L.A. CLOSES LOOPHOLE FOR MEDICAL MARIJUANA DISPENSARIES

The Number of Stores in the City Has Tripled, to Nearly 600, Since
the City Council Imposed a Moratorium on New Outlets in 2007.

Stunned by the spread of medical marijuana dispensaries in Los
Angeles, the City Council moved Tuesday to close a loophole that had
encouraged their rapid growth.

The council also rejected a dozen applications from dispensaries that
sought permission to operate despite the city's moratorium and
prepared to extend the ban for six months beyond its expiration in September.

And a council committee unveiled a revamped proposal for a
comprehensive ordinance to replace the moratorium.

"We know that time is passing. We'll close the loopholes, plug these
floodgates," said Councilman Ed Reyes, who leads the committee that
oversees medical marijuana.

When the city adopted the moratorium in 2007, it allowed 186
dispensaries to stay open. Now there are 600 or more.

On Tuesday, council members labored for eight hours to reassert
authority over a situation they said was out of control. The marathon
session came months after city officials learned that dispensaries
were violating the moratorium with impunity.

The moratorium included a provision that allowed dispensaries to file
hardship exemption applications with the council. The city attorney's
office had declined to take legal action to shut down any
dispensaries with pending exemption requests. And the City Council
had failed to act on them until Tuesday.

About 550 applications for exemptions have been filed.

The council voted to stop accepting applications, although it will be
at least a week before that change takes effect.

The move was proposed by Councilman Jose Huizar, who complained that
people were "putting up these fly-by-night operations knowing full
well they could make a quick buck while they can operate under this loophole."

The council rejected nine exemption applications without a hearing
when their owners did not show up. Three dispensaries argued their
cases, including L.A. Collective in Atwater Village.

That store drew particular attention because it filed one of five
exemption requests for locations on Glendale Boulevard in Atwater,
although only three of the stores are known to be open.

"People feel under siege," said Council President Eric Garcetti,
whose district includes the neighborhood.

In an interview at his dispensary, Edward Hovnanyan, one of the
owners of L.A. Collective, expressed dismay that the council had
targeted his store. He said that it was the first to open on Glendale
Boulevard and that he has worked closely with city officials on his
renovation. The shop has new floors and walls. A display case holds
20 jars filled with dusky green buds.

"I spent so much money, so much time, now I'm facing maybe being shut
down," he said. "If something's wrong, something's not right, why did
government not stop me?"

L.A. Collective also drew attention because it is just across the
street from a library. Under the new draft ordinance dispensaries
would not be permitted within 1,000 feet of places where children gather.

The council spent a year struggling with an earlier ordinance drafted
by the city attorney's office. Council members complained it would
shutter most dispensaries and finally abandoned it.

"We got stuck there for a while," Reyes said. "We just broke out of it."

Reyes cautioned that it could still be months before an ordinance is approved.

Meanwhile, he said the council will try to plow through the exemption
applications.

"We are at a pivotal point given the rash of establishments that have
created a negative impact in our communities," Reyes said. "So we are
going to have to roll up our sleeves and take up a number of these
hardship cases."