LANSING – The Marijuana Regulatory Agency said Friday its approach to allowing some product transfers from the medical side to the recreational side was “reasonable” as patient advocates in the industry said they were “blindsided” by the decision and are already seeing product being held back for potential movement.

Under a rule announced last week by the Marijuana Regulatory Agency, up to 50 percent of product could be transferred between equivalent licenses on the medical and recreational side if they have common ownership and the product has been in inventory for at least 30 days.

On Thursday, Michigan Cannabis Industry Association Executive Director Robin Schneider said in an interview she was “absolutely concerned” about the allowable transfer of product and on Friday the group held a press call with patient advocates to express opposition.

MRA spokesperson David Harns said the transfer window is not a mandate, and simply provides an opportunity for businesses.

“If the industry doesn’t want to do it, they can choose not to,” he said. “The rules have been out since July 3rd and the only feedback we received on this point was when and how it should happen, not if it should happen. Our approach is reasonable.”

Indeed, without allowing transfers product would likely not be available for recreational sales until at least March or April.

But Schneider said the group was “blindsided” by the decision to allow transfers and was not consulted. It is happening as patient advocates are concerned about a supply shortage among licensed medical marijuana facilities, which they say is driving up cost and making it hard for patients to access product.

Schneider said in the last 48 hours, they have already heard from members that orders are being canceled and available supply is diminished quickly. She suspects product will be held in the state’s inventory system so, once 30 days have gone by, product can be transferred.

Ida Chinonis, a patient advocate and member of MCIA, who lobbied at the Capitol with her daughter to get medical marijuana regulations passed, called the move by the agency “sickening,” and asked: “Who is protecting patients?”

Rush Hasan, with the medical marijuana provisioning center The Reef in Detroit, said it already has a hard time keeping up with demand, and with product moving to the recreational side, “we don’t feel we will have enough to serve our patients.”

He said the provisioning center does not plan to move over to recreational until it has enough product for patients.

And that is what Schneider will encourage her 200 members to do as well, she said.

“We are absolutely pleading with every medical company in the state if you are sitting on product do not hold it for the recreational market,” she said.

Schneider and Hasan also said they were told directly by the state it would not be allowing transfers of medical product to the recreational side.

Harns, with the MRA, said when media asked about potential movement of product from medical to recreational as it began accepting adult-use applications, the agency said it was not opening the window at that time.

“After careful consideration, we were able to take a reasonable approach that makes sure that patients will continue to have access to their medicine and the general public will begin to gain access to tested, regulated products,” Harns said.

This story was published by Gongwer News Service.