Articles Posted in Orange County Medical Marijuana Dispensaries

An appeals court has handed down a victory for Orange County medical marijuana dispensaries, in a decision holding that a Dana Point marijuana clinic doesn’t owe the city millions of dollars claimed in a prior summary judgment.
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Our Orange County medical marijuana attorneys are encouraged by the decision, granted by the state’s 4th District Court of Appeals. Essentially, it was decided that the lower court, which had issued a summary judgment, acted improperly because the facts of the case were disputed.

This is Law School 101, and the judge in this case really should have known better. Certainly, there are complex legal questions surrounding the issue of medical marijuana in California, but this was not one of them.

Marijuana dispensaries in Dana Point – much like in the rest of the California – have been pushed into extinction by the local city council, eager to avoid the ire of federal prosecutors, who have initiated a massive crackdown on collectives and dispensaries throughout the state. Where there were six Dana Point dispensaries offering medical marijuana to ill patients, there are now none. This illustrates the sad trend in which federal and local government agencies are flagrantly disregarding the will and voice of the people of California.

In this case, the City of Dana Point clamped down on Beach Cities Collective at the outset of 2011, forcing it to shutter its doors. The city lobbed allegations of building code and state law violations. The city argued that the dispensary never produced any evidence that it was operating according to the laws of the state, which allow non-profit marijuana collectives to distribute the drug to individuals who have a doctor’s prescription.

Two months later, Judge William Monroe issued a summary judgment that ordered the dispensary to pay nearly $2.5 million to the city. A summary judgment is essentially a decision that a judge hands down without a trial.

The major problem with that in this case is that summary judgments are only applicable when there is no dispute of the facts. But the facts were disputed by the defendant, who vehemently argued that his operation was following legal guidelines, which required him to operate as a nonprofit, verify patient prescriptions and doll out marijuana solely for medical reasons.

Again – Law School 101.

Beach Cities appealed that summary judgment – and with this decision, won that appeal.

The case will now either head back down the pipeline to the lower trial court, or the city could appeal for a decision from the state’s supreme court. It’s not yet clear which tack they plan to take. However, it may be unlikely for the supreme court to accept the case, as it is not predicated on any new law.

If the case does go back down to the trial court, attorneys for Beach Cities say they will file a request for a new – i.e., non-biased – judge.

At the end of the day, these cases appear not to be about the legality of these dispensaries, but how much money can the city squeeze out of them. In fact, the City of Dana Point has amassed a total of $7 million in judgments stemming from court cases against three other dispensaries.

Still, they have already funneled an extra $400,000 in legal expenses, and the council has voted to increase the budget for these cases. At the end of the day, if these cases go the same route as this one, the city may have done nothing more than waste taxpayer dollars and time.
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Retail dispensaries in Michigan took a hard hit late last month after a state appeals court concluded that their operations were illegal and they were to shut down immediately, according to the Detroit Free Press. Retail dispensaries make up a large part of the state’s thriving medical marijuana economy. This shut down is going to affect more than these dispensaries. It’s going to greatly affect growers who distribute to these companies.
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Medical marijuana in Riverside and elsewhere throughout the state of California has been through these same problems time and time again. Government officials enact regulations and bans on specific sectors and the affect is widespread throughout the medical marijuana industry. Each ban and regulation inadvertently affects you, the consumer. Although government officials contend regulations are for the betterment of the community, nothing can benefit a community better that a legitimate industry that can offer it’s funds, products, services and tax dollars.

Our medical marijuana attorneys in Los Angeles understand that patients in Michigan are facing some of the same problems as patients here in California. Since medical marijuana dispensaries in Michigan will be required to shut down, Michigan’s 100,000 registered marijuana patients will have to turn to their own gardening skills to produce their own medicine.

Since patients will be forced to grow their own, suppliers of medical marijuana plant supplies see this newly effective ban as a blessing in disguise. weGrow, a franchise based out of California, recently said that it will open a store in Michigan by the end of the year. This store is expected to be about 10,000 sq. ft. It will help patients produce their own medicine since they’ll no longer be able to purchase their products at local dispensaries.

Dhar Mann, the founder of weGrow, says that the company currently has stores in Phoenix and Sacramento. He is currently looking to open a spot in the Detroit metro area as well. The negotiations with the franchise aren’t finalized, but he is confident that the Detroit location will be open by 2012.

weGrow exclusively caters to growers of medical marijuana. weGrow not only offers growing supplies, but also offers training seminars and growing advice. Medical marijuana patients can even become certified through the company. The Michigan store is expected to provide customers with an in-house physician as well.

Medical marijuana was legalized by state voters back in 2008. Since then, there has been a growing demand for indoor supplies. This demand has boosted demand for supplies from companies that have been in the area, and created a demand for newer stores.

Currently, a majority of the state’s medical marijuana is grown indoors. This is because law states that it has to be grown in a secure location where the crop can only be accessed by either a certified caregiver or a medical marijuana patient.

Regulations on the medical marijuana industry continue to burden suffering patients and continue to hinder a struggling economy. Without treating this industry as a legitimate business, everyone will continue to suffer.
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Garden Grove marijuana dispensaries won a huge victory with the decision by city council to drop its ban on marijuana dispensaries. Our Los Angeles medical marijuana attorneys applaud the decision and point to the victory as proof of what can happen when owners and patients stand up and fight for their rights.

As the Orange County Register reported Garden Grove becomes the second city to pass regulations as opposed to bans. The city cited costly litigation as the factor in the change of policy.

Earlier this week, Garden Grove’s City Council finalized a decision to require medical marijuana dispensaries to register with the city before opening their business’ doors. The City Council is using this new ordinance to help regulate the number of Orange County medical marijuana dispensaries and to regulate where they’re able to open up shop. They will not be allowed to operate within residential or school zones, according to The Orange County Register.
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“This way we know who is in our city and where they are located,” says City Manager Matthew Fertal. “Once we know that, we will be performing background checks into the individuals who are running these operations.”

This is still less than ideal — Our Garden Grove medical marijuana defense lawyers believe state law permits the legal operation of these businesses. But restrictions are better than bans, which will no doubt continue to be challenged. The new ordinance is already in effect and only allows dispensaries that have registered with the city to be eligible for a future permit. There are approximately 30 dispensaries currently operating in the city despite a ban that was passed back in 2008. Those who closed or gave up the fight could be out of luck.

“This is needed for our city to have some control over the facilities and to make sure our children and families are protected from illegal activities,” said Councilwoman Dina Nguyen. “Unless we define what is legal or illegal, it will not be possible for police to enforce the law.”

The Garden Grove City Council already has the blueprint laid out regarding enforcement efforts of the new ordinance. Dispensaries will be limited along Harbor Boulevard as that area is targeted towards tourists and entertainment.

“With more business licenses, the city will get more revenue,” she said. “But you will also need to hire more people to enforce these codes. We’ve worked hard to keep this environment drug-free. If it has to be done, we better do it right.”

Police Chief Kevin Raney says that his crew continues to support the Title 9 recommendation regarding medical marijuana dispensaries in the C-2 zones and to keep them 1,000 feet from residential neighborhoods and school zones. He believes that this new ordinance is an effective way for the city council and local law enforcement to regulate the industry and to continue to support Proposition 215 of the State of California, according to Garden Grove Planning Commission Minutes.

The City Council says that C-2 locations are the most suitable because they’re the furthest commercial zones from single-family neighborhoods and they these areas are the most flexible with the greatest number of uses.

“This should be an example for other cities to follow,” says Kris Hermes, spokesman for Americans for Safe Access. “The common sense approach is to regulate dispensaries instead of banning them outright, which is a violation of state law.”

Cities with bans:

-Anaheim
-Buena Park
-Costa Mesa
-Cypress
-Fullerton
-Huntington Beach
-Laguna Hills
-Laguna Niguel
-Lake Forest
-Mission Viejo
-Placentia
-San Juan Capistrano
-Santa Ana
-Seal Beach
-Tustin

There are also bans in effect in unincorporated areas of Orange County.
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The event organizers of the Anaheim Convention Center’s marijuana expo were so thrilled with the turnout of their first annual Kush Expo that they’ve already jumped the gun and celebrated their second annual event just eight months later. Organizers were so overwhelmed with the turnout of advocates for medical marijuana in Orange County from the first event, they decided to keep the momentum going with the second annual event that was held last weekend.

The Kush Expo was held, again, at the Convention Center. Organized are already planning a third expo and have it booked it for November 18th through the 20th of this year.
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Our Los Angeles medical marijuana lawyers understand that these events truly illustrate the number of supporters and active members we have in the medical marijuana industry. This is an industry that provides so many residents with healing medications that allow them to function properly on a daily basis and to reduce the side effects of terrible diseases and conditions. The first annual expo that was held last November attracted thousands of people during the three-day event.

“There’s such an upward swing,” said on participant, who has a doctor’s recommendation to use marijuana for panic attacks and sleep problems. “More and more states are legalizing it for personal use, for medical use. I don’t see any reason why it wouldn’t be legalized.”

Some people were a little disturbed by the event. The expo included a smoking patio where card-carrying medical-marijuana patients were able to smoke pot during the event, just outside the Convention Center doors.

“I think that it’s a pretty cool sign for those of us who support legalization of marijuana that this kind of event goes on in the heart of Orange County – and it’s accepted,” said one medical-marijuana user and attendee of last year’s Kush Expo. “I think society is beginning to get the picture that cannabis isn’t as dangerous as previous generations have made it out to be.”

Only those who were 18-years-old and older were allowed into the expo. The Kush Expo was coined the biggest marijuana convention in Orange County. There were dozens of vendor booths with representatives from collectives and dispensaries throughout the state. There was also growing and smoking equipment available as well as doctors who there to offer exams to issue medical-marijuana cards.

“This is not just a party card,” said Dr. Lucia Ferraro, from Sherman Oaks. “My typical patient is not a 20-year-old stoner. It’s somebody 40-plus who needs help from prescription medicine or from pain.”

Anaheim has an ordinance that bans all medical-marijuana dispensaries within its city limits. The city has been battling that decision in court to defend its stance.

City officials understand that the expo provided visitors with a smoking section. It was after all approved by city council. Security officers were on scene to ensure that it was only open to qualified patients. There were no pot sales during the expo.
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While medical marijuana dispensaries in Los Angeles aren’t completely banned from applying for bank credit, they’re probably not going to get approved for it when they do. This is because anti-money laundering statutes are set up to stop illegal drug dealers. It is these statutes that are making banks hesitant to do business with legal dealers. Ironically, businesses that create and distribute products that have been proven to kill Americans are able to gain credit.
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Late last month, Democratic congressmen, Jared Polis of Colorado and Pete Stark of California, introduced bills to remedy the federal government’s bias against the owners of medical marijuana dispensaries, according to Bloomberg Businessweek.

Representative Polis’s bill would permit medical marijuana sellers to borrow from banks. Congressman Stark’s bill would allow them to deduct business expenses from their taxes.

Our Orange County medical marijuana attorneys believe that no small business owner should be denied access to financing. They shouldn’t be held to unfair tax rules either just because they run a kind business that some in government may not like. We must join together to fight for equal rights for our medical marijuana industry.

“It is simply wrong for the federal government to intrude and threaten banks that are involved in legal transactions,” said Polis.

The government needs to create a level playing field for business owners of all kinds. This is why Polis has decided to introduce his bill.

It’s not fair to the operators of medical marijuana dispensaries. They are up against a law that is designed to root out illegal drug dealers, terrorists, fraudsters, and money launderers. The government only uses this as a back-door way to make life difficult for company owners in the pot industry.

It’s simple. If Congress disagrees with state medical marijuana laws, it needs to challenge the legality of these laws directly rather than throw rules and impossible obstacles at them.

Consumers are not the concern of the government. For example, we have two business owners. One sells a product that researchers have concluded to be a major cause of health problems, from cancer to heart disease. The other business provides a medical treatment that doctors prescribe for glaucoma, pain, the side effects of chemotherapy and a number of other conditions. Surprisingly it is the first company, or the seller of cigarettes, that can apply to borrow from a bank and deduct expenses on income tax returns. The medical marijuana operator is shunned.

Ironically, the federal government continues to support the sale of cigarettes, a product that kills Americans. These are the same products that cause cancer, yet they continue to discourage the sale of medical marijuana, a product used to manage the side effects of a number of conditions.

Medical marijuana laws, from the state and the federal government, have created a fuzzy area for the public and law enforcement as the two rulings have left some citizens free to use the drug as they wish and others are left facing prosecution.

“It used to be black and white: Pot’s illegal. Period,” said Kelso Police Chief Andy Hamilto. Now, he says, it’s “maybe” OK to grow and smoke pot.

The medical marijuana industry is currently estimated as a $2 billion industry. It is expected to reach nearly $9 billion in the next five years. That’s just about the same size as the dry cleaning industry and laundry service industry. Ed Orcutt, an 18th District State Representative, says that pot is slowly becoming more accepted by the public.

By opposing the medical marijuana industry, the federal government is passing up a chance raise taxes in one of the few areas where such actions would face little opposition by business owners.

A 2005 study by Jeffrey Miron, then a visiting economics professor at Harvard, concluded that government spending could be cut by nearly $8 billion and tax revenue increased by more than $6 billion if marijuana sales were legalized and taxed at the same rate as tobacco and alcohol. This would equal a $14 billion improvement in the government budget.

This surely seems like objectives that government officials should be striving for when introducing bills into Congress.

A number of marijuana advocates say that the public is starting to see eye to eye with the industry, saying that pot can provide more benefits to patients with fewer side effects than some of the highly addictive opiate pain killers that are currently available and legal. Now all that’s left is to get the government to join our perspective.

“You’re starting to see a generation or two of folks who may have at one point in their lives experimented with marijuana and so they have direct experience with it,” said 19th District Rep. Brian Blake, D-Raymond, who voted for the Legislature’s medical marijuana dispensary bill. “It’s almost become mainstream.”
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Operators and supporters of medical marijuana dispensaries in Los Angeles and elsewhere are having a difficult time doing business with their local banks. A number of banks have turned away these companies because they risk falling afoul of anti-money-laundering and drug-trafficking laws, according to International Business Times.
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The co-owner of Denver-based dispensary Alpine Herbal Wellness, Sue Harank, says that a number of her accounts have been closed at two separate banks and at credit union. Her shop has been open for business since March of 2010.

Our Los Angeles medical marijuana attorneys understand that owners and operators of these medical marijuana dispensaries have faced a number of obstacles and regulations from both the state and federal government. Now, with banks turning away their business, they’re forced to jump through even more hoops to provide their services to patients that rely on them for treatments.

“Both banks and the credit union pursued our business initially and said they had talked to the corporate office and run it through legal, but a month or two later they all reversed themselves,” said Harank.

The largest bank in the United States, Bank of America Corp, said that they started to withdraw their services from dispensaries after they received a warning from the U.S. Drug Enforcement Administration in late 2007 or early 2008.

Marijuana dispensaries in states that have legalized medical pot are all having a tough time getting assistance from banks and credit card companies. This issue will continue as federal authorities declare the medical marijuana business illegal.

It’s not just banks that are closing their doors on dispensaries. Credit card companies are also refusing service to the industry, even in states where medical marijuana is legal. These financial institutions report to just be operating in compliance with federal authority orders.

This pot business is estimated at $1.7 billion annually. In our state alone, the medical pot market size is estimated to be more than $1 billion.

“People have gotten their credit card accounts shut down without them even knowing it,” Harank says.

It’s not just operators in California that are experiencing this discrimination. A number of dispensary owners in various states, where marijuana has been legalized, have been hit by account shutdowns from a number of banks.

“They just summarily close accounts. Banks are very unsure if it’s OK to do business with medical cannabis organizations. It ripples out to credit card and merchant services accounts,” says Don Duncan, California director of the advocacy group Americans for Safe Access and a member of the board of the medical marijuana collective Los Angeles Patients and Caregivers Group in West Hollywood.
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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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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.
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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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The benefits of medical marijuana to aging seniors was touted at the Medical Cannabis Conference in Laguna Woods, UPI reported.

Our Orange County medical marijuana defense lawyers continue to be astounded that there is not more public outcry over the wasted tax dollars and time spent by grandstanding politicians on the medical marijuana issue. Voters resolved the medical marijuana issue almost 15 years ago. Children born that year are nearly adults.
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The state nearly legalized all forms of marijuana with Proposition 19 last fall. Yet local politicians love the TV cameras and would rather argue about who might be smoking a joint than to close the billion-dollar-holes in their budgets or address the tough issues facing their cities.

As a result, the medical marijuana conference in Laguna Woods was held in an area where authorities are fighting the issues. Despite statewide legalization, Orange County bans dispensaries in unincorporated areas, as do San Clemente, Huntington Beach and a number of other cities.

As the Baby Boomers age, many will be afflicted with ailments for which medical marijuana is a legitimate treatment. Having already passed the law, they may be surprised to learn that their politicians have spent their tax dollars in a fight to make medical marijuana unavailable to the very same voters who both supported its legalization and have been forced to commit tax dollars so local lawmakers can argue against it in front of the television cameras.
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