Proposal would regulate growing S.F. industry.

http://www.sfexaminer.com/articles/2005/02/25/news/20050225_ne02_potclubs.txt
Pot clubs face scrutiny
Proposal would regulate growing S.F. industry.

By J.K. Dineen and Adriel Hampton
Staff Writers
Published: Friday, February 25, 2005 11:21 AM PST
San Francisco Examiner

Two years after local voters passed a pro-medical marijuana measure,
San Francisco may finally update its "see no evil" policy and begin
regulating its dozens of dispensaries.

The City has seen "an explosion of new medical marijuana clubs,"
according to Supervisor Ross Mirkarimi, a Green Party member who
plans a public hearing on an estimated 34 clubs. Health Department
records show that from 2003 to 2004, the number of patients
requesting medical marijuana ID cards doubled to more than 7,000.

"After seeing the rise of this cottage industry in San Francisco,
questions abound as to what The City might do to benefit from this
commerce," Mirkarimi said. "I'm not looking in order to infringe on
their business, but I want to bring them into the sunshine."

Mirkarimi's hearing will address possible licensing fees, zoning
requirements, safe access guidelines and consumer protections.
Currently, The City allows the clubs to operate in a black-market
limbo, free from prosecution or onerous planning hurdles.

Jason Beck, who owns the Alternative Herbal Medicine pot club on
Haight Street, welcomed the increased scrutiny and regulation.

"Whatever types of regulation we can impose that benefit the patients
would be great and will only provide us with more legitimacy," said
Beck, adding that some city clubs simply sell pot for profit, with
nothing in the way of patient consultation or care.

A business license could also help dispensaries obtain insurance,
Beck said, adding that a permitting fee would be a way for the clubs
to pay a tax into city coffers.

Currently, all an aspiring medical marijuana shopkeeper needs in
order to open is a willing property owner. Wayne Justmann, who was
the first in line when The City began issuing medical marijuana ID
cards, said the time is right for The City to define what constitutes
a dispensary.

He pointed to a Haight Street smoke shop owner who one day put a
medical marijuana sign in the window and started selling pot out of
pickle jars.

"Because you have six pickle jars with cannabis in them, that makes
you a cannabis club?" he asked. "I'm offended."

HUGE RISE IN DEMAND
Demand for medical marijuana has grown sharply since the Health
Department began issuing ID cards four years ago.

Year: Cards issued
2000: 754
2001: 2,089
2002: 2,270
2003: 3,085
2004: 7,014

Number of San Francisco cannabis clubs: 34.

Regulations: None

Number of Oakland cannabis clubs: Four.

Regulations: Four-club limit within the city, $5,000 to $20,000
licensing fee, zoning, monitoring