Source: San Francisco Chronicle Contact: Wed, 6 Aug 1997 Page : A18 Medical Marijuana Club Says It Has A Deal With San Jose Police Maria Alicia Gaura, Chronicle South Bay Bureau Two directors of San Jose's medical marijuana dispensary say they've reached a deal with police that will allow the club to continue to operate legally. Police have agreed to soften their position and are recommending a change in the city's laws requiring the dispensary to grow pot on site, according to the directors, Peter Baez and Jesse Garcia. Police and city officials refused to comment, but a spokeswoman for City Attorney Joan Gallo confirmed that portions of the city's laws regulating medical marijuana dispensaries are under review. Baez, executive director of the Santa Clara County Medical Marijuana Center, said he no longer fears arrest even though the center is operating outside the city's law. The law requires the center to grow all of its marijuana supplies inside its tiny Meridian Avenue office, which center officials said would put them out of business. ``We met with (San Jose Chief of Police Louis) Cobarruviaz, and he assured us that he very much supports the spirit of Proposition 215,'' the state initiative that legalized medical use of marijuana, Baez said. ``He said he would recommend changes to the law, and in the meantime we are going ahead with business as usual.'' Baez and Garcia threatened last week to stop eating and to discontinue their treatments for cancer and HIV if the city didn't change the onsite cultivation rule. The rule was imposed by the city because transporting marijuana remains illegal under state and federal law. Baez, whose group provides marijuana to more than 150 patients, said the cultivation requirement was impossible to meet. The center wants permission to transport marijuana from a San Francisco grower until it can set up a growing operation in San Jose in a location separate from the office. Other Bay Area cities such as Oakland and Fairfax have ignored the state law and allowed marijuana to be grown away from where it is distributed. Baez and Garcia also protested a provision in the city law that allowed police to examine patients' medical files at any time, without a search warrant. According to Baez, Cobarruviaz agreed to recommend that the city allow the files to remain confidential, in part because the center now has an onstaff physician, Dr. Dennis Augustine, who can invoke physician patient privacy rights. Calls to the police department were referred to Sergeant Scott Savage, who could not confirm details of the meeting. Even with a positive recommendation from the chief of police, any changes in the city's laws must be reviewed by the city attorney and adopted by the city council, according to Kevin Pursglove, spokesman for Mayor Susan Hammer. At this time there is no plan to bring any changes before the council, he said. San Jose was the first city in the United States to regulate and license medical marijuana dispensaries, but no group has yet been able to meet the requirements of the new law. Baez's group has worked with the city to develop the new law, and is currently the only group openly distributing marijuana to sick people in the state's third largest city.