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Los Angeles County, CA May 21, 2013 Election
Proposition D
Medical Marijuana Regulation and Taxation
City of Los Angeles

Ordinance - Majority Approval Required
Unofficial Results as of: 05/22/2013 2:59:42 AM

Pass: 193,969 / 62.6% Yes votes ...... 116,024 / 37.4% No votes

See Also: Index of all Measures

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

Shall an ordinance regulating businesses where marijuana is cultivated, processed, distributed, delivered or given away to qualified patients or primary caregivers (MMBs) by: (1) prohibiting MMBs but providing limited immunity for MMBs that operated since September 2007, timely registered with the City, generally have not ceased operations, pay City taxes, pass annual background checks, are separated from residential zones, maintain certain distances from schools, parks, child care facilities, other designated places and other MMBs, and meet other requirements and operational standards; (2) exempting dwelling units used by three or fewer patients/caregivers to cultivate medical marijuana on-site for their patients or themselves, and other exemptions; and (3) increasing the MMB 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 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.

 
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Arguments For Proposition D Arguments Against Proposition D
Proposition D is the only measure regulating medical marijuana dispensaries which guarantees patients access to their medicine while regulating, controlling and taxing these establishments and protecting neighborhoods and communities.

There are three medical marijuana-related measures on the ballot, and it is important to know the differences and why Prop D is the one to vote for.

Prop D was drafted by the City of Los Angeles and put on the ballot by the City Council, and not by special interest groups. Prop D is supported by local elected and neighborhood leaders, patients, caregivers, and patient advocates.

Prop D is the only measure that will:

  • Provide that properly permitted patients have safe access to medical marijuana.
  • Control and regulate dispensaries, including where and when they operate.
  • Close dispensaries that are not following the law or are harming neighborhoods.
  • Raise taxes on dispensaries to pay for law enforcement, firefighters, parks, and libraries.

No other measure on the ballot accomplishes these goals. Prop D:
  • Reduces the number of dispensaries and limits legal dispensaries to approximately 135 (down from the estimated 1,600 that now exist), limits licenses to those dispensaries in continuous operation since 2007 and are at least 1,000 feet from schools and 600 feet from libraries, parks, and places of religious worship.
  • Requires background checks on dispensary employees.
  • Increases funding for public safety and enforcement.
  • Raises taxes on dispensary sales by 20%, generating a likelihood of millions of dollars in new revenue to the City.

Prop D is the only measure on the ballot supported by leading patient advocates, neighborhood leaders, and city leaders.

Prop D is the only measure that can provide for safe access to medical marijuana for the genuinely ill while also protecting our neighborhoods and schools and generating increased funds for our City.

VOTE YES ON PROPOSITION D!

BILL ROSENDAHL, Councilmember, L.A. City Council

GIL GARCETTI, Former Los Angeles County District Attorney

RIGOBERTO VALDEZ, JR., President, Citizens' Coalition to Protect Patients and Neighborhoods

RICARDO F. ICAZA, President, United Food and Commercial Workers, Local 770

WILLIAM RUSBOSIN, AIDS Patient

LAVANZA BUTLER, RPH, Registered Pharmacist

PAUL KORETZ, Councilmember, L.A. City Council

Rebuttal to Arguments For
Vote NO on Proposition D This proposition will increase the proliferation of illegal pot shops across Los Angeles. It won't overturn Federal law which prohibits the sale or possession of marijuana for any reason. This proposition will only protect the untold millions of illegal cash profits made by illegal pot shop owners at the expense of our communities. The continued operation of illegal pot shops only creates the potential for increased blight, robberies and even homicide. Law enforcement needs every tool possible to keep our City safe. It will NOT provide additional revenue for Los Angeles. Medicine is not subject to tax. This proposition will place the City in endless litigation, diverting vital resources from core services. We all have sympathy for the seriously ill; however, this proposition does nothing to protect patients. Join law enforcement and community leaders across Los Angeles and Vote NO on D.

BERNARD C. PARKS, Councilmember, District 8, City of Los Angeles

MITCHELL ENGLANDER, Councilmember, District 12, City of Los Angeles

ROBERT RUBIN, Consultant

THEODORE THOMAS, President, Park Mesa Heights Community Council

PAULA CRACIUM, President, Porter Ranch Neighborhood Council

Vote NO on Proposition D This proposition will increase the proliferation of illegal pot shops across Los Angeles.

Nothing in D will overturn Federal law which prohibits the sale or possession of marijuana for any reason. This proposition will only protect the untold millions of illegal cash profits made by illegal pot shop owners at the expense of our communities.

Vote NO on Proposition D. It ties the hands of neighborhoods under siege by illegal pot shops. There are more illegal pot shops than ice cream stores in Los Angeles. The continued operation of illegal pot shops only creates the potential for increased blight, takeover robberies, and even homicides. Law enforcement needs every tool possible to keep our City safe.

Vote NO on Proposition D. It will NOT provide additional revenue for Los Angeles.

Medicine is not subject to tax. The pot shop owners have already sued the City to prevent taxation of their illegal businesses. This proposition will just place the City in endless litigation and divert vital resources from core services.

Vote NO on Proposition D. We all have sympathy for the seriously ill; however, this proposition does nothing to protect patients. California's 1996 Compassionate Use Act already protects patients and their caregivers from criminal prosecution.

Protect our communities from blight, illegal drug sales and violent crime. Join law enforcement and community leaders across Los Angeles and vote NO on D.

BERNARD C. PARKS, Councilmember, District 8, City of Los Angeles

MITCH ENGLANDER, Councilmember, District 12, City of Los Angeles

PAULA CRACIUM, President, Porter Ranch Neighborhood Council

EDWARD HEADINGTON, President, Granada Hills North Neighborhood Council

BETTYE BRYANT, Representative, Mid City Neighborhood Council Region 1

THEODORE THOMAS, President, Park Mesa Heights Community Council

ROBERT RUBIN, Consultant

Rebuttal to Arguments Against
The argument against Proposition D is plain wrong! Your City Attorney wrote and City Council passed Proposition D because it protects compassionate access to seriously ill citizens and places strict and enforceable limits on the number and locations of these dispensaries.

Proposition D gives the city the legal tools to close all illegal dispensaries.

Proposition D limits the number of dispensaries to 135 city wide.

Proposition D requires background checks on dispensary employees.

Proposition D, written by the City Attorney's office and approved by the City Council, imposes a sales tax that raises critical revenues for the city.

Proposition D establishes clear limits that keep approved dispensaries away from schools, parks, libraries, and churches.

Your vote for Proposition D protects genuinely ill patients' access to medical marijuana while giving police and community the resources they need to regulate and control the 135 city approved dispensaries.

BILL ROSENDAHL, Councilmember, L.A. City Council

BAKER MONTGOMERY, Member, Eagle Rock Neighborhood Council

RIGOBERTO VALDEZ, JR., President, Citizens' Coalition to Protect Patients and Neighborhoods

JOHN LAWLER, Member, Studio City Neighborhood Council

WILLIAM RUSBOSIN, AIDS Patient

LAVANZA BUTLER, RPH, Registered Pharmacist

GIL GARCETTI, Former Los Angeles County District Attorney

RICARDO F. ICAZA, President, United Food and Commercial Workers Local 770

PAUL KORETZ, Councilmember, L.A. City Council


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Created: July 8, 2013 11:51 PDT
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