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Medical pot sellers cash in with direct deliveries

Monday, Jun. 07, 2010 | 08:33 AM

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Undeterred by laws that have closed storefront dispensaries, medical marijuana sellers across the state are flourishing -- by delivering pot directly to homes and offices.

Hundreds of these unregulated delivery businesses have sprung up in recent months -- a sign of how quickly California's fabled pot industry is moving from the shadows and into uncharted legal territory.

In Fresno, some dispensaries have moved to unincorporated areas since the city began forcing storefronts to close. Some of them deliver marijuana to Fresno residents, and the city attorney concedes the city has little authority to stop them.

Statewide, hundreds of "mobile dispensaries" advertise a wide range of strains and other products, such as brownies and cookies laced with THC, the active ingredient in marijuana. One service delivers organic vegetables along with medical marijuana, as part of a "farm-direct" service.

Some operate in multiple counties, including jurisdictions where storefront dispensaries are banned, or make local deliveries to drop-off points, such as Starbucks parking lots and gas stations. At least three ship to clients across the state using private prescription-drug couriers.

About this story

This story was reported by California Watch in collaboration with KQED Public Radio, with assistance from the USC Annenberg School for Communication & Journalism and The Fresno Bee. California Watch, a project of the nonprofit Center for Investigative Reporting, is supported by grants from the James Irvine Foundation, the William and Flora Hewlett Foundation and the John S. and James L. Knight Foundation.

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Although delivery of medical marijuana is not a new phenomenon, advocates say the growth of these services could be a game-changer in the state's pot war, which pits law enforcement, elected officials and community groups in some localities against dispensary owners and patients.

And these businesses could increase in popularity if voters approve an initiative on the November ballot that would legalize pot possession.

"They're delivering the product better, cheaper, more discretely and probably at a higher profit rate than dispensaries," said Allen St. Pierre, director of the National Organization for the Reform of Marijuana Laws, which advocates legalization. "These delivery services are starting to grab more and more market share."

Lawful or not?

A question remains on whether these services are legal. Some local and federal officials say delivery services violate the 1996 Compassionate Use Act, which legalized medical marijuana in California for qualified patients, as well as other laws. The services are viewed as a way to circumvent local regulations clearly banning dispensaries.

"They're transporting drugs," said Tommy LaNeir, director of the National Marijuana Initiative, which is funded through the White House's drug policy office. "It's a trans-shipment operation that's trying to bypass the ordinances that have been set up by cities and counties. It's as simple as that."

The exact number of delivery services operating in California is unclear, since the state does not keep a registry of medical marijuana distributors or outlets. In April, 758 services advertised direct delivery of marijuana to patients on Weedmaps.com, a commercial listing service.

Those numbers have nearly tripled in the past 18 months and grown by 39% since February, as more counties and cities began regulating storefront dispensaries or banning them outright, according to Justin Hartfield, owner of Weedmaps.com.

More than half the couriers who advertised in April said they were located in the Los Angeles region. Other services clustered around metropolitan regions, such as San Francisco, San Diego and Sacramento -- with most regions experiencing steady growth.

Local connection

Five services were advertising delivery in Fresno County on Weedmaps in April. Others have since opened up, including HealthCannabis, which proclaims itself "Fresno's first 24-hour delivery service," and has a Web site calling Fresno "a great place to live if you are a medical marijuana patient or want to become one."


Similar stories:

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  • Pot groups hope Ore. race sends feds a message

  • Compliant Fresno Co. pot grower stymied

  • Fontana medical pot dispensary shut down

  • Appeals court rules against medical marijuana bans

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