City Hall Closes First Medical Marijuana Dispensary Allegedly Operating Contrary To An Existing Business License, May Use Technique Against Other Operators If They're In Similar Position
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(November 2, 2009) -- LBReport.com has learned that city officials have for the first time closed a medical marijuana dispensary that was allegedly operating contrary to an existing business license: it was licensed to do something other than dispense medical marijuana.
An advisory emailed late last week from City Manager Pat West to Mayor Foster and City Councilmembers, the City Attorney, City Prosecutor and City Auditor indicated that city staff had "succesfully closed our first medical marijuana dispensary," an operation in the 1500 block of E. Broadway.
City management's advisory said: "The business license revocation was based on what they were licensed for: retail, wigs and aromatherapy and what they were actually doing, a marijuana dispensary."
The city management email said that through "the collaborative efforts of Police, City Attorney and Business Licensing," a business license revocation was conducted regarding a business owner in the 1500 block of E. Broadway. "We attempted to serve the business owner [at the location] with the appropriate revocation documentation. The business owner decided to close the business and avoid further City issues. Effective October 27, the doors were closed and a sign was posted, indicating their closure. They are currently moving out of their store. We will continue to monitor to ensure compliance," the email said.
The city management email indicates plans to conduct another business license revocation alleging similar issues for an operation in ELB.
Under current city law, there is no business license available to sell medical marijuana and there are no regulations governing its sale, matters raising both legal and policy issues. Over the past two months, these have been discussed in a City Council committee and the subject is now agendized for further Council discussion on Tuesday Nov. 3.
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