LA Pot Dispensaries Threatened By U.S. Attorney's Office This Week

CRACKDOWN THIS WEEK
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Federal prosecutors are targeting more than 100 marijuana shops in Los Angeles County this week, threatening prosecution if dispensary owners stay in operation. Officials also moved to seize two properties in Long Beach catering to marijuana users.

Letters from the federal government were sent to dispensaries in Los Angeles, Long Beach, Lancaster, and Pearblossom, U.S. Attorney's Office spokesman Thom Mrozek said. The letters informed dispensary owners they are operating in violation of federal laws.

In Los Angeles, 71 dispensaries in South L.A., downtown, and the Harbor area were sent notices, Mrozek said.

The government's actions represent the latest effort to enforce federal laws and the newest challenge to California's 17-year-old, voter-approved law allowing the sale of marijuana as a medicinal treatment. Federal authorities contend the 1996 legislation approved by California voters was intended to allow small, nonprofit collectives for sick patients, and not result in an explosion of storefront pot stores.

"Anyone who has spent any time in a marijuana store can tell these are drug-trafficking businesses," Mrozek said. "All the stores we have seen are generating significant amount of profits."

The letters sent Tuesday come weeks after Los Angeles voters approved Measure D, which allows 135 dispensaries

-- those facilities that were already open and registered with the city before a 2007 moratorium -- to stay open. All other dispensaries must shut down.
While the Los Angeles City Attorney's Office is finalizing the list of 135 dispensaries, and expects to release the list in about 10 days, Mrozek said he expects some overlap between facilities ordered to shut down and those on the city's list allowed to stay open.

Deputy City Attorney William Carter said his office will be informing any dispensary on the city's list they must comply with federal laws.

Such is the confusing state of marijuana laws in California, where federal and state rules often conflict with one another as local governments take a piecemeal approach to regulating pot.

Kris Hermes, spokesperson for the Americans for Safe Access, a medical marijuana advocacy group, criticized the federal government's actions Tuesday, saying that he believes stores targeted by the U.S. Attorney's Office should be allowed to operate because they are in compliance with state laws.

"Thousands of people will be left without safe and legal access to medical marijuana," Hermes said.

In Long Beach, where dispensaries have been illegal since last year, the city's police chief praised the crackdown, saying that shops have been a problem for the city.

"We always welcome the opportunity to partner with federal authorities in an effort to address these illegal operations that affect the quality of life in our community," Long Beach Police Chief Jim McDonnell said in a statement.

The federal government has also filed two asset forfeiture lawsuits in Long Beach where officials said marijuana stores are currently operating.

The forfeiture lawsuits allege the owners of the properties allowed commercial marijuana stores or growing operations. The dispensaries named by the U.S. Attorney's Office are the Healing Tree Holistic Association on East Anaheim Street and the Naples Wellness Center on East 2nd Street.

Messages left for owners at the two stores were not immediately returned.

dakota.smith@dailynews.com

(c)2013 the Daily News (Los Angeles)

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Distributed by MCT Information Services

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Before You Go

16 Facts About Marijuana And The U.S. Economy
$13.7 Billion Saved On Prohibition Enforcement Costs(01 of16)
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The government would save an estimated $13.7 billion on prohibition enforcement costs and tax revenue by legalizing marijuana, according to a paper endorsed by 300 economists. (credit:AP)
Marijuana Inmates Cost Prisons $1 Billion A Year(02 of16)
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Inmates incarcerated on marijuana-related charges cost U.S. prisons $1 billion annually, according to a 2007 study, AlterNet reports. (credit:AP)
Marijuana Prohibition Costs Taxpayers $41.8 Billion A Year(03 of16)
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Including lost tax revenues, a 2007 study found that enforcing the marijuana prohibition costs tax payers $41.8 billion annually, Forbes reports. (credit:AP)
California Marijuana Crop Worth $14 Billion A Year(04 of16)
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Marijuana growers account for $14 billion a year in sales in California, making it the state's most valuable cash crop, TIME reports. (credit:AP)
Illegal Marijuana A $36 Billion A Year Industry(05 of16)
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It's estimated that illegal marijuana is a $36 billion industry in the U.S., MadameNoire reports. (credit:AP)
One-Third Of Americans Think Legalization Would Boost The Economy(06 of16)
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About one-third of Americans say they think legalizing marijuana would boost the economy, according to a 2010 poll by Associated Press-CNBC. (credit:AP)
Dispensary Ads Boost Newspapers' Revenue(07 of16)
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The Sacramento News and Review saw a big boost in ad revenue when it offered advertising space for more than 60 medical marijuana dispensaries, enabling the publication to hire three additional employees, according to News 10. (credit:AP)
Mendocino Zip Tie Program Raised $600,000(08 of16)
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Mendocino County, California's zip tie program aimed at regulating medical marijuana growing by charging permits for each plant raised $600,000 in revenue in for the Sheriff's department in 2011. (credit:AP)
Oakland Raised More Than $1 Million In Marijuana Tax Revenue(09 of16)
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The city of Oakland, California raised $1.3 million in tax revenue from medical marijuana dispensaries in 2011, 3 percent of the city's total business tax revenue, according to The New York Times. (credit:AP)
Colorado Pulls In $5 Million From Pot Sales Tax(10 of16)
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In 2011, Colorado pulled in $5 milllion in sales taxes from medical marijuana businesses, The New York Times reports. (credit:AP)
Legal Marijuana Could Be $100 Billion Industry(11 of16)
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Economist Stephen Easton estimated in 2010 that legal marijuana could be a $45 to $100 billion industry, Bloomberg Businessweek reports. (credit:AP)
Each weGrow Center Creates 75 Jobs(12 of16)
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When hydroponic marijuana growing supply chain weGrow opens a new store it creates an estimated 75 jobs indirectly, according to AZBusiness Magazine. (credit:AP)
Majority Of States Support Taxing Marijuana(13 of16)
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More than 60 percent of states agree with taxing marijuana, according to a poll by Associated Press-CNBC. (credit:AP)
Marijuana Affects Workplace Motivation(14 of16)
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A Norwegian study 25 years in the making came to the shocking conclusion that frequent marijuana use lowers employees' motivation at work.
More Than 1,000 Dispensaries In California(15 of16)
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There could be more than 1,000 medical marijuana dispensaries operating in California, Pasadena Weekly reported in 2009. (credit:AP)
Denver Counts More Dispensaries Than Starbucks(16 of16)
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As of July 2011, the city of Denver counted more medical marijuana dispensaries than Starbucks franchises. (credit:AP)