California Marijuana Dispensaries

May 16, 2011

Charges Dropped Against Doctor Accused of Writing Shoddy Medical Marijuana Recommendations

A case was thrown out earlier this week in Colorado that aimed to convict a medical marijuana doctor in Colorado with writing faulty marijuana recommendations. He was one of the first known doctors in Colorado in the industry. The doctor was facing charges of forgery, attempt to influence a public servant, marijuana distribution and conspiracy to distribute marijuana. He was busted after allegedly writing a recommendation to an undercover officer last year in Englewood.

After an order handed down last week, the Arapahoe County District ruled that the doctor had indeed complied with all requirements under Colorado law in making his recommendation to the undercover officer, according to the Denver Post.

Our Los Angeles medical marijuana attorneys understand that many doctors come under scrutiny for allegedly making questionable medical marijuana recommendations. If you’re facing some of the same allegations, it is critical for you to contact an experienced attorney who can help fight for your rights and your medical license.

“Colorado’s Amendment 20 simply allows for a physician to certify that a patient might benefit from the use of marijuana as a medical treatment,” said District Judge Kurt Horton, “and it is then left up to the patient whether to apply for a medical marijuana registry card.”

The ruling was a slap in the face to prosecutors as it threw another case into question in a county pushing similar charges, according to Grow Switch. Both of these cases, against doctors accused of writing faulty medical-marijuana recommendations, were the first known to be filed in the state.

Both cases originated before the legislature in 2010 adopted new rules requiring that doctors provide a thorough physical exam and offer to provide follow-up care to the patients seeking marijuana recommendation as treatment. Lawyers in both cases contend that their clients were completely in compliance with the much stricter rules.

In California, nearly 8,000 I.D. cards were issued through the Medical Marijuana Program. As of this year, nearly 52.000 people possess these cards and are able to obtain medicinal marijuana in the state, according to the California Department of Public Health.

Those who obtain I.D. cards through the Medical Marijuana Program use the medicinal treatment to help cure a number of conditions, including anxiety, depression, ADD, sleep apnea, and PTSD, just to name a few.
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May 14, 2011

City Sues More Medical Marijuana Dispensaries in Los Angeles

By Cannabis Law Group

As Los Angeles continues to force marijuana dispensaries out of business, the city claimed a quick victory earlier this month in a lawsuit forcing a dispensary to shut its doors, according to L.A. Now.

The decision to force the company out of business came after the city’s attorneys forced the landlord to evict Cancare Collective as the operators chose to avoid litigation.

Our Los Angeles medical marijuana lawyers understand the problems that local medical marijuana dispensaries are facing as cities seek to force them out of business. Keeping your business alive and well at a time where local government officials aim to shut down the entire industry means hiring a law firm experienced in handling the issues.

At a hearing earlier this week, Los Angeles County Superior Court Judge James C. Chalfant also issued an injunction demanding that the North Hollywood dispensary halt operations at 11120 Burbank Boulevard or any of their other locations.

In addition to this suit aiming to close seven dispensaries, the city filed four lawsuits earlier in attempt to close other dispensaries.

“We are hopeful that we will be more successful and speedy this time around,” said Asha Greenberg, the managing assistant city attorney who has led the effort.

The San Jose City Council passed an ordinance earlier this month that mandates marijuana distributed by a San Jose medical marijuana dispensaries be grown on site.

MedMar Healing Center, a San Jose medical cannabis provider, claims that this ordinance will place a de facto ban on a majority of the medical marijuana dispensaries in San Jose. They continue to claim that most of these local dispensaries that do have the space and resources to manage on-site gardens won’t be able to keep up the current level of product quality, diversity or quality of their medical cannibus, according to PR Web. They also worry that by hosting the on-site production of their products they will also increase the security risks to all marijuana collectives.
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May 13, 2011

San Jose Collects Nearly $300,000 from Dispensaries in First Month of New Marijuana Tax in California

By Cannabis Law Group

Last year, San Jose voters passed Measure U. This bill now allows the city to tax marijuana businesses up to 10 percent. According to the official description of the measure, revenues fund so-called essential city services such as emergency response, street maintenance, police, fire, pothole repair and other programs, according to the Peninsula Press.

“We already pay 9.25 percent sales tax … and they want to add another 10 percent? They’re treating it as though it’s a criminal enterprise,” says Medicinal marijuana advocate and former marijuana dispensary volunteer Ellen Young.

Our Los Angeles medical marijuana attorneys understand that government officials continue to throw fees, fines, regulations and bans on medical marijuana dispensaries as a part of their agenda to close them down completely. The CANNABIS LAW GROUP continues to file lawsuits against the city on behalf of numerous marijuana dispensaries throughout the area. We understand the battle that dispensaries fight on a daily bases and understand that these city laws are inherently unfair. We continue to seek economic and punitive damages against the city as we stand with dispensary operators and fight for their business rights.

“I’ve always had the same view, which was a limited number of cannabis facilities in limited places, regulated, and some form of taxation,” says Council Member Pierluigi Oliverio as she continues to show support for the measure.

Dispensary operators must currently determine the tax by remitting their gross receipts. They’re also required to file financial audits so that the city can see the transactions on the general ledger.

“As of May 10, 73 medical marijuana collectives have remitted approximately $290,000 in taxes for the month of March,” the city announced on Friday, according to Toke of the Town.

Until recently, no one was sure just how much the San Jose medical marijuana tax would collect for the city.

Voters continue to overwhelmingly approve such laws. Funny, because San Jose still views their 100 or so medical marijuana dispensaries to be unlawful, but continue to require that the pot providers pay special marijuana taxes to help fund the cash-strapped city.

A majority of dispensary owners figured that government taxation would mean that they’ve finally received legal acceptance, but it’s now apparent that the providers will be catching it from both sides: they are still subject to police raids at the same time they are required to pay taxes to the government.

“The Finance Department is working with the City Manager’s Budget Office to develop a Marijuana Business Tax forecast, but this forecast can only be considered preliminary given the limited amount of collection data and the many factors that need to be integrated into the revenue projections,” says a letter signed by signed by Deputy City Manager Deanna J. Santana, Director of Finance Scott P. Johnson, and Director of Planning, Building & Code Enforcement Joseph Horwedel, San Jose’s Marijuana Business Tax (MBT). “These factors include future business closures and the impact of implementation of the City’s Medical Marijuana Regulatory Program.”

As we’ve discussed, the city is still planning to enforce zoning regulations, land use regulations and other punitive actions. They’re looking to enforce an existing law prohibiting marijuana dispensaries within 600 feet of schools to reduce the number of dispensaries in San Jose to only 10. Dispensaries, advocates and lawyers statewide will continue to fight for fair business rights for these dispensaries.
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May 11, 2011

Two Medical Marijuana Providers Sue Government Claiming it Directly Violated Civil Rights

By Cannabis Law Group

The U.S. government is being accused of civil rights violations by two medical marijuana providers in what may be the first lawsuit of its kind, according to the Associated Press.

The accusations come after a federal crackdown on marijuana operations in Los Angeles and across the nation.

As we previously reported on our Marijuana Lawyer Blog, the Drug Enforcement Administration was in favor of a crackdown if the California’s marijuana legalization effort was put into effect and made law. However, the Obama Administration’s Justice Department has chosen not to target medical marijuana for enforcement action in states where it is legal under state law, such as California.

Still, some are accusing the feds of unfair enforcement action. Owners MCM Caregivers and Montana Caregivers Association allege these federal raids on marijuana businesses are unconstitutional and exceed the government’s authority.

Our Los Angeles medical marijuana attorneys understand that the federal government still considers marijuana as a Schedule 1 drug, claiming that it has a potential for abuse and has absolutely no medical value. Medical marijuana however, has been legal in the state of California since the mid 1990s. It is critical that you contact an experienced attorney if you or your company has been the victim of a crackdown and are now facing charges in state or federal court.

“I think it’s an entirely legitimate topic for debate,” said Obama on whether all drugs should be legalized or not. “I am not in favor of legalization. But I am a strong believer that we have to think more about drugs as a public health problem.”

Since the raid of MCM Caregivers and Montana Caregivers Association, federal agents have raided two dispensaries in Washington State. In addition, federal prosecutors have sent numerous letters of warning to leaders in a majority of the 15 states with medical marijuana laws.

“I’m surprised nobody’s raised a 10th Amendment challenge,” said New Mexico attorney Paul Livingston. “This is a process going on in all the states that have approved medical marijuana. They’re trying to set limits.”

A lawsuit was filed last week in the U.S. District Court in Missoula against the government, Attorney General Eric Holder, U.S. Attorney for Montana Michael Cotter and the Department of Justice. The plaintiff claims that the intent of the raids were to shut down the medical marijuana industry.

“The federal government has made clear its intent to threaten and eventually eliminate any business or enterprise related to the medical use of marijuana,” Christopher Williams of the Montana Caregivers Association and Randy Leibenguth of MCM Caregivers claimed in the lawsuit.
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May 8, 2011

Los Angeles Doctor Releases Book Advocating Medicinal Use While Government Continues to Fight Against Medical Marijuana Dispensaries in Los Angeles

By Cannabis Law Group

A Los Angeles doctor has been recommending the use of marijuana to patients for nearly a decade now, according to India West. She recently launched a book, “A Comprehensive Guide to Medical Marijuana,” published to share her extensive knowledge in the field and about the medicinal treatment.

The doctor covers topics pertaining to the last 75 years of medical marijuana history, medical conditions treated by marijuana, how the drug works in the brain, actual medicinal value of the medicine, different ways marijuana can be used and a discussion of marijuana and spirituality.

She also addresses the laws for the possession of marijuana and the rights of those locally and those crossing state lines. She covers issues about driving under the influence, marijuana laws in other countries, employment and medical marijuana and conflicts between state and federal marijuana laws, according to Consumer News Today.

Our Los Angeles medical marijuana attorneys understand that as dispensaries continue to help treat deserving patients, they are also required to stay in compliance with strict California law to continue operations. With ever-changing ordinances and constant crackdown from federal and state officials, many businesses face an everyday fight to remain open and offer their services to deserving patients. An experienced attorney should be contacted if your business if being attacked and facing shut down as these laws deprive citizens of safe access to legal medical marijuana.

Many California residents rely on medical marijuana to treat a number of conditions, including back and joint pain, anxiety, insomnia, nausea and depression to name a few. Patients much first visit a California licensed board physician. If needed, the physician writes a prescription for the patient and refer them to medical marijuana dispensaries.

Patients seeking the treatment must obtain a Medical Marijuana I.D. card from the California Department of Public Health. Those who try to purchase from a medical marijuana dispensary without this ID card can face arrest and prosecution.

According to City Clerk June Lagmay, there have been a number of recent reports from the Los Angeles Police Department of an increase in and escalation of violent crime at many medical marijuana dispensary locations in the City of Los Angeles.

Los Angeles houses dispensaries that offer many strains of medical cannabis which are can be suitable for smoking or ingesting with food. Many dispensaries even offer workshops and support groups for their clients. Many of them are equipped with knowledgeable staff that can help direct clients to the most suitable product for their condition.

The city continues to pull out all the stops in trying to close down these medical marijuana dispensaries as companies and their respected attorneys continue to fight for their given rights to provide the medicinal treatment to deserving patients. Dr. Sona Patel and many other medical marijuana advocates continue to fight against ever changing rules as regulations dropped on the industry.
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May 2, 2011

California Medical Marijuana Dispensary Manager Sentenced to 3 1/2 Years

By Cannabis Law Group

A number of defendants have been facing charges after a medical marijuana dispensary raid back in 2007. The manager of that dispensary was sentenced to more than three years in prison, according to an Online Medical Marijuana Resource.

The 38-year-old manager of Nature’s Medicinal Inc. pleaded guilty back in January to conspiring to distribute marijuana charges, according to a news release from the Office of U.S. Attorney Benjamin B. Wagner, Eastern District of California.

Our California medical marijuana lawyers recognize that medical marijuana is in fact legal under state law, but understand that federal law classifies the drug as illegal.

The manager faced a maximum sentence of 20 years behind bar. The former owners of the dispensary have yet to go to trial, as their trial date is set for later this year.

Medical marijuana dispensaries are required to follow a long list of rules and regulations, including operating without making a profit.

After seizing $50,000 in cash from the Nature’s Medicinal’s premises, the DEA accused Nature’s Medicinal of doing million of dollars in business each year.

Three others arrested in the raid of Nature Medicinal have already entered guilty pleas to conspiring to distribute marijuana. They have already been sentenced; 2 1/3 years in prison, 1 year in prison and 1 year 8 months in prison.

The two owners of the dispensary have pleaded guilty to conspiring to distribute marijuana and have yet to be sentenced.

The same raid that busted those involved at Nature’s Medicinal also shut down every marijuana dispensary in Kern County, many shutting down willingly for fear of being raided. Numerous dispensaries have reappeared since then.
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April 27, 2011

More Companies Join the Fight against the Medical Marijuana Lottery in Los Angeles

By Cannabis Law Group

This past week, six medical marijuana dispensaries in California filed separate legal challenges to the Los Angeles ordinance that uses a random drawing to select 100 pot stores that would be allowed to continue their operations. At least eight lawsuits are currently seeking to completely toss out the law, according to the Los Angeles Times.

The new lawsuits call the lottery, deciding who will stay and who will go, “a game of chance” and denounce it as “arbitrary, capricious and irrational.” The lawsuit argues that the lottery violates the constitutional rights of the dispensaries.

The Los Angeles medical marijuana lawyers at the Cannabis Law Group remain dedicated to protecting the rights of legally operating medical marijuana growers, distributors and their patients against the overreaching actions of cities throughout the Los Angeles area. No city should be allowed to enact restrictions, ordinances or other hindrances to business operating legally under California law.

The Los Angeles City Clerk’s Office is currently reviewing 231 applications from medical marijuana dispensaries that have applied to be part of the lottery. Officials intent to arbitrarily choose 100 that the city will permit to operate, according to the Los Angeles Times.

The dispensaries are asking that the Los Angeles County Superior Court judge stops the city from holding the lottery as it serves as an unfair technique that will decide the future of many companies.

The dispensaries to recently join the fight are Downtown Natural Caregivers, God’s Gift, Kush Korner V, Medical Kush Beach Club, New Era Caregivers and Safe Life Caregivers.

While city officials have moved ahead with setting up the lottery, they have also appealed a court ruling that invalidated parts of an earlier ordinance that would have allowed them to use a different method to reduce the number of dispensaries in the city, according to KTLA.

April 25, 2011

Medical Marijuana Companies Seek the Help of Angel Investors to Help Expand Their Business

By Cannabis Law Group

Medical-marijuana companys’ pipe-dreams may have come true as they look to private investors and planning public stock sales to help expand their companies.

A seed supplier, in Colorado, is raising $500,000 in a private financing round. A California company, GrowOp Technology Ltd. raised $1 million privately, with plans to launch an initial public offering this fall. A Los Angeles-based company that has placed 60 medical-marijuana vending machines in 15 states and would also like to complete an IPO by year’s end, according to The Wall Street Journal. All of these business adventures resulting from the help of private investors.

Our Los Angeles medical marijuana lawyers continue to report on the challenges facing the medical marijuana industry. Collectives and dispensaries should have an attorney of record as a routine matter of business. The relationship you have with your law firm is confidential and you can discuss issues like taxation, banking and non-profit status. The reality is the local, state and federal authorities are making up the rules as they go along. It is the businesses that have quality legal representation, and which fight for their rights, that have the best chances of surviving.

Laws vary over what conditions are covered and how patients may obtain the drug as 15 states and the District of Columbia have decriminalized the use of medical marijuana. In some states, medical-marijuana dispensaries are authorized to sell marijuana to patients who either have a doctor’s clearance or that have registered as a medical marijuana user. Other states currently allow patients to grow and possess their own limited quantities and specific amounts of medical marijuana.

The pairing dance between capital-seekers and potential investors is most likely to be seen in the two largest medical-marijuana markets in the U.S., California and Colorado. Those states could be the vanguard of similar fund-raising ventures. The medical marijuana industry is expanding quickly as more and more regions of the country permit pot prescriptions, and as investors slowly begin to explore where to best deploy their capital.

“I prefer seasoned people who have been involved in other investment deals before, not dumb capital,” said Ben Holmes, who founded Centennial Seeds in Boulder in 2009 and is raising $500,000 through a private offering.

Most of those that are interested have continued to fight to reduce or eliminate medical-use laws for decades. New potential investors tend to be more interested in financial performance and oftentimes express concerns regarding the legality of the drug under federal law.

Medical-marijuana entrepreneurs all seem to share a desire to move beyond the first line of entrepreneurial seed capital to a broader base of investors. Angel investors seem to be the primary sources of growth capital as they’re typically affluent individuals or small groups of people who are willing to take on risk for the chance at outsized returns.

General Cannabis Chief Executive Jim Pakulis, whose company already is public, is now preparing a secondary offering of shares from current owners, including himself. He describes his business as “a technology company with an affinity for medical cannabis.”

While it isn’t unusual for angel investors to keep the types of businesses they are investing in hush-hush, they are remaining particularly tight-lipped in the cannabis industry.

Medical-Marijuana dispensary firms will continue their high-hopes for fund raising to help support their companies as the government continues to try to hold them down.
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April 21, 2011

Los Angeles Medical Marijuana Dispensaries Fight Back Against City’s Lottery

By Cannabis Law Group

It’s about that time for another round of the costly, drawn-out legal brawl over how to control medical marijuana dispensaries in Los Angeles. Two new lawsuits are stepping up to join the fight and continue to challenge the city’s latest ordinance.

Both filed in the Los Angeles County Superior Court in attempt to hinder the city’s ill-conceived attempts to establish a lottery to decide the winners and losers of its disastrous ordinance. The new lawsuits may launch another series of judicial hearings and thwart the city’s bid to enforce its ordinance, according to the Los Angeles Times.

The Los Angeles medical marijuana lawyers at the Cannabis Law Group represent some of the 64 dispensaries that have filed lawsuits against the city. The ordinance is aimed at closing about 450 legal businesses. The group offers reasonable legal fees and urges marijuana dispensaries to join the fight by calling today for a legal consultation.

In the middle of April, some of the oldest medical marijuana collectives in Los Angeles sued the city as they tried to overturn the ordinance. The ordinance chooses the dispensaries to be entered into a lottery, a process the lawsuits mock as “a euphemism for a municipal game of ‘Russian Roulette.'”

More than 20 dispensaries that are currently suing the city are among those that the City Council let operate when, in 2007, it adopted a moratorium on new stores. The city’s first ordinance would have allowed them to stay open if they complied with restrictions on locations. A judge ruled that key aspects of the law were unacceptable. In addition, the City Council passed a second ordinance that relied on a random drawing to select 100 dispensaries that will be allowed to stay open.

Our Los Angeles marijuana defense attorneys do not believe that any city has the right to create laws against legal businesses in direct violation of the laws of California, including the Medical Marijuana Act and the Compassionate Use Act. We also do not believe that it is fair to only target marijuana dispensaries that opened their doors after November of 2007. The city’s law is grossly unfair to one set of businesses, while favoring similar businesses with reduced competition and the legal means to remain open.

Our lawyers at the Cannabis Law Group remain dedicated to protecting the rights of legally operating medical marijuana growers, distributors and their patients against the overreaching actions of cities throughout the Los Angeles area. No city should be allowed to enact restrictions, ordinances or other hindrances to business operating legally under California law.

Even after following all previous ordinances in good faith, dispensaries are being forced to place all their luck in a lottery in hopes of being chosen to remain open. After being pushed around for so long, companies are now fighting back against the city as more and more lawsuits pile up.
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April 19, 2011

Medical Marijuana Dispensary in L.A. Shut Down After Raid

By Cannabis Law Group

A storefront pot doctor that lures patients with barkers was raided and shut down last week, according to the Los Angeles Times. The eye-catching, only-in-California feature was forced to close up shop when the state medical board and law enforcement officers raided three locations linked to Medical Kush Doctor. Officials confiscated at least two large plastic bags appearing to contain marijuana, roughly five pounds, from the California medical marijuana dispensary. Out of the deep-blue building next to Muscle Beach that houses a doctor’s office, cops investigated the smoke shop and a popular dispensary called the Medical Kush Beach Club.

Our Los Angeles medical marijuana lawyers continue to report on the challenges facing the medical marijuana industry. Whether doctors and dispensaries are operating legally can be a difficult call. Hiring an experienced defense lawyer is the best course of action for protecting your freedom and your financial well-being.

Spokeswoman for the Medical Board of California, Jennifer Simoes, said the warrant was sealed. Simoes declined to discuss the reason for the board’s investigation, but said that the warrant was served on Ocean Front Walk.

The warrant allegedly authorized a search of the offices, vehicles and other property. It supposedly also allowed officials to seize various records related to the unlicensed practice of medicine. The raid reportedly began a little after 10:15 a.m.

The doctor reportedly rents the spaces and provides promotional services for medical marijuana doctors. The provider reported to have believed that the doctors he distributed to followed all of the state laws in issuing recommendations for marijuana use to their patients.

The operation was conducted with the Los Angeles County district attorney’s office, the Los Angeles Police Department, the county Sheriff’s Department and the state Department of Corrections and Rehabilitation, which provided search dogs, according to the LA Times.
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