The San Diego medical marijuana community is holding its collective breath as the city considers legal changes that would pave the way for dispensaries and lead to a revival of the local MMJ industry, which has been decimated in the past two years.
On Monday, the San Diego City Council will hear an ordinance put forth by Mayor Bob Filner that would allow dispensaries to operate in specific commercial and industrial areas. If the measure passes, dozens of dispensaries would likely open this year, and the city could eventually have 100 or more MMJ centers according to some estimates. That would create additional business opportunities for support companies and professionals, including lawyers, consultants, landlords, electricians and cultivation equipment suppliers.
Annual marijuana sales could hit $50 million once all dispensaries are up and running, according to MMJ Business Daily’s estimates, adding roughly $1 million to the city’s coffers. But the measure faces some opposition, and whether it will pass is anyone’s guess at this point.
Here are the key business-related highlights of the ordinance:
- Medical marijuana centers would have to meet a host of requirements tied to everything from security to signage.
-Dispensaries would have to fork over $5,000 each year in permit fees and pay a 2% annual excise tax on medical marijuana transactions.
-Centers would need to operate as nonprofits, meaning they could only accept “donations” from medical marijuana patients who have valid state-issued MMJ identification cards and also have submitted their doctor recommendations for cannabis to the California Department of Public Health’s central registry.
-Dispensaries would have to set up shop at least 600 feet away from schools, parks and childcare facilities and 1,000 feet from another MMJ center.
The move to change San Diego’s medical marijuana laws comes after a turbulent period that saw hundreds of dispensaries open rapidly several years ago and then close just as quickly after the city began a crackdown in 2011.
The Law Offices of Justin E. Sterling provides representation and advice to those seeking the protection of the Compassionate Use Act under the provisions of California's Proposition 215. We are educated on the many scientifically proven medicinal benefits of marijuana. Unfortunately, possession, sale, distribution, and transportation of marijuana remain illegal under federal law. In addition, judicial interpretations of state law continue to establish challenging obstacles for those desiring to operate legally.
We here, at the Law Offices of Justin E. Sterling, recognize that service providers operating under laws that decriminalize the use of marijuana require help getting through the maze of compliance issues. As such, we provide reliable compliance advice and assist our clients in navigating this constantly evolving area of the law. Our clients include medical marijuana collectives, dispensaries, and primary caregivers.
