San Jose Considering Up to $50K in Fines on Dispensaries

San Jose is thinking about upping fines on medical marijuana dispensaries by thousands of dollars to ensure the businesses comply with strict new rules set down by the city earlier this year.

Under the proposed fee structure, dispensaries could be fined anywhere from $1,250 to a whopping $50,000 for serious violations of the regulations, such as public nuisance issues or multiple charges of operating in an improper location.

Currently, the city charges just $25 for many of these types of violations.

The new fees, if enacted, would help the city close down dispensaries that have not obtained licenses and crack down on those violating other aspects of the new rules.

Luckily for dispensary owners, the council decided to delay a vote on the proposed fee increase, instead asking staffers for a report on the issue by Oct. 30.

Many of the city?s roughly 90 dispensaries back in July were told they needed to apply for a formal permit with the city and meet a host of new regulations or close down. Only seven have received tentative approval for licenses, and those that haven?t must do so by Oct. 17 or shut down.

The new laws ban MMJ dispensaries in most of San Jose, and opponents say it?s an outright prohibition on medical cannabis that will only boost black market.