Global Ganja Report

Federal prosecutors warn they are preparing to target newspapers, radio stations and other media outlets that advertise medical marijuana dispensaries in California. US Attorney Laura E. Duffy, whose district includes Imperial and San Diego counties, said cannabis advertising is the next area she's "going to be moving onto as part of the enforcement efforts in Southern California." Duffy said she could not speak for the three other US attorneys in the state but stressed that their efforts have been coordinated so far.

The four United States attorneys for California came together at a Sacramento press conference Oct. 7 to announce that they would move against landlords who rent space to storefront operators of medicinal cannabis dispensaries. Breaking with past practice, they actually addressed the state's medical marijuana law—only to say that it is being abused by a fast-growing cannabis industry. "This is not what the California voters intended or authorized,” said André Birotte Jr., US attorney for the Los Angeles-based Central District. "It is illegal under California law."

Federal prosecutors this week warned several  California cannabis dispensaries they must close in 45 days or face criminal charges and confiscation of their property. At least 16 dispensaries or their landlords received letters stating that they are in violation of federal law. The Associated Press obtained copies of the letters that a prosecutor sent to 12 San Diego dispensaries. They state that federal law "takes precedence over state law and applies regardless of the particular uses for which a dispensary is selling and distributing marijuana."

The IRS has ordered Oakland's Harborside Health Center, biggest cannabis dispensary on the West Coast, to pay $2 million in taxes, ruling that the collective may not deduct standard expenses such as payroll and rent. "They're attempting to tax us out of business," protested owner Steve DeAngelo. Ironically, the same day he received the IRS letter, DeAngelo was photographed handing the Oakland treasury a $360,000 check —third installment of $1 million in city taxes  Harborside generated in 2010.

Oregon landlord and insurance agent Keith Rogers is protesting that some 30 DEA agents broke down doors on his five houses in Gold Hill Sept. 29, pointed guns at his wife, uprooted hundreds of plants and seized shotguns, cell phones and a tractor. He says he made sure the 20 people he allowed to grow cannabis on his property had checked out under Oregon's medical marijuana law. If state agents had searched his properties, "they would have happily drove off and did nothing," he said. Instead, "it was strictly DEA. They are throwing their weight around and saying the voters of Oregon don't have any rights."

San Diego authorities said they have reached an agreement with a North Park landlord to evict cannabis dispensaries and massage parlors from his properties. San Diego City Attorney Jan Goldsmith said the owner of the building, at 4009-4010 Park Blvd., agreed to evict four dispensaries and a dozen massage parlors after authorities determined the businesses were violating zoning laws. Police said they believe the cannabis businesses were the cause of recent increases in traffic, loitering and public cannabis smoking in the area. Goldsmith said the landlord agreed to pay $10,000 in civil penalties without admitting liability. (UPI, Sept. 30)

Northern California's Humboldt Plant Fertilizers (HPF) announced Sept. 22 that it will become "the only natural liquid plant nutrient company banning any use of slaughterhouse by-products such as the bone meal, blood meal, and feather meal almost universally found in all other natural fertilizer products." Every product manufactured by HPF will now bear the "Holy Cow" symbol—a smiling bovine head with a halo and the words "We never use slaughterhouse by-products."

With signatures due at county courthouses, it appears highly likely a proposed Montana referendum to overturn the restrictive new state medical marijuana law will qualify for the November 2012 election. To make the ballot, a referendum needs the signatures of 5% of the voters in 34 of the 100 state House districts, or at least 24,337 signatures. Secretary of State Linda McCulloch's office has reported tabulating 19,973 qualified signatures so far for Initiative Referendum 124, the proposed medical marijuana measure. It has qualified in 31 House districts. The proposed initiative seeks to repeal the new law that bans for-profit marijuana operations and makes it more difficult to qualify to be a registered user. (AP, Sept. 29; Billings Gazette, Sept. 28)