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Agenda 10/23/2018 Item #11B10/23/2018 EXECUTIVE SUMMARY Recommendation to accept staff’s update on the status of the implementation of medical marijuana in Florida. OBJECTIVE: To update the Board regarding the implementation of the State’s medical marijuana program, anticipated legislative actions, and the effectiveness of home delivery services. CONSIDERATIONS: During an LDC amendment hearing on May 22, 2018, the Board directed staff to report back within six months regarding the status of home delivery of medical marijuana and any proposed legislative changes to F.S. 381.986 for the upcoming 2019 legislative session. Existing condition A medical marijuana dispensary is currently not an allowed land use per the Collier County Land Development Code (LDC). For a medical marijuana dispensary to be added as an allowed use within the LDC, there is a requirement for a super majority (4 to 1) vote of the BCC. Prior discussions with the BCC on the addition of a dispensary to the LDC has failed to reach the required four votes, therefore effectively prohibiting dispensaries in the County. Implementation The Department of Health’s Office of Medical Marijuana Use (OMMU) reports weekly on Medical Marijuana program statistics. As of September 14, 2018, there are 162,826 registered patients state-wide, and 55 approved dispensing locations. Operating medical marijuana dispensaries nearest to Collier County are in Lee, Broward, and Miami-Dade Counties. The OMMU does not release information regarding the number of patients visiting dispensaries or using delivery services. As a result, Staff is unable to judge the effectiveness of delivery services compared to in-person visits to dispensaries state-wide. Rulemaking The OMMU continues to amend medical marijuana rules in the Florida Administrative Code, ho wever, no new rules related to dispensaries or local ordinances have been announced. Legislation No additional legislative changes have occurred since May 22, 2018. The next legislative session is scheduled for March 5, 2019 to May 3, 2019. To date, no bills related to medical marijuana have been filed for the 2019 Legislative Session. Site Visit of Existing Dispensary On September 11, 2018, the Board directed Staff to perform a site visit of a local medical marijuana dispensary. Staff visited a Trulieve dispensary located at 13971 N. Cleveland Ave. in North Fort Myers on Wednesday, September 19, 2018. Responses to questions from Staff and materials provided to Staff by Trulieve, including delivery information, marketing materials, and product details, are attached. FISCAL IMPACT: There are no fiscal impacts associated with this action. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. There have been 11.B Packet Pg. 309 10/23/2018 a number of legal challenges filed with respect to the State Medical Marijuana Statute. The cases include the following: 1. People United for Medical Marijuana, Inc. v. FDOH, Case No. 2017-CA-1394: Challenges the exclusion of “smoking” as a viable medical use of medical marijuana in Section 381.986, Florida Statutes, as inconsistent with the intent of Article X, Sec. 29 of the Florida Constitution. Circuit Court decision in favor of Plaintiffs appealed to 1st DCA. 2. Trulieve v. FDOH, Case No. 2018-CA-00698: Challenges the constitutionality of the limit on the number of dispensaries a company can open. Trial held August 27, 2018 before the Circuit Court; no order entered as of today. 3. Florigrown, LLC v. FDOH, Case No. 2017-CA-2549: Challenges the classifications and requirements giving preference to some applicants over others. On October 5, 2018, the Court entered an Order granting Florigrown’s Motion for Temporary Injunction finding the Legislature’s amendment to Section 381.986, F.S., to be significantly inconsistent with the Constitutional Amendment passed by voters. The Court ordered that by October 19, 2018 FDOH is to begin registering treatment centers in accordance with the Constitutional Amendment. 4. Patients and Producers Alliance, Inc. v. State of Florida, Case No. 2018-CA0336: Challenges the arbitrary limit on availability of medical marijuana, thus raising the price and making medical marijuana unaffordable to low income patients; challenges requirement for vertical integration of licensees. Complaint filed and answered. 5. Joseph Redner v. FDOH, Case No. 2017-CA-2403: Seeking to allow the growing of cannabis for personal use. Circuit Courts decision granting in favor of plaintiff appealed to the 1st DCA. None of these cases would appear to ultimately impact the Board’s primary decision regarding whether medical marijuana dispensaries should be allowed in Collier County by an amendment to the Land Development Code. With that noted, no legal issues are raised by this item, which requires majority vote for any Board action. -JAK RECOMMENDATION: To direct Staff to continue to monitor medical marijuana implementation and inform the Board of any legislative changes. Prepared by: Jeffrey A. Klatzkow, County Attorney Mike Bosi, AICP, Director, Zoning Division ATTACHMENT(S) 1. Materials from Trulieve (PDF) 2. Staff Notes From Trulieve Site Visit (PDF) 3. Notes from telephone calls with Lee and Collier Sherrif's Offices (PDF) 4. Survey of Collier County Deliveries 10-09-18 (PDF) 11.B Packet Pg. 310 10/23/2018 COLLIER COUNTY Board of County Commissioners Item Number: 11.B Doc ID: 6609 Item Summary: Recommendation to accept staff’s update on the status of the implementation of medical marijuana in Florida. (Mike Bosi, Director, Zoning Division) Meeting Date: 10/23/2018 Prepared by: Title: Planner, Senior – Zoning Name: Jeremy Frantz 09/04/2018 4:20 PM Submitted by: Title: Division Director - Planning and Zoning – Zoning Name: Michael Bosi 09/04/2018 4:20 PM Approved By: Review: County Attorney's Office Emily Pepin CAO Preview Completed 10/03/2018 9:16 AM Zoning Michael Bosi Additional Reviewer Completed 09/05/2018 8:47 AM Growth Management Department Judy Puig Level 1 Reviewer Completed 09/05/2018 2:18 PM County Attorney's Office Jeremy Frantz Level 2 Attorney of Record Review Skipped 09/05/2018 3:58 PM Growth Management Department James C French Deputy Department Head Review Completed 09/06/2018 10:11 PM Growth Management Department Thaddeus Cohen Department Head Review Completed 09/10/2018 9:38 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/18/2018 2:55 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 09/20/2018 1:16 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 09/24/2018 1:09 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 10/14/2018 4:24 PM Board of County Commissioners MaryJo Brock Meeting Pending 10/23/2018 9:00 AM 11.B Packet Pg. 311 11.B.1 Packet Pg. 312 Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1Packet Pg. 313Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1Packet Pg. 314Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1Packet Pg. 315Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1Packet Pg. 316Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1 Packet Pg. 317 Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1 Packet Pg. 318 Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1 Packet Pg. 319 Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1 Packet Pg. 320 Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1 Packet Pg. 321 Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1 Packet Pg. 322 Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 11.B.1 Packet Pg. 323 Attachment: Materials from Trulieve (6609 : Medical Marijuana Status Update) 1 Site Visit To Medical Marijuana Dispensary September 19, 2018: Staff’s site visit with Branch Operational Manager, Trulieve Dispensary, North Fort Myers, located at 13971 North Cleveland Avenue, Suite 16, Fort Myers, Florida Attendees: Jeff Klatzkow, County Attorney, Rich Henderlong and Eric Johnson, Principal Planners Questions: - What is the date this dispensary opened and the hours of operation? o November 2017, M to F: 10 to 7PM, Sat. 10 to 5PM, and Sun. 12 to 5PM. - Have they experienced any incident of loitering, theft, attempted break in, or security breach to date? o None. There is a long waiting line in the morning opening hour. Some patients either wait in their cars or have breakfast at the shopping center’s restaurant. - Is there armed security onsite? o Yes, during hours of operation. They observe and watch out for patients leaving the dispensary until they return to their car. - Have there been any vehicular or pedistrian impacts associated with this site? o None. - Have they received any complaints from surrounding residents? o None. Behind the shopping center there are two to three story multi-family units. The landscaping appeared to be minimal allowing these residential units to be visible from the rear service drive. - What measures have they taken to prevent the product from getting on the streets? o They monitor all patients leaving the store to assure patient safety and no consumption onsite. By law, consumption and use occurs only in the patient’s home. o An unmarked product delivery vehicle comes from their packaging center, headquartered in Quincy, FL. It is different in appearance than the patient delivery vehicle (see photo). These vehicles make multiple deliveries throughout the state and are randomly scheduled. o All products are coded at the point of sale, logged against the remaining inventory, and assigned to each patient by patient ID card and reported to the State. o There are 24/7 surveillance cameras inside and outside. o Initial entry is a waiting room, followed by a separate consultation room, and then limited electronic access to product display and purchase area. Inventory is locked and a safe is located in a separate room. 11.B.2 Packet Pg. 324 Attachment: Staff Notes From Trulieve Site Visit (6609 : Medical Marijuana Status Update) 2 o They will educate and rebuke clients to not sell to anyone out of fear of jeopardizing their business. - What is the maximum range for delivery service from this dispensary site? o This store’s location only services Zone 3S which include Glades, Lee, Hendry, and Collier Counties. o There is a $25.00 delivery charge regardless of travel distance within these counties. o The Company’s dispensary service areas consist of 14 different statewide service area zones that distribute product thru 17 operating dispensaries. o The delivery service charge can vary from $25 to $40 depending on the service area zone. - What percentage of inventory is available or maintained for delivery services? o Approximately 70 percent of all deliveries are to Collier County (majority are elder qualified patients) and 40 percent of all walk-ins are estimated from Collier County patients. o 40 percent of all sales are from delivery services of which 70 percent are to Collier County patients. - What is the most popular product requested for delivery? o The product most requested is a 100 milligram or 300 milligram vaporizer. o Each delivery vehicle makes 18 stops a day. The delivery vehicles are passenger sedans, have tinted windows, and accompanied by two employees (one, the driver, the other a consultant who hand delivers the product to the home patient). The vehicle when vacant is parked at the shopping center 24/7. It is unmarked, typically a Toyota, model Versa. - What is the percentage of patients, who use the products, are Collier County residents? o Approximately 70 percent of all deliveries are to Collier County (majority are elder qualified) patients and 40 percent of all walk-ins is estimated from Collier County. o They service 270 patients a day including 15 new patients per day. o They report an average Collier County daily delivery patient service of 14 to 17; weekly 95 to 110; and monthly 380 to 400. - Is there any sales tax on medical marijuana or medical marijuana devices? o Currently, none. Only on retail items, such as hats, shirts, mugs, etc. - How many employees are full time and what is the employee’s hourly wage? o There are 20 fulltime employees at this location and the hourly wages vary from $10.50 to $13.00. 11.B.2 Packet Pg. 325 Attachment: Staff Notes From Trulieve Site Visit (6609 : Medical Marijuana Status Update) 3 Photos Taken 9-19-18: United Plaza Shopping Center- Trulieve, 13971 N. Cleveland Ave., North Fort Myers, FL Waiting Room Product Sales Room Product Education Product Display Case 11.B.2 Packet Pg. 326 Attachment: Staff Notes From Trulieve Site Visit (6609 : Medical Marijuana Status Update) 4 Retail Case and Product Education Typical Delivery Vehicle LEE COUNTY DISPENSARIES LOCATION MAP -Trulieve, North Fort Myers and Curaleaf, Fort Myers 11.B.2 Packet Pg. 327 Attachment: Staff Notes From Trulieve Site Visit (6609 : Medical Marijuana Status Update) June, 26, 2018: Telephone Call Notes, Initiated by Staff, Regarding Qualified Patient Registry, to Collier County Sheriff Office, James Williams, Chief of Investigations The Sheriff’s Office has no intention of setting up a tracking or monitoring system to account for the total number of actively registered patients or patient use of home delivery services with the DOH’s Office of Medical Marijuana. Further, this information is confidential between the patient and patient’s doctor and law enforcement’s access to DOH’s registry is restricted to the extent there must be a probable cause for criminal investigation or a criminal predicate. Any an attempt to back door information by anyone who knowing, willing, or have miss used “confidential information” can result in a third degree felony. The use of the registry shall be very limited by their Office. September 19, 2018: Telephone Call Notes, Initiated by Staff, Regarding Trulieve’s Dispensary, to Lee County Sheriff’s Office, Captain John Redding of The Intelligence Section Two officers entered Trulieve’s office, after the dispensary’s initial opening. The Office Manager, was initially reticent to their questions but became very cooperative. The Department has never had any criminal incident related to the dispensary operations or its location. Additionally, they have not received any complaints or finding of loitering near the site. They are satisfied with the security systems and current operations of the dispensary. They had several cases of marijuana users who were stopped for a driving violation, claiming the substance is medical marijuana, when in fact the plant, bud, or flower found are not medical marijuana. These are the only cases mentioned that are related to medical marijuana. 11.B.3 Packet Pg. 328 Attachment: Notes from telephone calls with Lee and Collier Sherrif's Offices (6609 : Medical Marijuana Status Update) Statewide Licensed Medical Marijuana Dispensaries (10/05/18) 58 Approved Dispensing Locations - Delivery Service Survey MMTC Company Name Nearest Location How many times per week do you deliver in Collier County? How many customers are from Collier County Contact Date/Source Trulieve North Ft. Myers Miami (2) Daily: 14 to 17 County Patients 70% of deliveries. 40% of walk-ins. 10-09-18 Branch Operations Manager Surterra Wellness North Port Miami Beach Waiting Response (WR) 10-09-18 Website Email Curaleaf Ft. Myers Miami Will provide and extended an offer to make BCC presentation. 10-09-18 National VP of Government Relations Knox Medical St. Petersburg Delivery Statewide Free WR 10-09-18 Website Email Liberty Health Sciences-Aphria Miami Beach St. Petersburg Delivery Statewide Daily- Planning new delivery hub in Fort Myers. WR 10-10-18 Marketing Director and Delivery Coordinator Vidacann Bonita Springs- Pending Coming Soon No delivery in Collier County. 10-09-18 Website Email AltMed Florida Delivery limited to 25 mile radius of Sarasota No delivery in Collier County. Several dozen. 10-10-08 Global Marketing Director Grow Healthy Delivery Statewide Free WR 10-09-18 Cultivation/Processing Manager The Green Solution Delivery limited to 120 mile radius of Gainesville No delivery in Collier County. 10-09-18 Website Email Columbia Care 7-5-18 new approval Initial delivery in 40 mile radius of Arcadia No delivery in Collier County. 10-09-18 Website Email 11.B.4 Packet Pg. 329 Attachment: Survey of Collier County Deliveries 10-09-18 [Revision 2] (6609 : Medical Marijuana Status Update)