may god be with you always. thank you. >> we will not forget. we will never know your pain, and we only wish that we would have stopped this to reduce the number of victims. -- captions by vitac -- www.vitac.com >> marijuana, the burning weed, with its roots in hell. >> marijuana has not been always hated by the u.s. government. in fact, before 1937, it was not even considered an illegal drug. but after prohibition, the government needed a new evil to go after so they formed the bureau of narcotics and put marijuana at the top of their hit list. and they have been hating on pot ever since. but in 1996, california became the first state to legalize medical marijuana. and 18 suits followed suit.

now, with more states not only decriminalizing it, but legalizing marijuana, can the federal government really believe it is it is as dangerous as heroin? turns out one particular dispensary in oakland, california, could decide the fate of medical marijuana for the entire nation. >> time to sell some weed. get ready. >> in california where we are right now, medical marijuana has been legal since 1996. and once it was made legal, there was this proliferation of dispensaries, where people could go and get marijuana, you know,

marijuana products. once they started popping up, then the department of justice started clamping down on them for being legal. because while it is legal in california for them to sell medical marijuana, it is illegal federally for these places to exist. so it is quite a catch 22. i don't know, it will be really interesting to see where you should draw the line, is legalization the answer or is it just opening up another can of worms? the potential for problems? because many people believe will become a nation of good for nothings, sitting around eating twinkies and not having jobs. but in order to purchase or let alone smoke any of that sweet medical mj, first i need a note from my doctor. >> how are you? >> good. >> do you have an appointment? >> yes, i do.

>> good, is this your first time doing this? yes. >> please fill out the questions and answers. >> i understand that medical is a medicine, used for the treatment of serious medical conditions. i acknowledge that i have been advised not to drive or operate machinery that prevents safe judgment while under the influence of marijuana. are you currently or did you use any in the past, the following drugs, opiates, mushrooms, lsd? a lot of damning information in this article. >> thank you for filling this out. >> yeah, thank you. >> okay. so let's see. morgan spurlock, you're 42 years old, you would like to use

marijuana, you think it would help you with anxiety and insomnia. you talked to your doctor about it? >> he has. >> did he give you recommendations? >> he gave me xanax. >> oh, he did. so i do a brief physical exam here, don't fall asleep here. i see no reason why you shouldn't try the marijuana. i will make out a recommendation for you. so different strains will help you sleep and different strains will help you be more alert. and for some people, it can create a little bit of paranoia and anxiety in your life. >> i don't need more paranoia.

not only do i have a car, which makes me have the ability to buy the marijuana in the state of california. but because i have this form which i was even more shocked by, now i have the ability to grow marijuana in california, in san francisco i can grow up to 24 plants in my back yard if i so wanted to. now that i have got my card, my next stop is across the bay in oakland, the harborside health center. it was founded in 2006 as a model of what a medical marijuana dispensary could be. they serve between 6 and 800 patients every single day, making them the largest dispensary in the united states. but according to the feds, harborside is the largest illegal distribution center in the country. and today, i'm harborside's newest hire. harborside faces an uncertain future. federal efforts have already forced the closure of more than 600 other dispensaries in

california alone. the u.s. attorney melinda haig has pursued them with a vengeance, but they have decided to fight back. and within a month, the courts will decide if they can continue to do business in california. >> looks like a proper health clinic, but smells like my college bedroom. >> steve deangelo is the co-director of harborside. >> good to meet you. what are the different ailmentes people come in here for when they are looking for treatments? >> well you know we see everything from different serious illnesses, like cancer, hiv, aids, epilepsy, to things like anxiety, insomnia, we see patients with chronic pain, california lets doctors write a

recommendation for any disease that cannabis is effective for. turns out it is very effective for a wide range of illnesses. first thing that happens is outside, patients show their documents before they're admitted to the facility. >> so nobody can just walk in off the street? >> exactly. and we have three types of patients coming through the door, new patients, patients bringing medicine to distribute to the other patients. patients come in, we double check their recommendations, making sure you have not exceeded your maximum amount of visits or purchases. and then you're welcome to go into the floor and select your medicine or to take advantage of some of the other services that we have available here. we offer acupuncture, chiropractors, tai chi, so if anybody wants to come, they can

come completely free. in addition to that we also have a care package program for low income patients that provides our low income patients with a free gram of medicine every week. serving about 500 patients. now we'll leave the public part of our facility and go into the private secure area. >> the first stop is here, the in-take department. >> this is the most weed i have ever seen in my life. >> right, you know, when you have 6 or 800 patients coming through, you need to keep a little bit of medicine in stock for them. >> the growers, all members of the harborside collective, all are there to have their marijuana evaluated. then they test the makeup of the plant, giving the accuracy of the pot's makeup. >> and you guys invented that? >> we did. >> you're like the eli whitney.

>> harborside insists that all steps are taken to ensure the safety and quality of the medicine. but according to the feds, every one of those steps is illegal. >> step over here, i'll show you what the sort of typical process is to help a patient select their medicines. cannabis contains unique articles, the ratio of chemicals one to another varies in each one of the various different strains of cannabis, and there are over 600 strains that we know about. now, the interesting thing, unlike varieties of wine, which all make you feel basically the same, each variety of cannabis has a slightly different effect. harborside classifies four different types of marijuana.

>> what is the difference. >> cetiva cannabis tends to give a more cerebral effect. the sativa tends to bring a more medicine-like effect. we encourage patients not to consume raw cannabis flowers by means of smoking. so if i had a patient coming to me, complaining of chronic pain that woke them up at night or insomnia, and just wanted the ability to get a good night's sleep, i would recommend probably these capsules. these are made, like all of our medicine, by patients. >> that is not all their make, there are concentrates for skin

cancer lesions, even lotions and salves. >> it is very important that the patients have a wide range of varieties in the cannabis, but also a wide range of different forms of medicines. >> you may guess that harborside does a great business and it is true, they sell more than $75,000 worth of marijuana every day. no surprise then, that they have a top notch security system, and a reinforced vault. >> so all the money and weed every night is locked up. >> yes, i created harborside to set a standard in professionalism and excellence that the rest of the industry, hopefully, would emulate, that would show the rest of america that this is a substance not to be afraid of, but really something to embrace. >> but really, why a nonprofit? why not say we're making 24 million a year --

>> well, because california law requires us to have a nonprofit. and we are committed to being 100% compliant with the law. if they saw fit to make it a profit-making venture, we would embrace that equally enthusiastically. >> i bet you would, incredible. so what is the plan for tomorrow. >> so at 8:30 tomorrow, we're having an all-staff meeting to update our legal situation with the federal government. and then after that, we're going to put you to work. >> looking forward to it. >> see you then. >> i was blown away by how much of a well organized business it was, because the last thing you would expect is to have a bunch of stoners to be able to have a really organized business. and it is impressive. it is really impressive.

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today's my first day at work at the harborside clinic and even though more and more states believe marijuana should be legal, the federal government believes otherwise. and the problems from back in 2009 is that the treasury department interfered with the operations and finally the

attorney general filed forfeiture proceedings in 2012 meaning that harborside's property and assets are vulnerable to seizure. even though they are compliant with the california law, the federal government u views them as a criminal dispensary. the city of oakland has taken them to court to keep harborside up and running. this marks the first time any city has taken the u.s. government the court over its marijuana laws. >> so the next big test is going to be december 20th. it is going to be a really historic day of hearings and critical constitutional issues about the power of localities and the cities and the states and the relationships to each other will be discussed and implicated in the case. it is a case of huge national importance. first we will hear a motion from

the city to stop all of the proceedings. if the judge hears a motion on that day, it stops everything in its tracks and will never resurrect it again. but then we will hear motions from the landlords for the court to issue an order for us to cease selling the cannabis. if we win, we will get our day in court and we will win. we will be in front of a bay air jury, and all we have to do is to prove that more harm will result from closing harborside than results from allowing harborside open. and i can make that case to the jury with my hands tied behind my back and my eyes blindfolded and a gag in my mouth. if we lose those injunctions, we will be issued with a cease and desist order.

so what that means is we may be looking at a situation where we may need to adapt the business model. but one thing is for sure and certain, we will keep the commitment that we made to our patients six years ago and more than six years ago to provide them with the highest quality medicine and the highest quality patient care possible. we will never ever abandon the patients who depend on us. >> harborside facing out? >> please. attention harborside. it is 10:00, and harborside is open. all remaining staffs, please turn your channel to 3. >> how are you doing? >> good, brother. what do you need today? >> here is the cheese drain. that is really interesting. >> i also need a single dose cube of dark chocolate.

>> you are here with your son? >> yes, this is my son. >> what do you use it for? >> heel spurs and carpal tunnels. >> diabetes. migraines >> i have a herniated disc in my back and it helps the muscles relax. >> can i smell the haze? >> yes, you can. >> chocolate chip. chocolate chip. chocolate. what were you taking before? >> i was taking anti-depressants and synthetic hormones and sleeping medication and something to combat the side effect from the antidepressant. >> and medication to deal with other medication. >> yes, i took it for three days and it made my kidney start to bleed. >> so were you having internal bleeding? were you peeing out blood? i'm a young guy, and i didn't at the time want to deal with that.

i feel fine after i smoked the right kind of strain. >> a lot of seniors grew up as did i did thinking that it was something only jazz musicians did, you know. but, we have all evolved. i mean the whole country is evolving. >> hug it up, man. >> great to see you. >> great to see you. i will see you tomorrow? >> yes. >> okay. thanks. have a good night. >> you see this place is all about the love. that is what i like. not any attitude or angry people coming in. nobody is screaming. nobody yelling. it is all very kind of calm, cool, collected. it's nice. stand inside of a liquor store for an hour and see who comes stumbling into a liquor store, and it is filled with angry people. there is not a lot of happy people wandering into the liquor store. very different vibe here. next customer. why do you like this place? it is a really well run establishment. it is clean, and everyone is friendly and nice here. >> and so that is pre-tax and before tax.

how are you? >> good. >> what is your name? >> captain bob. >> so you are a veteran? >> i spent a lot of time in vietnam. >> is that where a lot of the pain comes from? comes from then? >> oh, yeah. no question about it. >> what kind of injuries did you have coming out of vietnam? >> well, i have three bullet holes in the leg. i don't take anymore vicodin or any other pills. >> you are off of them? >> nothing. i go home with some of this and i sleep good and i'm not in pain. >> see you next time you come in. thanks. >> thank you very, very much. i appreciate it. >> thank you very much. >> don't let them sons of a bitches close you up. >> thank you, robert. ♪

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>> it was one of those elemental moments. >> shots were fired. >> this message was society can't protect you. >> are these guys targeting suburban america? what is interesting about marijuana, it is a schedule i narcotic, and all of this started because of richard nixon. richard nixon ultimately wanted to overthrow the, you know, the crazy hippies that were part of this peace and love movement that he saw as destructive to america, and so he was able to get it classified as schedule i

narcotic carrying the same legal ramifications if you were caught with heroin or today, methamphetamines. >> schedule i narcotics are described as having three key traits, a high potential for abuse, no accepted medical treatment in the united states, and deemed unsafe for medical use under medical supervision. it costs the system $40 billion despite the fact that marijuana is far less addictive than tobacco or alcohol which accounts for hundreds of thousands of american deaths each year. >> continuing the war on california pot shops. >> two valley pot shops have been shut down by the feds and this is important, the shutdown came without warning. >> the two dispensary raids come in regards to the connection of

a large marijuana raid in the stockton warehouse. public records show corporate paperwork for the dispensary goes to matthew davys, a property manager in stockton. >> he was indicted for the very marijuana he sold in his two dispensaries. unlike steve deangelo is facing criminal prosecution, now matt faces up to 40 years in federal prison. >> the case of matt davies more than any other case in the country demonstrates the conflict between state law and federal law with regard to medical marijuana. matt davies is facing charges for manufacture of marijuana even though the people of california voted overwhelmingly to permit medical marijuana use. matt worked hard to follow the state law and read the statements by candidate obama and now president obama and the justice department saying that if you follow the state law, you will not be prosecuted by the

federal government, and those statements that matt relied on happened to be false. >> thank you, everybody. thank you. >> it was in 2008 when then candidate barack obama called for dea raids a waste of taxpayer money. youtube posts show that campaigning barack obama called the dea raids on the medical marijuana shops a waste on taxpayer money. >> are you prepared for the oath? >> i am, sir. >> he made the campaign statements official policy with the justice department releasing the ogden memo which suggests that the government would no longer focus resources on individuals whose actions were in clear and unambiguous compliance with the state laws. basically, if you were using or growing marijuana for medical purposes in states where it is legal, you would not have to worry about the feds knocking down the door.

this shift led to dispensaries proliferating across states that had previously legalized it. but contradictory to what the ogden statement said in the following two years of the release, the department of justice actually increased the raids. in 2011, as the crackdowns continued, the justice department released a subsequent memo saying that the marijuana medical patients would be free from prosecution, but not industrial growers. by april 2012, the number of dispensaries raided grew to nearly 200 and resulting in over 60 federal indictments which is more raids in the first four years of the obama administration than the eight years of the bush administration. >> harborside was a model that we looked to and were happy with. we thought that steve was a pioneer in the industry, and we thought that he was definitely somebody to look at to do it right.

the only way we diverged which became the downfall, we knew that steve was beholden to the market, and thus the patients were paying much more higher prices really than they should have to. we thought how can we do it better than steve? we can vertically integrate to lower the price of medicine so we can offer the same equivalent product that steve did at 40% less. >> there you go. >> when i plotted my worst case scenarios, the idea of federal intervention was never one of them. i was naive for trusting our government and believing what they said. >> today, i don't accept that my husband is going to prison. i'm afraid of it. but i don't accept that it is going to happen, because i think that there has to be someone who sees the situation and realizes what a gross miscarriage of justice it would be to put him in prison.

>> dispensaries can't stay open without a steady supply of product to sell. cannabis is a plant and for harborside to operate, someone has to grow it. in california, dispensaries are state licensed, but not any of the growers. leaving them with no real legal protection and living under the constant threat of procution. once targeted, a growing operation's legal consequences can be much more severe than a dispensaries as they are often subject to severe mandatory sentences. so i'm locked in the back of a blacked out van? where in northern california being driven to a undisclosed location where they grow vast amounts of marijuana, and there are stipulations that we cannot show you the people who work there, or show you the people's faces that work there or hands or body parts. this is not sketchy at all.

we are driving into a building right now. you hear the dogs? they are closing the doors so we won't know where we are, and they are getting out. when it comes to growing operations at least in the eyes of the federal government bigger is not better. every time california or any other state has attempted to license a large growing operation, the government has stepped in and prohibited them from doing so. the growers rarely publicize their operations out of fear of being raided and arrested. this grower agreed to take us around the facility, but out of fear of prosecution, he made us alter his voice and identity.

he is the only one we found who would talk to us. in the eyes of the government is this legal? >> in what government? >> in the state? >> we are compliant and we are not, federal. >> and so would you be arrested or confiscate anything? >> well, we don't know. nobody really knows. every story is different. this is actually a room that is just set up to go into flowering. >> okay. this is like such a massive setup, and this is only one room. >> yes. >> how many rooms like this do you have? >> two. i would say this is a small to medium-sized commercial facility with hundreds of lights here, and this city has no industry, so without us, the city would be worse than it already is. they say that 1 in 3 warehouses in the city are closed. >> 1 in 3. wow! that is amazing.

so these are all the ballasts for all the lights that are in the rooms, and you have air ventilation system that keeps the air moving and these are the charcoal filters and what etch one of the charcoal filters does is to filter out the air so you won't get that marijuana smell. and here in these two rooms is about $500,000 of materials before they grow plant number one. it is -- it's unbelievable. whoa! look at this. holy cow. it is like a cheech and chong dream in here. when you harvest, how many pounds would come out of marijuana plants? >> a pound per light. >> so about 50 lights? so you are hoping for 50 pounds? >> yes. >> and let's do the math. the current price of a pound of og kush, $2700. and this room of lights would be 50 lights, and so that would be

$135,000 from each room. so when you take out the room, it is going to be about $540,000, and once you pay the employees and the dividends, how much do you make at the end of the year? >> well, you would have to ask it at the end of the year. we just became cash positive. to be honest, i have not cashed a paycheck in a year. but one of the reasons i'm here is because i believe in the movement. >> well, thank you for taking the time today. i appreciate it. see you on the other side. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor

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stroumbolopol strom bow lap . >> harborside has built its reputation on its commitment to patient service. today i'm experiencing it firsthand, going out on runs in their newly minted delivery service. in response to the constant threat of having their location shut down, harborside is committed to making sure their medicine gets to their patients. >> how many deliveries do you do a day? >> there is anywhere from 45 to 100 deliveries a day. >> and what are the customers like? are they people who can't travel? are they old or -- >> you get a mix, some just

enjoy the convenience of it. there are a lot of patients who are senior is citizens, there are patients who are disabled, some veterans. some just can't get a ride or have lost their ride. i know there are patients that lost their ride, and the person that used to give them the ride, they're now kind of sketched out about all the federal attention. some don't want to come to the dispensaries. >> what is the most unusual place you went to to make a delivery? >> to a church, i didn't personally do it, but a driver went to a church. >> is what you do legal? >> it is legal in the state, but of course federally, it is 100% prohibited. >> hi, how are you? >> during delivery, ids were examined and ordered checked with the same thoroughness as happened at the dispensary. >> go ahead and count. >> because of federal crackdowns on banks and credit card

companies who dealt with the dispensaries, all the transactions are conducted in cash. why is marijuana such an important part of your life? >> i have a history of being very underweight, i go down to 80 pounds, that is not good. but if i smoke a little before each meal, i find i can eat more. >> this is the purpose why you guys are over here visiting myself today. >> oh, what happened? >> i broke my ankle. >> gabrielle is a caretaker for her husband who did three tours of duty and who struggles with ptsd. >> how long did it do it before? >> three years. >> and how was it before? >> that was not a pretty picture. because we have to give him medicine. i think it was just making him more numb and not getting any results. versus using pot, he is always

in control. he can be someone that i can manage to be around and not afraid. because a lot of the times, when they get out, they like to be isolated. they don't like to be around many people. we have kids. you need to be around. >> do you have like family and friends who think it is a mistake that you give it to him? >> my grandmother, but my grandmother is 95 years old. i can't change that. hello, hello. >> hey, hi, how are you? >> come on in. >> i'm not trying to be a vegetable. >> after you went off chemo, what did you going to the natural remedies, the oils, what do they do for you? >> they help me sleep, and that is very, very important when you try to heal to get the sleep. and also, my brain function is

coming back. and i have five beautiful children and six gorgeous grandchildren, and i love them all. so i want to be around. i want to be effective. >> why do you think there is so much pushback? you know, just not in california, but across the country with regards to medical marijuana? >> because the pharmaceutical companies want to give us so wrapped up in taking pills. you know, it is just pushing, pushing pushing against what is natural, what we can do for ourselves. how we can find new ways to stay healthy. and this whole mindset that you feel the pain, you go to the doctor, you get a pill. you take the pill. and that is supposed to make you well. and so i just really think it is about money. >> sandra may have a valid point. after all, many are in favor of marijuana. 18 states have legalized. most recently, washington and

colorado have outright legalized it altogether. so if the country is in favor of decriminalizing marijuana and legalizing it for federal use, why is the federal government so steadfast in its opposition? well, one reason could be the lobbyists. the rehab centers all stand to lose billions from possible rehabs. and many could lose jobs if the war on pot ends. industries like these have a history of not letting anything get in the way of their profits. >> u.s. attorney melinda haig issued a statement about harborside which i find to be pretty compelling. she basically says she now needs to consider action against stores like harborside, because the larger the operation, there could be abuse of the marijuana laws and those who don't

demonstrate they have a medical need. basically she says because you're so big and successful, we want to make sure that by attacking you no illegal ones pop up. that we'll basically shut you down. it is kind of dumbfounding. so i'm going to call melinda haig and see what the word is from her. yes, i'm trying to reach melinda haig. >> great, thank you. >> you have reached the voice of melinda haig, please leave a message. >> yes, i'm trying to reach u.s. attorney melinda haig, this is morgan spurlock calling, i want to speak to you about the medical marijuana and the f forfeiture that is in progress,

nobody there, we're going to keep calling. >> i'm not able to take your call right now, if you leave your number. >> morgan spurlock calling for melinda haig. >> yes, i'm trying to reach melinda haig, and once again, i'm morgan spurlock. it is very evident nobody is going to talk to us. we're going to keep trying. d than probably anyone else. we've had this farm for 30 years. we raise black and red angus cattle. we also produce natural gas. that's how we make our living and that's how we can pass the land and water back to future generations. people should make up their own mind what's best for them. all i can say is it has worked well for us. even in stupid loud places. to prove it, we set up our call center right here...

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a few days, we are heading to san francisco to meet up with the lawyer who represents harborside health center. harborside is operating in dangerous legal waters. no dispensary has ever successfully fought back against the federal government, and no city has ever come to a dispensary's aid like oakland. the city sees harborside as the very model of a responsible business estimating it has taken $20 million out of street dealer's hands. >> i'm morgan spurlock. >> nice to meet you. >> why did you decide to take on their case? >> i admire what they are doing. i enjoy taking on challenging cases. >> it would be most unfortunate if harborside were closed down because the federal government would be depriving the states and the other dispensaries of a model they should aspire to emulate.

harborside and you, and you and harborside are the first medical marijuana cannabis dispensary that has really stood up to the federal government. they have done it to other dispensaries, but they have quietly closed down. >> why do more people not fight back? it is expensive and scary, and the odds are overwhelming and very few people are willing to stand up to the united states of america, and that is what he is willing to do. he is willing to make a sacrifice for what he believes in. this is the united states of america versus harborside. >> the day steve d'angelo has been waiting for is finally here. chief federal justice maria elena james is hearing their motions, and she could effectively shut down harborside for good. >> i came from kentucky. i love you. i love you. i love your brother. >> i know if i died tomorrow that my life's work is going to

be accomplished, and i don't think that the drug warriors like melinda hague can say the same thing. >> thank you so much. >> all right. all right. there's henry. okay. >> the precedent-setting ruling today will likely shape the future for cannabis for patients and proprietors and for all of the states with these laws on their books. >> i'm all set, baby. >> we are going to win. >> absolutely. that is what we came here to do. >> for steve, a win is everything. a loss would be devastating. ♪ et toujours ♪ me amour ♪ how about me? [ male announcer ] here's to a life less routine.

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ruling from the judge, and a meeting to announce the decision to the harborside staff and supporters has been called. >> i am happy to report to you that the federal judge in our case, the judge elena maria james ruled in our favor and said that harborside does not have to stop selling cannabis, and the landlords cannot force us to stop selling cannabis, and our doors are going to remain open.

>> even though this is a great victory for harborside, the federal government is still focused on shutting them down. the next step is a trial, and only time will tell if the will of the people is more powerful than the 42-year-old laws of the federal government. >> people will look at steven and say, he is some crazy old stoner running the business, but i think that what he is doing is to really change the tide in perception of what medical marijuana is. i think that he is proving that there is a market for it. he is proving that there is a need for it. and i think that he is proving that there is a way to do it safely, efficiently, and what we are really starting to do to turn people around to this notion when they see it is a business and not shady guys on the street corners and people hanging out with tank tops and

selling drugs, they will see that it is people running clean establishments that are safe, that ultimately, not only generate revenue for the city, but generate vast amounts of tax revenue for the country. i mean, it could really change things. >> and if the government decides to regulate and tax, we might soon be calling the bureau of atf, the bureau of alcohol, tobacco, firearms and marijuana. on february 14th, 2013, judge james ruled that the city of oakland had no standing in suing the federal government on behalf of harborside and threw the case out. harborside is still awaiting a trial date to present their case in front of a bay area jury, the case will most likely be decided in 2014. facing the possibility of a much longer sentence, matt davies accepted a plea deal to send him to prison for the mandatory minimum of five years.

as for u.s. attorney melinda haag, i have called and called and called and -- nothing. that is what i'm getting from the phone calls right now. flight twa had taken off when suddenly it had slammed into the ocean. that tragedy, and it is now in the news again. controversial documents disputing that the crash was an accident, and the film claims an outside force brought down the plane. tonight, theories and conspiracies and the results of our own investigation. cnn's david mattingly has the story. salvaging from the atlantic ocean, this was the starting point for seeking answers. after four years of investigation, an electrical short circuit inside the plane was declared the culprit.