Global Ganja Report

A major player in Canada's legal cannabis sector is seeking to acquire a troubled US-based company—the latest example of the trend toward consolidation in the industry now crossing international borders.

Compassionate care—providing medical marijuana to the ill—was what first opened legal space for cannabis in California a generation ago. But the state's Adult Use of Marijuana Act only regulates commercial businesses—leaving caregivers in legal limbo.

A Marijuana Eradication Team found 3,400 cannabis plants ("estimated street value": $10 million) growing in a remote area near Madonna County Park, outside of Gilroy, on June 28, and staked out the site waiting for the growers to return. Two men armed with rifles shortly approached the camp, and one reportedly raised his weapon when he saw the police; he was immediately shot by a member of the team. Identified as Alvaro Sanchez, 24, of Morgan Hill, he is now hospitalized with injuries that are not said to be life-threatening. The other man escaped.

Two men wearing clown masks and wielding handguns burst into the Creme de Canna medical marijuana dispensary in Santa Cruz Feb. 2, forcing employees to turn over the contents of the safe before fleeing. The hit mirrors one on Dec. 15, when two men wearing carnival masks held up the city's Herbal Cruz dispensary. (San Jose Mercury News, Feb. 2) The heists come amid growing concerns about gunplay in the West Coast cannabis industry, exacerbated by the frequent refusal of local authorities to issue concealed handgun permits to medical marijuana users. Such policies by mostly rural counties on the West Coast and elsewhere were dealt a blow by the US Supreme Court's recent refusal to hear an appeal of a lower court decision upholding the rights of permit-holders who use cannabis legally under state law.

Mayor Chuck Reed issued a memo Jan. 27 calling for the city of San Jose to suspend its controversial medical marijuana ordinance. He cited the California Supreme Court's decision to review four medical marijuana cases dealing with localities' power to regulate, as well as a referendum that has qualified for the ballot to repeal the ordinance. He said the city will remain in talks with dispensaries and will continue to collect taxes on them. "We're just in a position where we can't fix this without some clarification on this unsettled area of the law," Reed said. "It's just impossible for local government to do. So, we’re just going to have to wait." The City Council still has to act on Reed's memo.

California's Fourth District Court of Appeal ruled Nov. 11 that state law allows cities and counties to ban cannabis dispensaries. Other courts have upheld local government authority to restrict the location of dispensaries or declare a temporary moratorium, but the new ruling, in a case from Riverside, was the first to address a citywide ban. Riverside banned dispensaries in 2009 and sought to shut down the Inland Empire Patients' Health and Wellness Center, in May 2010. A Superior Court judge ruled in the city's favor six months later, but the center has stayed open during its appeal. The appeals court ruling found that state law allows medical patients to use cannabis and form collectives to supply it, but does not exempt them from local government authority to regulate land use. (LAT, SF Chronicle, Nov. 11)