City Issues Temporary Ban on Marijuana Dispensaries

City Council approved an urgency ban Tuesday night on the establishment and operations of medical marijuana dispensaries in Union City.

The moratorium places a temporary 45-day ban on the approval of business licenses or permits for medical marijuana dispensaries, along with the sale and distribution of medicinal marijuana. The ban may be extended twice for a total period of up to two years.

It was passed to protect public health, safety and welfare, city staff said.

Tuesday night’s action was the result of the recent opening of CHA Wellness Center, a dispensary located at 34695 Alvarado-Niles Rd., on Jan. 18.

CHA Wellness . Police attempted to cite the business for not having a proper license the morning of their scheduled grand opening, but the dispensary never opened. An employee said then that the dispensary would be “closed until further notice.”

The company apparently re-branded itself and re-opened, despite not having a license to do so, police said.

CHA Wellness was still open early Wednesday afternoon.

According to city staff, the initial business license was requested for the retail sale of “holistic health care and related products and services” to “facilitate the distribution of herbal remedies.”

There was no request for medical marijuana use or sales, City Attorney Kit Faubion said.

The moratorium allows the city time to examine how it should regulate medicinal marijuana dispensaries, City Attorney Benjamin Reyes said.

As it stands, the sale, use and distribution of marijuana is illegal under federal law.

City regulations require that all businesses in Union City be compliant with federal laws. According to the U.S. Department of Justice Drug Enforcement Administration, marijuana is classified as a Schedule I Controlled Substance, meaning it has "a high potential for abuse (and) no currently accepted medical use in treatment in the United States, and there is a lack of accepted safety for use of the drug or other substance under medical supervision."

Proponents of medicinal marijuana dispensaries, however, argue that cannabis collectives are allowed to distribute medicinal marijuana under the state’s Proposition 215, known as the California Compassionate Use Act of 1996, and Senate Bill 420. The Compassionate Use Act allows seriously ill patients to use medical marijuana with doctor's permission.

Further complicating the matter, a ruling on whether or not cities and counties can shut down dispensaries is being called into question.

The California Supreme Court is currently reviewing a lower court ruling in Riverside that gives local governments the right to ban dispensaries. The decision, issued last November by the Fourth District Court of Appeal in southern California, has been used by other cities throughout the state to shut down pot clubs.

The state Supreme Court is also reviewing several other medical marijuana cases. There is "an absence of law" during the review process, Reyes said.

“In light of the Supreme Court’s granting of review of these cases, any cases that the city previously relied upon regarding medical marijuana establishments are no longer cited as controlling law,” Reyes wrote in a staff report.

During the 45-day period of the moratorium, the city will conduct a legal analysis on potential regulations.

According to Reyes, if dispensaries were allowed in Union City, there would be land use issues and conflicts with the city’s long-term planning goals.

The moratorium does not mean that dispensaries will be banned permanently.

“It simply buys time for the city to study the issue,” Reyes said.