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File Number: 12 -296 <br />expire September 30, 2012; all opportunities for renewal have been exercised, and are now <br />by law exhausted. See California Government Code section 65858. As such, the City should <br />enact a comprehensive set of land use regulations, or ban such land uses before the <br />moratorium expires at the end of September in order to establish a firm policy on such land <br />uses. To not do so could arguably put the City's current policy at cross purposes with the <br />Anaheim holding that federal law probably does not preempt state medical marijuana laws as <br />they relate to such facilities. <br />Law Enforcement Analysis <br />In 2011, the Department of Justice issued a memorandum to federal prosecutors stating that <br />marijuana dispensaries and licensed growers in states with medical marijuana laws could face <br />prosecution for violating federal drug and money - laundering laws. Under Federal law, a <br />dispensary's operations involving the sales and distribution of marijuana are illegal and <br />subject to criminal prosecution. Under the law, real and personal property involved in such <br />operations are subject to seizure by and forfeiture to the United States. <br />Attorney General Kamala Harris recently issued a memorandum to California Law <br />Enforcement officials stating that the current medical marijuana laws are being "exploited by <br />gangs, criminal enterprises, and others." After conducting research with state, federal, patient <br />and civil rights communities it was concluded that the California medical marijuana laws need <br />to be reformed, simplified, and improved to explain how, when, and where individuals may <br />cultivate and obtain physician recommended marijuana. A critical element of this reform is <br />also to educate law enforcement with guidelines for enforcement. In her memorandum <br />Attorney General Harris urges the California legislature to amend the law to establish clear <br />rules governing medical marijuana. Attorney General Harris states "We cannot protect the will <br />of the voters, or the ability of seriously ill patients to access their medicine, until statutory <br />changes are made that define the scope of the group cultivation right, whether dispensaries <br />and edible marijuana products are permissible and how marijuana grown for medical use may <br />lawfully be transported." <br />The City of San Leandro has seen firsthand how medical marijuana laws are being exploited <br />and the dangers that have impacted the San Leandro community. Since 2011, the San <br />Leandro Police Department (SLPD) seized over 17,627 marijuana plants and 108,193 grams <br />(238 pounds) of marijuana. With the estimate that one plant of marijuana yields <br />approximately one -half pound per cycle, the plants seized by the Narcotics Unit have an <br />approximate street value of $24,235,750.00. The approximate street value of the finished <br />marijuana is $654,500. These totals are based upon a conservative estimate of $2,750 per <br />pound of marijuana at street level prices. Therefore since 2011, the estimated value of <br />marijuana seized is approximately 25 million dollars. Approximately eighty five percent of <br />those seizures were from marijuana grows in San Leandro residential neighborhoods. <br />The San Leandro Narcotics Unit has noticed that during their cultivation investigations <br />individuals are using fraudulent medical paperwork in various homes to make it look like they <br />are complying with the Acts. Oftentimes these residential grow houses are bypassing or <br />stealing electrical power, which causes serious risk for residential fires. Recently an indoor <br />marijuana grow was the cause of a fire on Warwick Ave. While putting out the fire, an <br />Alameda County Firefighter was injured and had to be taken to a local hospital for treatment. <br />According to PG &E, electrical rates are going up 6 to 7 percent each year. A factor for this <br />City of San Leandro Page 4 Printed on 611212012 <br />