On November 1, federal agents raided G3 Holistic, Inc.'s three locations in Colton, Upland, and Moreno Valley, CA as well as the Ontario warehouse where the medical cannabis was grown. That same day, the homes of G3's president, Aaron Sandusky, and its chief financial officer, John Nuckolls, were also raided on the claim that Sandusky has been illegally selling cannabis to the general public.

Sandusky said officials confiscated up to $30,000 from his stores and detained him for more than seven hours in handcuffs at the warehouse, where they took all of the equipment and destroyed his plants. G3 reportedly serves more than 17,000 patients in Colton and Upland combined.

These raids came only a day before Sandusky was due in court to continue his fight to keep his dispensaries open. In June of this year he filed a stay against the city of Upland's August 2010 injunction against G3 and is appealing the city's prohibitions of medical cannabis dispensaries. A stay was granted on June 20, allowing the cooperative to operate until Sandusky's appeal was heard on November 2. The appeal was held as scheduled and the 4th District Court of Appeals has 90 days from that date to hand down their decision.

The city of Moreno Valley is also coming down hard on G3, utilizing a three year old ordinance that bans collectives and issuing $1,000 daily fines for running a business without a valid license or required certificate of occupancy. Additionally, the city attorney’s office has two pending misdemeanor criminal complaints related to code violations. The trial for these charges is set to begin November 14.

Last week, Americans for Safe Access (ASA) filed a lawsuit challenging the Obama Administration's attempt to subvert local and state medical cannabis laws. Our lawsuit argues that the Tenth Amendment forbids the federal government from using coercive tactics to commandeer the law-making functions of the states. The public and media response has been impressive. We have received hundreds of messages of support, new members have joined ASA, and the national media coverage has been positive. Thank you to everyone who already spoke up and helped out!

But we can’t stop there! ASA still needs your support to keep the momentum going in the right direction. Can you make a one-time or recurring donation to help us keep pushing back?


Earlier this year, ASA filed another lawsuit in federal court challenging the unreasonable delay in the federal response to the nine-year old cannabis rescheduling petition. Rescheduling cannabis under federal law is an important step towards making it legally available for research and therapeutic use. The Drug Enforcement Administration (DEA) promptly responded by denying the petition. ASA already filed a notice of appeal in this case, and will file the appeal brief challenging the DEA’s rescheduling decision very soon. Our appeal could lead to the first evidentiary hearings on the medical value of cannabis in federal court since 1994.

We are also working to put direct political pressure on the Obama Administration. Federal and state lawmakers are already responding to ASA’s call for opposition to the federal crackdown and a change in federal law. US Congressmen Dana Rohrabacher (R-CA) and Sam Farr (D-CA) spoke up early in the crackdown, and more recently, seven other Members of Congress joined them in signing an ASA-inspired letter to President Obama calling for rescheduling. In California, Senators Mark Leno (D-SF) and Leland Yee (D-SF), Assembly Member Tom Ammiano (D-SF), California Attorney General Kamala Harris, and several local elected officials have already spoken publicly in opposition to the crackdown. You can expect to see even more support like this, as ASA mobilizes our national grassroots base to visit state and federal representatives in their district offices nationwide.

We need your help to keep up this campaign. Can you make a special contribution to help right now? You can make your support more affordable by making smaller monthly contributions!

We can fight back against federal attacks on safe access. With your help, we can fight in federal court, galvanize support among state and federal representatives, and be sure the national media is telling the patients’ side of the story. Thank you to everyone who has joined ASA and contributed already. If you have not, now is the time.

Be sure to read more about ASA’s rescheduling letter signed by nine Members of Congress and elected officials opposing the federal crackdown on ASA’s blog. And check out some of the great media coverage… here, here, and here.

 

 

 

 

 

 

 

 

Earlier this month, in response to federal attacks by California’s U.S. Attorneys, several local and state officials spoke out against the aggressive interference in their medical marijuana laws. State Senator Mark Leno (D-San Francisco) and Assembly member Tom Ammiano (D-San Francisco) held a press conference with patients and advocacy groups, including Americans for Safe Access. The message was clear: the federal government must “stand down.”

On October 19th, Senator Leno stated the following:

I urge the federal government to stand down in its massive attack on medical marijuana dispensaries, which will have devastating impacts for the state of California. At a time when resources are precious and few, federal officials have chosen to waste time and money in an ambush that will harm countless patients who will no longer be able to safely access doctor-prescribed treatments. Our federal dollars, especially during a down economy, would be better spent on activities and programs that save jobs and help people in need. Instead, this ill-timed offensive would have no positive impacts on our state and would only force more Californians into unemployment.

Assembly member Ammiano also declared that:

Instead of supporting state efforts to effectively regulate medical marijuana in accordance with Prop 215, the Obama administration seems committed to re-criminalizing it. This destructive attack on medical marijuana patients is a waste of limited law enforcement resources and will cost the state millions in tax revenue and harm countless lives. I urge President Obama to reconsider this bad policy decision and respect California's right to provide medicine to its residents.

In a separate statement, State Senator Leland Yee (D-San Francisco) also blasted the decision to shut down licensed medical marijuana dispensaries in the city:

Medical marijuana dispensaries are helping our economy, creating jobs, and most importantly, providing a necessary service for suffering patients. There are real issues and real problems that the US Attorney’s Office should be focused on rather than using their limited resources to prosecute legitimate businesses or newspapers. Like S-Comm, our law enforcement agencies – both state and local – should not assist in this unnecessary action. Shutting down state-authorized dispensaries will cost California billions of dollars and unfairly harm thousands of lives.

Most recently, California Attorney General Kamala Harris spoke out against the recent federal crackdown:

Californians overwhelmingly support the compassionate use of medical marijuana for the ill. … While there are definite ambiguities in state law that must be resolved either by the state legislature or the courts, an overly broad federal enforcement campaign will make it more difficult for legitimate patients to access physician-recommended medicine in California. I urge the federal authorities in the state to adhere to the United States Department of Justice’s stated policy and focus their enforcement efforts on ‘significant traffickers of illegal drugs.

Even local officials are speaking up. Mendocino County Supervisor John McCowen called the federal raid on a medical marijuana collective licensed by the county, “outrageous.” Supervisor McCowen said in a written statement, “if the federal government truly wants to protect public safety,” it should change its strategy of:

[R]aiding medical marijuana growers who are doing everything they can to operate in full compliance with state and local law.

Perhaps the feds should take heed, lest more officials from across the state speak up in defense of patients and state law.

Today, in a joint effort between Congressional Representatives and Americans for Safe Access, several members of Congress sent a letter to President Obama expressing "concern with the recent activity by the Department of Justice against legitimate medical cannabis dispensaries in California that are operating legally under state law." The letter, headlined by Representatives Sam Farr (D-CA) and Dana Rohrabacher (R-CA) and signed by Representatives Mike Thompson (D-CA), Jared Polis (D-CO), Pete Stark (D-CA), Steve Cohen (D-TN), Barbara Lee (D-CA), Lynn Woolsey (D-CA), and Bob Filner (D-CA), noted that California was only the latest state hit in the federal government's campaign against medical marijuana.

This year alone has seen aggressive SWAT-style federal raids in at least seven medical marijuana states, as well as threats of criminal prosecution by U.S. attorneys against local and state public officials. It is our strong position that local and state governments must be allowed to develop, implement and enforce their own public health laws with regard to medical cannabis.

The members of Congress further stated that:

[I]t is more urgent now than ever to reschedule marijuana as a legitimate controlled substance for medicinal purposes.

Specifically, they requested that the Obama administration either reschedule cannabis as a Schedule II or Schedule III drug or that they publicly support the adoption of legislation that would remove cannabis from its current place in Schedule I. The letter comes on the heels of the Department of Justice's most recent attempt to circumvent California's 15 year old medical cannabis law.

In the beginning of October, California's four U.S. attorneys sent letters to at least 16 landlords and property owners who rent buildings or own land where dispensaries provide safe access to medical cannabis, notifying them that they were violating federal drug law. The letters warned that the dispensaries must shut down within 45 days or the landlords and property owners will face criminal charges and confiscation of their property - both real and personal - even if they are operating legally under the state's medical cannabis law.

This latest instance of federal interference is in stark contrast to the spirit if not the precise letter of the Obama Administration's policy on medical cannabis and though the DOJ is now claiming that President Obama had no prior knowledge of these latest enforcement tactics, the signers of the Farr-Rohrabacher letter urge the President to show respect for patients and their providers by changing federal policy and providing them with safe access to their medicine rather than pushing them back into the illicit market. Whether or not their pleas fall on deaf ears remains to be seen.

 

 

 

 

 

 

 

 

 

Earlier this year, on April 21st, the Washington State legislature passed SB 5073, a bill that would have established a licensing system for the dozens of medical marijuana distribution centers that existed to provide much-needed medication to thousands of patients throughout the state. Notably, the legislature passed the bill after Governor Christine Gregoire sought and received feedback from the Obama Justice Department. U.S. Attorney Michael Ormsby wrote that growing facilities, dispensaries, landlords, financiers, and even state employees “would not be immune from liability under the CSA (Controlled Substances Act).” In other words, anyone remotely connected to the production and distribution of medical marijuana could be criminally prosecuted under federal law. Yet, the legislature must have seen through these threats of intimidation because it passed SB 5073 anyway.

Less than a week after SB 5073 was passed, on April 27th, U.S. Congressman Jay Inslee (D-WA) sent a letter to Attorney General Eric Holder, seeking “further clarification” on the Justice Department’s position on “federal prosecution in states that have enacted laws authorizing medical use of marijuana.” Specifically, Congressman Inslee sought clarification on whether the Justice Department would really “prosecute a state employee who is operating in full compliance with SB 5073.” Unfortunately, nearly 6 moths later, Congressman Inslee is still waiting for a response.

Not-so-coincidentally, a day after the congressman sent his request for clarification, the federal government conducted several aggressive law enforcement raids in Spokane, Washington and later indicted multiple dispensary operators under federal law. A day after that, Governor Gregoire vetoed the parts of SB 5073 that included the establishment of medical marijuana production and distribution regulations.

Apparently, this was a thought-out, well-conducted strategy by the Obama Administration to undermine the efforts of Washington State legislators to establish sensible public health policy with regard to medical marijuana. And Washington is not alone. Similar derailments of public health policy happened in Arizona, California, Montana, and Rhode Island, to name a few.

Thursday, Congressman Jay Inslee sent a follow-up letter to Attorney General Holder, reminding him that the Justice Department has:

[F]ar more critical functions than preventing some of our Nation’s most vulnerable residents from getting the relief they need.

Once again, Congressman Inslee asked for:

[A] detailed justification as to why the Justice Department is focusing such a substantial portion of its limited resources in this area.

This is yet another example of the push back from federal legislators on President Obama’s confusing war against medical marijuana. He would do well to respond and, better yet, President Obama should reconsider his harmful and indefensible policy.

 

 

 

 

 

 

 

 

 

On Friday, President Obama’s Justice Department (DOJ) made clear its motivations to disrupt and undermine California’s medical marijuana laws. However, advocates argue that last week’s announcement by the state’s four U.S. Attorneys, which included threats against property owners, comes after months of aggressive DOJ attacks in several medical marijuana states. SWAT-style raids and threats of criminal prosecution against local and state officials has become emblematic of Obama’s policy on medical marijuana, a far cry from his pledge on the campaign trail that he was “not going to be using Justice Department resources to try to circumvent state laws on this issue.”

Yet, just as Obama’s confusing war on medical marijuana has reached a fever pitch, condemnation could be heard from several state and federal officials in California. Some state legislators and members of Congress are refusing to be intimidated by this latest round of threats from the federal government. Congressional members Dana Rohrabacher (R-CA) and Sam Farr (D-CA), as well as State Senator Mark Leno (D-San Francisco) and Assembly member Tom Ammiano (D-San Francisco) all decried the recent DOJ announcement in California.

In a statement issued to Americans for Safe Access (ASA), Congressman Rohrabacher called the DOJ effort “a waste of scarce federal resources.” In a separate statement issued to ASA, Congressman Farr had this to say:

Medical cannabis continues to be prescribed by physicians to patients suffering from painful and serious illnesses, as a means to minimize their pain and support their recovery. For that reason it is important that patients continue to have safe access to the medication they need. California has adopted clear regulations that allow patients to do just that, it is unfortunate that the Federal Government has decided to target these legal vendors instead of focusing those resources on those who sell illicit drugs.

State Senator Mark Leno told the Los Angeles Times that the DOJ strategy was a waste of precious resources at a time of fiscal crisis:

They’re wasting money they don’t have. This is not the issue of the day. This doesn’t create jobs. This does not keep the security of the nation intact. It doesn’t clean the environment. If anything, they should be demonstrating leadership in resolving the conflict between federal and state laws. Until we deal with that, we’re going to be going around in circles here.

Assembly member Tom Ammiano had perhaps the strongest words of condemnation in a press release issued shortly after the DOJ press conference on Friday. Ammiano said that the attack on medical marijuana would cost the state “millions in tax revenue and harm countless lives.”

I am bitterly disappointed in the Obama Administration for this unwarranted and destructive attack on medical marijuana and patients’ rights to medicine.  [Friday’s] announcement by the Department of Justice means that Obama’s medical marijuana policies are worse than Bush and Clinton.  It’s a tragic return to failed policies that will cost the state millions in tax revenue and harm countless lives. 16 states along with the District of Columbia have passed medical marijuana laws -- whatever happened to the promises he made on the campaign trail to not prosecute medical marijuana or the 2009 DOJ memo saying that states with medical marijuana laws would not be prosecuted?  Change we can believe in?  Instead we get more of the same.

Notably, Congressman Rohrabacher’s statement had a prescriptive solution:

[The DOJ announcement] underscores the need for Congress to pass H.R. 1983, the States’ Medical Marijuana Patient Protection Act.

He’s right. People across the country should contact their member of Congress and urge them to pass H.R. 1983, a bill that would reclassify medical marijuana and allow states to develop, implement and enforce their own laws without interference from the federal government.

The Department of Justice (DOJ) announced a major new crackdown on medical cannabis patients, providers, growers, and property owners on Friday. US Attorneys told reporters at a press conference in Sacramento that every medical cannabis patients’ cooperative and collective in California is illegal and must close within forty five days – even if they are obeying state law. The DOJ also dusted off a Bush-era tactic by expanding their crackdown to property owners who rent to medical cannabis providers and growers. The DOJ has already started sending letters threatening to prosecute property owners and confiscate their real estate using federal civil asset forfeiture laws.



The Obama Administration’s about face on medical cannabis in California should be a wakeup call for medical cannabis patients and providers in every state. The new crackdown represents the most visible evidence yet of a national medical cannabis backlash. Banks are closing accounts, the Internal Revenue Service is squeezing providers, and state access programs are on hold. And of course, the Drug Enforcement Administration continues to raid medical cannabis dispensing centers and gardens.

Opponents are reacting to the expansion of safe access in sixteen states and the District of Columbia, and to moves by state and local governments to implement medical cannabis laws with meaningful regulations. Federal law enforcement and other opponents know they must move now, or risk having medical cannabis permanently entrenched in local and state law. If patients and advocates fail to check the federal escalation in California, we can expect to see these same tactics in every state where medical cannabis is legal.

Americans for Safe Access (ASA) is calling on medical cannabis patients and advocates to redouble their commitment to the grassroots campaign for safe access. We need to make our voice heard at City Hall, in our state legislatures, and in the District offices of federal lawmakers right now. Elected officials need to know they cannot sweep safe access away, and they also need to know there is a safe political space for supporting medical cannabis. ASA provides a free Advocates Training Center to hone skills in direct advocacy, community organizing, media relations, and more.

ASA also calls on the nascent medical cannabis industry, and the industries that support it, to marshal their substantial financial resources to support the patients’ movement for medical cannabis. Lawyers, consultants, bankers, real estate professionals, merchant service providers, business equipment dealers, and others are needed in the campaign for safe access right now.

The solution to this newest challenge is political. If we rise to the occasion, we can push back this federal attack on medical cannabis and swing the pendulum back in our direction. But to do it, we need the time and resources of our constituency. ASA urges everyone who cares about medical cannabis to join the fight today.

Are you an ASA member? Join today!

 

[caption id="attachment_1949" align="alignnone" width="180" caption="Congressman Pete Stark"]

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The Internal Revenue Service (IRS) is playing hardball with medical cannabis providers in California and Colorado, and Congressman Pete Stark (D-CA) is moving to stop them. Using a provision of federal law adopted to fight large-scale drug trafficking, the IRS is disallowing tax deductions for ordinary business operating expenses like payroll, rent, and insurance. The result is a massive tax burden for providers – making it essentially impossible to operate. Congressman Stark explains why the IRS tactic is bad for patients and unfair:

We need to fix the tax code so that medical marijuana dispensaries may operate like the legitimate businesses that they are. If they cannot take the deductions allowed to every other legal business, the medical marijuana industry will cease to exist and patients will suffer. It seems ridiculous that we'd go after these dispensaries, which help people manage illness, when companies including Exxon, which pollutes the air, effectively paid no taxes last year. Our priorities need adjusting and our tax code needs an update, which is why I introduced the Small Business Tax Equity Act.

Congressman Stark’s bill, HR 1985, would exempt medical cannabis providers who are operating legally under their state’s law from a provision in Title 26 of the US Code, which forbids tax deductions for expenses incurred in “trafficking in controlled substances.” Congressman Stark recognizes that this section of the US Code was never intended for legitimate, state-sanctioned medical cannabis programs. Americans for Safe Access (ASA) is supporting HR 1983 in hopes of protecting patients’ access in every state where it is already legal.

Disallowing ordinary business deductions is just one more tactic the federal government is using in an effort to roll back medical cannabis. The Drug Enforcement Administration (DEA) continues to raid providers. Banks are under federal pressure to close medical cannabis accounts, and federal officials just seized accounts in Sacramento. And now the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is getting in the game. That agency recently decreed that medical cannabis patients cannot own guns or ammunition!

Federal intimidation is the primary impediment to fully implementing state medical cannabis laws. We cannot have a well-regulated, transparent medical cannabis program until the federal government and agencies step back and let the states do their jobs. Congressman Stark’s HR 1985 is a step in that direction. Medical cannabis advocates should support HR 1985 and other new federal legislation, so that we can finally put a stop to the federal interference.

 

 

 

 

 

 

Two weeks ago, the federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the Obama Justice Department, issued a memorandum instructing firearms dealers not to sell to lawful medical marijuana patients. The ATF memo -- an affront to patients’ Second Amendment rights to be sure -- was just the latest in a long list of policy statements and threatening letters from the federal government aimed at undermining the rights of medical marijuana patients. However, this particular effort against gun owners has people riled up more than usual.

After finding out about the ATF memo, Montana’s congressional delegation -- Rep. Denny Rehberg (R-MT), and U.S. Senators Max Baucus (D-MT) and Jon Tester (D-MT) -- blasted the decision. In response, Tester wrote a letter to the ATF last week, urging the agency to “immediately reconsider [its] misguided effort.” Rep. Rehberg and Senator Baucus made similar condemning remarks.

In defense of patients, Senator Tester wrote:

It is unacceptable that law-abiding citizens would be stripped of their Second Amendment rights simply because they hold a state-issued card authorizing the possession and use of marijuana for medicinal purposes.

In Michigan, the ATF is being especially proactive. Americans for Safe Access has received reports that the federal government is using information obtained from the state’s medical marijuana program to serve search warrants and forfeiture notices on patients with legally possessed firearms.

The ATF memo comes after the Department of Housing and Urban Development (HUD) issued a notice to state and local housing authorities that accommodation need not be given to legal medical marijuana patients and that eviction from public housing was an acceptable option.

Also earlier this year, the Federal Deposit Insurance Corporation (FDIC) issued an order, increasing the enforcement responsibilities of banks to ensure against criminal and illicit activity. This order has been used to deny or cancel banking services for countless legally operating medical marijuana dispensaries across the country. According to a Denver Post editorial from today:

[L]ast week, the lone bank in the state that openly worked with the [medical marijuana] industry closed an estimated 300 marijuana-related accounts for fear that the companies  are breaking federal law.

In a now-famous move, the Obama Justice Department sent out a series of letters this summer to public officials in at least 10 medical marijuana states, threatening criminal prosecution for implementing public health laws. This had a deleterious effect on several local and state laws in Arizona, California, Montana, Rhode Island and Washington to name a few.

More recently, however, the Internal Revenue Service (IRS) ruled that Harborside Health Center -- possibly the largest licensed medical marijuana distribution facility in California -- could not deduct its operating costs and must pay taxes on gross income. Besides the possibility of putting Harborside out of business, this could have a devastating effect on local distribution across the country.

The ATF memo and other examples of intolerance by the federal government illustrate the need for a federal policy that treats medical marijuana as a public health issue. As such, urge President Obama to develop a comprehensive policy on medical marijuana. Also, people should urge their Member of Congress to pass HR 1983 to reclassify medical marijuana, HR 1984 to restore banking services for the medical marijuana community, and HR 1985 to allow dispensaries to deduct their operating expenses when paying federal taxes.