California Marijuana Dispensaries

June 10, 2011

Case Dropped Against Oldest-Running Southland Medical Marijuana Dispensary

A case was recently dropped against the longest-serving medical marijuana dispensary in Los Angeles, and the owner publicly vowed to continue to cultivate marijuana in his own backyard for seriously ill HIV/AIDS patents.

The Los Angeles County District Attorney’s Office dropped a criminal case against the owner just days before it was due to go to trial, according to the Los Angeles Wave.

Paul Scott, the founder and executive director of the Inglewood Wellness Center and the Los Angeles Wellness Center was arrested and charged last June for the cultivation of marijuana and the possession of marijuana for sale. He no longer faces any of these charges.

Our Los Angeles medical marijuana lawyers understand that in many cases, law enforcement can’t back up their zealous raids in court. They can, however, cause a defendant years of headaches, delays and confusion. Oftentimes these cases may leave a defendant eligible to pursue a civil recovery or other means of redress in return for inconvenience.

“There was a ‘ghetto bird’ over head, I’m in handcuffs; they go through to the back garden and pull up the plants and put them in big bags,” Scott recalled. “I was trying to tell them who I am … that I am a founder of a medical marijuana collective and that I have all the paperwork. They just sit me on the sofa asking me questions about money and bank accounts and search the house from top to bottom. They also rip the lights out from the indoor green house.”

Scott compared his arrest at his South Los Angeles home to that of a Hollywood movie scene.

The founder reportedly spent $30,000 on the services of a Santa Monica-based attorney. The District Attorney eventually offered a deal to dismiss the case in exchange for a 90-day jail sentence.

“Jury selection was becoming imminent … there were some pre-trial procedures, but had we not succeeded in the pre-trial phase, we would have been picking a jury,” Scott’s attorney said. “My first thought when Paul approached me to take the case was … is there a legitimate medical marijuana collective? And as we did our investigation it became clear that Paul’s collective, the Inglewood Wellness Center, is probably the most legitimate collective I’ve ever seen.”

The defendant received plenty of support from members of the community who Scott had helped. He didn’t only help them with medical marijuana, but he also created Thanksgiving and Christmas baskets, and backpacks for school children in the area. To his supporters, he wasn’t just a pot dealer, but a true member of the community.

“Their dilemma is that the rules are not clearly established in distinguishing between legal and illegal distribution of marijuana. If it is done for medical marijuana purposes and on a collective basis, it’s not illegal, but the lines are not clear,” Scott’s attorney said. “It’s difficult for lawyers advising collectives; it’s difficult for the courts to enforce the rules because they are so vague. It’s hard for police to know when someone is acting illegal or not. But the facts in Paul’s case came down very clearly on the legal side of the equation.”

Scott believes that had the officers known then what they know now, he may not have been arrested. Officers often fail to use logic during these raids and focus on the bust.

Scott now plans to help those who may not be able to afford medical marijuana. He would like to help them grow their own plants in his backyard. All he asks is for their help watering and caring for the medicinal plants.
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June 8, 2011

Yet Another Tax Aimed at Medical Marijuana Dispensaries — This Time in San Francisco

By Cannabis Law Group

Many government officials are contemplating new sources of tax revenue as they learn about the cash that could be collected from San Francisco medical marijuana dispensaries.

Currently, every other major Bay Area city enlists a gross-receipt tax on their medical marijuana dispensaries. Every California medical cannabis company pays 9.5 percent in state sales taxes, and Los Angeles and San Jose require an additional tax in which local officials collect an extra 5 and 7 percent from these companies, according to San Francisco Weekly.

The tax has reportedly been paying off, as San Jose officials brought in $290,000 during the first month of taxing.

Our Los Angeles medical marijuana lawyers understand that officials throw around these companies like rag dolls and seek to obtain all they can if they’re going to allow these companies to continue operations. Often new laws, regulations and taxes virtually force these businesses to shut down, proving a win-win for government.

“On these types of issues, San Francisco tends to lead, and in this instance, we’re way behind,” says Phil Ting, San Francisco’s potential mayor, who says he’s not officially backing a tax at this time. “It’s a bit controversial, but we want to think out-of-the-box in these tough budget times.”

This marijuana tax would have to be approved by the voters, which would stir up a cluster of opposition among medical marijuana providers and patients.

“The response will be overwhelmingly negative,” says David Goldman, a patient advocate who sits on the city’s Medical Cannabis Task Force.

Marijuana companies currently run as nonprofits. An increase in the cost of business would only be passed on to customers.

A new legislation, sponsored by Sen. Ron Calderon, a Democrat from Montebello, originally favored to increase the taxes on medical cannabis. A study of how to tax these companies raises the eyebrows of many officials, according to San Francisco Weekly.

“The reason that’s important is because medical cannabis exists in a very complicated legal framework,” says Don Duncan, California director for Americans for Safe Access. “Most people see there’ll be some taxation scheme around medical cannabis in the state of California both at the local and state level; but how we can do that and still protect patients and protect providers and cultivators is still really unclear.”

Americans for Safe Access are backing the proposed law, SB 626, as they believe that any and all taxation that is applied to medical cannabis should be justified and necessary — not a source of income for state legislators in a bind.

“What we’re concerned about is that cities and the state are looking towards medical cannabis as a revenue source in tough economic times. And that’s not necessarily how we look at [it],” says Calderon.

Our state lawmakers continue the debate on taxing these companies, but cities such as Oakland and San Jose already tax their local industry. San Jose officials reportedly collected nearly $300,000 in collectives throughout the city. The city predicts that this tax could reel in as much as $3.5 million a year.

“The conversation that SB 626 will facilitate is going to be very important for finding a tax structure that works,” Duncan says. “At least until federal law changes.”

He continues to stress that he’s not fighting for legalization of marijuana, but instead fighting for the fair use and regulation of something that is already legal in our state.
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June 7, 2011

Medical Marijuana Dispensaries in Sacramento Face Urgency Ordinance

By Cannabis Law Group

“The county does not have any existing zoning laws that allow for this kind of business to operate,” said Sacramento County spokeswoman Chris Andis. “This is ‘step one’ toward creating rules and regulations for these kind of businesses. We want to create a careful planning process that balances the needs of the neighboring communities, the dispensaries and the medical patients.”

Earlier this week, the Sacramento board decided to revisit a previous urgency ordinance. The ordinance would be able to codify the right for medical marijuana dispensaries in Sacramento to operate, according to the Rosemont Patch. It would also allow patients to grow their own medicine. These are all activities that are legal under California Prop 215, but these companies have been operating against building and zoning codes or in uncharted territory, depending on which story you’ve heard.

Our Riverside medical marijuana attorneys understand that these companies that are operating in unincorporated areas are currently conducting business without any specific set regulations.

“The county has had their hands in this for a long time,” said Mike Kiano, operator at AMF. “They’ve watched this steady spread of dispensaries happen day-to-day for two years now. They had to have known that eventually it would leak into unincorporated areas, because there are people there who need our services too.”

Records show that there are nearly 50 open code enforcement cases on dispensaries that are located in unincorporated areas of the county.

There are at least three dispensaries in the area have received notices that they are violating county zoning laws.

The local government looks to regulate the system, meaning that individual patients would not be allowed to grow their plants outside. If they were to grow them inside, they would have to do it in a structure that was at least 100 feet from all property lines and 600 feet from things like school bus stops, according to The 420 Times.

Dispensaries would be subject to similar rules. They would not be able to sell any “drug paraphernalia” or edible medicine. They will also be under distance requirements. Any dispensary that is looking to operate legally would also have to remain far from schools and churches and 300 feet from any residence.

Medical marijuana dispensaries in the area fear they’ll end up like dispensaries in San Diego, where nearly all of them have been forced to relocate in industrial areas, which are difficult, dangerous, or just plain impossible for many patients to travel to.
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June 4, 2011

Advocates Join to Protect the Rights of San Diego’s Medical Marijuana Dispensaries, Users

By Cannabis Law Group

San Diego’s medical marijuana advocates collected thousands of signatures to have a say in the fate of new restrictions on pot clinics, according to Mercury News.

Citizens for Patient Rights collected 46,000 signatures for the ballot initiative. The city only requires that 31,000 signatures be collected for an issue to proceed.

The issue is a recently ratified ordinance that seeks to limit medical marijuana dispensaries in San Diego to commercial and industrial zones. It also looks to prohibit them from operating within 600 feet of schools, playgrounds and other related facilities.

Our Southern California medical marijuana lawyers understand that if we want change, we must rally together and stand up for the rights of medical marijuana patients statewide. It is critical to take actions against state and federal government to protect the industry and the rights of legal users. Without voiced opposition, government will continue to place rules and regulation on these companies until they’re all forced to shut their doors.

Citizens for Patient Rights recently told The San Diego Union-Tribune that the newly proposed law amounts to a de facto ban on these marijuana collectives.

If the signatures are certified, the city council is required to either overturn the ordinance altogether or issue it to a ballot within the next 11 months. Depending how long the city takes to tally the signatures, this new measure could end up on the ballot in June of next year.

“The people have made a statement to City Hall that they need to take care of the citizens’ needs and not just City Hall’s needs,” Randall Welty of the Patient Care Association of California told the Union-Tribune. “This effort speaks exactly to patients’ needs in San Diego.”

The new ordinance was ratified in April, along with another measure that requires local dispensaries to operate as nonprofit organizations, hire security guards and curtail their business hours.

The city could make the change to avoid a pricey special election that could cost more than $3 million.

Medical marijuana collectives create millions of dollars in economic activity to the city and hundreds of thousands in tax revenue. In this economic downturn, many advocates believe that the city will see the wisdom of increasing economic activity rather than hindering it.

Earlier in the year, the city council voted to repeal its own ordinance that restricted retail supercenters after the local Walmart collected enough signatures to call for a special election.

“To put $3 million toward this effort wouldn’t be a priority for me relative to restoring library hours,” said Councilman Todd Gloria.
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June 2, 2011

The War on Drugs Affects Legal Medical Marijuana Dispensaries in California

By Cannabis Law Group

A group of high-profile war leaders recently joined together to urge the Obama administration to end the war on drugs. The group calls it a costly drug failure as the battle only focuses on “the criminalization, marginalization and stigmatization of people who use drugs but do no harm to others,” according to the Los Angeles Times.

This focus on harmless medical use negatively affects medical marijuana dispensaries in Los Angeles and elsewhere in California as they’ve fallen victim to raids, shut downs, and endless fines.

New recommendations from the Global Commission on Drug Policy urge governments to try new ways of legalizing and regulating drugs, especially marijuana, as a way to deny profits to drug cartels. This Global Commission on Drug Policy includes former U.N. Secretary-General Kofi Annan and past presidents of Mexico, Brazil and Colombia.

Our Orange County medical marijuana lawyers are not surprised that this recommendation was quickly dismissed by the Obama administration and Mexico’s government. These governments are allied in a violent four-year crackdown on drug cartels. This crackdown has left more than 38,000 people dead in Mexico.

“The U.S. needs to open a debate,” former Colombian President Cesar Gaviria, a member of the panel, said by telephone from New York, where the report is scheduled to be released Thursday. “When you have 40 years of a policy that is not bringing results, you have to ask if it’s time to change it.”

On the commission’s website, resident can access a copy of the full report and the new recommendations in either English or Spanish.

“We can no longer ignore the extent to which drug-related violence, crime and corruption in Latin America are the results of failed drug war policies,” Gaviria said in a prepared statement. “Now is the time to break the taboo on discussion of all drug policy options, including alternatives to drug prohibition.”

Last week, the new drug-policy report was released in New York, and the White House Office of National Drug Control Policy issued a statement arguing against its recommendations.

“The Obama administration’s efforts to reduce drug use are not born out of a culture war or drug war mentality, but out of the recognition that drug use strains our economy, health, and public safety,” the statement read.

The president of Mexico, Felipe Calderon, continues to state that he does not support the legalization of drugs. He does say that he remains open to debate the topic. This position was reiterated early this week by the president’s top national-security spokesman, Alejandro Piore.

Piore stated that the Mexican government “categorically rejects the impression that in Mexico, by definition, a stronger application of the law on the part of the authorities shall result in an increase in violence on the part of the narco-traffickers.”

The 2012 budget has requested $1.7 billion for drug prevention programs. This request is nearly 8 percent more than the previous year.

“Making drugs more available — as this report suggests — will make it harder to keep our communities healthy and safe,” said Rafael Lemaitre, spokesman for the White House Office of National Drug Control Policy.

It is not until effective reform is set forth and enforced that we will be able to begin to solve the problems and confusion surrounding medical marijuana is our area.
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May 28, 2011

Medical Marijuana Dispensaries in Newport Beach Fall Victim to “Nuisance Abatement”

By Cannabis Law Group

Three medical marijuana dispensaries in Newport Beach are facing scrutiny from city council as they’re the target of “nuisance abatement.” Many believe after being served with this warning, these shops will be fined and forced out of business, according to Hydroponic Meds. City officials have been known to place fines or liens on companies in amounts in which they are not able to pay, and therefor forced to shut down.

The 3 medical marijuana dispensaries are facing “potential initiation of litigation involving the illegal sale of marijuana” are:

-The West Coast Cure on Newport Boulevard
-Nature’s Alternative Solutions on Irvine Avenue
-The Healing Tree on Birch Street
Our Newport Beach medical marijuana attorneys understand that government officials target dispensaries. We also understand that they will go to great lengths, find bogus violations and create unnecessary regulations in an attempt to control the industry. If you are facing charges for operating a medical dispensary in California, it is critical for you to contact an experienced attorney. With proper representation at your side, you can more efficiently fight for your given rights as a legal business operation in the state of California.

Newport Beach isn’t the first city to do this sort of thing. Santa Ana dispensaries regularly face fines from the city. Companies in the area have come to add this inconvenience as a business cost in order to continue to operate. Long Beach dispensaries face fines of roughly $2,500 each day when served a violation. These fines get tagged on as liens on the property owner is these fines are not paid.

Newport city council discussed the closure of these 3 dispensaries during a closed session agenda for Tuesday.

Within the next month, the city looks to close at least 20 more dispensaries after expected failed site inspections and code violations. The county oftentimes relies on these code violations and site inspections to shut down these medical marijuana dispensaries as outright bans have proven to backfire. Seemingly, it’s an endless circle.

A recent closure, Holistic Health’s of Dana Point, shut down a number of their dispensaries after the receiving building violations. The owners of the company were fined $1 million.

Newport Beach isn’t alone. Costa Mesa is currently facing decisions regarding regulation or an outright ban for these medical marijuana companies as well.

One thing is for certain, there will continue to be a lot of uncertainty pertaining to the industry, especially with the 2012 election approaching. Many worry that if President Obama is not reelected and a Republican takes office once again that the Feds will attack these companies even harder, according to Medical Cannabis.

The residents of California gave medical marijuana the go-ahead back in 1996. Since then, many cities have fought to keep these dispensaries beyond their city lines.

According to city spokeswoman Tara Finnigan, dispensaries are currently prohibited under Newport’s zoning and municipal codes.
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May 26, 2011

Two More Medical Marijuana Dispensaries in Whittier Shut Down

By Cannabis Law Group

Less than a week after two medical marijuana dispensaries in Whittier were raided by police, advocates plea to City Council to allow more than one legal facility. Those pleas were unanimously rejected. A new ordinance, recently approved by the council, will only allow one legal dispensary in the area, according to Wittier Daily News.

Protesters picketed the possible decision before the meeting. They were even granted the opportunity to speak with members of council and voiced their complaints regarding last week’s raids and the cap of the new ordinance. These efforts proved ineffective.

Our Los Angeles medical marijuana attorneys recognize that laws against monopolies were decided a long time ago. These types of ordinances continue to illustrate amateur politicians “at work.” If you are a patient, a grower or a dispensary owner fighting the state regarding medical marijuana “violations”, you are urged to seek an experienced attorney to help you fight for your right in the court of law.

“We’re not asking to flood this city with dispensaries,” said Laura Kaplanian, owner of GreenReleaf Healing Center, that was one of two dispensaries shut down on May 18. “We’re asking not to cap it at one. This is not for the money. It’s for the patients.”

Another common complaint from these dispensary owners is the tactics used by police officers during these chaotic raids of their business.

“Our rights were violated,” she said. “We were terrified. They broke the door and shattered the glass. They shoved two men to the floor, one with a cane. Is that how you treat your residents? We’re not animals. We’re humans,” said Kaplanian.

Council members back their law enforcement agencies. They continue to make the claims stating that they’re only doing what their country asks by shutting these shops down.

“The reality is this is illegal under federal law and (you) criticize the Whittier Police Department?” said Councilman Joe Vinatieri. “I have great respect for these police officers. We need to remember something here. One of these dispensaries was across the street from East Whittier Middle Advertisement School. The other dispensary was right next door to a church and down the street from another.”

The Police also defend themselves against the claims. Whittier Police Chief Jeff Piper has said that his raids were launched because law enforcement were lead to believe that these companies were committing criminal violations, acting as for-profit organizations essentially selling drugs.

Owners of the two raided dispensaries deny these allegations and stand by their nonprofit status.

Council members react in surprise as they claim to be one of few cities that still even allow medical marijuana dispensaries.

“It kind of catches me off guard,” said Councilman Greg Nordbak. “The council in a 3-2 vote approved allowing them because of the need we feel to be compassionate.”

While many city residents remain against the one dispensary cap, the city planning staff says there is only need for one dispensary because of the limited number of residents that currently hold state-authorized medical marijuana cards in the area. Records show that there are only 22 residents that meet this criteria, but council member report that there were more than 600 residents who were members of that GreenReleaf Healing Center.

Many are worried that residents will now have to look for their product on the streets once again.

“In one of our local cities nearby, I was amazed to discover they have 16 dispensaries because they don’t regulate them at all,” said Councilman Bob Henderson. “We’re not going to allow that in our city. We’ve allowed one. If the need can be shown, they can bring it back to us.”

The councilman goes on to say that residents should be able to commute to this area for their product as the Dial-A-Ride system is available to make transportation a cinch.

With the shutdown of these medical marijuana dispensaries, residents are now forced to look elsewhere to receive products and services which creates a large inconvenience for not only the patients but for the former dispensary owners who have now been closed up for good.
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May 24, 2011

Medical Marijuana in California Struck By Yet Another Villain

By Cannabis Law Group

Medical marijuana dispensaries in Los Angeles and elsewhere have more to fear than the Drug Enforcement Agency. Now our local businesses can even be shut down by the IRS.

The Internal Revenue Service has now made it procedure that these companies can no longer deduct the sales of marijuana from their federal taxes. They’re to follow a completely different set of rules than every other merchant in the U.S. Claiming these deductions for goods sold is the only way for them to do business.

The government continues to make it harder and harder for dispensaries and collectives to stay in business. Our Los Angeles medical marijuana attorneys understand that the local medical marijuana industry would just like to be treated like every other business on the block, following the same rules and regulations. Continuous hits from the government and Congress make that harder and harder every day.

As we recently reported on our Los Angeles Marijuana Lawyer Blog, dispensaries continuously get hit with financial burdens from greedy, money hungry government that has one goal, to put local companies out of business. In our recent post, a new bill was passed that now allows the city to tax marijuana businesses up to 10 percent. These taxes were allegedly going to be used to fund so-called essential city services such as emergency response, street maintenance, police, fire, pothole repair and other programs. What’s most alarming is that these companies already pay a 9.25 percent sales tax. This additional 10 percent tax is on top of the original 9.25.

These companies won’t have to fight alone. United States Congressman Pete Stark, (D-Fremont) recently introduced legislation that would amend the tax code. Dispensaries would be able to deduct the price of their product on their federal tax forms under his legislation.

“While unfair to these small business owners, the tax code also punishes the patients who rely on them for safe and reliable access to medical marijuana prescribed by a doctor,” Stark says.

Section 280E of the IRS code, passed in 1986, prohibits residents from deducting the “sale of illegal drugs” on their personal or business income tax forms. This law was not originally passed to affect marijuana, or the sales of, it was put into effect to punish those dealing cocaine.

The new bill, cosponsored by Rep. Dana Rohrabacher, (R-Huntington Beach), is referred to as “The Small Business Equity Tax of 2011”. This bill is a two-page report that details an exception to the current tax code. This report states that under the exception, “amounts paid or incurred in connection with the trade or business consisting of sales marijuana … intended for patients for medical purposes pursuant to the laws of a state” to be deducted from taxes.

Dispensaries around the nation, in states which allow the product of course, would just like to be treated the same as every other money-making company. It is the American dream, after all.

“A level playing field would be wonderful,” said Cathy Smith, one of the cofounders of HopeNet on Ninth Street. “Everyone else gets to take out deductions. [If the bill passes], I’ll go out and celebrate.”
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May 22, 2011

Police Stop at Nothing to Violently Shut Down Medical Marijuana Dispensaries in Wittier

By Cannabis Law Group

We recently told you about police raids that put two Wittier medical marijuana dispensaries out of business. These raids reportedly used more aggression and force than those of Los Angeles County and the city of Pico Rivera, according to the Wittier Daily News.

Instead of issuing a violation notice or any threats to sue the dispensaries if they didn’t willingly close, a number of members from the local police force and those from the L.A. Impact Task Force abruptly crashed into the dispensary and caused quite a bit of unnecessary damage.

Both of these Wittier medical marijuana dispensaries were operating outside of the area allowed by the city. Our Los Angeles medical marijuana attorneys note that the courts have decided to toss out the criminal element of L.A.’s ordinance. This leaves the city the option to sue in civil court is they want a dispensary shut down, as these raids are prohibited. If you’ve experienced an unlawful shut down in the area, you are urged to contact an experienced medical marijuana attorney to stand up against the city and its thugs.

“They broke in the glass door and shattered it when they came in,” said Laura Kaplanian, owner of GreenReleaf Healing Center. “They trashed our place,” Kaplanian said. “They took all of the patients’ medicine (marijuana) from their hands. It was inhumane. We’re not animals.”

Kaplanian’s dispensary opened back in February, not in a location that the city allows, and said she never received any sort of letter from the city stating that she needed to close her doors.

Michael McGehee, the owner of the Apex – Alternative Patient Dispensary, said that he never received any type of notice from the city either, but was brutally raided and shut down by city police, too.

“Why not give us a cease-and-desist order?” McGehee asked. “We would have just packed up and left. This was a huge raid.”

There were three patients at the Apex facility during the time of the raid.

The Police defend their raid, saying that because the businesses were committing criminal violations and acting as for-profit by essentially selling drugs, the companies were well outside of the Compassionate Use Act.

“We were conducting an investigation and determined there were criminal violations,” said Whittier Police Chief Jeff Piper.

Both dispensary owners still deny allegations and reiterate the fact that they were indeed non-profit organizations and would have cooperated with city requests. They both see the raids as an unnecessary stunt by local law enforcement.
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May 16, 2011

Yet Another Bill Aimed at Regulating Dispensary Operations in Los Angeles

By Cannabis Law Group

An Orange County state senator is backing a new bill that would prohibit medical marijuana dispensaries in Los Angeles and elsewhere from operating near homes. The new bill would forbid a dispensary from opening within a 600 foot radius of any home or residential zone in the area. The bill would also clear the way for other cities and counties to enact even stricter restrictions on the operation locations of dispensaries, according to the OC Register.

The bill was written by Sen. Lou Correa, D-Santa Ana, after a dispensary in Anaheim opened on a residential cul-de-sac last month. The neighborhood protested and police closed the shop down.

Our Los Angeles medical marijuana lawyers recognize that there are a seemingly endless number of restrictions and regulations placed on these dispensaries. As we recently reported on our Medical Marijuana Blog, the city is also planning on enforcing more zoning regulations, land use regulations and punitive actions. They plan on continuing their enforcement aimed at keeping dispensaries away from schools. These regulations are meant to reduce the number of dispensaries in the area. If you are facing charges for operating a medical marijuana dispensary, you are urged to contact an experience attorney immediately as they can fight for your rights as a legal business operation in the state of California.

Correa’s bill is one of at least five authored this year by state lawmakers in an attempt to refine the medical marijuana rules of California. One of the bills looks to place larger taxes on medical marijuana and another would prohibit employers from discriminating against qualified users.

Those bills, that were written 15 years after Californian began allowing medical-marijuana sales, underscore the explosive growth of the industry. Now, medical marijuana dispensaries in cities here and across the state are listed in trade magazines and websites. Still, they remain under attack by the same politicians who often seek to tax them.

Opponents believe that medical marijuana is just a front for drug legalization and recreational use, according to ProCon.org.
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