fire power that they have. so, you know, at some point, we have to say we should do what's right. you know, rather than just what's easy. . . . . marijuana, the burning weed with its roots in hell. >> marijuana has not always been hated by the u.s. government. in fact, before 1937, it wasn't even considered an illegal drug. but after prohibition, the government needed a new evil to go after, so they formed the federal bureau of narcotics and put marijuana near the top of the hit list. they've been hating on pot ever since. but in 1996, california became the first state to legalize medical cannabis and 18 other states followed suit. now with more and more states not only decriminalizing, but

legalizing marijuana, can the federal government still believe that pot is as dangerous as heroin? and what will it take for the feds to respect state cannabis laws? turns out, one particular dispensary in oakland, california, could decide the fate of medical marijuana for the entire nation. >> time the go 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 a 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 illegal. so while it is legal in california for them to sell medical marijuana, it is illegally federally for these places to exist, so it is a catch 22. i don't know, but it is going to be really interesting to see where you should draw the line. is legalization the answer or just opening up a much larger can of worms and a potential for more problems, because that is what a lot of people will argue. the minute you legalize it, we will become a nation of unemployed good for nothing sitting around eating twinkies and not having jobs. >> but in order to purchase or let alone smoke any of that illegal marijuana, i have to go see my doctor. hello. good. is this your first time doing this? >> yes, it is. >> please fill out the questionnaire.

>> i understand under the federal act, that marijuana is highly addictive and potential for abuse -- and it is for treating serious and debilitating conditions, and i acknowledge that i have been advised not to drive vehicles or operate machinery or participate in any active they that requires analytical activities while under the influence of cannabis. have you used any of the following drugs -- opiates, mushrooms, lsd -- a lot of damning information to this questionnaire. >> thanks for filling this out. >> yeah, thank you. >> okay. so, let's see. morgan spurlock, you are 42 years old, and you would like to use marijuana, and you think it

might help you for anxiety and insomnia, and you have talked to the doctor about your insomnia? >> i have. >> and did your doctor have any recommendations? >> yes, he gave me some xanax? >> do you that prescription bottle with you or not? >>do. >> so the fact that you have a primary doctor, i do a brief physical exam. don't fall asleep here now. >> it wouldn't take much. >> i can tell. i see no reason why you shouldn't try the marijuana. i will make out a recommendation for you, and different strains will help you sleep and different strains will help you to be more alert. and for some people, it can create a little bit of paranoia and anxiety, and depends upon the strain. >> i don't need more paranoia in my life. >> no. most of us don't. >> yeah. >> there it is. wow.

not only do i now have a card that makes me the ability to buy cannabis 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, and in the state of california and in san francisco, i can grow up to 24 plants in my backyard if i so wanted to. now that i have my card, the next stop is over in oakland bay. harborside was founded in 2006 as a model of what a medical marijuana dispensary could be. this is the largest dispensary in the united states, but according to the feds harborside is the largest illegal drug distribution center in the country. and today -- >> hello, man. >> i'm harborside's newest hire. harborside faces an uncertain future, and federal efforts have forced a closure of more than 600 dispensaries in california alone.

u.s. attorney melinda hague has pursued harborside with a vengeance, but they have decided to fight back. within a month, the courts will decide whether or not harborside can continue to do business in california. >> it is a lot nicer than i thought it would be. it looks like a proper health clinic, but smells like my college bedroom. >> steve d'angelo is the executive director and co-found over harborside center. >> welcome to harborside. >> nice to meet you. >> you, too. >> what are the ailments that people are seeking when they come in in here for treatment, what is the scope? >> well, we see everything from very serious illnesses like cancer, hiv, aids, epilepsy to things like anxiety, depression and insomnia, and lot of patients with chronic pain. california law allows doctors

to write a recommendation for any condition that cannabis is effective for, and it turns out that cannabis is effective for a very wide range of conditions. >> what happens when somebody gets here? >> well, the first thing that happens is outside. the patients show their cannabis photo i.d. before they are admitted inside. >> so you can't just walk in from the street? >> right. three patients to come through the door. new patients, returns patients and other patients who are bringing us remaining medicine to distribute to the other patients. this is our reception area. patients come in. we double-check their medical cannabis recommendation and make sure that you have not exceeded your maximum number of visits and welcome that you are either to go on to the floor to select your medicine or to take advantage of some of the other services that we have available here. we offer acupuncture, and tai chi and yoga and reiki and other services.

they never have to buy anything. we have a care package program for low-income patients that provides them with treatment and medicine. serves about 500 patients. now we're going to be leaving the public part of our facility and going into the private, secure area. >> the first stop for any cannabis is here, the intake department. >> this is the most i've ever seen in my life. >> when you have 600 to 800 patients a day coming through, you need to keep medicine in stock. >> the growers, all of whom are members, are first called individually to have their cannabis evaluated for both quality and purity. then a machine steve co-invented tests the potency of the plant. >> you're like the eli whitney.

if the product meets harborside's strict standards, the plant is weighed out, paid for and processed for sale. harborside insists that all of those tests are taken to ensure the safety and quality of the medicine. but according to the feds, every one of those steps is illegal. >> i'll tell you what the process is for helping a patient select their medicine. cannabis contains about 65 unique chemical compounds. the ratio of those 65 chemicals, one to another, varies in each one of the various different strains of cannabis and there's over 600 strains that we know about. now, the interesting thing is that unlike varieties of wine, all of which make you feel basically the same, each variety of cannabis has a slightly different effect. harborside classifies four major different types of cannabis.

>> what are the difference between indica and sativa? >> sativa produces a more cerebral and energizing effect. indica produces more sedative and relaxing and pain controlling type effect. we encourage patients not to consume raw cannabis flowers by means of smoking. so if i had a patient who came to me and was complaining of chronic pain that woke him up at night or insomnia and what they really wanted from the medicine was the ability to get a good solid night's sleep, i would probably recommend to them one of these capsules here. >> where do these capsules come from? >> these are made by patients. >> and that's not all they make. they're for nausea, topical

concentrates for skin cancer lesions, even lotions and salves, treatments for all kinds of ailmenailments. >> it's important that patients have wide varieties in cannabis but also a wide range of different forms of cannabis medicines. >> you might guess that harborside does pretty good business, and it's true. on average, they sell more than $75,000 worth of cannabis each and every day. so it comes as no surprise that the facility has a topnotch security system, complete with sophisticated surveillance systems, biometric locks and a reinforced fault. >> all the money is locked up. >> i created harborside to set a standard of professionalism and excellence that the rest of the industry hopefully would emulate, that would allow us to show the rest of america that this is a substance not to be afraid of, but something to embrace. >> but why a non-profit? why not say we're making $25 million a year, we should make this a for-profit business so we

can really make some money? >> well, because california law requires us to be a non-profit, and we are committed to being 100% compliant with the law, so we take that non-profit mandate very seriously. but if the state of california saw fit to make this activity a profit-making activity, we would embrace that with equal enthusiasm. >> i bet you would. >> so what's the plan for tomorrow? >> tomorrow at 8:30, we're having an all-staff meeting to update and discuss our legal situation with the federal government. and 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. the last thing you would expect is that a bunch of stoners would be able to have a well-organized business. it's impressive. it's really impressive.

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today's my first day of work at harborside health clinic. even though more and more states believe that marijuana should be legal, the federal government feels otherwise. the problem with the feds became back in 2009 with an irs audit.

next, the treasury department interfered with their banking operations. finally, the u.s. attorney filed civil asset forfeiture proceedings, meaning that all of their property and assets are vulnerable to seizure. the federal government used the dispen -- views them as a criminal organization, but harborside has chosen to fight back and has an unusual ally in their corner. the city of oakland has taken the u.s. government to court to keep harborside up and running. this marks the first time any city has taken the u.s. government to court over its marijuana laws. >> so our next big test is going to be december 20th. it's going to be a really historic day of hearings. critical constitutional issues about the power of localities, cities, states, and the federal government and their relationships to each other are going to be discussed and implicated in this case. it is a case of huge national

importance. first we're going to hear a motion from the city to completely stop any further proceedings. if the judge were to rule on that motion that day, it would stop everything dead in its tracks and probably never resurrect it again. then we're going to hear motions from our landlords for the court to issue an order for us to cease and desist selling cannabis. if we win, that means that we get our day and court we will win. we will be in front of a bay area jury. all we have to prove is that more harm will result from closing harborside than result from allowing harborside to stay open. i can make that case to a bay area jury with my hands tied behind my head with a gag in my mouth. [ applause ] if we lose those injunctions, we will be issued with a cease and desist order. so what that means is that we

may be looking at a situation where we may need to adapt our business model. but i'll tell you one thing for sure and certain. we will keep the commitment that we made to our patients six years ago, more than six years ago, to provide them with the highest quality medicine and the highest quality patient car possible. that we will never, ever abandon the patients who depend on us. >> harborside facing out. >> attention harborside. the time is now 10:00. harborside is open. all remaining staff, please turn your channels to channel 3. >> how you doing, man? >> hey, how are you doing? >> good, brother. >> what do you need today? >> that one is really

interesting. i also need a single dose bar dark chocolate. >> what do you use the extract for? >> spurs, carpal tunnel. >> i have problems sleeping. i also have a herniated disc in my back and it really helps the muscles relax. >> can i smell it? >> you sure can. >> chocolate chip. chocolate chip. chocolate. >> what were you taking before? >> i was taking anti-depressants, synthetic hormones, sleeping medication, something to combat the side effect from the anti-depressant. >> medication to deal with your other medication. >> i was taking mood stabilizer. took it for three days and made my kidney start to bleed. >> so were you having internal bleeding or peeing out blood? >> peeing out blood. at the time, i was like i don't

want to have to deal with that. i felt fine after i smoked the right kind of strain. >> a lot of seniors, as i did, thinking it was only something others did. but the whole country is evolving. >> good to see you. >> okay, cool. i'll see you then. thanks, have a good night. this place is all about the love. that's what i like. angry people coming in. nobody screaming. no yelling. it's all very kind of calm, cool, collected. it's nice. stand inside of a liquor store and see who comes stumbling into a liquor store. it is filled with angry people. not a lot of happy people wander into a liquor store. very different vibe here. next customer. why do you like this place? >> it's a really well-run

establishment. it's clean. everyone's friendly. it's nice here. >> how are you? what's your name? >> ken. >> you're a veteran? >> i spent a lot of time in vietnam. >> is that where a lot of your pain comes from? >> oh yeah. there's no question about it. >> what kind of injuries did you have coming out of vietnam? >> i don't take any more vicodin. i don't take any more of those pills. nothing. nothing. go home, have some of this, i sleep good. i'm not in pain. >> thank you very, very much. i appreciate it. don't let them sons of bitches close you up.

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what's interesting about marijuana, it's a schedule 1 narcotic. all of this started because richard nixon ultimately wanted to overthrow the crazy hippies that were like part of this peace and love movement that he saw as being destructive to

america, and so he was able to get classified as a schedule 1 narcotic, carrying the same type of legal ramifications as if you were caught with heroin, or take methamphetamines. schedule 1 narcotics have three key traits. high potential for abuse, no accepted medical use in treatment in the united states, and it's been deemed unsafe for use under medical supervision. it's estimated the united states spends around $40 billion fighting the war on drugs annually and $13.7 billion of that is spent on marijuana. all this despite marijuana is far less addictive than alcohol or tobacco, which together accounts for thousands of american deaths every year. >> tonight we confirmed that two valley pot shops have been shut down by the feds and this is important. the shutdown came without warning. those two dispensary raids appear to be connected to the

discovery of a large marijuana growing operation two weeks ago in this stockton warehouse. public records show corporate paper work for the medicine dispensary goes to matthew davies, a property manager in stockton. >> you ready to do this? >> yes. >> matt davies was federally indicted for growing the very marijuana that he sold in his two california dispensaries. unlike steve d'angelo at harborside health, matt is facing a criminal prosecution as a result. now matt, an mba with a wife and two young children, is facing up to 40 years in federal prison. >> the case of matt davies, more than any other case in this country, demonstrates the conflict between state law and federal law with regards to medical marijuana. matt davies is facing federal charges for manufacturing marijuana, even though the people of california voted overwhelmingly to permit medical marijuana use. matt worked hard to follow the state law. he read the statements by candidate obama, and then

president obama and his justice department saying if you follow state law, you will not be prosecuted by the federal government. those statements that matt relied on ended up to be false. >> thank you, everybody! thank you! >> it was in 2008 when then candidate barack obama denounced the bush administration raids on medical cannabis. >> a campaigning barack obama calling dea raids on medical marijuana shops a waste of taxpayer money. >> what i'm not going to be doing is using justice department resources to try to circumvent state laws on this issue. >> are you prepared to take the oath, senator? >> i am. >> upon taking office, the obama administration made his campaign statements official policy, with the justice department releasing the ogden memo. this suggested that the government would no longer focus resources on individuals whose actions were in clear and unambiguous complete with state laws. basically, if you were using or growing marijuana for medical purposes in states where it was

legal, you wouldn't have the worry about the feds knocking down your door. this policy shift led to medical marijuana dispensaries proliferating in all states that previously legalized it. but in the following two years of its release, the department of justice actually increased its raids. in 2011 as the crackdowns continued, the justice department released a subsequent memo saying that medical marijuana patients would be free from prosecution, but not industrial growers. by april 2012, the number of dispensaries raided grew to nearly 200, resulting in over 60 federal indictments. that's more raids than the first four years of the obama administration than in all eight years of the george w. bush presidency. >> harborside was a model that we looked to and were very happy with. we thought steve was a pioneer in the industry. and we thought he was definitely somebody to look at to do things

right. the only way we diverged, which i guess became our down fall, we knew steve was beholden to that wholesale market, and thus his patients were paying much higher prices really than they should have to. and we thought how can we do it better than steve? we can vertically integrate so we can lower the price of medicine so we can offer the same equivalent product as steve did at 40% less. >> here you go. >> when i thought of 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's going to happen. because i think there has to be someone who sees the situation and realize what is 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 prosecution. once targeted, the growing operation's legal consequences could be much more severe than dispensaries, as they are often subject to severe mandatory federal sentences. >> so i'm locked in the back of a blacked out van somewhere in northern california being driven to an undisclosed location where they grow vast amounts of marijuana. there are some other stipulations that we have to follow now. we can't show any of the people who work there. we can't show any of the people

who work there's faces. we can't show any hands or body parts. this isn't sketchy at all. we're driving to a building right now. you hear the dogs? buzzing the doors so we won't know where we are. they're getting off. when it comes to growing operations, at least in the eyes of the federal government, bigger isn't better. every time california or any other state have attempted to license a large-scale growing operation, the government has stepped in and prohibited them from doing so. 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, would not appear on camera and made us alter his voice.

he was the only one we found who would talk to us. is what you're doing legal in the eyes of the government, or no? >> which government? state, federal -- >> what does the state government says? >> state, we're compliant. federal, we are not. >> would you be arrested? >> we don't know. nobody ever really knows what happens. every story is different. this is actually a room that is just set up. >> okay. this is like such a massive setup. this is only one room. how many rooms like this do you have? >> two. this is a small to medium sized commercial facility. there are people with football sized fields. the city has no industry. so without us, the city would be worse. they say that one in three warehouses in the city. >> one in three.

wow. that's amazing. so these are for all the lights that are in the rooms. you have the air ventilation system that keeps the air circula circulating. these are the charcoal filters. what each one of these does is filters out the air so you don't ever get that marijuana smell. and just here in these two rooms is about $500,000 worth of materials before they even broke plant number one. it's unbelievable. whoa. look at this. holy cow. it's like a cheech & chong dream in here. when you harvest, how many pounds of marijuana will come out of medical marijuana plants? >> we would hope a pound per light. >> per light. how many lights? you're hoping for 50 pounds. let's do the math. the current price of og kush is $2,700. this one room will produce $135,000 worth of product.

the growing cycle takes three months, so that's about $540,000 a year from each room. once you take off your expenses, you've got a room that costs you $500,000 and you pay your employees and investors, what do you take home? >> you have to ask that question at the end of the year. we just became cash positive. i have not cashed a paycheck in a year. one of the reasons i'm here is i believe in the movement. with that being said, there is a lot of ground to be made here. >> thank you very much, i appreciate it. see you on the other side.

harborside has built its reputation on its commitment to patient service. today i'm experiencing this firsthand, going out on runs in their newly minted delivery service. >> all right. let's ride out. >> in response to the constant threat of having their physical location shut down, harborside started its delivery service to ensure that they could continue to get their medication to the patients. how many deliveries do you usually do in a day? >> anywhere from 25 to 40 or so deliveries in a day. >> what are the customers like? people who can't travel? or they're old? what is it? >> some people just really enjoy the convenience of it.

there are a lot of senior citizens. there's patients that are quadriplegics. a lot of veterans. some have lost the ride. personally needs to give him that ride. some people don't want to come to the main dispensaries. >> where's the most interesting place you've ever made a delivery? >> i think a church. i didn't personally make the delivery, but i know one of my drivers did have to go to a church. yeah. >> is what you do legal? >> what we do is legal in the state of california. of course, federally, it is still 100% prohibited. >> hey. >> how are you? >> during delivery, i.d.s were examined and orders checked, the same thoroughness as at the dispensary. >> go ahead and count that. >> okay. there's 53. >> because of federal crackdowns on banks and credit card

companies who had dealings with dispensar dispensaries, all of harborside's transactions are conducted in cash. >> why is marijuana such an porpt part of your life? >> i have a history of being extremely underweight. i go down to 80 pounds. that's not good. if i smoke a little before each meal, i find i can eat more. >> this is why you guys are over here. >> what happened? >> i broke my ankle. >> gabrielle is a care giver for her husband, a veteran who did three tours of duty and currently struggle with post-traumatic stress disorder. >> how long has your husband been on medical marijuana? >> three years. >> how was it before? >> that was not a pretty picture. because we had to give him medicine. i think it was just making him more numb and not getting any results. versus using pot, he's 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 friends or family who think it's a mistake that you give it to him? >> my grandmother. my grandmother is 95 years old. i can't change that. >> hi, how are you? >> i'm good. come on in. >> thanks. >> i'm not trying to be a vegetable. and i'm not trying to be on something that i won't ever be able to get off of. >> after you went off chemo, what did going on the natural remedies, going on to the cannabis do for you? >> they helped me sleep and that's very, very important when you're trying to heal to get the

sleep. i have six gorgeous grandchildren. i want to be around and i want to be effective. >> why do you think there's so much pushback -- not in california, but across the country with regards to medical marijuana? >> because pharmaceutical companies want to keep us so wrapped up in taking pills. it's just pushing, pushing, pushing against what's national, what we can do for ourselves, how we can find new ways to stay healthy and this whole mindset that you feel a pain, you go to the doctor, you get a pill, you take a pill and that's supposed to make you well. i just really think it's about money. >> sandra may have a valid point. after all, three quarters of americans are in favor of medical marijuana. 18 states in washington, d.c. have formally legalized it for medical use. 14 states have decriminalized pot. and most recently, washington

and colorado have outright legalized it altogether. so if the country seems to be increasingly in favor of decriminalizing marijuana and legalizing it for medical use, why is the federal government so steadfast in its opposition? well, one reason could be the lobbyists. the alcohol industry, for-profit prisons and rehab centers all stand to lose billions of dollars from pot's legalization. and law enforcement, as well as many government departments and career politicians, could lose jobs if the par on pot ends. industries like these have a history of not letting anything get in the way of their profits. u.s. attorney melinda hague issued a statement about harborside, which i find pretty compelling. she basically says she now needs to consider actions regarding marijuana superstores such as harborside, because the larger the operation, the greater the likelihood there will be abuse of the state's medical marijuana laws and marijuana in the hands

of individuals who do not have a demonstrated medical need. basically what she's saying is you're so big and so successful, that because of that, we want to make sure that by attacking you, no illegal ones pop up. we're going to basically shut you down. it's kind of dumbfounding. so i'm going to call melinda hague and see what the word is from her. yes, i'm trying to reach melinda hague. great, thank you. >> you have reached the voicemail of melinda hague, u.s. attorney for the northern district of california. please leave a message and we will get back to you as soon as possible, thank you. >> yes, i'm trying to reach u.s. attorney melinda hague. melinda, this is morgan spurlock calling. i wanted to speak to you about harborside medical and the actions that are currently being put against them. if you could call me back, i'd love to talk to you when you have a chance. thank you, bye. nobody there. we're going to keep calling.

>> not able to take your call right now. if you leave your name, number, time of call. >> morgan spurlock calling for melinda hague. >> i'm not able to take your call right now. >> yes, i'm trying to reach melinda hague's office please. once again, it's morgan spurlock. hope you're well, thanks, bye. >> nobody's going to talk to us. it is very evident no one's going to talk to us. we're going to keep trying. i'm nathan and i quit smoking with chantix.

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with the court date in just a few days, we are heading to san francisco to meet up with henry wicowski, 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 dealers' 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 stood up to the medical government. they have done it to other dispensaries, but they have quietly closed down. >> why do more people not fight back? >> they're scared and it's very expensive. the odds are overwhelming. it's very few people that are willing to stand up to the united states of america. and that's what he's doing. he's willing to make a sacrifice for what he believes in. i mean, 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 shutdown 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. i really appreciate. >> sure. all right, all right. there's henry. okay. >> the precedent-setting ruling today will likely shape the future of cannabis for patients, for proprietors, and for all 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.

there's no secondhand smoke in here... ...and no cigarette advertising around here. there's a reason we know this is really bad... ...and this is really good. there's a reason 2 in 3 people are surviving cancer. and we cannot be silent until it's 3 out of 3. this shout-out is for everything the american cancer society has done in the last 100 years. make your tax-deductible donation by december 31st and help finish the fight. where does the united states get most of its energy? is it africa? the middle east? canada? or the u.s.?

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steve has received the 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.

[ cheers and applause ] >> even though this is a great victory for harborside, their fight isn't over yet. 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 set for 2014. facing the possibility of a much longer sentence, on may 31st,

matt davies accepted a plea deal to send him to prison for the mandatory minimum of five years. as for u.s. attorney melinda hague, i have called, and called and called and -- nothing. that is what i am getting from the phone calls right now.