Harvest of AZ’s Approach to Medical Marijuana

AZCentral.com:  “The absence of the usual signals — a lighted green cross or a bright green leaf with the distinctive spikey leaves — is not a coincidence. It’s truly by design.  It was a deliberate decision Harvest of AZ CEO Steve White and his business partners made when coming up with the model for their medical marijuana dispensary in 2010.”

Note:  There is no company formed in Arizona or registered to do business in Arizona named “Harvest of AZ.”  There is an Arizona limited liability company called Harvest of Arizona, LLC, that was formed on July 31, 2015.  Its sole member is Steve White.

Query:  Why does the story say Harvest of AZ acquired its dispensary in 2010, five years before the LLC was formed?  Arizona medical marijuana dispensary licenses are not transferable.

By |2019-06-18T19:56:36-07:00May 3rd, 2017|Stories & Articles|Comments Off on Harvest of AZ’s Approach to Medical Marijuana

NFL Players Fight Pain with Medical Marijuana

Washington Post:  “One by one, they entered a nondescript building on the eastern edge of town, 18,000 square feet with no signage out front. They came looking for relief. These nine former professional football players are part of the Denver Broncos Alumni Association. They played in nearly 700 NFL games combined and have enough aches and pains to keep an entire hospital staff busy.  ‘Every day, I wake up in pain, from my ankles to my neck,’ said Ebenezer Ekuban, 40, who played defensive end for nine NFL seasons.”

By |2017-05-05T07:57:30-07:00May 2nd, 2017|Stories & Articles|Comments Off on NFL Players Fight Pain with Medical Marijuana

Members Of Congress Seek To Help Cannabis Businesses With Tax Reforms

Forbes.com:  “Members of Congress on Thursday tried to throw the cannabis industry a legislative lifeline on taxes. The Small Business Tax Equity Act of 2017, introduced in the House by Rep. Carlos Curbelo (R-FL) and Rep. Earl Blumenauer (D-OR) and in the Senate by Sen. Ron Wyden (D-OR), Sen. Rand Paul (R-KY), and Sen. Michael Bennet (D-CO) today, would allow state-legal cannabis businesses to take normal business deductions like any other legal business. Known as 280E, the tax code provision prevents cannabis businesses from taking normal business deductions related to sales.

By |2017-04-01T09:05:47-07:00April 1st, 2017|Stories & Articles, Tax Issues|Comments Off on Members Of Congress Seek To Help Cannabis Businesses With Tax Reforms

Cannabis Taxes: Introduction to Marijuana Taxation

Craig W. Smalley, who has a Masters in Taxation, wrote a three part article on how Internal Revenue Code Section 280E affects the federal income taxation of businesses that grow or sell marijuana.  The first article starts with:

“Following the 2016 elections, marijuana is now legal in some capacity in 28 states. However, even though it’s legal in certain states, the federal government considers the drug an illegal Schedule I narcotic. Resultingly, business owners in the marijuana industry have hit a wall with IRC §280E, which states:

‘No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of Schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted’.”

See Part 1, Part 2 and Part 3.

By |2017-04-01T08:47:54-07:00April 1st, 2017|Stories & Articles, Tax Issues|Comments Off on Cannabis Taxes: Introduction to Marijuana Taxation

SEC Says Medbox Made Up Bogus Revenue & Mehdizadeh to Pay SEC $12 Million

On March 9, 2017, the U.S. Securities & Exchange Commission issued the following press release:

Securities and Exchange Commission v. Notis Global, Inc. (f/k/a Medbox, Inc.), et al., Civil Action No. 2:17-cv-01905 (C.D. Cal. filed March 9, 2017)

SEC Charges Marijuana-Related Company and Executives With Touting Bogus Revenues

The Securities and Exchange Commission charged a California-based company and its founder with falsely touting “record” revenue numbers to investors and claiming to be a leader in the marijuana industry while some of its earnings came from sham transactions with a secret affiliate.

According to the SEC’s complaint, Medbox provided marijuana consulting services and claimed to sell vending machines known as “Medbox” devices capable of dispensing marijuana on the basis of biometric identification. The SEC alleges that Vincent Mehdizadeh created a shell company called New-Age Investment Consulting to carry out illegal stock sales and used the proceeds from those sales to boost Medbox’s revenue. Medbox allegedly issued press releases headlining the phony revenues as record earnings to legitimize itself as a viable commercial operation when in fact nearly 90 percent of the company’s revenue in the first quarter of 2014 stemmed from sham transactions with New-Age. Mehdizadeh allegedly acknowledged in a text message that “the only thing we are really good at is public company publicity and stock awareness. We get an A+ for creating revenue off sheer will but that won’t continue.”

Meanwhile, according to the SEC’s complaint, Mehdizadeh funded the purchase of a luxury home in the Pacific Palisades with proceeds from New-Age’s illicit stock sales.

The SEC’s complaint additionally charges Medbox’s then-CEO Bruce Bedrick with being complicit in the scheme and personally profiting. The SEC also charged New-Age and Mehdizadeh’s then-fiancée Yocelin Legaspi with unlawfully selling unregistered securities. Mehdizadeh installed Legaspi as the supposed CEO of New-Age when he created the company.

Without admitting or denying the SEC’s allegations, Mehdizadeh and Medbox, which has since changed its name to Notis Global, have agreed to settle the SEC’s charges. The settlements are pending final approval by the court. Medbox consented to the entry of a final judgment permanently enjoining it from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act) and Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 10b-5, 12b-20, 13a-11, and 13a-13 thereunder. Mehdizadeh consented to the entry of a final judgment permanently enjoining him from future violations of Sections 10(b) and 15(a) of the Exchange Act and Rules 10b-5 and 13b2-2 thereunder, aiding and abetting Medbox’s violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-11, and 13a-13 thereunder, and Sections 5(a), 5(c), and 17(a) of the Securities Act; requiring him to pay disgorgement of $6,014,048 plus prejudgment interest of $270,299.35 and a civil penalty of $6,014,048; and prohibiting him from serving as an officer and director of a public company or participating in any penny stock offerings.

The Commission’s complaint also alleges that Bedrick violated Section 10(b) of the Exchange Act and Rules 10b-5, 13b2-2, and 13a-14 thereunder, Section 17(a) of the Securities Act, and aided and abetted Medbox’s violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-11, and 13a-13 thereunder. In addition, the complaint alleges that Bedrick failed to comply with Section 304 of the Sarbanes-Oxley Act of 2002 (SOX) and seeks a permanent injunction, disgorgement plus prejudgment interest, a civil penalty, a penny stock bar, an officer and director bar, and reimbursement pursuant to Section 304 of SOX. Finally, the complaint alleges that Yocelin Legaspi and New-Age Investment Consulting violated Sections 5(a) and 5(c) of the Securities Act and seeks permanent injunctions, disgorgement plus prejudgment interest, and civil penalties. The SEC’s litigation continues against Bedrick, Legaspi, and New-Age.

See “A Convicted Thief and a Chiropractor Claim Their Pot Company Isn’t a One-Hit Wonder.”

By |2017-03-11T07:27:24-07:00March 11th, 2017|Medbox, Stories & Articles|Comments Off on SEC Says Medbox Made Up Bogus Revenue & Mehdizadeh to Pay SEC $12 Million

Republican Congressman Introduces Bill to Legalize Marijuana

Republican Congressman Justin Amash, three other Republicans and three Democrats introduced House bill H.R.1227, Ending Federal Marijuana Prohibition Act of 2017.  The bill states:

Prohibition On Certain Shipping Or Transportation.—This Act shall not apply to marihuana . . . .

Removed from schedule of controlled substances.—Subsection (c) of Schedule I of section 202(c) of the Controlled Substances Act (21 U.S.C. 812(c)) is amended—

(1) by striking “marihuana”; and

(2) by striking “tetrahydrocannabinols”

See “It’s 2016, yet the DEA still refers to cannabis as ‘marihuana.’ Why is that?

By |2017-03-11T07:10:17-07:00March 11th, 2017|Federal Dispensary Attacks, Stories & Articles|Comments Off on Republican Congressman Introduces Bill to Legalize Marijuana

Israel Decriminalizes Marijuana

Reuters:  “The Israeli government voted on Sunday in favor of decriminalizing recreational marijuana use, joining some U.S. states and European countries who have adopted a similar approach.  “On the one hand we are opening ourselves up to the future. On the other hand, we understand the dangers and will try to balance the two,” Prime Minister Benjamin Netanyahu told his cabinet in broadcast remarks.”

By |2017-03-05T10:50:38-07:00March 5th, 2017|Stories & Articles|Comments Off on Israel Decriminalizes Marijuana

Feds Warn Duke Rodriguez Not to Have Pot at Nevada Pot Festival

NM Political Report:  “A letter from the U.S. Department of Justice to organizers of a cannabis festival in Nevada could signal how the Trump administration plans to enforce marijuana laws.  Nevada’s U.S. District Attorney sent a letter last week to Duke Rodriguez, CEO of the New Mexico and Arizona based Ultra Health, with concerns that cannabis will be present at the High Times Cannabis Cup. . . . Bogden also addresses Obama-era guidance from the Department of Justice to U.S. district attorneys. In 2013 Deputy Attorney General James Cole issued a memo stating the Department of Justice would not prioritize arrests for possession of small amounts or use of cannabis. . . . ‘The memoranda are not laws or regulations, and they do not create any rights that may be relied upon by any person,’ Bogden wrote. ‘Marijuana remains illegal under federal law’.”

By |2017-03-03T04:44:51-07:00March 3rd, 2017|Federal Dispensary Attacks, Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Feds Warn Duke Rodriguez Not to Have Pot at Nevada Pot Festival

Arizona Attorney General Abandons Bill Montgomery’s Crusade Against Medical-Marijuana Law

Phoenix New Times:  “Maricopa County Attorney Bill Montgomery launched a fresh appeal this week in a lawsuit he believes could overturn the state’s medical-marijuana law.  This time, though, his office will be going it alone.  Arizona Attorney General Mark Brnovich has chosen to side with Arizona voters.  On Tuesday, Montgomery filed a petition to the Arizona Supreme Court in White Mountain Health Center v. Maricopa County, keeping up a fight he began in 2011.”

By |2017-02-27T07:38:07-07:00February 27th, 2017|AZ Marijuana Law Lawsuits, Stories & Articles|Comments Off on Arizona Attorney General Abandons Bill Montgomery’s Crusade Against Medical-Marijuana Law

The Trump Administration’s View on Marijuana?

National Law Review:  “The incoming Trump Administration may usher in a more hostile climate to state efforts to legalize the sale and distribution of marijuana and products that contain the drug. . . . Below we examine the positions taken by President-elect Trump and his nominee for Attorney General, Senator Jeff Sessions, on (1) medical and recreational marijuana, (2) states’ rights, (3) attitudes toward marijuana use, and (4) enforcement of federal drug laws.  President-elect Trump has made it clear that he supports medical marijuana.”

By |2017-02-27T07:35:33-07:00February 27th, 2017|Federal Dispensary Attacks, Stories & Articles|Comments Off on The Trump Administration’s View on Marijuana?

Sean Spicer: Trump May Crack Down on Recreational Pot

Phoenix New Times:  “Recreational marijuana might face ‘greater enforcement’ by federal authorities, White House Press Secretary Sean Spicer said on Thursday.  Spicer’s statements at a White House news conference seemed to foreshadow a crackdown on state-legal marijuana operations, while drawing a distinction between medicinal- and adult-use programs.  President Donald Trump has said previously he believes in medical marijuana “100 percent” and in states’ rights.”

By |2017-02-24T07:45:26-07:00February 24th, 2017|Federal Dispensary Attacks, Stories & Articles|Comments Off on Sean Spicer: Trump May Crack Down on Recreational Pot

Canadian Company Loans Money to Arizona LLC

Valens GroWorks Corp. issued the following press release on February 16, 2017:

VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 02/16/17 — Valens GroWorks Corp. (CSE: VGW) together with its subsidiary (collectively, the “Company”) is pleased to announce its engagement under a 5-year, renewable, Professional Services Agreement (the “PSA”) with Arizona-based marijuana cultivation and medicinal dispensary business MKHS, LLC [whose member is MKHS Holding Company, LLC whose member is Kittrell Children’s Trust] and its affiliate MKV Ventures 1, LLC [whose members are MKHS LLC and Westland Capital Advisors SA] (collectively, “MKHS”).

In addition, MKHS has issued to the Company a US$1,212,500 Promissory Note, Loan Agreement and Guaranty that secures repayment of previous advances (collectively, the “Arrangement”). This Arrangement supersedes and replaces the Company’s previously described investment in MKHS and settles all outstanding issues between the parties.

As a result of this Arrangement, MKHS will complete the buildout of the 28,000-sf Farmtek greenhouse expansion, as proposed and funded by the Company in 2016 (the “Buildout”). In accordance with the PSA, payments of US$60,000 per month for management services (“Management Services”) will commence to the Company upon completion of the Buildout, with the initial three month’s payments to be deferred and paid at the end of the third month following Buildout to allow for an initial harvest. In addition, the Company will provide consulting services (“Consulting Services”) to be performed and invoiced monthly, and will be reimbursed for approved out-of-pocket expenses
and sub-contracted services.

In accordance with the Arrangement, loan interest accrues at the rate of 15% per annum commencing May 15, 2016. Principal and interest, as well as US$30,000 in cost recoveries for past accrued fees, shall be payable to the Company by MKHS in arrears commencing at the end of the third month following Buildout, and on the 15th day of each month thereafter over a 5-year term.

MKHS supplies medical marijuana pursuant to the Arizona Medical Marijuana Act, operating an 11,000-sf warehouse cultivation, commercial kitchen and extraction facility, and a nearby fully-secured 9.5-acre operation that includes a 3,000-sf automated greenhouse and 21,780-sf (1/2 acre) Airstream wind-assisted, air-supported greenhouse, and the proposed Buildout. MKHS also operates two state-licensed “healing center” dispensaries, and distributes its own in-house prepared, branded line of edibles, concentrates and extracts.

See “GENOVATION CAPITAL ANNOUNCES BINDING AGREEMENT TO ACQUIRE MKHS LLC.”

MKHS Investor LLC cultivates medical marijuana. The firm owns certain Arizona medical marijuana companies, dispensaries, and cultivators including Purple Med Healing Center and Green Med Wellness Center. It supplies its product pursuant to the Arizona Medical Marijuana Act. The company is headquartered in Tucson, AZ.”

By |2019-06-18T19:56:36-07:00February 18th, 2017|Stories & Articles|Comments Off on Canadian Company Loans Money to Arizona LLC

Medical Marijuana Bills Introduced in Arizona Legislature

Tucson Weekly:  “Arizona lawmakers seek greater control over marijuana and ballot initiatives. It seems too much pot is giving Republican state lawmakers an identity crisis as they keep trying to pass greater regulation on the Arizona marijuana industry.  Southern Arizona Rep. Vince Leach introduced a bill that would restrict dispensaries in rural areas from relocating to the cities

By |2017-02-12T08:04:33-07:00February 12th, 2017|Stories & Articles|Comments Off on Medical Marijuana Bills Introduced in Arizona Legislature

Ex-DHS Employee’s Clients Get Two Dispensary Licenses

CBS 5 TV has a story that says former Arizona Department of Health Services employee Adam Goldie provided consulting services to two applicants that were awarded Arizona medical marijuana dispensary registration certificates, aka, dispensary licenses.  CBS 5 says Goldie’s business is “Brightroot,” but this is a tradename owned by Adam Goldie’s Arizona limited liability company called “Charles Ewell Investments, LLC.”

CBS 5 – KPHO

By |2019-06-18T19:56:00-07:00February 12th, 2017|Dept Health Services, Stories & Articles|Comments Off on Ex-DHS Employee’s Clients Get Two Dispensary Licenses

Dispensary License Losers Sue Arizona Department of Health Services

As of February 11, 2017, four companies that applied for Arizona medical marijuana dispensary licenses during the 2016 application period and whose applications were rejected have sued the Arizona Department of Health Services.  Each plaintiff alleges that its application designated a location for its medical marijuana dispensary that complied will all requirements of applicable local zoning ordinances, but the Arizona Department of Health Services awarded licenses to applicants whose dispensary addresses did not meet all applicable zoning ordinances.

The GAM Enterprises, LLC, BAB Holdings, LLC & 3 SL Family, LLC Lawsuit

On December 28, 2016, GAM Enterprises, LLC, BAB Holdings, LLC & 3 SL Family, LLC sued DHS.  GAM Enterprises, LLC’s sole member is Genifer Murray.  BAB Holdings, LLC’s sole member is Ingrid Joiya Warrick.  The members and managers of 3 SL Family, LLC, are Larry C. Leverett and Yolanda Denise Leverett.

GAM Enterprises, LLC, applied for a dispensary license in CHAA 58 in South Scottsdale.  The complaint alleges that DHS awarded the dispensary license to an applicant whose dispensary will be located at 6710 E. Camelback Road, Scottsdale, Arizona.

BAB Holdings, LLC, applied for a dispensary license in CHAA 40 in north Scottsdale.  The complaint alleges that DHS awarded the dispensary license to an applicant whose dispensary will be located at 14405 N. Scottsdale Road, Scottsdale, Arizona.

3 SL Family, LLC, applied for a dispensary license in CHAA 78 in Ahwatukee.  The complaint alleges that DHS awarded the dispensary license to an applicant whose dispensary will be located at 10835 S. 48th Street, Phoenix, Arizona.  The complaint alleges that the location failed to satisfy the zoning requirements of applicable law and that DHS should have rejected the application for that location.

The complaint asks the court to order that the licenses awarded by DHS with respect to CHAAs 40, 58 and 78 be revoked and issued to an applicant whose application complied with all requirements.

The Premium Leaf, Inc., Lawsuit

On January 27, 2017, Premium Leaf, Inc., filed its complaint against DHS.  Premium Leaf, Inc., is an Arizona nonprofit corporation whose directors are Laurence David Turner, Douglas W. Turner and Adam S.  Turner.

Premium Leaf applied for a dispensary license in CHAA 70 for a site located at 98 N. Power Road, Mesa, Arizona.  Premium Leaf claims that its location is the only location in CHAA 70 that satisfied all zoning requirements and therefor DHS improperly awarded the license to an applicant that should have been disqualified.k  The plaintiff asks the court to issue a permanent injunction that revokes the license DHS  granted for CHAA 70 and award it to Premium Leaf.

CBS 5 TV’s Story on the GAM Enterprises, LLC vs. Arizona Department of Health Services

CBS 5 – KPHO

GAM Enterprises, LLC vs. Arizona Department of Health Services Complaint

gam-enterprises

 

Premium Leaf, Inc. s. Arizona Department of Health Services Complaint

 

premium-leaf
By |2019-06-18T19:55:59-07:00February 11th, 2017|AZ Marijuana Law Lawsuits, Dept Health Services, Stories & Articles|Comments Off on Dispensary License Losers Sue Arizona Department of Health Services

Buyer to Pay $25 Million for Two Not-for-Profit Arizona Medical Marijuana Dispensaries

Canadian Bioceutical Corporation (BCC), a soon-to-be publicly traded firm, and its Nevada subsidiary, CGX Life Sciences, Inc. announced that they have indirectly acquired two Arizona medical marijuana dispensaries for $25,000,000.  In a January 23, 2017 press release CBC said:

“the purchase price of US$25 million . . . will be satisfied by a cash payment of US$15 million . . . subject to adjustments, and a promissory note in the principal amount of US$10 million . . . payable to the Sellers. The Promissory Note shall have a three (3) year term and bear interest at the rate of eight percent (8%) per anum”

The two medical marijuana dispensaries apparently are owned by Health for Life, Inc., an Arizona nonprofit corporation.  In a January 23, 2017, press release Canadian Bioceutical Corporation stated, “Under the Health for Life (“H4L”) brand, two licensed dispensaries operate in the Mesa area.”

CBC issued a public report called a “Management Report.” This report includes the following statements:

  • “BCC provides management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to two medicinal cannabis enterprises in Arizona.
  • While the Company does not directly own, possess or sell cannabis or cannabis-infused products, it does provide substantial support and exerts considerable influence over these two businesses, which are legally authorized to sell medical cannabis and derivative products.
  • Under the management agreement, BCC has material influence over the Arizona operations, and will be required to consolidate their results under IFRS.
  • The management agreement has a 20 year initial term with prohibitive break-out clauses.”

Note the statement that the Company does not own, possess or sell cannabis, but it “exerts considerable influence over these two” dispensaries.  Sounds like CBC is paying $25,000,000 for the privilege of exerting considerable influence over the dispensaries as opposed to purchasing either of the dispensaries or the company that owns the dispensaries.

CBC’s Management Report also states,

  • “Current total production capacity ~1.6 million grams per year
  • Annual Revenue as of 3/31/16 = $8,500,000
  • EBITDA as of 3/31/16 = $1,600,000
  • Annual Revenue as of 3/31/17 = $19,200,000
  • EBITDA as of 3/31/17 = $6,600,000″

EBITDA means “earnings before interest, tax, depreciation and amortization.”  If the 3/31/17 EBITDA will be $6,600,000 then how would the dispensaries satisfy the “not-for-profit” requirement of Arizona’s medical marijuana law?

The Canadian Bioceutical Corporation issued a press release on January 24, 2017, that states:

“it has appointed Elizabeth (Beth) Stavola as President of the Company’s wholly owned subsidiary, CGX. In her new role, Ms. Stavola will be responsible for the operation of the Arizona business, as well as the Company’s other U.S. operations. . . . Ms. Stavola is also the founder of . . . Health for Life Inc.”  Emphasis added.

I don’t know what CBC’s press release means by calling Ms. Stavola a founder of Health for Life, Inc., but she was never an officer or director of the corporation according to the records on file with the Arizona Corporation Commission.  Nor did she sign the Articles of Incorporation that formed the nonprofit corporation.

Note CBC’s organizational chart shown below says that CBC’s two Arizona medical marijuana dispensaries are Health for Life, Inc., and Soothing Options, Inc., both of which are Arizona non-profit corporations.

Here is a summary of the people involved with the Arizona companies named above as set forth on the Arizona Corporation’s website.

  • Health for Life, Inc.: Julie Winter (Chairman, President & Director), Michelle Magers (Vice-President & Director), Salvator Martelli (Director) and Liz Nilan (Director).
  • Soothing Options, Inc.: Cindy McDonald (Chairman, President & Director), Thomas Nilan, Sr. (Vice-President & Director), Tiscia Bonanno (Director) and James A. Clifford (Director)
  • S8 Industries, LLC:  Its members are Beth Stavola and CGX Life Sciences, Inc.  Its sole manager is Beth Stavola.
  • S8 Management, LLC: Its sole member is CGX Life Sciences, Inc.
  • S8 Rental Services, LLC: Its sole member is CGX Life Sciences, Inc.
  • S8 Transportation, LLC: Its sole member is CGX Life Sciences, Inc.

This transaction raises the following questions:

1. Why would anybody pay $25,000,000 or any substantial amount of money to be able to “exert considerable influence” over two Arizona medical marijuana dispensaries that by law must operate on a not for profit basis?

2. Who gets the $25,000,000?  Is it Health for Life, Inc.?  If so, then what does H4L, a not for profit corporation, do with all that money?  If it wasn’t H4L then who gets the money and what is it for because an Arizona nonprofit corporation does not have owners (shareholders)?

3. Will the recipients of the $25,000,000 pay ordinary income tax or capital gains tax on their income?  A requirement for a capital gain is that the taxpayer must sell a capital asset.  What asset would a person have sold that would qualify as a capital asset and capital gain tax?

4. In its January 23, 2017, press release CBC said the $25,000,000 is payable to the “Sellers,” but it does not identify the sellers.  Why?  Who are the sellers?  Why would a public company fail to disclose who it is paying $25,000,000 for the privilege of “exerting influence” over the two dispensaries?

Apparently the not-for-profit Arizona medical marijuana dispensary business cannot generate profits a lot of  money for somebody.

 

By |2019-06-18T19:55:57-07:00February 3rd, 2017|Stories & Articles|Comments Off on Buyer to Pay $25 Million for Two Not-for-Profit Arizona Medical Marijuana Dispensaries

Yavapai County Leads Arizona in Per Capita Medical Marijuana County Cardholders

The Daily Courier:  “Arizona’s more than 114,000 medical marijuana patients smoked, ate or otherwise consumed more than 29 tons of the drug last year. . . . That’s a 52 percent increase in the amount of pot legally sold in 2015. And the 2015 numbers themselves were double the prior year.  Yavapai County has the highest number of per capita medical marijuana cardholders in Arizona.”

By |2017-01-31T19:23:42-07:00January 31st, 2017|Stories & Articles|Comments Off on Yavapai County Leads Arizona in Per Capita Medical Marijuana County Cardholders

Arizona Medical Marijuana Sales Hit Record High

Phoenix New Times:  “More Arizonans than ever hold medical-marijuana cards, boosting state-legal cannabis sales — and the tax revenue from them — to a new record.  Arizona patients bought 29 tons of cannabis products in 2016, according to records published today by the state Department of Health Services. . . . That’s a 53 percent increase over last year’s 19 tons of cannabis products sold.”

See the “Arizona Medical Marijuana Program December 2016 Monthly Report.”

By |2017-01-25T07:47:48-07:00January 25th, 2017|Stories & Articles|Comments Off on Arizona Medical Marijuana Sales Hit Record High

Arizona Legislature Bill Would Prohibit Dispensaries from Moving

Capital Media Services:  “State lawmakers are moving to keep medical marijuana dispensaries in rural areas of the state from moving to cities.  On a 5-4 vote Monday, the House Committee on Military, Veterans and Regulatory Affairs approved legislation saying those who were the first to open marijuana stores following the 2010 voter approval of medical marijuana sales cannot move outside the areas where they first opened.”

By |2017-01-24T20:53:13-07:00January 24th, 2017|AZ Legislation, Stories & Articles|Comments Off on Arizona Legislature Bill Would Prohibit Dispensaries from Moving

Cash the Crops

Tucson Weekly:  “Recreational marijuana has proved to be a boon for states that have legalized it, and this year four states will add that bounty to their budget.  A new analysis from the Orange County Register estimated marijuana could account for $23.3 billion in yearly revenue.”

By |2017-01-17T18:53:03-07:00January 17th, 2017|California News, Stories & Articles|Comments Off on Cash the Crops

Traffic Deaths Down in States that Legalized Marijuana

Business Insider:  “Legalization of medical marijuana is not linked with increased traffic fatalities, a new study finds.  In some states, in fact, the number of people killed in traffic accidents dropped after medical marijuana laws were enacted.   ‘Instead of seeing an increase in fatalities, we saw a reduction'”

By |2016-12-30T07:23:31-07:00December 30th, 2016|Stories & Articles|Comments Off on Traffic Deaths Down in States that Legalized Marijuana

Mysterious Illness Tied to Marijuana Use

CBS News:  “For more than two years, Lance Crowder was having severe abdominal pain and vomiting, and no local doctor could figure out why. . . . The answer was cannabinoid hyperemesis syndrome, or CHS. It’s caused by heavy, long-term use of various forms of marijuana.”

By |2016-12-29T07:37:19-07:00December 29th, 2016|Stories & Articles|Comments Off on Mysterious Illness Tied to Marijuana Use

County Attorney Bill Montgomery Continues His Failing Crusade Against Arizona’s Medical Marijuana Law

Phoenix New Times:  “On Wednesday, the same day the Arizona Court of Appeals released its ruling against Montgomery, the county, and the state of Arizona, Montgomery held a press conference in which he distorted the findings of a new survey about youth marijuana use and claimed they showed a need to “reform” the voter-approved, 2010 Arizona Medical Marijuana Act (AMMA).  Montgomery appears emboldened by last month’s defeat of Proposition 205, the only one of five marijuana-legalization ballot measures in the nation voters rejected this election season. Yet while he believes taxpayers should continue to fund his attack on the medical program, state Attorney General Mark Brnovich apparently doesn’t feel the same enthusiasm.

By |2016-12-30T07:28:30-07:00December 22nd, 2016|AZ Marijuana Law Lawsuits, Stories & Articles|Comments Off on County Attorney Bill Montgomery Continues His Failing Crusade Against Arizona’s Medical Marijuana Law

Federal Law does not Trump Arizona’s Medical Marijuana Zoning

Your West Valley:  “Local officials cannot use federal laws outlawing marijuana to refuse to provide necessary zoning for dispensaries, the state Court of Appeals ruled Tuesday.  In their unanimous decision, the judges acknowledged the federal Controlled Substances Act makes the possession and sale of marijuana a felony. And they noted that the zoning sought by White Mountain Health Center was specifically to be able sell the drug from a shop in an unincorporated area of Sun City.”

 

By |2017-10-07T09:56:03-07:00December 20th, 2016|AZ Marijuana Law Lawsuits, Stories & Articles|Comments Off on Federal Law does not Trump Arizona’s Medical Marijuana Zoning

Medical Marijuana Patients Sue to Reduce Annual Pot Fee

Today’s News Herald:  “Claiming the state is hoarding funds, two medical marijuana users want a judge to reduce the annual charge for the legally required registration cards. In legal papers filed here, the attorney for Yolanda Daniels and Lisa Becker points out the Department of Health Services collected $2.6 million more in fees last year from patients, caregivers and dispensaries than it actually took to run the program. And Sean Berberian noted the balance in the account as of the end of 2015 was nearly $11.5 million.”

By |2016-12-03T15:04:02-07:00December 3rd, 2016|AZ Marijuana Law Lawsuits, Stories & Articles|Comments Off on Medical Marijuana Patients Sue to Reduce Annual Pot Fee

Ultra Health Fined by New Mexico Health Department

Albuquerque Journal:  “When a three-week-old medical marijuana seedling named Dorothy made her public debut at the New Mexico State Fair in September, state officials scrambled to pull the plug on her appearance.  Now the New Mexico medical cannabis company that sponsored Dorothy’s field trip is facing state sanctions that could cost the company more than $100,000, said Duke Rodriguez, owner and CEO of Ultra Health LLC, one of the state’s 35 licensed medical cannabis producers.”

By |2016-11-06T08:16:54-07:00November 5th, 2016|Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Ultra Health Fined by New Mexico Health Department

Pros & Cons of Proposition 205

East Valley Tribune:  In this story Will Humble, the former Director of the Arizona Department of Health Services explains Proposition 205, the Regulation and Taxation of Marijuana Act.  “If Prop. 205 passes, dispensaries get first crack at becoming retail marijuana stores. . . . Humble said medical marijuana patients can continue that routine if Prop. 205 passes and avoid paying the 15 percent surcharge on retail marijuana. . . . If approved by voters, the new law allows anyone 21 or older to buy up to one ounce of marijuana or up to five grams of concentrated marijuana, beginning March 2, 2018. . . . Anyone 21 or older would be able to grow up to six of their own plants, although landlords are allowed to prohibit growing plants on their property.”

By |2016-10-27T06:53:48-07:00October 27th, 2016|Stories & Articles, Will Humble Speaks|Comments Off on Pros & Cons of Proposition 205

The Marijuana Industry’s Big Win: The DEA’s Refusal to Reschedule

National Law Review:  “Earlier this year, when the U.S. Drug Enforcement Agency (DEA) indicated it would have an announcement regarding a now five-year-old petition to reschedule cannabis, numerous industries on the “outside looking in” were eagerly watching from the sidelines. Leaders in banking, insurance, pharmaceuticals – and just about the entire investing world – were all hoping that marijuana would lose the stigma of a Schedule I drug, a label that meant it had no accepted medical use in the eyes of the federal government. . . . These investors and insurers held dreams of unbridled access to enormous growth potential and revenue streams. When news came in early August 2016 that the DEA would not reschedule, those dreams were dashed. But was the decision bad news? The answer is, ‘Not really‘.”

By |2016-10-11T20:39:53-07:00October 11th, 2016|Federal Dispensary Attacks, Stories & Articles|Comments Off on The Marijuana Industry’s Big Win: The DEA’s Refusal to Reschedule

Arizona Awards 31 New Medical-Marijuana Licenses

Phoenix New Times:  “The Arizona Department of Health Services awarded preliminary licenses for 31 new medical-marijuana dispensaries last week, creating a lucrative opportunity for entrepreneurs and (soon) more shopping choices for patients.  Most of the 747 applicants lost out on their hoped-for pot of green gold — not to mention the nonrefundable $4,000 of their $5,000 application fee. But the lucky few whose applications were accepted could make a fortune in the industry.”

By |2016-10-12T19:37:04-07:00October 10th, 2016|Dept Health Services, Stories & Articles|Comments Off on Arizona Awards 31 New Medical-Marijuana Licenses

A Closer Look at Arizona’s Proposition 205

The Marijuana Times:  “There is no doubt that 2016 will be the biggest year in the short history of the marijuana law reform movement. Five states will have recreational cannabis legalization on the statewide ballot for their citizens to vote on in November. We here at The Marijuana Times are going to take a closer look at all 5, and we’re going to start with Proposition 205 in Arizona.  Prop 205 is similar to the legalization initiatives that will be appearing in other states. Here are some of the highlights of what Prop 205 would do if passed by the voters:”

By |2017-02-04T07:33:04-07:00October 10th, 2016|AZ Legislation, Stories & Articles|Comments Off on A Closer Look at Arizona’s Proposition 205
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