2011072504 - Introduce an Ordinance prohibiting Medical Marijuana DispensariesMEETING DATE: 07/25/11
ITEM NO: LI
ADDENDUM
COUNCIL AGENDA REPORT
DATE: July 18, 2011
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: INTRODUCE AN ORDINANCE ADDING CHAPTER 14.120 ENTITLED
"MEDICAL MARIJUANA DISPENSARIES" TO THE CODE OF THE TOWN
OF LOS GATOS PROHIBITING MEDICAL MARIJUANA DISPENSARIES
WITHIN THE TOWN.
REMARKS
Subsequent to the drafting and distribution of the medical marijuana dispensaries report, the U.S.
Department of Justice (DOJ) released a June 29, 2011, memo outlining the Department's
position on enforcement of the Controlled Substances Act. (CSA) in jurisdictions considering
legislation that would sanction and regulate commercial cultivation and distribution of marijuana
for purportedly medical use. The DOJ memorandum is included in Attachment 8.
U.S. Department of Justice June 29, 2011, Memorandum
In October 2009, the U.S. DOJ released a memorandum outlining the federal government's
position on investigations and prosecutions in states authorizing the medical use of marijuana. In.
the memorandum from Deputy Attorney General David W. Ogden to federal prosecutors in the states
that make some allowance for the use of marijuana for medical purposes, the department said
that it was committed to the "efficient and rational use" of its resources and that prosecuting
patients and distributors who are in "clear and unambiguous compliance" with state laws did not
meet that standard. The memorandum also stated that, "It will not be a priority to use federal
resources to prosecute patients with serious illnesses or their caregivers who are complying with
state laws on medical marijuana..." In a statement released with the memorandum, Attorney
General Eric H. Holder also said the department "will not tolerate drug traffickers who hide
behind claims of compliance with state law to mask activities that are clearly illegal."
Advocates of medical marijuana generally saw this as a "relaxing" in the federal government's
position on enforcement of CSA in cases of medical marijuana.
PREPARED BY: Wendie R. Rooney, Director of Community Development
Reviewed by: _____Assistant Town Manager atTown Attorney
Clerk Administrator Finance unity Development
N:\DEV\TC REPORTS\2011\Medical Marijuana Report Addendum.doc
Reformatted: 5/30/02
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MAYOR AND TOWN COUNCIL
SUBJECT: Medical Marijuana Dispensaries
July 18, 2011
However, in the most recent position statement on this topic that was released on June 29, 2011,
the DOJ clarified its commitment to enforce the CSA in regards to illegal use, production, or
distribution of marijuana. The memorandum states:
The Department's view of the efficient use of limited federal resources as articulated in
the Ogden Memorandum has not changed. There has, however, been an increase in the
scope of commercial cultivation, sale, distribution and use of marijuana for purported
medical purposes. For example, within the past 12 months, several jurisdictions have
considered or enacted legislation to authorize multiple large-scale, privately -operated
industrial marijuana cultivation centers. Some of these planned facilities have revenue
projections of millions of dollars based on the planned cultivation of tens of thousands of
cannabis plants. The Ogden Memorandum was never intended to shield such activities
from federal enforcement action and prosecution, even where those activities purport to
comply with state law. Persons who are in the business of cultivating, selling or
distributing marijuana, and those who knowingly facilitate such activities, are in violation
of the Controlled Substances Act, regardless of state law.
While this recent memorandum does not appear to alter the Department's position on not
expending resources to "prosecute patients with serious illnesses or their caregivers who are
complying with state laws on medical marijuana," it serves as a caution to jurisdictions that are
considering local ordinances or other actions which facilitate the establishment and operation of
marijuana facilities that such action could potentially be construed as a criminal violation.
While it is very unlikely that the Town would be considering a permitting process for large-scale
marijuana facilities, staff feels it is important to update the Town Council on issues relative to
the continuing conflict between federal and state laws regarding the use of marijuana for medical
purposes.
Attachments:
1-7. Previously distributed.
8. U.S. Department of Justice Memorandum from Deputy Attorney General James M. Cole
WRR: aah
U.S. Department of Justice
Office of the Deputy Attorney General
Ylbshington, D.C. 20530
June 29, 2011
MEMORANDUM FOR UNITED STA
FROM: James M. Cole
Deputy Attorn- General
SUBJECT: Guidance Regarding the Ogden Memo in Jurisdictions
Seeking to Authorize Marijuana for Medical Use
Over the last several months some of you have requested the Department's assistance in
responding to inquiries from State and local governments seeking guidance about the
Department's position on enforcement of the Controlled Substances Act (CSA) in jurisdictions
that have under consideration, or have implemented, legislation that would sanction and regulate
the commercial cultivation and distribution of marijuana purportedly for medical use. Some of
these jurisdictions have considered approving the cultivation of large quantities of marijuana, or
broadening the regulation and taxation of the substance. You may have seen letters responding
to these inquiries by several United States Attorneys. Those letters are entirely consistent with
the October 2009 memorandum issued by Deputy Attorney General David Ogden to federal
prosecutors in States that have enacted laws authorizing the medical use of marijuana (the
"Ogden Memo").
The Department of Justice is committed to the enforcement of the Controlled Substances
Act in all States. Congress has determined that marijuana is a dangerous drug and that the illegal
distribution and sale of marijuana is a serious crime that provides a significant source of revenue
to large scale criminal enterprises, gangs, and cartels. The Ogden Memorandum provides
guidance to you in deploying your resources to enforce the CSA as part of the exercise of the
broad discretion you are given to address federal criminal matters within your districts.
A number of states have enacted some form of legislation relating to the medical use of
marijuana. Accordingly, the Ogden Memo reiterated to you that prosecution of significant
traffickers of illegal drugs, including marijuana, remains a core priority, but advised that it is
likely not an efficient use of federal resources to focus enforcement efforts on individuals with
cancer or other serious illnesses who use marijuana as part of a recommended treatment regimen
consistent with applicable state law, or their caregivers. The term "caregiver" as used in the
memorandum meant just that: individuals providing care to individuals with cancer or other
serious illnesses, not commercial operations cultivating, selling or distributing marijuana.
The Department's view of the efficient use of limited federal resources as articulated in
the Ogden Memorandum has not changed. There has, however, been an increase in the scope of
Attachment 8
Memorandum for United States Attorneys
Subject: Guidance Regarding the Ogden Memo in Jurisdictions
Seeking to Authorize Marijuana for Medical Use
Page 2
commercial cultivation, sale, distribution and use of marijuana for purported medical purposes.
For example, within the past 12 months, several jurisdictions have considered or enacted
legislation to authorize multiple large-scale, privately -operated industrial marijuana cultivation
centers. Some of these planned facilities have revenue projections of millions of dollars based
on the planned cultivation of tens of thousands of cannabis plants.
The Ogden Memorandum was never intended to shield such activities from federal
enforcement action and prosecution, even where those activities purport to comply with state
law. Persons who are in the business of cultivating, selling or distributing marijuana, and those
who knowingly facilitate such activities, are in violation of the Controlled Substances Act,
regardless of state law. Consistent with resource constraints and the discretion you may exercise
in your district, such persons are subject to federal enforcement action, including potential
prosecution. State laws or local ordinances are not a defense to civil or criminal enforcement of
federal law with respect to such conduct, including enforcement of the CSA. Those who engage
in transactions involving the proceeds of such activity may also be in violation of federal money
laundering statutes and other federal financial laws.
The Department of Justice is tasked with enforcinglexisting federal criminal laws in all
states, and enforcement of the CSA has long been and remains a'core priority,
cc: • Lanny A. Breuer
Assistant Attorney General, Criminal Division.
B. Todd Jones
United States Attorney
District of Minnesota
Chair, AGAC
Michele M. Leonhart
Administrator
Drug Enforcement Administration
H. Marshall Jarrett
Director
Executive Office for United States Attorneys
Kevin L. Perkins
Assistant Director
Criminal Investigative Division
Federal Bureau of Investigations