Should States Establish Dispensaries to distribute Medical Marijuana?

1. Diane Hoffmann University of Maryland Francis King Carey School of Law April 13, 2012 Should States Establish Dispensaries to distribute Medical Marijuana?

2. Variation of State Medical Marijuana Laws

3. California’s Law Proposition 215 approved November 5, 1996 by 56% of voters

4. California’s Legal Environment

5. Los Angeles • In 2007, the City Council adopted a moratorium on new dispensaries. • 2009 – 500 to 1,000 dispensaries in city. • In 2010, city limited number of dispensaries to 70 with specific requirements: • prohibited from locating next to a residential area or within 1000 feet of a school, park library or other dispensary

6. Los Angeles • Other provisions of January 2010 regulations: • Limit hours of operation • Require dispensaries to install web based closed circuit cameras to monitor the premises • Require dispensaries to provide a uniformed security guard patrol for a two block radius surrounding the dispensary during operating hours.

7. As of January 2011

8. Pack v. City of Long Beach The court held that the city’s ordinance, which permits dispensaries selected by lottery and regulates them, rather than merely decriminalizing specific acts, is preempted by federal law.

9. City of Riverside v. Inland Empire Patient’s Health and Wellness Center, Inc Court ruled that local governments may ban medical marijuana dispensaries and that such a ban was not preempted by state law.

10. Lake Forest v. Evergreen Court ruled that local governments may not prohibit medical marijuana dispensaries altogether, but that such dispensaries can only dispense marijuana that is cultivated on site. Pictre?

11. Colorado Between Jan. 2009 and Jan. 2010 Colorado experienced an 871% increase in registrants. By March 2011, Colorado reported 127,816 registrants.

12. Colorado Dispensaries and Infused Products Manufacturers By License Type Red - Center Type 1 (<300 patients) Blue - Infused Product Manufacturer Yellow - Center Type 2 (301-500 patients) Green - Center Type 3 (501+ patients) Source: DenverPost.com September 29, 2011

13. “What had been considered the healthiest state in the country rapidly became one of the sickest.”

14. Montana • Billings City Council approved temporary moratorium on new marijuana storefronts. • Kalispell City Council banned new medical marijuana stores following attack.

15. State Restrictions on Number • Sets Maximum # to be licensed by state • DC permits 5 • DE would allow 3 for the first year; more after that if needed • ME – 1 for each of the 8 public health districts in the first year; may be amended by state after first year • NJ – 6 to start, two in each of the north, central and southern portions of the state • AZ – 10% of pharmacies (Approx. 125) Source: flickr, Roebot

16. Patient Education Requirements New Jersey sets: • Limitations on the right to possess and use marijuana pursuant to the state law • Potential side effects of marijuana use • Differing strengths of products dispensed • Safe techniques for use • Alternative methods and forms of consumption or inhalation • Signs and symptoms of substance abuse • Opportunities to participate in substance abuse programs • Information on tolerance, dependence and withdrawal Source: flickr, Venice Beach House

17. Additional Requirements • Establish limits on amount that may be dispensed over a certain time period, • Require that dispensary must be not for profit • Require that dispensary must not be located close to a school (300 – 1,000 ft.) • Require that dispensary have an operations manual • Require that dispensary must develop policies for training in and adherence to state medical confidentiality laws Source: flickr, DJ Crazy Gabe

18. Additional State and Local Requirements: Operations • Require business records to be maintained • Require dispensary keep record of each sale • Create limits on what infused product manufacturers can produce • Require food establishment license if infused products manufacturer • Require good manufacturing practices Source: flickr, Caveman Chuck Coker

19. Pushback by Dept. of Justice • Numerous letters to governors in states that have decriminalized marijuana from regional US Attorneys • Letters state that licensing schemes for the establishment of dispensaries or grow houses are illegal under CSA • DoJ will consider civil and criminal legal penalties against those involved in such schemes and those engaging in such activities

20. Relationship to Crime • MDs in operation may have reduced crime by providing additional on-site security. • Operating MDs may reduce crime by increasing local foot traffic and “eyes on the street.” • To the extent that illicit suppliers try to move in to fill the new void, this could generate other crime. • Greater police presence in areas where MDs are operating • Police leave area after dispensary closes Source: RAND Report Source: flickr, adamjackson1984

21. Questions About Dispensaries: • Is it better to have the state establish licensed dispensaries to distribute medical marijuana or to allow individuals to grow their own? • If the state licenses dispensaries how should it determine the appropriate number and size of dispensaries to allow to operate in the state? • What are important regulations of dispensaries to have in place from a public health/public safety perspective? • What data would you want to draw on in addition to crime statistics in the area where the dispensaries are located to establish whether various regulations are having a good or bad impact on public health/safety?