POT DELIVERY SERVICE APPEARS DEAD

Entrepreneurs Learn of County Regulation

Tired of leaving the coast to get their medical marijuana, a couple of
Coastsiders decided to take matters into their own hands about six
months ago. Their brainchild was Herbal Empathy, a delivery-only
medical cannabis collective they hoped would bring a new legitimacy to
medical marijuana on the coast.

Drew and Eric, who asked that their last names not be used to assure
patient privacy, were in the process of getting their collective up
and running when they hit the brakes early this week upon learning
they needed a green light from San Mateo County in order to operate
legally. Herbal Empathy's owners spent roughly six weeks filing
paperwork to secure California nonprofit mutual benefit corporation
status and to get a business license. However, they failed to apply
for a license through San Mateo County, as is required according to
the county's 2009 medical marijuana ordinance.

"As of now, we will not be operating within San Mateo County until we
figure out the whole issue of getting this form approved by the
county," Eric said.

Marijuana dispensaries on the coast have a sordid history: Since 1996,
when voters passed Proposition 215 to legalize medical marijuana, most
dispensaries in San Mateo County have shut down after being found in
violation of various county ordinances. Last summer, the county denied
a business license to a Moss Beach dispensary called Blue Heaven
Collective. That shop ran afoul of county regulators because it didn't
have security bars in its front windows and it was within 1,000 feet
of Moss Beach Park. Also, the collective's owner refused to divulge
patient information to the county, and officials say they thought it
was a for-profit business when the state requires dispensaries to be
nonprofits.

The county's Blue Heaven decision mirrors a trend throughout the Bay
Area. Cities including Half Moon Bay, Redwood City, South San
Francisco and Colma have set moratoriums on medical marijuana
dispensaries.

The federal government considers medical marijuana dispensaries
illegal, though there are conflicting state and local laws governing
them. San Mateo County applicants apply under a county ordinance and
ultimately are licensed by the county licensing board.

Approved in June 2009, the county's medical marijuana ordinance
defines a collective as a, "facility or location at which qualified
patients (and) persons with identification cards ... associate within
the unincorporated area of the county of San Mateo in order
collectively or cooperatively to cultivate and/or store marijuana for
medical purposes."

A delivery service - without a bricks-and-mortar location - may not
qualify, officials say.

The ordinance prohibits sales and requires collective cultivation,
meaning people that are members of the collective must participate and
not merely pay for marijuana.

"To qualify for a license, in addition to being subject to the
ordinance, they can't be selling for money, and they have to operate
like a collective," said Deputy County Counsel David Silberman.

"If all they're doing is delivering marijuana for money, that would
not appear to comply with our ordinance or state law for a collective.
Ultimately, to fairly evaluate an applicant, they have to apply."

Silberman said no new applications have come through the county's
office.

County counsel would have to review Herbal Empathy's application
before making any determination, but Silberman recalled two recent
applicants pursuing a delivery model who were denied their licenses
because the principals were felons.

Word that the county might not be satisfied with the legality of the
operation has given pause to Herbal Empathy owners. The men launching
Herbal Empathy say they are trying to bring a level of professionalism
to their new venture in order to quell the stigma that pot shops are
illicit.

"We're hoping to convey the legitimacy of the industry. Other
collectives on the Coastside never got off to a good start," said Eric.

To do this, Drew explained, the collective would emphasize research.
The health benefits of cannabis are numerous, he said. Herbal
Empathy's Web site, which was taken down early this week, detailed the
drug's influence on the nervous system and its stated effect on ailments.