Green Paper Facts And Findings

WEST LOS ANGELES NEIGHBORHOOD COUNCIL (WLANC)

Green Paper A comprehensive review of the pending medical marijuana regulations for Los Angeles City from a West LA perspective Nathan Donahoe, Chair of the Medical Marijuana Committee, under the PLUM committee under Chair Tim Dagodag and President Jay Handal 10/6/2009

WLANC would like to thank the following for their help and inspiration in the creation of this paper: Jay Handal, Tim Dagodag, the entire WLANC board, the Alliance of Community Organizations and Neighborhood Activists, WLAPD Captain Evangelyn Nathan, Lt Mark Garza, CPCA, Councilman Bill Rosendahl, Peter Tejera, Jennifer Palais, Don Duncan and Americans for Safe Access and Fix Los Angeles. WLANC affirms all links, documents; pictures contained in this report are the properties of their respective owners and are provided for informational and educational purposes only. Electronic version of Green Paper can be downloaded at http://www.pdfcoke.com/doc/21801722/wlancgreenpaperfactsandfindings References used in creation of this report can be found at

2 http://www.pdfcoke.com/WLANC. This document has been edited to best of our ability and minor errors may exist. Please email any corrections and comments to [email protected]

Table of Contents Table of Contents.....................................................................................................................2 Definitions................................................................................................................................3 Brief History.............................................................................................................................5 West LA Perspective................................................................................................................6 Option 1....................................................................................................................................7 WLANC Medical Marijuana Committee Recommendations for Future Actions..................9 Regulations Comparison Chart..............................................................................................10 Regulations ................................................................................................................................................11 Adverse Secondary Effects of Marijuana Dispensaries and Similarly Operating Cooperatives...........................................................................................................................32 References..............................................................................................................................44 Behind the Scenes of a West Los Angeles Medical Marijuana Dispensary.........................45 Herbalcure Exhibits................................................................................................................47

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Definitions Medical Marijuana Collective/Co-op/Dispensary: Shall be referred to as MMC, MMCC, dispensary, etc.

Executive Summary Los Angeles City is in the middle of a health crisis. Seriously ill Angelenos are being provided unregulated and potentially toxic medical cannabis, from medical marijuana collectives (MMC’s) with minimal oversight from the City, operated by individuals with little professional experience in health care who likely have connections to illegal activity. Not only does this extreme lack of regulation impair the public health, but it also allows profiteers to take advantage of the sick who are most in need of effective medicine. Additionally, according to a wide range of experts and white papers, these issues correlate with other adverse secondary effects. This is an extremely critical time in the medical cannabis industry. With outdoor harvest season beginning in October, historically thousands of pounds of unregulated cannabis will be flooding the streets of Los Angeles City. This is compounded by other variables: As the “Green Rush” gains momentum and the economy suffers, more Angelenos

4 are seeking profit in the medical marijuana industry. Though most of them do not comply with Trutanich’s and Prop 215 guidelines, many of them erroneously believe that they are “legal” and are not properly educating themselves on legal and medical issues. 1 This lack of responsibility will likely cause problems for themselves and their communities. Medical marijuana is a commodity and it is currently a buyer’s market. There is too much medicine, grown by too many cultivators, with too little experience and not enough Angelenos to use it. Street and collective prices are reaching record lows which will lead to more competitive bids, “fronting” and increased incidences of black marketing due to inability of MMC’s to intake all of the medicine. Crime and robberies related to medical marijuana are also on the increase and are expected to continue, especially in the vicinities of MMC’s where criminals watch and wait for cultivators and “vendors” leaving MMC’s with backpacks filled with cannabis or simply rob the locations2. City Attorney Trutanich, is headlining a class, presented by the California Narcotics Officers Association (CNOA), The Eradication of Medical Marijuana Dispensaries in the City of Los Angeles and Los Angeles County.3 Although, Trutanich is not fully opposed to medical cannabis and is differentiating between collectives who cultivate versus collectives that dispense, this class is increasing fear and paranoia in the medical cannabis patient community and if successful will lower prices even further as MMC’s are shut down as cultivators compete for remaining MMC’s. More science and public support is coming out in favor of medical cannabis. Advocacy groups and patients are used to obtaining their medicine from storefront dispensaries and are not likely to give it up without serious legal action.4 For these reasons and many others, the WLANC Medical Marijuana Committee recommends these guidelines for regulating MMC’s based on existing ordinances from other cities and counties. WLANC recommends to City Attorney and City Council to not stop at just regulating MMC’s but to create ordinances that will regulate all aspects of the industry.

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http://money.cnn.com/2009/09/11/magazines/fortune/medical_marijuana_legalizing.fortun e/index.htm 2 http://www.dailynews.com/news/ci_13362515 3 The Eradication of Medical Marijuana Dispensaries in the City of Los Angeles and Los Angeles County 4

http://www.msnbc.msn.com/id/31375064/ns/health-addictions/

5 Brief History In 1996 California voters passed Prop 2155, the Compassionate Use Act of 1996, which became Health & Safety Code 11362.5 which states in part: … (A) To ensure that seriously ill Californians have the right to obtain and use marijuana for medical purposes where that medical use is deemed appropriate and has been recommended by a physician who has determined that the person's health would benefit from the use of marijuana in the treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which marijuana provides relief. (B) To ensure that patients and their primary caregivers who obtain and use marijuana for medical purposes upon the recommendation of a physician are not subject to criminal prosecution or sanction. This was supplemented by the California Senate Bill 420 (SB420)6 which clarified the scope and application of Proposition 215 by: -Establishing guidelines regarding how much marijuana patients may grow and possess, -Instructing counties to implement a Voluntary State ID Card System, -Recognizing the right of patients and caregivers to associate collectively or cooperatively to cultivate medical cannabis, Then August 2008, Attorney General Edmund Brown guidelines issued guidelines: …to (1) ensure that marijuana grown for medical purposes remains secure and does not find its way to non-patients or illicit markets, (2) help law enforcement agencies perform their duties effectively and in accordance with California law, and (3) help patients and primary caregivers understand how they may cultivate, transport, possess, and use medical marijuana under California law.7 Then the City of Los Angeles Medical Marijuana Interim Control Ordinance states in part: … no new dispensaries are allowed to open in the City, and only previously existing dispensaries are allowed to operate. The ICO is intended to control the proliferation of dispensaries while the City develops permanent regulations for medical marijuana uses. The ICO had a clause called a hardship exemption: 5

Prop 215 SB420 7 AG guidelines 6

6 The purpose of hardship exemptions is to allow exceptions from the ICO “in cases of hardship duly established to the satisfaction of the City Council.” As of June 24, 2009, hardship exemption applications are no longer being accepted, per Ordinance #180749. Hardship exemption requests that have already been filed prior to 06/24/09 can be approved, denied, or not acted upon by the City Council. If the City Council decides to consider the request, there will be a public hearing on the matter. This exemption was meant to help MMC’s who were forced to relocate after the DEA sent threatening letters to their landlords. However, the term "hardship" was never legally defined, which left it open to interpretation. Lawyers specializing in medical marijuana seized on this loophole and began advertising on the internet where through PayPal: “... you can initiate your nonprofit corporation and get your collective started in less than 5 minutes...and up and running within 2 weeks... The charge is $3777 and in about 14 days your collective will be signing up patients, growing, obtaining and possessing medicine for them, getting a tax payer's ID, a seller’s permit and such licenses and registrations as may be required/available in your town depending on your intended use: whether Growing, Delivering, and Distributing Cannabis among your patient members."8 "Green Rush" entrepreneurs began opening up MMC’s while their applications were pending even though according to the conditions of the moratorium, "the mere filing of a request for a hardship exemption does not authorize the operation of a dispensary that had not registered with the City Clerk by November 13, 2007."9 The City Council and Planning Land Use Management Committee were not reviewing these applications and the word spread. By June 24, 2009 when the city removed the hardship exemption, over 800 dispensaries opened and were operating largely without the supervision of Department of Building and Safety (DBS), LAPD or any kind of regulatory body. Now it is October 2009 which will potentially be the largest harvest season on record. Yet with City Attorney Trutanich’s new stance on the “Eradication of Medical Marijuana Dispensaries,” as well as other variables, is likely to be the most volatile one as well. West LA Perspective In the West Los Angeles area, there have been few robberies linked to MMC’s but some high profile investigations by the local, state and federal government.10 According to Lt

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www.420lawoffice.com ICO FAQ 10 http://latimesblogs.latimes.com/lanow/2009/08/dea-fbi-irs-raids-two-westside-potdispensaries-shoots-a-dog.html 9

7 Garza, head of narcotics for WLAPD,11 unlike MMC’s in the Valley,12 “After investigating all medical marijuana dispensaries in our district, we have found there have been no significant increase in Part 1 or Part 2 crimes that can be specifically attributed to medical marijuana collectives. Most MMC's are cash businesses and like any business that carries a large amount of cash onsite, they attract thieves. Similar incidents have occurred with food trucks who accept only cash.”13 Some patients who join these collectives are qualified and passionate yet ultimately are uneducated. As in the case of 18-year-old West LA medical cannabis patient, Kelly Howardson. At first glance, due to his age and manner of dress many people would assume he is a recreational user who uses cannabis to "get high" even though he was in a serious car crash, has been diagnosed with pre-glaucoma, anxiety, insomnia and medicates responsibly under supervision of his parents. When the WLANC met him, Kelly was starting his own unofficial medicated bakery company called "Blissed Out Bakery"14 and was interested in "vending" his edibles to hardship and pre-ICO MMC’s in his area. The WLANC Medical Marijuana Committee explained to him the legal risk of running such an operation as well the potential for financial loss and physical danger to himself by associating with people with likely ties with illegal activity. Shocked at the state of the industry and his own naivety, Kelly is currently creating a business plan on how to legally and safely make edibles to be presented to the WLANC before he decides to bake again. Like many uneducated patients, though his intentions were pure, his inexperience would eventually lead to increased risk for himself and patients who used his products. Another West LA patient, suffering from spinal surgery and implants, is afraid to tell his daughter he medicates because at school she is taught that marijuana is a “drug” and doesn’t want to confuse her.15 Option 1 The most obvious and quickest way to expedite medical marijuana regulation is to absorb it into existing pharmaceutical and medical infrastructure. In the words of outgoing LAPD Chief Bratton:

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http://www.lapdonline.org/west_la_community_police_station http://www.nbclosangeles.com/news/local-beat/Medical-Marijuana-Robberies58539277.html 13 http://latimesblogs.latimes.com/lanow/2009/08/fifth-suspect-in-taco-truck-robberiessurrenders.html 12

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Patient testimonial

8 While I fully support [marijuana's] use for medicinal purposes, why don't we regulate it like we do Lipitor or Viagra? You can't buy those two without getting it through a legitimate pharmacy. If this drug is so important and so helpful, why is it not regulated like every other drug? They pass a law, then they have no regulations as to how to enforce the darn thing and, as a result, we have hundreds of these locations selling drugs to every Tom, Dick and Harry.16 An ideal situation would be as follows: John Smith is a medical marijuana patient who lives in West Los Angeles. Several years ago John was diagnosed with cancer by his medical doctor, Dr. Reynolds who prescribes chemotherapy, radiation and other conventional treatments. After several months of these treatments, John is improving but begins to notice severe side effects from the cancer as well as his treatments. These include loss of appetite, nausea, fatigue, depression and body pain. Typically, Dr. Reynolds would prescribe multiple pharmaceutical drugs to specifically deal with each side effect. However, there is a new medicine which has just been approved by the FDA which in clinical trials at UCLA has shown a 74% reduction in treating the side effects resulting from cancer and cancer treatment. It is New Cannabis Strain 1, a strain of marijuana specifically bred to assist these side effects. Before becoming approved by the FDA, New Cannabis Strain 1 had to go through the same rigorous testing and clinical trials that the rest of John’s pharmaceutical drugs had to go through. John has never used medical marijuana before, Dr. Reynolds educates him on the benefits and risks and John decides it is worth a try. Reynolds writes John two prescriptions for New Cannabis Strain 1. He explains to John that the safest and healthiest way to “smoke” marijuana is to use a vaporizer, a marijuana inhalation device which blows hot air around the medicine, “vaporizing” the active medicinal ingredients and leaving behind cellulose, ash, and other toxic, carcinogenic ingredients. Since, John has cancer any extra carcinogens from the igniting the medicine, as well as butane from lighters could seriously affect his lungs and his health. Dr. Reynolds second prescription is for a USDA and FDA certified medicated “edible” or cookie with New Cannabis Strain 1 in it. This will be even more beneficial for John because he won’t have to buy any expensive equipment, put any smoke or vapor in his lungs and it will be more discrete for when he needs to medicate in public situations and around his children. For the 1st prescription, the doctor recommends .5 grams of New Cannabis Strain 1, vaporized twice a day, for two weeks or until symptoms ease. For the 2nd prescription, he recommends a 1 oz cookie with 1 gram of New Cannabis Strain 1 “baked” into it, once a day. He encourages John to experiment and find which method of ingestion works best for him. Dr. Reynolds gives John his prescriptions for New Cannabis Strain 1 and he heads to his local CVS to get it filled. John reaches the pharmacy counter, gives his New Cannabis Strain 1 prescriptions as well as his prescriptions for his conventional treatment drugs to his pharmacist. John feels safe in his pharmacist’s hands because like any other pharmacy, he has had background checks through the Department of Justice. Also, in order to dispense medical marijuana, his pharmacist has taken and passed the state regulated medical marijuana pharmacist exam to ensure competency so patients like John get balanced 16

http://laist.com/2009/04/01/lapd_chief_bratton_wants_marijuana.php

9 accurate information. As the pharmacist is processing his order, John notices signs explaining how the diversion of medically prescribed marijuana is a crime the same as the diversion of any pharmaceutical drug. There are brochures providing education on the benefits of marijuana, symptoms of abuse and addiction, speaking with your children and a new FDA approved cannabis lozenge that can be taken sublingually, “A 2 year long Harvard medical study, in comparison with standard marijuana ingestion devices (joints, pipes, bongs, vaporizers), showed this extract to have a 57% increased success rate in treating side effects of standard HIV treatment with terminally ill AIDS patients and showed an unexpected 23% less chance of eye redness.” This will enable John to medicate discreetly, safely and doesn’t have side effects such as coughing and an odor which will be offensive to some people. The pharmacist brings John his New Cannabis Strain 1 “flowers” and his standard pharmaceutical drugs in standard pill bottles. The edibles are in non-clear plastic bags with a big green cross labeled with “FOR MEDICAL USE ONLY. STORE IN A SAFE PLACE OUT OF REACH OF CHILDREN.” The pharmacist explains to John how edibles can be easily mistaken by children as food and how important it is to store them properly. John looks at the ingredient labels and notices that the edible contains “organic wheat flour”. Diagnosed with Celiac’s disease (intolerance to gluten from wheat and other grain products), John gets his pharmacist to provide him with a gluten-free edible. His pharmacist also shows him where the government licensed and approved marijuana medical devices are kept, including: vaporizers, grinders, rollers, papers, etc. John decides to purchase a vaporizer. His insurance covers most of the vaporizer, his medicine co-pay and he uses his credit card to complete the transaction. All of his medicine, marijuana and pharmaceutical pills are put in the same white paper bag, which he places in the trunk of his car and drives home where he medicates before he goes to sleep.

WLANC Medical Marijuana Committee Recommendations for Future Actions The WLANC Medical Marijuana Committee recommends that sub-committees be formed, feasibility studies and cost analyses be prepared to research problems and solutions affecting ALL aspects of the medical marijuana industry including but not limited to: Edibles Indoor grow operations (IGO’s), adverse secondary effects and solutions How To Be A Responsible Medical Cannabis Patient informational pamphlet that will provide patients with legitimate information on cannabis health, safety and aid patients in making responsible choices in medicine, cultivators and providers. Recommendations for creation of a consistent and law enforcement friendly doctor recommendation format

10 Proximity regulations and possible restrictiveness Possible removal of restrictions from California Medical Association (CMA) on physicians from educating patients on where to find contaminant-free sources of medical cannabis

Regulations Comparison Chart .

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Regulations These regulations have been compiled from researching ordinances and regulations of other California Cities and Counties. Herbalcure, an MMC located in the WLANC boundaries has offered to disclose its operational standards and experiences in the medical marijuana industry and how they relate to proposed ordinances. A note on Proximity regulations: The WLANC recommends having a feasibility study done in order to see if proximity regulations are too restrictive and to eventually remove them if the true intent of a regulated MMC is to better the health and safety of the community and reduce adverse secondary effects.

1: Proximity, schools WLANC: Unless the application review panel in their discretion determines that the location will not impact the peace and order and welfare of the area, no collective shall be located 1000ft from schools, public park, libraries, public beach access points, substance abuse facilities,

12 child-oriented establishments, or establishments that (i) advertise in a manner that identifies the establishment as catering to or providing services primarily intended for minors, or (ii) if the individuals who regularly patronize, congregate or assemble at the establishment are primarily minors. Analysis: This ordinance is a short term solution that protects community and minors from adverse secondary effects as the former illicit industry transitions into a regulated industry. However, in the mid to long term, this regulation should be discarded because with mandatory security personnel, electronic surveillance, extra vigilance from neighbors and law enforcement a regulated and community supported MMC should statistically reduce the adverse effects of part one and two crimes related to marijuana.17 Herbalcure: UPDATED 3/5/12: In September 2012 AB 2650 was passed prohibiting storefronts collectives within 600 feet of K-12 schools. Daycares are not included. We have always fully complied with that law, even before it was passed. We are located 500ft from a daycare. When we first opened we knew our neighbors would only accept us if we created win-win situations for the community. We beautified our property and had our state licensed security guard remove all vagrants, nuisances and additionally added a patrol within a one block radius.18 When we visited the daycare in September to add their opinion to this report, they told us that they were aware of our location but were unaware we were a medical cannabis collective. We feel this means we are doing a good job.

2: Proximity, other MMC’s WLANC: No collective shall be located within a 1,000-foot radius of a collective(s) or medical marijuana dispensary. Analysis: This ordinance is a short term solution that prevents clustering and "medical marijuana districts" that could potentially have adverse secondary impacts on the community. However, in the mid to long term this ordinance should be dropped and left up to districts and neighborhood councils to decide for themselves. Some cities, such as Oakland are finding their communities are benefiting tremendously from tax dollars from regulated collectives and dispensaries. Los Angeles districts should have the option to benefit as 17 18

ASA White Paper Neighboring business letters

13 well.19 Herbalcure: Our closest pre-ICO MMC is over 2800 ft away and opened after us.

3: Onsite growing restriction WLANC: At any given time, no MMC may grow more marijuana or marijuana plants than would reasonably meet the immediate needs of its registered members as defined under Health and Safety Codes 11362.7-11362.83 . Herbalcure: UPDATED 3/5/12: As of January 2010, Herbalcure grows all of its medicine on-site and maintains a plant count consistent with its members needs. We no longer provide clones/cuttings. We sometimes provide a supply of clones/cuttings cultivated by patients for other members to grow their own medicine. These plants are not “flowering” and have nearly no medicinal effect or odor.

4: Onsite, consumption/sale non-medicine or alcohol restriction WLANC: No collective shall cause or permit the establishment or maintenance of the sale or dispensing of alcoholic beverages for the consumption on the property or off-site of the property. Analysis: However, this regulation needs to clarify the difference between alcohol served for recreational use and cannabis extracted with alcohol stored in small eyedropper bottles. Many patients choose not to smoke, or are medically unable and can use cannabis extract orally as well as topically. Herbalcure: We do not serve alcohol, will never serve alcohol and actively screen patients for inebriation. 19

http://edition.cnn.com/2009/POLITICS/07/22/california.pot.tax/

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5: Signage, interior warnings WLANC: A sign shall be posted in a conspicuous location inside the structure on the property advising: “The diversion of marijuana for non-medical purposes is a violation of State law. The use of marijuana may impair a person’ ability to drive a motor vehicle or operate heavy machinery. Loitering a the location of a medical marijuana collective for an illegal purpose is prohibited by California Penal Code Section 647(h)”; Analysis: Since mainstream legal use of medical cannabis is fairly recent, interior warning signs reinforce important medical and legal info that patients may not be aware of. Legally, MMC’s are private membership organizations, structured as collectives and co-ops, which are not open to the public i.e. they can refuse membership and are responsible for ensuring that they only accept members who follow collective rules and state and local laws. Uneducated patients or recreational users are burdensome and costly to their community, law enforcement and present potential legal problems to their MMCs. Law enforcement should have the ability to record statistics of adverse secondary effects caused by patients of particular collectives and be able to fine any collective that consistently accepts said patients or shows a preponderance for adverse secondary effects. Herbalcure: We have signs posted: “The diversion of marijuana for non-medical purposes is a violation of State law. The use of marijuana may impair a person’ ability to drive a motor vehicle or operate heavy machinery. Loitering a the location of a medical marijuana collective for an illegal purpose is prohibited by California Penal Code Section 647(h)”;

6: Litter and graffiti Removal WLANC: Litter removal shall occur twice per day, graffiti removal within 24 hours, on and in front of the premise, and if necessary, on public sidewalks within 100ft of the premise. Herbalcure: We currently remove all trash and graffiti from our property. When we first got our location, we removed over 4, 40 yard bins filled with trash, broken furniture etc., cleaned up all graffiti, removed vagrants and drug dealers. Some of them, according to our West

15 LAPD watch commander at the time, were heroin and methamphetamine dealers.

7: Sale restriction, daily limit WLANC: The dispensary shall not dispense more than 2 oz. of marijuana per patient per day unless specifically recommended by their physician. Analysis: Daily limits on sales discourage diversion and resale. However, its effectiveness is reduced without restrictions on how many MMC’s a patient can join because theoretically, a patient could obtain an infinite amount of medicine by simply joining every MMC in Los Angeles. This can be compounded by lack of advertising restrictions that allow MMC’s to offer excessive discounts and specials. Herbalcure: Our patient daily limit is 2 oz unless higher quantities are specifically authorized by their doctor on their original recommendation. We never, ever engage in “back door deals”. We operate with an advanced point of sale system (POS) that maintains a database and tracks all patient donations to ensure that amounts are consistent with patient needs and are not being black marketed. We have high donation rates to discourage resale. UPDATED 3/5/12: Although, we continue to maintain high donation rates we have a wide range of donation rates for all our patients.

8: Zoning restrictions, commercial and industrial only WLANC: Dispensaries should be allowed to operate only in commercial or industrial zones. No dispensary should be allowed to operate at a residential address or in a residential zone. Herbalcure: We operate in a standard commercial/industrial zone.

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9: No doctor's recommending onsite WLANC: No doctor’s may recommend medical marijuana on-site. Please see SECONDARY ADVERSE IMPACTS IN THE COMMUNITY AT LARGE UNJUSTIFIED AND FICTITIOUS PHYSICIAN RECOMMENDATIONS Herbalcure: We do not have any doctor onsite.

10: Age restriction WLANC: No persons under the age of eighteen should be allowed on the property unless that minor is a qualified patient or person with an identification card or verifiable doctors recommendation, accompanied by his or her licensed attending physician, parent or documented legal guardian. Analysis: The phrase, "... accompanied by his or her licensed attending physician" potentially conflicts with the California Medical Association's Medical Marijuana Policy.20 It is important to note that comparatively, conventional pharmacies in Los Angeles may not necessarily have an age limit for pharmaceutical patients with a valid doctor’s prescription. From WLANC Medical Marijuana Committee research, children as young as 13 are allowed to pay for prescriptions, even without a doctors prescription. Herbalcure: Currently, no new patient under the age of 21 years is allowed on our premises at any time, unless the individual is a Qualified Patient or ID Card holder and accompanied by his/her licensed attending physician, parent or documented legal guardian.

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27. What if a patient asks me how he or she can obtain cannabis? Physicians should not provide a patient with the name and address of a cannabis club or other type of cannabis distributor. While physicians may be sympathetic to a patient who cannot otherwise obtain medicinal cannabis, physicians may risk serious sanctions if they direct a patient to a specific cannabis source. Physicians should inform a patient that the physician cannot affirmatively assist the patient in obtaining cannabis.

17 11: Visibility restrictions i.e. have windows WLANC: Windows and roof hatches should be secured with bars on the windows so as to prevent unauthorized entry, and be equipped with latches that may be released quickly from the inside to allow exit in the event of emergency. Herbalcure: When we first opened, patient and volunteer safety was our first priority so we chose not to install windows. However, we can install windows if necessary.

12: Onsite sale of other products restriction i.e. inhalation devices WLANC: Dispensaries may provide specific devices, contrivances, instruments, or paraphernalia necessary for inhaling medical marijuana, including, but not limited to, rolling papers and related tools, pipes, water pipes, and vaporizers. The above may only be provided to qualified patients or primary caregivers and only in accordance with California Health and Safety Code section 11364.5. Analysis: Bongs, pipes, vaporizers and officially known as “inhalation devices” are medical devices used by medical marijuana patients. These products are usually sold at “head shops” and are advertised as “for tobacco use only,” even though it is widely known that they are purchased for cannabis use. Allowing collectives to supply their patients with these medical tools will ensure patients receive proper education, limits potential for recreational use and will significantly reduce the amount of "head shops" in the city. Herbalcure: We currently offer inhalation devices as a service to our patients. Since we maintain high donation rates to deter resale, we discount the inhalation devices as part of our members’ benefits package. Some of the devices are made in Los Angeles and support the local economy. Our patients tell us that they appreciate the quality of products and education on proper dosage, usage. We feel it is much safer than sending our patients to a “head shop” where they may not get appropriate instruction.

13: Signage, exterior, site addressing only

18 WLANC: No restriction, again should promote medical, not recreational or illegal use. Herbalcure: UPDATED 3/5/12: As of July 2010 we no longer display a photo of our interior, only a photo of a chandelier. We maintain simple exterior site addressing of our name, logo and photo of the interior.21

14: Advertising restrictions WLANC: All print and electronic advertisements for medical cannabis dispensaries, including but not limited to flyers, general advertising signs, and newspaper and magazine advertisements, shall include the following language: "Only individuals with legally recognized Medical Marijuana Identification Cards or a verifiable, written recommendation from a physician for medical cannabis may obtain cannabis from medical cannabis dispensaries." The required text shall be a minimum of two inches in height except in the case of general advertising signs where it shall be a minimum of six inches in height. Oral advertisements for medical cannabis dispensaries, including but not limited to radio and television advertisements shall include the same language. Analysis: All advertising should be consistent with promotion of medical, not recreational/illegal use. Just as a conventional pharmacy is not allowed to promote recreational use of pharmaceuticals, neither should an MMC. Currently, many MMC’s who claim non-profit status are taking a more retail approach to dispensing by advertising on TV, magazines and the internet, offering “Free Joints”, “Free Grams for First Time Patients”, “2 for 1 Specials” etc.22 In order to stay competitive, other MMC’s then offer similar specials to compete which naturally drives prices lower and increases potential of black marketing. If a patient so desired they would be able to join every single MMC in Los Angeles and by relying on discounts, specials and freebies could actually live off of reselling it. MMC’s should attract new members by bettering their local patients and having community relations with neighbors and law enforcement, not with excessive and tasteless advertising tactics. Herbalcure: UPDATED 3/5/12: As of December 2009 we have discontinued all advertising except for 21 22

Herbalcure entrance, front, front sign and sign photos http://www.virtualonlineeditions.com/publication/?i=23617

19 our website. We only advertise in the Los Angeles Journal for Education on Medical Marijuana (LAJEMM)23, an industry magazine with a simple full page ad and on an industry website with a simple banner. We do not advertise our menu, offer “Free Grams/Gifts/Bongs,” highly discourage recreational use and at one time removed all advertising for a year, closed membership and relied only on referrals from existing patients. Our volunteers donate their time by creating handmade informational brochures that are given to their patient/friends.24 Word of mouth, existing patient referrals and getting to know our neighbors helps us be discrete and works better than conventional advertising. In the near future, we plan on not accepting any new patients who live outside of our district and will only allow patients in our district to join.

15: Background checks, no felony WLANC: MMC staff shall submit to and pass a background investigation by the Los Angeles Police Department or DOJ. Analysis: Cannabis and even medical cannabis has until recently been an illegal, illicit business run by criminals as defined under relative state and federal laws. There exists a high probability that those “criminals,” some who are qualified patients and some who are using medical cannabis as a smoke screen for illegal activities, seek and will continue to seek employment in the legal medical marijuana industry and should be screened. Those with a record of ONLY cannabis-related offenses, that would normally make them ineligible for employment, and whose record is absent of any other offenses that would deny them employment are entitled to a special review. A patients’ legitimate need for medical cannabis, exists and has existed even when applicable laws have declared it illegal. This puts patients in conflict of interest where they would be endangering their own health by following marijuana laws. Since there is no government recognized type of certification, licensing or education that demonstrates proficiency in the medical marijuana industry, potentially these “criminals” are valuable experts in their respective fields of the industry who have a legitimate claim to be called “professionals.” As well, more scientific evidence is mounting in favor of cannabis having medical value, potentially proving wrong the federal governments traditional stance, “…has no currently accepted medical use in treatment in the United States” which could potentially affect inmates imprisoned for cannabis related crimes. Herbalcure: As a collective, we had all known each other through business and personal relationships 23 24

Herbalcure LAJEMM photo Herbalcure Information Packet

20 for years and felt we had no need for background checks. Any new volunteer who joins us receives a background check

16: Business structure WLANC: MMC shall mean a cooperative or collective of three or more Qualified Patients or Primary Caregivers that facilitates the lawful cultivation and distribution of Medical Marijuana and operates not for profit, consistent with California Health & Safety Code Sections11362.5 et seq., with the Guidelines for the Security and Non-diversion of Marijuana Grown for Medical Use issued by the California Attorney General in August 2008, and with this Article. A cooperative must be organized and registered as a Consumer Cooperative Corporation under the California Corporations Code, Sections 12300, et Rev. 7/22/09 2seq., or a Nonprofit Cooperative Association under the California Food and Agricultural Code, Sections 54002, et seq. A collective may be organized as a corporation, partnership or other legal entity under California state law but must be jointly owned and operated by its members.” Analysis: However, as regulations are enacted and the industry develops, MMC’s should eventually have the option of operating as for profit businesses and be regulated as pharmaceutical or herbal medicine companies. Herbalcure: We currently operate as a non-profit California mutual beneficial corporation.

17: Grandfather illegal hardship MMCs WLANC: Any marijuana cooperative or collective, including any "Medical Marijuana Dispensary," as that term is defined in Interim Control Ordinance No.179,027, not in compliance with the requirements of this Article shall have one year from the operative date of this Article to obtain an MMC Permit, provided the operation, cooperative, collective or Medical Marijuana Dispensary was registered with the Los Angeles City Clerk's office in accordance with the Interim Control Ordinance No. 179,027 before November 12,2007, proving it was operating prior to September 14, 2007. In evaluating applications for an

21 MMC Permit, cooperatives or collectives who qualify for the one year extension period under this Section (qualified cooperatives/collectives) shall have preference over nonqualified cooperatives/collectives with regards to location restrictions designated by applicable Planning and Zoning Codes for the City of Los Angeles, and no application by a non-qualified MMC shall be approved during the one year extension period if the proposed location is in conflict with the location of an existing qualified MMC. Hardship applicants who filed for hardship exemptions yet were open and operating illegally during the moratorium should be banned from opening an MMC in the City of LA. However, preICO collectives who had to relocate for valid hardship reasons i.e. DEA landlord threats shall be exempt from this requirement. NOTE UPDATED 11/6/09 Due to recent superior court ruling declaring the moratorium invalid, this position may change25. Analysis: While many of these hardship MMC’s claim that they are helping patients, by prolonging the implementation of effective ordinances, they are in actuality hurting them. Also, they are currently using money they earned from illegally operating, to sue the City of Los Angeles and cost Angelenos more money26. There are nearly 15 hardship MMC’s operating in the WLANC boundaries, about 60 in District 11. We have thoroughly researched most hardship applications from the City Clerk’s website and many of them claim their exemption to be “...just became aware27” or are one of the hundreds who are represented by lawyers and have the same exemption pasted word for word.28 We do not feel these qualify as valid and since there exists ample supply of medicine to meet the needs of patients during this period of transition, they should be shut down immediately. According to City of Los Angeles Medical Marijuana Interim Control Ordinance (ICO) Frequently Asked Questions UPDATED: July 20, 2009: “The ICO is intended to control the proliferation of dispensaries while the City develops permanent regulations for medical marijuana uses.”29 We interpret this to mean the intention of the ICO is to slow down the “Green Rush” so effective permanent regulations can be developed that will make life easier for patients, law enforcement and the community. Also in the same document: “Can I continue to operate my dispensary while I am waiting for the City Council to act on my request for a hardship exemption? No, the mere filing of a request for a hardship exemption does not authorize the operation of a dispensary that had not registered with the City Clerk by November 13, 2007. 25

http://www.latimes.com/news/local/la-me-pot-moratorium202009oct20,0,2288177.story?track=rss 26 http://www.latimes.com/news/local/la-me-pot-suit23-2009sep23,0,2839881.story 27 Unaware hardship 28 Lawyer hardship 29 ICO FAQ

22 We interpret this to mean that all hardship dispensaries that have filed but are open and operating are doing so illegally or at least against the intention of the ICO. With the health and well being of seriously ill Angelenos at stake, this type of behavior should not be rewarded. Herbalcure: Our fellow pre-Ico MMC’s who were forced to move because of DEA landlord threats, have a valid reason for hardship. However, according to the city, “… the mere filing of a request for a hardship exemption does not authorize the operation of a dispensary that had not registered with the City Clerk by November 13, 2007.” Our patients generally report poor experiences at these hardship collectives with quality of medicine, service and atmosphere. Herbalcure had to take defensive measures once neighboring hardship MMC’s began soliciting patients and neighbors by sending obvious adult entertainers and homeless to our property handing out flyers advertising their service. When our security removed and questioned them, they told us they were given free marijuana or money for every patient they brought in. We created a red flag list of hardship applicants to ban them from membership and helped create a map of all hardship dispensaries in District 11 that was provided to our patients, neighbors and law enforcement.30 We feel most of those locations are fly by night and are profiteering off of patients and a slow bureaucratic process. Qualified patients who are passionate about medical marijuana and want to open their own, should join with an existing pre-ICO collective, increasing quality instead of quantity, until the city begins accepting new applications again. Personally, we would love to work with more dedicated, experienced patients and legitimate operators who have goals of opening their own someday.

18: CUP (Conditional Use Permit) WLANC: Marijuana dispensaries should be required to go through a Conditional Use Permit (CUP) process. Each dispensary should be required to re-apply for a CUP every two years, so that the City and neighborhood can determine if it has created direct threats to public safety and health. The CUP process should pay for itself, with each CUP application requiring a set of fees that make it self-sustaining. UPDATE 11/9/09: According to Alan Bell Senior City Planner for the Department of City Planning, at the LANCC meeting, the CUP process may not be feasible. Other options include using a formula where the amount of MMC’s are determined by amount of patients per district.

Herbalcure: n/a

30

District 11 Hardship Map

23 19: Criminal Prosecution for illegally operation and operation in violation WLANC: Failure to shut down an illegal or unregulated marijuana dispensary should be considered a criminal misdemeanor subject to automatic criminal prosecution, not just a business violation. Any person who owns operates or works at an illegal or unregulated marijuana dispensary should be arrested and charged with a criminal misdemeanor. Herbalcure: Profiteers who use MMC’s as storefronts for illegal activity should be prosecuted to the fullest extent of the law. They endanger the health of our patients and the safety of our community.

20: Unrestricted access by law enforcement, "Hands Off Policy" removed WLANC: The Department of Building and Safety and the Police Department may enter and inspect the property of ever collective and the records maintained pursuant to Section 45.19.6.5 of this article between the hours of 10:00 a.m. and 8:00 p.m. or at any reasonable time to ensure compliance with the provisions of this article and both Departments, within their respective jurisdictions, are authorized to enforce the provisions of this article. It is unlawful for any owner, landlord, lessee, member or any other person having any responsibility over the operation of the collective to refuse to allow, impede obstruct or interfere with an inspection, review or copying records closed-circuit monitoring authorize and required under his article, including but not limited to the concealment, destruction and falsification of any records or monitoring. Herbalcure: Within the first year of opening we invited our neighborhood Watch Commander inside our collective and received praise for operation and how we cleaned up our neighborhood. We had other officers in as well. We have found our law enforcement to be allies and agree with Chief Bratton that the current policy is “Looney Tunes” and needs to be changed. We stress to our patients to realize that our local officers want to protect the rights of qualified patients, the health and safety of the community and are only concerned with black marketers and recreational users who use Prop 215 as a cover.

21:Certified Neighborhood Councils part of approval process/application review

24 WLANC: Certified Neighborhood Councils must be included in the CUP process for dispensaries. Neighborhood Councils are the voice of the people of Los Angeles. Each dispensary should have to make a presentation to its Neighborhood Council, which should then vote on whether to recommend its approval, or its re-approval, under the CUP process. We do not agree with patient advocates who see neighbors as “ignorant and power hungry.”31

Herbalcure: Although we don't think it should be required for neighborhood councils to be part of the approval process, the WLANC has been amazingly supportive and unbiased of Herbalcure. They have inspired us to create win-win situations with our community, join our chamber of commerce and be responsive to our neighbor and law enforcement concerns. Qualified patients and neighbors want the same thing: sensible regulations. Only good things can happen for legitimate MMC’s when their local neighborhood council actively participates in the approval process.

22: Security, (Store/ Area/ Both), electronic and personnel WLANC: The location shall be monitored at all times by web-based closed circuit television for security purposes. The camera and recording system must be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on the site. b) The location shall have a centrally-monitored alarm system. c) Windows and roof hatches shall be secured with bars on the windows so as to prevent unauthorized entry, and be equipped with latches that may be released quickly from the inside to allow exit in the event of emergency. d) Entrance to the dispensing area and any storage areas shall be locked at all times, and under the control of dispensary staff. e) Interior building lighting, exterior building lighting and parking area lighting must be in compliance with Los Angeles Municipal Code Sections 93.0104, 93.0107 and 93.0117 and must be of sufficient foot-candles and color rendition, so as to allow the ready identification of any individual committing crime on site at a distance no less than forty feet (a distance crime on site at a distance no less than forty feet (a distance that should allow a person reasonable reaction time upon recognition of a viable threat). The lighting shall also be shielded in a manner that prevents lighting from shining on neighboring residential uses. f) At least 1 State licensed security guard shall be on duty during all hours of operation. Proof of proper City and State licensing shall be presented for each guard. 31

Patient advocacy group email

25 Herbalcure: We have state licensed security guard who patrols a 1 block radius as well as volunteers who monitor patients inside. Our double doors are custom made out of heavy steel. Our property is monitored at all times by a web-based closed-circuit television. The camera and recording stem are of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or near the property.

23: Hours of operation WLANC: The MMC may only be open between the hours of 9:00 a.m. and 8:00 p.m. Herbalcure: We are open 10am-8pm Monday through Saturday, 12pm-7pm Sunday and have always been.

24: Onsite consumption WLANC: Medical marijuana may be consumed on-site only as follows: a. The smoking of medical marijuana shall be allowed provided that appropriate seating, restrooms, drinking water, ventilation, air purification system, and patient supervision are provided in a separate room or enclosure. Consumption is subject to a Los Angeles County Health department inspection and issuance of a permit. Analysis: This regulation potentially conflicts with Assembly Bill 13 – California Workplace Smoking Restrictions32 which states in part: General Provision "No employer shall knowingly or intentionally permit, and no 32

http://www.dir.ca.gov/dosh/dosh_publications/smoking.html

26 person shall engage in, the smoking of tobacco products in an enclosed space at a place of employment." This could be potentially nullified depending on whether “vapor” from vaporizers is legally classified as “smoke.” Herbalcure: UPDATED 3/5/12: As of the beginning of 2010 we have closed the patient medicating lounge to comply with the medical cannabis ordinance. We offer a safe access medicating lounge for our patients where they use our professional and sanitized doctor recommended vaporizers for a maximum of 20 minutes. By offering this service, we can offer assistance, monitor use and advise on dosage. We post signs, patients are reminded that, “The use of marijuana may impair a person’s ability to drive a motor vehicle or operate heavy machinery” and we ask they have someone drive them home. Our lounge was built by our professional patient electricians and contractors, is security monitored and properly ventilated. We offer this service to our patients because some face prejudice from family and fear their children might find out. Others are low income or are unable to medicate by customary means (joints, pipe, butane lighter) and are unable to afford vaporizers. If we didn’t offer this service, patients could medicate in nearby neighborhoods or in other more dangerous locations.

25: Doctor recommendation required WLANC: All MMC’s should require original doctor's recommendation from a physician in good standing, or a State ID Card. Herbalcure: We only accept an original doctor’s recommendation (no copies), official California ID (driver’s license) or passport with proof of residence (bank statement or utility bill). We call the doctors to verify and maintain a red flag list of doctors we do not accept and are not in good standing.

26: In-store cash amount WLANC:

27 MMC’s shall not store more than $200 in cash reserves overnight on the premises and shall make at least one daily bank drop that includes all cash collected on that business day. Herbalcure: We remove donations from premises at least once a day.

27: Training of dispensary staff by police or regulatory body WLANC: A regulatory body needs to be created to promote education and implement standardization in the industry. Every member of a collective who assists in the cultivation should be required to take a course mandated by Health and Safety demonstrating proficiency and capability with growing medical marijuana and related health, safety, fire codes. Analysis: A medical cannabis regulatory body’s mission statement could be similar to the Department of Alcoholic Beverage Control Licensee Education on Alcohol and Drugs (L.E.A.D):33 Weed's Mission The mission of the WEED Program is to provide high quality, effective and educationally sound training on medical marijuana responsibility and the law to California MMC’s, patients, caregivers and cultivators. The WEED Control expects and encourages licensees to act responsibly relative to their MMC license privileges. The WEED Program provides the licensee and applicant with practical information on dispensing and cultivating medical marijuana safely, responsibly, and legally, and preventing illicit drug activity at the licensed establishment. Herbalcure: We eagerly await regulation and standardization in our industry.

28: Edibles

33

http://www.abc.ca.gov/programs/lead.html

28 WLANC: 1. Medical marijuana may be provided by an MMC in an edible form, provided that the edibles are prepared in an L.A. County certified kitchen and meet all applicable USDA, FDA and L.A. County health requirements including all medical marijuana related permits. 2. A copy of the date and location of manufacture on a batch to batch basis shall be maintained on site for all edibles. 3. Any beverage or edible produced, provided, or sold at the facility which contains marijuana shall be so identified, as part of descript discrete packaging with a prominent and clearly legible warning advising that the product contains marijuana and that is to be consumed only with a physician’s recommendation. Labeling shall include ingredients and nutrition information as required by the Dietary Supplement Health and Education Act of 1994 (DSHEA). 4. Any marijuana or marijuana derivative i.e. hash, kief, butters, oils, trim, shake, buds etc. used in making edibles must have been extracted in a chemical free method (ice water, pressure or similar methods), absent of butane, wood alcohol, isopropyl alcohol, sulfuric acid and other isomer conversion methods. 5. Any marijuana or marijuana derivative contained in edible must have been grown at the MMC location or another location legally connected and registered with the City by members of the MMC. 6. MMCs shall be required to laboratory test monthly, samples of edibles for cannabinoid content, strength and possible contaminants including mold, bacteria, and pesticides. All lab results will be kept in a book at the MMC to be inspected randomly by Health and Safety. 7. A copy of the date and location of manufacture on a batch to batch basis shall be maintained on site for all edibles. 8. Health and Safety may randomly test edibles for unsafe levels of contaminents including: pesticides, fertilizers, chemicals used in extraction of cannabis, molds, mildews, etc. Analysis: Edibles are commonly cookies, cakes, etc. that are filled with marijuana concentrated in dairy butter, concentrates (hash), kief (residual THC from trimming), etc. and are provided for patients at nearly every MMC' in Los Angeles. Many patients, who require discretion, are unwilling or unable to medicate by conventional means (joints, pipes) use edibles as an alternative.34 However, currently there exists no regulatory body for marijuana filled foods, many edible makers are not professionals in the food service industries, do not use licensed commercial kitchens and it is mainly self-regulated. While we have no actual statistics, we have heard reports of patients, non-patients and the CDC of people getting sick from consuming edibles.35 Many seriously ill Angelenos are ingesting sub/no-quality and potentially toxic edibles unaware of this lack of regulation and are putting their health at risk. Ideally, an “edible-maker” and an MMC dispensing edibles would follow all existing 34 35

ASA edibles http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5834a2.htm

29 laws and health regulations including using a commercial kitchen, serve safe certified, nutrition labels (DSHEA) etc. They would only use chemical free extraction methods( no butane, sulfuric acid, ethyl alcohol or other isomer conversion method) and use only medical cannabis that has been tested and graded to be the highest quality and free of contaminants (mold, mildew, pesticides, chemical fertilizers). The products would need to be packaged in a way that cleary differentiates it from non-medicated foods. All patients would need to go through an orientation educating them on dosage amounts, difference between medical and recreational use and the methods of storage that minimizes accidental ingestion by children and the unknowing. Herbalcure: UPDATED 3/5/12: We still do not carry edibles and eagerly await clear regulation.We are one of the very few collectives who currently do not carry edibles because lack of regulation and quality control. This is unfortunate because many patients need to consume cannabis because they are unable to inhale it. When we do carry edibles, they will follow all WLANC recommendations, local, state and federal health, food and safety regulations, will only be given to patients who have edibles specifically recommended by their doctor on their original recommendation and there will be an amount limit.

29: Refinement of product restrictions i.e. concentrates/hash WLANC: MMC’s may provide concentrates to patients as long as it is NOT extracted by butane, wood alcohol, isopropyl alcohol, isomer conversion/sulphuric acid and preferably by ice water. Analysis: Chemical methods of cannabis extraction are potentially dangerous and lethal for patients as well as those who are making it.36 Ice water extraction is potentially the only "safe" 36

CPCA White Paper: In March of 2006, police and fire responded to an explosion at a San Ramon townhouse and found three young men engaged in cultivating and manufacturing “honey oil” for local pot clubs. Marijuana was also being sold from the residence. Honey oil is a concentrated form of cannabis chemically extracted from ground up marijuana with extremely volatile butane and a special “honey oil” extractor tube. The butane extraction operation exploded with such force that it blew the garage door partially off its hinges. Sprinklers in the residence kept the fire from spreading to the other homes in the densely packed residential neighborhood. At least one of the men was employed by Ken Estes, owner of the Dragon fly Holistic Solutions pot clubs in Richmond, San Francisco, and Lake County. They were making the “honey oil” with marijuana and butane that they brought up from one of Estes’ San Diego pot clubs after it was shut down by federal agents.

30 method for patients and those who make it. Herbalcure: We only carry chemical free (no butane) cold-pressed concentrates that are made from the same flowers that we carry on the shelf. Patients can obtain concentrates only after they have had experience medicating with the corresponding flowers first and they have been educated on dosaging. This ensures consistent medicinal effect and helps us screen out patients who are overmedicating or abusing medicine. However, while many patients find concentrates beneficial, it is not a contention point for us and we do not need to carry them.

30: Onsite, amount restrictions WLANC: At any given time, no MMC may possess more marijuana or marijuana plants than would reasonably meet the immediate needs of its registered members, nor possess marijuana that was not cultivated by the registered members of the MMC as defined under Health and Safety Codes 11362.7-11362.83 . Herbalcure: UPDATED 3/5/12: As of January 2010 we cultivate all medicine ourselves onsite to meet the immediate, reasonable needs of our members. At any given time, we do not possess more cannabis or cannabis plants than would reasonably meet the immediate needs of our registered members, nor posses marijuana that was not cultivated by the registered member of Herbalcure. We prefer keeping less medicine onsite because it is less likely to attract part 1 and 2 crimes. Like a regular pharmacy, there are certain medicines that patients consistently rely on and sometimes we must keep a larger amount of stock to last for the dryer months. We only obtain medicine from our cultivators who grow amounts specific to our needs and do not go through vendors, salesmen or middlemen which would make it easier to keep smaller quantities on hand.

31: Non-conforming, time limit to conform WLANC: All pre-ICO MMC’s should be given a 1 year time limit to conform. All hardship collectives will be shut down immediately and all hardship applicants will be banned from opening another collective in LA City. This does not apply to hardship MMC’s who were

31 forced to relocate due to DEA landlord threats. Herbalcure: We would appreciate our City Council giving us time to conform, especially since it has taken over 13 years for medical cannabis to make it this far and we have been operating without incident for over two years. If we are unable to conform, we would appreciate the opportunity to prove with evidence that we deserve to be legal non-conforming status. If we are not granted legal non-conforming status, then we will adapt and change with the ordinance in whatever way will best serve our community.

32: Cultivation location requirements i.e. onsite, registered at other location WLANC: No collective shall possess marijuana that was not cultivated either on the property or at a previous location, registered in accordance the current LA City ordinance by that particular collective. Herbalcure: UPDATED 3/5/12: As of January 2010 we cultivate all medicine ourselves onsite to meet the immediate, reasonable needs of our members. Currently, there exists little regulation on where cannabis can be legally cultivated so we use common sense and self-regulate. We legally contract our cultivators to grow their medicine exclusively for Herbalcure according to our standards; California-grown to organic standards without molds, mildews, chemical fertilizers and pesticides. We provide them with licensed electricians, water experts, attorneys, and inspect their farms to promote compliance with all laws, health, safety and fire codes. It would be extremely difficult to grow onsite enough medicine to adequately meet our patients’ needs. Like produce, different strains of cannabis grow better in certain California climates which requires us to use cultivators who are out of county although in state to provide specific medicinal effects required by our patients. We look forward to growing most of our medicine onsite or in a local registered location to minimize carbon footprint, ensure quality control and create paper trail and line of use that can be tracked.

33: Maintenance of records WLANC: Medical Marijuana Cooperatives/Collectives shall maintain records reflecting: (1) the full name, address, and telephone number(s) of the owner or lessee of the property; (2) the full

32 name, address, and telephone number(s) of all Qualified Patients, Persons with ID Card, and/or Primary Caregivers who participate in the MMC cultivation; (3) the full name, address, and telephone number(s) of all Qualified Patients and Persons with ID Card to whom the MMC provides Medical Marijuana; (4) the designation, by Qualified Patient(s) and Person with ID Card, of any and all Primary Caregivers who participate in the MMC cultivation; (5) the amount of compensation, if any, for specified cultivationrelated services received by any Primary Caregiver in accordance with California Health and Safety Code Section 11362.765, and; (6) proof of valid MMC Permit pursuant to Section 46.62 of the Los Angeles Municipal Code. Herbalcure: We maintain paper and electronic databases of all patient and doctor pertinent information. We operate a POS system that stores and tracks all orders.

34: Onsite ATM's restriction WLANC: ATM's are not allowed onsite Herbalcure: We currently do not have an ATM nor would we ever.

Adverse Secondary Effects of Marijuana Dispensaries and Similarly Operating Cooperatives

CPCA: Of great concern are the adverse secondary effects of these dispensaries and storefront cooperatives. They are many. Besides flouting federal law by selling a prohibited Schedule I drug under the Controlled Substances Act, marijuana dispensaries attract or cause numerous ancillary social problems as byproducts of their operation. The most glaring of these are other criminal acts. WLANC: According to Lt Garza, the head of narcotics for WLAPD, “After investigating all medical marijuana dispensaries in our district, we have found there has been no

33 significant increase in Part 1 or Part 2 crimes that can be specifically attributed to medical marijuana collectives. Most MMC's are cash businesses and like any business that carries a large amount of cash onsite, they attract thieves. Similar incidents have occurred with food trucks who accept only cash.''37 Herbalcure: One of the main reasons California voters approved Prop 215 was so it would reduce adverse secondary affects associated with black marketing. The quicker that fair and effective regulations are created, the quicker adverse secondary effects will likely decrease. ANCILLARY CRIMES: ARMED ROBBERIES, BURGLARIES AND MURDERS CPCA: Throughout California, many violent crimes have been committed that can be traced to the proliferation of marijuana dispensaries. These include armed robberies and murders. For example, as far back as 2002, two home occupants were shot in Willits, California in the course of a home invasion robbery targeting medical marijuana. A series of four armed robberies of a marijuana dispensary in Santa Barbara, California occurred through August 10, 2006, in which thirty dollars and fifteen baggies filled with marijuana on display were taken by force and removed from the premises in the latest holdup. The owner said he failed to report the first three robberies because “medical marijuana is such a controversial issue.” WLANC: n/a Herbalcure: Herbalcure employs state licensed security guards. Our door is made of heavy steel and is securely bolted into the building. The interior and exterior of our property is monitored by a 24 hour video, audio surveillance system which is accessible on site with several different monitors as well as from remote locations on the internet. We actively monitor patients on the premises, look for those who are “casing” and proactively screen for criminal elements through our membership and orientation process. We maintain and constantly update a “red flag list” of patients who have violated our terms and conditions, known operators of illegally operating hardship dispensaries and other suspected criminal elements.38 C. TRAFFIC, NOISE, AND DRUG DEALING 37

http://latimesblogs.latimes.com/lanow/2009/08/fifth-suspect-in-taco-truck-robberiessurrenders.html 38

http://www.pdfcoke.com/doc/20576577/d11mmhardshipexcel

34 CPCA: Increased noise and pedestrian traffic, including nonresidents in pursuit of marijuana, and out of area criminals in search of prey, are commonly encountered just outside marijuana dispensaries, as well as drug-related offenses in the vicinity—like resales of products just obtained inside—since these marijuana centers regularly attract marijuana growers, drug users, and drug traffickers. Sharing just purchased marijuana outside dispensaries also regularly takes place. WLANC: n/a Herbalcure: We have dedicated parking spaces for our patients and have a large parking lot that has always accommodated our patients’ needs. We don’t allow loitering or any noise disruption by patients and non-patients on our property and use our state licensed security to enforce it. In order to deter drug dealing/diversion/black marketing, we maintain high donation rates, have a daily limit and maintain electronic records of all patient transactions. Also, we do not accept vendors. D. ORGANIZED CRIME, MONEY LAUNDERING, AND FIREARMS VIOLATIONS CPCA: Increasingly, reports have been surfacing about organized crime involvement in the ownership and operation of marijuana dispensaries, including Asian and other criminal street gangs and at least one member of the Armenian Mafia. The dispensaries or “pot clubs” are often used as a front by organized crime gangs to traffic in drugs and launder money. One such gang whose territory included San Francisco and Oakland, California reportedly ran a multi-million dollar business operating ten warehouses in which vast amounts of marijuana plants were grown. Besides seizing over 9,000 marijuana plants during surprise raids on this criminal enterprise’s storage facilities, federal officers also confiscated three firearms, which seem to go hand in hand with medical marijuana cultivation and dispensaries. Marijuana storefront businesses have allowed criminals to flourish in California. In the summer of 2007, the City of San Diego cooperated with federal authorities and served search warrants on several marijuana dispensary locations. In addition to marijuana, many weapons were recovered, including a stolen handgun and an M-16 assault rifle. The National Drug Intelligence Center reports that marijuana growers are employing armed guards, using explosive booby traps, and murdering people to shield their crops. Street gangs of all national origins are involved in transporting and distributing marijuana to meet the ever increasing demand for the drug. Active Asian gangs have included members of Vietnamese organized crime syndicates who have migrated from Canada to buy homes throughout the United States to use as grow houses.

35

Some or all of the processed harvest of marijuana plants nurtured in these homes then wind up at storefront marijuana dispensaries owned and operated by these gangs. Storefront marijuana businesses are very dangerous enterprises that thrive on ancillary grow operations. Besides fueling marijuana dispensaries, some monetary proceeds from the sale of harvested marijuana derived from plants grown inside houses are being used by organized crime syndicates to fund other legitimate businesses for profit and the laundering of money, and to conduct illegal business operations like prostitution, extortion, and drug trafficking. Money from residential grow operations is also sometimes traded by criminal gang members for firearms, and used to buy drugs, personal vehicles, and additional houses for more grow operations, and along with the illegal income derived from large-scale organized crime-related marijuana production operations comes widespread income tax evasion. WLANC: n/a Herbalcure: We are registered with the board of equalization and pay all taxes. All our transactions occur on a POS system that creates a digital paper trail and alerts us to patient misconduct. We never have and never will keep guns on the premises but we do employ an armed sate licensed security guard. We understand our community and law enforcement concerns with cash increasing potential of crime and money laundering and would prefer to use credit cards. However, when we have attempted to set up merchant accounts, we were informed that since banks are federally regulated, any transactions that include marijuana, even medical are on a prohibited list and can at any time, not have to be paid by the bank i.e. force the MMC to pay the bill.

E. POISONINGS CPCA: Another social problem somewhat unique to marijuana dispensaries is poisonings, both intentional and unintentional. On August 16, 2006, the Los Angeles Police Department received two such reports. One involved a security guard who ate a piece of cake extended to him from an operator of marijuana clinic as a “gift,” and soon afterward felt dizzy and disoriented. The second incident concerned a UPS driver who experienced similar symptoms after accepting and eating a cookie given to him by an operator of a different marijuana clinic.

36 WLANC: Please see edibles Herbalcure: We are one of the very few collectives who currently do not carry edibles because lack of regulation and quality control. This is unfortunate because many patients need to consume cannabis because they are unable to inhale it. When we do carry edibles, they will follow all WLANC recommendations, local, state and federal health, food and safety regulations, will only be given to patients who have edibles specifically recommended by their doctor on their original recommendation and there will be an amount limit. OTHER ADVERSE SECONDARY IMPACTS IN THE IMMEDIATE VICINITY OF DISPENSARIES CPCA: Other adverse secondary impacts from the operation of marijuana dispensaries include street dealers lurking about dispensaries to offer a lower price for marijuana to arriving patrons; marijuana smoking in public and in front of children in the vicinity of dispensaries; loitering and nuisances; acquiring marijuana and/or money by means of robbery of patrons going to or leaving dispensaries; an increase in burglaries at or near dispensaries; a loss of trade for other commercial businesses located near dispensaries; the sale at dispensaries of other illegal drugs besides marijuana; an increase in traffic accidents and driving under the influence arrests in which marijuana is implicated; and the failure of marijuana dispensary operators to report robberies to police. WLANC: n/a Herbalcure: We have not noticed a significant increase in these adverse secondary impacts around our collective. Again, the point of regulating medical marijuana is that it will reduce these impacts. SECONDARY ADVERSE IMPACTS IN THE COMMUNITY AT LARGE UNJUSTIFIED AND FICTITIOUS PHYSICIAN RECOMMENDATIONS CPCA: California’s legal requirement under California Health and Safety Code section 11362.5 that physician’s recommendation is required for a patient or caregiver to possess medical marijuana has resulted in other undesirable outcomes: wholesale issuance of recommendations by unscrupulous physicians seeking a quick buck, and

37 the proliferation of forged or fictitious physician recommendations. Some doctors link up with a marijuana dispensary and take up temporary residence in a local hotel room where they advertise their appearance in advance, and pass out medical marijuana use recommendations to a line of “patients” at “about $150 a pop.” Other individuals just make up their own phony doctor recommendations, which are seldom, if ever, scrutinized by dispensary employees for authenticity. Undercover DEA agents sporting fake medical marijuana recommendations were readily able to purchase marijuana from a clinic. Far too often, California’s medical marijuana law is used as a smokescreen for healthy pot users to get their desired drug, and for proprietors of marijuana dispensaries to make money off them, without suffering any legal repercussions.72 WLANC: There are unscrupulous doctors who are currently providing below standard medical care to patients by not following accepted standards of medical responsibility39 which according to the Medical Board of California Medical Marijuana Policy40 states in part: 11. Does this mean that the Medical Board cannot take any action against me because I have recommended cannabis to a patient? No. The Medical Board should not attempt to punish a physician solely on the basis of the fact that the physician approved the use of medicinal cannabis. However, if the Medical Board believes that the physician’s conduct has not met the applicable standard of care, the Medical Board may seek to impose disciplinary action against the physician. When the CUA was first enacted, the Medical Board issued a statement stating that a physician who recommends the use of medicinal cannabis should have arrived at that decision in accordance with accepted standards of medical responsibility. On May 7, 2004, the Board adopted an informational statement to give further guidance to physicians who may recommend the use of medicinal cannabis to their patients. The statement stressed that physicians would not be subject to investigation or disciplinary action if they arrive at the decision to recommend medicinal cannabis in accordance with accepted standards of medical responsibility that any reasonable and prudent physician would follow when recommending or approving any other medication or prescription drug treatment.” The statement described these standards as follows: • History and good faith examination of the patient; • Development of a treatment plan with objectives; 39 40

http://abclocal.go.com/kabc/story?section=news/local/los_angeles&id=7039914 California Medical Association Medical Marijuana Policy

38 • Provision of informed consent, including discussion of side effects; • Periodic review of the treatment’s efficacy; • Consultation, as necessary; and • Proper record keeping that supports the decision to recommend the use of cannabis. Then "...if the Medical Board believes that a physician has failed adequately to follow proper practice standards when recommending the use of medicinal cannabis, the Medical Board may initiate an investigation against the physician." Later on in the same document: 34. Are there any other types of actions that I should avoid? A physician should avoid the following: a) Providing cannabis to a patient; b) Describing to a patient how the patient may obtain cannabis, for example, by giving the name and address of a cannabis distributor; c) Communicating with a cannabis distributor, such as a cannabis dispensary, to confirm a recommendation made to a patient in an office dialogue; d) Offering a specific patient individualized advice concerning appropriate dosage timing, amount, and route of administration. Whether a particular recommendation or action is permissible will depend on the surrounding circumstances. Again, physicians cannot intentionally take an action for the purpose of enabling a patient to obtain cannabis or otherwise to violate the federal drug laws. There will be a gray area between the clearly permissible and clearly impermissible categories of action. Physicians will need to use their own judgment in assessing the level of risk involved in particular conduct. Physicians not using the same medical standards for prescribing pharmaceutical pills (where they mention dosage and usage requirements) and by preventing them from educating their patients on where to acquire quality and non-toxic medical marijuana is dangerous and puts the health and safety of seriously ill Angelenos at risk. The CMA is well aware of lack of quality control in the industry and states,"... because cannabis is not a regulated pharmaceutical, the crude herbal form may contain impurities or contaminants that could be harmful, particularly to patients with immunodeficiency problems." However, they do not suggest where patients should go to receive medical information. While there are certain advocacy groups such as Americans for Safe

39 Access41 which are known to provide quality education, many patients end up selftreating and get their information from non-qualified sources and non-professionals such as Google, internet, message boards, dispensaries, industry magazines and rumors. This further impedes the medical marijuana industry and creates more problems for community and law enforcement that have to deal with adverse secondary effects from irresponsible and uneducated patients. Fortunately this conflict, although still valid, is likely to be removed in the near future which is evidenced by Attorney Eric Holden's speech42 and California Senate Joint Resolution 1443 which urges the federal government to,"... create a comprehensive federal medical marijuana policy that ensures safe and legal access to any patient that would benefit from it." Herbalcure: It is known in our industry that recommendations can be easy to obtain and that some doctors are more lenient than others. We listen to our patients on which doctors they have found to be the best and provide a list of them to our patients. Any doctor who is not in good standing, or does not follow CMA standards, is removed from our list. PROLIFERATION OF GROW HOUSES IN RESIDENTIAL AREAS and LIFE SAFETY HAZARDS CREATED BY GROW HOUSES CPCA: In recent years the proliferation of grow houses in residential neighborhoods has exploded. This phenomenon is country wide, and ranges from the purchase for purpose of marijuana grow operations of small dwellings to “high priced McMansions . . . .” Mushrooming residential marijuana grow operations have been detected in California, Connecticut, Florida, Georgia, New Hampshire, North Carolina, Ohio, South Carolina, and Texas. In 2007 alone, such illegal operations were detected and shut down by federal and state law enforcement officials in 41 houses in California, 50 homes in Florida, and 11 homes in New Hampshire.75 Since then, the number of residences discovered to be so impacted has increased exponentially. Part of this recent influx of illicit residential grow operations is because the “THC-rich ‘B.C. bud’ strain” of marijuana originally produced in British Columbia “cane grown only in controlled indoor environments,” and the Canadian market is now reportedly saturated with the product of “competing Canadian gangs,” often Asian in composition or outlaw motorcycle gangs like the Hells Angels.76 Typically, a gutted house can hold about 1,000 plants that will each yield almost half a pound of sociable marijuana; this collectively nets about 500 pounds of usable marijuana per harvest, with an average of three to four harvests per year.77 With a street value of $3,000 to $5,000 per pound” for high-potency marijuana, and such multiple harvests, “a successful grow house can 41

http://www.safeaccessnow.org http://www.nytimes.com/2009/03/19/us/19holder.html 43 SJR 14 42

40 bring in between $4.5 million and $10 million a year . . . .”78 The high potency of hydroponically grown marijuana can command a price as much as six times higher than commercial grade marijuana.79 In Humboldt County, California, structure fires caused by unsafe indoor marijuana grow operations have become commonplace. The city of Arcata, which sports four marijuana dispensaries, was the site of a house fire in which a fan had fallen over and ignited a fire; it had been turned into a grow houseboy its tenant. Per Arcata Police Chief Randy Mendoza, altered and makeshift "no code" electrical service connections and overloaded wires used to operate high-powered grow lights and fans are common causes of the fires. Large indoor marijuana growing operations can create such excessive draws of electricity that PG&E power pole transformers are commonly blown. An average 1,500-square-foot tract house used for growing marijuana can generate monthly electrical bills from $1,000to $3,000 per month. From an environmental standpoint, the carbon footprint from greenhouse gas emissions created by large indoor marijuana grow operations should be a major concern for every community in terms of complying with Air Board AB-32 regulations, as well as other greenhouse gas reduction policies. Typically, air vents are cut into roofs, water seeps into carpeting, windows are blacked out, holes are cut in floors, wiring is jury-rigged, and electrical circuits are overloaded to operate grow lights and other apparatus. When fires start, they spread quickly. The May 31, 2008 edition of the Los Angeles Times reported, "Law enforcement officials estimate thetas many as 1,000 of the 7,500 homes in this Humboldt County community are being used to cultivate marijuana, slashing into the housing stock, spreading building-safety problems and sowing neighborhood discord." Not surprisingly, in this bastion of liberal pot possession rules that authorized the cultivation of up to 99 plants for medicinal purpose, most structural fires in the community of Arcata have been of late associated with marijuana cultivation.80 Chief of Police Mendosa clarified that the actual number of marijuana grow houses in Arcata has been an ongoing subject of public debate. Mendosa added, "We know there are numerous grow houses in almost every neighborhood inland around the city, which has been the source of constant citizen complaints." House fires caused by grower-installed makeshift electrical wiring or tipped electrical fans are now endemic to Humboldt County. Neither is fire an uncommon occurrence at grow houses elsewhere across the nation. Another occurred not long ago in Holiday, Florida.83 To compound matters further, escape routes for firefighters are often obstructed by blocked windows in grow houses, electric wiring is tampered with to steal electricity, and some residences are even booby-trapped to discourage and repel unwanted intruders.84 WLANC: Marijuana grow operations should be regulated by the same zoning codes and laws as agricultural crops. Residential zoning should be avoided; commercial, industrial and

41 agricultural zoning is preferred. Indoor grow operations (IGO) could be confined to secured warehouses away from residential areas, to minimize odor and contact with children. Outdoor grow operations (OGO) should follow same agricultural zoning as produce. Currently, there exists no professional certification or regulatory agency on IGO's and OGO's and many patients will build gardens, without adequate training and knowledge in fire, health, electrical, OSHA codes and regulations which results in aforementioned adverse secondary effects. Also, IGO's and OGO's can use tremendous amounts of electricity and water, which can negatively impact the community and contribute to the likelihood of rolling blackouts and depletion of the water table which can hurt during drought conditions. Herbalcure: UPDATED 3/5/12: As of January 2010 we cultivate all medicine ourselves onsite to meet the immediate, reasonable needs of our members. We have our cultivators sign contracts agreeing to follow all health, safety, fire codes and regulations. As a collective, we freely connect them with other members who are professionals in the fields of construction, electrical, agricultural water and renewable energy as an incentive. Ideally, we would prefer to have all IGO’s confined to secure commercial and industrials areas where our farmer/patients could safely and discreetly grow our medicine without being a potential nuisance to our neighbors. OGO's would be grown the same as any other agricultural crop. We eagerly await for regulations that will allow us this opportunity to safely and legally to grow our own medicine without fear of breaking any laws.

INCREASED ORGANIZED GANG ACTIVITIES CPCA: Along with marijuana dispensaries and the grow operations to support them come members of organized criminal gangs to operate and profit from them. Members of an ethnic Chinese drug gang were discovered to have operated 50 indoor grow operations in the San Francisco Bay area, while Cuban-American crime organizations have been found to be operating grow houses in Florida and elsewhere in the South. A Vietnamese drug ring was caught operating 19 grow houses in Seattle and Puget Sound, Washington. In July of 2008, over 55 Asian gang members were indicted for narcotics trafficking in marijuana and ecstasy, including members of the Hop Sing Gang that had been actively operating marijuana grow operations in Elk Grove and elsewhere in the vicinity of Sacramento, California.

42 WLANC: n/a Herbalcure: We have no gang affiliation. EXPOSURE OF MINORS TO MARIJUANA CPCA: Minors who are exposed to marijuana at dispensaries or residences where marijuana plants are grown may be subtly influenced to regard it as a generally legal drug, and inclined to sample it. In grow houses, children are exposed to dangerous fire and health conditions that are inherent in indoor grow operations. Dispensaries also sell marijuana to minors. WLANC: We assume that with more people using medical marijuana, more minors will be exposed to it. If marijuana is to be truly classified as a medicine then proper and balanced education needs to be provided to help minors understand the difference between medical and recreational use. Herbalcure: No persons under the age of eighteen should be allowed on the property unless that minor is a qualified patient or person with an identification card or verifiable doctors recommendation, accompanied by his or her licensed attending physician, parent or documented legal guardian. Many of our patients have children and are confused on how to interact them when it comes to medical marijuana. Some patients hide their MM patient status from their children because at school they are taught an unbalanced perspective, that people who use medical marijuana are “drug addicts” and “criminals.” We recommend to our patients that they educate their children with a balanced perspective on medical marijuana and the difference between medicinal and recreational use. IMPAIRED PUBLIC HEALTH CPCA: Indoor marijuana grow operations emit a skunk-like odor, and foster generally unhealthy conditions like allowing chemicals and fertilizers to be placed in the open, an increased carbon dioxide level within the grow house, and the accumulation of mold, all of which are dangerous to any children or adults who may be living in the residence, although many grow houses are uninhabited.

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WLANC: We have no statistics. However, the intention of regulating MMD’s is that they will better the public health by providing higher quality medicine, grown and processed in a way as to minimize adverse impacts on the community and environment in comparison to the black market. Herbalcure: UPDATED 3/5/12: As of January 2010 we cultivate all medicine ourselves onsite to meet the immediate, reasonable needs of our members. Again, our cultivators cultivate medicine exclusively to Herbalcure, our cultivators sign contracts and provide professionals who are knowledgeable on codes. to ensure that public health isn’t impaired. We promote natural and organic farming methods and inspect each medicine for molds, mildews and other potential toxins. We look forward to working with laboratories and testing facilities to increase quality control even more. LOSS OF BUSINESS TAX REVENUE WLANC: We currently have no statistics and have not had any complaints to our council. Herbalcure: Our neighbors credit us with beautifying our area and increasing business tax revenue. DECREASED QUALITY OF LIFE IN DETERIORATING NEIGHBORHOODS, BOTH BUSINESS AND RESIDENTIAL CPCA: Marijuana dispensaries bring in the criminal element and loiterers, which in turn scare off potential business patrons of nearby legitimate businesses, causing loss of revenues and deterioration of the affected business district. Likewise, empty homes used as grow houses emit noxious odors in residential neighborhoods, project irritating sounds of whirring fans, and promote the din of vehicles coming and going at all hours of the day and night. Near harvest time, rival growers and other uninvited enterprising criminals sometimes invade grow houses to beat “clip crews” to the site and rip-off mature plants ready for harvesting. As a result, violence often erupts from confrontations in the affected residential neighborhood. WLANC: n/a

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Herbalcure: We feel we increase the quality of life in our neighborhood. ULTIMATE CONCLUSIONS REGARDING ADVERSE SECONDARY EFFECTS CPCA: On balance, any utility to medical marijuana patients in care giving and convenience that marijuana dispensaries may appear to have on the surface is enormously outweighed by a much darker reality that is punctuated by the many adverse secondary effects created by their presence in communities, recounted here. These drug distribution centers have even proven to be unsafe for their own proprietors.

WLANC: We agree with CPCA that the benefits of currently operating medical marijuana dispensaries are outweighed by the adverse secondary effects. We look forward to immediate and effective regulation that reduces these adverse secondary effects on our community, patients and law enforcement while still protecting patients’ rights to reasonable and safe access. Herbalcure: We agree with the WLANC. References Please go to http://www.pdfcoke.com/WLANC for all documents referenced in this report. Electronic version of Green Paper can be downloaded at http://www.pdfcoke.com/doc/21801270/wlancgreenpaperfactsandfindings Laws and Ordinances Prop 215 SB420 Brown Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use, August 2008

45 Trutanich Review of Case Law Regarding Collective Cultivation of Medical Marijuana Under California Law Trutanich 4th Revised Draft Ordinance Establishing Regulations Regarding Medical Marijuana Collectives Los Angeles County West Hollywood Santa Clara County San Jose San Francisco Oakland Nevada County Inter-Agency Protocol Laguna Beach Reyes, City' Proposed Medical Marijuana Ordinance Senate Joint Resolution No. 14-Relative to medical marijuana. City of Los Angeles Medical Marijuana Interim Control Ordinance (ICO) Frequently Asked Questions PDATED: July 20, 2009 White Papers, etc. Fix Los Angeles White Paper California Police Chiefs Association (CPCA) Alliance of Community Organizations and Neighborhood Activists for Reasonable Medical Marijuana Regulation Americans for Safe Access (ASA) White Paper ASA Medical Cannabis Dispensing Collectives and Local Regulation Exhibit 4- Edible Medical Cannabis California Medical Association Medical Marijuana

Behind the Scenes of a West Los Angeles Medical Marijuana Dispensary UPDATED 3/5/12: Since this paper was written, consistent with our open door policy, we have had several city elected officials and city staff tour our facility and onsite grow rooms. As of February 2011, through our law firm, we have been advising the City Attorney’s office on a new ordinance. One of the most common complaints from neighbors and law enforcement is that MMC’s generally operate behind closed doors without oversight from LAPD and DBS. Herbalcure, a pre-ICO moratorium (non-hardship) medical marijuana collective located in the WLANC boundaries has offered to disclose its operational standards and experiences in the medical marijuana industry. We opened our doors on March 27th, 2007 as a non-profit California mutual beneficial corporation with the goal of being a Friendly Neighborhood Medical Marijuana Collective. As patients and cultivators we were dissatisfied with the widespread profiteering and lack of quality control we were finding at other dispensaries. Herbalcure was to be a place where legitimate patients could obtain fine organic medicine,

46 recommended by educated volunteers in a boutique setting. Our founders’ backgrounds included an Ivy League graduate, a Master’s in Law and professional political and business experience. As cultivators we had years of experience in researching, standardizing, testing and growing the highest quality organic medicine. As parents and members of our community we knew that without the support of our neighbors and law enforcement, we wouldn’t be around for long. There was very little clear medical marijuana legislation at that time, however much of it was common sense: don’t operate as a front for illegal drug trafficking. We shared the same concerns as our neighboring businesses about adverse secondary affects related to illegal and unregulated MMC’s. On our property, we removed all litter and graffiti, kicked out vagrants, drug dealers and hired professional security to patrol a 1 block radius. We had an open dialogue with our local law enforcement, didn’t advertise and had a private, referral only membership. Most of our neighbors didn’t even realize we were there because we had no signage facing the street, only the words “Herbalcure” facing the parking lot. We didn’t set the world on fire, but we served our patients without being raided or having any complaints from law enforcement or community. We were overjoyed when Attorney General Eric Holden gave his famous cease-fire speech and felt we finally had a chance to operate as a legitimate health care facility. Because regulation was still slow in coming we had to make the choice to self-regulate ourselves further. Since we refused to see “vendors” any medicine we didn’t grow ourselves we had legally contracted to our patients who as cultivators would only cultivate medicine exclusively for us, had to demonstrate proficiency, ethical behavior ability to follow all fire safety regulations and grow medicine to organic standards. We implemented measures and improved our policies to prevent black marketing and drug dealing. We refused to carry edibles because we couldn’t guarantee quality, consistent dosages and medicine contained there in. We only used discrete advertising practices that promoted medical use and never advertised discounts, menu or “Free Gram” specials. However, because of legal red tape and the hardship exemption, Los Angeles now has over 900 illegally operating MMC’s, 64 of them in our District 11, about 10 in the WLANC boundaries. Some are open very late; many of them are promoting recreational use. One hardship collective continually sends homeless and “adult entertainers” to our property, handing out flyers advertising their “Free Gram” specials. When our security questions them, they tell us they are given free marijuana for every patient that brings a flyer with their name on it. We are very frustrated with the City for not doing more to protect us and our patients from these hardship dispensaries which according to the City of Los Angeles Medical Marijuana interim Control Ordinance (ICO) FAQ UPDATED July 20th 2009 are operating illegally. We are frustrated that over 13 years have passed since Prop 215 was voted in and final regulations are still yet in place. We are very frustrated that dispensaries that make hundreds of thousands of dollars a month by haggling with cultivators and vendors and profiteering from patients are allowed to operate freely without consequences. We also are very grateful for the opportunity to provide the finest organic medicine to West Los Angeles patient community. We plan on being around for a while and to continue

47 operating in a way that best serves the needs of our patient and community. No matter what happens with the regulations, hardship dispensaries, federal government or the multitude of other factors which will ultimately determine our existence, we will continue to adapt as the industry adapts and in whatever way our community and patients need us to. While our patients continue to support us, we ask for the support of the City Attorney, City Council, law enforcement, neighborhood council, advocacy groups, MMC’s, patients, nonpatients and skeptics. We pledge to support them because in the end, we all want the same thing: responsible and effective medical marijuana regulation that is a win-win situation for everyone.

Herbalcure Exhibits

Exterior signage parking lot

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Exterior signage Pico

Exterior signage Pico

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Exterior signage parking lot

District 11 hardship map

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LA JEMM AD

Medication log sheet. Used by patients to figure out which strains have the medicinal effects necessary for their specific medical conditions because their doctors are legally unable to give it to them.

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Patient terms and conditions violation form

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Volunteer evaluation form

53 UPDATED 3/5/12: As of January 2010 we cultivate all medicine ourselves onsite to meet the immediate, reasonable needs of our members. We no longer use outside cultivators.

Cultivator/Patient agreement 1

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Cultivator/Patient agreement 2

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Cultivator/Patient agreement 3

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Transport agreement 1

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Transport agreement 2 58

Volunteer information packet Volunteer information packet

Volunteer information packet

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Volunteer information packet

Volunteer information packet

Volunteer information packet

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Volunteer information packet

Medicine label

Volunteer information packet

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