OAKLAND WARNED THAT POT MEASURE BREAKS U.S. LAW

The U.S. attorney's office has warned Oakland officials that the
city's marijuana farm ordinance breaks federal law and would put
cannabis cultivators in criminal and civil jeopardy.

The ordinance was passed in July by the City Council but has since
been put aside after local law enforcement leaders warned that it
could result in criminal prosecution of city officials.

In a Feb. 1 letter to Oakland, Melinda Haag, the U.S. attorney for
the Northern District of California, wrote: "Individuals who elect to
operate 'industrial cannabis cultivation and manufacturing
facilities' will be doing so in violation of federal law."

Haag's letter marks the first time federal authorities have sent a
written warning on Oakland's ordinance and comes as the council is in
the midst of considering a new proposal to license pot farms. Haag,
however, did not weigh in on the latest proposal, and Department of
Justice officials refused to comment on it.

Thus, some council members said they intend to continue moving
forward with the plan by Councilwoman Desley Brooks that would
license five new dispensaries, which would each have farms of up to
50,000 square feet.

Haag's letter calls marijuana a controlled substance and says that
federal authorities do not pursue "seriously ill" people who use
medicinal marijuana approved by state law. Landlords, property
owners, financiers and others, however, could face prosecution and
the loss of property for growing marijuana under Oakland's law, Haag wrote.

Brooks said her proposal is an effort to allow Oakland to license pot
farms without violating state law.

"I'm not trying to facilitate the growth of wholesale marijuana,"
Brooks said. "I'm strictly interested in producing cannabis for sick
people, as they indicated they would be OK with in the letter."

While the previous plan had no size limit for four farms, Brooks'
proposal caps the size of each of five prospective farms. But even at
50,000 square feet, each farm would provide more than the medicinal
needs of all Oakland dispensaries combined in 2009.

Perhaps more significantly, Brooks' proposal also ties proposed farms
to a specific dispensary and its patients. The previous plan allowed
pot farmers to act as free agents, selling to whichever dispensary they chose.

The distinction is important because only medical marijuana patients
and their "primary caregivers" are allowed to grow pot under
California law, according to a December opinion to the City Council
by Alameda County District Attorney Nancy O'Malley.

A "primary caregiver" is someone who "has consistently assumed
responsibility for the housing, health or safety of that person,"
O'Malley wrote.

Brooks defines dispensaries as "primary caregivers" under her
proposal, though O'Malley has said that is not always the case.

While state voters authorized the use of medical marijuana in 1996,
little has been done to regulate its cultivation. The result is a
hodgepodge of basement plots, vacant storefront mini-farms and
backwoods plantations. Critics, including the City Council, say
keeping the industry in the black market invites ad hoc electrical
systems, burglaries and home invasions.

Oakland's plans include inspections of growing sites for fire and
safety codes, among a slew of other requirements.

"The whole point of the regulatory system is to keep this out of the
hands of criminal cartels and protect public safety," said
Councilwoman Rebecca Kaplan, author of the July ordinance that is the
subject of Haag's letter.

Haag's letter was written in response to a Jan. 14 letter from City
Attorney John Russo asking for guidance.

Other cities, counties and states have been licensing pot farms,
ranging from Long Beach to the state of Colorado. Kaplan said she had
not heard of the U.S. attorney contacting those jurisdictions, so she
is interested in learning what they're doing correctly.

Brooks said the issue is ultimately about the heath of the sick and
the safety of the rest of the community.

"They acknowledge there are sick people who need medicine, said
Brooks. "We're just trying to make sure they get their medicine. ...
They know it has to come from someplace. I'd rather us regulate that place."