65B - BALLOT INITIATIVE MEDICAL MARIJUANA COLLECTIVES

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Medical Marijuana Ballot Initiative June 3, 2014 Page 3 The Bill proposes to establish an improved regulatory structure to ensure that the CUA works as originally envisioned to assist patients with legitimate medical needs, in a manner that works for law enforcement, city and county governments, local community organizations, and medical professionals. The five essential principles of the bill are: 1) Protect local control by precluding an operator from obtaining a state license unless the operator has first secured all necessary local permits from a particular jurisdiction; 2) Uphold local governments' ability to ban collectives and all related facilities; 3) Impose tighter regulations on doctors who issue medical marijuana recommendations, including new training and record keeping requirements as well as fines, and a strict regimen for recommendations to minors; 4) Impose uniform quality assurance standards as well as health and safety standards to be administered by counties with oversight by the Department of Public Health; 5) Require a series of detailed security measures to prevent diversion and recreational use at all medical cannabis facilities. Current Citv Regulation and Enforcement Currently the City of Santa prohibits the establishment of medical marijuana collectives citywide under Article XIII of Chapter 18 of the Santa Ana Municipal Code. This section was added in 2007 following a two year moratorium on medical marijuana collectives. Since the City's ban on the establishment of medical marijuana collectives in 2007, the Police Department, Community Preservation Division and City Attorney's Office have continued to experience challenges trying to close illegal collectives in the City. As of May 1, 2014, there were a confirmed 50 existing illegal medical marijuana collectives in the City. This number is up from a low of 16 in early 2013, but down from the high of 68 in 2012. The City has successfully closed 177 collectives and fined illegal collectives for more than $138,000 since enforcement began in 2010. While these and other joint enforcement efforts with the Drug Enforcement Administration (DEA) have proven effective, the transitory nature of these businesses typically result in one closing down and one or more appearing in its place. It is important to note that while the Santa Ana Municipal Code currently prohibits medical marijuana collectives, it specifically precludes State - licensed: clinics, health care facilities, residential care facilities for persons with chronic life- threatening illnesses, residential care facilities for the elderly and residential hospice or home health agencies from these regulations. These licensed medical establishments are permitted to prescribe medical marijuana to its patients under the CUA and MMPA while remaining in compliance with the Santa Ana Municipal Code. L• MW