Harborside Health CenterHarborside Health CenterSteve DeAngeloExecutive Director

Harborside Health CenterHarborside Health CenterCA Corporation (By laws require

non-profit operation)Licensed by City of Oakland110,000 registered patients100+ employees

◦Living wage◦Health insurance◦401K ◦Generous PTO

Harborside Health CenterHarborside Health Center600-800 patients/day8000 square foot facilityEmphasis on safety

◦Well-patrolled, lighted parking lot◦28-camera surveillance system◦5 safety staff on duty at all times

Harborside Health CenterHarborside Health CenterHHC organized as collective

◦All patients must be legally qualified◦All patients join collective, agree to

rules◦Each patient cross-authorizes

cultivation ◦All medicine sourced from collective

members

Harborside Health CenterHarborside Health CenterAccess restricted to qualified

patients◦Patient identification examined twice◦State-issued photo ID also required◦All patient recommendations double

verified◦New patients interviewed, given

orientation session

Harborside Health CenterHarborside Health Center250+ different types of cannabis

medicine every day◦Flowers◦Concentrates◦Extracts◦Tinctures◦Capsules◦Sublingual sprays◦Beverages/edibles◦Topical ointments, salve, lotions, etc.

Harborside Health CenterHarborside Health CenterLike wine, cannabis has different

varietals◦Merlot, Syrah, Pinot Noir◦Kush, Purple Erkle, Haze

Cannabis varietals produce different effects

Patients select those varieties most effective

Harborside Health CenterHarborside Health CenterAll medicine tested by analytical

laboratory◦Tested for safety and potency◦Harmful contaminants screened out:

AHPA standard◦Patients provided cannabinoid profile

pre-sale◦Unique batch # enables product

tracking & recall

Harborside Health CenterHarborside Health CenterHHC is a non-profit, community

service organization◦Net revenue returned to patients &

community via free patient services, charitable donations & direct community outreach

Harborside Health CenterHarborside Health CenterComplete Holistic Health Care

Clinic◦Deeply experienced, licensed

practitioners◦Beautiful, dedicated healing space◦Integrated, multi-therapy approach

Harborside Health CenterHarborside Health CenterCare package program for low-

income patients◦Liberal needs test, 6 month

qualification◦1.5 g mid-grade medicine/week/$20

value◦Serves 1000 patients/week

Harborside Health CenterHarborside Health CenterPatient Activist Resource Center

(PARC)◦Trains and encourages patient

activism◦Dedicated computer, phone, fax◦Training materials and assistance◦Free gram of medicine for each hour

worked

Harborside Health CenterHarborside Health CenterSubstance Mis-use Support

Program◦Survey revealed 15% of patients

wanted help w/ alcohol, tobacco, pharmaceuticals, street drugs

◦Few who wanted help with cannabis

Harborside Health CenterHarborside Health CenterTrained & licensed addiction

counselor hired◦1 on 1 counseling, face to face or

online◦3 different groups meet each week◦Efficacy of program is regularly

surveyed Expect to publish 1st efficacy study w/

dramatic results

Harborside Health CenterHarborside Health Center1st cannabis friendly substance

program◦Anecdotal reports: addicts use

cannabis to withdraw◦Cannabis as the Gateway out of

Addiction◦Provides solution for 12-step

refugees

Harborside Health CenterHarborside Health CenterHHC provides patient education

◦Grow your own medicine classes◦Library of cannabis related books◦Extensive stock of free pamphlets &

booklets◦ASA peer counseling for responsible,

compliant use

Harborside Health CenterHarborside Health CenterCharitable donations include:

◦Americans for Safe Access◦Students for a Sensible Drug Policy◦Adopt-A-Family◦Youth Athletic League◦Police Bereavement Fund◦United Seniors of Alameda County

Harborside Health CenterHarborside Health CenterDirect community outreach

includes:◦Red Cross Blood Drives◦National Night Out◦Adopt-A-Spot◦Winter Blanket and Warm Coat

Collection◦Holiday Toy Drive◦Holiday Food Drive (won 1st prize for

most food with over 8,800 lbs.)

Harborside Health CenterHarborside Health CenterHHC dedicated to innovation

from startIllegal since 1937, cannabis

locked into primitivismHuge opportunities to help

patients & build businessApply modern tools & techniques

to cannabis

Harborside Health CenterHarborside Health CenterHHC 1st & most important innovation:

lab testing“If I am going to call it medicine, I need to

know what is in it, and I need to know that it is safe”

◦2006: all Bay Area labs refuse to test◦2008: Steep Hill Lab formed.18 months of

R&D begin ◦2009: regular testing services launched

late in year For 1st time in 10,000 years, content is known 2

buyer

Harborside Health CenterHarborside Health CenterEarly lab testing was costly and

slow◦Over $100/test, 3-5 day turn around

for results◦Only most dedicated dispensaries

would pay or have ability to hold product till results arrive

◦Result: technology existed, but was underused

Harborside Health CenterHarborside Health CenterHHC and SHL launch new R&D

program ◦Develop lower cost technique, more

rapid results After 2 years of work, SHL intros

QuantaCann Remote terminal placed in each dispensary Radically cuts both cost and turnaround time

Much more medicine can now be tested

Harborside Health CenterHarborside Health CenterHHC also introduced CBD-rich

cannabis to the market◦CBD- excellent medical efficacy, no

psycho-activity◦Testing reveals almost no CBD in our

medicine Deeply disturbing 2 learn of lack of CBD At same time CBD research is being

released

Harborside Health CenterHarborside Health CenterCBD-rich medicine serves some

patients better◦Cannabis-naïve patients◦Pediatric cannabis patients◦Patients with grave illnesses that

respond to CBD◦Patients with emotional issues that

could be aggravated by THC-rich medicine

Harborside Health CenterHarborside Health CenterHHC initiates Project CBD

◦Identify and collect CBD-rich genetic material

◦Provide CBD-rich cuttings/seeds to trusted growers

◦Grow CBD-rich medicine for immediate patient needs

◦Produce & sell CBD-rich clones & seeds

Harborside Health CenterHarborside Health CenterProject CBD hugely successful

◦Several CBD products on HHC shelves everyday Tinctures & sprays, as well as

flowers/concentrates

◦Many other well-managed dispensaries now offer

◦Wave of articles and research generated

◦1000s of patients receive more effective medicine

Harborside Health CenterHarborside Health CenterHHC approach has been hugely

successful◦Inspired others to take wellness

approach◦Possible to find some similar

dispensaries But most are quite different, smaller

Less services, fewer contribution to community More intoxication than wellness approach

Harborside Health CenterHarborside Health CenterWhat made the Harborside

success possible?◦Part was my personal vision,

nurtured for years◦Other critical part was City of

Oakland decision Regulate cannabis dispensaries in good

faith

Harborside Health CenterHarborside Health CenterProp 215 passed in 1996

◦Called on CA Assembly to regulate Assembly fails to

◦Gray area created: legal under state law, no licensed system of distribution

1998: unlicensed dispensaries open to serve patient needs, mostly in Bay Area

Harborside Health CenterHarborside Health CenterEarliest dispensaries opened by

activists◦Long on good intention, short on

start up capital and business experience

◦Facilities reflected their background◦No staff training, no build out, no

POS, no security

Harborside Health CenterHarborside Health CenterDespite disadvantages, activist

dispensaries thrive◦1000s of patients, millions of dollars

That amount of money in gray area attracts people comfortable working in gray areas

◦People with different backgrounds open Porn, gambling, dealers of illicit

substances

Harborside Health CenterHarborside Health CenterFacilities of thug dispensaries

reflected operators background and priorities◦Fortresses with barbed wire, bullet-

proof glass◦Intimidating armed guards◦Patients expected to make selection

quickly and get out with as few questions as possible

Harborside Health CenterHarborside Health Center2004: 14 unlicensed dispensaries

cluster in Oakland◦Combination of activist and thug

dispensaries◦Problems begin: cluster causes parking

problems and stiff competition for patients Cars double-parked; neon cannabis signs sprout

up touts on the street with coupons Students from nearby charter school handed

leaflets◦Facilities themselves often unsafe, fail to

meet city req One notorious spot called the Third Floor could

only be accessed by a scary climb up narrow rickety stairways, clearly impossible for anybody seriously ill to navigate

Harborside Health CenterHarborside Health CenterCity of Oakland responded w/ 1st

dispensary licensing◦Good faith attempt: balance patient &

community ◦# of dispensaries reduced to 4, w/ rigorous

licensing◦1000 feet from sensitive sites & residential

zones◦No clustering of dispensaries, must meet

parking req◦Signage restricted to unlighted 20 square feet◦All facilities strictly required to meet fire &

safety req

Harborside Health CenterHarborside Health CenterMost important: competitive RFP

process to award◦Business, security, training,

neighborhood relations plans required◦Proof of adequate and legitimate

capitalization◦Resume of appropriate experience◦Criminal background check ◦Test of knowledge of medical cannabis

law◦Personal interview with City Manager

Harborside Health CenterHarborside Health Center Very rigorous and competitive process 4 permits awarded in initial 2004 round

◦ 2 of initial 4 permits revoked in the first year HHC competed with 14 other candidates

◦ Was awarded one of two vacant permits HHC vision developed over course of many years

◦ Vision of comprehensive holistic health center◦ Beautifully built out and decorated and maintained◦ Place that could provide education and community

As well as dispensing cannabis medicine◦ A place that would promote cannabis as a wellness

product, instead of an intoxicant◦ An institution that would demonstrate cannabis

could be distributed in way that brings benefits to our community, not harms

Harborside Health CenterHarborside Health CenterOakland regulatory system

provided fertile ground◦I was confident we could win

competitive process◦License provided confidence to raise

sufficient funds Cap on # of dispensaries guaranteed market

◦Good faith posture of city provided confidence glitches could be worked out

Harborside Health CenterHarborside Health CenterKey aspects of Oakland’s

regulation:◦Competitive RFP process◦Reasonable cap on # of dispensaries◦Rigorous investigation of personal

qualifications◦Proximity limits from sensitive sites

and dispensaries

Harborside Health CenterHarborside Health CenterOakland regulation gave me

confidence:◦To raise $400,000+ in start up captital◦To commit to $16,000 in monthly rent◦And a payroll many multiples as large◦It allowed me to recruit and pay well

qualified pros◦& continue to re-invest into HHC

Harborside Health CenterHarborside Health CenterOakland’s good faith approach gave

it◦The nations model dispensary in

Harborside◦And 3 other smaller and less ambitious

facilities That also have excellent relations with the city

◦Completely solved problems of unlicensed spots

◦Even led to an important new source of revenue

Harborside Health CenterHarborside Health CenterIn 2009 I approached Oakland’s

other licensees◦Proposed local tax on cannabis sales,

all agreed◦To help the City, demonstrate our

commitment Voters of Oakland approved 5% tax on

cannabis HHC now one of Oakland’s top ten tax payers

Harborside Health CenterHarborside Health CenterOakland regs are win-win for

patients and community◦Patients- safer more pro managed

dispensaries◦Citizens- cluster problems solved,

proximity respected◦Law Enforcement crime down in

dispensary neighborhoods◦Treasury- almost $2 million/year

additional revenue

Harborside Health CenterHarborside Health CenterOakland contrasts with rest of

state-especially LA◦Oakland acted early, before many

unlicensed opened◦Oakland welcomed dispensaries, did

not try to ban◦Involved stakeholders in developing

regulations◦Objective was always to balance

needs

Harborside Health CenterHarborside Health CenterIn Los Angeles, San Jose & many other

parts of state ◦Has been a complete failure (refusal?) to

regulate◦To this day, there is no lic & reg of

dispensaries Lack of regulation deters reputable dispensary

operators & investments Invites entry by thuggish, gray market operators

Even organized crime

◦100s of dispensaries all over LA and San Jose Inappropriate locations, unknown operators

Harborside Health CenterHarborside Health CenterIntense competition + lack of

regulation leads to◦Same kind of problems in early

Oakland & even worse excesses:

ID not rigorously checked, sales made to unqualified

No limits on patient purchases Cannabis purchased illegally; sent out of state

Harborside Health CenterHarborside Health CenterThese problems direct consequence

lack of regulation◦None exist in Oakland or Berkeley or SF,

all regulated◦Lack of regs also reduces quality of

patient care◦Unrestrained competition sparks race to

the bottom◦Not enough market share to provide

patient services Or build out their facility, lab test medicine, or

security

Harborside Health CenterHarborside Health CenterRefusal to regulate driven by

opposition to 215◦Often led by law enforcement or law

enforcement organizations◦Or City Attorneys or District

Attorneys who fear validating medical cannabis by licensing it

Harborside Health CenterHarborside Health CenterRefusal has taken different forms

in different cities◦Outright bans on dispensaries◦Moratoriums leaving dispensaries

unregulated◦Unattainable proximity restrictions◦Poison pill provisions

Has in common lack of a good faith effort that recognizes legitimate needs of patients

Harborside Health CenterHarborside Health CenterRefusal to regulate hurts whole

community◦Prevents the establishment of facilities like

HHC Where medicine is tested, and staff background

checked, taxes are paid, police burden reduced

◦Invites thuggish, gray market operators into market

◦Leads to inappropriate locations & illegal operation

◦Prevents collection of desperately needed tax revenue

Harborside Health CenterHarborside Health CenterExperience of Oakland & HHC

demonstrates◦Effective, reasonable regulation benefits all◦Provides patients safer meds, higher

standard of care◦Appropriately protects sensitive sites◦Encourages good community relations◦Reduces the burden on law enforcement◦ Increases safety of neighborhoods w/

dispensaries◦Offers great model for future regulations

Harborside Health CenterHarborside Health CenterSteve DeAngeloExecutive Director