Jacob Bell
New Member
SACRAMENTO–The federal crackdown on medical marijuana dispensaries may end up costing local governments a ton of money.
U.S. Attorney's in California began sending out letters warning despensaries and their landlords that their activity is illegal under federal law and that prison and confiscation of property is possible.
"It's very stressful," said Lynette Davies, the operator of Canna Care, a Sacramento medical marijuana dispensary and collective. She remembers when similar letters were sent out in 2008 before the Obama Adiministration decided to lay off medical marijuana.
"Many, many shops went out after those letters went out," said Davies. That meant patients had to go back underground to get their medicine.
Eastern District U.S. Attorney Benjamin Wright and others in the state have begun cracking down on operations he says are trafficking in pot and exporting it out of state. Davies agrees that profiteering from medical pot is wrong.
"I acutally agree with what he's doing. What we're afraid of is that he's unable to distinguish between those who are doing the right thing and those who are doing the wrong thing," said Davies.
Some dispensaries say their an intergral part of the community. Ron Mullins, manager of J Street Wellness which caters to the Gay, Lesbian and Transgender community says they participated in charities and community events. Beyond that, they were some of the over two dozen operations that applied for special licenses from the city.
"We paid 40 grand each in lcense fees, plus a 4 percent tax," said Mullins.
If dispensaries close patients will go back to the black market to get their medicine and the tax revenue disappears.
City officals say that amounts to around $1 million.
"That's a lot of money that goes to the city," said Mullins.
He also said employee salaries go to rent, food, gas and other expenses that circulate money through the city. Mullins says he's been getting job requests from dispensaries that have closed down because of the "federal activity."
Advertising dollars are also lost because several media outlets are not turning down ads because of threats from the federal government.
One dispensary operater told Fox40 News that he would close down if he or his landlord got a letter.
"You can't fight the Feds because there is no medical marijuana defense in the Federal Courts," he said.
But Davies, who weathered the 2008 round of letters says she'll stay open, hoping that she won[t be a target of the Feds if she runs a true not for profit operation.
"I know what I'm doing is right so I'n not going to close my doors," said Davies.
News Hawk- Jacob Ebel 420 MAGAZINE
Source: fox40.com
Author: Lonnie Wong
Contact: Contact Us
Copyright: FOX40.com
Website: Medical Marijuana Crackdown May Cost Cities
U.S. Attorney's in California began sending out letters warning despensaries and their landlords that their activity is illegal under federal law and that prison and confiscation of property is possible.
"It's very stressful," said Lynette Davies, the operator of Canna Care, a Sacramento medical marijuana dispensary and collective. She remembers when similar letters were sent out in 2008 before the Obama Adiministration decided to lay off medical marijuana.
"Many, many shops went out after those letters went out," said Davies. That meant patients had to go back underground to get their medicine.
Eastern District U.S. Attorney Benjamin Wright and others in the state have begun cracking down on operations he says are trafficking in pot and exporting it out of state. Davies agrees that profiteering from medical pot is wrong.
"I acutally agree with what he's doing. What we're afraid of is that he's unable to distinguish between those who are doing the right thing and those who are doing the wrong thing," said Davies.
Some dispensaries say their an intergral part of the community. Ron Mullins, manager of J Street Wellness which caters to the Gay, Lesbian and Transgender community says they participated in charities and community events. Beyond that, they were some of the over two dozen operations that applied for special licenses from the city.
"We paid 40 grand each in lcense fees, plus a 4 percent tax," said Mullins.
If dispensaries close patients will go back to the black market to get their medicine and the tax revenue disappears.
City officals say that amounts to around $1 million.
"That's a lot of money that goes to the city," said Mullins.
He also said employee salaries go to rent, food, gas and other expenses that circulate money through the city. Mullins says he's been getting job requests from dispensaries that have closed down because of the "federal activity."
Advertising dollars are also lost because several media outlets are not turning down ads because of threats from the federal government.
One dispensary operater told Fox40 News that he would close down if he or his landlord got a letter.
"You can't fight the Feds because there is no medical marijuana defense in the Federal Courts," he said.
But Davies, who weathered the 2008 round of letters says she'll stay open, hoping that she won[t be a target of the Feds if she runs a true not for profit operation.
"I know what I'm doing is right so I'n not going to close my doors," said Davies.
News Hawk- Jacob Ebel 420 MAGAZINE
Source: fox40.com
Author: Lonnie Wong
Contact: Contact Us
Copyright: FOX40.com
Website: Medical Marijuana Crackdown May Cost Cities
