent of its revenue to a management firm, a figure that was whittled down to just 25 percent.

But MMM said the number didn't take into account expenditures and the fact that the company would be in the red the first year. Kaplan suggested that the state came to the wrong conclusion regarding this issue.

"There is intrinsically nothing unlawful, or even untoward, in a nonprofit corporation contracting with a related for-profit entity, as long as the terms of the contract are fair and reasonable," Kaplan states. "Indeed, the Department has acknowledged that other successful applicants had business plans that included management contracts with related parties."

The judge goes on to state that MMM should be given the opportunity to amend the terms of this arrangement if it is unacceptable to the state.

Herlihy said MMM will work with the DPH to amend any deficiencies in the application and also on an alternative third location for a dispensary, since there is already another dispensary coming online in Taunton. Other counties in the state need dispensaries, he said.

Meanwhile, MMM is still paying rent at 9 Collins Ave. in anticipation of constructing a growing facility there, and Herlihy is hopeful the company will be able to move ahead with this plan in addition to creating a dispensary in Mashpee.

It's unclear how medical marijuana dispensaries will be impacted if the state legalizes recreational marijuana use — an effort that is underway. Herlihy said the governor wants to monitor Colorado, which legalized both medical and recreational use of marijuana, to determine the impacts.

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Full Article: MEDICAL MARIJUANA OF MASSACHUSETTS: Superior Court judge overturns state's denial of medical marijuana dispensary licenses - News - Wicked Local Plymouth - Plymouth, MA
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