The City of Fresno will potentially prosecute the new operator of a local cannabis dispensary after dozens of employees were let go on short notice.
Legal issues for the new operator may not stop there, however, since Fresno Municipal Code restricts how cannabis permits can change hands.
The backstory: Cannabis dispensary Higher Level Fresno, located on the west side of Blackstone Ave. between Shaw Ave. and Gettysburg Ave., has reportedly been sold to The Premier Group.
- The Premier Group currently operates nine dispensaries in Merced, Modesto, Riverbank, Santa Cruz, Stockton, Tracy and Turlock.
- The entire staff of Higher Level, which just opened on Jan. 31, was laid off on July 7 when The Premier Group acquired the dispensary.
The big picture: Fresno City Attorney Andrew Janz told The Sun that the city has received a wage theft complaint against The Premier Group.
- Janz said the city is looking into the complaint for possible prosecution.
- Earlier this year the Fresno City Council gave Janz the ability to prosecute local wage theft cases if the State Labor Commissioner does not take action within 30 days, in accordance with a new state law.
Go deeper: The Premier Group’s acquisition of Higher Level could run into separate issues with Fresno Municipal Code governing how cannabis dispensary licenses are transferred.
- Fresno Municipal Code Section 9-3325(a) states that any time a commercial cannabis business has a change in ownership, the applicant needs to reapply with the city manager for the license.
- Ownership changes are only considered at the same time as a renewal application, which generally happens on an annual basis.
- Janz declined to answer if the city was informed by The Premier Group that it acquired Higher Level or if Fresno Municipal Code has been violated in order to not violate attorney client privilege with the city.
