Los Angeles 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 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 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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November 23, 2011

Councilman Proposes Full Ban on Medical Marijuana in Los Angeles

By Cannabis Law Group

A recently introduced plan could result in a ban on all medical marijuana dispensaries in Los Angeles. The ban was introduced by Councilman Jose Huizar. He says that the state appellate court ruling that was made last month involving the city of Long Beach said the government could not enforce its regulations and would therefore make the regulations in L.A. unenforceable, according to The Sacramento Bee.

Our Los Angeles medical marijuana attorneys understand that local government is looking to ban all dispensaries in the city. The city previously debated allowing a specific number of dispensaries to run under specific regulations, but has since decided that these regulated shops could in fact violate federal law. One conclusion drawn by officials from this is to ban shops altogether. The recent proposed ban has been sent to two committees and could potentially reach the full council in a less than two months.

Marijuana advocates and shop owners have promised to fight any such ban, saying that the closure of shops would force patients across the state to purchase marijuana from criminals.

Los Angeles and cities across the state have been trying to handle the proliferation of medical marijuana dispensaries since the 1996 state ballot initiated that legalized medical marijuana.

At one time, the city had roughly 800 medical marijuana clinics, but is currently seeing about 300 open for business.

Opponents of these shops claim that they attract crime and bring down the value of surrounding properties. Some cities try to regulate the industry while others completely ban it. The City of Los Angeles previously approved the industry by creating a lottery that would limit the city to 100 dispensaries. In all cases, medical marijuana attorneys do not believe local governments have the right to impose arbitrary regulations upon the industry in violation of state law.

The lottery regulations have yet to take effect because more than 50 lawsuits have been filed to challenge the regulations.

California’s Second District Court of Appeal shot down the efforts of Long Beach back in October after it attempted to register marijuana shops. In this particular case, Long Beach’s ordinance was pre-empted by federal law that classifies marijuana, medical or not, as an illegal drug.

This appellate rules makes Los Angeles’ regulating rules unenforceable, in the opinion of some.

According to Don Duncan, the director of Americans for Safe Access, fair and strict regulations can help to reduce the number of complaints and alleged spikes in crime. He says that an all-out ban would only mean that government is turning a cold shoulder to legal patients who rely on the medicine to survive.

Still, California state law still allows caregivers and patients to grow their own medical marijuana.

State regulations must remember that this is an important industry that provides much-needed treatment to deserving patients and serves as a multimillion-dollar industry which could soon be put out of business in the city if advocates don’t fight back.
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November 17, 2011

Local Governments Lose Funding in Fights against Medical Marijuana in Garden Grove and Elsewhere

By Cannabis Law Group

Medical marijuana dispensaries in Garden Grove were banned roughly three years ago, but the ban didn’t go as planned. With a number of lawsuits that began stacking up, officials worried that the city would not have the necessary funds available to pay any costs associated with the laws, including attorneys’ fees. One marijuana case paid out roughly $200,000 to the attorneys. Since the flood of these lawsuits, the city stopped pushing its ban. Beginning this past summer, the city required medical marijuana dispensaries to register with the city. Now there are roughly 60 shops in the city. City Manager Matt Fertal says that he thinks the city has more shops per capita than any other city in the state.

“Everybody is just so frustrated with this,” Fertal said.

Our Los Angeles medical marijuana attorneys understand the problems shop owners face when dealing with the government regulations on the medical marijuana industry. State law doesn’t specify how cities and counties should regulate the industry and federal government says it’s still illegal, not matter what. Fertal recognizes that many dispensaries won’t hesitate to sue cities for trying to regulate them. Garden Grove continues to search for a comprehensive regulating system to please everyone.

As the industry continues to grow, smaller cities are finding regulation to be too costly. Many smaller cities aren’t fortunate enough to have in-house legal departments and have to pay attorneys by the hour.

While there are no distinct numbers illustrating how many local governments have been involved in costly litigation over marijuana, many estimate that there have been at least 40. Some believe this number is much higher.

Many cities are undergoing serious budget crunches and simply don’t have the resources to battle these wealthy dispensaries. Medical marijuana activists have joined the fight, too, saying these needless regulations are harming deserving patients who rely on the treatment.

Officials who suppress the industry are going to become victims of litigation, it’s inevitable. There are activists in nearly every community throughout the state who are ready to fight back. These activists say they have the state on their side. Recent polls illustrate that a majority of Californians support medical marijuana.

Medical marijuana was approved for medicinal purposes in California back in 1996. This was passed in Proposition 215. Later in 2009, California’s legislature passed the Medical Marijuana Program Act (Senate Bill 420). The legality of the industry remains in the gray area though with so many different regulations across the state. In the beginning of President Barack Obama’s term, he promised to halt the crackdown on medical marijuana that followed state laws. That promise was short-lived.

“People should be entitled to know what the law is, and the law is not clear enough for people to know what it is,” said Joe Elford, of Americans for Safe Access.
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November 12, 2011

Rally to Support Medical Marijuana in Los Angeles and Elsewhere Hits U.S. Courthouse in Sacramento

By Cannabis Law Group

Advocates recently gathered in front of the U.S. courthouse in Sacramento in protest of the federal crackdown on the medical marijuana industry in Los Angeles and elsewhere. These medical marijuana advocates believe that this crackdown is a direct assault on “responsible corporate citizens” who contribute their earnings to state tax coffers, according to The Sacramento Bee.

State Board of Equalization member Betty Yee also joined in the efforts. The state’s tax agency member also blasted an outrageous tax from the Internal Revenue Service (IRS) on Oakland’s Harborside Health Center, the state’s largest medical marijuana dispensary. The IRS hit the company with a tax of more than $2 million. Yee also condemned the IRS for using federal anti-drug trafficking statues to deny Harborside Health Center and other dispensaries business deductions.

Our San Bernardino medical marijuana lawyers understand that dispensaries in the area operate just like any other business. They have rules, regulations, policies and other issues. But the law requires that they operate as a non-profit. These companies are required to share the costs within closed groups of registered medical marijuana patients. If these companies are shut down and sent packing, the state will lose out on millions of much-needed tax dollars. The medical marijuana industry is a thriving industry that has the ability to contribute back to our economy when properly nursed. Officials are urged to embrace these companies and work alongside them to better the state, to better deserving patients and to provided much needed jobs to California residents.

“Dispensaries are following regulations paying their taxes,” said Yee.

Yee’s State Board of Equalization is expected to receive around $100 million is sales tax from medical marijuana companies.

The four U.S. attorneys in California aren’t on board though. They say that the state’s dispensaries are making one heck of a profit, which is violation of the country’s medical marijuana laws. These federal officials have pushed to close the shops, sending out threatening letters to property owners where these shops rent. These letters have threatened property seizure and/or criminal prosecution if the companies are not asked to leave.

“The crackdown is counter-productive. It’s irrational and it’s going to drive this business underground,” said Yee.

Yee’s Board serves more than 20 counties from Del Norte to Santa Barbara. She says that the IRS needs to focus more attention on “the real tax scofflaws” and leave these tax paying companies alone.

According to Benjamin Wagner, a U.S. Attorney in Sacramento, federal authorities are targeting large commercial medical marijuana operations and not the patients individually. He says that the feds have no intentions of prosecuting those who are seriously ill.

Approximately 200 people showed up the protest at the U.S. courthouse in Sacramento. These protesters say that this federal crackdown isn’t only taking vital medicine to deserving patients, but it’s taking thousands of jobs from California and harming the local economy.
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November 8, 2011

Medical Marijuana Dispensary in Santa Ana Closed by Local Officials

By Cannabis Law Group

Another medical marijuana dispensary in Santa Ana has been ordered to shut down after sheriff deputies barged in last month with a search warrant, according to The Orange County Register.

Santa Ana Superior Care has been closed because, as sheriff’s investigator Howard J. McCulloch says, the dispensary sold marijuana to undercover officers twice. They were sold the medicine without telling the “customers” to perform any specific duties or to participate in cooperatively or collectively cultivating marijuana. Deputies say that the problem with this is that medical marijuana dispensaries are prohibited from selling to customers who have a recommendation from a doctor, but have no other connection to that particular distributor. When this happens, deputies refer to it as an illegal sale of marijuana, which has not been permitted under the laws of California.

Our Los Angeles medical marijuana lawyers understand that the sheriff’s office is looking to prosecute in this case. According to sheriff’s Captain Adam Powell, officers are still investigating the incident. They’ll be forwarding their discoveries to the District Attorney’s Office. If you are facing marijuana charges, you’re urged to contact a veteran marijuana attorney to help you to fight for your rights in the state of California.

Santa Ana residents were filing complaints about the number of medical marijuana shops popping up along Seventeenth Street. These dispensaries have been prohibited from operating within the city under a land-use ordinance. Despite the ordinance, there are a couple dozen shops that are conducting operations in the city. The city’s code enforcement team is in charge of handling these violations. The city says that those who repeatedly violate this ordinance could be subjected either civil or even criminal litigation.

“We’ve tried to be more efficient in our enforcement by first issuing administrative citations…rather than hauling every dispensary into court,” said the executive director of the city’s Planning & Building Agency, Jay Trevino.

Trevino says that their enforcement efforts typically result in a quicker compliance and that dispensaries have even closed up show the same day as the warning was issued.

He also cites the property owners as a cause for the recent increase in these shops. He says that many times they’re unaware of what type of companies are renting out space. Once a citation is issued however, owners usually ask tenants to vacate the premise. These citations start out with a warning and can turn into a $100 fine, then to $200 and could face a $500 fine per day if these companies don’t comply.

The problem with shutting them down, says Trevino, is that they just open up in a different spot under a different name.

An investigation started as officials were looking into the operation of Orange County dispensaries. Officials found that operations crossed jurisdictions so local authorities took charge. Police officers in Santa Ana don’t usually conduct investigations on dispensaries, but in this case both officers and code enforcement took over.

During the shutdown of the Santa Ana dispensary, officials took over marijuana supply, records and nearly $17,000.
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November 4, 2011

Medical Marijuana Dispensary in Northern Hollywood Loses 800 Plants

By Cannabis Law Group

A recent fire took destroyed a growers full supply of medical marijuana in Northern Hollywood. Officers are still investigating the incident, according to the Hollywood LAist. As of the last reports, officers were also still looking for the owner of that operation.

The fire happened shortly after 12:30 a.m. The business was located on Bellaire Avenue. Luckily, the Los Angeles Fire Department quickly responded and was able to calm the fire in about 20 minutes. There were no injuries were reported. Officers are concerned with the business’ operations because it looked “shady.” Officers report that there were no signs on the outside of the building and that the lobby was questionable. As firefighters extinguished the flames, they discovered about 800 marijuana plants.

Our Orange County medical marijuana attorneys understand that dispensaries and collectives have the same rights as all other businesses in the state. Unfortunately, these companies are bullied by officials and treated unfairly. If you feel your rights have been violated, you’re urged to call an experienced attorney to help you regain your dignity, your business and the rights that have been granted to you by the state of California.

Early reports from the fiery incident indicate that the fire started from the grow setup. Officials believe that the light fixtures may have been improperly fastened and that a light may have fallen on a plant, causing a lot of smoke and a fire to ignite. Reports also indicate that the investigation is ongoing.

“We’re just beginning the investigation,” said Sgt. Aaron Ponce of the Los Angeles Police. “We don’t know who owns the building.”

Dispensaries and other medical marijuana operations have a right in the city of Los Angeles and else throughout California to possess and cultivate specific amounts of medical marijuana. According to Senate Bill 420 medical marijuana dispensaries in the state of California have been provided with a blanket legal protection, saying that qualified patients, people who have a proper medical marijuana card and a person’s designated caregiver…in the state of California in order collectively or cooperatively to cultivate medical marijuana, shall not be subjected to state criminal sanctions.”

Under this bill, patients are allowed to carry a larger amount of medical marijuana than others as long as it has been recommended by a physician. Under this bill, local authorities are also able to create, enact and enforce their own guidelines and ordinances to regulate the local medical marijuana industry. Unfortunately, these regulations are always changing and are oftentimes confusing. These regulations vary from city to city.

Collectives, dispensaries, etc. have to be licensed through either county or local ordinances. Still, these companies are facing scrutiny from all angles. Local officers, federal officers and other authoritative parties continue to bully these businesses. Companies who work within the medical marijuana industry have the same rights as ever other company in the state and should be treated the same.

If you’re being treated unfairly, you’re urged to contact an attorney to help you to fight for your rights as a legal, law-abiding California business.
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October 17, 2011

L.A. Medical Marijuana Dispensaries and Crime: Rand Caves to Los Angeles Bureaucracy

By Cannabis Law Group

The Rand Corp has removed a study from its website just weeks after the published report found less crime in areas around pot clinics and an increase in crime when medical marijuana dispensaries were forced to close.

As our L.A. marijuana dispensary defense attorneys recently reported, the Rand Corp. published a study that found crime rates near dispensaries increased after dispensaries were forced to close.

The study looked at more than 600 dispensaries in Los Angeles County — including more than 400 that had been forced to close. It found less crime in the vicinity of dispensaries and an increase in crime after store closure.

Dispensary crime in Los Angeles is a hot topic; to hear the sheriff or members of city council tell it they are in a war against a crime wave surrounding the whole medical marijuana industry. Never mind the fact that voters approved medical marijuana as a means of reducing crime and the influence of street gangs.

The Santa-Monica-based think tank said it decided to remove the study from circulation until it could conduct a thorough review; the report was slammed by Los Angeles city attorneys, who it should be noted have been wrong about medical marijuana rights in California at almost every turn.

The report compared crime 10 days before the Los Angeles medical marijuana ordinance took effect in June 2010 with the crime rate 10 days after some 400 dispensaries the city decided were illegal had been shut down.

It found a 59 percent increase in crime around the closed dispensaries. While acknowledging the study had a large margin of error, the organization said the increase in crime rate was definitive — at between 5 percent and 114 percent.

Researchers had suggested dispensaries decreased crime because of the increase in police presence and pedestrian traffic and because of the presence of security cameras, among other factors.

The city claims data from the Los Angeles Police Department was not used, and that data was available for other crimes than those tracked.

Los Angeles City officials have been the study’s harshest and apparently only critic.

“I’m unaware of anyone else who’s been so pointed in their criticism,” said a spokesman for Rand.

We guess if you don’t like the facts, changing reality is an option in this case.
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