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Smart Voter
Los Angeles County, CA May 21, 2013 Election
Ordinance F
Medical Marijuana Regulation and Taxation
City of Los Angeles

Initiative Ordinance - Majority Approval Required

See Also: Index of all Measures

Information shown below: Summary | Fiscal Impact | Impartial Analysis |

Shall an ordinance regulating associations of qualified patients and/or primary caregivers who cultivate, provide or engage in other activities related to marijuana for medical purposes (MMCs) by: (1) prohibiting MMCs but providing limited immunity for MMCs that register with the City (without limiting the number that can register but giving registration priority to those possessing City tax certificates by October 2012), generally have not ceased operations for more than 90 days, pass annual background checks, are separated from residential uses, maintain certain distances from schools, parks, child care facilities, other designated places and other MMCs, and meet other requirements and operational standards; (2) exempting dwellings zoned residential, and other exemptions; and (3) increasing the MMC tax to $60 per each $1,000 of gross receipts; be adopted?

Summary Prepared by the Ballot Simplification Committee:
THE ISSUE:
Shall the City of Los Angeles regulate "medical marijuana collectives" by requiring collectives to register with the City by complying with three periods of registration and meet other requirements and operational standards, without limiting the number of collectives that can register?

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 collectives" while granting immunity from the ban to those collectives that register with the City and meet other requirements and operational standards. The measure does not limit the number of collectives that can register and creates a registration priority system.

This measure exempts from City regulation dwelling units zoned exclusively for residential uses and not permitted for any commercial activity. It also exempts licensed health care facilities and vehicles or other modes oftransportation used to cultivate or distribute marijuana.

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 collectives" by requiring collectives to register with the City and meet other requirements and operational standards, without limiting the number of collectives that can register. 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 collectives" by requiring collectives to register with the City and meet other requirements and operational standards, without limiting the number of collectives that can register. 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 allow new Medical Marijuana Collectives (MMCs) to establish themselves in the City upon meeting specified requirements. It also will increase the business tax rate paid by MMCs 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 MMCs in 2012. The higher tax rate and the formation of new MMCs will likely increase revenue. Existing and new MMC business tax revenue will be deposited in the General Fund and will be used to fund police, fire, street services, parks, libraries and other general purposes throughout the City. Additional public safety and enforcement expenditures resulting from anticipated new MMCs and from exemptions for dwelling units and health care facilities are also unknown.

Impartial Analysis from
Gerry F. Miller
Chief Legislative Analyst
This is the third of three competing ballot measures that propose to regulate medical marijuana in the City of Los Angeles. One of the measures is a proposition. Two of the measures, including this one, are the result of an initiative petition process and submitted to a vote of the electorate.

This measure would regulate "medical marijuana collectives" by banning such collectives, but then grant immunity from the ban to any collective that registers with the City Clerk and complies with specified operational requirements. It would provide three periods for registration + the first open to collectives established by October 9, 2012, the second open to collectives established by October 20, 2012, and the third open to all other collectives. It defines a "medical marijuana collective" as any unincorporated or incorporated entity or association of qualified patients and/or primary caregivers and/or persons with identification cards, who provide money and in-kind contributions, reimbursements, and reasonable compensation towards the entity's actual expenses for activities including, but not limited to, planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, providing and/or retail sales of medical marijuana.

The measure would create operational standards, which are conditions for receiving immunity and enforceable as misdemeanors if violated, including: generally has not ceased operations for 90 days, passes annual background checks, is separated from residential uses, operates as a non-profit, limits compensation paid to its members, maintains a 1,000-foot distance from schools and a 500-foot distance from parks, child care facilities and other designated places, and other requirements. The initiative requires a 500-foot distance separation between collectives. This measure would also increase the City taxes on collectives from $50.00 to $60.00 for each $1,000.00 of its gross receipts.

This initiative would exempt from City regulation any legal dwelling zoned exclusively for residential use and not permitted for any commercial activity. The measure would also exempt licensed health care facilities and any vehicle or other mode of transportation, stationary or mobile, which is used to cultivate, distribute, process, administer, deliver, give away, or transport marijuana.

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.

 
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Created: April 12, 2013 10:55 PDT
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