CANNAHELP TRYING TO OPEN NEW SHOP

Palm Springs could provide an early test of new guidelines on medical
marijuana dispensaries issued Monday by state Attorney General Jerry Brown.

Brown said that formal cooperatives registered under the state's Food
and Agricultural Code or organized as less formal "collectives" are
legal under the California's medical marijuana laws.

But he said anyone running a for-profit storefront dispensary not
operating as either a registered cooperative or collective may be
arrested and prosecuted by local authorities.

Stacy Hochanadel, former owner of the CannaHelp dispensary in Palm
Desert, said the new guidelines open the door for him to reopen the
business in Palm Springs, possibly within the next few weeks.

"I've received my business license from the city," Hochanadel said
Tuesday. "I believe in what I'm doing, and I know this is the best
thing for the people and the community."

The new dispensary will be at 505 Industrial Place, he said.

Hochanadel closed the Palm Desert store about a year ago. In April,
the Riverside County Superior Court dismissed county criminal charges
against him and two former managers at the dispensary. The county is
expected to appeal the case.

In the meantime, Palm Springs City Manager David Ready said that
while Hochanadel had paid for a business license, the city had only
issued a license receipt that does not authorize him to open a dispensary.

"It has to be allowed under the local land use," Ready said. "There
is no current zoning code for medical marijuana dispensaries, hence
the business license does not allow him to open such a business."

Ready said he would be taking the guidelines to the City Council for
discussion.

Guidelines Applauded

Other issues addressed in the guidelines include:

The state-issued ID card: Brown says it is not required, but
emphasized having a card is the easiest way for patients to ensure
they will not be arrested or their marijuana confiscated by police.

Cultivation and possession: The guidelines reaffirm that patients may
possess up to six mature or 12 immature plants or 8 ounces of dried
marijuana. Cooperatives and collectives are only allowed to dispense
marijuana grown by their members; they cannot buy it from outside sources.

State-federal conflict: Brown argues that "no legal conflict exists
simply because state law and federal law treat marijuana
differently." Federal law bans all use of marijuana. He recommends
that state law enforcement officers not use federal law to arrest
patients or seize marijuana.

Hochanadel and other advocates gave mostly positive marks to the guidelines.

"That's the kind of dispensary I've been pushing for," said Lanny
Swerdlow, president of the Marijuana Anti-Prohibition Project, a
local advocacy group. "I see small co-ops springing up all over the place."

But Thom Mrozek, spokesman for the U.S. Attorney's Office in Los
Angeles, said the guidelines will have no affect on federal raids on
California dispensaries, which have escalated in the past year.

"We don't care," Mrozek said. "It's our understanding that they place
some restrictions on the dispensaries which have sprouted up like
mushrooms in recent years, (but) that doesn't change the position of
the federal government that there is no such thing as medical marijuana."

Anthony Curiale, attorney for the patients' association that runs
Community Caregivers, one of two illegal dispensaries in Palm
Springs, took a middle ground, saying the guidelines were a good
first step but expected they would generate more court cases.

"I think it raises more questions than it provides answers," Curiale
said, adding that Community Caregivers is already in compliance with
the guidelines.

With the legality of his own business still uncertain, Hochanadel has
set no date for a CannaHelp opening.

He said he wants to try to work with the city.

"They have the (state) guidelines that have been set forth," he said.
"I'm willing to abide by them, and hopefully they are too."