Global Ganja Report

More than a dozen local and federal law enforcement agencies conducted aggressive criminal raids March 14 on 26 medical marijuana dispensaries and grow sites in 13 Montana cities, according to a press release issued by US Attorney Michael W. Cotter. Federal agencies involved in the raid included the Drug Enforcement Administration, Immigration and Customs Enforcement, Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation. No arrests were made, but the US Attorney has alleged probable cause for several federal criminal violations.

Los Angeles voters approved a new medical marijuana tax March 8 that proponents say could raise millions of dollars for the city—although the measure was opposed by advocates and opponents of medicinal cannabis alike. Measure M, which passed with 59% of the vote, allows Los Angeles to collect $50 in taxes for every thousand dollars collected by medical marijuana clinics. (KABC, LA, March 9)

A vote to be held in Los Angeles Tuesday March 8 threatens to increase the cost of an already expensive treatment for medical marijuana patients in the city. Measure M, one of 10 ballot measures facing LA voters, would increase taxes on medical cannabis by 5%, above the nearly 10% patients already pay in sales tax. Patient advocates have come out in opposition to the measure, asking the city to find other sources of revenue and to remove the tax burden from medicinal users.

Representatives in the Minnesota legislature have proposed a bill to allow farmers to grow medical cannabis for resale to dispensaries in states that have legalized use and sale of marijuana for medical conditions. The House bill, HF0662, was introduced by members of the Democratic-Farmer-Labor Party (DFL).

The Supreme Court heard arguments Feb. 28 in DePierre v. United States, on whether the term "cocaine base" in the Federal Sentencing Guidelines is limited to "crack" or includes all forms of cocaine chemically classified as a base. The US First Circuit Court of Appeals in Boston ruled that "cocaine base" refers to "all forms of cocaine base, including, but not limited to crack cocaine." Counsel for the petitioner argue that Congress did not intend "cocaine base" to refer to substances used in the crack-production process.

Dubbed the "Wal-Mart of Weed," the 10,000-square-foot weGrow store, set to open this weekend at 1537 Fulton Ave. in Sacramento, is the first franchise for a company that calls itself a supply and training destination for legal cannabis cultivators. The enterprise started in Oakland last year as a warehouse store called iGrow. Now the Oakland location is being reorganized as a distribution hub for a network of retail hydroponics outlets. The Sacramento store—billed as "the first honest hydro store"—is to be followed by weGrow stores in Arizona, Colorado, New Jersey and Oregon in coming months.

The lower house of Montana's legislature on Feb. 21 voted up the repeal of the state's medical cannabis law. The repeal bill now goes to the senate. The Senate Judiciary Committee is planning to work on a new bill to put in place a licensing and regulatory system for the medical cannabis industry, paid for by new licensing fees.

Oakland's Harborside Health Center, the self-proclaimed world's largest cannabis dispensary—handling an annual $22 million in transactions—is being audited by the US Internal Revenue Service. Since late last year, the IRS has been auditing 2008 and 2009 federal tax returns for the Oakland location, one of two outlets Harborside operates for 70,000 medical cannabis users. The other facility is in San Jose.