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Medical marijuana in a Bay County grow room

(MLive.com File Photo)

BAY CITY, MI — Two local people alleged to have illegally sold medical marijuana from a Bay City compassion club have accepted plea offers.

Ernest R. Rahn, 57, on Thursday, Dec. 19, appeared in Bay County Circuit Court and pleaded guilty to single counts of manufacturing or delivering marijuana and maintaining a drug house. In exchange for his pleas, the prosecution agreed to dismiss four counts each of manufacturing or delivering 5 to 45 kilograms of marijuana and delivering or manufacturing marijuana.

One of Rahn’s two codefendants, Terry L. Horner, 59, in November accepted a similar plea deal. He pleaded guilty to single counts of manufacturing or delivering marijuana and maintaining a drug house and the prosecution agreed to dismiss two counts of manufacturing or delivering marijuana and five counts of manufacturing or delivering 5 to 45 grams of marijuana. Horner’s wife, Peggy M. Horner, 55, did not plead to anything, but prosecutors agreed to dismiss the three charges she faced — two counts of manufacturing or delivering 5 to 45 grams of marijuana and one count of manufacturing or delivering marijuana.

The trio began operating E.T. Education & Compassion Club, 316 S. Henry St., in 2010. On Aug. 31, 2011, the Bay Area Narcotics Enforcement Team, or BAYANET, raided the club, the Horners' Essexville home and Rahn's Frankenlust Township home. Officers reportedly found 965.5 grams of marijuana and 92 plans at the Horners' house, 22 plants at Rahn's house and 40 plants and assorted "medibles" — edible marijuana products — at the compassion club, court records show.

The Horners and Rahn were arraigned in December 2011.

The raid came on the heels of an August 2011 Court of Appeals ruling that “patient-to-patient sales” of medical marijuana is prohibited. However, licensed growers remain able to cultivate up to 12 plants for their own use, and up to 60 plants for five registered patients. The law does not prevent patients from compensating caregivers for time and resources spent cultivating their crop. It does not define the amount of compensation.

The Michigan Supreme Court in early 2013 upheld the appellate court's ruling.

A separate trio of Bay City compassion club workers — brothers Johnnie V. and Corey R. Randall and Joshua J. Perry — remain charged with various related offenses in Bay County Circuit Court. Their next court dates are pending. The Randalls owned Beacon of Light Compassion Center, 100 N. Catherine St., and were likewise raided by BAYANET following the appellate court's ruling.

Bay County Circuit Judge Harry P. Gill is to sentence Terry Horner at 1:30 p.m. on Monday, Jan. 27. Gill is to sentence Rahn at 8:30 a.m. on Monday, Feb. 3.