For Long Beach's medical marijuana collectives, the city's new lottery system is going to cost them, win or lose. The losers, however, will really lose.
Under a fee schedule approved Tuesday by the City Council, collectives will have to pay a non-refundable application fee of $14,742. After that, all of the collectives that comply with the new medical marijuana regulations that the council approved in March will be put into a lottery to determine which ones can actually open or continue to exist.
The lottery is necessary because the new law doesn't allow collectives to be within 1,000 feet of each other. The lottery would determine which of the collectives that are too close to each other get to remain open.
That means that collectives could meet all of the stringent requirements of the ordinance and pay the application fee, yet still wouldn't be allowed to operate in Long Beach if they lose the lottery.
On top of the application fee, collectives would have to pay annual regulatory permit fees based on the number of patients or caregivers served by the collective. The permit fee would be paid after the lottery.
Collectives with four to 500 patients or caregivers would have to pay $10,000 annually; those with 501 to 1,000 members would pay $20,000; collectives with 1,001 to 1,500 members would pay $25,000; and those with 1,501 or more members would pay $30,000 per year.
About two dozen medical marijuana advocates, patients and collective
operators lined up at Tuesday's meeting to protest either the costly permit fees, the lottery system or both.
"The way this fee structure is currently set out is tantamount to a shake-down," said David Sharp, who operates Ballast Collective, 501 E. Broadway. "For small collectives like my own, these fees are exorbitant, and we're creating a situation where it's cost prohibitive."
Katherine Aldrich, who operates 562 Collective, 3970 Atlantic Ave., said the fees are much higher than those in other cities, such as Los Angeles, which charges a $1,200 application fee.
"These fees are only going to result in extra expenses for people who do not have money to spend," Aldrich said.
Director of Financial Management Lori Ann Farrell explained that the fees were established to cover city costs in the application process.
City officials have estimated that there are 75 to 85 medical marijuana collectives in Long Beach, but many are expected to close under the new law. In addition to creating 1,000-foot buffers between collectives, the law prohibits them in residential zones and from being within 1,500 feet of high schools and 1,000 feet of middle schools or elementary schools.
Three council members agreed with at least some of the medical marijuana crowd's concerns.
Council members Tonia Reyes Uranga, Rae Gabelich and Val Lerch voted against the fees and permitting process, but lost the vote 5-3. Councilman Robert Garcia was absent because he is out of the country.
Before that, Uranga, Gabelich and Lerch were the only council members to support a motion that combined suggestions by Gabelich and Lerch to waive fees for collectives with 10 members or fewer and to divide the application fee so that part of it could be paid after the lottery.
The proposal would have saved lottery losers at least part of the fee cost. Farrell told the council that the fee could be separated into a $12,530 pre-lottery cost and a $2,212 post-lottery cost.
"They don't have the right to have their application fee refunded," Gabelich said. "That's just wrong to me."
News Hawk: Warbux 420 MAGAZINE
Source: Press-Telegram
Author: Paul Eakins
Contact: Home - Press-Telegram
Copyright: 2010 Press-Telegram
Website: Council approves non-refundable application fees for Long Beach's medical marijuana dispensaries - Press-Telegram
Under a fee schedule approved Tuesday by the City Council, collectives will have to pay a non-refundable application fee of $14,742. After that, all of the collectives that comply with the new medical marijuana regulations that the council approved in March will be put into a lottery to determine which ones can actually open or continue to exist.
The lottery is necessary because the new law doesn't allow collectives to be within 1,000 feet of each other. The lottery would determine which of the collectives that are too close to each other get to remain open.
That means that collectives could meet all of the stringent requirements of the ordinance and pay the application fee, yet still wouldn't be allowed to operate in Long Beach if they lose the lottery.
On top of the application fee, collectives would have to pay annual regulatory permit fees based on the number of patients or caregivers served by the collective. The permit fee would be paid after the lottery.
Collectives with four to 500 patients or caregivers would have to pay $10,000 annually; those with 501 to 1,000 members would pay $20,000; collectives with 1,001 to 1,500 members would pay $25,000; and those with 1,501 or more members would pay $30,000 per year.
About two dozen medical marijuana advocates, patients and collective
operators lined up at Tuesday's meeting to protest either the costly permit fees, the lottery system or both.
"The way this fee structure is currently set out is tantamount to a shake-down," said David Sharp, who operates Ballast Collective, 501 E. Broadway. "For small collectives like my own, these fees are exorbitant, and we're creating a situation where it's cost prohibitive."
Katherine Aldrich, who operates 562 Collective, 3970 Atlantic Ave., said the fees are much higher than those in other cities, such as Los Angeles, which charges a $1,200 application fee.
"These fees are only going to result in extra expenses for people who do not have money to spend," Aldrich said.
Director of Financial Management Lori Ann Farrell explained that the fees were established to cover city costs in the application process.
City officials have estimated that there are 75 to 85 medical marijuana collectives in Long Beach, but many are expected to close under the new law. In addition to creating 1,000-foot buffers between collectives, the law prohibits them in residential zones and from being within 1,500 feet of high schools and 1,000 feet of middle schools or elementary schools.
Three council members agreed with at least some of the medical marijuana crowd's concerns.
Council members Tonia Reyes Uranga, Rae Gabelich and Val Lerch voted against the fees and permitting process, but lost the vote 5-3. Councilman Robert Garcia was absent because he is out of the country.
Before that, Uranga, Gabelich and Lerch were the only council members to support a motion that combined suggestions by Gabelich and Lerch to waive fees for collectives with 10 members or fewer and to divide the application fee so that part of it could be paid after the lottery.
The proposal would have saved lottery losers at least part of the fee cost. Farrell told the council that the fee could be separated into a $12,530 pre-lottery cost and a $2,212 post-lottery cost.
"They don't have the right to have their application fee refunded," Gabelich said. "That's just wrong to me."
News Hawk: Warbux 420 MAGAZINE
Source: Press-Telegram
Author: Paul Eakins
Contact: Home - Press-Telegram
Copyright: 2010 Press-Telegram
Website: Council approves non-refundable application fees for Long Beach's medical marijuana dispensaries - Press-Telegram
