POT CLUB ORDERED OUT OF BUSINESS

Injunction follows Supreme Court ruling against S.F. operation

SAN FRANCISCO -- A judge on Thursday reinstated an injunction against the
Cannabis Cultivators Club that orders the medical marijuana outlet's
founder to get out of the business of selling pot.

Superior Court Judge David Garcia commanded Dennis Peron to stop
``furnishing, storing, administering or giving away marijuana at (the club)
or any other location,'' under the injunction sought by state Attorney
General Dan Lungren.

The injunction follows a state Supreme Court decision Wednesday that let
stand a ruling that the club is not a ``caregiver'' under Proposition 215,
the 1996 law co-authored by Peron that lets seriously ill people and their
caregivers possess marijuana.

``If Dan Lungren wants to come and bring in the tanks . . . be my guest,''
Peron said. ``Let him carry us out, we've got quite a few wheelchairs up
here that'll make it tough.''

J. David Nick, the club's lawyer, said the club will not be affected by the
injunction because it is in compliance with the law. It no longer ``sells''
marijuana, he said, but is ``reimbursed'' for cultivation costs.

Attorney General's Office spokesman Matt Ross said he expected the club to
comply with the order today. He would not say what action the state will
take if club members refuse to shut their operation.

The injunction specifically targets the San Francisco club, and a hearing
on a permanent injunction is set for April. But state officials contend
that all of the state's 20 or so clubs are operating illegally.

Under the injunction, the club would no longer be able to distribute
marijuana as a ``caregiver.'' Club members could conceivably continue to
congregate there to smoke their own marijuana.

Proposition 215 passed in November 1996.

The Attorney General's Office raided Peron's club about three months before
Proposition 215 passed, and then got an injunction to close it. But Judge
Garcia ordered the club reopened because it served as a ``caregiver'' under
the new law.

The 1st District Court of Appeal overturned Garcia's ruling, and the state
Supreme Court backed the appellate court this week.