WALNUT CREEK TRYING TO SHUT DOWN MEDICAL MARIJUANA COLLECTIVE

As a medical marijuana debate swirls in Walnut Creek, leaders of the
city's first dispensary - apparently operating for the past few
months - refuse to shut down even as the city fines it hundreds of dollars.

The C3 Collective, a nonprofit private medical marijuana collective
based in Walnut Creek, can be fined $500 per day for violating the
city's zoning code, according to city officials. The violation: The
collective, which the city would consider a pharmacy, is in an area
zoned for office and residential, said City Attorney Paul Valle-Riestra.

The city's code enforcement officer checks to see if C3 is still
open. The city has cited the business three times. The fines started
at $100, then went to $250 and have peaked at $500 per citation.

C3 is appealing the violations.Brian Hyman, executive director and
CEO of C3, said he isn't closing because he is abiding by the law and
that his focus is providing medical marijuana, counseling and education.

"If the company loses money then the company loses money," he said.
Though Hyman wouldn't comment on the number of patients in the
collective, their ailments include glaucoma and HIV, he said.

Last year, state Attorney General Jerry Brown released
medical-marijuana guidelines aimed at fleshing out the state's 1996
Compassionate Use Act. The guidelines say a collective should be
"closed circuit," in which patients or their caregivers must grow the
marijuana.

At C3, members who grow marijuana donate it to the collective, who
then are compensated, usually with money, said Hyman. Some are given
medical marijuana as donations, and they donate cash or time to the
collective. The group is working to set up other community volunteer
opportunities for its members and others, said Hyman.

"This collective was established, located and is providing a greatly
needed service not only for its members but the community at large," he said.

The collective, at 1291 Oakland Blvd., has opaque windows. Inside, a
desk with a computer is the check-in station in a building monitored
by several video cameras. The lobby area is tidy, with taupe walls,
green couches, modern furniture and photos of aspens adorning the
walls and windows.

Both police and the city's code enforcement officer continue to
monitor the collective, Valle-Riestra said.

The city could seek an injunction to stop the dispensary operation,
but has not done so. The collective has not applied for a zoning
change, said Valle-Riestra. The violations are not related to the
45-day moratorium the City Council passed Aug. 18 banning medical
marijuana dispensaries in the city. The discussion of medical
marijuana facilities will continue at the Sept. 15 City Council meeting.

The moratorium expires Oct. 1, but the council can extend it.

"Just because we are imposing the moratorium doesn't mean we are
absolutely going to prohibit it," said Valle-Riestra.