Minnesota’s medical marijuana regulators go over budget with inspections

Minnesota’s medical marijuana regulators go over budget with inspections

ST. PAUL, Minn. (AP) Minnesotas medical marijuana program needs extra state funding to cover the costs of its patient database and inspections of drug manufacturers, just a few of the regulations that make it one of the most restrictive such laws in the country.

Its the latest reminder of the financial constraints on the program borne from the heavy restrictions on Minnesotas 2014 law.

The plant form of marijuana remains banned under the law, requiring the states two medical manufacturers to concoct marijuana oils, pills and vapors with routine state inspections and secondary lab testing. Just 10 severe conditions such as cancer and epilepsy qualify for the program, a number that has grown in recent years with a few additions.

The states manufacturers combined to lose more than $5 million in the first year of legal medical marijuana sales in 2015. And patient count hasnt met projections, exacerbating high prescription costs for patients that the two companies who cultivate and sell medication have only recently begun to address with modest price decreases.

The Office of Medical Cannabis request for more than $500,000 over the next two years is just a fraction of the $40 billion-plus budget Minnesotas Legislature will assemble this year. But state regulators say that money is critical to cover the higher-than-expected costs for maintenance of their around-the-clock patient registry and the costs of performing 120 inspections or more each year.

This is new for everybody, the government, the patients and the businesses included. Its to be expected that there would be some bumps in the road, said Rep. Pat Garofalo, a Republican with a key role overseeing the program.

The state already provides about $1.4 million a year to help cover operating costs, and regulators can cover their oversight costs by charging manufacturers, LeafLine Labs and Minnesota Medical Solutions, an annual registration fee. But after increasing the manufacturers annual fee from $94,000 to $146,000 last year, Gov. Mark Daytons budget proposal says additional state funding is essential to help avoid an increase the cost of medical cannabis to program participants.

Those costs range from software licensing and fixing ...

Read More