BREAKING NEWS: 24 Cities Sue California Over Statewide Cannabis Delivery Rule

As expected (and as we’ve written about here), California cities have joined forces to fight the State’s regulation allowing delivery of cannabis in every jurisdiction. Here is a copy of the complaint.

The lawsuit was filed in Fresno County Superior Court against the California Bureau of Cannabis Control and its chief, Lori Ajax. The local government plaintiffs challenge the regulation adopted by the BCC in January that permits state-licensed entities to deliver cannabis in cities that have banned commercial cannabis activity.

More specifically, plaintiffs seek to invalidate and permanently enjoin enforcement of Title 16, section 5416(d), of the California Code of Regulations. According to plaintiffs, Regulation 5416(d) permits the delivery of commercial cannabis to a physical address anywhere in the state, which conflicts with the plain language of Business and Professions Code sections 26090 and 26200. Business and Professions Code section 26090(e) allows deliveries of cannabis, but only if such operations comply with local law. Section 26200(a) allows a local jurisdiction to regulate or completely prohibit the operation of commercial cannabis businesses within its boundaries. Plaintiffs contend that “Regulation 5416(d) is in direct conflict with the plain language of Business and Professions Code sections 26090 and 26200, which guarantee the right of local jurisdictions to regulate or prohibit commercial cannabis operations within their boundaries.”

We will monitor the status of this lawsuit and provide updates as they become available. We anticipate that a temporary restraining order and/or preliminary injunction will be sought shortly to halt statewide deliveries while the merits of the case are decided.

Additionally, AB-1530 is still making its way through the State Legislature, and if it passes, it should moot the issue by amending state law to expressly allow local governments to ban delivery of cannabis within its jurisdictional boundaries.