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June 25, 2008
Scary news story
coming out from Humboldt County. READ
IT HERE. Note the part where they, (the DEA), state
that they are not going after 215 patients.
June 20, 2008
Talked to the City Clerk
about the status of the new regulations.
The City Attorney has finished their draft of the new Ordinance
to govern medical marijuana / medical cannabis
dispensaries. I've reviewed the draft Ordinance...it does
not look so good. The draft is far reaching and appears to
violate the word and spirit of Proposition 215.
Understanding that the City needs to protect itself I can see
where the City Attorney was coming from and what they are trying
to protect...just don't think they are going about it in the
right way.
Meanwhile...The City is still accepting hardship
applications, but they will require follow-up with City
Council.
Our office remains available to assist all parts
of the medical community.
I was also just
approached by another client with a dispensary that is for
sale. This one is an open and running location in the SFV.
Contact Me HERE
-Scott
______________________________________________________
April 07, 2008 STATEMENT REGARDING NEW CLIENTS
Due to the high volume of email
and calls our firm receives, I believe it easier for me to
create an outline of the current process of purchasing and/or
operating a California Medical Marijuana Dispensary
("MMD") instead of discussing the same
issues with each and every person individually.
There is
no question that owning and operating an MMD can be a
lucrative business, however, you must also be advised that
under Federal Law, the sale and/or distribution of marijuana,
(medical or not), is considered illegal and we can not
guarantee any change in Federal Law or their position and
tactics used to close down MMD's. As someone interested
in this business, one thing you must ask yourself is why
you want to own and operate an MMD. If it merely for
the income, then this is probably not the business for you,
the constant bombardment from various state and federal
agencies can become taxing on an owner. A proper owner
is someone who believes in the cause itself and an MMD
operator must be someone with the compassion necessary to work
with seriously ill patients on a daily basis as well as the
ferocity and tenacity to stand up for what they believe
in, even if it means spending a few hours in handcuffs.
That being said...if you are
starting from scratch and looking in the Los Angeles City
area, you will need to purchase someone else's license as the
City of Los Angeles is no longer accepting or issuing the
licenses. If you already have a license and
need assistance with a currently open and running location,
then I am certain we can assist you, please call our office to
set up an appointment at (626) 578-0708, I am at extension
"4"..
Alternatively, if you are looking
to purchase a license in the City of Los Angeles, we have
several clients who are willing to sell their license and/or
locations. Each of the license owners are currently
requesting $50,000 per license; this price is non-negotiable
across all of the owners. Please also be advised that
these are corporations that own licenses only and the buyer
must procure their own retail rental space, the current owner
has an office Headquarters, but all buyers must obtain
their own retail rental location.
-
Each MMD license is owned
by a California "C-Type" corporation and was
opened and properly filed with the California Secretary of
State as well as the City of Los Angeles prior to the
September 2007 deadline,
-
Each corporation has its own
corporate kit, including corporate book, stock certificates
and corporate seal.
-
On some of the MMD licenses,
the owner failed to file a "zero
income" return for the final quarter of 2007 with the
City, but this is merely a form that must be filed and (I
believe) the late fee is @ $250,
-
Each of the MMD's carries
its own liability insurance,
-
Each of the MMD's has its own
CA State Seller Permit, and
-
Each of the MMD's has its own
Federal Tax Identification Number.
-
Transfer of ownership
from one party to another is effectuated by a Shareholder
Meeting discussing and approving the sale.
-
A Purchase Agreement is signed
by both parties, payment is made and the stock certificates
are signed over to the new owner.
-
The new owner(s) have an
immediate Shareholders meeting where they name a new Board
of Directors
-
The Board of Directors, in
turn, have an immediate meeting where they nominate and
elect the new Officers.
-
The list of the new Directors
and Officers are filed with the California Secretary of
State
-
The City of Los Angeles is
notified of a change of address (these are licenses only and
the buyer must procure their own retail rental space).
Please note that this is a change of address only, this not
an application for a new license, the buyer operates under
the license that is already in existence.
-
The State Board of
Equalization is notified of the change of address
Additionally, there are other
cities that are still allowing (or at least not disallowing)
the opening of new dispensaries. For example, many
unincorporated areas located within a county, such as the
unincorporated parts of the County of Los Angeles, require the
filing of a Conditional Use Permit, This process can
take 6 months to 1 year to be completed and requires
impact studies, land and community surveys and other lengthy
requirements before meeting with the County Council to discuss
approval or disapproval of the Conditional Use. There is
no guarantee of approval or refusal when following this
process. We can perform these services at our firm's
normal hourly rate of $250.
Please also be advised that
we do not keep a list of all the cities and counties in
California that have and do not have moratoriums and/or
ordinances set-up and, unfortunately, unless a client is
willing to pay for the time it takes to contact each city
and/or county planning department, city council and possibly
others, it is not a cost-effective practice for our firm to
perform this research, so we do not do so.
We also have other clients who
currently have open and running MMD's that they are
willing to entertain offers for purchase, most of these
are starting their requests at $300,000 and up based on their
current patient load. Obviously, purchase of an
open and running MMD requires the above process,
plus the additional steps necessary for a full
business review; this can include inspection of the
business' patient records, profit and loss statements,
goodwill and reputation in the community, as well as
prior tax returns. We can perform these services at our
firm's normal hourly rate of $250. In addition, we would
also strongly suggest obtaining an independent assessment of the
business by a Certified Public Accountant.
Our firm is still accepting
appointments from potential new clients, but, again, because
of the high volume of calls and emails we receive, and because
of many recent improper events and/or occurrences in the
medical marijuana community itself, we feel that the spirit of
the Compassionate Use Law is being stretched too far and we
have had no choice but to become extremely discerning in who
we do and do not accept as clients. We apologize for any
inconvenience that this may cause.
If you are interested in
purchasing one of the licenses or MMD locations that our
clients have available, then please call our office to
set up an appointment at (626) 578-0708, extension number 4.
Please
be certain and serious about your decision to go forward
before making an appointment as we do not appreciate clients
who make and break multiple appointments.
Our initial interview meeting
is 1 hour long and is billed at our firm's normal hourly rate
of $250, payment is to be made in cash, up front, at the
beginning of the meeting. There are no exceptions to
this rule. Please prepare a list of questions and
concerns that you have before the meeting because there is a
lot of information that can be covered and 1 hour is not a
very long time.
One final thought:
We
believe that the Compassionate Use Law is an important step in
changing the way our government looks and deals with our
nation's failing medical system as a whole. By recommending
the use of natural alternative medications and stepping
away from the big business of chemical drug manufacturing, we
take a step closer back to a more natural and healthier way of
living.
Namaste
Scott
______________________________________________________
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FEB 07,2008
INTERIM ORDINANCE: The City of Los Angeles is under a
moratorium and no new licenses can be issued. The only
alternatives for new owners is to (1) Purchase an existing
dispensary, (2) Buy into/become partners with a currently
existing dispensary, or (3) purchase a license for a dispensary
from someone who registered it prior to the moratorium. We
have clients in all three of these positions. If you are
still interested in the City of Los Angeles, we can help, but
time is of the utmost importance. CONTACT OUR OFFICE
IMMEDIATELY TO SET UP AN APPOINTMENT: (626)578-0708, extension
"0" for assistance at setting up the appointment.
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______________________________________________________
Los Angeles
City Issues
- Did your business miss the Interim Control Ordinance
179027 filing deadline? We have the City Cerk's I.C.O.
Hardship Exemption Request. These have to be filled out
and filed with the Clerk. The Planning and Land Use
Management Committee will review the Exemption Requests and
present them to the L.A. City Counsel. The applicant will
have to appear before the counsel for a question and answer
session before the counsel decides to grant or deny the request
for exemption.
NEED HELP WITH ALL THIS?
One can only assume the City's next move in all this. My
opinion? I believe the businesses that failed to file the
documents in time will be visited by the LAPD and shut down for
failing to file. The ones that did file should expect a
visit from the City Building Inspector to ensure that the
establishment is up to code and there are no violations.
This includes exit signs, extinguishers, GFI plugs, handicapped
facilities and more.
NEED HELP WITH ALL
THIS?
______________________________________________________
More
L.A. City Issues
- The City of Los Angeles is demanding all owners personally
appear at the City Clerk's office before NOVEMBER 13, 2007
at 5:00pm and turn in the requested information including:
Their Form, City of LA Tax Reg Cert., Seller Permit, Lease,
Insurance, blank membership form, and County Health Permit (if
applicable). We are attempting to have the Clerk allow us,
as corporate counsel, to file the paperwork on our clients'
behalf...we are still waiting on their response. <<READ
MORE>>
______________________________________________________
DEA
Letters - The DEA has been sending landlords letter
threatening federal forfeiture of property for renting to
dispensaries. As property is governed by State Law, it is
unclear how they plan to accomplish any of these takings, but
never put anything past the federal government's power. In
actuality, the DEA is intentionally interfering with ongoing
business and may be liable under State Laws for their actions,
despite governmental immunity; this is a topic that is waiting
to be litigated.
<<Click here to read a .pdf copy of the letter>>
______________________________________________________
Landlord
Matters - Landlords, understandably, are concerned for their
property, please be understanding of their position. We
agree that they are pulling underhanded tactics at this time,
such as improperly serving Notice, however, we are aggressively
defending several locations and will continue to do so. We
emphasize with them, but they should also understand our plight.
______________________________________________________
Growing
- To properly set up a collective grow-op, a California
Not-for-Profit corporation must be used, this is explicitly
demanded by HSC §11362.5, et seq. Let's face it, if
vendors were operating "above board" there would be a
lot less issues from government.
______________________________________________________
Edibles
- To carry these, the cook must be using a health inspected
kitchen and it is questionable if the dispensary should as well,
but it is HIGHLY RECOMMENDED. Additionally, the dispensary
can be found in non-compliance for selling edibles that are not
manufactured under proper conditions and that are lacking proper
labeling. Speaking of labeling...the medicine bottles need
additional labeling...that's for a later blog.
GOOD
LUCK ALL...FEEL FREE TO CONTACT US FOR ASSISTANCE OR ADVICE.
-SCOTT
______________________________________________________
| The State of
California, along with over a dozen others, have
implemented medical marijuana programs for people with
certain conditions that the use of cannabis has been
proven to be not only effective, but in some cases,
more effective then over the counter or prescription
medications. The Federal government does not
recognize these State initiatives and measures as
valid under Federal Law. Therefore, marijuana of
any form, medical or not, is illegal under Federal
Law.
This was decided in the Raich
case that so many people refer to. The
true meaning of that case is that the Federal
Government can still arrest those who are in
possession of marijuana, but the Court did not
invalidate the California Law. Could they
have? Certainly, they could have said the
Federal Law pre-empts the State Law, but they did
not. What does this mean? That both are
controlling? Yes, it does. But, the
general rule is that a State Law is valid where it
does not try to rule over an area pre-empted by
Federal Law (ie Interstate Commerce or FCC Laws) and
where it is not in direct conflict with a Federal
Law. Do they conflict? Not directly.
The Controlled Substance Act does have a medical carve
out for Class I Controlled substances, of which
marijuana is included. The US Attorney General
has the authority to allow not only patients to use
Class I substances, but also to allow there to be
vendors of such substances. Interestingly, Class
I Controlled Substances, by definition, have no
medical use and a high probability for abuse.
Then why the carve out? Is the Controlled
Substance Act flawed in its own creation?
MORE RAMBLINGS
TO COME...STAY TUNED
SAME BAT-TIME
SAME BAT-CHANNEL |
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