RISE OF POT DISPENSARIES IN SANTA CRUZ COUNTY MAY PROMPT NEW
REGULATIONS

SOQUEL -- Chris Morganelli makes marijuana deliveries to sick people
from a small office in Soquel. Business has been brisk, he says, and
he's looking to expand his venture, the Capitola Healing Association,
to a storefront nearby.

But that hasn't been easy. Morganelli tried Tuesday to get a use
permit from the county to open a new shop, something his prospective
landlord requires before renting to him. But he was denied an
application because pot dispensaries aren't technically allowed in the
county's unincorporated areas -- even though several are in operation
and officials have done nothing to stop them.

"I'm paying taxes, I have my business permit and I'm being denied due
process," said Morganelli, who is now threatening a lawsuit against
the county. "I should be allowed to do this legitimately."

Morganelli is among many caught in the cross hairs of a county policy
that doesn't appear to make much sense. While planners have said
medical marijuana dispensaries are not a "permitted use," they also
allow them to do business, barring any major health or safety problems.

At least one county supervisor, though, says it's time to address the
contradiction, especially as more people like Morganelli seek to get
into the business or expand their operations here.

"This is medicine and we want to make sure it's accessible to people,"
Supervisor John Leopold said. "But we need to have some order to this,
rather than chaos. Unless you set up some rules, it's a Wild West situation."

Leopold said he doesn't know what form new regulations would take,
only that he hopes to begin re-examining the current policy in the
next few months. The rules, he said, could include limiting where
dispensaries are located, capping how many there are and requiring
them to operate as nonprofits.

Other communities across the state are also having to address the
marijuana issue as the number of dispensaries increases. California
law, per voter-approved Proposition 215, allows medical marijuana
shops to operate, but it's vague on what accommodations, if any, local
governments must make for them.

The city of Santa Cruz is the only place in Santa Cruz County that
currently allows pot dispensaries -- city officials have capped
operations at two facilities. But as county officials have turned a
blind eye on the trade, a handful of shops have opened in the
unincorporated areas, from Soquel to Boulder Creek, and others operate
as delivery services.

The latest storefront is Granny Purps, which opened last month on 41st
Avenue, across from Home Depot.

"There's a lot of people my age 60s who are looking for a safe place
to access marijuana," said Nancy Black, aka Granny Purps and
co-founder of the new dispensary, which offers a range of pot products
from cookies to lotions.

Like other local shops, Granny Purps said she strives to operate under
recommendations offered by the state Attorney General's Office, to
ensure a safe and low-impact business.

"We're trying to be a very positive part of the community," Black
said.

Though Leopold said he hopes to have a new policy in place soon, he
and other county officials warn that dispensaries are currently not
allowed under county regulations.

"Anybody who goes out right now and opens a dispensary is placing
themselves at some risk," Leopold said.