Pubdate: Mon, 05 Mar 2012
Source: Daily Californian, The (UC Berkeley, CA Edu)
Copyright: 2012 The Daily Californian
Contact:  http://www.dailycal.org/
Details: http://www.mapinc.org/media/597
Author: Adelyn Baxter

STATE, FEDERAL POLICIES HINDER EXPANSION OF MEDICAL CANNABIS

In Berkeley, efforts to expand the city's medical cannabis industry 
have been slowed as contention between state and federal marijuana 
policies causes confusion among business owners, local governments, 
legal experts and patients alike.

Berkeley has already begun to see the effect of federal lawmakers 
butting heads with officials in states where medical cannabis has 
been legal for years. The debate boils down to disagreement between 
those who advocate state's rights in medical cannabis regulation and 
federal entities reluctant to leave the management of any kind of 
drug - illicit or medical - up to differing interpretations between regions.

However, reports that Oakland intends to double the number of 
dispensaries it licenses should come as no surprise given the 
financial difficulties that California cities have faced in recent 
years. In cities like Oakland, annual sales taxes from marijuana 
dispensaries generate millions.

Alternatively, the tax revenue Berkeley brings in from medical 
cannabis is "really not significant" to the city's overall revenue, 
totaling just $161,193 in 2011, according to city spokesperson Mary 
Kay Clunies-Ross.

Last fall, the U.S. Department of Justice sent letters to dozens of 
dispensaries and collectives across the state, warning owners they 
were not complying with federal standards and could be subject to 
closure and even jail time if they did not close down their 
businesses immediately. Several San Francisco businesses closed as a result.

Dan Rush, the national director of the Medical Cannabis and Hemp 
Division at United Food Commercial Workers International Union, 
estimates that the letters could put roughly 300 Berkeley dispensary 
jobs at risk. Another round of letters was just sent out last week, 
the effects of which will become apparent in the coming months, Rush said.

Berkeley currently has three dispensaries, but the city is in the 
process of developing regulations to permit a fourth dispensary in 
line with Measure T, a ballot measure passed in November 2010 that 
also allows six new cultivation centers to open in the city.

The city has charged its Medical Cannabis Commission - for which Rush 
is also the chairperson - with the task of defining regulations, to 
be submitted to and voted on by the City Council later this year. The 
process appears to have been delayed by the lack of clarity at the state level.

"There's been discussion about calling a break until there's some 
kind of ruling from the Supreme Court," Rush said at a meeting of the 
commission Thursday.

However, commissioners seem determined to continue refining the 
process for businesses looking to apply for a dispensary permit.

The distinction between dispensaries and collectives varies from city 
to city. In Berkeley, dispensaries are permitted establishments that 
operate in commercial districts, while collectives must be operated 
out of a residence outside of a commercial or manufacturing district.

In December, the city sent "cease and desist" letters to two local 
collectives, warning that they were wrongly operating as dispensaries 
and would be subject to a fine of $500 a day if they did not halt 
operations immediately.

Perfect Plants Patient's Group at 2840-B Sacramento St. was one of 
the collectives identified. It was also notified that it was 
violating Measure T's stipulation forbidding it from operating within 
600 feet of a school.

40 Acres Medical Marijuana Growers' Collective was the other 
collective that received a letter warning that it is violating the 
city's municipal code by operating as a dispensary in a commercial 
district. The collective closed its doors at 1820 San Pablo Ave. and 
reopened recently at a new location.

Although no Berkeley dispensaries have closed yet, rumors have 
circulated that Berkeley's largest and oldest dispensary - Berkeley 
Patients Group - recently received a letter from the U.S. Attorney 
notifying them that they are in violation of the 1,000-foot limit 
between dispensaries and schools stipulated by federal law.

BPG has yet to confirm whether or not they have received such a letter.

A bill submitted by state assemblymember Tom Ammiano (D-San 
Francisco) to the state assembly on Feb. 24 could alleviate some of 
the confusion between state and local policies for medical cannabis.

The Medical Marijuana Regulation, Control, and Taxation Act of 2012 
would establish a state Board of Medical Marijuana Enforcement, which 
would deal with registering and regulating medical marijuana 
businesses as well as levying fines and penalties for violations, 
according to the bill's text.
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MAP posted-by: Jay Bergstrom