CRACKDOWN ON CALIFORNIA DISPENSARIES PLANNED; COLORADO SHOPS WATCH
DEVELOPMENT CLOSELY

Federal officials today are expected to announce a crackdown on
medical-marijuana dispensaries in California, the latest escalation in
the ongoing conflict between the U.S. government and the nation's
burgeoning medical-marijuana industry.

This week, federal prosecutors sent letters to several dispensaries in
California, warning the stores that they must shut down in 45 days or
face criminal charges and confiscation of their property even if they
are operating legally under the state's 15-year-old medical-marijuana
law.

California's four U.S. attorneys are scheduled to announce the
coordinated crackdown today at a midday news conference. Their offices
refused to confirm the closure orders Thursday.

A law enforcement official who wasn't authorized to publicly discuss
the matter told Bloomberg News the effort is limited to California and
isn't national in scope.

It was unclear, then, what, if any, impact the crackdown would have on
Colorado, which a Denver Post analysis last year estimated has more
dispensaries per capita than any other state in the nation. Jeff
Dorschner, a spokesman for the U.S. attorney's office in Colorado,
declined to comment on the reports from California.

Several prominent Colorado medical-marijuana advocates said they have
not received any indication the Justice Department plans to launch a
crackdown on dispensaries here. Brian Vicente, the executive director
of the marijuana-advocacy organization Sensible Colorado, said
Colorado's strict dispensary regulations - often hailed as the
nation's most comprehensive - provide cover from federal law
enforcement.

"We have a transparent and highly regulated statewide system," Vicente
said. "I think the federal government is more comfortable knowing the
state's in charge."

In California this week, at least 16 pot shops or their landlords
received letters stating they are violating federal drug laws, even
though medical marijuana is legal under California state law. The
Associated Press obtained copies of the letters that a prosecutor sent
to at least 12 San Diego dispensaries.

They state that federal law "takes precedence over state law and
applies regardless of the particular uses for which a dispensary is
selling and distributing marijuana."

"Under United States law, a dispensary's operations involving sales
and distribution of marijuana are illegal and subject to criminal
prosecution and civil enforcement actions," letters signed by U.S.
Attorney Laura Duffy in San Diego read.

"Real and personal property involved in such operations are subject to
seizure by and forfeiture to the United States ... regardless of the
purported purpose of the dispensary."

The move comes a little more than two months after the Obama
administration toughened its stand on medical marijuana following a
two-year period during which federal officials had indicated they
would not move aggressively against dispensaries in compliance with
laws in the 16 states where pot is legal for people with doctors'
recommendations.

The Department of Justice issued a policy memo to federal prosecutors
in late June stating that marijuana dispensaries and licensed growers
in states with medical-marijuana laws could face prosecution for
violating federal drug and money-laundering laws. The Internal Revenue
Service? has also been scrutinizing dispensaries.

The effort to shutter California dispensaries appears to be the most
far-reaching effort so far to put that guidance into action.

"This really shouldn't come as a surprise to anyone. The
administration is simply making good on multiple threats issued since
President Obama took office," Kevin Sabet, a former adviser to the
president's drug czar who is a fellow at the University of
Pennsylvania's Center for Substance Abuse Solutions. "The challenge is
to balance the scarcity of law enforcement resources and the sanctity
of this country's medication approval process. It seems like the
administration is simply making good on multiple statements made
previously to appropriately strike that balance."

Going after property owners is not a new tactic, though, said Kris
Hermes, a spokesman for the medical-marijuana advocacy group Americans
for Safe Access. Five years ago, the Department of Justice under
President George W. Bush made similar threats to about 300 Los
Angeles-area landlords who were renting space to medical-marijuana
outlets, some of whom were eventually evicted or closed their doors
voluntarily, he said.

"It did have an impact. However, the federal government never acted on
its threats, never prosecuted anybody, never even went to court to
begin prosecutions," Hermes said. "By and large, they were empty
threats, but they relied on them and the cost of postage to shut down
as many facilities as they could without having to engage in criminal
enforcement activity."