MEETING OF THE MEDICAL CANNABIS COMMISSION
Transcripción
MEETING OF THE MEDICAL CANNABIS COMMISSION
MEETING OF THE MEDICAL CANNABIS COMMISSION City Hall 2180 Milvia Street Redwood Room (Sixth Floor) Thursday, May 3, 2012 2:00 PM AGENDA I. Call to Order A. Roll Call B. Changes to Order of Agenda II. Public Comment III. Approval of April 5, 2012 Draft Action Minutes (attachment) IV. Planning Staff Report V. Chairperson’s Report VI. Subcommittee Reports VII. Discussion and Action Items A. Develop and forward to staff specific criteria for dispensaries to be included in an expedited approval process. Four attachments: 1. Memo from City Attorney re: outline of ordinance. 2. Letter from Commissioner Tims re: LiveScan requirement. 3. Memo from MCC Dispensary Subcommittee re: additional recommendations for dispensary criteria. 4. Memo from Commissioner Pappas re: possible preface to accompany dispensary regulations/criteria. B. Draft and send a report urging the Council to begin the process to amend the Medical Cannabis Ordinance in order to expand zoning for commercial cultivation outside of the M Zoning District due to a lack of viable sites within the current zoning limitations. One attachment to be distributed at meeting. C. Draft and send a report urging the Council to amend zoning law to prevent schools, day care centers, pre-schools, play grounds and parks from opening within 1,000 feet (as stipulated by DOJ) of existing and future licensed dispensaries and commercial cultivation sites. One attachment to be distributed at meeting. VIII. Information Items (In compliance with the Brown Act, no action may be taken on these items. However, they may be discussed and placed on a subsequent agenda for action.) A. Staff memo re: City of Berkeley contract policies. IX. Correspondence A. Laura Menard: E-mail re. code enforcement action at dispensary X. Adjournment Berkeley Medical Cannabis Commission website: http://www.cityofberkeley.info/medicalcannabis/) Medical Cannabis Commission Secretary: Elizabeth Greene, 2118 Milvia Street 2nd Floor, Berkeley CA 94704. Phone: 510-981-7484 [email protected] Communications to Berkeley boards, commissions or committees are public record and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to a City commission, will become part of the public record. If you do not want your e-mail address or any other contact information to be made public, do not include that information in your communication – you may deliver communications via U.S. Postal Service or in person to the Commission Secretary. Please contact the Commission Secretary for further information. Any writings or documents provided to a majority of the Commission regarding any item on this agenda will be made available for public inspection at the Planning and Development Department located at 2120 Milvia Street, Berkeley CA. Please contact the Commission Secretary for further information. This meeting is being held in a wheelchair accessible location. To request a disability-related accommodation(s) to participate in the meeting, including auxiliary aids or services, please contact the Disability Services specialist at 981-6342 (V) or 981-6345 (TDD) at least three business days before the meeting date. Please refrain from wearing scented products to this meeting. ATTACHMENT III MCC 05-03-2012 Page 1 of 4 MEETING OF THE MEDICAL CANNABIS COMMISSION City Hall 2180 Milvia Street Redwood Room (Sixth Floor) Thursday, April 5, 2012 2:00 PM DRAFT ACTION MINUTES Call to Order – 2:10 Roll Call Commissioners present: Ferguson-Riffe, Jones, Pappas, Pfrommer (arrived at 2:42), Rice, Rush, Stoloff (arrived 2:14), Tims. Absent: None Staff present: Greene Changes to Order of Agenda None Public Comment Seven speakers, with comments about BPG’s move and what the MCC is doing about it, the desire of other dispensaries to have MCC support, the desire to change the ordinance to allow for more than four dispensaries, and the timeline for selecting a new dispensary. (Stoloff arrived during the public comment period.) Approval of February 2, 2012 Draft Action Minutes Motion/second to approve the minutes as written (Rice/Jones). Motion carried 7-0-0-1. (Ayes: Ferguson-Riffe, Jones, Pappas, Rice, Rush, Stoloff, Tims. Noes: None. Abstain: None. Absent: Pfrommer.) Planning Staff Report Secretary Greene had the following announcements: The new Commissioner for District 3 is Damond Tims. Reviewed the leave of absence process. To be formally excused, the City Clerk will issue a leave of absence letter. Once that letter is issued, the Commissioner cannot serve on the Board for that meeting unless the Clerk formally rescinds that letter. Staff followed up with UCPD and BART PD regarding the November request for information. No response has come from either agency. In response to a question from last month’s MCC meeting: the City Manager or his/her designee will oversee the RFP process for ATTACHMENT III MCC 05-03-2012 Page 2 of 4 selecting a dispensary. Items for the 4/25 subcommittee packets are due by 4/17. Explained that staff believes that the current ordinance can allow BPG to move within Berkeley. Explained that letters from the Commission to outside agencies must be sent through Council – this will be discussed more in Item VII.B. Explained the reasoning behind staff interest in developing the dispensary regulations and selection process quickly so that a 4th dispensary can be selected as soon as possible. (Item VII.A.) Chairperson’s Report The Chair welcomed Commissioner Tims. The City has renewed motivation to get dispensary regulations and selection process finished. He recommended that the Commission accelerate the process. Issues that need to be included include restricting school facilities from locating within 600 feet of an established dispensary. In the long run, need to talk about expanding zones where businesses can locate. The subcommittees have been putting many hours into developing recommendations for the MCC. Gave a quick overview of the raid at Oaksterdam University. Subcommittee Reports Dispensary: Commissioner Pappas reported that the recommendations for the full MCC should be finished at the next meeting (4/25/12). There is lots of urging for additional dispensary spots. He will have a preface for the ordinance asking for additional dispensaries to be considered ready for the next MCC meeting. (Pfrommer arrived at this point) Discussion followed about why four was originally chosen as the limit for dispensaries. Some commissioners felt that the number was arrived at arbitrarily, but that Measure T allows the City Council to change the number. It was felt that if the MCC knew the reasoning, that information could help with an argument to increase the number. It was also mentioned that if the MCC wants more dispensaries, it should have reasons to back up the request – just because there is a demand from would-be dispensaries doesn’t mean there’s a demand from patients. Cultivation: Commissioner Jones acknowledged that the cultivation subcommittee is far along on its recommendations – they should have some ready for MCC consideration in two months. They are more concerned with developing good recommendations that quick ones. Commissioner Pappas added that zoning is a real obstacle and will need to be addressed. ATTACHMENT III MCC 05-03-2012 Page 3 of 4 Discussion and Action Items Item VII.A: Develop specific criteria for dispensaries to be included in an expedited approval process. Public Comment: One speaker. Commission Discussion: Commissioner Jones doesn’t know why we want to have an expedited process, and mentioned other City policy projects that were supposed to be quick but ended up taking years. Wants to see serious dialogue with the City Council. Chair Rush explained that the MCC was asked to develop an interim process while the State Supreme Court considers medical cannabis regulations. Secretary Greene explained the Commission’s advisory role to the Council. Commissioner Stoloff added that the MCC is not just an advocate for medical cannabis, and that the MCC should work to have a product with solid evidence behind it that they can defend. Commissioner Rice referred to Attachment VII.A.1 and asked why operational standards are being included along with the selection process. Chair Rush mentioned that this is an interim process, until a final process is adopted. He would like to include a pre-emption on schools locating within 600 feet of established dispensaries. Commissioner Pappas mentioned that the dispensary subcommittee isn’t ready to forward recommendations to the full MCC – it needs another three weeks. Some discussion followed on whether recommendations for the selection process should be included with new regulations for dispensaries. Perhaps regulations should be recommended, and suggested ordinance changes, such as dispensary hours, smoking at dispensaries, additional dispensaries, should be included for consideration. Chair Rush sensed that the Commissioners aren’t ready to move forward. Motion/second to include Attachment VII.A.1 as part of April 25th dispensary subcommittee packet (Jones/Ferguson-Riffe). Friendly amendment to include Attachment VII.A.2 was accepted. Amended motion carried 7-0-0-1. (Ayes: Ferguson-Riffe, Jones, Pappas, Rice, Rush, Stoloff, Tims. Noes: None. Abstains: None. Absent: Pfrommer (stepped away from the meeting for a few minutes.)) Commissioner Jones requested that the City Attorney give his work on the ordinance to the dispensary subcommittee to review at the April 25th meeting so that it can be considered when developing recommendations to forward to the full MCC for the May 3rd meeting. ATTACHMENT III MCC 05-03-2012 Page 4 of 4 Item VII.B: Review protocol for correspondence with outside agencies and vote on the next steps for letter to Superintendent Huyett (either ask Council to authorize the MCC to send the letter or do not send). Public Comment: None. Secretary Greene explained the protocol for communicating with outside agencies and referred the Commissioners to Attachment VII.B in the packet. Commission Discussion: Some discussion on whether to revise the letter to address the new Superintendent, and the need of the Commission to educate the community on medical cannabis issues. Motion/second to eliminate the 2nd sentence of the 3rd paragraph (Rice/Jones). Motion carried 8-0-0-0. (Ayes: Ferguson-Riffe, Jones, Pappas, Pfrommer, Rice, Rush, Stoloff, Tims. Noes: None. Abstains: None. Absent: None.) Motion/second to send the letter as amended to Council and ask Council to authorize the MCC to send this letter to Superintendent Huyett and the BUSD Boardmembers, and to include the Superintendent’s letter for context (Stoloff/Jones). Motion carried 8-0-0-0. (Ayes: Ferguson-Riffe, Jones, Pappas, Pfrommer, Rice, Rush, Stoloff, Tims. Noes: None. Abstains: None. Absent: None.) VIII. Information Items and Correspondence Secretary Greene mentioned that she spoke with Ms. TallBear and put her in touch with the community liaison for BPG to help resolve her concerns. Adjournment Meeting adjourned at 4:02 PM. Commissioners in attendance: 8 Members of the public in attendance: Between 20 – 25 Public speakers: Eight Length of meeting: 1 hour, 52 minutes APPROVED: _________________________________________ Elizabeth Greene Medical Cannabis Commission Secretary ATTACHMENT VII.A.1 MCC 05-03-2012 Page 1 of 3 Outline of Key Provisions of Ordinance Establishing Operating Standards for Medical Cannabis Dispensaries 12.27.010 Applicability The Chapter would apply only to Medical Cannabis Dispensaries as defined in Section 12.26.030.E. Regulations for cultivation facilities would come later. Note that this separation of dispensaries from cultivation facilities is contingent on whether the Supreme Court either depublishes or grants review of the decision in City of Lake Forest v. Evergreen. . 12.27.020 Definitions Definitions of key terms, such as: “Batch” (of medical cannabis) “Cooperative” “Cultivate” and “Cultivation” “Very Low Income” means a household whose combined annual gross income from all sources shall be no greater than 50% of area median income for the Primary Metropolitan Statistical Area. Medical Cannabis (would be as defined in Section 12.26.030.A) Medical Cannabis Product (edible and non-edible product) Member (of a dispensary) Not-for-Profit 12.27.030 Compliance with state and local law General requirement that dispensaries comply with all state and local laws, including payment of taxes 12.27.040 Registration requirements Requirement that dispensaries register with the City, including various informational requirements: Location Information re: compliance with law Contact information for all responsible persons and proof of status as qualified patient or primary caregiver and consent to background check Nature of the Dispensary’s organizational status 12.27.50 Operating Standards Only members may participate or be served, verification requirements Scale of cultivation (proportional to membership) 1 ATTACHMENT VII.A.1 MCC 05-03-2012 Page 2 of 3 Non-diversion (limit access, inventory controls) Dispensing (only to members, in appropriate amounts) No minors, except with parents or guardians Security (lighting, security guards, facility, cameras, alarms, cash handling) Neighborhood compatibility (security guards, graffiti, contact person, manager, signage, other nuisance conditions, litter control, loitering) Prohibitions on smoking, tobacco, alcohol Insurance requirements 12.27.060 Signage Regulations of exterior signs if any Requirement to post certain notices 12.27.070 Product safety and quality Packaging and labeling (medical cannabis and medical cannabis products) Measurement (i.e., weighing) Health standards for edible products Food handling practices Quality Control (testing for contaminants and dosage) Record keeping 12.27.080 Medical cannabis for low income Members Requirement to provide medical cannabis at no cost to very low-income members 12.27.090 Financial requirements Finances (not for profit) Financial record keeping and submission of audited financial records Inventory control and record keeping 12.27.100 Fourth dispensary Process and criteria for selecting fourth dispensary 12.27.110 Confidentiality of information All information to be kept confidential by City to extent legally permitted Information held by dispensaries to be kept confidential and anonymous to extent possible 12.27.120 Authority of City Manager 2 ATTACHMENT VII.A.1 MCC 05-03-2012 Page 3 of 3 City Manager may implement chapter and adopt regulations 12.27.130 Abatement of violations Violations are public nuisance 12.27.140 Fees City Council may establish the fees for administration and implementation of chapter 12.27.150 Severability Severability clause 3 Subject: FW: A Closer Look at Livescan Requirement Page 1 of 1 ATTACHMENT VII.A.2 MCC 05-03-2012 Page 1 of 4 From: [email protected] [mailto:[email protected]] Sent: Wednesday, April 18, 2012 12:30 PM To: Greene, Elizabeth Cc: [email protected] Subject: A Closer Look at Livescan Requirement Dear Dispensary Sub-Committee, I have a concern with the MBAP in regards to the requirement of a livescan. In the definitions category H: "'Management Member' means a Medical Cannabis Dispensary member responsible for the establishment, organization, registration, supervision or oversight of the operations of said Dispensary, including (but not limited to) members performing the function of president, vice president, director, operating officer, financial officer, secretary, treasurer or manager." At this time, I believe the livescan requirement should be discussed at greater detail at our next meeting on April 25th to examine the propensity of this requirement to directly contradict our Community Benefits of providing reentry services to the unemployed. Below is a link explaining in greater detail the process for livescan. http://www.berkeleylivescan.com/about.html Due to the current national political ecology of the Medical Cannabis Industry, we could be putting others at risk by requiring such personal information to be sent to the Department of Justice. Thank you for your time, Damond Tims file://G:\LANDUSE\Boards and Commissions\MCC\Dispensary subcommittee\2101-04-2... 4/18/2012 About Page 1 of 3 ATTACHMENT VII.A.2 MCC 05-03-2012 Page 2 of 4 mhtml:file://G:\LANDUSE\Boards and Commissions\MCC\Dispensary subcommittee\210... 4/18/2012 About Page 2 of 3 ATTACHMENT VII.A.2 MCC 05-03-2012 Page 3 of 4 mhtml:file://G:\LANDUSE\Boards and Commissions\MCC\Dispensary subcommittee\210... 4/18/2012 About Page 3 of 3 ATTACHMENT VII.A.2 MCC 05-03-2012 Page 4 of 4 [ home |about | services | contact | forms | reviews ] mhtml:file://G:\LANDUSE\Boards and Commissions\MCC\Dispensary subcommittee\210... 4/18/2012 ATTACHMENT VII.A.3 MCC 05-03-2012 Page 1 of 2 TO: Medical Cannabis Commission FROM: MCC Dispensary Subcommittee BY: Elizabeth Greene, MCC Secretary SUBJECT: Recommendations for criteria to include in the dispensary approval process DATE: April 25, 2012 Recommendation The Dispensary Subcommittee members met on April 25, 2012 and discussed recommendations for permitting regulations to forward to the full MCC for consideration. Below is the process for applicant selection that was developed by consensus in that meeting. The Subcommittee recommends: that the Merit-Based Approval Process (MBAP), be used as the default selection process, with the exception of using a three-tier application instead of the twotier system (outlined below); and that the Medical Cannabis Commission review the MBAP and the recommended changes and forward them to staff for inclusion in an approval process. Discussion The Dispensary Subcommittee decided that the MBAP should be used as the selection process, with one exception: that the applicant selection process should have three tiers or rounds, rather than the two listed in the MBAP. The extra tier (the first tier) would allow the applicants to go through an initial review without consideration of their location. This would allow businesses that do not have a location finalized at the beginning of the process to still be considered. A location would have to be secured by the time of the second tier of the process. The three recommended tiers would consist of the following: Tier 1: Qualification Round. (This is a pass/fail round – applicants would need to provide the following information to move on to Tier 2.) Applicant identification, with private information redacted (such as address, phone number, LiveScan results, Social Security numbers, date of birth, etc.). LiveScan for all corporation officers The business must be a qualified entity (i.e. have a not-for-profit corporate filing per the CA Secretary of State regulations, such as C-4, C-5 or C-7) List hours of operation Identify a Community Affairs Officer ATTACHMENT VII.A.3 MCC 05-03-2012 Page 2 of 2 Passing grade on a medical cannabis competency test. This test must be taken by the business’ Qualified Manager, and will demonstrate a working knowledge of state and local compliance standards. Tier 2: Evaluation Round. (This portion would evaluate the applicants based on the categories below. The top 10 applicants from this tier would move on to Tier 3.) Location of business Business Plan Security Plan Capitalization (up to three months of liability) Tier 3: Bonus Round. (Points would be awarded based on the bonus categories listed below. The top five businesses would move to the Final Selection process.) Consolidation (if a group of individuals or businesses decide to pool their resources and make one application, this should be All of the bonus categories listed in the MBAP. Final Selection process. The top five candidates would each have a public hearing before the City Manager (or designee). The City Manager would rank the candidates based on the application and the hearing and send a recommendation to the City Council. The City Council would make the final decision on the remaining candidates. ATTACHMENT VII.A.4 MCC 05-03-2012 Page 1 of 1 Possible Preface/Suggested Report from BMCC when Offering Dispensary Permitting Recommendations Since last December the Berkeley Medical Cannabis Commission and its Dispensary Subcommittee have worked diligently to formulate recommendations to the mayor and city council regarding medical cannabis dispensary permitting for the city of Berkeley. During the course of this process the majority of the commissioners believe that a reasonable necessity has been demonstrated for the creation of more than one additional medical cannabis dispensary in the city. The commission has come to this conclusion primarily based on the needs of local patients and the demands placed on the existing facilities. The proliferation of large collectives and delivery services, currently unlicensed and unregulated businesses, exemplifies this situation. Patients’ access is more secure, their individual requirements better served when more varied and different facilities / collectives / dispensing options are in place. Currently, medical cannabis patients certainly are feeling increased anxiety after 7 months of Federal activity throughout California and locally. Additionally, at both commission and sub committee hearings, there has been a great deal of interest and participation by several groups hoping to open a dispensary in Berkeley. Members from at least 3 larger collectives in the city as well have offered input and expressed opinions and perspectives. Due to the above circumstances, the commission urges the mayor and city council to consider adding up to five more medical cannabis dispensaries, one for each district in the city. Furthermore, possible changes to the Berkeley Municipal Code with respect to medical cannabis collectives should be discussed (redefinition, expansion). ATTACHMENT VIII.A MCC 05-03-2012 Page 1 of 2 TO: Cultivation Subcommittee of the Medical Cannabis Commission FROM: Elizabeth Greene, MCC Secretary SUBJECT: Information Regarding City Policies and Programs for Contractors DATE: April 18, 2012 Staff was asked by the Chair of the subcommittee to provide information about the types of issues that the City considers when entering into contracts with outside businesses, and specifically, issues which might be relevant to a future medical cannabis business selection process. In particular, four policies were identified: the Living Wage Policy, the Equal Benefits Policy, and the Local Business Preference Program. The City has many restrictions and preferences for businesses with which it does business. These rules do not necessarily apply to all contracts; some are triggered for goods provided, others for services, and still others for contracts over a certain amount. The requirements can range from restrictions on nuclear work, the prohibition on the use of certain food packaging, and requirements for the use of recycled products. The four policies/programs listed below were identified because they relate to worker benefits or local businesses. This memo is not intended to suggest that these, or any policies currently in place for contractors with the City of Berkeley, should apply to a selection process. They are presented at the request of the Chair for consideration purposes. Living Wage Policy (Ordinance 6,548 N.S., adopted in 2000). This policy requires specific contractors to pay a “living wage” and benefits to qualifying employees. See Berkeley Municipal Code Chapter 13.27 for more specific information on wage requirements. Equal Benefits Policy (Ordinance 6,623 – N.S., adopted in 2001) This policy requires that contractors with the City cannot discriminate in the provision of employee benefits between employees with spouses and employees with domestic partners, and/or between domestic partners and spouses of such employees. ATTACHMENT VIII.A MCC 05-03-2012 Page 2 of 2 Non-Discrimination Policy (Ordinance 5,876-N.S., adopted in 1988) This policy prohibits City contractors from discriminating against any employee or applicant for employment on any grounds specified in any State, Federal or municipal law, and requires that that any existing discrimination by remedied through appropriate methods. Local Business Preference Program This program allows businesses competing for small contracts to gain additional points toward the selection process if they are classified as a “certified local vendor”. For more information about these and other policies and programs, please visit the City’s Finance Department page, and click on Vendor Forms and Requirements: http://www.cityofberkeley.info/ContentDisplay.aspx?id=5418 g:\landuse\boards and commissions\mcc\reports & memos\2012\2012-05-03\viii.a_staff memo_information regarding city contract policies.docx ATTACHMENT IX.A MCC 05-03-2012 Page 1 of 3 From: Laura Menard [[email protected]] Sent: Tuesday, April 24, 2012 3:31 PM To: Greene, Elizabeth; Arreguin, Jesse L. Subject: Fwd: Code enforcement action re:Perfect Plants Patients Group 2840B Sacramento Street Please distribute the the MM commission members. thanks lm ---------- Forwarded message ---------From: Laura Menard <[email protected]> Date: Tue, Apr 24, 2012 at 1:51 PM Subject: Code enforcement action re:Perfect Plants Patients Group 2840B Sacramento Street To: [email protected], "Caplan, Michael" <[email protected]>, [email protected], "Cowan, Zach" <[email protected]>, "Upson, Erik M." <[email protected]>, [email protected], "Polizziani, Stephanie" <[email protected]>, "Moore, Darryl" <[email protected]>, "Meehan, Michael" <[email protected]>, [email protected] Dear City Staff, Perfect Plant Patients Group, 3PG, is operating daily at 2840B Sacramento St despite being noticed with a Cease and Desist letter in Dec 2011. Residents continue to be extremely concerned about this illegal business operation especially in light of an recent robbery of the owner Eric at his sister location in Vallejo. (see story below). I would like to understand what specific actions the city has taken since sending the operator the notice of violations which included the threat of daily fines. Has the city imposed the daily penalty fines? ATTACHMENT IX.A MCC 05-03-2012 Page 2 of 3 I have learned that the city attorney is considering a public nuisance abatement action, if this is true, why? Isn't the more direct and simplest method to force compliance available through a code enforcement action imposing the maximum daily fines as per municipal code? thanks. Laura Menard Code enforcement action re:Perfect Plants Patients Group Sacramento Street http://www.berkeleyside.com/2012/02/22/berkeley-orders-two-cannabiscollectives-to-shut-down/ The Perfect Plants Patients Group, or 3pgs, at 2840B Sacramento Street is still in business. “It has come to the City of Berkeley’s attention that you are operating a medical marijuana establishment that is dispensing medical marijuana in a nonresidential zoning district,” Gregory Daniel, the code enforcement supervisor, wrote to the two collectives on Dec. 8. “The establishment is in violation of the Berkeley Municipal Code … and must therefore cease and desist.” Daniel also told 3pgs that it is operating less than 600 feet from Longfellow Middle School, which is the minimum distance any cannabis entity can be from a school. If the landlords or 40 Acres had not stopped operations at 1820 San Pablo Avenue, they, like 3pgs, faced $500 a day in fines, wrote Daniel. 04/09/2012 A Vallejo marijuana dispensary was robbed Friday night, police said ATTACHMENT IX.A MCC 05-03-2012 Page 3 of 3 Sunday.At about 8 p.m., police responded to an armed robbery at Perfect Plants Patients Group "3PG's," 1988 Broadway.Two armed men entered the dispensary and demanded money from the store owner, police said. The owner gave them an undisclosed amount of money, before being pistol whipped by one suspect, police added.Before fleeing, the suspects also took an undisclosed amount of marijuana that the owner just brought in from his Berkeley dispensary, police added.The owner sustained facial injuries, but declined medical attention, police said.The suspects were described as black men, between 18 and 20, 5 feet, 10 inches tall, about 225 pounds. They were seen driving off in a black S500 Mercedes Benz. LATE ITEMS MCC 05-03-2012 Page 1 of 4 LATE ITEMS MCC 05-03-2012 Page 2 of 4 From: Mark Sydow [[email protected]] Sent: Thursday, April 26, 2012 8:18 AM To: Greene, Elizabeth Subject: "Profit" Is Allowed for Medical Cannabis Providers Page 1 of 2 LATE ITEMS MCC 05-03-2012 Page 3 of 4 Hello Elizabeth, Will you include a copy of this letter by Oakland attorney Robert Raich in the next BMCC agenda packet and the cultivation committee meeting information on May 2, 2012. Thank you, Mark Sydow > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > Date: Wed, 8 Feb 2012 14:25:35 -0800 From: [email protected] To: [email protected] Subject: DPFCA: "Profit" Is Allowed for Medical Cannabis Providers --------------------------------------------------------------------------There is a widely held misperception that businesses in the California medical cannabis industry are prohibited from making a profit. In reality, no California law prohibits cannabis-related businesses from making a profit. Opponents of medical cannabis, however, have done a masterful job of spreading disinformation since SB 420 was signed into law in 2003. That disinformation has become so prevalent that it is affecting safe access to medical cannabis by patients around the state, and has prompted retired state Senator John Vasconcellos to release a letter debunking the widely held misinterpretation that profit is not permitted for medical cannabis providers under California law. A link to a copy of his letter is attached. Sen. Vasconcellos co-chaired Attorney General Bill Lockyer's Medical Marijuana Task Force that drafted what eventually became SB 420, which was passed by the Legislature in 2003. (By the way, I was a member of that Task Force, where I was Chairman of the Caregiver Issues Subcommittee and also served on the Drafting Subcommittee.) As stated in his letter, Sen. Vasconcellos, is "deeply concerned that in the nine years since we passed SB 420, certain people have evidently been advocating a marked misinterpretation of . . . SB 420 - with regard to whether 'making a profit' is somehow not permitted for medical cannabis providers under state law." The confusion stems from a passage in SB 420, codified at Section 11362.765(a) of the Health and Safety Code, stating as follows: ". . . nor shall anything in this section authorize any individual or group to cultivate or distribute marijuana for profit." Sen. Vasconcellos denotes a self-evident fact about the language quoted above, namely, "Nothing in that section prohibits profit. Nothing in that section explicitly authorizes profit either. But I must point out that nobody is required to obtain an 'authorization' from the Legislature to make a profit in California." In the most direct terms possible, his letter states that SB 420's file://G:\LANDUSE\Boards and Commissions\MCC\Packet\2012\Late communications\Pr... 5/16/2012 > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > "language does not in any respect purport to prohibit profit -- if that had been the intent, the language would have so stated clearly. It obviously does no such thing." Page 2 of 2 LATE ITEMS MCC 05-03-2012 Page 4 of 4 This misinterpretation arose because the words in SB 420 were "the result of intensive and laborious compromise and consensus." The issue of profit in the California medical cannabis industry was one over which opinions differed on the Task Force. "Although certain members of our Task Force did advocate for a prohibition on profit-making, that position was firmly rejected by the Task Force" in favor of the compromise language quoted above. The problem is that opponents of medical cannabis, for reasons of their own (having nothing whatsoever to do with the safety or efficacy of cannabis), having not achieved their goal in the language of SB 420, instead spread disinformation as a way to try to make it more difficult for California patients to get access to medicine. Sen. Vasconcellos' letter is an attempt to overcome that propaganda. As with many aspects of California's medical cannabis law, there will be no definitive resolution of an issue until the California Supreme Court directly decides it. For the foregoing reasons, I expect the Court to concur with Sen. Vasconcellos' analysis if the question ever reaches the Court. In addition, a few local ordinances do purport to prohibit profit or "excessive profit" by cannabis providers, but those provisions are of questionable legality under our state Constitution, and under any circumstance, they have no relevance to the statewide applicability of SB 420. I should point out that there may be many good reasons for cannabis providers to operate on a nonprofit or not-for-profit basis, but adherence to California law is not necessarily one of them. For example, a cannabis provider may feel it can enhance its image by portraying itself as a not-for-profit entity, but that consideration is a public relations issue, not a legal imperative. -Robert Raich --------------------------------------------------------------------------Attachment: http://drugsense.org/temp/xog2dLGqSs30775.html Attachment: http://drugsense.org/temp/VasconcellosXSBX420Xltr.pdf ----------------------------------------------------------------------------------------------------------------------------------------------------- file://G:\LANDUSE\Boards and Commissions\MCC\Packet\2012\Late communications\Pr... 5/16/2012