Global Ganja Report

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.

More people were arrested last year in New York City for cannabis possession than in the entire 19-year period from 1978 to 1996, according to an analysis released Feb. 11 by the Drug Policy Alliance (DPA), drawing on figures from the New York State Division of Criminal Justice Services. In 2010—the sixth year in a row that possession arrests increased—50,383 were busted for low-level cannabis offenses.

A federal judge for the US District Court for the Western District of Michigan on Feb. 11 ruled that Wal-Mart did not wrongly fire an employee who had been using medical marijuana to treat a brain tumor. In dismissing plaintiff Joseph Casias' lawsuit, Judge Robert Jonker determined that the Michigan Medical Marijuana Act (MMMA) is in place to protect licensed medical marijuana users, but employers are not prohibited from adopting policies that ban marijuana use regardless of cause. Casias was administered a drug test per Wal-Mart policy, tested positive, and was subsequently notified of the termination of his at-will employment. (Jurist, Feb. 12)

Oakland City Attorney John Russo has withdrawn his legal counsel from plans to tax and license large-scale cannabis farms, and told the City Council to hire their own attorney.

The city's original cannabis cultivation ordinance set no limits on the size of the cultivation facilities, which would operate as stand-alone businesses separate from dispensaries. The council had hoped to start licensing the farms as early as last month, but suspended action on the licenses in December so the ordinance could be revised to more closely comply with state law.

In the past seven months, cannabis dispensaries have sprouted across Washington state, exploiting a loophole in the state's medical marijuana law that neither explicitly allows nor prohibits them. State tax officials estimate at least 120 are open, mostly in the Puget Sound area. Dozens more likely remain underground. Under pressure from all sides to "clear the haze," the Legislature is considering a bill, SB 5073, that would legalize, regulate and tax dispensaries and create the state's first authorized commercial cannabis farms. (Seattle Times, Jan. 29)

State Sen. Mark Leno (D-San Francisco) introduced legislation Jan. 27 that would prevent California employers from discriminating against medical marijuana patients. Senate Bill 129 would not change current law, which prohibits employees from using medical marijuana at the workplace. According to Leno, his bill "simply establishes a medical cannabis patient's right to work." SB 129 would reverse a 2008 California Supreme Court ruling that granted employers the right to fire or refuse to hire workers with a physician's recommendation for medical marijuana. Advocates have estimated that more than 400,000 medical marijuana patients live in California.

Christopher Bartkowicz of suburban Denver was sentenced to five years in federal prison Jan. 28 after pleading guilty to three cannabis-related charges—despite his claim to protection under Colorado's medical marijuana law. Federal agents raided Bartkowicz's Highlands Ranch home last February and seized hundreds of plants growing in his basement. If he had gone to trial, Bartkowicz could have faced a life term because of a previous drug conviction. His release will be followed by eight years of supervision.

The California Supreme Court on Jan. 3 allowed police to search arrestees' cell phones without a warrant, saying defendants lose their privacy rights for any items they're carrying when taken into custody. Under US Supreme Court precedents, "this loss of privacy allows police not only to seize anything of importance they find on the arrestee's body...but also to open and examine what they find," the state court found in a 5-2 ruling.