Tag Archives: CA

Medical Marijuana Goes Even More Corporate

By Robert W. Wood, Forbes Magazine, 3/26/2013

It’s hard to ignore the prevalence of medical marijuana dispensaries in California and elsewhere. They are on the corner and in the news. If you are a tax lawyer, it is even harder to ignore them, for there are big tax problems in this industry. See Voters Say Yes To Marijuana, IRS Says No. But when I said I thought the industry was going corporate — Is Medical Marijuana Going Corporate? — I didn’t realize how true it was.

Now I’m getting merger notices. Yes, marijuana M&A is here. In this case, it’s about the vapor machines that can obviate smoking and instead dispense the meds without even using a match (or a lighter for that matter).
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Colusa County: Council Moves on Medical Marijuana Ban

By Monica Vaughan, Colusa County Sun-Herald, Feb 8 2013

Colusa is exercising control over local jurisdiction to decide whether medical marijuana dispensaries should be allowed to operate in the city.

The City Council decided Tuesday to move forward with ordinances that would ban medical marijuana dispensaries.

On the same day, the state Supreme Court heard arguments regarding the legality of municipalities to limit such businesses.

The question is whether cities have the authority to ban a business that would offer a product the state has made legal.

Meanwhile, federal government holds that the possession and cultivation of marijuana for any purpose is illegal.

“For me, its more about preserving the way we live in Colusa and protecting our youth,” said City Councilman Greg Ponciano. “Whether the state or federal feels that way, it’s just the way I feel about my town and I’ll defend it.”

City Attorney Krysten Hicks said at this point municipalities still have the right to ban.
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SF Medical Marijuana Industry Back On Upswing Industry Growing After Federal Trim

By Chris Roberts, NBC Bay Area, Feb 5, 2013

San Francisco’s medical marijuana industry is back.

Following a cutback when the federal Justice Department cracked down on federally-illegal, state-licensed medical marijuana dispensaries, there are no shortage of entrepreneurs willing to risk prison terms in order to sell medical cannabis, according to the San Francisco Examiner.

Letters from the United States Department of Justice led eight of the city’s licensed and taxpaying medical marijuana dispensaries to close down between Oct. 2011 and the summer of 2012, according to the newspaper. But no more dispensaries have received letters — and now, new dispensaries are opening their doors.

Two new dispensaries near Mint Plaza have begun operations, the newspaper reported. And more have filed permits to open. There are dispensaries in downtown, in the Outer Mission, and all over.
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California’s Medical Marijuana Wars Spark Up Again

By Howard Mintz, Santa Cruz Sentinel, 02/04/2013

California’s experiment with medical marijuana has sparked a hazy version of the old Not-in-My-Backyard syndrome.

From Hollister to Antioch, from Scotts Valley to Petaluma, from Seaside to Moraga, city after city has banned medical marijuana dispensaries, sending a message that even the sickest of patients must go elsewhere for that state-permitted dose of prescribed medical weed.

But on Tuesday, this fear-and-loathing approach to outlawing medical pot providers will face an unprecedented test in the California Supreme Court. The seven justices are to hear arguments on whether local governments can ban the dispensaries in view of the state’s 1996 voter-approved law legalizing pot for medical use.

The case involves the Inland Empire Patients Health and Wellness Center, which more than two years ago sued to block Riverside’s dispensary ban, arguing that cities and counties cannot bar activities legal in California. A state appeals court sided with Riverside, and now the Supreme Court, faced with similar legal tangles across the state, has jumped into the fray.
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Q&A: Your Friendly Neighborhood Marijuana Consultant, Jason Browne

By Paul Wachter, Esquire Magazine, 01/31/2013

Last fall, Washington state became one of the first two states (along with Colorado) to legalize the recreational use of marijuana. Now, Washington’s Liquor Control Board, tasked with implementing the policy, is hiring consultants to advise government officials on every aspect of the process, including cultivation, transportation, sales, and quality control. The state is expected to begin sales in December, when anyone over twenty-one will be able purchase up to an ounce of marijuana.

“The Liquor Control Board has a long and a very good history with licensing and regulation. We know it and know how to do it well,” spokesman Mikhail Carpenter told the Associated Press. “But there are some technical aspects with marijuana we could use a consultant to help us with.”

Washington and Colorado policy makers can also look at other states — eighteen, plus Washington, D.C. — that have legalized the medical use of marijuana. Esquire spoke with Jason Browne, a California-based consultant who has worked in many aspects of the cannabis movement, including serving on the Humboldt County Medical Implementation Committee and operating a medical-marijuana clinic.

ESQUIRE.COM: What can Washington state learn from California?

JASON BROWNE: Well, I think the first thing is to involve, from the beginning, all the players. For instance, while it might make sense for the Liquor Control Board to oversee the buying and selling of cannabis, it probably makes more sense for the state’s agricultural department to oversee growing.

ESQ: How will the state go about deciding how much pot it needs to grow?

JB: It’s not that hard a process. You start with surveys, and then after a year or so, you’ll have a good idea by tracking sales. I think people will be surprised how much marijuana they’ll need to grow. Here in California, we’ve found that the average medical user consumes three pounds a year if they’re smoking it. And it can be four to ten times more if they’re consuming it through edibles or other concentrations that use a lot more raw cannabis.

ESQ: Will there still be a black market?

JB: That’s why it’s so important to monitor the entire network, not just growers and sellers, but transportation and labeling companies. California hasn’t been very good about this. I think this has to do with the inherent problem of competing interests. There are cartels that stand to lose a lot of money, as, for that matter, law enforcement, including prisons, which earn a lot for prosecuting marijuana laws. And then you have farmers, too. In many cases here in California, growers that have come clean have been targeted by the feds, so there’s an incentive to stay in the shadows and take your chances.

ESQ: So how do you think the federal government is going to respond? Jenny Durkan, the U.S. attorney for the District of Washington, has said, “Regardless of any changes in state law, including the change that will go into effect on December 6 in Washington State, growing, selling or possessing any amount of marijuana remains illegal under federal law.”

JB: That’s the ultimate question. In California, we’ve seen both sides of it. In some instances, they’ve been hands-off, and in others they’ve been quite prosecutorial, raiding dispensaries and other operations. So is the state willing to stand up to the federal government and risk federal funds? It’s likely that you’ll see some high-profile raids, like you have in California and elsewhere, but they won’t really shut down what Washington state is doing.

ESQ: Is there any part of the Washington law that you don’t like?

JB: They have a provision for testing drivers to see if they’re under the influence of cannabis. But there’s really no medical test for that. If you smoke pot, especially if you’re a regular user, then it stays in your system for a long time, about a month. But there’s no test for the level of intoxication at a given moment. Besides, even if you take a big bong hit and decide to drive, studies in Canada and Britain have shown that drivers on pot are actually safer drivers than not only drunk drivers but sober drivers, too.

Join or follow the on-going discussion at Esquire Magazine.

Proponents of L.A. Medical Marijuana Ballot Measure Shift Support

Los Angeles Times, January 28, 2013

A coalition of medical marijuana activists that fought to put an ordinance regulating pot shops on the May ballot are abandoning their own initiative in favor of a city-backed ballot measure that seeks similar regulations.

Representatives for Americans for Safe Access, the United Food and Commercial Workers Union and the Greater Los Angeles Collectives Alliance announced Monday that they plan to campaign on behalf of the city’s proposal, which the City Council is expected to vote this week to place on the ballot.

The city proposal is similar to the one originally supported by the groups in that it allows only pot dispensaries that opened before a 2007 moratorium to operate. Unlike the group’s original ordinance, the city proposal will increase the tax levied on medical marijuana sales.
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