Business

The IRS is thought to have begun audits on at least 12 medical marijuana dispensaries in California under the determination that past business deductions are invalid because of a clause in the federal tax code prohibiting any business that traffics in Schedule I or II drugs from making business deductions on their tax returns. Lynette Shaw, founder and owner of the Marin Alliance for Medical Marijuana, is hoping to strike back before the IRS can deliver any more "final determinations" to other dispensaries currently being audited. Shaw intends to file an appeal in U.S. Tax Court within the month. There is actually a precedent for just such a case, when in 2007, a San Francisco dispensary primarily catering to terminal AIDS patients got its payment cut down to just over 1 percent of what the IRS originally said it owed in back taxes.

If you’re looking for a strong, green, energy-efficient building material that’s resistant to pretty much everything, hemp might be your best choice. This is the concept being pitched by Greg Flavall and David Madera, owners of a business called Hemp Technologies. They’re some of the first to build with the material in the United States, where industrial hemp hasn’t seen the rise in popularity it enjoys in other countries, thanks to a federal ban on U.S. production.

Australia's Attorney General has proposed to extend the list of prohibited plants to include varieties of acacia and cacti, commonly found in gardens. "This law would make it criminal offence for our staff to supply these plants and our customers to buy them," said Doron Francis of CERES Permaculture & Bushfood Nursery. National and Environmental technical policy manager Dr. Anthony Kachenko said nurseries, horticulturalists and other businesses would be wiped out by the government's "blanket approach" to tackling the drug trade.

And the spillover continues: The bloody prohibition war that has claimed tens of thousands of lives has spread to the Lone Star state's agriculture, where drug traffickers are targeting farmers' livelihoods. Texas farmers and ranchers say confrontations with Mexican drug trafficking organizations are quietly adding up. Several growers and ranchers say their jobs started becoming more dangerous about two years ago.

Among the questions left unanswered by Washington's medical marijuana law: Can legal use of medical marijuana get you fired? Thirteen years after voters approved its use, that question is likely to be answered by the Washington Supreme Court, which heard a test case on the issue last month.

Jim Carlson, the owner of a head shop, says a new federal ban on the sale of five chemicals used to make synthetic marijuana won't make much difference - he'll just stock brands that use other, still-legal substances. Carlson said that with about 210 similar chemicals available, the manufacturers will try to keep one step ahead of the government. "Unfortunately he is correct," said Barbara Carreno, a DEA spokeswoman in Washington, who confirmed Tuesday that many suppliers are offering retailers products with new chemicals. "There are many of these substances and we chose five common ones because we don't have the resources to study all of them."

There was little publicity for Seattle's first medical marijuana farmers market, but word of mouth alone packed the hall as hundreds of people lined up to go in. Under the current law, certain health care providers like doctors or nurse practitioners can issue recommendations for medical marijuana for a variety of ailments including cancer, HIV and anorexia. But unlike in California or Colorado where medical marijuana initiatives led to dispensaries that provide the drug, in Washington the medical marijuana community has remained, for the most part, underground.

A cavernous 10,000-square-foot medical marijuana emporium is set to open in California, and in coming months the company behind it plans to open similar stores in Arizona, Colorado, New Jersey, and Oregon. The new weGrow store - which wags have dubbed the "Wal-Mart of Weed" - isn't selling medical marijuana. It's offering up how-to experts and merchandise to help medical marijuana patients grow pot hydroponically.

Early next month, the state Health Department is poised to select from one to three proposals for dispensaries that will sell medical marijuana and related products to patients in the growing medical marijuana program. JoAnne Leppanen, executive director of the Rhode Island Patient Advocacy Coalition, and others seeking to open the centers have varying views on whether it’s financially feasible for the state to have three dispensaries. On Tuesday, there were 3,239 patients and 2,039 licensed caregivers, or medical marijuana growers, in the program. Many of the patients also have caregiver licenses, meaning that they grow their own medical cannabis to deal with chronic pain, nausea and other medical ailments. But just about everyone in the industry predicts that the establishment of one, two or three dispensaries will lead to an immediate surge in the number of patients, who must get approval from the Health Department to use medical marijuana for.

In California, medical marijuana dispensaries are required by state law to operate as non-profit "collectives" of legal medical marijuana patients who simply cover the costs of distributing the plant or edible products made from it. In the aftermath of dozens of raids on dispensaries that were illegally profiting from the sale of marijuana over the last year, the medicinal marijuana industry is calling for new laws that would allow dispensaries to operate as for-profit enterprises.