Brea Shuts Down Dispensary

All eyes will now turn to the city of Brea in the latest battle over the regulation of medical marijuana by muncipalites.  The city has prevailed in the first round as Judge Chaffe Chafee who issued injunctions in March orderied all three dispensaries in Brea to close their doors. So far, one other dispensary has closed while the third clinic – which had its injunction stayed – remains open.


The next step in this battle for patients to get safe access to their medicene will be the California Court of Appeal.


So stay tuned.

Brea Shuts Down Dispensary

 Brea Medical Network a medical marijuana dispensary was ordered shut down by Orange County Superior Judge David Chaffey for violating a Premliminary Injunction that he had previously issued on June 27, 2011. http://www.ocregister.com/news/brea-306084-city-dispensary.html

The City of Brea has appointed a receiver to take over  a medical marijuana dispensary and effectively shutting down all but one of the medical marijuana dispensaries operating in the city.

Note Judge Chaffey is the judge who currently is presiding over Costa Mesa's battle to shut down its medical marijuana dispensaries.  Just what standards he is applying in shutting down the Brea dispensaries is something worth watching and paying attention to.  On the surface the Brea ruling seems to in violation of the Quality Patients ruling vs. the city of Anaheim in which he was overruled.  http://login.findlaw.com/scripts/callaw?dest=ca/caapp4th/187/734.html

Here is to hoping the attorneys for Brea Medical Network continue to put up the good fight and and appeal the ruling.

DOJ NO HELP

Such persons who are in the business of cultivating, selling distributing are in violation of the Controlled Substances Act (CSA) ...

Should I have expected anything else from our president?  As usual the Obama administration chooses the most politically expedient position it can find.  And I really don't know what I was thinking or feeling in the last few weeks when I actually thought that the Department of Justice would actually clarify its polices in such a way to help Americans get safe access to medical cannabis.

This new position was supposed to provide some guidance and assistance to patients and those who are in the business of providing medical cannabis. Instead we get a new memo that says that the prosecution of truly sick patients is not a priority but at the same time says those that provide the medicine for the truly sick are still subject to prosecution.

What's left is for Congress to pass real Marijuana legislation that ends federal prohibition of medical marijuana.  In fact and what has been reported by NORML and Toke of The Town, HR 2306 The Ending Federal Prohibition Marijuana Act of 2011 is now pending in Congress.

Whatever happened to states rights?? Stay Tuned...

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."