SEATTLE (AP) — Gov. Chris Gregoire says she won't sign legislation to create licensed medical marijuana dispensaries in Washington state after the Justice Department warned it could result in a federal crackdown.

Scott Shupe and other medical marijuana dispensary supporters are protesting outside the Spokane County Courthouse right now.

 They'll be there until at least 4 p.m., when Judge Tari Eitzen is to sentence Shupe, 56, on three felony drug charges.

A jury convicted him last month in the first criminal case brought against a commercial dispensary owner in Washington.

Shupe, who has a previous felony conviction for a marijuana grow discovered at his home in 2006, said he hopes to avoid prison time. He still faces felony drug charges in Oregon related to a 2009 arrest.

It's been a big month for medical marijuana in Washington.

The state House passed a bill Monday that sets up a regularity system for dispensaries, and the U.S. Attorney's Office announced last week that dispensary operators and their landlords face federal prosecution if they do not shut down.

Most dispensaries remain open, and no law enforcement action has been reported.

OLYMPIA – Rules for growing, processing and selling medical marijuana passed the Washington state House of Representatives after heated debate Monday on whether the proposed law has enough safeguards to prevent sales to children.

Read the rest of Jim Camden's story here.

The bill passed the House without an amendment proposed as a joke by Rep. Glenn Anderson, R-Fall City (pictured).

 The amendment would require the state to reimburse medical marijuana patients for the cost of pizza they ate while high on legal pot.

The Department of Health would reimburse the patient “no later than five business days after the patient submits a receipt for the pizza,” according to the amendment, which Anderson withdrew on Monday.

The department would not reimburse for delivery charges, tips or more than three toppings.

“For purposes of this section, “pizza” means a pie with a bread crust topped with tomato sauce, cheese, and various toppings,” according to the amendment. “”Pizza” includes Chicago style deep dish, New York style thin crust, and stuffed crust.”

Some advocates criticized the amendment has insensitive to medical cannabis patients; others found it humorous.

There's an odd family dynamic in U.S. Attorney Mike Ormsby's shut-down-or-face-federal-prosecution warning to Spokane-area medical marijuana dispensaries Wednesday.

His younger brother, state Rep. Timm Ormsby (D-Spokane, pictured left), is among the Washington legislators trying to legalize and regulate the production and sale of medical marijuana in this state.

So as one brother readies teams of police and federal agents for potential raids on medical marijuana dispensaries that refuse to comply with orders to shut down, the other is trying to legitimize and control the growth of voter-approved pot use. 

Might be an interesting Easter gathering this year for the Ormsby family.

As for the legislative efforts in Olympia, Senate Bill 5073 is awaiting final approval in the state House, having already passed through the Ways and Means Committee with help from the younger Ormsby.

It's already passed the state Senate. Gov. Chris Gregoire has called for greater clarity in the state's medical marijuana law and has indicated she'll consider signing 5073 into law but wants to see the final version before committing herself.

Whether a legislative fix will be enough remains unclear, though.

The elder Ormsby is bound by federal law, which still considers all marijuana use illegal. It would take an act of Congress to change that.

Although Ormsby's boss, U.S. Attorney General Eric Holder, issued a directive in 2009 urging federal prosecutors to respect state medical marijuana laws, the memo appears primarily aimed at protecting individuals engaged in state-santioned personal use.

The attorney general's guidance on how to deal with commercial dispensaries is more ambiguous, arguing on the one hand that prosecutors respect state laws but on the other advising that “prosecution of commercial enterprises that unlawfully market and sell marijuana for profit continues to be an enforcement priority.”

Medical marijuana dispensaries in Spokane face federal prosecution if they do not end their operations immediately, the U.S. Attorney’s Office announced Wednesday.

Federal authorities hope for voluntary compliance but are prepared “for quick and direct action against the operators of the stores,” according to a statement by Mike Ormsby, U.S. attorney for the Eastern District of Washington.

Federal authorities will target both the operators of the stores and the owners of the properties where the stores are located, he said.

“We intend to use the full extent of our legal remedies to enforce the law,” Ormsby said. Depending on the amount of marijuana, some federal crimes carry mandatory minimum sentences of 10 years or more.

Read the rest of my story here.

Medical marijuana supporters on Monday urged the Spokane City Council to support local dispensaries after a jury convicted an owner last week of felony drug charges.

 Representatives from Spokane Indicare and other dispensaries said they fear being shut down after Scott Shupe was found guilty last Thursday.

Indicare co-owner Surisa Arispe said the dispensary has paid $10,000 in sales taxes in the six months it’s been open.

City Council President Joe Shogan said he has no control over the state’s medical marijuana law.

“You want us to do something we have no power to do,” Shogan said. “Really, you should be contacting your legislator.”

Though the Spokane County Prosecutor’s Office has said dispensaries are illegal, authorities say more than 40 are operating in the area. No law enforcement actions against dispensaries have been reported since Shupe was convicted.

Lawyer Pat Stiley, who works with dispensaries, said Monday that he’s hoping Senate Bill 5073, which addresses dispensaries, will proceed in the Washington Legislature this week and give amnesty to current operations.

Stiley compared the fear from dispensary supporters after the Shupe verdict to the fear gripping Japan in the wake of a tsunami, earthquake and potential nuclear catastrophe.

“As you can imagine after that verdict, there was a lot of terror and fear in the community,” Stiley said. “The dispensary community in Spokane sounded a lot like the northern Japanese communities to me.”

A groundbreaking trial for the area's medical marijuana dispensaries is set to begin today in Spokane.

Scott Q. Shupe, 56, faces felony drug charges stemming from a 2009 police raid at Change, a pot dispensary he operated on Northwest Boulevard, near Maple Street. 

Prosecutors have said they believe dispensaries are illegal because they distribute marijuana to more than one patient.

But pot advocates note that the statute technically states a caretaker can provide to one person “at any one time.” Owners of medical marijuana dispensaries use that interpretation to justify their businesses; Shupe says he only sold marijuana to one patient in the business at a time.

The investigation began when a detective saw a TV news article about the business.

“The news story advised that Scott Shupe dispenses marijuana and that he grows, possesses and sells marijuana and that ‘it’s all perfectly legal,’” according to search warrants used in the September 2009 raid.

Shupe is represented by Frank Cikutovich. Teresa Border is prosecuting. Judge Tari Eitzen is presiding. Opening statements are expected this afternoon or Tuesday morning.

Trial for Change codefendant Christopher P. Stevens, 37, is scheduled to begin April 11.

While Spokane County authorities say the dispensaries are illegal, dozens are operating in the area, including one on Northwest Boulevard that offers to deliver.