LIMIT MEDICAL POT SHOPS

The bad news is Santa Cruz County government appears to have its own
medical marijuana pot shop problem.

The good news is the county won't have to look too far to find a
solution -- the city of Santa Cruz has already figured out how to
deal with the unregulated proliferation of storefront operations
selling marijuana.

Last week, the Sentinel reported that a Soquel entrepreneur, Chris
Morganelli, has applied for a use permit from the county, to set up a
legal medical marijuana dispensary.

But he was turned down -- because, according to county regulations,
the marijuana shops aren't technically allowed in the unincorporated
areas of Santa Cruz County, even though several are open for business.

Morganelli, for instance, already has been making medical marijuana
deliveries to a clientele from a small office in Soquel. Now, he
wants to expand the operation to a storefront somewhere in the county
- -- and says he could sue if officials don't give him permission.

John Leopold, the county supervisor who represents the area where
Morganelli wants to dispense marijuana says he wants to make sure
medical pot is available to those who need it, but rules are needed
to limit where the shops can be located, as well as how many are allowed.

County government faces a problem experienced around the state, where
the burgeoning medical marijuana movement, approved by voters, has
led to an often unregulated expansion of dispensaries.

According to the Sentinel report, a handful of unregulated medical
marijuana dispensaries have opened in the unincorporated areas of the
county, including a storefront operation on 41st Avenue across from
Home Depot. Other marijuana shops operate as delivery services.

The city of Santa Cruz faced just such a dilemma and decided to limit
the number of medical pot shops in the city to two.

The county is going to have move quickly to set up regulations that
keep dispensaries away from schools and residential neighborhoods.

One reason why is because of an undercurrent of illegality that has
become attached to medical pot.

For instance, last month Sheriff's deputies seized 25 pounds of
processed marijuana, hundreds of pot plants, five guns and nearly
$2,000 cash in a raid on four locations in Santa Cruz and Santa Clara
counties. Two San Jose men were arrested and a third is wanted in
connection with the large-scale commercial growing and selling
operation, which detectives believe was selling the drug to medical
marijuana dispensaries and clubs.

Santa Cruz, long tolerant of marijuana use, is not the only city
grappling with how to regulate pot clubs at a time of increasing
local concern about drug- and gang-related violence. San Jose and Los
Angeles have had to limit proliferating dispensaries. Hollister has
banned the shops, and Monterey has a moratorium until new regulations
are worked out.

As communities are grappling with how to regulate medical marijuana,
voters will be asked in November to legalize marijuana for all
California adults.

While many cash-strapped local governments are hungrily eyeing the
potential revenue from taxing pot sales, we have to wonder if
regulating legalized marijuana will prove as elusive as it has for
medical pot dispensaries.