SCOTTSDALE REVISITING ITS MEDICAL-MARIJUANA RULES

Scottsdale is updating its rules on medical marijuana despite a halt
of the statewide regulatory process.

As Arizona continues to grapple with the legality of its
voter-approved law, Scottsdale has suggested changes to its ordinance
governing marijuana dispensaries and other uses, including smaller
"caregiver cultivation" operations.

Arizona voters approved Proposition 203 in November permitting
medical-marijuana use.

The program is on hold pending clarification as to whether the public
employees who implement Arizona's law risk federal
prosecution.

Arizona and other states have medical-marijuana laws that contradict
federal drug laws, which prohibit the cultivation, sale or use of
marijuana. The state has placed a hold on processing registration for
dispensaries, including dispensary cultivation and processing.
Patients and caregivers are still allowed to grow their own.

The state has approved more than 480 caregiver applications, which
allow a person to grow marijuana for up to five patients.

Cities and towns can restrict where caregivers locate their
cultivation sites. Scottsdale requires them to obtain a
conditional-use permit and operate within the city's industrial park
zoning district, which includes office and warehouse space. Some have
complained that the rules are too restrictive.

The city has heard no cases for medical-marijuana caregiver
facilities. More than 10 conditional-use permits have been approved
for medical-marijuana dispensaries. Only two would be eligible for a
state-awarded dispensary license.

City planner Greg Bloemberg said Scottsdale is updating its ordinance
after hearing suggestions from the community. The City Council would
also have to approve the changes.

"We had to put the ordinance together very quickly," he said. "We kind
of figured we would have to revisit it."

It was unclear whether dispensaries with permits would need to reapply
if their plans conflict with the updated rules.

Residents can comment on proposed regulations during an open house
from 5 to 7:30 p.m. Monday at the Scottsdale Airport, 15000 N. Airport
Drive.

Among the city's suggestions are:

- - Including more residential zones in the separation requirements for
medical-marijuana uses.

- - Clarifying what types of schools the city would protect.

- - Considering doing away with a separation requirement of 1,230 feet
between medical-marijuana uses.

- - Revisiting rules governing caregivers, who can cultivate up to 60
plants, or 12 per patient.

Scottsdale does not regulate so-called head shops, which sell items
used to smoke marijuana, and training centers, which teach
medical-marijuana growing skills.

People have questioned whether these retail stores should be
allowed.

Ryan Hurley, an attorney at the Rose Law Group who represents
medical-marijuana clients, said "it is not surprising" the city is
revisiting the rules.

If Scottsdale tried to retroactively enforce the changes, "we're
certainly going to argue that this is a right guaranteed for out
clients," said Hurley, co-chair of Rose Law's medical-marijuana
practice group.

Hurley said some people have voiced concerns about the lack of
required separation between churches and dispensaries. The city does
not require a distance between the two.

Rich Larsen, who obtained a use permit for a dispensary in
Scottsdale,said he was not contacted by the city. He wondered if his
operation would have to reapply.

"It's not that difficult to contact us," said Larsen, of Scottsdale
Homegrown Remedies. "I don't know if it's an oversight, or if they're
trying to do something with the doors closed, but it's not something I
feel strongly enough to fight about."

It's a "learning process," said Joel Colley, medical director of the
non-profit OF&C Corp., which successfully submitted an application for
the first conditional-use permit for a dispensary in Scottsdale.

"Something like this is very unsure as you get into it," said Colley,
of the Virtue Center. "Therefore, you have to keep an open mind and
realize people have different concerns."