See Also: Index of all Measures

Summary Prepared by the Ballot Simplification Committee:

THE ISSUE:
Shall the City of Los Angeles limit the number of "medical marijuana businesses" to no more than 135 that operated since September 2007, previously registered with the City, and continue to meet other requirements and operational standards?

THE SITUATION:
There has been a proliferation of medical marijuana establishments citywide. Regulations governing their number, location, and operation may protect residents, businesses, and patients from potential adverse impacts.

THE PROPOSAL:
This measure regulates by banning "medical marijuana businesses" while granting immunity from the ban to those businesses that operated since September 2007, previously registered with the City, and continue to meet other requirements and operational standards.

This measure exempts from City regulation dwelling units where three (3) or fewer patients and/or caregivers cultivate medical marijuana on-site for themselves or their patients. It also exempts licensed health care facilities and locations/vehicles during the time they are used to deliver medical marijuana to a qualified patient.

This measure would increase the City tax on these businesses from $50.00 to $60.00 for each $1,000 of gross receipts.

A YES VOTE MEANS:
You want to regulate "medical marijuana businesses" by allowing the continued operation of no more than 135 "medical marijuana businesses" that have operated since September 2007, previously registered with the City, and meet other requirements and operational standards. You also want to increase the City tax on these businesses from $50.00 to $60.00 for each $1,000 of gross receipts.

A NO VOTE MEANS:
You do not want to regulate "medical marijuana businesses" by allowing the continued operation of no more than 135 "medical marijuana businesses" that have operated since September 2007, previously registered with the City, and meet other requirements and operational standards. You do not want to increase the City tax on these businesses from $50.00 to $60.00 for each $1,000 of gross receipts.

Fiscal Impact from Miguel A. Santana City Administrative Officer:

This measure will reduce the number of Medical Marijuana Businesses (MMBs) operating in the City by restricting and regulating the number of MMBs to those operating since September 2007. It also will increase the business tax rate paid by MMBs from $50 per each $1000 in gross receipts to $60 per each $1000 of gross receipts.

The impact of this measure cannot be quantified. The City received $2.5 million in business taxes from MMBs in 2012. Any revenue loss from the decrease in MMBs may be offset by the increase in the tax rate and the possible shift of business to the remaining MMBs. MMB business tax revenue is deposited in the General Fund and is used to fund police, fire, street services, parks, libraries and other general purposes throughout the City. Additional public safety and enforcement expenditures resulting from exemptions for dwelling units and health care facilities are unknown.

Impartial Analysis

This is the first of three competing ballot measures that propose to regulate medical marijuana in the City of Los Angeles. This measure is a proposition. The other two measures on the ballot are the result of an initiative petition process and submitted to a vote of the electorate.

This proposition would regulate "medical marijuana businesses" by banning such businesses, but then grant immunity from the ban to those businesses that have operated since September 2007, previously registered in accordance with three (3) of the City's earlier medical marijuana registration laws, and that comply with specified operational requirements. It defines a "medical marijuana business" as: (1) any location where marijuana is cultivated, processed, distributed, delivered, or given away to a qualified patient, a person with an identification card, or a primary caregiver; and (2) any vehicle or other mode of transportation, stationary or mobile, which is used to transport, distribute, deliver, or give away marijuana to a qualified patient, a person with an identification card, or a primary caregiver. The measure states that there are approximately 135 businesses that satisfy the three (3) earlier registration laws and that could qualify for immunity.

This measure would also increase the City taxes on "medical marijuana businesses" from $50.00 to $60.00 for each $1,000.00 of gross receipts.

The operational requirements of this proposition, which are conditions for receiving immunity and enforceable as misdemeanors if violated, include: generally has not ceased operations, passes annual background checks, is separated from residential zones, maintains a 1,000-foot distance from schools and a 600-foot distance from parks, child care facilities and other designated places, and other requirements. The proposition requires a 600-foot distance separation between medical marijuana businesses.

This proposition would exempt from City regulation any dwelling unit where three (3) or fewer qualified patients, persons with an identification card, and/or primary caregivers process or cultivate marijuana on-site for their own personal medical use or for the personal medical use of their qualified patients. The measure would also exempt licensed health care facilities and both locations and vehicles during the time they are used to deliver medical marijuana to a qualified patient.

If any or all of the three competing measures are approved by a majority of voters, only the one ballot measure that receives the most votes will become effective.