Sacramento Imposes Illegal Fee On Pot Cos., Suit Says

Law360 (June 10, 2021, 8:47 PM EDT) -- Sacramento's practice of levying a fee on cannabis businesses seeking a permit to open is illegal, according to a lawsuit filed against the city in California state court this week.

The complaint, which was filed Wednesday by a Sacramento cannabis company, alleges that the fee has no connection to its nominal purpose, which is purportedly to lessen the negative impact marijuana businesses can have on their neighborhood.

"In truth, the fee imposed as part of the city's 'Neighborhood Responsibility Plan' has little or no relationship to 'neighborhood responsibility,' and certainly no relationship to environmental, public health or land use goals," the...

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