California Marijuana Dispensaries

August 9, 2010

Glendale marijuana dispensary moratorium another example of government overreaching

Glendale is expected to extend its ban on medical marijuana dispensaries, the Los Angeles Times reported.

Our Glendale medical marijuana attorneys and Los Angeles marijuana dispensary lawyers continue to fight on behalf of legal businesses and medical marijuana patients throughout Southern California.

The city attorney is set to recommend that city council extend a moratorium for an additional year as they await a court ruling on an Anaheim ban and the results of the legalization issue of the November ballot.

The city attorney noted it’s questionable whether the city will be able to keep such a ban in place — saying there was a “lack of certainty in the ability to ban or heavily regulate marijuana dispensaries.”

However, Mayor Ara Najarian is opposed to allowing the businesses in Glendale.

“A recent double homicide in Los Angeles highlights the point that there is a lot of inappropriate and unsavory activities that go on around those dispensaries,” he said Friday. “They really increase the likelihood of abuse and inappropriate sales.”

The attacks on the shops in Los Angeles came in the wake of an arbitrary ordinance that seeks to close three-quarters of the city’s legal dispensary businesses. The CANNABIS LAW GROUP is representing more than a dozen dispensaries in the Los Angeles area against such unfair and discriminatory ordinances.
Continue reading

August 4, 2010

Signal Hill extends moratorium on medical marijuana dispensaries

By Cannabis Law Group

Signal Hill continues to insist upon banning medical marijuana dispensaries, even as Long Beach prepares to reap the tax benefits of these legally operating businesses.

The Press-Telegram reported that city council has chosen to extend its moratorium against medical marijuana dispensaries in the 2.2 square-mile city.

Our Los Angeles marijuana dispensary attorneys and Long Beach marijuana defense lawyers are dedicated to defending the rights of marijuana patients, growers and businesses throughout Southern California. The CANNABIS LAW GROUP currently represents more than a dozen marijuana dispensaries in the Los Angeles area.

City Planner Scott Charney sand Signal Hill is taking a wait-and-see approach. “Given the changes occurring in Long Beach and Los Angeles, and the potential state law changes, the City Council thought it was wise to see how things shake out,” he said.

The moratorium kicks the can down the road, giving the city until next July to “research the effects of medical marijuana dispensaries on other cities.” How many years do city leaders need? We would like to see the results of this research.

The city manager said concerns included people standing outside the businesses smoking and theft form the collectives, which handle significant amounts of cash. So far as we know, you could find both these conditions present at every convenience store in Southern California but we know of no city with plans to ban them.

During the moratorium, several dispensaries opened in Signal Hill without a permit. The city attorney used code enforcement to shut them down. The media reports that city leaders will have to arrive at some sort of decision when the current moratorium extension expires.

Though we are sure that extending it again will always be an option.
Continue reading

August 2, 2010

Long Beach set to tax marijuana dispensaries; short-sighted Los Angeles politicians clinging to lack of vision

By Cannabis Law Group

The City of Long Beach is set to approve a tax of recreational marijuana, should voters approve Proposition 19 on the November ballot, the Press-Telegram reported.

Our Los Angeles dispensary defense lawyers and Long Beach marijuana attorneys continue to report the proactive measures being taken by local city governments even as the antiquated leadership of Los Angeles attempts to close medical marijuana dispensaries. Should marijuana be legalized in November, city and county governments would be permitted to reap millions in tax dollars. However, Los Angeles is presently attempting to drive its legal medical marijuana dispensaries out of business.

Long Beach’s measure would tax medical marijuana dispensaries as well, regardless of whether the legalization initiative passes.

Long Beach is facing a projected budget deficit of $18.5 million and additional deficits are expected in each year through 2014. Under new and existing measures, marijuana collectives in Long Beach would be required to pay $15,742 in permit fees. Many of the collectives believe those fees are excessive and that taxing medical marijuana could keep it from patients in need.

We certainly understand their concerns and don’t believe marijuana collectives or any other legal businesses should be subjected to excessive taxation. But neither do we believe they should be driven out of business by short-sighted politicians who forgo the benefits of tax revenue while targeting legally operating businesses for closure.
Continue reading

July 22, 2010

Oakland votes to grow marijuana – Los Angeles continues losing battle

By Cannabis Law Group

Even as the nearly bankrupt City of Los Angeles spends millions of dollars attacking its legal medical marijuana industry, the City of Oakland is moving to become the first city in the state to permit industrial marijuana production, according to the Los Angeles Times.

As our Los Angeles marijuana dispensary attorneys fight for the legal rights of marijuana collectives in the face of the city’s move to force their closure, Oakland’s groundbreaking decision will likely lead to the commercialization of marijuana on a large scale.

And, while Los Angeles city officials attempt to turn back time, Oakland is looking forward and will permit four enormous pot factories to operate under city supervision, likely leading to millions, if not billions, in tax revenue, job creation and other economic benefits.

“This is a monumental step forward,” said Dale Gieringer, an Oakland resident and the longtime head of California NORML, which backs the legalization of marijuana. “It really means moving into the era of industrial-scale operations, and Oakland means to do it big.”

The move puts Oakland at the forefront of the issue, instead of trying to crack down on cultivation, it will control the issue by cultivating its own. Berkeley is the only other city to take such a step, asking voters in November to approve six industrial operations.

Even Oakland’s city attorney advised leaders that the move was not legal under state law and could even put the city in the position of being busted by federal drug enforcement officers, despite a memo by the Obama Administration that seeks to take a hands-off attitude to the enforcement of marijuana laws in states where state and federal law conflict.

Most of the opposition came from a patchwork of independent marijuana growers. Council decided to accommodate the growers, who supply some of the $28 million worth of marijuana sold in the city’s four dispensaries, by promising to craft a plan that will keep them in business alongside the four large-scale, city-sanctioned operations.
Continue reading

July 21, 2010

Riverside County enduring a patchwork of laws governing medical marijuana dispensaries

By Cannabis Law Group

The fight over medical marijuana dispensaries in Riverside and the surrounding area continued Wednesday when Wildomar tabled an issue that would have specifically permitted marijuana dispensaries in the city.

The Press-Enterprise reported the disappointment of medical marijuana advocates after the commission delayed a vote on the issue. Wildomar would be the second city in Riverside County to pass a law specifically permitting the marijuana retail outlets. Palm Springs did so last year. Our Riverside medical marijuana attorneys are representing more than a dozen collectives that are being forced to close because of various city ordinances that have passed in an attempt to outlaw the businesses.

Moratoriums or bans on dispensaries have been passed in Riverside, Hemet, Lake Elsinore and Temecula, as well as Riverside and SanBernardino counties. The City of Los Angeles has passed an ordinance forcing the closure of about three-quarters of its dispensaries, while Los Angeles County is in the process of passing an ordinance that would prevent marijuana dispensaries and collectives from operating in unincorporated areas.

The Wildomar commission will take up the issue again at a meeting scheduled for Aug. 4.

Many cities are awaiting an appeals court ruling involving a closely watched case filed over Anaheim’s ban on dispensaries. And Proposition 19, the November ballot issue that would legalize marijuana in California, could also impact current city, county and state laws being enacted in an attempt to regulate the medical marijuana industry.
Continue reading

July 14, 2010

Ordinance against Los Angeles marijuana dispensaries could aid illegal drug trade

By Cannabis Law Group

An opinion piece in the Huffington Post suggests the city’s attempt to force the closure of three-quarters of all marijuana dispensaries may have triggered a trio of deadly shootings inside legally operating marijuana collectives.

The piece suggests the city may have done little more than create a manageable target of the remaining businesses for gangs and the illegal drug trade.

Our Los Angeles marijuana dispensary attorneys have grave concerns — both for the 400 dispensaries being targeted for closure and for the 100 or so collectives that will be permitted to remain open. We even have some concern for the City of Los Angeles, which we believe could ultimately be held financially responsible for the harm caused to legitimate business owners even as it denies itself millions of dollars in needed tax revenue from marijuana collectives.

We have reported on our Marijuana Lawyer Blog the moves being made by other cities to increase tax revenue even as the Los Angeles law seeks to close the majority of its collectives. In the wake of that law, which took effect June 7, a series of deadly shootings have occurred inside L.A. marijuana dispensaries.

“On a superficial level, closing dispensaries must have seemed as simple as repairing a pothole or cleaning graffiti off a building; just a little urban blight removal,” Mark Haskell Smith writes in the Huffington Post. “But dig a little deeper, peel a layer off the onion, and this “no brainer” has some far reaching and deadly consequences.”

Never mind that the city is not very good at either filling potholes or removing graffiti. Its enforcement of the new ordinance has been rife with problems, including a series of clerical errors involving which legal businesses should be targeted for closure and which legal businesses are allowed to remain open.

Smith writes that by targeting the dispensaries that are permitted to remain open, gangs and drug organizations could seek to regain control of the marijuana trade in Southern California.

The California Board of Equalization reports between $50 and $100 million in taxes are collected each year from medical marijuana dispensaries — the difficulty in arriving at a more concrete number has to do with the fact that collectives can file taxes under the “retail,” “pharmacy” or “other” category. That puts the market for legal marijuana at more than $1 billion a year. Add in the illegal market, and you’ve got a $3 billion industry in Los Angeles alone.

The city did part of the work by passing an ordinance that arbitrarily forces the closure of 3 of every 4 legally operating marijuana dispensaries. Now the Los Angeles County Sheriff’s Office reports the string of assassinations at dispensaries could be drug cartel related.

As the Huffington Post points out: Al Capone famously supported prohibition because he made millions selling illegal liquor.
Continue reading

July 10, 2010

Cities weigh taxes on California medical marijuana dispensaries

By Cannabis Law Group

Long Beach is seeking to tax medical marijuana dispensaries in an effort to raise money and plug holes in the city budget, Businessweek reported.

The Los Angeles medical marijuana attorneys at the CANNABIS LAW GROUP represent more than a dozen collectives in the Los Angeles area that have been targeted for closure. As we have reported on our Marijuana Lawyer Blog, both the City of Los Angeles and Los Angeles County are pushing forward with tough new ordinances that would prevent most marijuana collectives from operating illegally.

While we are no fan of taxes, it is encouraging that some of the outlying areas, including Long Beach, apparently have no intentions of forcing these businesses to close. Medical marijuana dispensaries are legal under California law. We believe Los Angeles will not only miss out on this tax revenue, it could be forced to pay damages to the owners of these legal businesses if our L.A. dispensary attorneys and attorneys working on behalf of other dispensaries are successful in challenging these ordinances.

Long Beach, a Los Angeles suburb with a population of 500,000, has scheduled a public hearing for Aug. 3. If council approves the measure, a ballot initiative establishing a 5 percent tax on the city’s 35 dispensaries would go to voters in November.

The state capital of Sacramento is among other cities weighing the benefits of a dispensary tax in an effort to bridge gaps in the budget.

Long Beach plans an additional 10 percent tax on marijuana-related businesses if voters pass Proposition 19, which would legalize possession of up to an ounce of marijuana by anyone over the age of 21.

In San Jose, the 10th largest city in the United States, city leaders are considering putting a marijuana tax up for public referendum on Aug. 3.

Berkley is also considering putting a tax on the ballot in November. There, a tax of 1.8 percent would be applied to its three dispensaries. The city estimates it would receive $300,000 from the tax.

The City of Oakland estimates it will receive more than $1 million a year from taxes levied on its four dispensaries.
Continue reading

June 28, 2010

San Diego jumps on the bandwagon with restrictions aimed at marijuana dispensaries

By Cannabis Law Group

San Diego County is the latest municipality to attempt to enact rules governing the operation of marijuana dispensaries, the Mercury News reported.

As our Southern California marijuana dispensary attorneys continue to report on our Marijuana Lawyers Blog, these legal businesses continue to come under fire by local government. We currently represent 13 Los Angeles marijuana dispensaries, as well as other dispensaries in Southern California. If you own a marijuana dispensary that is being targeted by a local ordinance, we urge you to contact us for a confidential appointment to discuss your rights.

Last week, the San Diego County board of supervisors ruled that dispensaries must be located at least 1,000 feet from homes, schools, playgrounds and churches — leaving 16 available cites for operation. The dispensaries also must be licensed — at a cost of up to $20,000 each — undergo inspections, hire security and keep precise records of transactions.

The supervisors sued to overturn California’s 1996 law, which permits marijuana use for medical reasons. The county lost and the U.S. Supreme Court declined to hear the case. Our California medical marijuana lawyers are adamant that state law permits these businesses to operate. Having lost in its bid to have the law overturned, San Diego has apparently joined a growing number of municipalities that somehow believe they can simply pass legislation so restrictive that it forces dispensaries out of business.

We believe the only defense is an aggressive offense. Our attorneys are not only fighting to ensure the rights of these businesses and their patients are protected, we are seeking economic damages in cases where a legitimate business is forced to close.
Continue reading

June 25, 2010

CANNABIS LAW GROUP continues to fight on behalf of Lake Forest marijuana collective

By Cannabis Law Group

Two Lake Forest marijuana dispensaries face a July 6 contempt of court date after the city accused them of continuing to operate despite a judge’s order that the businesses close, the Orange County Register reported.

Damian Nassiri, a partner in the law firm HOWARD | NASSIRI, which also does business as the CANNABIS LAW GROUP, told the Register that he planned to file an appeal for a stay while appealing the order to close. The Los Angeles marijuana dispensary attorneys and Lake Forest dispensary lawyers at the CANNABIS LAW GROUP are representing more than a dozen marijuana dispensaries that are targeted for closure by local city ordinances.

The city filed the contempt of court request against Lake Forest Wellness Center and Collective and Health Collective Inc., accusing them of continuing to operate after being ordered to close. The city contends the businesses are operating in violation of the city’s zoning code.

More than 35 marijuana dispensaries were legally operating in Lake Forest before the city began the crackdown last fall. The city moved to close the businesses, which were operating in compliance with the state’s medical marijuana law. That law was passed in 1996 and permits businesses to dispense medical marijuana to patients who need it.

As we reported on our Marijuana Lawyer Blog, Attorney Nassiri filed suit in Superior Court in April, contending that the closures violate constitutional rights.

“Our client conducts its business and maintains operations under California’s Compassionate Use Act and the Medical Marijuana Program Act, which legally allows marijuana distribution to qualified patients with a valid doctor’s recommendation,” said Mr. Nassiri, “It’s the City’s officials who have violated our client’s constitutional rights.”

Last fall, the city issued an open letter to rental and commercial property owners, threatening criminal fines of $1,000 or more and up to six months in jail for collectives if landlords did not stop leasing to dispensaries.

“I know the subject of marijuana has been a taboo subject for a long time, but it’s a legal business” said Vincent Howard, who represents marijuana collectives throughout the Los Angeles area. “People should be allowed to move forward and open these businesses. It’s not up to the cities to change California law.”
Continue reading

June 8, 2010

Los Angeles medical marijuana dispensaries closing doors, seeking assistance from the CANNABIS LAW GROUP

By Cannabis Law Group

The Los Angeles Times reports that medical marijuana dispensaries are closing across the city this week to comply with a new city ordinance that is expected to close more than 400 legal businesses and deprive ill patients from obtaining marijuana as legally permitted under California law.

The Los Angeles medical marijuana attorneys at the CANNABIS LAW GROUP have filed lawsuits against the city on behalf of numerous marijuana dispensaries throughout the Los Angeles area. This fight is far from over. The city’s law is inherently unfair — arbitrarily favoring some businesses while forcing other businesses to close. We are seeking economic and punitive damages against the city for each and every day these businesses are forced to remain closed in violation of California law.

If you are a patient or owner of a marijuana dispensary that has been forced to close, we urge you to call us today for a confidential appointment to discuss your rights.

The city law is forcing the arbitrary closure of 400 businesses opened since November 2007, while allowing between 70 and 130 dispensaries that opened prior to that date the legal means for survival. We do not believe the city has the legal right to enact laws in violation of California law and are adamant that it cannot create a legal monopoly.

Assistant City Attorney Asha Greenberg said the city may take enforcement action against businesses that defy the city ordinance.

“I don’t think anyone should assume they can remain open and that the city is not going to take any action anytime soon,” Greenberg said. “It’s a definite possibility. Anyone who is not living in a cave [knows about the ordinance] because it’s been so widely publicized.”

Violators can face a fine of up to $2,500 a day and six month in jail. Dispensaries that were registered with the city by November 2007 have until June 14 to comply with new location restrictions. The ordinance also prohibits dispensaries from being located near a school, park or residential area.
Continue reading