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directly or purchased from certified patient cultivators. Assistant Los Angeles City Attorney Asha Greenberg said the Hemp Factory investigation brings a consumer warning -pot buyer beware: "You may have no idea what it's been treated with." http://www.sacbee.com/static/weblogs/weed-wars/Owner of PB medical marijuana dispensary pleads guilty By Neal Putnam /January 9, 2010 The owner of a Pacific Beach medical marijuana dispensary has become the first operator out of the 14 raided last year to plead guilty to federal charges involving manufacturing marijuana plants and using his business for illegal drugs and money laundering……Nunes also faces a criminal forfeiture procedure that would allow the government to keep the cash discovered at the two dispensaries, a warehouse and at his home. Agents found $38,915 in cash at the Pacific Beach site, and $29,777 in cash at his condominium, according to court records. Nunes has agreed to forfeit a total of $71,336 in drug proceeds. According to the U.S. Attorney’s office, Green Kross Collective sold approximately $16,000 24 worth of marijuana and marijuana products in a two-day period. At the site, agents found marijuana inside cookies, brownies, lollipops and even sodas. There were 25 plants found at the Pacific Beach site while agents found 89 plants at the downtown location….. http://www.sdnn.com/sandiego/2010-01-09/politics-city-county-government/owner-of-pb-medicalmarijuana-dispensary-pleads- guilty Kingsburg extends rule against medical marijuana dispensaries By Jenny McGill /January 6, 2010 The Kingsburg City Council extended an emergency ordinance to keep medical marijuana dispensaries out of the city for now. In November, Kingsburg City Manager Don Pauley said the city had received a request from someone wanting to apply for a business license to open a medical marijuana dispensary in Kingsburg. The city passed an emergency ordinance then to keep that from happening. Pauley said that currently the city has been working on preparing an ordinance about the establishment of medical marijuana dispensaries and medical marijuana cooperatives in Kingsburg. That ordinance will be presented to the city council and planning commission so it can be voted on later. But until that happens, Kingsburg had no regulations about medical marijuana dispensaries or cooperatives in the city before the emergency ordinance was passed. The rule gives the city time to make its own rules and regulations concerning the establishment or non-establishment of medical marijuana shops. The emergency ordinance was in place for 45 days. The city council held a public hearing Dec. 16 and unanimously approved extending the ordinance for 10 months and 15 days. The ordinance can be extended after that for one year…… http://www.kingsburgrecorder.com/articles/2010/01/06/news/doc4b44d8df59e8c770091017.txt Canyon Lake extends medical marijuana dispensary ban By GENE GHIOTTO /The Press-Enterprise /Wednesday, January 6, 2010 Canyon Lake council members voted unanimously Wednesday to extend the city's temporary ban on medical marijuana dispensaries for at least another year. The council extended the prohibition so city staff can continue gathering information for an ordinance to deal with the issue, city officials said. "We need to see what's working and what's not working," City Manager Lori Moss told the council before the vote. Extension of the ordinance does not prohibit the cultivation of marijuana for medicinal purposes, its possession and the use of medical marijuana as allowed by state law. Current city zoning ordinances do not address the establishment of dispensaries, including where they might be located. The original 45-day urgency ordinance was adopted March 4 and subsequently extended by more than 10 months….. http://www.pe.com/localnews/inland/stories/PE_News_Local_W_scanyon07.46c39c1.html Whittier City Council extends marijuana moratorium Posted: 01/13/2010 The City Council on Tuesday night voted unanimously to extend a moratorium on any new medical marijuana dispensaries for 10 months and 15 days. More time is needed to study the issue, stated Jeff Collier, director of community development, in the staff report. Staff has been evaluating the city's zoning maps to determine a reasonable distance between dispensaries, looking at regulatory standards adopted by other communities and looking at the possibility of placing a cap, Collier stated. The council in December approved the first moratorium because of fears that more such businesses would flood into the city…… http://www.whittierdailynews.com/news/ci_14181809 25 Hollister Passed Medical Marijuana Ban Jan 20, 2010 4:19 PM PST Hollister, CALIF--Hollister city council passed a ban on medical marijuana dispensaries Tuesday night. Mayor Victor Gomez said there was nothing in any current ordinance that banned medical marijuana dispensaries. So the city changed the municipal code banning them. Monterey also passed a 45-day moratorium on pot dispensaries at a meeting Tuesday night. Pacific Grove is supposed to talk about a similar ban on Wednesday. http://www.kionrightnow.com/Global/story.asp?S=11854753 Orland extends pot dispensary ban By Rick Longley/Tri-County Newspapers /Thursday, Jan 21 2010 Orland’s ban on medical marijuana dispensaries, collectives and cooperatives will remain in force through Dec. 6. The City Council this week unanimously approved extending the ban while the courts review laws enacted by other cities like Anaheim. State legislators also are looking at legalizing recreational marijuana, and that could impact the laws in the future, city attorney Tom Andrews said. In December, the council opted to keep the ban going another 45 days, but declined to pass a proposed ordinance on the issue, Andrews reported. Discussion came up in the fall after a nonprofit medicinal marijuana corporation applied for a business license in downtown Orland. Andrews quickly developed an interim moratorium on such operations, citing health and safety concerns. He added the city had been in the process of developing a marijuana ordinance, but the application came up before it was finished….. http://www.orland-press-register.com/news/orland-4812-ban-dispensary.html Merced County Supervisors Ban Medical Marijuana Dispensaries Merced County officials passed an ordinance this week permanently banning medical marijuana dispensaries across the unincorporated county. The Board of Supervisors voted unanimously Tuesday to support the ordinance, which mirrors ordinances adopted by the cities of Modesto, Ceres, Merced, Patterson, Atwater and Los Banos. Many other cities have moratoriums moratoriums on dispensaries. Though there are no marijuana dispensaries in Merced County, officials said during the board meeting that dispensaries have been troublesome in other communities. Besides attracting crime, they can lower property values, disrupt nearby businesses and increase illegal drug use and demands on police, county planning officials said. Law enforcement officials spoke in support of the ban. Chris Gallagher, chief of the Los Banos Police Department, said robberies and violent crimes occurred regularly at dispensaries in the city of Arcata in Humboldt County, where he previously served as chief of police. "In my experience ... these dispensaries have been extremely disruptive," he said. Merced Police Chief Russ Thomas and Atwater Police Chief Richard Hawthorne also spoke in support of the ordinance……. http://www.420magazine.com/forums/international-cannabis-news/110963-merced-county-supervisorsban-medical-marijuana-di spensaries.html Mariposa County Board of Supervisors Prohibits Medical Marijuana Dispensaries in the County January 29th, 2010 · No Comments At the January 26, 2010 Board of Supervisors meeting the Board on a 5-0 vote approved a forty five day ordinance that will prohibit Medical Marijuana Dispensaries in the county. This forty five day ordinance will also be used to define what is a medical marijuana dispensary. There are no dispensaries currently operating in the county although there have been several inquiries. The Board can extend this ordinance by holding another public meeting within the forty five days. The County in the agenda item wrote that without sufficient regulations, standards, procedures and thresholds which are enforceable pursuant to an adopted ordinance, there are potentially detrimental effects to the health, safety and welfare of the community. The county will use this time to study the necessary ordinances and regulations to regulate 26 the establishment of medical marijuana dispensaries in the county by determining appropriate zones and/or requiring conditional use permits. Supervisor Janet Bibby noted that the Board is just wanting to eliminate the dispensaries not the use. She also said she is getting calls about people wanting to relocate to Mariposa and open a dispensary….. http://goldrushcam.com/wordpr ess/?p=225 Council approves medical marijuana store ban BY: Paula McCambridge and Heather Young /Friday, Mar 26th, 2010 The Atascadero city council voted unanimously in support of staff’s recommendation to prohibit a medical marijuana facility but with some flexibility for caregivers to transport the prescribed drug to patients in their care. City Attorney Brian Pierik made the recommendation to staff saying there were two reasons to prohibit such a facility: one was because it violated federal law, and the other was because medical marijuana facilities reportedly result in “negative secondary effects.”……Discussion included concern from patients that they would not have access to doctor-prescribed marijuana. Toni Green spoke about her son, Matthew Green, who is calmed by prescribed marijuana use, according to his mother. http://www.atascaderonews.com/v2_news_articles.php?heading=0&page=72&story_id=2663 Millbrae bans medical marijuana dispensaries By Joshua Melvin /San Mateo County Times /02/10/2010 MILLBRAE — The city's elected leaders have made Millbrae the first in San Mateo County to ban medical marijuana dispensaries. By unanimous vote, the City Council approved an ordinance Tuesday night that prohibits the facilities from setting up in Millbrae but allows clinics and hospices to dispense medical marijuana to their patients. In doing so, the council went one step further than city councils in South San Francisco, San Bruno and Redwood City, which have enacted temporary bans on pot collectives. "It has no place in our city at this time," Millbrae Mayor Paul Seto said Wednesday….. http://www.insidebayarea.com/sanmateocountytimes/localnews/ci_14376974 Placerville imposes moratorium on medical marijuana dispensaries By Cathy Locke /Thursday, Feb. 11, 2010 Placerville city officials have declared a 45-day moratorium on the establishment and operation of medical marijuana dispensaries so the city can update ordinances governing such operations. John Driscoll, city manager and attorney, said a recent California Supreme Court decision eliminating restrictions on the amount of marijuana a qualified patient can possess has created an impossible situation for police attempting to enforce operating requirements and restrictions for dispensaries. He suggested Placerville might want to follow the lead of more than 100 California cities that have banned such operations. The City Council voted 4-0 Tuesday to impose the moratorium…..The council refused to renew the permit for Mountain Meds last April because of what city officials characterized as shoddy bookkeeping that raised questions about the business' legitimacy…… http://www.sacbee.com/ourregion/story/2528708.html Commission says ‘no’ to medical marijuana BY: Paula McCambridge /Posted: Friday, Feb 19th, 2010 The Atascadero Planning Commision voted 7-0 at a public hearing Tuesday in support of a staff recommendation to create a city ordinance to ban medical marijuana facilities within the city limits. The planning commission’s vote will soon go to the Atascadero City Council where a final decision will be made on the issue. The issue of allowing medical marijuana in Atascadero came before the city council in October 2009, at which time the council referred the matter to the planning commission for a public hearing. City Attorney Brian Pierik presented the staff report to the commission and said there were key 27 reasons staff recommended that medical marijuana facilities be banned from Atascadero. One, they remain in violation of federal law, he said, though he later added that the federal government has the option of respecting state law but is not bound by it. http://www.atascaderonews.com/v2_news_articles.php?heading=0&page=72&story_id=2555 Mountain View to ban medical marijuana — for now By Diana Samuels /Daily News Staff Writer /02/24/2010 No medical marijuana dispensaries will be allowed in Mountain View, at least not until April 18 of next year. At their meeting Tuesday night, Mountain View City Council members voted to ban pot clubs for now, but they made it clear they intend to eventually allow them after city officials develop some restrictions. "There is an interest in making this available — medical marijuana — for those that need it, absolutely," Council Member Laura Macias said. "We just want to make it safe and affordable." The council cast its 4-2 vote to introduce an ordinance banning dispensaries at a packed, sometimes standing-room-only meeting that also included a discussion of proposed city budget cuts. Council Member Mike Kasperzak was absent. Like other local cities including Los Altos, San Carlos and Redwood City, Mountain View officials decided to take up the issue of medical marijuana because there has been more interest in opening dispensaries since federal authorities announced they would stop prosecutions in states where medical marijuana is legal, such as California.….. http://www.mercurynews.com/breaking-news/ci_14466857 Landlord serves eviction notice to Hollister pot shop By Adam Breen /Feb 24, 2010 The landlord of the downtown Hollister medical marijuana dispensary recently served Purple Cross Rx with a three-day eviction notice that was ignored and this week filed an "unlawful detainer" action in court in an effort to force the shop to move. "I was very clear in the lease with regards to if I get any scrutiny from the city and if you [Purple Cross] can't defend yourself, then I'm going to take action to get you out," said Greg Dolan……Dolan said he has been in touch with Mayor Victor Gomez because the city has not backed off its claim that Purple Cross Rx is violating city zoning codes by operating a business that runs counter to federal law. "He's been in communication with me and I think he's being very cooperative," said Gomez. "After some thought, he felt [leasing to Purple Cross] probably wasn't the best decision. Because we see he's making an effort to be in compliance with city rules, we're watching the situation very carefully……. http://www.gilroydispatch.com/news/263460-landlord-serves-eviction-notice-to-hollister-pot-shop San Jose Orders 6 Pot Clubs To Close March 13,2010 SAN JOSE, Calif. --The city of San Jose told six medical marijuana clubs Friday that they need to close and find some place else to operate……"The current policy right now with the city of San Jose is that they are illegal in nature as far as land-use issues go," said code inspector Margaret Lafferty. "This is really what code enforcement is focusing on. We're dealing strictly with land use." San Jose city officials estimate as many as 30 medical marijuana clubs are operating in the city, but letters were sent only to the ones they received complaints about……Should the clubs ignore the cease and desist orders, their landlords could faces penalties and fines up to $2,500 each day. The city council is expected to hold a public hearing on the matter on March 30th. http://www.ktvu.com/bartshooting/22829477/detail.html 28 Walnut Creek marijuana collective prepares for closure By Doug Jastrow /Contra Costa Times /03/20/2010 WALNUT CREEK — Outside a nondescript office building just off Interstate 680, several customers hoping to obtain medical marijuana from the 3C Medical Cannabis Collective were met at the front door and told the collective was closed for the day. The organization had locked its doors early because it had run out of marijuana, according to Brian Hyman, its executive director. Hyman said his depleted stock was in anticipation of the collective's last day of business Monday. The collective was found to be in violation of the city's zoning laws and ordered by a Superior Court judge last month to close by Tuesday or face contempt-of-court charges. Hyman said he plans to comply with the judge's ruling. "It's difficult to sit there and tell people there's nothing I can do," Hyman said. "It's a shame." The city of Walnut Creek has been trying to shut down the collective since it first opened in August. City leaders issued a $500 fine for every day the collective remained in business. The bill now stands at around $60,000, although Hyman plans to fight the penalties. But it was the judge's preliminary injunction last month that ultimately forced Hyman to begin shuttering the collective. Hyman said he has spent months trying to work out a compromise with the city, but to no avail……Hyman said the vast legal bills he has compiled over the past few months — around $50,000 worth — have led him to the brink of bankruptcy. But the thought of shutting his doors and just walking away never occurred to him. "We're going to continue to fight," he said, "because we know people want us." http://www.mercurynews.com/breaking-news/ci_14719392?nclick_check=1 Medical Marijuana Dispensary Ordered Closed Monterey Business Doesn't Meet Zoning Requirements, City Says January 12, 2010 MONTEREY, Calif. --The city of Monterey is ordering the newly opened medical marijuana dispensary on Lighthouse Avenue to close immediately. In a letter to the dispensary's operators, the city said that "unfortunately, the information you provided on your application and to the Planning Division was not complete. The city learned through your recent interviews with the media that your business is actually operating as a medical marijuana dispensary. You withheld this critical piece of information from the city." The city in its letter said My Caregiver, Inc., had listed the nature of its business as "Healthcare Cooperative/Individual & Family Services" on its business application. The letter goes on to explain that the My Caregiver Inc. marijuana dispensary does not fall within any classification in Monterey's city zoning ordinances and that the owner of the property where the dispensary is located will be fined $2,500 per day until it closes. "If we see a violation we're going to enforce the law," said City Manager Fred Meurer. The business has 10 days to notify the city about whether it intends to appeal. In separate interviews with Action News 8, the owner of the property has also said he did not know the operators of My Caregiver Inc. were operating a marijuana dispensary. Both Meurer and the landlord renting the property to My Caregiver, Inc. said dispensary operators lied about being a healthrelated internet café with no mention of "medical marijuana." "Somebody didn't tell the truth. They opened a business that isn't allowed so we're going to close that business," said Meurer. "Realistically, we didn't leave it out. We covered it under herbal remedies which are what marijuana is," said Jhonrico Carrnshimbam, with My Caregiver Inc. The dispensary said it has not violated any city codes. "There is a gray area for businesses like this and any other types that may retail any goods they may not necessarily list," Carrnshimbam said. The debate transcends violation of laws, going into city values and perception of what these storefronts really are. My Caregiver Inc. said it's there as a non-profit, seeking to help local patients in need of safe access. "The only place in Monterey County, the county needs it. We have signed petitions from the area, we followed due process," Carrnshimbam said. City manager Meurer said he has his doubts. "If anybody believes this is not about somebody making a lot of money they're very, very naive. This is about money and it is about big money," Meurer said. http://www.ksbw.com/health/222 19671/detail.html 29 Judge orders Eagle Rock dispensary to stop selling medical marijuana John Hoeffel at Los Angeles County Superior Court /January 29, 2010 A Los Angeles County Superior Court judge issued a preliminary injunction today ordering an Eagle Rock dispensary to stop selling medical marijuana, a decision that city prosecutors believe is the first to find that state law does not give collectives the right to sell the drug. Judge James C. Chalfant's decision applies only to Hemp Factory V, a small outlet on Colorado Boulevard near the Glendale border, but could have enormous ramifications. Hundreds of collectives in Los Angeles and throughout the state operate in the same way, selling marijuana to anyone who shows up with a doctor's recommendation and signs a form to become a member. Although the state's courts have ruled repeatedly on medical marijuana issues, they have never directly addressed whether this widespread practice is legal. Chalfant concluded that state law does not authorize collectives to sell marijuana, but only to grow it and recoup reasonable costs. "A retail store that sells marijuana to its members simply does not satisfy the requirement of a collective to cultivate marijuana," he wrote in his decision…… http://latimesblogs.latimes.com/lanow/2010/01/judge-orders-eagle-rock-dispen sary-to-stop-sellingmedical-marijuana.html Monterey Medical Pot Dispensary Faces Lawsuit City Sues Mycaregiver Medical Marijuana Cooperative February 10, 2010 MONTEREY, Calif. --The city of Monterey said it has exhausted all other options and is now hoping a judge will be able to shut the doors on the Mycaregiver Medical Marijuana Cooperative. The city filed an injunction against the clinic on Monday calling it a public nuisance. The papers were served to one of its directors early Wednesday. "It's kind of rude to basically call a group of 500 patients who haven't caused any disturbances in the neighborhood, a nuisance," said cooperative director Jhonrico Carrnshimba. City attorney Deborah Mall maintains after the clinic ignored city law, including a cease and desist order, there was no choice but to go to court…..On Feb. 16, the City Council will decide whether to extend the moratorium to a full year. The city attorney said the moratorium will apply to Mycaregiver because its application was invalid. http://www.ksbw.com/news/22529968/detail.html L.A.-Based Medical Marijuana Company Bought For $15 Million By Dennis Romero, Tuesday, Mar. 2 2010 @12:41PM Even as a city ordinance cracking down on medical marijuana dispensaries looms, a strange announcement was made today: A company called International Merchant Advisors has agreed in principal to purchase a Los Angeles-based medical-marijuana concern called Organic Science, Inc. for $15 million in restricted common stock. Organic Science, which has an office at 11664 National Blvd. in Mar Vista, claims to be at the "forefront of medical marijuana research and development, medicinal marijuana growing, sales and distribution." The company also claims to be operating in 15 states were medical marijuana is legal, and to run an unknown number of medical marijuana "stores" and "clinics." Whoa. If this was 20 years ago Pablo Escobar would have been in on the deal. Today, it's guys in suits and women in power-Manolos. International Merchant Advisors CEO Mel Roseman, perhaps alluding to the city of L.A.'s crackdown, states, "There are very few opportunities to acquire existing operations which actually will bring current income in the medical marijuana space." Organic Science's website states that " ... we're passionate about ethically sourcing the finest medicinal marijuana, growing it with great care, and improving the lives of people who use it for health reasons. We care deeply about all of this; our work is never done." We're sure the fruit of this labor is sweet (and sticky). http://blogs.laweekly.com/ladai ly/city-news/pot-shops-big-business/ 30 Some Medical Marijuana Millionaires Are Turning to Philanthropy By SCOTT JAMES /Published: January 1, 2010 The popularity of pot clubs in the Bay Area has led to a burgeoning crop of medical marijuana millionaires. Call them the ganja riche. Like many of their nouveaux predecessors, they are trying to figure out what to do with their cash. Some are giving to charity, but you will not see any fanfare or buildings named in their honor. Medicinal marijuana remains a legal gray area, and nothing — even philanthropy — is simple when it comes to the proceeds. Oakland’s medical marijuana headquarters, Oaksterdam University, could not even sponsor a local food bank. “They refused our sponsorship because of other money they get from the federal government,” said Richard Lee, founder of Oaksterdam. While marijuana money and munchies might sound like the perfect fit, the food bank worried that such a partnership would have put the federal dollars it receives in jeopardy. “We appreciated the offer from Oaksterdam and gave it due consideration,” said Brian Higgins, the food bank’s spokesman. “In the end, it was not worth the risk.” The sense of legal uncertainty is created by the maze of laws surrounding medical marijuana. California voters approved it, but it remains a federal crime. Eric H. Holder Jr., the attorney general, has ended the Bush administration’s frequent raids on medical marijuana distributors, but dispensary operators know political winds can change. They avoid creating paper trails that might come back to haunt them. This has led to a delicate dance with financial matters, like filing taxes. Marijuana clubs and dispensaries have employees who receive W-2 forms. When it comes to filing tax forms identifying their business, it looks better if a shop is linked to a cafe or some other benign operation. Dennis Peron, co-author of the Proposition 215 referendum that legalized medical marijuana, said that those in the business know their activities are being monitored. “Giving away money to deserving people isn’t money laundering,” Mr. Peron said. But if the political pendulum in Washington swings to the right, a new Justice Department might not see it that way. Neither Mr. Lee nor Mr. Peron claims to be a millionaire. But according to insiders who asked not to be identified for fear of being singled out by the authorities, medical marijuana can be a remarkably lucrative business, especially in the San Francisco region, where zoning laws severely restrict the number of marijuana clubs. There are an estimated 1,000 in Los Angeles — more dispensaries than public schools, in fact — but only about 50 in the Bay Area. Less competition means that medicinal marijuana is, for some, an especially enriching shade of green. Those profiting from marijuana found a friend in Tim Patriarca, executive director of Maitri in San Francisco, the last hospice in California that cares solely for people dying from AIDS. Mr. Patriarca is a true believer in the power of cannabis, seeing first hand the comfort it gives to the terminally ill in their final days. He has also seen how those donating marijuana to the hospice for compassionate care were suddenly becoming rich. “It’s new wealth, quick wealth, and a great deal of it,” he said. “They were making money with no tradition of giving.” Many of the newly minted marijuana millionaires, he said, came from hardscrabble lives, with little understanding of philanthropy. So he did The Ask. The ganja riche gave, and the idea grew. It started small with $100 here and there. Then donations increased to $1,000 and $5,000. Now some clubs give as much as $20,000 in a year. The money is helping to offset the loss of more than $60,000 in state aid that Maitri received until it was eliminated during budget cuts last June. Mr. Patriarca sees a perfect circle in operation. After all, this marijuana is supposed to be for treating illness, and now some of those profits end up directly helping the sick. But the decision to accept the clubs’ donations was not made casually. “I knew it could be touchy,” Mr. Patriarca said. “I had to go to my board and ask, ‘Do we take this money?’” Now there is a push to put a referendum to legalize marijuana on the state ballot in 2010. . Even if that happens, however, federal laws are unlikely to change. The legal status of the