Title
Subject: Low Law Enforcement Policy towards Medical Cannabis
From: Office of the City Manager
Recommendation: Approve Recommendations regarding conditions to fall under the City's Low Law Enforcement Policy towards Medical Cannabis and to select one medical cannabis provider association to administer the City's Medical Cannabis Distribution Program
Body
RE- A REPORT FROM THE CITY MANAGER REGARDING
CONDITIONS TO FALL UNDER THE CITY'S LOW LAW
ENFORCEMENT POLICY TOWARDS MEDICAL CANNABIS
AND RECOMMENDATION TO SELECT ONE MEDICAL
CANNABIS PROVII)ER ASSOCIATION TO ADMINISTER
THE CITY'S MEDICAL CANNABIS DISTRIBUTION PROGRAM
SUMMARY
In November 1996, the voters of the State of California passed Proposition 215, the
Compassionate Use Act of 1996, to "ensure that seriously ill Californians have the fight
to obtain and use cannabis (marijuana) for medical purposes. The City Council found
that medical cannabis helped alleviate pain and discomfort in people suffering from a
variety of illness including AIDS, cancer, glaucoma, and multiple sclerosis when no other
medications have been effective. In March 1996, the Council passed Resolution No.
72516 C.M. S. endorsing H.R. 2618 which allowed physicians to prescribe medical
cannabis for medical purposes, insured the production of cannabis to meet the need for
medical use, supported the Oakland Cannabis Buyer's Club, and declared that the
investigation and arrest of individuals involved with the medical use of cannabis shall be
a low priority for the City of Oakland. In June 1997, the Council passed Resolution No.
73555 C.M. S. declaring that the investigation and arrest of individuals involved in the
cultivation, manufacture, and/or transportation of medical cannabis products shall be a
low priority for the City of Oakland.
In July 2000, the Oakland Police Department created a memorandum detailing the City's
low law enforcement policy regarding medical cannabis. On July 28, 1998, the Council
passed Chapter 8.46 of the Oakland Municipal Code pertaining to medical cannabis.
This chapter was passed to recognize and protect the fights of qualified patients, their
primary caregivers, physicians, and medical cannabis provider associations, and to ensure
access to safe and affordable medical cannabis pursuant to the Compassionate Use Act of
1996. In support of this purpose, the City of Oakland further recognized that a medical
cannabis provider association (as defined therein) might provide educational information
concerning access to safe, affordable, and lawful medical cannabis, and also distribute
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Public Safety Committee
September 23, 2003
Deborah Edgerly
September 23, 2003 2
safe and affordable medical cannabis. Pursuant to Chapter 8.46 of the Oakland
Municipal Code, the City of Oakland formally designated the Oakland Cannabis Buyers'
Cooperative to adniinister the City's Medical Cannabis Distribution Program in August
1998. Conditions were attached to the City's designation pertaining to indemnification,
insurance, audit, standard of performance, inspection, payment of income taxes, business
tax certificate, non-discrimination policy, independent contractor, notice to the City
regarding any changes in procedures or cooperative members, assignment, and the fight
to revoke the designation based on the City's sole judgment and discretion.
Subsequently, the Oakland Cannabis Buyers' Cooperative ceased its administration of the
City's Medical Cannabis Distribution Program pursuant to legal action initiated by
federal authorities. During the last three years, several new organizations or entities have
been distributing medical cannabis in the City of Oakland. None of these organizations
have obtained a designation from the City to administer the City's Medical Cannabis
Distribution Program.
Staff has created conditions similar to those originally imposed on the Oakland Cannabis
Buyers' Cooperative that a medical cannabis provider association must meet in order to
fall under the City's low law enforcement policy pertaining to medical cannabis (Exhibit
A). Staff recommends that one medical cannabis provider association be selected to
administer the City's Medical Cannabis Distribution Projuarn. The City Manager will
select the medical provider association within 30 days of Council's approval of this
recommendation.
FISCAL EWPACT
As the medical cannabis provider association must be a cooperative or non-pi-ofit entity,
it is not anticipated that the City will receive any revenues from the administration of the
City's Medical Cannabis Distribution Program. The medical cannabis provider
association will be required to maintain a business tax certificate.
BACKGROUND
Reflected in the above Summary is the legislative history of action taken by the State of
California and City of Oakland to ensure that qualified patients and their primary
caregivers have access to safe and affordable medical cannabis. Currently, there are in
excess of eight (8) organizations in the City of Oakland distributing medical cannabis.
These organizations are operating their medical cannabis distribution program for profit
and without any administrative oversight by the City. Chapter 8.46 of the Oakland
Municipal Code establishes a Medical Cannabis Distribution Program that shall be
administered by the medical cannabis provider association designated by the City
Manager.
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Public Safety Committee
September 23, 2003
Deborah Edgerly
September 23, 2003 3
Distribution Program. Further several conditions were attached to this designation to
ensure that the medical provider association carried out its duties consistent with Chapter
8.46 and other applicable chapters of the Oakland Municipal Code and the Oakland
Planning Code. The Oakland Cannabis Buyers' Cooperative ceased its administration of
the City's Medical Cannabis Distribution Program three years ago due to legal action
initiated by federal authorities.
To ensure that the requirements of Chapter 8.46 are met, it is necessary that the City have
adininistrative oversight of the cooperative administering its Medical Cannabis
Distribution Program. The selection of one medical cannabis provider association would
facilitate oversight and compliance, and meet the demand of qualified medical cannabis
patients and their primary caregivers.
SUSTAIINABLE OPPORTUNITIES
It is anticipated that a mild economic boost will occur as the selected medical cannabis
provider association will hire several persons to assist in the administration of the City's
Medical Cannabis Distribution Program. The selection of a medical cannabis provider
association to adniinister the City's Medical Cannabis Distribution Program will make
sure that qualified patients and their primary caregivers have access to safe and
affordable medical cannabis.
DISABILITY AND SENIOR CITIZEN ACCESS
The selected medical cannabis provider association to administer the City's Medical
Cannabis Distribution Program must comply with the Americans with Disability Act
(ADA). This is one of the conditions reflected in Exhibit A.
RECOMMENDATION AND RATIONALE
RECOMIMENDATION: Staff recommends that one medical cannabis provider
association be selected to administer the City's Medical Cannabis Distribution Program
established in Chapter 8.46 of the Oakland Municipal Code.
RATIONALE: After the passage of the Compassionate Use Act of 1996, the City passed
Chapter 8.46 of the Oakland Municipal Code pertaining to medical cannabis. Section
8.46.030 established a Medical Cannabis Distribution Program that shall be administered
by the medical cannabis provider association designated by the City Manager. Pursuant
to the authority given in Chapter 8.46, the City Manager designated the Oakland
Cannabis Buyers' Cooperative to administer the City's Medical Cannabis Distribution
Program. The Oakland Cannabis Buyers' Cooperative administered the City's Medical
Cannabis Distribution Program for several years until federal action ceased their
operation. Duringthelastthreeyears,therehasbeenaproliferationofmedicalcannabis
provider associations in the City of Oakland that are unregulated. It
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Public Safety Committee
September 23, 2003
Deborah Edgerly
September 23, 2003 4
Staff does not see the need for more than one medical cannabis provider association to
meet the demand of qualified patients and their primary caregivers for medical cannabis.
Additionally, the City does not have the personnel to conduct administrative oversight
over more than one medical cannabis provider association.
ACTION REQUESTED OF THE CITY COUNCIL
Staff recommends that the City Council accept this report and the recommendation to
select one medical cannabis provider association to administer the City's Medical
Cannabis Distribution Program.
Respectfully submitted,
)c4l
LARJY
Prep
Adm ffi cer
City Manager's Office
Exhibit A: Medical Cannabis Provider Association Conditions to Fall Under the
City's Low Law Enforcement Policy for Medical Cannabis
APPROVED AND FORWARDED TO THE
PUBLIC SAFETY COMAHTTEE:
OFFICE OF THE CITY M*NA11ER
Item:
Public Safety Committee
September 23, 2003
ATTACHMENT
MEDICAL CANNABIS PROVIDER ASSOCIATION CONDITIONS
TO FALL UNDER THE CITY'S LOW LAW ENFORCEMENT POLICY
DEFINITIONS
A. Medical Cannabis Provider Association: Medical cannabis provider association
means a cooperative, affiliation, association, or collective of persons who are
qualified patients or primaU caregivers, the main purpose of which is to provide
education, referral, or network services, and to facilitate or assist in the lawful
production, acquisition, and distribution of medical cannabis.
B- Qualified Patient: Qualified patient means a person who obtains a written or oral
recommendation or approval from a physician to use cannabis for personal
medical purposes.
C. Primary Caregiver: Primary caregiver means the person or persons designated by
a qualified patient who have consistently assumed responsibility for the housing,
health, or safety of that qualified patient.
CONDITIONS
A. Insurance: Medical cannabis provider association shall procure and keep in force
for the duration of its existence, at medical cannabis provider association's own
cost and expense, liability insurance in amount of $2,000,000.00.
B. Indemnification: The Medical Cannabis Provider Association agrees to save,
indemnify, defend and hold harmless, the City, its Council Members, directors,
officers, agents, and employees from any and all claims, losses and expenses
(including reasonable attorney fees) or liability on account of damage of property
or injury to or death of persons accruing or resulting to Medical Cannabis
Provider Association, Medical Cannabis Provider Association's directors, agents,
employees, contractors, material persons, laborers and any other person, firm or
corporation furnishing or supplying work, services, materials or supplies in
connection with the Medical Cannabis Provider Association activities; and from
any and all claims and losses accruing or resulting to any person, firm or
corporation who may be injured or damaged in the connection with the Medical
Cannabis Provider Association's activities.
C. Audit: Medical Cannabis Provider Association shall permit the City and its
authorized representatives to have access to Medical Cannabis Provider
Association's books, records, accounts, and any and all data relevant to its
medical cannabis activities, for the purpose of making an audit or examination.
Any audit or exam@ination shall be deemed privileged and confidential in
accordance with Section 6 of Chapter 8.46 of the Oakland Municipal Code. All
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Public Safety Committee
September 23, 2003
Medical Cannabis Provider Association Conditions to Fall Under the City's Low
Law Enforcement Policy Priority Policy Page 2 of 4
such audits shall be carried out by appropriate personnel (e.g. physicians, nurses,
accountants, bookkeepers and auditors) for the sole purpose of determining the
Medical Provider Association's compliance with the conditions to fall under the
City's Low Priority Policy.
D. Reports. Information: Medical Cannabis Provider Association shall provide all
reports and information reasonably requested by the City and shall immediately
advise the City Manager of any complaints communicated to Medical Cannabis
Provider Association, its directors, agents and/or employees and of any contacts
by law enforcement personnel or agencies.
E. Access to Premises, Invento[y. Supplies, Et .: Medical Cannabis Provider
Association shall provide the City Manager, or a member of his/her staff, or a
designated person, access to the premises of its operation for the purpose of
inspections, quality control investigations and monitoring with or without notice
during normal hours of operation.
F. Payment of Income Taxes: Medical Cannabis Provider Association shall be
responsible for paying, when due, all income taxes, including estimated taxes,
incurred as a result of it medical cannabis activities. Medical Cannabis Provider
Association agrees to indemnify the City for all claims, costs, losses, fees,
penalties, interest or damages suffered by the City resulting from its failure to
comply with this condition.
G. Non-discrimination: Medical Cannabis Provider Association shall not
discriminate or permit discrimination against any person or group of persons in
any manner prohibited by federal, state or local laws. Medical Cannabis Provider
Association shall not discriminate against any employee, applicant, patient,
primary caregiver, contractor, supplier, or other person supplying goods or
services because of gender, sexual orientation, race, creed, color, national origin,
Acquired-Immune Deficiency Syndrome (AIDS), AIDS-Related Complex, or
disability.
H. Business Tax Certificate: Medical Cannabis Provider Association shall obtain
and maintain a valid City business tax certificate.
1. Facility Approval : Medical Cannabis Provider Association shall obtain approval
for its facility fi7om the City's Building Inspector, Electrical Inspector, Plumbing
inspector, Fire Marshal, Zoning Division, and Alameda County's Health
Department.
J. Compliance with Americans with Disability Ac : Medical Cannabis Provider
Association's facility shall comply with all provisions of the Americans with
Disability Act.
K. Independent Contractor: It is expressly understood that the Medical Cannabis
Provider Association in administering its cannabis activities is not an employee of
the City and is an independent contractor. Medical Cannabis Provider
Association has and shall retain the fight to exercise full control and supervision
over the employment, direction, compensation, and discharge of all persons
assisting Medical Cannabis Provider Association in the administering of its
cannabis activities and shall be solely responsible for all matters relating to the
payment of its employees, including compliance with social security, withholding
Medical Cannabis Provider Association Conditions to Fall Under the City's Low
Law Enforcement Policy Priority Policy Page 3 of 4
and all other regulations governing such matters, and shall be solely responsible
for its own acts and those of its subordinates and employees.
L. Background Investigation of Employees: Medical Cannabis Provider Association
shall conduct background investigations of employees to ensure that no persons
with criminal convictions are hired as employees.
M. Operating Hour : Medical Cannabis Provider Association shall comply with the
following operating hours: Monday-Saturday, 7:00 a.m. to 8:00 p.m.
N. Oualified Patient : Medical Cannabis Provider Associations must verify all
qualified patients by confirming with the medical doctors their recommendation
of persons to use cannabis for personal medical purposes, and issuing an
identification card to each qualified patient.
0. Prim4a Caregivers: Medical Cannabis Provider Association shall verify the
status of primary caregivers with the qualified patient, and have the caregiver
complete a caregiver certificate form (provided by the Medical Cannabis Provider
Association). In order for the caregiver to gain access to the Medical Cannabis
Provider Association's facility, the qualified patient must place a phone call to the
Medical Cannabis Provider Association verifying that he/she is sending histher
caregiver. The qualified patient also must send a written note stating the specific
nature of his/her needs, how much medical cannabis is needed, and provide
his/her member identification. The caregiver must have valid identification such
as a California identification card or driver's license. Upon verification of
primary caregivers, the Medical Cannabis Provider Association may issue valid
identification cards.
P. Securit : Medical Cannabis Provider Association shall have at least one (1) state
licensed security personnel on site during operating hours. The Medical Cannabis
Provider Association shall make sure that adequate security is available during
operating hours to monitor and control qualified patients, primary caregivers, and
any other persons present at the facility.
Q. Loitering and Litterin : Medical Cannabis Provider Association shall take action,
if necessary, to ensure that no persons loiter and litter about the facility. Signs
shall be posted in a clear, sufficient, and conspicuous manner informing persons
to not loiter and litter outside of the facility.
R. Noise Nuisance: Medical Cannabis Provider Association shall inform all
qualified patients, primary caregivers, and other persons appearing at the facility
no to make loud and excessive noises that disturb the peace and quiet of the
general public or neighboring tenants or businesses. Medical Cannabis Provider
Association shall take immediate action to abate any noise nuisances created by
qualified patients or primary caregivers or other persons appearing at the facility.
S. Quality Assurance Program: Medical Cannabis Provider Association shall
inspect cannabis flowers bought into its facility for molds and abnormal
growth/smells, and ask question regarding the methods and chemicals used during
cultivation to ensure that only good quality cannabis is provided to its patients.
Further Medical Cannabis Provider Association shall inspect every facility fi7om
which gets cannabis. The following things should be looked for during the
inspection: 1) What type of insecticide is being used for pest control measures, 2)
Medical Cannabis Provider Association Conditions to Fall Under the City's Low
Law Enforcement Policy Priority Policy Page 4 of 4
Other chemicals being used for growing plants, and 3) How clean is the facility,
and are there any fire, health or safety hazards.
T. VisitationLimitS7QualifiedpatientsorprimarycaregiversmayvisittheMedicaI
Cannabis Provider Association's facility once per day.
U. Who Can Make Medical Cannabis Purchases: Qualified patients or primary
caregivers are prohibited from making purchases for persons who are not
members of the Medical Cannabis Provider Association.
V. Medical Cannabis Pick-Ups by PrimaU Caregivers: Qualified patient members
who wish to have their Primary Caregiver pick up medical cannabis for them
must make arrangements in advance and comply with condition number L above.
W. UnderthelnfluenceoflilicitDrujzsorA]cohol: QualifiedPatientsandPrimary
Caregivers are prohibited from being under the influence of illicit drugs or alcohol
inside of the Medical Cannabis Provider Association's facility. Qualified Patients
and Primary Caregivers found to be under the influence of illicit drugs or alcohol
will not be served and asked to leave the facility.
X. Limit of Medical Cannabis Purchased: The procurement of cannabis is limited to
114 ounce (7 grams) per day, unless the member lives outside of the Bay Area and
makes more than one visit to the Medical Cannabis Provider Association per
week.
Y. Smokefi-ee Facility: Qualified Patients shall not smoke inside of the Medical
Cannabis Provider Association's facility. Medical Cannabis Provider Association
shall post signs in a clear, sufficient, and conspicuous manner inside of the facility
stating, "No Smoking Allowed."
Z. Loitering by Friends Outside: Members should discourage friends from waiting
for them immediately outside of the front door of the Medical Cannabis Provider
Association's facility to help in the abatement of loitering.
The above conditions may be revised by the City Manager at his/her discretion. Medical
Cannabis Provider Associations that are not in compliance with the above conditions do
no fall under the City's Low Priority Policy, and should cease its operations immediately.
Enforcement action will be taken against Medical Cannabis Provider Associations not in
compliance with the above conditions pertaining to the City's Low Priority Policy.
Item;v
Public Safety Com
mittee
ScPtember 23, 2003