The purpose of this informational memorandum is to provide the outreach and implementation plan to be undertaken by the City to assure that marijuana businesses in the City are aware of, and understand, the Marijuana Business Tax (“MBT”) to be imposed on these businesses. Effective March 1,2011, any person engaged in marijuana business in the City shall pay a MBT of 7% of gross receipts to the City. The first tax remittance is due April 30, 2011 for gross receipts for the prior calendar month. Details of the MBT are included in the attached brochure, as well as in San Jos6 Municipal Code Chapter 4.66. Additionally, this memo provides a brief summary of the City’s current position on Medical Marijuana regulations and enforcement, in light of past City Council action.

Outreach

HempCon 2011 Medical Marijuana Convention

The Finance Department (“Finance”) participated in the HempCon 2011 Medical Marijuana Convention held in the Convention Center’s South Hall on January 28 through January 30, 2011. Finance had a booth (provided complimentary by HempCon) where staff handed out brochures explaining the MBT and answered any related questions. Staffproactively visited all marijuana businesses in attendance to assure they received the MBT brochures.

HempCon is a medical marijuana show catering to those who may benefit from the medical use of marijuana and industry participants. The event included a number of exhibits including medical marijuana dispensaries, collectives, caregivers, products, evaluation services, legal services, educational institutes, equipment, and accessories. More information on HempCon can be found at w~wv.hempcon.com.

Newspapers/Journals

Prior to the effective date of the MBT, Finance will place publi.c notices and articles in various publications to further the efforts to ensure that all marijuana businesses in the City are informed of MBT. Publications will likely include the San Jose Metro, San Jose Mercury News, E1 Observador, and local business organization newsletters.

Training Seminar

Finance will hold a training seminar on Monday, February 28, 2011 from 9:00 – 11:00 am in the Council Chambers to review the MBT ordinance, and the preparation of the MBT return and registration form. Letters will be sent to all known marijuana businesses operating in the City inviting them to the 2-hour seminar.

Implementation

In order to properly staff for the implementation of the MBT, Finance will add over-strength positions. Staff will be responsible for monitoring remittances, identifying non-remitters, assessing penalties and interest, and generating management reports (statistics). In addition, staff will conduct site audits of each marijuana business in two-person teams to ensure compliance with the MBT ordinance and validate the gross receipts reported to the City and the related remittances. It is anticipated that site visits will commence in May 2011, to coincide with the first MBT tax remittance due on April 30, 2011.

Status of Regulating Medical Marijuana Establishments

At the December 13, 2010 City Council Special Meeting on medical marijuana, the City Council directed staff to cease issuing business licenses to new medical marijuana establishments and to continue those enforcement priorities approved by the City Council on June 22. As of December 13, 2010, the Finance Department has ceased accepting Business Tax Registration Forms for new medical marijuana establishments.

In addition, staff was directed to return to the Rules Committee with a work plan and meeting schedule to complete the review of medical marijuana regulations that result in the adoption of ordinances providing:

• (a) Land Use Restrictions;
• (b) Business Operating Regulations
• (c) Budget action that results in a 100% Cost Recovery Program for the regulatory program;
• (d) Authorization of the addition of staff to support the regulatory program; and,
• (e) Establishment of fines for various violations related to the regulations.

The City of San Jose has not adopted ordinances that would allow or regulate medical marijuana collectives. A draft ordinance was discussed in June and December 2010, and Council deferred further consideration until spring 2011. Because San Jose does not have an ordinance regulating or allowing these collectives, all medical marijuana businesses currently are considered a nuisance and are not allowed under the Municipal Code. The proposed work plan is scheduled to go to the Rules Committee on February 23,2011 for consideration.

Status of Enforcement Activities

Per Council’s action at the June 22, 2010 City Council Meeting, the City Administration was directed to focus enforcement on the closure of any medical marijuana collective that is:

• Within 500 feet from specific sensitive uses such as residential homes, school, child day care center, churches that includes schools or day care, community or recreation centers, parks, trails, libraries, substance abuse rehabilitation centers or another medical marijuana collective.
• Outside of the Commercial General (CG) Zoning District.

All of the 100 or so marijuana businesses are subject to enforcement based on this direction; however, staff resources in Code Enforcement and the City’s Attorney’s Office are focused on first addressing those collectives creating a public nuisance. For example, the City was successful in the closure of the Purple Elephant establishment which was creating a nuisance to the community.

COORDINATION

The preparation of this memorandum was coordinated with the City Attorney’s Office, City Manager’s Office, and Police Department.

SJCBC will be GIVING OUT *FREE POT* to the FIRST 42 people to show up by 7PM!!!

*to California Medical Cannabis patients ONLY.

We are hosting the second-ever Teapot Party Meetup for San Jose TODAY, Jan. 18, 7pm @ SJCBC

Not in San Jose? There are expected be more than 200 nationwide. Check out the Teapot Party Meetup page to find your local meetup

Here’s the agenda:

1.) Greeting & Introductions

2.) The purpose of the Teapot Party: Tax It, Regulate It, Legalize It. What you can do locally to change the marijuana laws. Ongoing legislation statewide or locally. Network with other organizations like NORML, MPP, SSDP and UL13

3.) Today’s propaganda & the opponents to marijuana legalization.
- a.) California Police Chiefs Association (CPCA)
- b.) California Narcotic Officers’ Association (CNOA)
- c.) Coalition for a Drug Free California
- d.) Santa Clara County Special Enforcement Team (SCCSET)

4.) Endorsing Candidates

5.) Fundraising/Volunteers

6.) Websites & Social Networking

7.) Meetups & Events
- a.) Work towards bigger meetups
- b.) Benefit shows/events

8.) Suggestions

San Jose Teapot Party Facebook Page: http://www.facebook.com/search.php?q=San Jose Teapot Party
San Jose Teapot Party Facebook Event: http://on.fb.me/fy5pd2
National Teapot Party Website: http://www.teapotparty.org/
National Teapot Party @Twitter: http://twitter.com/theteapotparty

We must stand together to fight the injustices of the U.S. Governments “War on drugs”. This is the only way to correct the propaganda of this failed war.

It’s funny how the propaganda went from:

“It is a drug that causes insanity, criminality, and death – the most violence causing drug in the history of mankind.”

-by Harry J. Anslinger, 1937

to:

“The strong form of marijuana that most young people smoke produces a chronically passive individual – someone who is lazy, who doesn’t want to take initiatives, doesn’t want to be active – the kid who prefers to lie in bed with a joint in the morning rather than getting up and doing something.”

-by Roger Morgan, Chairman and Executive Director for the Coalition for A Drug-Free California, 2010

Here are our top 7 favorite propaganda quotes:
* 1.) “Marijuana will destroy the nation.”
* 2.) “Prohibition of alcohol did work.”!!!?
* 3.) “Marijuana smokers cause 18 times more injury accidents than alcohol.”
* 4.) “Drug abuse almost always starts with a little puff of marijuana.”
* 5.) “Heavy cannabis use is also associated with substantial bone loss.”
* 6.) “Marijuana is not safer than alcohol. As with tobacco, nobody dies from overdose. But the altered mental state of users leads to accidents, domestic violence, birth defects, mental illness and a host of health problems.”
* 7.) “The hoax of “medical marijuana” that now exists in 14 states is indicative of the infiltration of pro- drug forces that inflict more death, destruction and harm on America than all other forms of terror combined.”

You can read the rest of our favorite quotes and the whole document they came from itself here

We came across a document that everyone needs to read. It might make you think twice before picking up that mind altering drug known as “reefer”.

The funniest part is the propaganda went from:

“It is a drug that causes insanity, criminality, and death – the most violence causing drug in the history of mankind.”

-by Harry J. Anslinger, 1937

to

“The strong form of marijuana that most young people smoke produces a chronically passive individual – someone who is lazy, who doesn’t want to take initiatives, doesn’t want to be active – the kid who prefers to lie in bed with a joint in the morning rather than getting up and doing something.”

-by Roger Morgan, Chairman and Executive Director
for the Coalition for A Drug-Free California, 2010

Here are our top 22 quotes:

The Top 5:

1. “Marijuana will destroy the nation.”

2. “Prohibition of alcohol did work.”!!!

3. “Marijuana smokers cause 18 times more injury accidents than alcohol.”

4. “Drug abuse almost always starts with a little puff of marijuana. “

5. “Heavy cannabis use is also associated with substantial bone loss.”

For All Cannabis Activists:

6) Marijuana is not safer than alcohol. As with tobacco, nobody dies from overdose. But the altered mental state of users leads to accidents, domestic violence, birth defects, mental illness and a host of health problems.

7) The hoax of “medical marijuana” that now exists in 14 states is indicative of the infiltration of pro- drug forces that inflict more death, destruction and harm on America than all other forms of terror combined. Read more →

SJCBC is now open until 9pm Monday – Friday.

Our regular hours are:

• Monday – Friday: 11am – 9pm

• Saturday: 11am – 7pm

• Sunday: Closed

Our holiday hours are:

• 12/24/10: 11am – 4:30pm

• 12/25/10: Closed

• 12/30/10: 11am – 7pm

• 01/01/11: Closed

Measure U, the San Jose 10% Marijuana Tax

Tell the City of San Jose, before you tax medical cannabis, let them exist!
San Jose has been discussing creating permits for cannabis clubs for almost a year. To date, San Jose has not put ANY regulations for medical cannabis in place.

The city attorney claims “having a San Jose business tax permit does not make your business legal.” and “Cannabis clubs are illegal in San Jose”.
If the San Jose Tax passes it would ADD 10% tax to ANY cannabis sold in San Jose. When added to the 9.25% the state board of equalization requires we pay, it will be taxing cannabis at OVER 19%. Suppliers to collectives would also pay 10%. In the end taxing cannabis at near 30%! and yet the city still considers it be illegal!

This tax is not designed to help the budget, but to chase cannabis out of San Jose!

If the city wants to tax medical cannabis, they need to create a way to allow them to be legal businesses FIRST. Read more →

Local Collectives Feel Case is Stronger Due to Judge’s Ruling in Southern California

San Jose, Calif., Aug. 20, 2010 – The case of the SJCBC LLC (the San Jose Cannabis Buyers Collective) and PHCC (Pharmers Health Center Cooperative) vs. the city of San Jose has been extended to Thursday, August 26 to allow attorneys to present the relevance to Wednesday’s recently decided Anaheim case.

“We feel municipalities like San Jose are downplaying the importance of the Anaheim ruling as the decision cut the legs out of the city’s argument,” said Dave Hodges, founder of the SJCBC.

Although the Anaheim decision did not rule on the preemption argument, the ruling did reject the following as valid arguments against cannabis collectives:

1. Sales are not legal.
2. Zoning issues from Ross v. Raging Wire.
3. The Claremont Case is authority for a total ban.
4. Federal vs. State law.

The Anaheim ruling directly affects the SJCBC and PHCC case as it eliminates the city of San Jose’s rational for sending threatening letters to landlords and claiming collectives are illegal in San Jose. The SJCBC and PHCC vs. the city of San Jose will be the first case that uses the Anaheim ruling in court.

“We’re looking forward to getting back into court Thursday so we can once and for all get a decision as this case directly impacts protecting the civil rights of all cannabis patients in San Jose,” said Andy Schwaderer, founder of PHCC.

A Press Conference will be held at 1pm on Thursday, August 26 in front of the SJCBC at 1082 Stockton Ave in San Jose.