San Diego County Licenses 1st Dispensary

San Diego County has issued its first license for a medical marijuana dispensary in unincorporated San Diego County today.

The full article can be found at http://www.signonsandiego.com/news/2011/jun/27/medical-marijuana-co-op-poised-get-first-county-pe/

Glendale To Permently Ban Dispensaries

Add the city of Glendale to the list of cities statewide ignoring the voice of the voters and seeking to permanently ban dispensaries within its city limits. The city had previously been operating under the infamous temporary moritorium weapon that many cities employ.  We will just have to stay tuned to see who chooses to take on the city's blanket denial of medical cannabis.

California's Not So Clear Path Ahead

The current status of California's medical marijuana laws are iffy at best.  From county to county, region to region law enforcement action and municipality enforcement provide a cloudy outlook on medical cannabis in the golden state.  The Los Angeles Times recently took a look at all of the various bills in the legislature.

http://articles.latimes.com/2011/jun/17/local/la-me-marijuana-20110617

The IRS - A Word To The Wise

While parts of California enjoy at least being tolerated by law enforcement and the protection of  its Medical Marijuana laws, there is one constant that must always be respected.  The three  biggest letter in the adult alphabet....IRS.  The IRS can take down even the most well managed  and efficent medical marijuana dispensary if they are not compliant with federal tax laws.

According to Forbes columnist Robert W. Wood, the agency is relying on Internal Revenue Code Section 280E, which "precludes deductions for any business trafficking in controlled substances." While dispensaries are legal in some states, including California, marijuana trafficking remains illegal on a federal level. The IRS is arguing that normal business expenses that most companies can deduct on their taxes are not applicable to dispensaries.

The Marin Alliance for Medical Marijuana in Fairfax, Calif., was the first dispensary to be hit with this ruling earlier this year. Founder Lynette Shaw told the Marin Independent Journal of California that the IRS audited the company's returns for 2008 and 2009 and disallowed all of the alliance's business deductions such as buying marijuana, hiring employees, and renting office space. Shaw did not disclose the amount the IRS told her she owes, but she described it as "a staggering sum" totaling several million dollars.


The best advice- add a medical marijuana accountant to your team. He/she will more than pay for itself.
Its the cost of doing business.  "This is the business we've chosen."

Imperial Beach Bans Dispensaries

Proving there is no shortage of irrational thinking the city of Imperial Beach voted to ban medical marijuana dispensaries in their fair city.  Imperial Beach is only 2 square miles you would have thought the city decision makers would have allowed at least one.  But a complete ban?! Really...

Naturally the default argument of dispensaries being a hub of crime was cited. Funny how no one mentions all of the liquor stores in Los Angeles, and Orange Counties.  Could it be all the taxes liquor stores generate?

As for Imperial Beach...30 days is the over-under for the filing of the first law suit against the city.

Full text: http://ww.signonsandiego.com/news/2011/jun/16/imperial-beach-bans-medical-marijuana-dispensaries/

Imperial Beach Considers MJ Dispensaries

The San Diego County city of Imperial Beach will conduct public hearings today June 15 on the issue of allowing medical marijuana dispensaries within their city limits.

Here's to wishing logic and rational thinking prevail tonight. 

Full text: http://www.signonsandiego.com/news/2011/jun/15/imperial-beach-hear-views-dispensaries/

Montel Williams Joins The Medical Marijuana Industry

Wow, what a first half of the year our state's capital is having. First Arnold leaves town (addition by subtraction), their NBA team the Sacramento Kings decide to stay another year in Sacramento and now Sacramento gets a high end marijuana dispensary!  The Albatin Wellness Cooperative is now owned by entertainer, and now medical marijuana advocate Montel Williams. 

This is just another sign of both the growing legitimacy of the medical marijuana industry and the common sense approach that is needed on this issue.  For Williams who suffers from Multiple Scolrosis  the issue of safe access to medical marijuana is both personal and significant. "It's absurd. I can go get morphine pumped into my system and nobody's got a problem," he said. "But all of a sudden they're really worried if I smoked a joint,"said Williams.

Now if Montel can improve the Sacramento Kings like he improved his new dispensary!


Full text of the article from Sacramento Bee:
http://www.sacbee.com/2011/06/14/3698335/tvs-montel-williams-comes-to-sacramento.html

Fresno County Raid

Add Fresno County as another hostile location in California for law abiding medical marijuana dispensaries.  The Fresno Bee is reporting that over 200 local, state and federal law enforcement officials raided five different dispensaries.  Police confiscated marijuana, and bank records. No arrests were made in the raids nor were any shops forced to close.  

Law enforcements way of saying hi?

Great Ruling in San Diego County

Public Nusiance... Not.  Superior Court Judge John Meyer sided with medical marijuana dispensary, MediBloom Inc., holding that they are NOT a Public Nusiance and they do not have to shut down pending trial. Other important points in the ruling:

• Federal law does not preempt state law on this issue ;
• Although not stated Judge Meyer seemed to imply that cities and municipalites need to bring actual evidence to court not mere conclusions;
•  MediBloom could even be considered a private club or medical clinic which are permitted uses.

MediBloom was capably represented by attorney Lance Rogers.  Nice work Mr. Rogers!

Full text: http://www.signonsandiego.com/news/2011/jun/10/judges-ruling-allows-medical-pot-dispensary-stay-o/

Medical Cannabis Users Victorious In Oregon

At first glance  the right to carry a concealed weapon and the right to possess medical cannabis seem like an odd pair. However  both of these separate rights represent an important aspect of the medical cannabis movement.  The right at issue here is states rights which is spelled out in the 10th amendment of the constitution. Ironically, it is the power of this argument that gives the medical cannabis movement such power in court. In actuality the state's rights argument hamstrings even the most conservative of judges and pretty much complex an educated judge to rule in favor of safe access to medical cannabis.

Basically what happened in this instance is that state officials in Oregon were asserting that federal regulations bar drug addicts from possessing a medical marijuana card.  The Oregon Supreme Court  disagreed with that argument and ruled in favor of the medical marijuana card holder.

I assert the more pro state rights rulings we have like this the better even if its in areas that may seem unrelated. This ruling is especially timely in light of U.S. Attorney General Eric Holders announcement that his office will soon come up with a policy that will clarify his office's position on medical marijuana.

For full text click here: http://www.latimes.com/news/nationworld/nation/la-na-oregon-pot-20110520,0,3570087.story

City Medical Regulation Bill Proposed

A new bill has passed the California Assembly.  AB1300 is designed to let cities and other local governments make decisions about locations, crime prevention, licensing, taxation, hours and other rules related to marijuana distribution. The bill was approved 53-1 Friday and goes to the Senate. 
The more reasonable regulations that exist the better it could be for the dispensaries as the regulations could actually legitimize them.

Attorney General To Clarify Federal Policy

Attorney General Eric Holder

Nothing seems more confusing to those in the industry and potential entrants to the industry than the marked difference of state law and current federal policy of medical marijuana. The usual question goes something like this. "You mean as long as I comply with my states guidelines, everything is all good, right?" Uh, no, there is a conflict is the only accurate response.

Well, some potentially promising news came from United States Attorney General Eric Holder this week.  Holder has announced that his office will soon be adding clarification to a federal policy that is distinctly at odds with the laws of at least 16 green states.

Federal raids in San Diego, San Luis Obisco, Washington,  Montana and Michigan have all occurred in states with Medical Marijuana laws on the books.

Full text found at http://www.tokeofthetown.com/2011/06/ag_says_feds_will_work_with_states_on_medical_mari.php

Costa Mesa Injunction Update

The more things change the more they remain the same as the saying goes.  Orange County Superior Court Judge Chaffe heard arguments today from both sides of the city of Costa Mesa "Nusiance" injunction today in court.  This matter was in court today regarding the issuance of a Preliminary Injuction being sought by the city of Costa Mesa.

The bottom line was that Judge Chaffe told all parties he is going to take the matter under submission before issuing a ruling.  Among the attorneys zealously representing the dispensaries were Chis Glew, and Todd Minzer (spelling).  Both attorneys appeared well prepared and well versed on the law.

One interesting thing that came out of the hearing is how petty the city of Costa Mesa is being with this matter. For instance Glew brought up the fact that the city is hindering the curing of the violations that they themselves are are seeking to enjoin.  Glew told the court that the city will not even come out to inspect or fully inform the defendants exactly what the violations are. Note this may be cleared up as the attorneys and city officials appeared to reach an agreement on this issue after the hearing.

It seems that the attorneys have been able to ensnare the city in its own arguments here as the city sought to enjoin several massage parlors and dispensaries under one umbrella so as to disguise their true intention of going after the dispensaries.  That plan has largely backfired as attorney Minzer keenly pointed out that any alleged prostitution activities cannot properly be coupled with the dispensaries since prostitution is illegal under state law.

Said Minzer, "the city is offering no additional harm but patients will suffer due to lack of safe access allowed under state law. " Well said counselor.

Expect a ruling in about a week.