Global Ganja Report

The Supreme Court has agreed to hear a case that could set limits on the federal government's sweeping powers to seize property in drug cases under "criminal forfeiture" laws. Tony and Terry Honeycutt were charged with federal drug offenses after selling quantities of iodine-based water disinfectant at their camping and hunting store in Chattanooga—because the substance can also be used in the manufacture of methamphetamine. Tony, the actual owner of the store, pleaded guilty, and had $200,000 seized—the amount believed equivalent to his proceeds from the sales of the chemical. Terry fought the charge, and lost. The government then sought an additional $70,000 from him. In Honeycutt v. United States, Terry is arguing that he is not liable for the proceeds because he wasn't an owner of the store.

Oakland's KTVU  on Oct. 5 noted a miltestone for the East Bay city: exactly 10 years of operation for Harborside Health Center, the foremost "pioneering enterprise" in California's cannabis industry. "The world's attitude towards cannabis has shifted massively in the course of the 10 years that Harborside has been open," box-store dispensary founder Steve DeAngelo told the station, noting legalization of recreational use in four states and the District of Columbia. "So we have seen really a massive, tectonic shift in attitudes towards cannabis." KTVU hails Harborside as "a solid, respected business with 200 employees and contractors, serving 200,000 patients."

Oakland's Harborside Health Center announced May 3 that it has reached a deal to end the long effort by federal prosecutors to shut it down. Under the "historic agreement," the Justice Department will agree dismiss its forfeiture case against Harborside. In return, the dispensary agrees not to pursue further legal action against the government. Harborside's San Jose location is also included in the deal. Attorney Henry Wykowski said: "We are gratified that the government has finally seen fit to lay down its arms against Harborside in this case. The will of the people is for medical cannabis dispensaries to operate free from federal threats of closure. We hope we are on the cusp of a policy change and that the Department of Justice will no longer target state-legal dispensaries for forfeiture."

Federal authorities on Sept. 25 took legal action against over 70 medical marijuana dispensaries in Los Angeles County— sending warning letters to 68 properties, filing forfeiture suits against three, and serving search warrants at another three.  "Over the past several years, we have seen an explosion of commercial marijuana stores—an explosion that is being driven by the massive profits associated with marijuana distribution," said US Attorney André Birotte Jr in a statement.  "As today's operations make clear, the sale and distribution of marijuana violates federal law, and we intend to enforce the law. Even those stores not targeted today should understand that they cannot continue to profit in violation of the law." The statement said the targets include "all known marijuana stores in the Eagle Rock and downtown areas of Los Angeles, as well as the single store known to be operating in Huntington Park." (LAT, LA Weekly, Sept. 25)

The feds are promising an especially aggressive crackdown on Emerald Triangle cannabis growers this harvest season. "It's one of the most beautiful parts of this country, but it's just being destroyed by marijuana cultivation," said Randy Wagner, the DEA special agent in charge of Northern California operations. "I can tell you, we're going to be hot and heavy in Humboldt County from here on out." An Aug. 26 report n the Eureka Times-Standard says the feds are frustrated with the ongoing dispute over medical marijuana in California and determined to pick up the slack following harsh budget cuts at the state's Bureau of Narcotics Enforcement. The report suggests local enforcement is ready to cooperate directly with the DEA, even with reduced state involvement.

On Aug. 2, Rep. Barbara Lee (D-CA) and seven initial co-sponsors introduced HR 6335, the States' Medical Marijuana Property Rights Protection Act, in an attempt to stop the seizure of property from landlords of state law-compliant medical marijuana businesses. The introduction of HR 6335 comes less than a month after US Attorney Melinda Haag served an asset forfeiture suit against the landlord of Harborside, a dispensary in Rep. Lee's district, in Oakland. The Justice Department action was opposed by Rep. Lee, and also sparked an outcry from local and state officials, including City Council members, the Oakland city attorney, and the Board of Equalization.

California's most well-known medical marijuana dispensary, Harborside Health Center, was served with a civil complaint for "forfeiture of property" on July 9 for their locations in  both Oakland and San Jose. Employees found court papers announcing asset forfeiture proceedings against Harborside's landlords taped to the doors at the two locations the following morning. The Oakland dispensary has been fully permitted and operating since 2006 without incident. The forfeiture action is against the "third-party" property owner, Real Property and Improvements, and was filed by US Attorney Melinda Haag, who last October announced with the other US Attorneys an escalated campaign against medical marijuana dispensaries and growers.

After a widely publicized series of raids from Florida to New York City, on Oct. 5 the US Attorney's Southern District Office in Manhattan "announced the unsealing of an Indictment charging ten individuals and a complaint charging 40 individuals with participating in a massive marijuana trafficking ring that transported ton-quantities of marijuana from Florida and California for distribution in the greater New York area from the early 1990's to 2010."