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Rq � ATTACHMENT .� 7.A. - Page 30 � Page 1 REPORT To the Honorable Mayor and City Council From the Cit Mana er De�ember 14, 2009 Sus��cT Temporary moratorium on the establishment and aperation of inedical marijuana collectives. RECOMMENAATI�N By 4/5 majorfty vote ofi the City Cour�cil, waive reading and establish a #emporary moratorium on the establishment and operation of inedical marijuana colfectives (Attachmen# 1). BACKCa�iDUND In 1996, California voters adopted Propasitian 215, the Compassianate Use Ac# (CUA) which allows for cultivation, possession, and use of inedical marijuana �y seriously ill persons and their primary caregivers upon recommen�ation of a physician, ln 2003, th� Ca[ifarnia Legislatur� adopted th� Medical Marijuana Program Act (MMF') which created a vofuntary program for #he issuance of i�entificatian cards to qualEfied patients and their �rimary caregivers. The MMP imm�nized from prosecutior� certain fimited conduct r�ecessary to enable the program's p�rpose. [t also quantiffes the amount af marijuana a quafi#ie� patient may possess, Together, the CUA and the MMP authorize suc� persons and those who care for t�em #o g�ow the marijuana piants necessary ta m�et that need by "collectively" poo[ing their reso�rces to grow and provide for tl�eir caliective needs, This �s why many municipal ordinances refer to #hese establishments as "collectives", which are substantially similar to cooperatives and are defined as such in t�e attached ordina�ce. �n contrast tv coliectives, the law does not a�low for"dispensaries" where entr�preneurs sell marijuana to provide for the n�eds af an undefined group of custamers. State law aflows for collectives andlor cooperatives but places �ery few limits on these businesses. Cities acrass California have approached medicai marijuana coNectives in tl�ree different ways: + Allow but regufate colfec#ives (about 30 cities); • Ban callectives (1�a ci#iES); or • Temporarily ban cpllectives by ar�acting a mo�'atorium (50 cities). Same 30 cities have chosen ta alEow collectives b�t regt�late them fairly stringently by limiting them #o designated areas though zonir�g, ar�d requiring securiijr precautiflns. The cities of 5outh San Fran�isco and San Mateo, and tf�e County o� San Mateo are lacal examples of municipalities that aflow �ut regulate collectives. �