PROPOSED MARIJUANA MEASURES MOVE FORWARD IN BERKELEY

Two new laws greatly expanding Berkeley's medical marijuana industry
but also raising taxes on it likely will go before voters in
November, following a Tuesday night City Council meeting.

The two ballot questions, if approved, will allow up to 11
large-scale growing facilities of various sizes, but none larger than
30,000 square feet in the city's manufacturing zone. And the measures
will allow a fourth retail outlet in the city's commercial districts,
among other provisions.

The Council voted unanimously to approve language in the laws and
will bring the matter back next Tuesday for a final vote that may
place them on the ballot.

Under the new law, growers would also be allowed to bake pot
brownies, cookies and cakes, but would not be able to sell anything
at the facility.

Berkeley's three existing medical marijuana dispensaries report sales
of $18.5 million a year, according to a city report. New taxes would
raise income for the city from $30,000 a year to about $330,000.

One of the two measures also reduces a buffer zone between retail
dispensaries and public schools from 1,000 feet to 600 feet and adds
private schools, which previously were not mentioned. Existing
dispensaries closer to a school than 600 feet would be allowed to remain.

During public comment at the Council meeting, about 20 people spoke,
none with a negative take on the situation.

"It's obvious you respect the cannabis community," said Richard
Muller. "We're seriously ill, so I want you to think of people in
terms of fixed incomes."

Berkeley Mayor Tom Bates said three high priorities council members
had when crafting the language of the new laws were that some weed,
possibly 10 percent, be given away free to low-income patients, that
growers somehow "offset" their electric use, and that the city give
preference to locals when issuing permits for the grow operations.

"We don't want some major corporation like Wal-Mart or Phillip Morris
coming in and sucking up all the business," Bates said.

Councilman Laurie Capitelli successfully convinced the Council that a
previous cap of four growing facilities was too few.

"I want to increase competition because that's good for just about
any business," Capitelli said. "Four locations is monopolistic. It
seems quite simple to me: The more competition you have, the better
product you're going to have at a lower price."

Dispensaries currently are taxed $1.20 per $1,000 in sales. New taxes
would rise to $25 per $1,000 of sales. Those that are organized as
non-profits would pay $25 per square foot on the first 3,000 square
feet of their operation and $10 for anything over that.

One of the ballot measures also allows an unlimited number of medical
marijuana collectives, which are already allowed under state law.
Collectives are different than dispensaries in that they have no
retail locations. Collectives would be allowed in homes in
residential areas and be allowed to grow 200 square feet of weed in
any home or 25 percent of the floor area.