BILL ANALYSIS                                                                                                                                                                                                    �







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              S
                             2011-2012 Regular Session               B

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          SB 847 (Correa)                                             
          As Amended April 25, 2011
          Hearing date:  May 5, 2011
          Health and Safety Code
          JM:mc

                                   MEDICAL MARIJUANA  

                                       HISTORY

          Source:  City of Anaheim

          Prior Legislation: AB 2650 (Buchanan) - Chapter 603, Stats. 2010
                       SB 420 (Vasconcellos) - Chapter 875, Stats. 2003
                       Proposition 215, November 1996 General Election
                         
          Support: Peace Officers Research Association of California

          Opposition:Americans for Safe Access; Drug Policy Alliance 


          (THIS BILL IS ANALYZED AS PROPOSED TO BE AMENDED IN COMMITTEE 
          PURSUANT TO AN AGREEMENT BY THE AUTHOR MADE IN THE GOVERNANCE 
          AND FINANCE COMMITTEE.)


                                        KEY ISSUES
           
          SHOULD A SPECIFIED MEDICAL MARIJUANA ENTITY THAT OPERATES THROUGH A 
          STOREFRONT OR MOBILE RETAIL OUTLET BE PROHIBITED FROM LOCATING 
          WITHIN A 600-FEET RADIUS OF A "RESIDENTIAL ZONE OR RESIDENTIAL USE?" 






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          SHOULD A CITY COUNCIL OR COUNTY BOARD OF SUPERVISORS BE AUTHORIZED 
          TO ENACT AN ORDINANCE THAT SETS A DIFFERENT STANDARD FOR THE 
          LOCATION OF MEDICAL MARIJUANA ESTABLISHMENTS IN RELATION TO 
          RESIDENTIAL USES THAN THE STATEWIDE 600-FEET LIMIT?


                                       PURPOSE

          The purpose of this bill is to prohibit a medical marijuana 
          cooperative, collective, dispensary, operator, establishment or 
          provider that operates through a storefront or mobile retail 
          outlet from being located within a 600-feet radius of a 
          "residential zone or residential use," unless the local 
          governing entity (city council or board of supervisors) enacts 
          an ordinance regulating the residential location of such medical 
          marijuana entities.

           Existing law  - the Compassionate Use Act of 1996 (Health & Saf. 
          Code � 11362.5) - includes the following purposes:

           To ensure that seriously ill Californians have the right to 
            obtain and use marijuana for medical purposes where such use 
            is deemed appropriate and has been recommended by a physician 
            for treatment of cancer, anorexia, AIDS, chronic pain, 
            spasticity, glaucoma, arthritis, migraine, or any other 
            illness for which marijuana provides relief.

           To ensure that patients and primary caregivers who obtain and 
            use marijuana for medical purposes upon the recommendation of 
            a physician are not subject to criminal prosecution.

           To encourage the federal and state governments to implement a 
            plan to provide for the safe and affordable distribution of 
            marijuana to all patients in medical need of marijuana.  
            (Health and Saf. Code � 11362.5, subd. (b)(1)(A)-(C).) 

           Existing law  - the Compassionate Use Act - also provides:

          � The act shall not be construed to supersede legislation 
            prohibiting persons from engaging in conduct that endangers 




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            others, or to condone the diversion of marijuana for 
            non-medical purposes.  (Health & Saf. Code � 11362.5, subd. 
            (b)(2).)

          � No physician in California shall be punished or denied any 
            right or privilege for recommending medical marijuana to a 
            patient.  (Health & Saf. Code � 11362.5, subd. (c).)

          � Penal laws relating to the possession of marijuana and the 
            cultivation of marijuana shall not apply to a patient, or to a 
            patient's primary caregiver, who possesses or cultivates 
            marijuana for the personal medical purposes of the patient 
            upon the written or oral recommendation or approval of a 
            physician.  (Health & Saf. Code � 11362.5, subd. (d).)

           Existing law  provides that qualified patients, persons with 
          valid identification cards, and the designated primary 
          caregivers of qualified patients and persons with identification 
          cards, who associate within the State of California in order 
          collectively or cooperatively to cultivate marijuana for medical 
          purposes, shall not solely on the basis of that fact be subject 
          to state criminal sanctions under existing law.  (Health & Saf. 
          Code � 11362.775.)
           
          Existing law  prohibits any medical marijuana cooperative, 
          collective, dispensary, operator, establishment, or provider who 
          possess, cultivates, or distributes medical marijuana, as 
          specified, from being located within 600 feet of a school.  
          (Health & Saf. Code � 11362.768.)  

          Existing law  states that the 600-feet distance shall be the 
          horizontal distance measured in a straight line from the 
          property line of the school to the closest property line of that 
          lot on which the medical marijuana cooperative or dispensary is 
          located, without regard to intervening structures.  (Health & 
          Saf. Code � 11362.768, subd. (c).)  
           
           Existing law  provides that the 600-feet restriction shall not 
          apply to medical marijuana cooperatives or dispensaries, as 
          specified, which are also licensed residential medical or elder 




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          care facilities.  (Health & Saf. Code � 11362.768, subd. (d).)  
           
           Existing law  provides that 660-feet restriction shall only apply 
          to a medical marijuana facility, as specified, authorized by law 
          to possess, cultivate or distribute medical marijuana that has a 
          storefront or mobile retail outlet that ordinarily requires a 
          business license.  (Health & Saf. Code � 11362.768, subd. (e).)  
          
           Existing law  states that a local entity can only adopt local 
          ordinances that impose more restrictive requirements on the 
          location of a medical marijuana cooperative, collective, 
          dispensary, operator, establishment, or provider that is 
          authorized by law to possess, cultivate or distribute medical 
          marijuana than imposed under state law.  (Health & Saf. Code � 
          11362.768, subd. (f).)  
          
           Existing law  does not preempt local ordinances, adopted prior to 
          January 1, 2011, that regulate the location or establishment of 
          a medical marijuana cooperative, collective, dispensary, 
          operator, establishment, or provider.  (Health & Saf. Code � 
          11362.768, subd. (g).)  
           
           This bill  prohibits a medical marijuana cooperative, collective, 
          dispensary, operator, establishment or provider that operates 
          through a retail or mobile retail outlet from being located 
          within a 600-feet radius of a residential zone or residential 
          use.

           This bill  provides that the 600-feet limit would not apply if a 
          local governing entity (city council or board of supervisors) 
          enacts an ordinance specifically regulating the residential 
          location of such medical marijuana entities.  The local 
          ordinance concerning establishment of medical marijuana 
          establishments in relation to residences can either be more 
          restrictive or less restrictive than state law.  

                                      COMMENTS
              1.   Need for This Bill
                         
          According to the author:




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               SB 847 as presented in the Governance and Finance 
               Committee to be officially amended here creates a 
               600-foot buffer zone between marijuana dispensaries 
               and residential neighborhoods and residential usage 
               areas.  The language will create a "good neighbor 
               fence" of a default 600-foot buffer zone which will 
               NOT override any existing local ordinance nor prevent 
               any future local ordinance from superseding this 
               measure.

               The bill will provide a basic distance between what 
               many believe to be an incompatible use within a 
               neighborhood.  The legislature has recognized the 
               conflict by establishing such a buffer zone around 
               schools last year in AB 2650 (Buchanan), Ch. 603, 
               Stats. 2010.  This bill simply provided a default 
               buffer zone of 600 feet from residential areas until 
               government that hasn't enacted its own local ordinance 
               acts on its own with a smaller or larger buffer.

               This measure is necessary to respond to the growing 
               number of dispensaries that in some cases have 
               literally opened shop right under apartments with 
               kids, with families subjected to second-hand marijuana 
               smoke.  I know this because I personally witnessed 
               this in my own district.

               This measure does not restrict the number of 
               businesses that can open.  That is up to local 
               government.  This measure will simply protect our 
               neighborhoods and our children.  The debate over 
               medical marijuana is not whether these should be made 
               available; the voters said it should be for medical 
               uses.  The issue is whether these businesses, such as 
               in other instances such as alcohol and other adult 
               venues should be kept a reasonable distance from where 
               children play and families live.

          2.  Compassionate Use Act of 1996 (Proposition 215) - Medical 




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            Marijuana
           
          The Compassionate Use Act (CUA) was enacted in 1996.  (Health & 
          Saf. Code � 11362.5.)  The CUA established the right of patients 
          to obtain and use marijuana to treat specified illnesses and any 
          other illness for which marijuana provides relief.  
          Additionally, the CUA specifically protects physicians who 
          recommend the use of marijuana to patients for medical purposes 
          and exempts qualified patients and their primary caregivers from 
          California drug laws prohibiting possession and cultivation of 
          marijuana.  

          The CUA is a very general law.  It establishes the right of a 
          patient to obtain medical marijuana pursuant to a physician's 
          recommendation.  The initiative then simply encourages the state 
          and federal governments to "implement a plan for safe and 
          affordable distribution or marijuana �to qualified patients]."  
          It has been argued that very little has been done to implement 
          the initiative.  (McCabe, It's High Time: California Attempts to 
          Clear the Smoke Surrounding the Compassionate Use Act, (2004) 35 
          McGeorge L. Rev. 545, 546.)  Instead of a comprehensive 
          implementation plan, numerous uncoordinated bills have been 
          introduced in the Legislature.  Further, the courts have only 
          provided a small measure of clarity and certainty in this area.  


          3.  California Constitutional Provisions Limit the Ability of the 
            Legislature to Amend the CUA   

          Legislative Power to Amend Initiatives Generally
          
          The California Constitution states, "The Legislature ? may amend 
          or repeal an initiative statute by another statute that becomes 
          effective only when approved by the electors unless the 
          initiative statute permits amendment or repeal without their 
          approval."  (Cal. Const., art. II, Sec. 10.)  Therefore, unless 
          the initiative expressly authorizes the Legislature to amend an 
          initiative, only the voters may alter statutes created thereby. 

          Legislation Affecting the Compassionate Use Act - Legislature 




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          Cannot Limit the Amount of Medical Marijuana a Patient may 
          Possess
          
          The California Supreme Court recently ruled on the power of the 
          Legislature to amend or affect the Compassionate Use Act (CUA).  
          (People v. Kelly (2010) 47 Cal.4th 1008.)  In Kelly, the court 
          ruled that the legislative restriction on the number of plants a 
          qualified medical marijuana patient may possess was 
          unconstitutional as it interfered with the rights established by 
          the CUA initiative.  Although the Legislature may clarify or 
          expand the rights established in the CUA, it may not enact 
          legislation that interferes with those.

          The Kelly Court stated:  

               Under the CUA  �patients and primary caregivers] are 
               not subject to any specific limits and do not require 
               a physician's recommendation in order to exceed any 
               such limits; instead they may possess an amount of 
               medical marijuana reasonably necessary for their, or 
               their charges', personal medical needs.  ? In this 
               sense, quantity limitations conflict with - and 
               thereby substantially restrict - the CUA's guarantee 
               that a qualified patient may possess and cultivate any 
               amount of marijuana reasonably necessary for his or 
               her current medical condition.  In that respect, 
               Section 11362.77 improperly amends the CUA in 
               violation of the California Constitution.  (People v. 
               Kelly, supra, 47 Cal.4th at p. 1044.)

          Restrictions in this Bill on Placing a Medical Marijuana 
          Establishment within Specified Distances from Residences
          
          This bill creates a statewide prohibition for any medical 
          marijuana collective, cooperative, operator, provider or 
          dispensary to be located within 600 feet of a residential zone 
          or residential use, unless the city council or board of 
          supervisor adopts an ordinance "specifically regulating the 
          location of such establishments in relation to residential 
          uses."  The statewide restriction, applicable in the absence of 




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          a local ordinance, is very broad.  Residential use would appear 
          to mean any residence, even in any area that is otherwise 
          commercial or industrial.

          It appears that a local ordinance regulating the placement of 
          medical marijuana entities near residences could either be more 
          restrictive or less restrictive than the 600-feet statewide 
          standard.  An ordinance in one county could provide that no 
          facility could be within 5,000 feet of a residence for example.  
          An ordinance in another county or a city could allow such 
          entities to operate in residential areas with few limitations.  
          Local government ordinances on medical marijuana entities could 
          well be subject to frequent amendment or repeal, further 
          complicating matters for medical marijuana providers.

          This Bill Applies to Entities that Normally Require a Business 
          License; Complications with Cooperatives and Collectives
          
          It must be noted, however, that the bill and the statute the 
          bill amends only apply to an entity with a storefront or mobile 
          retail outlet that ordinarily requires a local business license. 
           A dispensary or establishment that operates like any retail 
          business would clearly fall under the terms of this bill.

          Things are not as clean when the bill is applied to cooperatives 
          and collectives.  Health and Safety Code Section 11362.775<1> 
          specifically authorizes patients and primary caregivers to 
          create and operate collectives and cooperatives and be free from 
          criminal prosecution for possession, cultivation, sale or 
          distribution and transportation of medical marijuana.  (Health & 
          Saf. Code � 11362.775.)  California appellate courts appear to 
          indicate that this statute is valid under the CUA as advancing 
          the intent of the initiative.  (County of Butte v. Superior 
          Court (2009) 175 Cal.App.4th 729, 732-733; People v. Urziceanu 
          (2005) 132 Cal.App.4th 747, 785.)

          A cooperative (coop) is a creature of state law and subject to 
          ---------------------------
          <1> Section 11362.775 is not part of the CUA itself.  Rather, it 
          was enacted in SB 420 (Vasconcellos), Ch. 875, Stats. 2003, with 
          the intent of implementing the CUA.



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          detailed regulations.  (Guidelines for the Security and 
          Non-Diversion of Marijuana Grown for Medical Use, Cal. Attorney 
          General. Aug. 2008, p. 8.)  It appears that a coop would 
          ordinarily require a local business license.  As to coops, the 
          constitutionality of this bill would turn on whether or not the 
          bill restricts the rights of patients to obtain and use medical 
          marijuana as provided in the CUA and Health and Safety Code 
          Section 11362.775, which provides specific criminal immunity for 
          patients in coops.  

          Unlike cooperatives, collectives are largely undefined.  
          (Guidelines for the Security and Non-Diversion of Marijuana 
          Grown for Medical Use, Cal. Attorney General. Aug. 2008, p. 8.)  
          The application of the bill to collectives could be complicated. 
           For example, a marijuana dispensary or more traditional form of 
          business could be deemed by its operators to be a collective and 
          claim that it need not obtain a business license.  





          Summary
          
          In many jurisdictions, this bill would greatly reduce medical 
          marijuana dispensaries, cooperatives and collectives.  The bill 
          would allow local government authority to enact even more 
          restrictive ordinances, perhaps eliminating any possibility of a 
          medical marijuana facility in any urban or suburban area.  

          If a statewide prohibition on specified medical marijuana 
          facilities within 600 feet of a residential use would 
          unconstitutionally amend the CUA, it is doubtful that such a 
          prohibition is saved by providing statutory authority of a local 
          government to allow such placement of medical marijuana 
          entities, especially where a local ordinance could be more 
          restrictive than the 660-feet restriction in state law.  A right 
          guaranteed by initiative certainly cannot be conditioned on, or 
          limited by, local government initiatives.  Simply put, only the 
          voters or the Legislature, and the Legislature only under 




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          specified conditions, can amend an initiative.  While this 
          particular issue was not decided by the Supreme Court in Kelly, 
          that result seems extremely likely.  (People v. Kelley, supra, 
          47 Cal.4th 1008, 1025-1049.)

          CAN THE LEGISLATURE CONSTITUTIONALLY PROHIBIT A VALID 
          COOPERATIVE OR COLLECTIVE FROM OPERATING WITHIN 600 FEET OF ANY 
          RESIDENTIAL ZONE OR USE?

          CAN THE LEGISLATURE CONSTITUTIONALLY PROHIBIT A DISPENSARY, 
          OPERATOR, ESTABLISHMENT, OR PROVIDER FROM OPERATING WITHIN 600 
          FEET OF ANY RESIDENTIAL ZONE OR USE?

          CAN THE LEGISLATURE AUTHORIZE CITIES AND COUNTIES TO ENACT 
          ORDINANCES SPECIFICALLY REGULATING THE LOCATION OF MEDICAL 
          MARIJUANA ESTABLISHMENTS, AS SPECIFIED, IN RELATION TO 
          RESIDENCES, THEREBY EXCEPTING THE CITY OR COUNTY FROM THE 
          600-FEET STANDARD FOR MEDICAL MARIJUANA ESTABLISHMENTS?


          IF THIS BILL CREATES SUBSTANTIAL BARRIERS FOR PATIENTS IN 
          OBTAINING MEDICAL MARIJUANA, WILL THE BILL BE AN INVALID 
          AMENDMENT OF THE COMPASSIONATE USE ACT, WHICH AUTHORIZES 
          THE USE OF MEDICAL MARIJUANA?

          4.  Apparent Conflicts with Existing Provisions Created by this 
            Bill - Suggested Amendment  

          This bill amends Health and Safety Code Section 11362.768, which 
          prohibits a medical marijuana establishment from operating 
          within 600 feet of a school.  Subdivision (g) of Section 
          11362.768 specifically provides that ordinances adopted prior to 
          January 1, 2011, are not preempted by the section.  However, 
          subdivision (f) provides that local ordinances adopted after 
          January 1, 2011, are only valid if more restrictive than the 
          660-feet state standard.  

          This bill prohibits a medical marijuana establishment from 
          operating within 600 feet of a residential use.  The bill also 
          allows a local entity to adopt an ordinance regulating operation 




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          of a medical marijuana establishment in relation to residential 
          use that is either more or less restrictive than the 660-feet 
          statewide standard.









































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          Thus, the bill creates conflicting provisions in Section 
          11362.768 as to local ordinances regulating the placement of 
          medical marijuana establishments.  It is suggested that the bill 
          be amended to clarify that the local ordinances can only be more 
          restrictive than state law if the ordinance concerns the 
          distance from a medical marijuana establishment to a school.

          SHOULD THE BILL BE AMENDED TO CLARIFY THE DIFFERENT STANDARDS 
          FOR LOCAL ORDINANCES CONCERNING THE PLACEMENT OF MEDICAL 
          MARIJUANA ESTABLISHMENTS NEAR SCHOOLS AS OPPOSED TO RESIDENCES? 

          5.  Related Bill - AB 1300 (Blumenthal)  

          AB 1300 would define the terms "cooperative or collective" for 
          purposes of the CUA to mean a location where qualified patients, 
          persons with valid identification cards or primary caregivers 
          "associate ? in order to collectively or cooperatively cultivate 
          or dispense marijuana for medical purposes ?"  The bill could be 
          interpreted as defining cooperatives differently in the medical 
          marijuana context than in other state law.  The definition in AB 
          1300 is arguably much more informal than an incorporated 
          cooperative, such as the Sacramento Food Coop or a farmers' 
          coop.  An informal cooperative or collective might not need a 
          business license, which could exempt it from regulation under 
          this bill.

          Further, AB 1300 provides that it is not intended to prevent any 
          local entity from adopting an ordinance regulating medical 
          marijuana cooperatives or collectives.  Similar uncertainties to 

          those surrounding this bill would face implementation of AB 
                                                                 1300. 

          AB 1300 is currently in Assembly Health.

          6.  Los Angeles Ordinance Illustrates the Difficulty of Regulating 
            Medical Marijuana  

          Terms of the Ordinance




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          The Los Angeles City Council adopted a medical marijuana 
          dispensary ordinance in January, 2010.  Two of the main reasons 
          stated by proponents of the measure were that dispensaries were 
          proliferating too rapidly and concentrating in certain areas.  
          It appears that residents in some areas complained of excess 
          traffic, congregation of patients near sites, litter and other 
          problems.

          The Los Angeles ordinance prohibits medical marijuana 
          dispensaries from being located within 1,000 feet of sensitive 
          locations, including schools, churches and parks.  A provision 
          in the ordinance allows police to obtain patient lists and 
          doctor's recommendations from a dispensary 
          without a warrant.  It also appears that a violation of the Los 
          Angeles ordinance is punishable by a jail term of up to six 
          months and civil fines of up to $2,500 per day.  In the past 
          week, orders to approximately 440 dispensaries to shut down were 
          implemented.

          Court Challenges
          
          It appears that numerous challenges to the ordinance were filed 
          in Los Angeles courts.  An April 21, 2011, article in the Los 
          Angeles Times noted:

               The next round of the costly, drawn-out legal brawl 
               over how to control medical marijuana dispensaries in 
               Los Angeles has begun with two new lawsuits 
               challenging the city's latest ordinance.  The 
               lawsuits, filed in Los Angeles County Superior Court, 
               follow scores of other suits that stymied the city's 
               fitful attempts to crack down on an unknown number of 
               renegade dispensaries.  The new ones could launch 
               another series of judicial hearings and thwart the 
               city's bid to enforce its ordinance.

               Some of the oldest medical marijuana collectives in 
               Los Angeles sued on April 13 to overturn the 
               ordinance, which will choose the dispensaries to be 












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               allowed in a lottery, a process the lawsuit mocks as 
               "a euphemism for a municipal game of 'Russian 
               Roulette.'"  The 21 dispensaries suing the city are 
               among those the City Council let operate when it 
               adopted a moratorium on new stores in 2007.  The 
               city's first ordinance would have allowed them to stay 
               open if they complied with restrictions on locations.  
               But a judge ruled that key aspects of the law were 
               unconstitutional, and the City Council passed a second 
               ordinance that relies on a random drawing to select 
               100 dispensaries.
           
          ARE CHALLENGES TO THE LOS ANGELES ORDINANCE STILL BEING 
          LITIGATED?


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