CHIEFLEGISLATIVEANALYST
Date:December2,2009To:HonorableMembersoftheLosAngelesCityCouncilGerryF.Mi11e1"~ChiefLegistiifife~al~stAssignmentNo.09-12-1799CouncilFileNo.08-0923From:Subject:MedicalMarijuanaFacilities
&
PolicyIssuesOnNovember24,2009yourequestedourofficetoprovideareportrelativetovariousunresolvedpolicyissuesrelativetomedicalmarijuanafacilities.ToaddressyourrequestwemetwithstafffromthePlanningDepartment,thePoliceDepartment,andtheOfficeoftheCityAttorney.Thepolicyissuesthatyouaskedustofollowuparethefollowing:(a)Apotentialcaponthenumberofcollectivescitywide.(b)Acapontheemployeesalaryofmedicalmarijuanadispensaries.(c)Restrictionstoaccesspatientsrecords.(d)Amendmentstoallowpatientstoobtainmedicalmarijuanaatmorethanonelocationinemergencysituations.(e)Statelawrestrictingsmokinginnursingandlong-termcarefacilities.(f)Auditsofmedicalmarijuanadispensaries.(g)MedicalMarijuanaCollectiveRequestforProposals(RFP)process.(h)Pre-InterimControlOrdinance(ICO)186MedicalMarijuanaDispensaries.FINDINGS
(a)CaponthenumberofcollectivesCitywide:
CouncildirectedustolookintoplacingacaponthenumberofdispensariesCitywideeitherby.CommunityPlanningAreasofwhichthereare35throughouttheCity,orbyPoliceDepartmentDivisions,ofwhichthereare21locatedinthefourPolicebureausintheCity(Central,South,Valley,andWest).PlacingacaponthenumberofdispensariesbyCommunityPlanAreasisafeasibleapproachbecauseitsgeographicalboundariesdonotchange,andtherefore,aremorestable.TheonlyinstancewheretherewouldbeachangetotheboundariesofCommunityPlanAreaswouldbeiftheCityweretoexpanditscurrentgeographicalboundaries(469.3squaremiles)throughannexation.
In
addition,placingacaponthenumberofdispensariesbyCommunityPlanAreasinsteadofPoliceDivisionsavoidsanyover-concentrationbasedongeography,inasmuchastherearemoreCommunityPlanAreasthanPoliceDivisions.AcaponthenumberofdispensariesbyCommunityPlanAreaswouldmitigateeconomicmarketforcesfromdrivingdispensaryoperatorstocertainareasoftheCitywherecommercialrentalratesmaybelowerthaninothermoreaffluentgeographicalareasoftheCity.Therefore,capsbyCommunityPlanAreaswouldprovideastatisticaldistributionthatisevenlydistributedandnotskewedtocertaingeographicalsectionsoftheCitythatmayalreadybesaturatedwithchallenginglanduses.
PlanningDepartmentLocationAnalvsis:
WehavereviewedtheCommunityPlanAreaslocationanalysispreparedbythePlanning-----Department-(-Attachment+)-based-on-a-500.foot-and-1000.foot-radius-from-sensitive-use-areas.-.------ThePlanningDepartmentanalysispresumesthatmedicalmarijuanadispensarieswouldlocateineithercommercialorindustrialzones,resultinginapproximately18,000acrescitywideinwhichmedicalmarijuanafacilitiescouldbelocatedbasedona500-footradiusandapproximately12,000acresbasedona1000-footradius.However,itisimportanttoconsiderNote4ofAttachment1,whichstatestheacreageislikelyoverstatedbecausethePlanningDepartments'slandusedatabasedoesnotincludeactuallanduses.Sincecommercialzonesallowresidentialusesbyrightandthereforemayincluderesidentialandmixedusesbuildings,thePlanningDepartmentwouldhavetodoacase-by-casereviewtodetermineifresidentiallandusesexistwithinthespecifiedradius.Whilethisinformationisusefulasaguideforidentifyingthepotentialareasinwhichfacilitiesmaybelocated,bothourofficeandthePlanningDepartmentconcludethatthismethodology,onitsown,wouldnotbeusefulindeterminingthenumberofpotentialmedicalmarijuanafacilitiesasitcouldyieldthousandsoflocations.
AlternativeApproachonCapUsingStatewideData:
WeobtainedstatisticaldataastothetotalnumberofcitiesStatewidethathaveauthorizedmedicalmarijuanadispensaries.ThisdatawasobtainedfromaJanuary18,2007reportfromthePoliceCommissiontothePublicSafetyandPlanningandLandUseManagementCommittees.ThedatashowsthatthetotalStatewidepopulationofallthecities(includingLosAngeles)thatauthorizeandhavemedicalmarijuanadispensariesis6,003,870,withatotal1,235squaremiles,and247dispensaries.Therefore,weusedthisbasestatisticalinformationtoarriveatthetotalpotential165Citywidemedicalmarijuanadispensariesbasedonpopulationbyusingthefollowingmathematicalformula:
"247
(totaldispensariesStatewide)
/6,003,870
(totalpopulationofcitiesallowingdispensaries)
4.11
(ratioofdispensariesperperson)
x
4,003,457
(LosAngelespopulation)
=
165
(potentialmaximumnumberofmedicalmarijuanadispensariesinLosAngeles)."
Webelievethisisareasonableapproachfordeterminingacapof165dispensariesintheCity.However,indiscussionswiththePlanningDepartmentandPoliceDepartmentandasdiscussedearlierthisreport,thecapshouldbecoupledwithalimitinageographicalareasothereisnotanover-concentrationofmedicalmarijuanafacilitiesinasinglearea.WeconcurwiththePlanningDepartmentrecommendationtouseCommunityPlanAreas.Attachment2ofthisreportidentifiesbyCommunityPlanArea,thenumberoffacilitiesthatmaybelocatedintheareabasedonacapof165.WehavealsoincludedforyourinformationasAttachment3adistributionoftheproposed165capbyPoliceDivision.Asamatterofinformation,usingthesamecalculationbasedonsquaremiles(247dispensariesin1,235squaremiles,469squaremilesintheCity),itwouldyieldacapof94medicalmarijuana
(b)MedicalMarijuanaEmployees
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SalaryCaps:
CouncildirectedustolookintoplacingasalarycaptolimittheemployeesalariesofamedicalmarijuanaestablishmentstoensurethatcompensationdoesnotexceedindustrystandardsfornonprofitorganizationssuchastheUnitedWayorotherlikeentity.WecontactedtheCity'sCommunityDevelopmentDepartment(CDD)tofindoutiftheCityplacessalarycapsonothernon-profitentities.CDDstaffindicatesthattheyenforcelimitsonsalaryandbonusesforexecutivelevelemployeespaidwithDepartmentofLabor(DOL)andEmploymentandTrainingAdministration(ETA)fundedprogramsonly.ThislimitisestablishedbytheStateEmploymentDevelopmentDepartment(EDD)incompliancewithDOLandWorkforceInvestmentActrequirements.The2009maximumannualsalarylbonusamountis$177,000,accordingtoadirectivereleasedinJuly2009.CDDdoesnotlimitrecipientsalariesbeyondtheserequirements.CDDreportsthatagenciesmaypaytheiremployeesmorethanthisamount,buttheycannotuseDOLfundsbeyondtheestablishedlimit.TheDepartmentfurtherstatesthattheDOLfundedprogramsRFPsreferencecompliancewithallDOLregulations,butdonotspecificallycalloutsalaryrestrictions.IftheCouncilchoosestoimposeasalarycap,thedraftordinancecouldincludethelimitestablishedbyEDDoranyotheramounttheCouncilmaychose.
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