SEARCH

Entries in Medical Marijuana (3)

Thursday
Aug232012

Denver Bans Outdoor Marijuana Advertisements

iStockphoto/Thinkstock(DENVER) -- The Denver City Council is making it more difficult for medical marijuana dispensaries to advertise their product.

On Monday, the City Council voted to ban all outdoor advertisements for medical marijuana.  In addition to a ban on billboards or general advertisement devices, the City Council voted to ban medical marijuana or medical marijuana infused products anywhere in the city where the ad is visible to the public from the street, sidewalk, park or any other public place.  That includes handheld signs or fliers left on cars.

The Denver Council approved the ordinance 12-0.

Councilwoman Debbie Ortega told ABC News her decision came after she was “confounded by sign spinners advertising ‘free joints’ for an adjacent medical marijuana business.”

“This type of advertising is both disturbing and unsightly.  I became very concerned for the children in my neighborhood and throughout the Denver community,” she said.

The councilwoman said she was concerned that ads could lead people to believe anyone is eligible for a “free joint.”

“I decided that Denver has a responsibility to protect our kids from being exposed to medical marijuana advertising and from being targeted as long term customers,” Ortega told ABC News.

According to Ortega, “the legislation does have exceptions which will allow the business to advertise in newspaper ads, such as Westword and other publications.”

“The ordinance went into effect immediately and enforcement is handled by Denver’s Department of Excise and Licensing,” Amy Raaz, the policy director for Ortega, told ABC News.

Copyright 2012 ABC News Radio

Saturday
May122012

$500,000 Medical Marijuana Loan Up In Smoke

David McNew/Getty Images(NEW YORK) -- Sometimes even the best-laid plans go up in smoke. And sometimes these plans end up costing a lot of money.

That's what happened to Mark Haile and Michele Hammer, two Arizona businesspeople who in August, 2010, each loaned $250,000 to Today's Health Care II (THC), a Colorado-based medical marijuana dispensary. The agreements specifically stated that THC was using the loan proceeds for "a retail medical marijuana sales and grow center," but neither Haile nor Hammer thought that would ever be a problem.

Marijuana is legal in Arizona and Colorado (along with 14 other states and the District of Columbia); patients simply need a physician's prescription and they are legally allowed to obtain pot for medicinal purposes.

In fact, as far as Haile and Hammer were concerned, it was a smart business move. In California, for example, medical cannabis is an estimated $1.3 billion industry (Colorado is the nation's second-largest market). Why not get in on a potentially lucrative enterprise?

Talk about a pot of gold.

But in March 12, 2011, THC defaulted on its loan. According to the original terms, THC had five days to re-pay its debt. If it didn't, Haile and Hammer were entitled to repayment of the principal loan amount at a default interest rate of 21 percent, plus attorney fees.

By March 17, THC still hadn't paid anything, so Hammer and Haile sued, clearly expecting to win.

But they didn't. Instead, in his April 17 ruling, Judge Michael McVey, of Maricopa County Superior Court, dismissed the suit, stating that he couldn't enforce the loan agreement because the money was for an illegal purpose under the U.S. Controlled Substances Act, a federal law. While he recognized his ruling was "harsh," federal law trumps state law, and THC doesn't have to repay any part of either loan (although it will have to report the $500,000 as taxable income).

Lawyers for Haile and Hammer could not be reached for comment. But in a Phoenix New Times, story Randy Nussbaum, managing partner of the law firm that represented them, expressed surprise. Haile and Hammer "were provided with what they thought was a legitimate business opportunity, and they entered into this agreement in good faith," he said.

William Kozub, THC's lawyer, was not surprised with the verdict. "It's a classic supremacy issue--federal versus state," he said. "Take the marijuana out of it. Just make it a regular commercial dispute for something that's illegal under federal law. It's that simple. Drug lords from Colombia cannot come to court and say 'They sold me bad cocaine.' The Taliban can't sue in US federal court because they had a kidnapping gone awry. Certain things are just illegal."

Though the case can't set legal precedent, it does raise interesting questions for people involved in the medical marijuana industry, or those interested in getting involved: banks, individual investors, landlords, suppliers, medical directors, independent contractors and yes, even patients.

Over the last year, the Drug Enforcement Agency has raided dozens of dispensaries across the country, most notably in California.

It is unclear whether Haile or Hammer will appeal. But Morgan Fox, a spokesperson for the Marijuana Policy Project, a national non-profit marijuana reform organization, thinks the entire issue needs to be resolved. "In 2009, the Department of Justice announced that they were not going to use resources going after people who were in compliance with state medical marijuana laws, effectively saying they were choosing not to enforce federal law under certain conditions," he said. "Since that time, those conditions have evolved. The definition of who the DOJ is choosing to ignore and what they consider to be in compliance with state law is certainly getting narrower, but it is also becoming more and more vague."

Richard Keyt, a business attorney in Phoenix who runs a medical marijuana law web site, agreed. "Clearly, lenders need to take notice of this case because they might not be able to enforce their loan, which is what's happening in this particular case," he said. "But it has a broader meaning--it may mean that no contract involving medical marijuana dispensaries, or anything relating to medical marijuana, would be enforced. They're going to be the bad boy for the dispensary industry. Who wants to do business with somebody if you can't enforce your contract?"

Copyright 2012 ABC News Radio

Tuesday
Jun142011

Scotts Miracle-Gro to Tap into Marijuana Market?

David McNew/Getty Images(NEW YORK) -- Scotts Miracle-Gro, a leader in lawn care and garden products, is reportedly looking to cash in on the medical marijuana growing industry.

"I want to target the pot market," the company's CEO, Jim Hagedorn, said in an interview, according to The Wall Street Journal.  "There's no good reason we haven't."

Hagedorn hopes that by delving into medical marijuana,  Scotts Miracle-Gro will receive a boost in sales.

So far, the use of pot for medical purposes has been legalized in 16 states.  See Change Strategy LLC, an information data services company, estimates that sales of medical marijuana will near $2 billion this year.

Copyright 2011 ABC News Radio







ABC News Radio