CITY C OUNCIL

JOHN A. MICHITSON PRESIDEIfT

ROBERT H. SCATAMACCHIA VICE PRESiDEtfr

MEUNDA E. BARRETT WlLUAM J. MACEK WiuiAM H. RYAN THOMAS J. SULLIVAN MARY ELLEN DALY O'BRIEN MICHAELS. MCGONAGLE CouN F. LEPAGE

CITY HALL, ROOM 204 4 SUMMER STREET

TELEPHONE: 978 374-2328 FACSIMILE: 978 374-2329

www.ci.haverhill.ma.us citycncl@cityofhaverhlll.com

September 4,2014

CITY O F HAVERHILL HAVERHILL, MASSACHUSETTS 0 1 8 3 0 - 5 8 4 3

Ms. Karen van Unen Executive Director, Medical Use of Marijuana Program Massachusetts Department of Public Health 250 Washington Street, 2"" Floor Boston, MA 02108-4619

R E : H E A L T H Y P H A R M S , INC. 'S R M D A P P L I C A T I O N F O R H A V E R H I L L

Dear Executive Director van Unen: On August 19, 2014 the Haverhill City Council discussed the Healthy Pharms, Inc. (HPI) Medical Use of Marijuana Dispensary application at their City Council meeting. Regarding our prior request (letter enclosed dated February 28, 2014 with attachments) pertaining to, in part, the "information provided by the applicant was misleading, incorrect, false, or fraudulent" according to 725.400 (A): Registered Marijuana Dispensary: Grounds for Denial of Initial Application for Registration, I am writing on behalf of the entire City Council requesting that the Department of Public Health ("Department") provide their investigative and "Verification Phase" findings. This is to include, but not limited to the re-scoring of the HPI application pertaining to Section 5.4 of their application. In your letter dated March 25, 2014; the Medical Use of Marijuana Program ("Program") noted that "the Program continues to actively review and verify the contents of all submitted Phase 2 applications to ensure their accuracy. This includes verification of all letters of non-opposition or support submitted by municipal officials, as well as any and all outreach or meetings listed by the applicant in Section 5.4 of their application."

> Regarding a letter of non-opposition or support, the Program has previously aclcnowledged the Haverhill City Council's retraction of the undated letter signed by former Council President, Robert H. Scatamacchia and the misleading actions that obtained his signature. This aclcnowledgement by the Program would have lowered the scoring of the HPI application.

> In regards to outreach or meetings listed by the applicant in Section 5.4 of their application, three of the four individuals listed as having meetings with HPI have again refuted those meetings occurred (see attached "Local officials say medical pot tallcs misrepresented; Despite that, state approves Haverhill center" dated 7/1/14). Also, by HPI's ovwi admission in its letter to Councillor Colin F. LePage, their Executive Director, Nathaniel Averill wrote "When I attended the recent Haverhill City Council meeting on November 19*, where the proposed zoning regulations were discussed for a potential dispensary site, it became clear to me that we made an error by not reaching out to the city's leadership during our initial location search."

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In your letter; the Department also noted that "it will not tolerate any false claims by RMD applicants, and that misleading actions by any applicant is unacceptable." With the recent revelation of another RMD applicant making false claims (see attached "State halts 2 cannabis permits; Cites false claim on director's resume; vows more scrutiny of dispensary bid" dated 8/13/14) and Governor Deval Patricks' remark in that article, "I've said before: If you lie on the application, that is, from my perspective, a nonstarter," it is the City Council's belief that, in part, the "information provided by the applicant was misleading, incorrect, false, or fraudulent" according to 725.400 (A): Registered Marijuana Dispensary: Grounds for Denial of Initial Application for Registration. In closing, the Haverhill City Council requests a copy of the Department's enhanced verification process notes, a copy of the written findings and any other agency work product that was pertinent to the Department's decision to reaffirm HPI's Phase 2 Application RMD designation. Additionally, please include a copy of the revised Selection Committee Detailed Scoring Report relative to the HPI application.

John A Michitson, President Haverhill City Council

JAM/bsa enclosures cc: Mayor James Fiorentini

Governor Deval Patrick Martha Coakley, Attorney General City Council Senator Kathleen O'Connor Ives Representative Brian Dempsey Representative Diana DiZoglio Representative Linda Dean Campbell Representative Lenny Mirra

Sinc^ely,

Colin F. LePage, Chair Administration and Finance Committee Haverhill City Coimcil

Approved by:

2

C I T Y C O U N C I L

JOHN A. MICHITSON , „ .. - , PRUDENT UM^^M \HALL,ROOM204

ROBERT H. SCATAMACCHIA aU' Ifel SUMMER STREET ViCEPRESiDEJvr E V l ^ ^ f A ^ / TELEPHONE: 9 7 8 374-2328

MEUNDA E. BARRETT ^^^^^^^4/ FACSIMILE: 978 374-2329 WILUAMJ.MACEK X ^ ^ ^ ^ V ^ www.d.haverhill.ma.us WILLIAM H. RYAN X ^ ^ ^ T O ; ^ ^ citycncl@cityofhaverhill.com THOMAS J. SULUVAN MARY ELLEN DALY O'BRIEN , , MICHAELS. MCGONAGLE ClTY O F HAVERHILL

couN F. LEPAGE HAVERHILL, MASSACHUSETTS 0 1 8 3 0 - 5 8 4 3

February 28,2014 Ms. Cheryl Bartlett, Commissioner Massachusetts Department of Pubhc Health 250 Washington Street, 2°'̂ Floor Boston, MA 02108 RE: HEALTHY PHARMS, INC'S RMD APPLICATION FOR HAVfeRHILL Dear Commissioner Bartlett: On February 25, the Haverhill City Council discussed the Healthy Pharms, Inc. Medical Use of Marijuana Dispensary application at their City Council meeting. I am writing on behalf of the eight Council members present at that meeting to formally request a retraction of the attached undated City Council letter submitted by the former Council President, Robert H. Scatamacchia. Mr. Scatamacchia was not made aware of the iutent behind the letter which was to help bolster Healthy Pharms, Inc's (HPI) application. He was not informed that the phiase "non-opposition" in the letter would be used during the scoring process to help HPI move to the next stage of the license approval of a dispensary in Haverhill. At the time that the letter was signed, it was not shared with the City Council and did not reflect the City Council's supportor endorsement of the applicant. Since the announcement of the provisional medical marijuana dispensaries in Massachusetts on January 31,2014, it has come to light that there a number of alleged discrei)ancies with the HPI application. Those discrepancies include the assertion that at least three parities named in the application had a meeting with HPI. Those individuals have refiited such EDJeetings. (See attached "OflScials dispute claims by marijuana company; Say they didn't offer supi^ort for pot dispensary.") Based on those "alleged" meetings, additional scoring points awarded to HPI should be re-evaluated. HPI did not meet with City Officials; nor did it holcj any public informational meetings or neighborhood meetings. (See attached undated k tter from the Executive Director of HPI.) The Council would like to request that a full investigation be made as to the veracity of the HPI application in all substantive areas in which pditits were awarded, and if appropriate and proper, to re-score the HPI application. According to 105CMR 725.000: Implementation of An Act For The Hum^ta r ian Medical Use of Marijuana, the City Council is questioning whether a number of proced^al regulations were followed by the applicant and /or verified by the Department prior to the granting of a provisional license, these include:

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725.100: (B) Application Requirements (2) Action on Phase I Submissions; e.g. regarding notice given to officials; 725.100: (B) Application Requirements (5) Action on Phase 2 Submissions:

Section (b); e.g. regarding appropriateness of the site. Section (d); e.g. regarding local support for the RMD appUcation, likelihood of successM siting of the RMD in the proposed location Section (f); e.g. regarding review architectural plans for the builditig or renovation of a

In closing, it is the Council's belief, in part, that the "information provided by the apphcant was misleading, incorrect, false, or fraudulent" according to 725:400 (A): Registered Marijuana Dispensary: Grounds for Denial of Initial Application for Registration. Please investigate the alleged misrepresentation surrounding the Healthy Pharms, Inc. appHcation and provide findings to the Haverhill City Council. Sincerely yonrs,

^ h n A. Michitson, President Haverhill City Council

JAM/bsa end. c: Mayor James Fiorentini

City Council Senator Kathleen O'Connor Ives Representative Brian Dempsey Representative Diana DiZoglio Representative Linda Dean Campbell Representative Lenny Mirra

RMD

2

CltjfCotmGSi Robert H. Scatamacchia President Michael 3. Hart Vice President

JohnA.Mldiitson William H. Ryan • Michael a McGonagie WiffiamJ. Macek eolin F. Lepage Mary Ellen Daly O'Brferi

• Thomas J . Sullivan

aty HaH, Room 204 • 4 Summer Street

Telephone: 978 374-2328 Facsimile; 978 374-2329

www.d.haverhill.ma,us citycncl@c|tyofhaverhill.com

CITY OF HAVERHILL Haverhill, Massachusetts 01830-5843

Cul ten Roberts Massachusetts Department of Public Health 250 Washington Street 1'* Floor, Lobby Room! and 2 Boston, MA 02108

\

To whom it may concern;

I am writing In reference to Healthy Pharms, Inc. The City of Haverhill is neither in fevor or opposed to the siting of a marijuana dispensary in the City of Haverhill, This matter is current!^ pending'before the City Council and no final decision has yet been reached. The City Council of Haverfjili has declared a moratorium on a medical marijuana dispensary locating in the City of Haverhill Thbt moratorium expires on February 25,2014, During that period of time, the City Council is evaluating w h k would be a proper zone for these dispensaries to be located. The City Council is waiting to schedule hearings, after the hearings, the Council wilj decide which location to allow a dispensary to apply for a permit. Any permit that might, or miglit not, be granted, would be decided by the City Council through a special permit process. If a special bermit were to be granted, .the successful applicant would have to comply with ali local and State regjiations, Very truly yours,

A . - y s ™ - — , i

'U'-^-Robert Scatamacchia, President, Haverhill City Council

Officials dispute claims by marijuana company » EagleTribune.com, North Andover, MA Page 1 of 4

February 9,2014

Say they didn't offer support for pot dispensary By Douglas Mo ser and Shawn Kegan Staff writers

ELAVERHILL — Sereral public officials are questioniag statements made by a company that received a Hcense for a medical marijuana dispensary in Havefh.i1]. In its appHcation to the state. Healthy Pharms, Inc. named the officials, said it met vrith some of them, and described theit positive reaction to the company's proposal. However, on Friday two officials named in the application said they did not meet with Healthy Pharms representatives. Another official named in the appHcation said he was surprised that an informal conversation about the dispensary was described in the appHcation as supportive of the plan. Healthy Pharms, Inc. received a provisional Hcense on Jan. 31 to operate a medical marijuana dispensary at 114 Hale St. The company stated in its 146-page appHcation that it held meetings with four officials to discuss the dispensary location and characterized the results of those meetings as generally supportive. "WUHam Pillsbury Jr., ditector of tiie City of Haverhdl Economic Development and Planning was happy to meet with HPI representatives on several occasions," Healthy Phamas wrote in its appHcation. "HPI discussed the possible development on an RMD within the Haverhill city limits and the best possible locations for these activities." However, PHlsbury said on Friday that he never met with Healthy Pharms. "That's absolutely untrue, unless it's a passing conversation I had with Jim Jajuga," Pillsbury said. "I haven't had a meeting with them. I see that as a misrepresentation." Jajuga is a current Methuen city councilor. He has also been a state senator, high-ranking state poHce officer, state secretary of pubHc safety and president of the Greater Haverhill Chamber of Commerce. He told The Eagle-Tribune last week that he did consulting work on behalf of Healthy Pharms. PiHsbury said the only conversation he had with Jajuga was a brief talk at the cotmter in PiUsbury's City HaH office about having a meeting concerning the Healthy Pharms proposal.

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Officials dispute claims by maxijuana company » EagleTribune.com, North Andover, MA Page 2 of 4

"It -was an informal situation when he was at my counter and wanted a meeting," Pillsbuty said. "I said there isn't a meeting to have because tiiere's a moratorium (on possible locations for such a center in Haverhill)." "If my conversation with Jajuga has been conveyed into that, it's pretty troubHng," Pillsbury said of the statement iu the Healthy Pharms application. The City Cormcit has enacted a moratorium on medical marijuana dispensaries in HaverhUl while it works out zoning issues. The moratorium expires Feb. 25, unless the coundl acts to renew it. The council plans to take up dispensary zoning and the moratorium at a meeting Tuesday. Jajuga, who owns the consulting agency Jajuga Associates, said he was a consultant and adviser for Healthy Pharms. However, he declined to comment on the statements of Pillsbury and other pubHc officials who questioned Healthy Pharms' appHcation to the state. "When I do some work for a cHent, I reaUy don't discuss that work," Jajuga said Friday. Asked about the officials' response to the language in the Healthy Pharms appHcation, Valeric Romano, an attorney representing the company, decHned to comment Friday. The dispensary issue has developed because last year voters supported legalizing medical marijuana use in Massachusetts, Healthy Pharms' appHcation also stated it met with Joseph Costanzo, adrninistrator for the Merrimack VaHey Regional Transit Authority, "Joseph J, Costanzo, administrator of Merrimack Valley Regional Transit Authority, met with (us) to help us understand the to-be-buHt bus station hub, within three blocks of our proposed site, which will feed and provide transportation for 14 surrounding communities," Healthy Pharms wrote in its appHcation, Costanzo said Friday that he never met witii anyone firom Healthy Pharms, but was contacted by a representative of the company, whom he decHned to name. They had a discussion over the phone about the proposal for a medical marijuana dispensary on Hale Street near Lafayette Square, Costanzo said, Costanzo said the proposed bus station is a reference to the transit authority's existing plans to eventually relocate its downtown Washington Square station closer to the downtown parking garage in Raikoad Square, That location is within walking distance of the proposed Hale Street medical marijuana facHity. The appHcation also stated that Healthy Pharms representatives met with DeiintS DiZogHo, executive director of the Merrimack Vafley Planning Commission, about the proposal, "We were able to meet with Executive Director Dennis DiZogHo of the Merrhnick VaUey Planning and Commission to discuss our plans and found him open to our proposal, and he ipvited his assistance wherever possible," Healthy Pharms stated in the appHcation. "I am surprised," DiZogHo said Friday. "I'm trying to think of who I talked with who would have mentioned me. No one came to us. We don't have anything to do with the permitting side of it."

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Officials dispute claims by marijuana company » EagleTribune.com, North Aiidover, MA Jf age j oi ^

He said of the people involved with Healthy Pharms, Jajuga, a fdend of his, woidd have been the most likely to have a conversation with him, though he could not recall a specific coniversation or meeting. The regional planning commission did host a presentation last August with several city and town plaiuiers iu the area about medical marijuana dispensaries and has provided technical assistance with the zoning and bylaw aspects of medical marijuana, DiZoglio said. "We didn't take any votes to endorse a specific proposal," DiZogHo said. "We s^ete a resource to our member communities about medical marijuana to give them some assistance." The Healthy Pharms appHcation cited a fourth conversation, this one witb SvenAtnirian, president of the Greater HaverhiU Chamber of Commerce. The appHcation cited the chamber's general neuttaHty on medical marijuana dispensaries. "HPI representatives had an informal meeting with Sven Amirian, President of the Greater Haverhill Chamber of Commerce, on the feasibiHty and local acceptance of an RMD faciH|ty within the HaverhiU city Hmits," Healthy Pharms wrote in its appHcation. "The outcome of this meeting was that the Greater HaverhiU Chamber of Commerce is supporting any and aU legaHy sanctioned bugiuesses." Amkian said Friday that he recaHed speaking with Jajuga briefly about the dispensary as part of a longer conversation on a range of topics. "Taken in context with the rest of the conversation, this appears to be a fair characterization of my brief discussion with Jim," Amirian said of the language in Healthy Pharms' appHcation. The state used a scoring system when it reviewed appHcations for dispensaries, l^ecause Healthy Pharms' appHcation said the company got support fiom officials such as Pillsbury, Costaijizo and DiZogHo, along with an imdated letter of non-opposition on city letterhead signed by former KxretbiR City Council President Robert Scatamacchia, the company got up to 15 points on its overaU score. That includes five points for support from community leaders and Scatamacchia's letter, five points; for including Scatamacchia's letter in the appHcation, and five points for including Scatamacchia's indication of non-opposition in a chart. The h%hest possible score was 163 points, and Healthy Pi arms got 149, according to the state. I i I The lowest scoring successful appHcation received 137 points. Scatamacchia told The Eagle-Tribune last week that he was "duped" into signing the letter in kte November The letter was not shared with other city councilors until last Tuesday. The full council never considered or voted on the letter.

The letter reads, in part, "I am writing in reference to Healthy Pharms, Inc. The neither in favor or opposed to the siting of a marijuana dispensary in the City on city letterhead that included a Hst of the entire City Council and signed by

Z;ity of Haverhill is of HaverhiU." It was written Scatamacchia alone.

According to the state Department of PubHc Health, a letter of support or non-from a community's chief administrative officer, its City Coundl or Board of: Board of Health.

cpposition can come Selectmen, and/or the local

http://www.eagletribune.com/haverhill/xi26268O33O/Off1cials-dispute-claims-i3y-marijuan... 2/28/2014

Dear Councilor Colin F. LePage, My name is Nathaniel Averill. I recently submitted an application to the Department of PubHc Health on behalf of my non-profit organization, H for a medical marijuana dispensary hcense. We have identified a site in would like to use as our location.

Massachusetts althy Pharms, Inc.,

Haverhill that we

When I attended the recent HaverhiU City CouncU meeting on Novembej: 19th, where the • proposed zoning regulations were discussed for a potential dispensary iite, it became clear to me that we made an error by not reaching out to the city's leadership during our initial location search. I would like to try to correct this error by making myself available for any meetings, phone calls, or written communication that might help to answer questions or allay concerns the municipality or its members might have with regard to my organization and our proposed facility. My background is in biotech pharmaceutical manufacturing. For over twjenty years, I have worked in the industry, managing teams that manufacture pharmaceuticja} products in compliance with FDA and other global regulatory bodies' regulations, I have been on the start-up teams for some of the largest biotech pharmaceutical facilities ii|i Massachusetts. The other members of the board of Healthy Pharms, Inc. consist of a local businessman, a non-profit speciahst, and a career manager for the US Agency for Intern^onal Development, who started and ran health care and other humanitarian p|rojects around the world for the US government. We also have a doctor on our board that s|jeclalizes in pubhc health and works for the Centers for Disease Control (CDC). The mission of Healthy Pharms is to provide high-quality, laboratory-tesied medical marijuana products and educational materials to Massachxxsetts residents approved by their physician and registered with the Department of Pubhc Health. Our facility wUl be clean, modern, and operated in a professional manner, with a priority on compassion toward those whom we serve. Our vision for Healthy Pharms is to put thd needs of patients first, by providing them with fairly priced, high-quality medicuial produc s and educational materials in a friendly, secure and inviting environment We will operate Iwith the utmost transparency, professionalism and regulatory compliance. It is also our iijtention to be good stewards of the community we support, to maintain a positive and discreet presence, and to respect the rights and ideals of those around us. We want to engage the community and be responsive to their needs. To tjiat end, I would welcome the opportunity to arrange a meeting to address any concerns ypu or others in the community may have. Please feel free to call, and I will gladly make myself available at your convenience.

Sincerely, Nathaniel Averill Executive Director Phone: (508] 207-3979 Email; gnat911(§>gmail,com

8/31/2014 Local officials say medical pot tall<s misrepresented - Eagle-Tribune: News

Local officials say medical pot talks itiisrepreseriteci By Douglas Moser dmoser@eagletribune.com | Posted: Tuesday, July 1,2014 12:05 am Two men told the state that conversations they had with a representative of a medical marijuana center proposed for Haverhill were misrepresented on the group's application. Despite those reports to state health officials, Healthy Pharms, Inc. received provisional approval for the Haverhill dispensary from the state Department of Public Health on Friday. The reports came from William Pillsbury, Haverhill's planning director, and Dennis DiZoglio, executive director of the Merrimack Valley Planning Commission, hi addition, earlier this year the Haverhill City Council wrote a letter to DPH retracting a letter included in Healthy Pharms' application. That letter stated the city neither supported nor opposed a dispensary. The DPH recently rejected nine of the 20 applications it was considering for dispensaries, six for

. including false information or misrepresenting community support on license applications. Among those were two dispensaries planned for Boston and three Cape Cod and South Shore dispensaries proposed by former Congressman William Delahunt. Pillsbury said he was surprised Healthy Pharms received a provisional certificate on Friday. "I had at least two occasions "whcrt I had conversations with DPH," Pillsbury said Friday. '1 reiterated that wdiat was contained in those reports was untrue. Obviously they heard and made another decision." Healthy Pharms wrote in its application, submitted to DPH in November, 'William Pillsbury Jr., director of the City of Haverhill Economic Development and Planning, Was happy to meet with HPI representatives on several occasions. HPI discussed the possible development on an RMD within the Haverhill city limits and the best possible locations for these activities." In February, Pillsbury called that characterization "troubling." He said he did not have meetings with Healthy Pharms, but only a passing conversation with a consultant. Pillsbury said he repeated his concern in his conversations with DPH last spring. "They asked me to comment on that stuff and I said the same thing, it didn't occur, no meetings occurred, I w^n' t happy to meet with them and I reiterated v^at I said that \\4iat was contained in that report wasn't the truth from my perspective," he said. The Healthy Pharms application also cited a conversation with DiZoglio. 'We were able to meet with Executive Director Dennis DiZoglio of the Merrimack Valley Planning and Commission (sic) to discuss our plans and found him open to our proposal, and he invited his assistance wherever

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8/31/2014 Local officials say medical pot talte misrepresented - Eagle-Tribune: News

possible," the application said. Jn February, DiZoglio said he was "surprised" at that account. He said on Friday he told DPH as much. "They asked me about my contact with Healthy Pharms, and I told them same thing I told you," DiZoglio said. "Ihey verified that's vfhst happened. I told them we hadn't endorsed the application, and he said okay."

' Additionally, Healthy Pharms included in its application a letter signed by then-Haverhill Council President Robert Scatamacchia on City Council letterhead stating that the city neither supported nor opposed a dispensary, an inclusion that gained the application a significant number of points toward approval. Scatamacchia said in February that he was duped into signing the letter. The City Council never voted on the sentiment expressed in the letter, and members of the council never saw the letter until early February, months after it was signed and submitted to DPH. On Friday, Scatamacchia said the DPH never contacted him about the letter during the verification phase, which lasted from February until June. "I was expecting a call back and never received one," he said Councilor Colin LePage said the council sent a letter through current Council President John Michitson to the DPH, retracting Scatamacchia's letter. Valerio Romano, an attorney representing Healthy Pharms, said yesterday he did not have insight into DPH's conversations with Pillsbury and DiZoglio, but emphasized that OPH has thoroughly evaluated the application twice. On Friday, the DPH issued 11 provisional certificates of registration to 10 different nonprofit groups, including Healthy Pharms in Haverhill. "Any allegation of a misrepresentation was thoroughly reviewed by CSI ihvestigators and DPH staff during the enhanced verification process. Applicants were only disqualified if the alleged misrepresentations were substantiated during this process," said David Kibbe, a spokesman for DPH. CSI is Creative Services Inc., a company that the DPH hired to conduct background checks on applicants. Haverhill currently has a temporary moratorium on dispensaries and is deciding vdiere to zone them. Healthy Pharms has proposed a dispensary at 114 Hale St. The DPH selected a total of 20 applications from 16 nonprofits for provisional licenses in January. After reports of inaccurate information in dispensary applications surfaced in February, the DPH conducted a thorough re\dew of those 20 applications, including checking the veracity of claims contained within them.

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8/31/2014 Local officials say medical pot talte misrepresented - Eagle-Triburte: News

Of those 20 applications, nine were rejected for a range of reasons. But six of them were rejected for providing false or misleading information on their applications: Three applications from Medical Marijuana of Massachusetts, the nonprofit led by former Congressman William Delahunt that proposed dispensaries in Mashpee, Plymouth and Taunton; two from Good Chemistry of Massachusetts, with a proposal each in Boston and Worcester; and one from Green Heart Holistic Health, wbich proposed a dispensary in Boston. Follow Douglas Moser on Twitter @EagleEyeMoser, To comment on stories and see vAiat others are saying, log on to eagletribune.com.

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METRO METRO H^SKKM HEALTH & WELL

A summons that still -^^j Making worl^slace Surgical em ^ ^ ^ h dignity marketable ; HH changes at T

State halts 2 cannabis permits Cites false claim on director's resume; vows more scrutiny of dispensary bic By Kay Lazar. Todd Walladc and Shelley Murphy | G L O B E S T A F F A U G U S T i 3 , 2 o i 4

SUZANNE KREITER/GLOBE STAFF

Kevin Fisher, CEO of New England Treatment Access

Governor Deval Patrick said Wednesday the state has put on hold a company's bid to open medical marijuana dispensaries in Brookhne and Northampton following revelations that the director falsely claimed to be a college graduate.

"I've said before: If you He on the appHcation, that is, from my perspective, a nonstarter," Patrick said after signing an environmental bond bill on Beacon HiH.

CONTINUE READING B E L O W T

Wednesday's development proved to be the latest detour for the state's fraught effort to license medical marijuana shops. The Globe reported Tuesday that the

R e l a t e d executive director of New England Treatment . T ..̂ , _. , 1 • J • ^ 1 • Claim raises new questions Access Inc., Kevin Fisher, claimed m the u * * •

' ' about state review Graphic: Issues with applicant's resum e

appHcation he earned a bachelor's degree in psychology from Youngstown State University, but the school said it has no record he received a degree. A screening company hired by the state detected the missing degree in April, but the state let the cdmpany go forward with plans to open dispensaries anyway. Fisher also claimed he previously attended another school, Miami University in Ohio, for two years, when school records show he dropped out after his freshman year.

"We're trying to understand whether, in fact, it was a He," Patrick said. "That's not clear yet. There's certainly an inaccuracy, and we're going to get to the bottom of that."

New England Treatment Access is the only company to receive mlore than one of i i provisional dispensary Hcenses awarded by the state in June, and new documents obtained by the Globe raise additional questions about whether tl^e firm received preferential treatment.

CONTINUE READING B E L O W T

New England Treatment Access, which is a nonprofit company, told state regulators it intended to give 18 percent of its annual gross revenues to a for-j^rofit company, Fisher Properties Ltd., which is co-owned by Fisher, for consulting and niianagement services, and for the use of proprietary techniques for growing highly sought strains of marijuana.

Fisher, who is president of the nonprofit marijuana company, owns half of the for-profit company, placing him in a position to reap substantial financial benefits firom the arrangement. State regulators have decHned to release New England Treatment's documents that outline this arrangement.

Yet regulators in June cited similar financial arrangements in disijualifying two other finalists for Hcenses, Medical Marijuana of Massachusetts, run hy^ former US representative William Delahunt, who was aimmg to open dispensaries in Plymouth, Mashpee, and Taunton, and Brighton Health Advocates, which plianned a Fairhaven faciHty. "Such corporation must ensure that revenue of the [dispensary] is used solely in fiirtherance of its nonprofit purpose," the state health departmerit said in its rejection letters to the two finalists.

Delahunt's company had proposed 50 percent going to its for-profit company but later amended that to 25 percent after the Globe reported the arrangeknent and after the former congressman was questioned by state regulators in May. Brighton Health Advocates envisioned a sHding scale payment of up to 20 percent to its for-profit affiHate but scrapped that arrangement in May, too, when questioned by regulators.

"I don't know what to think," Shelley Stormo, chief executive of Blrighton Health Advocates, said about the state allowing New England Treatment's 18 percent arrangement. "I would like to see this process further evaluated, knd I would like to see them look at our appHcation again. We have too many strengths for them to just throw it out."

Fisher, in a lengthy e-mail to the Globe on Wednesday, defended bis for-profit arrangement, saying that it was "only 18%." And he said the for-ptrofit arm of New England Treatment Access would forgo compensation until loans Used to get the dispensary off the ground are repaid.

He also noted that nonprofit experts hired by his company to review the arrangement determined it was appropriate.

The state health department, which granted the provisional marijuana licenses, asked companies that proposed for-profit partners to provide the agency with a legal opinion on whether the arrangement was responsible and suitable.

Asked why the state health department did not seek its own independent analysis, a department official said in a statement, "Requesting a legal opinioii from an appHcant is common practice, and the department considered such informatiob, in conjunction with our own legal analysis and other factors, in making its decisions."

The official also said that New England Treatment is not the oiA^ recipient of a provisional dispensary hcense that intends to pay a percentage of its revenue to a for-profit entity. The official dedined to identify those companies.

Fisher did not respond to questions Wednesday about the state'^ decision to put the company's application on hold. In interviews last week, Fisher acknowledged that he went to M^ami University for only one year, but he said he thought he later graduated from Youngstown State in his hometown. Fisher said he was unable to obtain transcripts from Youngstown State because he owed the school nearly $3,600.

A Youngstown State spokesman confirmed that Fisher attended the school from 1996 to 1998 but could not find any record that he earned a degree.

The company the state hired to perform background checks on firms applying for hcenses to sell medical marijuana in Massachusetts originaEy detected the missing degree in April.

On Monday, a state official suggested the misinformation was irrelevant because the agency did not require executives to hold specific degrees and did not use that as a factor in deciding which companies won hcenses to sell marijuana. But Wednesday, DPH spokesman David Kibbe said the "company's appHcation is on hold until they are able to suitably address this issue." More from Today's Paper • I n a world at war, a glimpse of the Kennedys

• Zantop killer to get hearing

• A life to celebrate, cut short by a gun

" US takes aim at online schem es

• Donald Berwick sees solution in single-payer health system

• For a playwright who's done it all, it's time for a new direction

Michael Levenson of the Globe staff contributed to this story. Kay Lazar can be reached at Kay.Lazar(S)alobe.com. Shelley Murphy can be reached at Shelley.Murphy & globe.com. Todd Wallack can be reached at Todd.Wallack(3)globe.com.

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