HOLLISTER POT CLUB FACES DISPUTE IN LOS BANOS

Despite a city ban in effect since 2006, a nonprofit medical marijuana
dispensary has been operating for three weeks in a shopping center
with a movie theater and a doughnut shop.

The opening of Hollister-based Purple Cross Rx at 225 N. Mercey
Springs Road, in Suite B, at the end of July, has started a showdown
with city staff.

Fire Chief Chet Guintini, who oversees code enforcement and building
inspections, said Purple Cross Rx opened its doors with an incomplete
business licence application, which also listed the company as a
retailer instead of a place that distributes medicinal marijuana.

Police Chief Gary Brizzee said Purple Cross Rx was specifically told
by city staff that medical marijuana dispensaries are banned in Los
Banos.

Brizzee, who authored the ban, said the department will do everything
in its power to close the business as quickly as possible. He said
he's working with the district attorney's office to come up with a
solution.

"We're not going to go away. The law is the law and we will enforce
it," Brizzee said.

He also warned citizens.

"I would discourage any resident from doing business with them. It is
still illegal," Brizzee said.

The leader of the nonprofit collective, 33-year-old Scott McPhail,
does not deny he knew about the ban.

"I tried to get a business license and I was told there was a ban,
which I kinda knew," McPhail said. "I decided to open anyway. I filed
with the Merced County Recorder's Office, they knew I was coming. I'm
not afraid to execute my rights."

McPhail said he chose to come to Los Banos because it was close to his
home in Hollister and he believes the city's ban is against the law.

State law permits use of medicinal marijuana through the 1996 passage
of Proposition 215 and, although it is still not allowed under federal
law, the Obama administration issued guidelines in October to not
pursue cases against medical marijuana users or suppliers.

City Attorney William Vaughn said state and federal laws for and
against medical marijuana have no bearing on whether Los Banos
disallows Purple Cross Rx to do business in town.

"Cities are allowed to set up what uses they will and will not permit
within city limits. Cities can limit land uses. Medicinal marijuana
dispensaries are not allowed in any zones in Los Banos," Vaughn said.

McPhail said the city should have issued a moratorium on dispensaries
instead of a ban.

"A ban means you don't want something. A moratorium is giving it six
to 12 months. A ban is really unconstitutional," McPhail said.

City officials are not happy about Purple Cross Rx doing business in
town.

"First of all, it's illegal. They will be closed down and fined,"
Mayor Tommy Jones said.

McPhail has eight volunteers staffing the dispensary. McPhail said
most of his volunteers, including Matthew Albert, are veterans or
elderly people suffering from ailments that are treatable through
medicinal marijuana. Albert has written a letter to the city council.

The letter states, "I can understand the worries and objections a few
citizens may have with the opening of this establishment. It is a very
heated topic for debate in our state. I can also understand how it
would appear that this establishment is operating outside of local
laws, and that the city must respond. This is where I would like to
interject that medical marijuana was legalized in this beautiful state
in 1996, and denying disabled and terminally ill patients their right
to obtain medication seems to be unfair to say the least.

"However, due to the fact that this issue is once again in the
spotlight, it would be appreciated if the volunteers at this fine
establishment were not being issued citations daily. If for no other
reason, because it is morally inexcusable."

Code Enforcement Officer Tammy Allard said she found out about the
dispensary on July 30 and has issued citations to it nearly every
other day for operating without a business license, not keeping the
doors unlocked at all times during business hours and violating the
ordinance banning marijuana dispensaries. Guintini said Purple Cross
Rx has already been fined about $3,000.

"Tammy's out there constantly messing with them," Guintini said. "I
wouldn't call it a pattern of harassment. I call it a pattern of
enforcement."

McPhail does not care about the fines.

"They can fine me every hour, every customer, they're only
administrative fines. There's nothing they can really do. I don't lose
any sleep over it. Even if they take me to court I'll be open for months."

Vaughn said the city is considering filing for an injunction against
Purple Cross Rx. He said it's an expedited process, but would still
likely take 60 days. Vaughn also said the city is planning to go after
the owner of the property where the dispensary is located. He said the
owner could face fines of as much as $500 a day.

McPhail, who lists his day job as being a record label owner, said
he's been a medicinal marijuana advocate for years and plans to open
two more dispensaries on the Central Coast of California. He declined
to state the cities where they will be located.

Purple Cross Rx spent eight months in Hollister. Stephanie Atigh,
Hollister's city attorney, said in December McPhail lobbied her city
council to overturn its ban on marijuana dispensaries. The council
declined to do so, Atigh said. She said later that month McPhail
e-mailed council members a letter saying "thanks for all your help.
Merry Christmas my business is open."

Atigh said she was first told McPhail's dispensary was online only.
She later discovered he was operating from a storefront.

Atigh filed an injunction against Purple Cross Rx on April 14. She
said in May the nonprofit filed a response. But before the case could
go further, a note was found on the dispensary's door last month
saying it was moving to Los Banos. Hollister dropped its complaint.