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City Council Amends Medical Marijuana Regulations

Public has until Dec. 7 to offer arguments for or against taxing marijuana, plus 10 other ballot measures in March.

 

The Los Angeles City Council on Wednesday approved three amendments to an ordinance designed to regulate medical marijuana, ending any uncertainty that marijuana dispensaries may or may not have an additional six months to comply with city regulations that allow no more than 70 marijuana facilities to operate in Los Angeles.

The amendments, which were approved Nov. 24 by three separate votes, also clarified two other issues: First, that all employees of a medical marijuana facility—not just its owner or manager—will be held responsible for running the dispensary according to the law. And second, a marijuana facility may legally remain open if it either has the same ownership or management that was in place in November 2007, the cut-off date to register the dispensaries with the city and the state, or if the dispensary was registered as a California nonprofit corporation before the City Council passed the ordinance in November 2007.

Los Angeles District 14 Councilmember José Huizar was among those who voted for the three amendments to the ordinance, which he helped introduce. Shutting down medical marijuana facilities operating illegally in Eagle Rock is one of Huizar's top administrative priorities. He has said publicly on numerous occasions that a disproportionately large number of medical marijuana facilities are based in Eagle Rock.

Yesterday, Huizar voted against a controversial proposal to tax medical marijuana. The City Council approved the measure, which will be among 11 ballot initiatives during city elections on March 8. The measure was approved even though the City attorney has deemed any tax on medical marijuana as illegal on the grounds that medical marijuana facilities are nonprofit organizations and the sale of marijuana is prohibited by federal law.

"The Councilmember has said that the sale of marijuana is not allowed, according to the ordinance, so how can we tax it?" said Rick Coca, communications director at Huizar's District 14 office. Further, Huizar has also said that the ordinance does not permit the sale of marijuana—only its tightly controlled distribution by a collective or the direct cultivation of marijuana by patients.

The three amendments approved today came up before the City Council for consideration last week on Nov. 17. Today's vote was the final one, and it effectively extends by six months a Dec. 4 deadline for medical marijuana dispensaries to comply with a set of regulations that will restrict the number of dispensaries in Los Angeles to 70.

Giving marijuana dispensaries more time to comply with the law "is not going to impact on legislation," Huizar told Eagle Rock Patch last week after the Nov. 17 vote. "It's just helping us clarify the legislation—and that happens with every legislation."

The provisions of the medical marijuana ordinance have been the subject of intense litigation in the court of Los Angeles Superior Court Judge Anthony J. Mohr, who is expected to rule on the constitutionality of the ordinance in January.

In another important development, City Council President Eric Garcetti has invited the public to offer written arguments regarding the 11 ballot measures scheduled to appear on the March 8 ballot, according to an announcement made Wednesday by Los Angeles City Clerk June Lagmay.

The ballot measures include such issues as increased funding for the Los Angeles Public Library system, a revision of the requirements for employment with the City, and the imposition of excise tax on oil producers in Los Angeles.

Related Topics: Ballot Measures, City Council, José Huizar, and Medical marijuana
Do you think medical marijuana should be taxed? Make your voice known here—as well as before the City Council. Tell us in the comments.

Michael Larsen

8:35 pm on Wednesday, November 24, 2010

This only effects two dispensaries in Eagle Rock: Cornerstone at 4623 E.R. Blvd. and Eagle Rock Herbal Collective at 4729 E.R. Blvd.

The other two legal dispensaries are Southern California Collective at 1121 Colorado and Hazelwood Collective at 4619 1/2 York.

These four will be allowed to operate until June 2011 under the amended ordinance, and then they will have to leave Eagle Rock in order to comply.

All others are illegal and will hopefully eventually be shut down including House of Kush, Organic Healing, Medical Caregivers, The Green Cross, Another World, and AEC.

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Ajay Singh

9:08 pm on Wednesday, November 24, 2010

Thanks for the pointed breakdown, Michael. What do you think about the idea of taxing the legal dispensaries?

lamedicalmarijuana

2:01 am on Thursday, November 25, 2010

The primary reason that the amendments to the LA medical marijuana ordinance were enacted is to allow the new owners of the PRE ICO dispensaries to stay open under the disguise of simply having added new management.

adding "new managers" has been a time honored mafioso way of adding new owners without actually having a business change hands in the eyes of the government.

pre ico dispensaries had management changes to facilitate new owners taking over the dispensary.

Originally the LA Medical Marijuana ordinance did not allow any management changes what so ever to stop shadowy groups from purchasing dispensaries.

But after only 40 or so PRE ICO dispensaries were found to have no management changes what so ever did the LA Times have a negative la medical marijuana ordinance article; most likely it was a prepaid-for editorial piece praising the PRE ICO Collectives that were going to get shutdown. And yes you can pay for editorial pieces to be run in the LA Times. the "new owners" aka the new managers, staff etc grouped together and paid off the LA City council so that they, the new management/owners, could keep the PRE ICO dispensaries open and continue to hide the fact they purchased a not for profit collective from the original owners.

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Michael Larsen

8:56 am on Thursday, November 25, 2010

Ajay,
I'm not sure how you tax something that is not supposed to be sold.
I do look forward to the ordinance being enforced and the dispensaries having to open their books. I would also encourage the legit ones in ER to open their books now to show the community that they are indeed non-profit, and that they are paying their sales tax commitments.

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Ajay Singh

12:21 pm on Thursday, November 25, 2010

It's curious, Michael, that while the dispensaries are paying sales tax there are reservations about taxing them in other ways. Might that be a double standard? Also, an appeals court case ruling in Long Beach on Wednesday is threatening to throw a smoking pipe into the whole controversy surrounding medical marijuana dispensaries across California. The 2nd District Court of Appeals ordered an L.A. County Superior Court judge to reexamine his Nov. 2 decision upholding a new medical marijuana ordinance in Long Beach. The issue the lower court has been asked to reexamine cuts deeper into the whole MMD mess than anything I'm aware of: Do permits for medical marijuana collectives violate federal law, which, of course, has long declared marijuana illegal. And the plaintiffs happen to be two medical marijuana patients. We are living in interesting times.

Michael Larsen

2:07 pm on Thursday, November 25, 2010

The real question is are they paying sales tax? It seems to me that the only governmental agency that sees through the "donation" ruse is the State Board of Equalization. Others agencies, local and state, seem to be constrained by the law. Maybe we should have the B.O.E. write the local ordinances too since they seem to be the only official entity that sees mmj for what it is.
Personally, I'd like to see all mmj taxed the same as cigarettes.

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Terry

9:58 am on Tuesday, December 21, 2010

I don't know how the city plans to tax a produc t that is deemed illegal by the Federal Government. If the city council had kept their nose out of the situation it might have worked out on its own due to supply and demand. The dispenseries need better enforcement of who they are selling to. And their should be tighter investigation and enforcement of the doctors handing out the perscriptions for Medical weed.

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