CLEARLAKE WILL DISCUSS CLOSING MARIJUANA DISPENSARIES

CLEARLAKE - The Clearlake City Council will hear a recommendation
today to prohibit medical marijuana operations in the city and to
close the three existing medical marijuana dispensaries on grounds
that they are in violation of the city's zoning regulations.

The recommendation is being brought forth by City Administrator Dale
Neiman and Chief of Police Alan McClain. The issue is the fourth item
of business on the city council's agenda following public comment and
consent calendar. The meeting will begin at 6 p.m. The city's legal
representative is expected to be present.

The city issued the moratorium on April 13, 2007, imposing a
temporary 45-day prohibition on the establishment of new medical
marijuana dispensaries. In May 2007, the moratorium was extended to
10 months and 15 days. The moratorium had originally prohibited the
renewal of existing businesses licenses for medical marijuana
dispensaries as well; however, in August 2007, the council decided to
grant renewals of such licenses.

According to the staff report that originally accompanied the
moratorium, it was established to allow city staff time to establish
zoning regulations pertaining to medical marijuana dispensaries;
however, no zoning regulations have yet been established. It was
also the council's intention at the time the moratorium was
implemented to sidestep the issue until it was resolved in federal
courts.

In April 2008, the council allowed a moratorium to expire and decided
to rely on Clearlake Municipal Code 6-3.6, which states that "The
issuance of a license under this section shall not entitle the
licensee to engage in any or do any, which, for any reason, is in
violation of any federal, state, or municipal law, rule, or
regulation." Wording of the section has brought up a question as to
whether or not the city has the obligation or the right to enforce
federal laws.

In December 2008 the U.S. Supreme Court refused to review a decision
of the California state courts who found that its medical marijuana
law was not preempted by federal law. According to city staff, this
decision makes it more difficult for the city to rely on prohibiting
medical marijuana dispensaries using the provision in the city code
that requires compliance with federal law.

The council will be presented with four alternatives in terms of
medical marijuana operations, which are reportedly based on court
decisions to date. The first alternative is to prohibit all medical
marijuana dispensaries based on health and safety concerns and take
legal action to close the three dispensaries currently operating in
the city using public nuisance provisions because the operations
violate the city's zoning regulations.

The second alternative is to adopt regulations in the zoning
ordinance that would establish a cap on the number of dispensaries
allowed in the city. The cap would have to be justified from a legal
standpoint.

The next alternative would be to allow dispensaries as a conditional
use in the city's zoning ordinance. A conditional use permit is a
discretionary permit approved by the Planning Commission. Any use
permit application would need to be approved or denied using
consistent reasons so it cannot be argued that the city discriminated
against one group of applicants or operators.

The final alternative, which many proponents have been crying for
since the implementation of the original moratorium and which was in
part the basis for authorization of the decree, is to establish
regulations that comply with the provisions of the Medical Marijuana
Program in the California Health and Safety Code. Medical marijuana
dispensaries provide medicine to its patients based upon a doctor's
recommendation similar to a pharmacy, which provides medicine based
upon a doctor's prescription. It is illegal to be in possession of
marijuana without a proper recommendation; likewise it is illegal to
be in possession of pharmaceutical drugs without a
prescription.

According to City Clerk Melissa Swanson there are no zoning
regulations in city ordinances pertaining specifically to the
establishments of pharmacies either. Currently, in the City of
Clearlake, there is one pharmacy located within approximately 50
yards of a preschool.