Harborside Health Center

1. Harborside Health Center Steve DeAngelo Executive Director

2. Harborside Health Center • CA Corporation (By laws require non-profit operation) • Licensed by City of Oakland • 110,000 registered patients • 100+ employees • Living wage • Health insurance • 401K • Generous PTO

3. Harborside Health Center • 600-800 patients/day • 8000 square foot facility • Emphasis on safety • Well-patrolled, lighted parking lot • 28-camera surveillance system • 5 safety staff on duty at all times

4. Harborside Health Center • HHC 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

5. Harborside Health Center • Access 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

6. Harborside Health Center • 250+ different types of cannabis medicine every day • Flowers • Concentrates • Extracts • Tinctures • Capsules • Sublingual sprays • Beverages/edibles • Topical ointments, salve, lotions, etc.

7. Harborside Health Center • Like wine, cannabis has different varietals • Merlot, Syrah, Pinot Noir • Kush, Purple Erkle, Haze • Cannabis varietals produce different effects • Patients select those varieties most effective

8. Harborside Health Center • All 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

9. Harborside Health Center • HHC is a non-profit, community service organization • Net revenue returned to patients & community via free patient services, charitable donations & direct community outreach

10. Harborside Health Center • Complete Holistic Health Care Clinic • Deeply experienced, licensed practitioners • Beautiful, dedicated healing space • Integrated, multi-therapy approach

11. Harborside Health Center • Care 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

12. Harborside Health Center • Patient 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

13. Harborside Health Center • Substance Mis-use Support Program • Survey revealed 15% of patients wanted help w/ alcohol, tobacco, pharmaceuticals, street drugs • Few who wanted help with cannabis

14. Harborside Health Center • Trained & 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

15. Harborside Health Center • 1st cannabis friendly substance program • Anecdotal reports: addicts use cannabis to withdraw • Cannabis as the Gateway out of Addiction • Provides solution for 12-step refugees

16. Harborside Health Center • HHC 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

17. Harborside Health Center • Charitable 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

18. Harborside Health Center • Direct 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.)

19. Harborside Health Center • HHC dedicated to innovation from start • Illegal since 1937, cannabis locked into primitivism • Huge opportunities to help patients & build business • Apply modern tools & techniques to cannabis

20. Harborside Health Center • HHC 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

21. Harborside Health Center • Early 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

22. Harborside Health Center • HHC 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

23. Harborside Health Center • HHC 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

24. Harborside Health Center • CBD-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

25. Harborside Health Center • HHC 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

26. Harborside Health Center • Project 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

27. Harborside Health Center • HHC 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

28. Harborside Health Center • What 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

29. Harborside Health Center • Prop 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

30. Harborside Health Center • Earliest 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

31. Harborside Health Center • Despite 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

32. Harborside Health Center • Facilities 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

33. Harborside Health Center • 2004: 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

34. Harborside Health Center • City 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

35. Harborside Health Center • Most 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

36. Harborside 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

37. Harborside Health Center • Oakland 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

38. Harborside Health Center • Key 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

39. Harborside Health Center • Oakland 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

40. Harborside Health Center • Oakland’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

41. Harborside Health Center • In 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

42. Harborside Health Center • Oakland 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

43. Harborside Health Center • Oakland 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

44. Harborside Health Center • In 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

45. Harborside Health Center • Intense 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

46. Harborside Health Center • These 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

47. Harborside Health Center • Refusal 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

48. Harborside Health Center • Refusal 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

49. Harborside Health Center • Refusal 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

50. Harborside Health Center • Experience 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