Pubdate: Fri, 01 Feb 2013 Source: San Francisco Chronicle (CA) Copyright: 2013 Hearst Communications Inc. Contact: http://www.sfgate.com/chronicle/submissions/#1 Website: http://www.sfgate.com/chronicle/ Details: http://www.mapinc.org/media/388 Author: Bob Egelko OAKLAND, FEDS FIGHT OVER POT DISPENSARY The city of Oakland told a federal magistrate Thursday that the federal government's shutdown of the nation's largest medical marijuana dispensary would damage residents' health and welfare as well as the city's revenues. The Obama administration replied that the city doesn't belong in the case. The 90-minute hearing in San Francisco was a potentially critical stage in the legal battle that started in July when U.S. Attorney Melinda Haag filed suit to close down Harborside Health Center and seize the building for violation of federal drug laws. Harborside, located along the Oakland Estuary at 1840 Embarcadero, supplies marijuana to 108,000 patients. While its operators fight the government's forfeiture suit, Oakland filed its own suit in October seeking to represent its residents' interests in keeping the dispensary open. The city claims the federal government waited too long to move against Harborside, an argument also raised by the dispensary's operators. But the threshold question Thursday before U.S. Magistrate Maria Elena James was whether Oakland has any legal rights at stake. "Oakland is trying to protect the health and safety of its citizens and its tax revenues," Cedric Chao, a lawyer for the city, told James. If Harborside is closed, he said, "tens of thousands of patients, they're going to go into the streets" and buy marijuana from street dealers, Chao said. "There's going to be a big health crisis." Oakland, meanwhile, would lose much of the $1.4 million it collects in taxes each year from Harborside and three other city-licensed dispensaries. But Justice Department attorney Kathryn Wyer said Oakland has no right to challenge the forfeiture of a building it doesn't own. Allowing Oakland to proceed with its lawsuit "would allow anyone who does not have a property interest to bypass all the limitations" in the forfeiture law, Wyer told James. The magistrate did not issue a ruling and gave little indication of her own views. The two sides also disagreed over the legality of the government's forfeiture suit. Oakland claims the suit was filed too late and also argues that the city, and the dispensary, were entitled to rely on the Obama administration's public statements that it would not target suppliers who complied with state medical marijuana laws. Chao argued that the five-year statute of limitations, the deadline for filing suit, should be measured from 2006, when Harborside opened. Federal officials are "complaining about the continuous operation of a business," he said. "The government stood by for six years and they knew full well that every single day there were hundreds of sales," while President Obama, Attorney General Eric Holder and other administration officials made reassuring statements about deferring to the states, Chao said. Wyer countered that each marijuana sale is an illegal act that restarts the five-year clock. "Forfeiture can be based on individual acts," she said. - --- MAP posted-by: Jay Bergstrom