PALM SPRINGS MULLS LAW FOR MARIJUANA DISPENSARIES

Palm Springs could become the only city in Riverside County to allow
medical marijuana dispensaries - provided they comply with state
guidelines released in August and are located in areas zoned for
industrial use.

The draft of the proposed law gets its first public hearing at a
meeting of the city's medical marijuana task force at 3 p.m. today at
Palm Springs City Hall, 3200 E. Tahquitz Canyon Way.

Following the guidelines issued by state Attorney General Jerry Brown,
the proposed ordinance would ban for-profit dispensaries in the city,
but allow dispensaries organized as not-for-profit collectives or
cooperatives.

Dispensaries also would be limited to the city's industrial zones and
would have to be at least 500 feet from any school, park, playground
or residential area.

"We're trying to figure out a way to reasonably allow activities
within the state's Compassionate Use Act, while still recognizing we
have federal law that suggests this is illegal drug activity," said
City Attorney Doug Holland, who drafted the ordinance. "The idea here
is to try to provide balance."

The City Council also will take up the law at its meeting at 6 p.m.
Wednesday, although no vote is expected.

California law allows medical use of marijuana for people with a
doctor's letter of recommendation. Federal law bans all use or
cultivation.

Palm Springs has been wrestling with the issue for more than two
years, passing a series of moratoriums, while allowing two
dispensaries to operate without a city business license.

Coachella and Desert Hot Springs also have moratoriums, while Indian
Wells, Indio, La Quinta and Palm Desert passed dispensary bans.

Riverside County also has a ban in force for unincorporated
areas.

Stacy Hochanadel, who recently opened CannaHelp, Palm Springs' third
dispensary, said his business, located in an industrial zone, would
pass muster under the ordinance.

But Hochanadel questioned whether limiting dispensaries to industrial
zones would put too many in one area.

"We need 1,000 or 2,000 feet between shops," he said. "For security
reasons, it would be good for the community."

Lanny Swerdlow, president of the Marijuana Anti-Prohibition Project, a
patients' advocacy group, also raised concerns about the industrial
zone requirement and its impact on small patient collectives.

"(The law) has got to accept small co-ops (in residential areas), so
if someone wanted to have a little grow in their garage for themselves
and a few other patients, they could do so," Swerdlow said.

The other two dispensaries in Palm Springs - Community Caregivers and
the Collective Apothecary of Palm Springs, or C.A.P.S. - are both
located on Palm Canyon Drive in commercial zones.

Representatives for both dispensaries declined comment
Monday.

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Co-ops and collectives

Under guidelines from state Attorney General Jerry Brown, dispensaries
organized as not-for-profit cooperatives or collectives are allowed
under California's medical marijuana laws.

Cooperatives:

Must be incorporated with the state

Must have a state seller's permit and pay sales taxes

Can only obtain marijuana from and sell to co-op members

Collectives:

While state law has no statutory definition of collectives, the
guidelines describe them as "organization(s) that merely facilitate
the collaborative efforts of patient and caregiver members."

Not-for-profit:

Collectives and cooperatives cannot sell medical marijuana for profit,
but they may charge fees "that are reasonably calculated to cover
overhead costs and operating expenses."