California cannabis company sues over revoked business license

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A California cannabis business that lost a license after its former owner was convicted on bribery charges is suing the municipality that revoked the permit, claiming city leaders exceeded their authority and didn’t follow their own procedures for disciplining marijuana companies.

Natural Healing Center’s retail license in the town of San Luis Obispo was revoked in October after one of the business’ owners – Helios Dayspring – pleaded guilty to both tax evasion and bribery charges.

But in a lawsuit filed Dec. 23 in San Luis Obispo County Superior Court, Natural Healing Center argues that it was entitled to some measure of due process before its permit was yanked and that the city had no right under its own ordinance to rescind the license after it was granted, The Tribune reported.

Natural Healing Center’s lawsuit further argues that by the time the permit was issued, Dayspring was no longer an owner of the business after having transferred all his interests to his girlfriend, Valnette Garcia.

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City Attorney Christine Dietrick told the San Luis Obispo newspaper that the municipality stands behind its decision to revoke the retail license.

“We think that the city has acted fairly, appropriately, and in a way that’s legally supportable,” Dietrick said.