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Regulatory Changes Creating Challenges And Opportunities In Medical Cannabis

By on July 20, 2016

SAN JUA­N—New regulations for the medical use of cannabis have set more flexible ownership requirements for all cannabis establishments and have created new licenses for cannabis transportation, storage and distribution, thus opening new opportunities for the growing medical tourism sector.

medical cannabis“Although the new regulations significantly increase the cost of some of the existing licenses, they also facilitate securing external capital and pave the way for hospitals that wish to enter the medicinal cannabis market for visiting foreign patients,” explained Goodwin Aldarondo, president of Puerto Rico Legal Marijuana.

“It is important for all entrepreneurs and health professionals interested in the issue of medicinal cannabis to carefully analyze the new regulations,” he added.

After the drafting of the new regulation by the Department of Health, the Puerto Rico State Department authorized the regulation on July 8, substituting regulation 155, which had been in place since last January.


New licenses

According to Aldarondo, as part of the regulation changes, a new set of licenses have been created for businesses interested in the transportation of the cannabis plant and its products ($30,000), storage facilities ($35,000) and distribution ($75,000).  The lawyer also explained that required new licenses do not affect the already existing licenses for doctors, cultivation, manufacturing (processing of cannabis plants and product fabrication) and dispensaries for the sale of products to patients, which remain in effect.

Furthermore, Regulation 8766 requires anyone interested in working in the medical cannabis industry to obtain a new occupational license. To obtain the license, those interested must take a course approved by the Puerto Rico Health Department and pass and a required examination with a score over 70 percent.


Ownership changes

In terms of cannabis businesses’ ownership structure, the new regulations allow nonresident investors to become owners of up to 49% of a local medical cannabis establishment dedicated to the cultivation, processing, laboratory or dispensary.

However, majority stockholders must be local residents. Previous regulations limited ownership to individuals residing in Puerto Rico for the last two (2) years.

Aldarondo anticipated that the easing of ownership requirements would facilitate the process of raising capital from abroad to start operations and recruiting personnel with the needed expertise on the cultivation and elaboration of medicinal cannabis products.


Medical tourism opportunities

AMSTERDAM, NETHERLANDS - FEBRUARY 07:  A cannabis plant grows in the Amsterdam Cannabis College, a non profit charitable organisation that gives information on cannabis and hemp use on February 7, 2007 in Amsterdam, Netherlands. The city council in Amsterdam has recently voted in favour of introducing a citywide ban on smoking marijuana in public areas. A successful trial ban in the De Baarsjes district of Amsterdam has been declared a success after a reduction in anti social behaviour.  (Photo by Christopher Furlong/Getty Images)

 (Photo by Christopher Furlong/Getty Images)

The repealed regulation 155 contemplated in a non-specific manner the possibility of providing treatment with medicinal cannabis to visiting foreign patients, something corrected in the new regulation 8766.

“The integration of medicinal cannabis opens new business opportunities in medical tourism for both doctors and hospitals”, said Aldarondo.

New regulations allow nonresident patients to obtain and consume medicinal cannabis by complying with certain conditions. If the patient comes from the U.S., he or she must possess a valid patient card from a state that authorizes medicinal cannabis. Said State must require, as Puerto Rico does, a doctor’s recommendation.

The medical condition to be treated must be one of those recognized in local regulations. The patient card must have a photo, expedition date and be currently valid. Lastly, the patient will need a recommendation from a doctor in Puerto Rico.

If the patient does not come from the United States, he or she must present medical evidence of the condition to be treated and obtain the recommendation of a certified doctor in Puerto Rico.

“We assume that the criteria for visiting foreign patients will be the same as for residents of states where medical cannabis is not yet recognized”, said Aldarondo.


Looking at the Colorado model

Puerto Rico Legal Marijuana is organizing an educational trip to the state of Colorado for those interested in obtaining more information on the medical cannabis industry from September 12 to the 16. Participants will visit cultivation centers, dispensaries, cannabis extraction facilities, treatment centers and product manufacturing facilities. Participants will also attend seminars on legal aspects, lighting systems, security, fertilizers and pesticides. The course has been approved by the Puerto Rico Supreme Court for 21 credits of continued professional education for lawyers.

“This trip to Colorado is the first of a series, where participants will have the experience of seeing up close the medical cannabis industry and obtain valuable information on the best practices for each phase, from seed to sale,” stated Aldarondo.

Regulations in the state of Colorado will also be analyzed and compared to those enacted by the Puerto Rico Health Department.

Puerto Rico Legal Marijuana is a nonprofit organization with the goal of educating others about the legal considerations related to medicinal cannabis in Puerto Rico and providing seminars for the professional development of any person interested in joining the cannabis industry.


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