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7A <br /> Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> December 14, 2009 <br /> SUBJECT <br /> Temporary moratorium on the establishment and operation of inedical marijuana <br /> collectives. <br /> RECOMMENDATION <br /> By 4/5 majority vote of the City Council, waive reading and estabtish a temparary <br /> moratorium on the establishment and operation of inedical marijuana col(ectives <br /> (Attachment 1). <br /> BACKGROUND <br /> In 1996, California voters adopted Proposition 215, the Compassionate Use Act (CUA} <br /> which allows for cultivation, possession, and use of inedical marijuana by seriously ill <br /> persons and their primary caregivers upon recommendation of a physician. <br /> In 2003, the California Legislature adopted the Medical Marijuana Program Act (MMP) <br /> which created a vo(untary program for the issuance of identification cards to qualified <br /> patients and their primary caregivers. The MMP immunized from prosecution certain <br /> limited conduct necessary to enable the program's purpose. It also quantifies the <br /> amount of marijuana a quafi#ied patient may possess. <br /> Together, the CUA and the MMP authorize such persons and those who care for them <br /> to grow the marijuana plants necessary to meet that need by "collectively" pooling their <br /> resources to grow and provide for their collective needs. This is why many municipal <br /> ordinances refer to these establishments as "collectives", which are substantially similar <br /> to cooperatives and are defined as such in the attached ordinance. In contrast to <br /> collectives, the law does not allow for"dispensaries"where entrepreneurs sell marijuana <br /> to provide for the needs of an undefined group of customers. <br /> State law allows for collectives and/or cooperatives but places very few limits on these <br /> businesses. Cities across California have approached medica! marijuana collectives in <br /> three different ways: <br /> • Allow but regulate collectives (about 30 cities); <br /> • Ban collectives (10� cities); or <br /> • Temporarily ban collectives by enacting a moratorium (50 cities}. <br /> Some 30 cities have chosen to allow collectives but regulate them fairly stringently by <br /> limiting them to designated areas though zoning, and requiring security precautions. <br /> The cities of South San Francisco and San Mateo, and the County of San Mateo are <br /> local examples of municipalities that allow but regulate collectives. <br /> 1 <br />