Medical Marijuana Update

The first dispensary in Phoenix has opened, dispensaries in Washington, DC, are ready to go, and there has been more federal enforcement activity in California. Let's get to it:

On Saturday, the first licensed dispensary in Phoenix opened its doors, but it couldn't serve any customers because an Arizona Department of Health Services computer server was shut down, affecting all the state's dispensaries. The Bloom Sky Train dispensary rescheduled its official grand opening to Wednesday. It will serve some of the state's 35,000 medical marijuana card holders.

California

Last Thursday, federal prosecutors moved against 63 dispensaries in Santa Ana. Prosecutors filed three asset forfeiture lawsuits against properties where seven dispensaries are operating and raided two of the stores involved. Also, prosecutors send threat letters to people associated with 56 other dispensaries. That is every known dispensary in the city. The Santa Ana Police and Santa Ana City Attorney's Office cooperated with the feds.

Also last Thursday, San Diego Mayor Filner published his proposed dispensary ordinance.The proposal is based on the recommendations of the medical marijuana taskforce, organized by City Council President Todd Gloria in 2010. It allows medical cannabis dispensaries to exist in designated commercial and industrial areas of the city with large buffers from sensitive areas, including a 600 foot buffer from schools and parks and a 1,000 foot buffer between dispensaries. The proposal also contains additional strict operating requirements including security systems, restriction on hours of operations and signage.  

On Monday, the San Diego city council rejected Mayor Filner's proposed ordinance. Instead, the council voted to reintroduce a more restrictive zoning proposal overturned by a voter signature drive in 2011. The decision came after the council heard hours of testimony, with most speakers favoring the mayor's proposal. But Councilmember Marti Emeral put forth a motion to disregard the mayor’s proposal without any discussion of its provisions and to instead resurrect the proposal put forth by the council, and repealed through voter referendum, in 2011. That measure passed the council.   

On Tuesday, the DEA and a local drug task force raided the last dispensary in San Diego and nine associated grow sites. Raided was the One on One Patients Association, whose director, Ken Cole, had testified the previous night at the city council's hearing on the mayor's proposed dispensary ordinance. No arrests were made, but marijuana and other items were seized. Cole is also the director of the area dispensary industry group, the United Patients Alliance.

Also on Tuesday, a medical marijuana regulation bill was approved by a legislative committee. Sponsored by Assemblyman Tom Ammiano (D-San Francisco), Assembly Bill 473 would create a medical marijuana regulation division in the Department of Alcoholic Beverage Control to "regulate the cultivation, manufacture, testing, transportation, distribution, and sale of medical marijuana" on a statewide basis. The measure passed the Assembly Public Safety Committee, which is chaired by Ammiano.

Also on Tuesday, Tulare County supervisors extended their ban on new dispensaries or the expansion of existing for another two years. An existing ban was set to expire next week, and officials said the ban was needed because of constantly changing laws, regulations, court rulings and lawsuits. The county said the changing legal landscape for medical marijuana makes it difficult to license new facilities. The ordinance only bans new facilities or the expansion of those already in existence. Those currently operating will not be forced to close.

On Wednesday, the DEA raided two San Diego area hydroponics stores. Local activists reported that the targets were Miramar Hydroponics in San Diego and Santee Hydroponics in Santee. No word yet of what was seized or whether anyone was arrested.

Connecticut

On Monday, a hearing on proposed medical marijuana regulations drew a standing room only crowd at the Department of Consumer Protection. Crowd members voiced concerns about the regulations' potential effect on lawful marijuana producers and distributors. The two most frequent concerns among the business community came in response to proposed requirements for escrow accounts and brand naming. The regulations stipulate that marijuana producers establish a $2 million escrow account or line of credit which the state could seize if the producer failed to maintain a timely and successful operation. Drug abuse activists on hand at the public hearing expressed their own concerns about the regulation, mostly related to the possible diversion of medical marijuana for recreational use and advertisements targeting youth. The Department of Consumer Protection is expected to submit the final regulations to the General Assembly by July.

District of Columbia

On Tuesday, the Capital City Care dispensary announced it had received its business license. Dispensary operators said they would begin serving patients "as soon as possible," but they have to wait for the DC Department of Health to begin its patient registration process. Two other DC dispensaries, Takoma Wellness Center and the Metropolitan Wellness Center, are also waiting to accept patients. It's only been 15 years since DC voters approved medical marijuana in a 1998 initiative.

Rhode Island

Last Friday, the state's first dispensary opened. The Thomas C. Slater Compassion Center opened in Providence. At least two more are slated to open in coming months.