News Nuggets (Bay Area)

Oaksterdam’s future uncertain following raid

Oaksterdam University, a pillar both of the Bay Area’s medical cannabis community and downtown Oakland’s economic revival, is in upheaval following a raid in early April by federal agents and the departure soon after of the cannabis-oriented school’s founder, Richard Lee.

Some 45 Oaksterdam employees have been laid off and the facility is having trouble making its $30,000-a-month rent, school officials told reporters. With revenue from Oaksterdam’s affiliated dispensary closed off by the federal raid, the school now has to rely solely on tuition fees—and tuition has reportedly been off since October.

Oaksterdam’s offices and several of its affiliated businesses were raided April 2 by DEA and IRS agents. The government has yet to disclose the reason for the action. Shortly after, Lee, who founded the school five years ago, announced he was stepping down, leaving the facility in the hands of its executive chancellor, Dale Sky Jones.

Bill would reduce drug-possession penalties

Simple possession of illegal drugs—even “hard” drugs like heroin and cocaine—would be treated as a misdemeanor violation instead of a felony under a bill recently introduced by state Sen. Mark Leno (D-San Francisco).

Senate Bill 1506 would not apply to anyone caught selling, manufacturing or possessing drugs for sale, Leno’s office stated in a press release. But it would significantly reduce prison overcrowding, save counties some $159 million and the state $64.4 million annually, the release stated.

Leno said he wrote the bill in the absence of evidence that long prison sentences deter people from abusing drugs. The measure cleared the Senate Public Safety Committee and is expected to be heard in other policy committees within the next three months.

Dispensary regulatory measure clears hurdle

In a development medical cannabis advocacy groups are hailing as their first legislative win of the year, a bill that would set up state oversight of California’s cannabis businesses has cleared a key Assembly committee.

By a 4-2 vote, the Assembly Public Safety Committee approved Assembly Bill 2312, a measure that would establish a regulatory system for canna-businesses under the state Department of Consumer Affairs. Introduced by Assemblyman Tom Ammiano, the bill, if passed, would charge fees to cannabis dispensaries and other marijuana-related companies and use the revenue to create a proposed Bureau of Medical Marijuana Enforcement. The bureau would grant licenses to businesses that grow, sell and/or transport medical cannabis.

AB 2312 now goes to the Assembly Appropriations Committee for a vote.