Pubdate: Tue, 07 Aug 2012
Source: Arizona Republic (Phoenix, AZ)
Copyright: 2012 The Arizona Republic
Website: http://www.azcentral.com/arizonarepublic/
Details: http://www.mapinc.org/media/24
Author: Mary K. Reinhart

ARIZONA BEGINS SELECTING MEDICAL-MARIJUANA DISPENSARIES

Arizona stepped deeper into the national legal quandary surrounding
medical marijuana Tuesday with the selection of nearly 100
dispensaries throughout the state, some of which could begin selling
the drug in a matter of weeks.

The tedious, four-hour bingo-style drawing in a state Department of
Health Services auditorium came a day after Attorney General Tom Horne
declared that the dispensaries violate federal drug laws and as
Maricopa County Attorney Bill Montgomery vowed to prosecute any that
opened.

Arizona Department of Health Services Director Will Humble said the
voter-approved medical-marijuana law has been fraught with legal
issues since before it became law in 2010. All he can do, he said, is
implement the rules accurately and fairly.

"No one disputes that there's a conflict between state and federal law
when it comes to dispensaries, or the entire program for that matter,"
Humble said. "But we're going to do the very best job we can to put
together as responsible a medical ... marijuana program as we can."

The state issued special identification cards to nearly 30,000
Arizonans since last summer, permitting them to use medical marijuana
to treat certain debilitating conditions. More than four out of five
users also have permission to grow the drug. That permission will be
gradually withdrawn as dispensaries open.

Gov. Jan Brewer and Horne stalled implementation of the dispensary
process last year with a federal lawsuit, then dropped their challenge
in January after the judge threw out their lawsuit and a lower-court
judge ordered the process to go forward.

On Tuesday, the state Health Department issued 97 dispensary
registration certificates from among 433 applicants, giving them the
opportunity to sell marijuana and operate cultivation sites to grow
it. The law does not limit how much marijuana dispensary operators can
grow. Users are limited to 21/2 ounces every two weeks.

Successful applicants first had to show they had a viable non-profit
business plan, $150,000 in capital and met zoning requirements, among
other things. Those who won Tuesday's drawing now have less than a
year to prepare for and pass a state inspection before they can open
their doors.

Officials divided the state into 126 areas, nearly 30 in Maricopa
County. Two of those regions, in Sun City and Glendale, are the
subject of legal challenges by would-be dispensary owners so the state
did not draw winners there. In 27 areas, there were no applicants.

One of those lawsuits, brought in June by White Mountain Health
Center, charges that Maricopa County illegally rejected its
registration certificate, which is among the state requirements to
become a dispensary applicant.

The facility is in an unincorporated area and requires county zoning
approval. Montgomery had advised county officials not to participate
in the medical-marijuana program because he believes employees could
risk prosecution under federal drug laws.

Montgomery said Tuesday he will ask the judge in that case for a quick
ruling on whether the state's medical-marijuana program is legal under
the federal Controlled Substance Act, which makes possession, sale or
use of marijuana a crime. Judges who issued the earlier court rulings
weren't asked and didn't answer that question, he said.

In the meantime, he said, Horne's legal opinion gives him the
authority to prosecute dispensary operators. State Health Department
employees also are at risk under federal law, he said.

"Any action that was taken by a state employee, if in fact any
dispensaries open, was a federal crime," he said. "If they wind up not
opening, no harm, no foul."

Horne issued the non-binding opinion late Monday, saying federal drug
laws trump the state's voter-approved medical-marijuana law when it
comes to "cultivating, selling and dispensing" marijuana. He cautioned
potential dispensary owners against moving forward with their
operations until the issue had been settled in court.

Both attorneys mentioned recent court rulings and crackdowns by
federal prosecutors to bolster their arguments.

But attorney Ryan Hurley, who represented about 20 dispensary
applicants -- four of whom won drawings Tuesday -- said other courts
have ruled that state medical-marijuana laws don't prevent federal
officials from enforcing their own laws. Arizona is one of 17 states
to allow medical marijuana.

And, Hurley said, federal prosecutors, including Arizona's U.S.
attorney, have sent a consistent, if vague, message that they intend
to focus on large-scale drug traffickers, not those complying with
state laws.

Other lawsuits are likely from applicants who weren't selected and
have concerns about those who were, he said. Humble agreed, saying he
set up Tuesday's drawing -- complete with white gloves, auditors and
sealed plastic bags -- in part to defend against legal action.

"I recognize that there are people who disagree with some of the
decisions that we've made," Humble said.

At least one local entrepreneur claimed two coveted Maricopa County
locations.

Gerald Gaines of Compassion First AZ, whose affiliates filed 24
applications in eight regions, earned permission to launch
dispensaries in Fountain Hills and west Phoenix.

Gaines, who already uses the Phoenix location for caregivers to grow
and provide marijuana, said he could open a dispensary within weeks,
depending on how quickly the state can move to inspect it.

But he said the biggest obstacle may be the governor's office and
Horne, whom he accused of using "scare tactics" to intimidate
patients, caregivers and dispensary operators.
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MAP posted-by: Matt