California Marijuana Dispensaries

December 21, 2011

Los Angeles Medical Marijuana Supporters Heading to the Polls

Advocates of medical marijuana hope to create a system that licenses, regulates and taxes California medical marijuana dispensaries and collectives as a way of making peace with federal authorities, who seek to shut them down, The Associated Press reports.

Our Los Angeles medical marijuana lawyers think it’s unfortunate that small business owners who are simply trying to make a living feel they must add regulations and taxes in order to stay in business. But, we also recognize that the pressure that has come down from federal and state agencies in recent months has been overwhelming.

In an effort to garner votes in a state that could make a big difference in the November elections, federal authorities have used the threat of prosecution of not only businesses, but the people who rent to them. This threat has caused commissioners and town council members to create ordinances that ban dispensaries and collectives, even though it is legal under California law.

And now, in an effort to get authorities off their backs, medical marijuana supporters are making some concessions and trying to show authorities they just want to be able to operate their businesses.

The Associated Press reports that after months of looking at the issue, medical marijuana activists have proposed an initiative for the 2012 ballot that would create a Board of Medical Marijuana Enforcement that would have authority to oversee businesses and non-profit groups that grow, distribute, sell or test pot in its raw state as well as in finished goods, including food products.

The Secretary of State and Attorney General must clear the proposal before supporters can seek signatures to attempt to get the initiative placed on the upcoming election’s ballot. Supporters feel that by clearing the issue with state leaders and allowing the state to monitor the industry would show the federal government that businesses are serious about ensuring that marijuana goes to those who are authorized, medically, to have it.

A problem in recent years is that some marijuana growers and distributors have used the state’s law to sell to outsiders — even shipping it to other states where it’s not legal for medical purposes — under the guise of legal marijuana business. This has given a bad name to the many legal companies that are simply trying to make a living.

In October, federal prosecutors throughout the state made an effort to shut down pot growers and distributors they believe are acting as a front for illegal drug dealers. Supporters of the measure hope that this effort appeases federal authorities from coming in and attempting to shut down legitimate businesses.

The initiative would also require local governments to allow at least one dispensary for every 50,000 residents so that all medical marijuana patients have access to this important drug. Registration and application fees would fund the board.

The proposal, if it gets on the ballot and becomes law, would be the first legislative change to the state’s 15-year-old medical marijuana law since 2003, when lawmakers required counties to distribute identification cards to patients and set guidelines for how much users could get.
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December 19, 2011

Medical Marijuana Dispensaries In Riverside County Require Legal Representation

By Cannabis Law Group

The hits just keep coming for hard-working medical marijuana dispensaries in California, especially those in Riverside County where authorities have announced they are going to try to shut them down, The Desert Sun is reporting.

Ever since California voters agreed to legalize marijuana some 15 years ago, it has been a constant struggle. In recent months, federal authorities have cracked down, forcing a political agenda on the many companies that have operated — legally — under California law. But that pressure has created problems on a local level. Many timid local officials have succumbed to federal pressure and begun going after these businesses, too.

Our California medical marijuana lawyers are well-versed in the controversy going on not only in Riverside County, but also in other communities throughout California. We are willing and able to represent these businesses who are hard-working and who are just trying to run their companies.

The Desert Sun reports that the Riverside County Board of Supervisors has given its attorneys permission to sue pot shops in the unincorporated county as well as property owners who allow them to operate. The only alternative, county officials say, is for the shops to close down.

The county passed ordinances banning medical marijuana dispensaries in 2006, the newspaper reports, though officials last year considered an ordinance last year that would allow for a regulated form of dispensaries. They later decided to uphold the ban and keep it in place.

County officials, though, estimate that about 50 medical marijuana dispensaries popped up last year in the county’s unincorporated areas in response to the demand of its residents who legally have cards to purchase marijuana for medical use. These residents typically have various forms of cancer or other ailments that require marijuana for medicinal purposes.

County attorneys told the newspaper in 2010 that the reason some dispensaries were operating was because of “vaguely written laws” by state lawmakers that have allowed them to operate.

A majority of voters made it pretty clear that they supported legalizing marijuana for medicinal purposes — that wasn’t vague at all. And even though state law allows for these small businesses to operate, they conflict with federal drug laws, which is why there is an ongoing conflict.

Federal authorities, in an effort to garner political favor apparently, have made it a point in the last year to say they would prosecute businesses and the people who rent to them. That is a powerful threat and has led to hundreds of dispensaries shutting down or not registering with the counties or cities where they are operating for fear of being shut down.

Our medical marijuana lawyers are prepared to take up the fight on behalf of these small business owners and the patients they serve. They serve an important function in our communities and must be well-represented in their fight against the government.
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December 16, 2011

Los Angeles Councilman Talks About Medical Marijuana Dispensaries

By Cannabis Law Group

The Eagle Rock Patch was able to sit down recently with Los Angeles City Council member Jose Huizar and tackle a bevy of topics, including medical marijuana dispensaries in Los Angeles.

Huizar has been in the news recently because he proposed a ban on all marijuana dispensaries in the city. That has led to much criticism from supporters of the medical marijuana industry, as a ban on dispensaries would not only severely limit the ability for people with cancer and other illnesses to get the marijuana they need for treatment, but it would put people out of jobs and cause the city to take a hit in tax revenue.

Our Los Angeles medical marijuana attorneys have followed this news closely as it could have a profound effect on our clients — the legal users, growers, distributors and sellers of this important medicinal drug.

The publication sat down with Huizar in his city hall office recently and asked about a couple topics, but of most import was the topic of dispensaries in the city. Huizar said that he supports the access of patients who need medicinal marijuana.

The city council member, however said that he wishes to strike a balance between people who legally should have access to marijuana and the “ill effects that come with dispensaries.” He said he wants to prevent an over-concentration of dispensaries and keep them far from churches, schools and other establishments.

Because of a recent court ruling, the city no longer has an enforceable law for dispensaries. He told the media he worries that this will lead to hundreds more dispensaries popping up around the city by people who want to try to make a quick dollar, even if they get shut down.

Huizar says he wants to ban all dispensaries so that the city can get direction from the California Supreme Court about what to do to control dispensaries. He believes the the court can give guidance on the law, which he calls “very flawed.”

He believes the state’s law is susceptible to loopholes. He pointed to laws in Oregon, where a patient can get a prescription for medicinal marijuana only from a primary care physician. In California, any doctor can make the recommendation, which Huizar says could cause problems.

Oregon’s laws also limit the types of ailments that are eligible for medical marijuana. There are only certain ailments that can require marijuana and the patient must show a history of the ailment before getting a prescription or recommendation for marijuana.

He wants to create safeguards for local communities while still allowing those who need the marijuana to have access, he said. He also pointed to pressures from the federal government, who have recently threatened dispensaries, users and landlords who rent to dispensaries.

Our Los Angeles medical marijuana lawyers believe that a ban on dispensaries is a bad knee-jerk reaction to a murky situation. While there are certainly problems with the state law, local city ordinances, the illegal drug trade and interference from the federal government, a shut down isn’t in anyone’s best interests. We hope that city officials continue working to find a solution good for everyone.

At the end of the day, voters legalized medical marijuana. Period. Any murkiness has been caused by the wrangling of politicians who won’t accept that simple fact.
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December 15, 2011

Federal Interference Causes Shut Down of State’s Oldest Medical Marijuana Dispensary

By Cannabis Law Group

The Press Democrat reports that the Obama administration’s recent crackdown on marijuana businesses has led to the shut down of the state’s oldest medical marijuana dispensary in Marin, which is north of San Francisco.

The newspaper also reports that a major marijuana collective that cultivated, harvested and packaged marijuana for many Bay Area dispensaries is also shutting down in December. an official said the closures will have a “pretty devastating effect” on patients who rely on marijuana to help with their serious medical conditions.

Despite a lot of negative publicity, medical marijuana in Los Angeles and throughout California has a lot of benefits to people who are suffering from devastating medical problems. That’s why our Los Angeles medical marijuana lawyers are dedicated to working on behalf of patients, dispensaries, collectives, doctors and others involved the legal marijuana industry.

Unfortunately, there is an illegal marijuana industry that has hampered the efforts of those who are trying to do the right thing. This secondary, black market has been the reason federal officials have threatened criminal prosecution, even to those who are operating their businesses legitimately and within state laws.

Not only have federal prosecutors in recent months threatened the business owners themselves, but they have also gone after the landlords who are legally renting office space to these companies. Threatening them, too, has had perhaps the biggest effect on the medical marijuana industry in California.

Many of these landlords, worried they could face punishment from the powerful government, have kicked out many dispensary businesses. And with few others willing to allow them to operate in their office space, many have been forced to close.

One such example is the Marin Alliance. The $1 million-a-year business is one of the town’s top-10 sales tax revenue contributors, but it is going out of business. Because of its proximity to parks, schools and other places where children congregate, its landlord succumbed to federal pressure. There were dozens others statewide who fell into the same boat.

Closures like these have profound effects on their communities. While the federal government believes it may be continuing its decades-old “War on Drugs,” what it really is doing is harming communities. For one, you have people who have a legal prescription for these drugs not being able to get what they need to help the treatment of cancer and other serious illnesses.

Second, you’re putting people out of business. Small business owners already have challenges with all they pay in state and federal taxes, but now people who have invested tens of thousands of dollars in their businesses are being told they are operating illegally even though they’re following state law. Their employees are being laid off, adding to unemployment.

Then, there’s a large effect on the tax base of the communities where they operate. As the article states, this particular dispensary brings in more than $1 million per year for the area in revenue, a huge sum of money that now will go away. Our Los Angeles medical marijuana lawyers think the government’s actions are awful and have larger effects than their plans to garner votes in 2012.
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December 13, 2011

California Marijuana Growers Shifting Production Tactics, Testimony Reveals

By Cannabis Law Group

A recent article out of Washington reports that California’s marijuana growers have shifted plots from national forests to farmland, according to the Fresno County sheriff, who testified to the Senate Caucus on International Narcotics Control.

Admittedly, medical marijuana in California is a difficult industry because while many small businesses sell marijuana solely for medicinal purposes, others use it for illegal uses. Illegally operating growers sometimes make shipments to legal dispensaries and then ship out of state to illegal users and distributors.

This is why our Riverside medical marijuana lawyers have been so busy helping people throughout California who have faced problems simply for following California’s laws, which were originally put into place more than 15 years ago.

Whether it is law enforcement interference, or problems from federal authorities who don’t respect California’s laws, or the reaction of local officials scared of both groups, these small business owners have been under the gun in 2011. Our marijuana lawyers hope that things simmer down in 2012.

According to the news article, Fresno County has seen a drop in marijuana plots on public land. In 2009, law enforcement identified 81 sites where marijuana was grown on public lands in Fresno County. In 2010, that number dropped to 19 and down to 8 in 2011.

Senators said that the Central Valley is perfect farmland for marijuana because of abundant sunlight, fertilizer and irrigation. While senators were encouraged that marijuana isn’t being grown on public land, the shift has been to private farmland, the article states.

Last year, Fresno’s sheriff told senators that 36 multi-acre marijuana cultivation sites were found on conventional farmland throughout Fresno County. One site found this year by officials was 57 acres.

Officials are also alleging that illegal immigrants are being used on these sites and have been particularly important in the marijuana industry in California. In July, officials arrested 159 people in sweeps through five Northern California counties. About 95 percent of those who were arrested were illegal immigrants. Between 2005 and 2010, 1,437 of the 2,334 marijuana sites seized on federal forest land had illegal immigrants on them.

In that July sweep, more than 632,000 marijuana plants were seized, along with 38 weapons, including assault rifles. During a similar operation in 2010, 432,271 marijuana plants and 33 weapons were seized around Fresno.

Officials believe that the marijuana industry has given Mexican drug trafficking gangs a cover for their operations. And this hurts legitimate businesses. With law enforcement snooping and federal authorities bringing pressure, people who are trying to run dispensaries the right way can unneeded pressures.

If people are illegally operating marijuana farms and illegally distributing it to non-authorized users, it paints all businesses in a bad light. This increases prices, leads to shut downs in businesses and, ultimately, hurts patients.
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December 11, 2011

Fed Enforcement on Medical Marijuana in California Leads to High Prices

By Cannabis Law Group

Several news articles have reported that the recent federal crackdown on medical marijuana dispensaries in Los Angeles and statewide has led to record profits as prices soar.

This certainly isn’t positive for the users with medical problems who seek this treatment, but it is for the business owners who are risking prosecution to run their small businesses. Or is it? These businesses must remain nonprofit and this could be one more means of prosecution as both state and local government continue to talk out of both sides of their mouth.

Our medical marijuana lawyers would bet that the people of California didn’t vote for medical marijuana so that the people who needed it would be hurt by inflated prices.

Yet, the actions of the federal government have caused that. Many dispensaries have been shut down because of threatening letters and calls directed at landlords who have rented to these businesses. In other cases, letters have been sent directly to the businesses themselves, threatening to bring them up on criminal charges, including money laundering charges, despite the fact that they are legally operating the businesses within thestate’s laws. It is a classic states v. federal argument that won’t go away any time soon.

Based on the increase in federal involvement in California, The Sacramento Bee reports, a pound of outdoor-grown marijuana is selling for 20 to 40 percent more than it has in the past, analysts say.

While prices have declined since 1996, when marijuana was legalized in the state, they have increased lately. The industry has had a black cloud launched over it by the feds, who have threatened prosecution. Some experts say growers have illegally shipped their product out of state to maximize profits.

Another story by California Watch reports that production levels have dropped this year. Part of the reason is because of rainy weather and a “bumper crop of mold,” some experts and analysts say.

Some growers began cutting down on production once the federal government swooped in and began making threats of criminal prosecution. Some decided to “lay low” and cut back on how much they were growing in order to avoid detection.

As like any other industry, a cut down in production meant an increase in prices. Where a pound of marijuana used to go for $1,000, it has recently been going for as much as $2,000 or $2,500 per pound. And the cost is being passed on to users.

The government took credit for an increase in prices, stating that the use of informants, wiretaps, undercover agents and an effort to intercept marijuana being sent through the mail has led to the market being “significantly disrupted.”

Some legal growers are upset that an increase in prices in California could end up benefiting illegal, black market growers and hurting those who are playing by the rules and obeying state laws. The bottom line is that if the feds are going to go after people for marijuana, it should be the illegal growers, not those who are following local laws in trying to run a legitimate business. And they certainly shouldn’t be prosecuting people with cancer and other serious illnesses who need marijuana for healing.
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December 9, 2011

AG Holder Says Feds Won’t Prosecute Los Angeles Medical Marijuana Dispensary Owners

By Cannabis Law Group

In what appears to have been a 360-degree turn in the government’s stance on dealings with medical marijuana dispensary owners, Attorney General Eric Holder recently testified that prosecuting these business owners is a “low priority.”

A Colorado politician recently grilled Holder on the Judiciary Committee about medical marijuana and a June 1 memo that essentially told federal prosecutors that they were to prosecute people who cultivated, distributed or sold marijuana legally in states that allow it.

Now, Holder is saying that given the Justice Department’s lack of resources, this will remain a low priority. But do the owners of Los Angeles medical marijuana dispensaries really believe him?

Our Los Angeles medical marijuana lawyers certainly don’t. After months of threats from prosecutors, including to landlords who allow dispensary owners to rent from them, officials are saying they don’t plan to prosecute criminally.

But the months of harassment have done enough damage. City officials throughout California are concerned that they should ban dispensaries from opening up in their city limits. Many businesses have been forced to shut down because there was so much backlash they lost their offices and couldn’t find new ones with reasonable rents.

A 2009 memo told prosecutors that prosecution of “significant” traffickers of illegal drugs, including marijuana, remains a core priority, but the memo told prosecutors that it isn’t an “efficient use of federal resources” to go after people who have cancer or other ailments that require the use of medical marijuana, so long as they are doing it it legally in the state where they live. This protection also applies to people who may be taking care of them.

The June memo states that the agency’s focus hasn’t change, but that there had been a large increase in cultivation of marijuana as more dispensaries open up. The memo goes on to state that people who operate medical marijuana dispensaries in Los Angeles, the businesses that cultivate marijuana and those who distribute it to the dispensaries “are in violation of the Controlled Substances Act, regardless of state law.”

The most recent memo also states that “state laws or local ordinances” are not a defense to civil or criminal enforcement of federal law.” The prosecutors are able to come after these people for crimes, including money laundering if they make financial transactions with money they received from doing legal business. The business owners could be opened up to an array of federal financial crimes.

Rep. Jared Polis, D-Colo., who was doing the questioning, seemed pleased at the Attorney General’s answers, though there are major contradictions. The representative’s staff said that Holder said “medical marijuana businesses are not an enforcement priority,” but the June memo, which is still in place, speaks otherwise.

The bottom line is that federal authorities still believe that medical marijuana dispensaries should be prosecuted, even if they are legal in California. This is a mess and the Attorney General’s words don’t make it any easier to understand. Our Los Angeles medical marijuana lawyers are prepared to defend businesses and individuals who get ensnared in this political mess.
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December 7, 2011

California City Debates Marijuana Smoking in Parks, Medical Marijuana Dispensaries

By Cannabis Law Group

A San Jose suburb recently had a debate about whether the city should allow medical marijuana dispensaries in the city limits.

It’s amazing that 16 years since medical marijuana was legalized in California, cities are still having debates about whether or not to allow medical marijuana dispensaries in Riverside and elsewhere to operate.

One reason this has become an issue is because in recent months federal authorities have begun going after these small business owners, who are legally operating under California law. Unfortunately, state law conflicts with federal law and in an effort to garner some votes in the 2012 election, the Obama administration is causing problems for these people.

Our Orange medical marijuana lawyers fully support these businesses, which are following the law and providing a key medicine for people who have chronic ailments.

City officials in Milpitas, a city north of San Jose and on the southeast end of San Francisco Bay, recently looked at the possibility of whether to allow medical marijuana dispensaries to operate within the city limits.

The police chief expressed concern over the idea of allowing dispensaries in the city since U.S. attorneys consider them a federal law violation. The chief also told city officials that there are “likely no more than 20 genuine” medical marijuana patients in the city.

The first point that should be made here is it’s likely impossible with medical privacy laws for the police chief of a city to know how many people have legitimate illnesses for which medical marijuana is a viable treatment option.

The second point the chief made to officials is that dispensaries bring the risks of robberies, money laundering, piles of cash and other crimes.

Let’s examine this a little closer. So, the police chief here believes that medical marijuana dispensaries are a haven for crime. What about convenience stores? There are plenty of late-night robberies at stores where violence often occurs. Banks often get robbed and there are piles of cash there. Money laundering? How about illegal drug dealers?

I doubt the police chief is warning officials about the risks of convenience stores and banks, yet he stereotypically slams medical marijuana dispensaries as potentially harmful to the city. These inaccurate facts have no place being presented to a decision-making body. Dispensaries are small businesses just like any other, operating within the laws of the state.

This is another politically motivated attack on people who are simply trying to run a business and earn a living. The chief encouraged city leaders not to allow dispensaries there, but if they do, to limit nighttime hours and ensure they aren’t located near libraries, schools and places where children congregate. The chief also said marijuana use shouldn’t be allowed near dispensaries.

City leaders took the comments and still believed the dispensaries should be considered in the future for “patients that need it.” While court rulings have determined that cities may not be able to issue permits, they can use land use controls and safety regulations to ensure dispensaries can open.
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December 5, 2011

Los Angeles Reports Nearly 400 Medical Marijuana Dispensaries Citywide

By Cannabis Law Group

The Los Angeles Times is reporting that 372 medical marijuana shops filed business tax paperwork with the city, proving that there are more medical marijuana dispensaries in Los Angeles that in any other city in the nation.

Our Los Angeles medical marijuana lawyers know this is despite heavy fire from the federal government, which is trying to impose its rules on a legal, voter-approved industry in California.

In recent months, federal prosecutors have made arrests and threaten arrests on others simply for following the state’s laws. They have sent threatening letters to landlords, saying they could face sanctions if they rent their space to these legal companies, causing many companies to go out of business.

It’s good to see, however, that these small business owners are fighting the good fight and working hard to make a living, despite the pressures from the Obama administration. Our lawyers believe these legal businesses should be able to continue operating as normal, despite outside opinions.

According to the news article, more dispensaries are still opening, though the 372 number is what is officially on the books with the city. But the article’s author suggests that some companies may be open but may not have filed the proper paperwork with the city. Can you blame them at this point?

City officials estimate there are more like 500 shops in the city limits. The city has spent years trying to shut down illegal shops — or legal shops for that matter. The newspaper reports that the city first attempted to determine how many shops it had in 2005.

The first year, police found four and a year later, 98. Once officials forced dispensaries to register to stay open, the number jumped to 186. Two years ago, officials estimated there were as many as 850.

In March, city voters approved Measure M, which required a 5 percent gross business tax for dispensaries, which is 10 times larger than the next-highest business tax. Officials believe it could raise as much as $10 million in revenue for the city.

In January, city officials are expected to take up the issue of a possible ban on dispensaries. A recent court ruling questions whether the city actually has the power to change public safety regulations, such as a restriction on where the businesses can be located. The court ruling also stopped leaders’ efforts to cap dispensaries at 100 through a lottery system.

A ban wouldn’t stop city officials from collecting the tax from dispensaries that choose to ignore the rules. Who’s on first?

Who can blame these small businesses? They are being threatened at every angle. First, the Feds are trying to threaten them and say the owners could be sent to prison. Then, city officials are trying to get rid of them even though they’re running a legal business.

Most companies are probably willing to pay the tax to stay open, but don’t want to be raided by officials who can easily spot them if they register with the city. This is a tough issue that hopefully can be resolved soon and not linger on.

Medical marijuana is what the people of California have wanted, despite resistance from many in the government. It is legal in California to sell marijuana to those who require it for medical use. That should be the end of the story, but sadly, it’s not. These business owners must continue to fight for their rights.
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December 1, 2011

Lawsuits Filed Against Feds and Their Attempts to Stop the Medical Marijuana Industry in California

By Cannabis Law Group

A number of lawsuits were recently filed in four federal judicial districts in California in an attempt to stop the U.S. attorneys from closing down a number of medical marijuana dispensaries in Los Angeles and elsewhere, according to the Los Angeles Times.

These lawsuits serve as the second legal attempt to stop enforcement efforts against the industry after four prosecutors announced in October that they would be targeting companies for shutdown. The suits are asking judges to approve restraining orders against those who are looking to shut down dispensaries in the area.

Our Orange County medical marijuana attorneys understand that the lawsuits argue that the government’s threat to attack owners and landlords of company property conflicts with an earlier agreement that led a federal judge to throw out a similar suit in Santa Cruz. In that earlier agreement, government officials stated they would not be using federal resources against those within the medical marijuana industry who abide by the laws of the state. Those in the medical marijuana industry are being targeted from all sides for abiding by the law of the state.

The problem is that medical marijuana was approved by voters in the state of California back in 1996 under Proposition 215. You can’t make something legal and then irrationally enforce a different set of laws on it. This is an industry that is legal in California and no other governing force should be able to step in and set their own regulations upon these individuals. Local and County governments continue to create regulations and standards to alter the industry, but the truth is that it’s legal by the state and should be governed as such.

The most recent lawsuit was filed against Drug Enforcement Administration head Michele Leonhart, U.S. Atty. Gen. Eric Holder and four federal prosecutors.

As we reported before, the U.S. attorneys said that they would only be targeting growers and operators in the state who were violating California’s law, which says that these companies cannot operate as for-profit companies. That’s not what’s been going on though. They’re targeting everyone and being sneaky about it, sending threatening letters to landlords saying they’re going to seize property if action isn’t taken.

Dispensaries across the state are joining together and backing these suits, some are not doing so publicly though. According one of the lawsuits, the recent federal enforcement “will eviscerate and likely eradicate” California’s medical marijuana industry which was made legal years and years ago. This industry relies on the storefront shops that are being targeting in the enforcement. With approximately 1,000,000 doctor-prescribed patients in the state, many are left without valuable treatment.

Not only is the medical marijuana industry a benefit to patients suffering from a laundry list of debilitating conditions, it’s also a positive reinforcement to local government. The industry created nearly $5 billion in annual revenue and roughly $100 million in annual sales tax. This is an industry that no one can afford to lose.
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