Medical Marijuana Clubs Pop Up As Arizona Law is Debated

by Emily Holden

Medical-marijuana dispensaries can’t yet operate in Arizona pending a judge’s ruling on Proposition 203. But that doesn’t necessarily keep cardholders from finding pot.

At least a handful of clubs that provide patients with medical marijuana have opened up in the Valley to fill that void.

Because the new state law allows most medical-marijuana cardholders to grow their own pot and share it with each other – as long as there are no dispensaries near – these clubs have developed as a go-between.

Joe Yuhas, a spokesman for the Arizona Medical Marijuana Association, which led the campaign for Prop. 203, said the law was meant to create a “regulated industry” of dispensaries. Instead, Yuhas said, the pot clubs are an unintended consequence of the state and federal dispute over whether Arizona’s new law conflicts with federal statutes banning marijuana.

“We’re going to see more and more developments like this,” Yuhas said.

The development of marijuana clubs has raised questions about their legality in two areas: the payment for the product and local zoning of the clubs.

The state Department of Health Services said it has “serious concerns about the legality of so-called cannabis clubs.” Health officials have asked the Attorney General’s Office to determine if the clubs are legal.

Maricopa County Attorney Bill Montgomery agreed the clubs are an “untested area” but said he will prosecute anyone trying to operate outside the narrow provisions of the law.

However, club owners said they’re operating legally.

Dispensaries stalled

In November, voters approved Prop. 203, which legalized medical-marijuana use for people with certain debilitating conditions. The law allowed patients – as long as they don’t live within 25 miles of a dispensary – and caregivers to grow marijuana.

The state was expected to issue up to 126 dispensary permits by August.

But U.S. Attorney Dennis Burke, following the lead of other federal prosecutors, warned prospective pot growers and sellers that they could be prosecuted under federal drug-trafficking laws.

Gov. Jan Brewer

In response to the warning, Gov. Jan Brewer and Arizona Attorney General Tom Horne filed a lawsuit in late May asking a federal judge to determine whether compliance with the law would leave state employees, dispensary owners and patients vulnerable to prosecution for violating federal drug statutes.

The ADHS then halted its dispensary-licensing process.

Meanwhile, the state has licensed 5,697 patients with medical-marijuana cards to grow their own.

The department also has approved 270 caregivers to grow marijuana for their patients.

Under the law, medical-marijuana patients can grow up to 12 plants of their own. Patients and caregivers can share it with other cardholders “if nothing of value is transferred in return.”

Patients can pay caregivers for the costs and materials they use to grow pot but not for their work.

Inside the clubs

Caregivers can grow up to 72 plants total for themselves and five others. Some have given excess marijuana to these new clubs.

Since the clubs aren’t regulated, there is no way to say for sure how many operate in the Valley.

But at least seven advertise and operate openly. Others are underground and recruit patients by word of mouth.

Owners of the 2811 Club in Phoenix have heavily promoted their club. Founder Al Sobol said hundreds of people have visited.

Tucked away in a shopping center off Bell Road, members of the 2811 Club lounge on plush-leather couches and gather around small coffee tables to read about strains of marijuana. Smoking is not allowed in the club.

In a back room, an instructor demonstrates how to make Italian salad dressing with pot. And, at a glass display counter, a volunteer hands out 3-gram samples of marijuana to cardholders.

The club scans the cards and verifies the patients’ identity with a thumb-print machine. An armed security guard stands by.

Sobol said that most members are older than 50 and that only a few are in their 20s. Members can consult with volunteers to find the best sample for insomnia or chronic pain.

Mike Miller said he spends his days at the 2811 Club so he can be around people who understand his health problems.

Miller, a diabetic, had to have a leg amputated five years ago after a wound in his foot never healed. He said he has been on painkillers and other medications since then. Miller said he hardly left his house until he got his medical-marijuana card and found the 2811 Club.

“I’m hoping that the only time I would ever need a pain pill again is aspirin,” Miller said.

Donating for pot

There is no set payment arrangement for the various clubs.

The 2811 Club charges members an initial application fee of $25 and a $75 entry fee each visit to attend classes and get a free sample.

The club offers marijuana through the Arizona Compassion Association, a co-op of patients and legal caregivers that has a display in the club. Sobol said the 2811 Club makes donations to the growers to help with expenses of growing marijuana.

Sobol said as long as patients aren’t directly paying for pot, the 2811 Club and the Arizona Compassion Association aren’t acting as dispensaries.

“We don’t sell marijuana here,” Sobol said, adding that clubs that do sell are “absolutely wrong” in their interpretation of Prop. 203.

Yoki A Má, another club in Mesa, has a similar payment arrangement, charging a $65 visit fee and giving members an eighth of an ounce of pot.

Club President Craig Scherf also said he is confident that his club is operating within the confines of the law.

But state and local authorities have not yet determined whether this arrangement constitutes transferring something of value.

Montgomery, the county attorney, said he hasn’t received any cases about medical-marijuana clubs, but he wouldn’t be surprised to get some soon. He said he can’t determine whether they’re all illegal because each case is unique.

“It sounds to me like someone is asking for something of value in order to participate,” Montgomery said. “The closer you get to asking someone to provide money to receive marijuana sounds like a salient violation of the statute.”

Ryan Hurley, an attorney who represents potential dispensary owners for Rose Law Group, said he would advise the potential medical-marijuana dispensary owners he represents against opening clubs.

“At best, it’s a stretch under the law,” Hurley said. “I think it’s very, very risky.”

Local zoning

Aside from the legality of payment issues, there are also some questions about where medical-marijuana clubs can operate.

Because clubs aren’t dispensaries, zoning regulations don’t apply to them.

Ken Strobeck, executive director of the League of Arizona Cities and Towns, worked with localities earlier this year to set up dispensary-zoning laws. Strobeck said he hasn’t heard of anyone trying to zone a medical-marijuana club.

Scherf said he is trying to open a second Yoki A Má club in Tempe.

Tempe Planning Manager Lisa Collins said she isn’t sure how local law enforcement would react to a medical-marijuana club, but the club would not need special approval to open.

She said a club might need a sales-tax license to operate as a retail business, but it wouldn’t need one if it was only providing a service for a fee.

A club would need to get construction plans approved, but it probably wouldn’t need to disclose the nature of its business, she said.

Because clubs aren’t regulated like dispensaries, they’re easier to open and run.

Sobol said he initially meant for the 2811 Club to someday become a dispensary, but he has changed his mind, in part, because there are no zoning laws about clubs.

Still, Scherf said clubs are setting up far from residential areas, schools, churches and parks to avoid trouble. His club in Mesa is surrounded by industrial businesses.

Enforcing the laws

Because there’s so much ambiguity, Phoenix police said it’s still too premature to determine whether the clubs are operating legally.

Sgt. Steve Martos, a police spokesman, said his agency hasn’t made any arrests relating to medical-marijuana clubs.

“We are looking into whether or not they are covered by the new law,” Martos said.

Gilbert police have arrested several cardholders for possession but said those arrests involved other crimes.

Robbie Sherwood, spokesman for the U.S. Attorney’s Office for Arizona, recently reiterated his agency’s stance on medical marijuana: Nobody is safe from prosecution.

 

Article From The Arizona Republic

Arizona AG Worked With Anti-Marijuana Leader On Lawsuit

Photo: James King/Phoenix New Times

Whack-job Arizona Attorney General Tom Horne started working on a nefarious plan to stop medical marijuana almost as soon as voters had approved it last November.

​

Elected state officials busily working to defeat the will of their state’s own voters — it’s an unseemly spectacle, and it’s unfolding as we speak in Arizona. Making the entire scene even more ugly is the fact that seriously ill patients are needless suffering as a result.

Within weeks of Arizona voters approving medical marijuana in their state, the top law enforcement official in the state was devising ways to stymie the will of the people. Whack-job Arizona Attorney General Tom Horne discussed a plan to launch legal action agains the state’s medical marijuana law during a January meeting with the law’s biggest opponent, it has been revealed.

Carolyn Short, who led last year’s unsuccessful campaign to stop Proposition 203, which legalized medical marijuana in Arizona, refers to the meeting in a February 16 letter [PDF] to state Department of Health Services Director Will Humble, reports Ray Stern at Phoenix New Times:

On January 10, 2011, [former Arizona U.S. Attorney] Paul Charlton and I met with Attorney General Horne to discuss our conclusion that implementation of Prop 203 would subject you and other ADHS employees to federal prosecution for violating the Controlled Substances Act (“CSA”).

AG Horne suggested that he could file a declaratory judgment action, asking a court to determine whether the implementation of Arizona’s law would subject you and other ADHS employees to the risk of federal prosecution under the CSA.

Horne and Governor Jan Brewer put that idea into action last month, filing a lawsuit in U.S. District Court. The suit asks the court to make a “declaratory judgment” on the legality of Arizona’s new law.

State officials claimed at the time that a letter to Humble by U.S. Attorney Dennis Burke prompted them to file the lawsuit. Though both Horne and Brewer openly opposed Prop 203 before voters approved it, Horne claimed to reporters last month that he and the Governor were taking a “neutral” (yeah, right) stance on the new law.

“Short’s letter lays rest to the notion of neutrality,” Stern reports in the New Times. “And it makes Burke’s May 2 letter, which merely reiterated that marijuana was against federal law, (okay, there was some new stuff about the potential risk to property owners, landlords and financiers), appear to be little more than political cover for Horne and Brewer to launch a pre-planned attack.”

Besides mentioning Horne’s idea for a federal lawsuit, Short’s letter lays the groundwork for the theory that state employees are at risk of being federally prosecuted for simply carrying out the wishes of Arizona’s voters.

Horne and Brewer claimed last month that their lawsuit — in which they are plaintiffs attempting to defeat the will of the voters — that they’re “concerned” about state employees being prosecuted.

Yet, according to New Times, U.S. Attorney Burke never threatened state employees in his own letter, and the idea that the Obama Administration would arrest state officials in Arizona (or in Washington, where Governor Christine Gregoire used an almost identical excuse to gut a law which would have legalized dispensaries there) is simply far-fetched — as in, it has never happened, anywhere, ever.

“Brewer and Horne could have let Burke and the DEA make the first move against Arizona voters, then defended the medical marijuana law as vigorously as they’re defending the immigration laws,” Stern writes. “Instead, the governor and AG appear to be working in concert with Proposition 203′s opponents to defeat the law by any means necessary.”

Flagstaff Nixes Pot Dispensay Next To Pot-Themed Restaurant

Photo: Jesse Kasten/The Lumberjack

Flagstaff, Arizona’s Cheba Hut is a friendly haven for the high and hungry. But plans to located a medical marijuana dispensary next door have been derailed by city officials.

​Aw, man. It would have been so perfect.

Locating a medical marijuana dispensary next to a sandwich shop known for its stoner-friendly atmosphere and its subs named after strains of cannabis? Genius idea, and good for both businesses.

Several ganjapreneurs evidently had the same idea, even going to far as to secure a letter of intent from the landlord to rent them the commercial space next to the Cheba Hut in Flagstaff, Arizona. Cheba Hut markets to stoners, winkingly putting in quotes “Toasted” Subs and featuring “palm trees” in its logo that look quite a bit like cannabis leaves. Oh, and check out alllll that smoke pouring out the chimney.

Graphic: Cheba Hut

“Toasted” Subs, get it? And look at those palm tree leaves. And allll that smoke comin’ out the chimney…

​

But, alas: City officials have rejected one formal zoning application and have “informally discouraged” others from submitting similar applications, arguing the site is too close to a nearby Montessori preschool, reports Joe Ferguson at the Arizona Daily Sun.

City zoning requirements for medical marijuana dispensaries require the shops to be located at least 500 feet away from the nearest school, college, alcohol/drug abuse rehabilitation facility, library, childcare center or park.

But how Flagstaff measures the distance from any of those facilities has come under attack from a local attorney representing several prospective dispensaries, including one business that wanted to open next door to Cheba Hut.

Flagstaff calculates the distance by measuring from the parcel boundary of the entire shopping center, and attorney Lee Phillips has asked the city to instead measure from where the dispensary would be located — a perfectly logical and reasonable request.

In the case of the strip mall where the Cheba Hut franchise is located, it will make the difference between “yes” and “no” with city officials.

Photo: Super Lawyers

Attorney Lee Phillips has asked the City of Flagstaff to to recalculate its measurement to reflect where the dispensary would actually be located

​ The southern edge of the property is less than 500 feet from the school, while the northern edge where the dispensary wants to locate would be far enough away to get city approval.

No fewer than a dozen different applicants have received a letter of intent from the landlord to rent out the commercial space if they receive a dispensary license from the state late this year, according to Phillips.

Because only one dispensary license will be awarded for west Flagstaff, the property can issue multiple letters of intent for the same site to different businesses.

Phillips sent a letter Thursday asking the city to immediately review its procedures. He noted dispensaries have only until June 30 to get a letter from the city confirming that their proposed location would comply with the zoning ordinance and send it to the Arizona Department of Health Services.

The ADHS is expected to issue, by mid-August, one license for each of 126 designated areas in Arizona, with two inside the city and another near Flagstaff in the county.

City Manager Kevin Burke said he was “aware” of the Phillips’s letter and said the zoning policies are “now being reviewed” by planning staff.

At least one other proposed dispensary location was nixed by the city for being too close to a school in the past few weeks. The city rejected a concept plan to open a dispensary in the Kachina Square Shopping Center on Steves Boulevard because it was too close to the College America campus in the same strip mall.

Only three possible medical marijuana dispensary sites have so far been approved by Flagstaff:

• 4401 North Highway 89

• 1110 East Route 66

• 2010 East Route 66

The Top 5 Worst States To Get Busted With Pot

The 5 Worst States to Get Busted With Pot

Even a minor pot bust can be life-altering for people unlucky enough to be arrested in one of these five states.

Police prosecute over 800,000 Americans annually for violating state marijuana laws. The penalties for those busted and convicted vary greatly, ranging from the imposition of small fines to license revocation to potential incarceration. But for the citizens arrested in these five states, the ramifications of even a minor pot bust are likely to be exceptionally severe.

1. Oklahoma. Lawmakers in the Sooner State made headlines this spring when legislators voted 119 to 20 in favor of House Bill 1798, which enhances the state sentencing guidelines for hash manufacturing to a minimum of two years in jail and a maximum penalty of life in prison. (Mary Fallin, the state’s first-ever female governor, signed the measure into law in April; it takes effect on November 1, 2011.) But longtime Oklahoma observers were hardly surprised at lawmakers’ latest “life for pot” plan. After all, state law already allows judges to hand out life sentences for those convicted of cannabis cultivation or for the sale of a single dime-bag.

Patricia Marilyn Spottedcow, 25, learned the truth about Oklahoma’s excessive pot penalties the hard way in February when a judge sentenced the mother of four to 12 years in prison for her role in the sale of $39 worth of herb to an undercover informant. Spottedcow’s sentence sparked national media attention – and public outrage – but neither result has led the judge in the case to reconsider the terms of her confinement.

Similarly harsh sentences for pot are par for the course in the Sooner State. Paraplegic Jimmy Montgomery was sentenced to life in prison – later reduced to 10 years – after being caught with two ounces of medical pot in his wheelchair. After considerable public outcry, Montgomery was eventually granted early release on medical parole – though he later lost a leg from an ulcerated bed sore he developed while in prison. Rheumatoid arthritis patient Will Foster – convicted of marijuana cultivation in 1997 – received a similarly draconian 93-year sentence, later reduced to 20 years on appeal. Foster was eventually paroled and moved to California, where he quickly registered as a legal medi-pot patient. However, in 2009 he was extradited back to Oklahoma to serve additional time behind bars.

Overall, some 13,000 Oklahomans are busted for pot annually. Only 12 other states arrest a greater percentage of their population for weed, and arguably no state sentences those convicted more harshly.

2. Texas. On an annual basis, no state arrests and criminally prosecutes more of its citizens for pot than does Texas. Marijuana arrests comprise over half of all annual arrests in the Lone Star State. It is easy to see why. In 2009, more than 97 percent of all Texas marijuana arrests — over 77,000 people — were for possession only. Those convicted face up to 180 days in jail and a $2,000 fine, even upon a first conviction.

Despite Texas’ dubious distinction as the #1 pot prosecuting state in America, police and lawmakers have little interest in exploring alternatives. In 2007, Gov. Rick Perry signed legislation (HB 2391) into law granting police the option of issuing a summons in lieu of an arrest in minor marijuana possession cases. Yet aside from police in Austin, long considered to be the state’s lone bastion of liberalism, law enforcement have continued to fervently make arrests in even the most trivial of pot cases.

In 2011, Houston Democrat Harold Dutton introduced House Bill 458, which sought to reduce penalties for the adult possession of one ounce or less of marijuana to a Class C misdemeanor, punishable by a fine not exceeding $500 and no criminal record. Within weeks, over 2,500 Texans contacted their House members in support of the measure. Nonetheless, House lawmakers refused to even consider bringing the measure to a vote.

3. Florida. According to a 2009 state-by-state analysis by researcher and former NORML Director Jon Gettman, no other state routinely punishes minor marijuana more severely than does the Sunshine State. Under Florida law, marijuana possession of 20 grams or less (about two-thirds of an ounce) is a criminal misdemeanor punishable by up to one-year imprisonment and a $1,000 fine. Marijuana possession over 20 grams, as well as the cultivation of even a single pot plant, are defined by law as felony offenses – punishable by up to five years in prison and a $5,000 fine. In recent years, state lawmakers have revisited the state’s marijuana penalties – in each case electing to enhanceFlorida’s already toughest-in-the-nation criminal punishments.

Ironically, despite the Sunshine State’s long history as one of the nation’s stiffest pot prosecutors, law enforcement have steadfastly refused to report their annual marijuana arrest data to the Federal Bureau of Investigation. Illinois is the only other state that elects to withhold this information from federal statisticians.

4. Louisiana. On May 6 the Associated Press reported on the case of Cornell Hood II, who received a life sentence for possessing two pounds of pot. Hood received the maximum sentence under Louisiana’s habitual drug offender law because he had three prior marijuana convictions, although none of them were significant enough to result in even a single day of jail time.

Multi-decade sentences for repeat pot offenders are hardly a rare occurrence. Under Louisiana law, a second pot possession conviction is classified as a felony offense, punishable by up to five years in prison. Three-time offenders face up to 20 years in prison. According to a 2008 expose published in the New Orleans City Business online, district attorneys are not hesitant to “target small-time marijuana users, sometimes caught with less than a gram of pot, and threaten them with lengthy prison sentences.”

Each year, cops make nearly 19,000 pot busts in the Bayou State – some 91 percent for simple possession – and according to Gettman, only three other states routinely punish minor offenders so severely.

5. Arizona. Forty years ago virtually every state in the nation defined marijuana possession as a felony offense. Today, only one state, Arizona, treats first-time pot possession in such an archaic and punitive manner.

Under Arizona law, even minor marijuana possession offenses may be prosecuted as felony crimes, punishable by up to 18 months in jail and a $150,000 fine. According to Jon Gettman’s 2009 analysis only Florida consistently treats minor marijuana possession cases more severely.

Annually, some 22,000 Arizonans are busted for pot and 92 percent of those arrested are charged with possession only. Citing the rising costs of these prosecutions at a time of shrinking state budgets, first-term GOP House lawmaker John Fillmore (Apache Junction) recently introduced legislation, HB 2228, to reduce pot possession to a non-criminal petty offense, punishable by no more than a $100 fine. So how did his supposedly “small government, no nanny state” colleagues respond to his proposal? With “a lot of smiles and laughs,” Fillmore told the Phoenix New Times. Predictably, HB 2228 failed to even receive a legislative hearing from his fellow lawmakers.