Global Ganja Report

With California preparing to vote on a marijuana legalization initiative in November,  the city of Oakland is seeking not only tax revenues but a direct cut of profits from local cannabis business. A measure introduced in the City Council would require any new Oakland cannabis company to make the city government a 25% partner. Companies that don't cut Oakland in would not get a permit and therefore not be allowed to operate under local law—or state law, which mandates compliance with municipal ordinances.

Oakland's City Council voted unanimously on May 4 to approve a measure expanding the number of cannabis dispensaries and related businesses operating in the city. The new law seeks to bring the existing black market under the city's regulatory regime, covering everything from grow operations to retail sales. It will allow adding up to eight new dispensary permits each year, and foresees up to 30 new cultivators, 12 delivery businesses, five distributors, five transporters, two testing facilities and 28 manufacturing businesses.

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."

In a blow to municipal power to regulate medical marijuana, the US Supreme Court on March 21 refused to hear Oakland's appeal of last year's ruling by the 9th Circuit Court of Appeals that the city cannot help defend Harborside Health Center in federal court. The Justice Department has been trying to shut down the flagship dispensary on the Oakland waterfront—dubbed a "superstore" by US attorney Melinda Haag. The city of Oakland tried to intervene in the case, asserting that Harborside's closure would rob the cash-strapped municipality of millions in tax revenues.

The 9th US Circuit Court of Appeals in San Francisco on Aug. 20 rejected the city of Oakland's intervention in the US Justice Department's effort to shut the Harborside Health Center, finding that the legal move steps on the federal government's powers. In a unanimous three-judge ruling, the court acknowledged that Oakland had a right to sue, but said its arguments would undermine federal drug enforcement powers. The 9th Circuit was reviewing a 2013 lower court ruling tossing out Oakland's suit. The suit argued that a federal shut-down of one of four city-approved dispensaries would harm Oakland's interests and override California's 1996 medical marijuana law.

The House and Senate appropriations leadership has hammered out a budget bill that includes an historic amendment to curb federal Department of Justice (DoJ) enforcement in medical marijuana states. The measure, which was originally passed by the House in May with a 219-189 vote, aims to prohibit the DoJ from spending taxpayer money to undermine state medical marijuana laws. "This is great news for medical marijuana patients all across the country," said Rep. Sam Farr (D-CA), one of the co-authors of the House measure. "This amendment protects patients while the federal government catches up with the views of the American people. Patients will have access to the care legal in their state without fear of federal prosecution. And our federal dollars will be spent more wisely on fighting actual crimes and not wasted going after patients."

On June 27, Massachusetts' Department of Public Health rejected an application from Green Heart Holistic Health and Pharmaceuticals to operate a dispensary in Boston, despite giving the company initial approval. The reason stated for the denial is Steve DeAngelo's criminal record. Controversy over the Green Heart dispensary, awarded to Andrew DeAngelo, erupted when Steve's participation as the financial backer and "strategic adviser" was revealed. Since Steve wouldn't be physically working at the store, his name was not included in the application. DeAngelo pleaded guilty on Aug. 6, 2001 of possession of cannabis with intent to distribute and received a five-year suspended sentence and three years' probation.

In an unprecedented 219-189 floor vote late May 29, the House of Representatives approved the end of funding for Department of Justice (DoJ) enforcement in medical marijuana states. Advocates are hailing the vote as a major victory that signals a shift in the approach Congress is taking on this issue. The vote was on Amendment No. 25 to the Commerce, Justice & Science (CJS) appropriations bill. One hundred seventy Democrats and 49 Republicans voted in favor of the amendment. "This Congressional vote is a huge victory for patients," said Steph Sherer, executive director of Americans for Safe Access. "No longer will we have to look over our shoulder and worry when the next raid or indictment will prevent us from safely and legally accessing our medicine. This is a game-changer that paves the way for much more policy change to come."