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Landlord Who Leased Land to Marijuana Dispensary Sentenced to One Year in Prison

This story out of Montana should be a wake up call for anybody who leases or is considering leasing land that would be used to grow, store or sell marijuana, medical or non-medical.  I knew that the federal government has sued landlords who leased to medical marijuana dispensaries for the purpose of causing [...]

Feds Targeting Property, Assets in Fight Against Marijuana Dispensaries

Noozhawk:  ”In their stepped-up battle against local marijuana dispensaries and growing operations that supply them, federal authorities are employing a powerful weapon: asset-forfeiture laws.  The U.S. Attorney’s Office this week filed legal complaints for forfeiture against the property owners of two South Coast medical marijuana storefront dispensaries and one indoor farm. They allege that the [...]

Feds, Santa Barbara Police Serve More Warrants Related to Marijuana Operations

Noozhawk:  ”Multi-agency operation targets illegal storefront dispensaries and grow sites, with three asset-forfeiture lawsuits filed in U.S. District Court.  Federal authorities and Santa Barbara police served search warrants at a medical marijuana dispensary and a grow house this week, and sent warning letters to all pot storefronts in the county that are still [...]

Latest Federal Enforcement Actions Against Marijuana Operations Target Illegal Storefronts and Grows in Santa Barbara County

The following is the text of a May 3, 2012, press release by the U.S. Attorney for the Central District of California:

In the latest series of actions against the commercial marijuana industry in California, federal authorities this week filed three asset forfeiture lawsuits against properties housing marijuana operations in Santa Barbara County, [...]

Prospective Dispensary’s Single Most Important Task Before April 30, 2012

Nonprofit entities that want to obtain a dispensary registration certificate (aka license) to sell medical marijuana in Arizona have a lot of tasks to accomplish before they can open for business.  At this time, however, the single most important task for all would-be dispensaries is to locate a properly zoned place within the [...]

Arizona Medical-marijuana Dispensaries Face Property Hurdles

Arizona Republic:  “”Medical-marijuana-dispensary applicants are having trouble securing lease agreements for suitable dispensary sites, Phoenix-area commercial-real-estate brokers and observers say.  The challenge is twofold, they say: State-imposed restrictions limit the locations and types of real estate in which a dispensary can operate, and many commercial-property owners don’t want marijuana-dispensary tenants.”

3 Steps for an Arizona Medical Marijuana Dispenary to Operate Legally

Mike Wakefield of Wakefield Architects, gave us permission to republish his detailed analysis of the steps a prospective Arizona medical marijuana dispensary must follow to get permission from a city to open a dispensary.  If your dispensary needs an architect and it probably does, contact Mike at 602-595-7276.  His office is located at [...]

Would Be Dispensaries Struggle to Lease a Dispensary Site

My DHS Wish

I continue to talk to many people who are having a very hard time finding a location to operate their Arizona medical marijuana dispensary.   The Arizona Department of Health Services has inadvertently created a nightmarish situation for would-be dispensary owners who do not own the real property on [...]

Considerations on Signing a Personal Guaranty of an Arizona Medical Marijuana Dispensary Lease

Question:  My landlord wants the owners of my Arizona medical marijuana dispensary nonprofit entity to sign a Personal Guaranty.  What is it and should the owners sign the guaranty?

Answer:  A Personal Guaranty is a promise by the guarantor to pay the debt of a third party or to satisfy an obligation of [...]

Why Your Dispensary Needs to Rent More Space than Needed for its Retail Store

Question:  I know that in 2007 the U.S. Tax Court ruled in the CHAMPS case that Section 280E of the Internal Revenue Code prohibits deducting from gross income any business expenses that are paid or incurred in connection with trafficking in marijuana.  Is there a way that my nonprofit entity that operates an Arizona medical [...]

Advice to Landlords With Premises Zoned for Medical Marijuana Dispensaries

Question:  I own real property that is zoned for an Arizona medical marijuana dispensary or cultivation site.  How can I increase the chances of obtaining a tenant that will actually obtain a dispensary registration certificate and become a long term paying tenant?

Answer:  Easy.  Lease your property to more than one prospective dispensary [...]

AZDHS Proposes Using CHAA Map To Designate Marijuana Dispensaries

Medical Marijuana Growers Association:  “Director Will Humble stated that he looks to use the CHAA map as a guideline for dispensary placement, but in doing so he is limiting caregivers and patients from cultivating medical marijuana for themselves, which, in turn, will limit the amount of medication that can be donated to a dispensary.”

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View the CHAA Map to Locate Addresses Within CHAAs & Information about CHAAs

Arizona Department of Health Services rules divide Arizona into 126 areas called Community Health Analysis Areas (CHAA).  The rules limit the number of Arizona medical marijuana dispensaries in a CHAA to ONE!  The goal of ADHS Director Will Humble is to disperse the 125 dispensaries throughout Arizona to minimize the number of patients [...]

Arizona Law may Allow Marijuana in Some Parks

Arizona Republic:  “A loophole in the state’s new medical-marijuana law could open thousands of neighborhood parks, playgrounds, greenbelts and artificial lakes to resident joint smokers, legal experts [the reporter quotes non-lawyer Alan Sobol] say.  The law approved by Arizona voters in November prohibits marijuana smoking “in any public place,” but properties controlled by [...]

CHAA on This!

I am part of a group that plans to apply for one of the medical marijuana dispensary licenses to be awarded by the Arizona Department of Health Services. I believe the method the AZDHS has chosen to distribute the licenses throughout the State is flawed. Here are some of the reasons.

Proposal Suggests 126 Areas for Arizona Pot Dispensaries

Arizona Republic:  “The new proposal suggests distributing one dispensary to each Community Health Analysis Area, which divides the state based on geography and population. There are 126 of these areas in the state, close to the number of dispensaries allowed.”

How Does My Dispensary Tie Up Land for its Retail & Cultivation Sites?

Question: Must I know my Arizona medical marijuana dispensary and cultivation locations before I file my application with Arizona Department of Health Services to obtain a dispensary license?

Answer:  Yes.  Arizona Revised Statutes Section 36-2804 states:

“Not later than ninety days after receiving an application for a nonprofit medical marijuana dispensary, [...]