May 14, 2012

Weekly Wrapup: Feds to Keep Funding Dispensary Raids + MMJ Lawyer Faces Repercussions

Medical cannabis news, marijuana dispensary updates and MMJ industry developments

Talk about a missed opportunity.

Federal lawmakers could have taken a big step toward progressiveness on the medical marijuana front last week. The opportunity came gift-wrapped in the form of a bill that would have nixed government funding for raids on dispensaries and other MMJ businesses. The measure would have sent a clear message to President Obama that the government should back off cannabis companies complying with local regulations and laws. It also would’ve further legitimized the entire industry.

Lawmakers, however, shot down the bill by a wide margin after nearly an hour of debate. The vote split along party lines, as is usually the case with medical marijuana measures. Democrats overwhelming supported the proposal to cut the funding pipeline for raids, while Republican lawmakers opposed it (90% voted against the measure).

It’s not a huge setback for the industry, as the measure wasn’t expected to pass anyway – despite a last-minute push by medical marijuana advocacy organizations to get support for the measure. But the development is discouraging nonetheless, as it seems Washington is digging in its heels amid growing acceptance of medical cannabis across the nation.

There was also a troubling development last week in Colorado, where a lawyer reportedly lost her malpractice insurance coverage because she has represented medical marijuana companies and individuals involved in the industry. The lawyer’s insurance company – Hanover Insurance Group – informed the attorney that it would not renew her liability coverage because working with medical marijuana clients violates its underwriting guidelines. If other insurance firms take this same stance, attorneys and other professionals could sever ties with MMJ businesses – which would exacerbate the industry’s already-monumental challenges.

Other top stories last week:

MMJ Business Daily Launches Marijuana Business Directory

Breaking into MMJ: How to Identify Medical Cannabis Opportunities

One Comment:

  1. I know I am just one single vote, but I have heard that every vote counts. My advice to all people that is in favor of insisting on their god given rights. to vote against any one, that does not believe in what you believe in.
    Also I will not have any thing to do with any company that does not want to go along with my desires , and my rights, such as (Hanover insurance group) there is always other people, who want our business. When these companies find out that their stupidity is costing them money, their stock holders will make them change their mind.

Post Your Comment:

Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As Marijuana Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

150K Pounds of Legal Marijuana Sold in CO Last Year

Dispensaries and retail cannabis stores in Colorado sold nearly 150,000 pounds of marijuana flower last [click to continue...]

Medical Cannabis Demand Outweighing Supply in DC

supply and demand

Recreational marijuana has dominated headlines out of Washington DC this week, as the use, possession [click to continue...]

Another Lawsuit Over MMJ Licensing Process in Illinois

A company that got turned down for one of the Illinois’ 21 medical marijuana cultivation [click to continue...]

MJ Financial Services Firm Secures $2M Investment

A financial services firm that plans to serve the cannabis industry has secured $2 million [click to continue...]

Alaska’s Largest City Enacts MJ Concentrates Rules


Alaska marijuana entrepreneurs who want to specialize in infused products or extracts will have to [click to continue...]

Washington DC Mayor Seeks to Ban ‘Cannabis Clubs’

With private marijuana use on track to become legal in Washington DC on Thursday barring [click to continue...]

Evicted MMJ Grower Wants Same Legal Protections as Farmers

Oregon is facing an interesting question tied to its medical marijuana law: Should evicted cannabis [click to continue...]

Report: Outlook for MJ Stocks Strong, But Many Could Stumble

cannabis stocks

Institutional investors will put money into cannabis stocks this year, though many publicly traded MJ [click to continue...]

Alaska Governor Seeks Marijuana Industry Oversight Board

Alaska Gov. Bill Walker has sent a bill to state lawmakers calling for the establishment [click to continue...]

Canadian Stock Regulators: Risk Disclosures Lacking

Canadian stock regulators have a word of warning for those investing in MMJ companies north [click to continue...]

Minnesota Medical Cannabis Workers Join Union


At least half of Minnesota’s medical marijuana dispensaries will be unionized. The United Food and [click to continue...]

Kosher Medical Cannabis Certification in New York?

Dispensary owners in New York may have a niche customer base to tap when they [click to continue...]

U.S. Investment Fund Inks Another Deal With Canadian Grower

A U.S. investment fund has cemented its second deal with a Canadian cannabis grower this [click to continue...]

Some San Jose Dispensaries Refusing to Pay Tax

cannabis taxes

Dispensary owners in San Jose, California, are in a dispute with the city over unpaid [click to continue...]