SANTA CLARA VS. MEDICAL MARIJUANA PART 2

With an injunction hearing scheduled for January 24, the City of
Santa Clara is attempting to shut down Angel's Care Collective, a
popular medical marijuana dispensary located on Laurelwood Avenue.

Due to several zoning and code violations against Angel's Care and
allegedly over $100,000 in unpaid fines, the injunction order was
filed against Angel's Care by the City on December 8, 2011 in Santa
Clara County Superior Court.

City Adopts Ordinance Prohibiting Medical Marijuana Dispensaries

At the August 16, 2011 City Council meeting, the Council adopted an
ordinance (Ordinance No. 1888, resolution No. 11-7876) amending the
zoning code to prohibit medical marijuana dispensaries (MMD).

The agenda report for the Council action, prepared by then Interim
City Attorney Elizabeth Silver stated, "the advantage to adopting
this ordinance include no possibility of illegal activity at MMDs,
including profit-oriented dispensaries; no secondary negative social
impacts that could arise the ability to obtain marijuana in the City;
no land use compatibility issues between MMDs and surrounding uses
and businesses; and no complicated and potentially-expensive
enforcement efforts."

The ordinance was approved by a 5-2 vote, with Council members Jamie
McCleod and Will Kennedy dissenting. Prior to adopting the ordinance,
the City had a moratorium on medical marijuana dispensaries and
related facilities in place since November 2009. The ordinance
prohibits medical marijuana dispensaries, as defined in SCCC
18.06.010 in all zoning districts in the City.

In addition to citations issued to Angel's Care, fines were also
issued to East Coast Collective along with a request to cease
operations, according to Deputy City Manager Carol McCarthy. East
Coast Collective was cited four times for $500 each time, prior to
closing in December 2009. Other marijuana collectives, including The
Jade Leaf and Santa Clara Collective, were believed to have been
operating in Santa Clara at one time. Apparently both voluntarily
closed when they were informed that they were in violation and would
be cited by the City.

Angel's Care Executive Director Douglas Carter claims Angel's Care is
a legitimate business, and that he offered the City ample
notification of the type of business he would be running, well in
advance of opening. He states Angel's Care will be appealing the injunction.

"No one leaves our place of business intoxicated, there is no onsite
consumption and that is my rule not the City's. We don't trade money
or weed for flesh. Hundreds of thousands of people die each year of
alcohol-related illnesses, diseases and complications. Thousands die
of AIDS every year. There is not one documented case where cannabis
caused a death," states Carter.

Looking Back - What Carter Wrote to the City in February 2009

"I am planning to open a medical cannabis dispensary in your area.
This is a Legal organization that provides medical marijuana to those
who are entitled to have it under California law. California voters
overwhelming adopted Proposition 215 in 1996. Since then, support for
Medical Cannabis has grown state wide [sic]. Legitimate dispensaries
are regarded as an assets [sic] to their Community. They serve people
that suffer from Aids [sic], Cancer, Multiple Sclerosis, Glaucoma,
Chronic pain and other serious illnesses. We will be working closely
with Doctors and Clinics in your community to provide these needs,"
stated Carter in a February 2009 letter to the City.

Angel's Care Files an Initiative to Adopt an Ordinance Permitting
Medical Marijuana Dispensaries in Santa Clara

Angel's Care recently filed an initiative that would add Chapter
5.46, entitled Medical Marijuana, to the City Code of the City of
Santa Clara, that "would allow medical marijuana dispensaries to
operate in the commercial, agricultural and light industrial zoning
districts of the City without permit and would allow dispensaries in
all other non-residential districts within 1,000 feet of an existing
retail use."

The initiative's purpose is "implementing the Compassionate Use Act
of 1996 and the Medical Marijuana Program Act." The initiative would
establish standards for medical marijuana.