Articles Posted in California Marijuana Dispensaries

California was the first state to legalize medicinal marijuana but the state still requires marijuana transactions to be made using cash.

Our Los Angeles marijuana lawyers know that the quickest way to look like you’re up to something is to handle all your business with cash so why does California require its legal taxpaying marijuana industry to use only cash?

Recently the United States Justice and Treasury departments announced that they would put an end to the ludicrous practice of forcing marijuana businesses to deliver duffel bags of greenbacks to their landlords, accountants and lawyers.
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Medical marijuana is a drug and a controlled substance. Patients are already using it in more than a dozen states, including California, and it will be available in Illinois next year. Still, it remains tightly regulated by state officials and illegal under federal law.

In preparation for the reformed law in Illinois, our Los Angeles marijuana lawyers have learned that pharmacists are seeking permission to involve themselves in the process.

Several pharmacists have made their case to the Illinois State Board of Pharmacy members, who advise a state agency involved in drafting rules for Illinois’ new medical marijuana program. The board members did express some interest in the idea, however they stopped short of fully endorsing it.
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Medical marijuana laws are in a constant state of flux and with local, state, and federal laws all in play there is a multitude of overlaps and conflicts.

Our Orange County marijuana lawyers know that with so many laws in play the legal landscape concerning marijuana can be very confusing, and even overwhelming.

The various laws and regulations can easily conflict with each other and make it difficult for medicinal marijuana patients to know what is allowed in their jurisdiction.
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The Huffington Post reports, that the city council in Santa Monica will review a bill that allowed two medical marijuana dispensaries.

Our marijuana lawyers in Los Angeles are dedicated to keeping the public informed about recent news concerning medical marijuana and the rights of patients and collectives.

The Huffington Post reported that the legislation has a number of limitations that greatly hamper the locations of the two proposed dispensaries.
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Members of House of Representatives have sent a letter to a U.S. Attorney sitting in California requesting that she back off marijuana prosecutions in the state. The four Democratic members of Congress are cautioning the California Attorney General that her behavior is economically prohibitive and counterproductive to the interests of the state.

Our marijuana lawyers in Los Angeles know that federal drug policy is still at direct odds with the state laws of California and that marijuana sales produce revenue for the state.

The U.S. Attorney sits in a California district with a number of the most well-respected and best known medicinal marijuana dispensaries in the United States.
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Some California localities are trying to impose new regulations that would greatly reduce the total number of medicinal marijuana dispensaries.

Our Los Angeles marijuana lawyers are aware that some political leaders continue to suggest new methods of regulation in an attempt to shrink the growing number of dispensaries and force them to the outskirts of the city.

As politicians strategize new regulation, marijuana advocates are promising to collect signatures to force a vote and potentially overturn new regulations as they have with past regulations.
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Prosecutors in San Diego appear determined to see Jovan Jackson behind bars.

The U.S. Navy veteran has found himself the prime target of a very vocal anti-marijuana district attorney, who has waged a years-long battle to eliminate marijuana dispensaries from the county.

Our California marijuana dispensary lawyers understand that the case first erupted in 2008, when law enforcement raided Jackson’s dispensary. The following year, he was tried for possession and sale of marijuana. A jury acquitted him. The prosecutor was dissatisfied, and Jackson was once again the target of another raid in 2009. At his second trial, he was essentially barred from presenting evidence of California law green-lighting the operation of dispensaries. He was convicted. However, that conviction was later overturned in a 2011 landmark decision that resulted in dispensary operators being granted the right to a defense in state court.
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It’s part of a Congressional leader’s job to take action in Washington D.C. to protect businesses and industries that are important to one’s home state.

However, our Los Angeles marijuana lawyers know it’s only been recently that Congress has taken to protecting the marijuana industry – both medical and recreational, depending on the state laws.

In early June, members of the U.S. House of Representatives, representing California, Oregon, Washington and Colorado held a joint press conference just outside the Capitol, advocating legislation that would allow marijuana businesses that are legal in their states to be granted the right to take standard federal tax deductions.

As it stands right now, marijuana cultivators and retailers are not eligible for an array of deductions, such as wages and rent, when they are tabulating their federal taxes. If they hire a veteran, they aren’t allowed to claim the work opportunity tax credit. They can’t get credit for irrigation systems they purchase from American manufacturers.

The result is that most marijuana dispensaries end up paying double what other business owners do. In some cases, dispensary owners have had to dip into their retirement and 401(k) savings in order to continue to operate.

This of course belies the misconception that these individuals are in it for the vast profits. The problem is that for those who want to do everything on the up-and-up, it becomes cost prohibitive – which is no doubt the intention of those who oppose marijuana tax reform.

Changing this would be a huge benefit not only to medical marijuana facilities, but also to local economies and to patients, who would ultimately see a reduction in the overall price of their medications.

In addition to those standard tax exemptions, the lawmakers say their fellow legislators have a duty to alter federal banking laws so that marijuana enterprises aren’t forced to operate as cash-only businesses.

A separate federal measure has also been introduced that would protect medical marijuana facilities from federal civil forfeiture action, by which the U.S. Justice Department moves to seize property in which marijuana dispensaries operate, pursuant to clause in the Controlled Substances Act that was never intended for this purpose.

All three of these actions are going to prove critically important as we press forward on this together as a nation. We have 20 states plus Washington D.C. that have legalized marijuana for medicinal purposes. Two other states, Colorado and Washington, have legalized the drug for recreational use. This is not a fringe movement. We are not going away.

The Congressmen were joined by National Cannabis Industry Association members. There were men and women in professional business suits and ties. These were individuals who were there to display their commitment to a legal, workable system that would provide safe access for patients and equality for those entities that exist to help them.

Still, we recognize these are uphill battles. Thus far, only a handful of Republicans have backed these efforts.
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Santa Ana medical marijuana dispensaries and landlords are the latest target of an aggressive federal crackdown on state-sanctioned medical marijuana providers.

Our Los Angeles marijuana lawyers were troubled to learn that federal prosecutors have focused on every single known dispensary in the city – 63 in all.

Prosecutors say the facilities are operating illegally. Two search warrants have already been executed and three federal asset forfeiture complaints have been filed against Santa Ana properties were it is believed a total of seven marijuana dispensaries are operating.

As for the remaining 56 stores, prosecutors have fired off warning letters to each location, demanding their immediate closure, as their sales are illegal under federal law.

We know this dramatic action is the latest in a long string of harassment and abuse faced by those who risk much to provide a valuable service to California’s medical marijuana patients. The crackdown first began in late 2011, despite assurances from President Barack Obama that medical marijuana in states where it is legalized would not be a top priority for federal officials.

Although California was the first state to legalize marijuana, way back in 1996 with Proposition 215, the drug is still classified as a Schedule I illegal substance under federal law.

Prosecutors say forfeiture actions were filed against landlords and property owners who “knowingly allowed commercial marijuana stores to operate.”

Those sites included the Green Love Collective and The Dispensary Store. Both operations are housed at a structure on East 17th Street, which is owned by an area chiropractor who has previously been cited by city leaders for administrative code violations.

Another location is in the 1600 block of East Edinger, owned by that same chiropractor. Three dispensaries – Well Greenz, Club Meds and SoCal Compassion – are at that same location. The city had filed an injunction against the chiropractor/owner last year in connection with these operations.

The final location is on East 4th Street, which houses two dispensaries: Healing OC and J Pacific Life. Those sites have also received numerous closure warnings and city administrative actions.

Each of the Santa Ana lawsuits were filed by U.S. Attorney Andrew Birotte Jr.

Although these types of fights have been going on for years, the federal government tends to have the upper hand in such cases. That’s why dispensary owners, landlords and patients need to take careful consideration when seeking legal representation.

Our Los Angeles medical marijuana lawyers for years have been defending the rights of these individuals, with skilled attorneys dedicated to either criminal or civil law – so that you may be assured of a depth of experience with regard to the situation you are facing.

Despite the government’s successes, it’s not all been bad news.

Late last year in Vallejo, a judge tossed out charges of two marijuana dispensary owners whose operations were raided last spring.They had been criminally charged with marijuana possession and sale and operating an illegal dispensary. However, the county superior court judge said that dispensaries that comply with the state’s Compassionate Use Act of 1996 and the Medical Marijuana Program Act are allowed to continue to operate.
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As both Colorado and Washington legislators sort through a system of regulation for sales, taxes and enforcement of legalized marijuana, many others are gearing up as well.

Our Los Angeles marijuana lawyers understand that investors are already beginning to back those with well-designed business models. Farmers are studying more about cultivation. Some medical dispensaries are readying to make the transition into retail sales. Laboratories that currently test the potency of the plant are working to determine who they might be able to meet the standards each state is slated to put in place.

There is even a name given to these hopefuls: “potrepreneurs.”

Still, until the federal government shifts its position on marijuana, many of these operations may never really get off the ground. A number of those who are hoping to enter the industry are also concerned that they might have the property and business pulled out from underneath them, concerned they might even end up in federal prison.

Although the U.S. Justice Department has yet to issue a response on how it will respond to the movement in both states, legally, federal laws trump state laws, and state laws can be quashed if they “frustrate the purpose” of the federal government. Some have said it is difficult to see how the state measures would survive a court challenge.

Then again, support for medical and recreational marijuana in this country has never been higher.

Yet even those who are optimistic about the future know it will probably be quite costly. In Colorado, for example, the state’s medical marijuana industry was doing quite well as of 2009. But since then, the industry has shrank by about a third, partially due to natural market adjustment and also partially as a result of federal crackdowns.

Dispensaries seeking to insulate themselves as much as possible need to heavily invest in legal advice.

And medical marijuana probably isn’t going anywhere anytime soon either. IBISWorld Industry recently named medical marijuana to its growing list of industries report earlier this month. The drug is being tapped for an expanding array of conditions, with doctors now looking to use it to ease certain symptoms for Alzheimer’s patients. The industry analyst firm reported that expected annualized revenue growth is expected to expand by about 14 percent over the next five years, reaching about $1.7 billion by 2013.

For whatever unsupported arguments police unions or prosecutors put forth about these operations contributing to neighborhood decay, are a lot of reasons to believe the legalized marijuana would be good for local, state and federal economies.

For starters, states could expect to save an estimated $14 billion on prohibition enforcement. That’s right off the top, without anything else invested. In Washington State, WPTV reports that marijuana legalization is estimated to rake in approximately $500 million in annual tax revenues. Similarly in Colorado, the Colorado Springs Business Journal reports that legalization there should bring in about $60 million annually in tax revenue.

Legalization would also go a long way in reducing prices of the drug, which would in turn leave patients and users with more money to spend on other things which in turn stimulates economic growth.

It’s further estimated that annually, the cost of marijuana incarceration throughout our prisons stands at about $1 billion annually. That’s more money in taxpayer coffers.

In California, marijuana growers cultivate about $14 billion worth of the drug annually. That makes it the state’s most valuable cash crop.

It’s worth noting that the illegal marijuana industry generates about $36 billion annually. That’s not only money in our pockets, that’s less money in the hands of violent gangs and cartels.
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