San Diego Approves Fees for MMJ Dispensaries

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As part of its ongoing quest to license and regulate medical marijuana businesses, the San Diego City Council on Tuesday backed new rules that levy a minimum annual fee of $1,100 on legal dispensaries.

The fee will vary depending on how much it costs the city to inspect dispensaries, conduct background checks and conform with other various regulations. So larger dispensaries can expect to pay more in fees.

The new rules include provisions for licenses to be revoked if a dispensary is found to be out of compliance with regulations and a requirement for background checks on employees and permit holders. They also cover optional labeling for product potency and allow cannabis testing to rule out the presence of contaminants.

The city, along with much of the rest of California, has been attempting to both shut down illegal dispensaries and regulate legal ones. The city granted its first initial approval for a dispensary permit last October, but that is now under appeal.