LANSING, MI -- Marijuana dispensaries that handle patient-to-patient sales are not protected under the state's medical pot law, according to a new ruling from the Michigan Supreme Court.
The court, in a four-member majority opinion released this morning, upheld an appeals court ruling affirming the state's right to shut down the "Compassionate Apothecary" dispensary in Mt. Pleasant for violating Michigan's public health code.
The ruling, according to Michigan Attorney General Bill Schuette, empowers county prosecutors across the state to shut down remaining dispensaries that sell marijuana on the grounds that they are a public nuisance.
Brandon McQueen and Matthew Taylor, owners of the CA dispensary, rented lockers to registered patients and caregivers to exchange marijuana at an agreed-upon price. McQueen and Taylor, also registered with the state, kept a service fee for each transaction, according to court records.
In today's ruling, the Supreme Court said state law "does not contemplate patient-to-patient sales of marijuana for medical use and that, by facilitating such sales, defendants' business constituted a public nuisance."
But justices also said the appeals court erred when it determined that state law prohibits direct sales of medical marijuana between patients and caregivers.
Schuette, who along with Isabella County Prosecutor Larry Burdick filed the original complaint to shut down the CA dispensary, plans to send a letter to prosecutors in all 83 Michigan counties with instructions on how to file similar nuisance complaints.
"Today Michigan's highest Court clarified that this law is narrowly focused to help the seriously ill, not an open door to unrestricted retail marijuana sales," Schuette said in a statement. "Dispensaries will have to close their doors. Sales or transfers between patients or between caregivers and patients other than their own are not permitted under the Medical Marijuana Act."
Tim Beck, who helped spearhead the voter-approved medical marijuana law, said he was not surprised by today's ruling, calling it one of two possible answers to a five-year-old question.
"The original intent of the law, as written, did not contemplate dispensaries," Beck said. "It was a deliberate political strategy not to address dispensaries because we wanted to win at the polls, and we were worried there would be blowback because dispensaries had such a bad rap in California."
Matthew Abel, an attorney with the Detroit-based Cannabis Counsel, said today's ruling does not necessarily signal a death-knell for all Michigan dispensaries.
"It seems to me that any dispensary that stays open will need to be a service business and not a sales business," Abel said. "We believe that's a valid business model, and dispensaries may receive compensation for costs instead of sales."
Abel called on state lawmakers to weigh in on medical marijuana dispensaries, suggesting that "there will continue to be disparate treatment in Michigan unless or until the legislature provides answers."
Note: This post was updated with a reaction from Michigan Attorney General Bill Schuette.
Jonathan Oosting is a Capitol reporter for MLive Media Group. Email him at joosting@mlive.com or follow at twitter.com/jonathanoosting.