Santa Ana dispensaries sue unlicensed facilities

A group of licensed medical marijuana dispensaries in a Southern California town have sued MMJ outlets without legal permits to prevent them from selling cannabis.

The Santa Ana Cannabis Association filed the lawsuit targeting 14 unlicensed dispensaries in Santa Ana. The suit alleges the dispensaries are operating illegally, ignoring local safety codes and undermining the licensed businesses, according to the Orange County Register.

The licensed dispensaries are seeking an unspecified court judgment, as well as an injunction to close the unlicensed medical cannabis shops.

A 2014 initiative approved by the city stipulated 20 licensed dispensaries, with the permits to be doled out through a lottery.

In March 2016, Santa Ana officials reported there were twice as many dispensaries operating illegally as legally, undermining those outlets operating within the law.

California’s black and gray markets are major challenges to the successful implementation of the legal market in the state. Since the state legalized rec marijuana in 2016, some business owners are finding California’s regulatory framework to be difficult to navigate.

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One comment on “Santa Ana dispensaries sue unlicensed facilities
  1. jodi boyd on

    Are Unlicensed Dispensaries placing California Medical Marijuana Patients at Risk?

    I am very concerned about the number of illegal dispensaries not playing by the rules, and potentially creating consumer safety issues that place medical marijuana patients at risk.
    Many of these dispensaries are located in cities and “incorporated areas of the country” that do not allow medical marijuana dispensaries/co-ops.

    Most of these dispensaries/co-ops do not even have a basic business license or resale permit.

    Where are these illegal businesses getting their cannabis? Am I smoking untested cannabis that came from a cartel in Mexico?

    Where is this “medicine” coming from? Were pesticides used during the grow process? Is there mold on that bud? Is that edible legit and properly labeled?
    How are these illegal businesses getting name-brand edibles and infused products? Obviously there is a grey-market.

    Weedmaps does not validate or check licensing for any of their advertisers, in effect sending medical marijuana patients to illegal businesses.

    Local law enforcement is either confused or unable to enforce their own laws. (Believe it or not, it is still not legal to sell cannabis or cannabis products in the great state of California without being licensed to do so.)

    The State of California will not be enforcing any cannabis laws until sometime in 2018. They “hope” to be able to begin issuing state licenses on January 1, 2018.

    None of these issues reflect well on the cannabis industry as a whole, and puts the industry at risk, too. We all want to keep the ATF and Jeff Sessions out of it, but allowing all of these illegal dispensaries to advertise and operate is just inviting trouble.

    There is no difference between an unlicensed dispensary selling medical marijuana and an unlicensed business selling beer from an unmarked storefront.

    (Now back to my CBD Cheeba Chew…)

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