Southwest Chula Vista
Civic Association
Cities Weighing the Regulatory Implications of Medical MarijuanaAug. 24, 2009

Why are we here today?
• Our city is receiving applications for business licenses
for medical marijuana collectives, cooperatives anddispensaries.
• Currently, city zoning does not include these types ofbusinesses as a permitted use in the city.
• The city has enacted a 45-day moratorium oncollectives, cooperatives and dispensaries in order tostudy the issue and determine if, and how, to permit andregulate them.

Historical Timeline

SB420

Obama
Administration
States NewPolicy on RaidsCountybegins
MMICAB390

2010

2009

2009

2009

2008

2003

1996

Guidelines

County ofSan Diegov. NORML

2009

AG’s

Prop
215

Cities passmoratoriums in
response tosurge inbusiness license
applications

Questions for the Community• Can we ban dispensaries in the city? What are other
cities doing?
• What is the need for medical marijuana? Why not justuse what’s available through prescription?
• What is the difference between a collective, cooperative
and a dispensary?
• What are the possible public health and safety impactsof medical marijuana collectives, cooperatives anddispensaries?

Collectives, Cooperatives andDispensaries.

What’s the difference?
• Collective – Nonprofit. Seller’s Permit required.
• Cooperative – Must incorporate as nonprofit
under Corporations Code or Food andAgricultural Code. Seller’s Permit required.
• Dispensary - Retail, storefront distribution ofmedical marijuana. Not referenced in Prop 215
or SB420. AG says ‘probably’ unlawful.

How do you open a collective orcooperative?
• State law permits medical marijuana patients toform collective or cooperatives to grow andcultivate medical marijuana for their use orbenefit of other members.
• Even if there are no sales, collectives andcooperatives are responsible for paying sales tax
on the retail value of marijuana distributed.
• Board of Equalization doesn’t track sales by product. No dataon taxable sales for medical marijuana.
• BOE estimates reported by the media of the economic impactof taxing marijuana were specific to AB390, a bill to legalize
marijuana for recreational use and create a regulatory
structure for wholesale cultivation and distribution. Estimate
was based on marijuana seizures by law enforcement andreview of academic studies.

What does the Attorney General Say?

Can a retaildispensary meettheserequirements?

Attorney General’s Guidelines for theSecurity and Non-Diversion ofMarijuana Grown for Medical Use –August 2008

Key questions to ask business permit
applicants?
• Membership criteria?
– What is each member’s role in the group?
– Should have records to support claim.
– Can anyone walk up and become a member?
• Or is it like joining Blockbuster?

• Where does the marijuana come from?
– Who is growing the marijuana and where?
– Records support claim– Records show potency and safety of marijuana?
– Security plans to prevent burglary of businesslocation and cultivation sites.

Medical Marijuana: Is there a need?
UC Center for Medicinal Cannabis Research is studying efficacy and adverse affectsof medical marijuana and implications for pharmaceutical use.
Established in 2000 at UCSD and UCSF
www.cmcr.ucsd.edu

Mission Statement: “The Center for Medicinal Cannabis Research will conduct highquality scientific studies intended to ascertain the general medical safety and efficacy
of cannabis and cannabis products and examine alternative forms of cannabis
administration. The center will be seen as a model resource for health policy planningby virtue of its close collaboration with federal, state, and academic entities.”
Funded by State of California
Research approved by Department of Health and Human Services, Food and Drug
Administration, National Institute on Drug Abuse (NIDA), and Drug Enforcement
Agency.
Cannabis supplied by NIDA.

CMCR Findings Thus Far• 3 separate clinical trials found smoked cannabis provided
effective relief for neuropathic pain in HIV patients.
• 1 clinical trial found smoked cannabis relieved muscle
spasms in patients with multiple sclerosis.
• Clinical trials to date have been limited to study ofefficacy and adverse effects in serious conditions.
• Review of basic animal research suggests cannabis
COULD be effective in treating migraines and rheumatoid
arthritis. However, more research is required.

Medical Marijuana and Prescription Drugs
Benefits•

Negatives

Patients respond differently todrugs.

•Marijuana has negative sideeffects•

Doctors value choices to meetpatient needs andpreferences.

•Existing prescription drugs for
HIV pain and muscle spasticity
have negative side effects•Strong affects onmood/alertness•Increased heart rate
•Severe anxiety•Hallucinations•Addiction– Heavy sedation,– Blurry vision– Lowered blood pressure– Dizziness– Dehydration– Addiction•Smoking cannabis is nottolerable for some patients•Not practical in hospitalsetting.

•Concern about safety andpotency of marijuana.
•With pharmaceuticals, every tablet
has the same dosage. There is nosystem in place now to ensure safety
and potency of marijuana available
through dispensaries.

How do you get a medical
marijuana ID card?
• Recommendation from a licensed physician– Not a prescription• County health department verifies thatrecommendation is authentic and from a licensed
physician in good standing.
– www.sdcounty.ca.gov/hhsa/programs/phs/mmic/• Issues ID card with state registered number.
• Voluntary• Cost $166 (or $83 for Medi-Cal patients)• Verifiable online through CA Department of Public Health– www.calmmp.ca.gov

What are other cities doing?
• Several San Diego cities have implemented a
moratorium: Chula Vista, National City, Imperial
Beach, Escondido, Santee, Oceanside,• City of San Diego is considering a citizen’s
medical marijuana task force to develop
regulatory recommendations. Advisory only.
– Estimated 50-60 dispensaries operating in city.
– Review of business tax permits issued in July
indicates 15-20 new dispensaries.

Public Safety Concerns cited in statewide
law enforcement, media reports• Crime• Street re-sales of medical marijuana• Loitering• Double Parking outside dispensaries• Noise• Traffic• Proliferation• Clustering• Close proximity to schools

Are ordinances effective?
• Los Angeles – LAPD reported 4 known dispensaries in2005 and 98 in 2006.
– Moratorium enacted in 2007 but included a “hardshipexemption.”– City now working through public hearings on hundreds ofdispensaries attributed to hardship exemption.

• San Francisco – Estimated 45 known dispensaries in2005.
– No regulations.
– Currently have 24 known dispensaries. Reduction in complaints.
– 6-8 have completed city’s full permitting process.

San Francisco DPH

Fees:
Dispensary Application Permit: $8,470
Dispensary License & Reinspection: $3,933

Cities cont.
• Arcata – Reviewing its land use and zoning formarijuana cultivation due to a surge in “growhouses” in rental properties.
– Complaints of housing shortage andburglaries.
• Clovis – Ordinance prohibits– Compensation for medical marijuana– Employees. All work must be performed bymembers.

Big Questions• Can cities prohibit collectives, cooperatives anddispensaries?
• Are cities required under the law to provide safe accessto medical marijuana for qualified patients by permitting
and regulating dispensaries, collectives andcooperatives?
– Qualified Patients v. City of Anaheim• Should cities ban dispensaries but permit and regulate
collectives and cooperatives?

Big Questions Cont.
• Should collectives and cooperatives be regulated as
adult businesses?
• How should collectives and cooperatives be zoned?
– Avoiding clusters/strips and proliferation– Prohibit near schools, parks, churches– Prohibit near treatment and sober living centers• Can cities require that patients obtain a medical
marijuana identification card even though the state
program is voluntary?
• Is there a model ordinance that could be used across theregion.
– Are there specific areas for regional regulatory
agreement?