Council suspends marijuana shop’s license
by Brent Shrum, Kootenai Valley Record
December 16, 2010
The city of Libby is giving a medical marijuana provider 60 days to move out of the city limits.
During a special meeting last Tuesday, the city council voted 4-2 to suspend the business license for The Helping Center, located at 620 California Ave., but to allow a 60-day grace period before the action is enforced. The decision to suspend the license was based on a clause in the city’s business license ordinance that prohibits the issuance of licenses to businesses that violate state or federal law. While marijuana is legal for medical purposes in Montana, it remains banned by federal law.
Council members Bill Bischoff, Barb Desch, Robin Benson and Vicky Lawrence voted in favor of suspending the license while D.C. Orr and Peggy Williams voted against.
The council approved the license for The Helping Center in October, but it was not until later that city officials learned the exact nature of the business, according to Mayor Doug Roll.
"On your business license it was not very specific," Roll told representatives of The Helping Center during last week’s meeting. "There was nothing on there that was ‘medical marijuana.’ It was ‘pain clinic.’"
Based in the Flathead Valley, The Helping Center has outlets in Kalispell, Bigfork and Columbia Falls in addition to Libby. Kevin Moore, co-director of business, argued that it is effectively in compliance with federal law because U.S. Attorney General Eric Holder has announced that federal officials will not enforce marijuana laws in cases where the activity is legal under state law. But whether the law is enforced or not doesn’t mean it’s not still on the books, countered City Attorney Heather McDougall.
"Eric Holder says he’s not going to enforce it; that’s not the same as repealing it," McDougall said. "He can’t repeal it. The legislature has to."
Moore told the council that by not allowing a legitimate business in a visible location, it’s "encouraging other caregivers to be in back alleys dealing out of their car. It’s encouraging the black market."
Lawrence told Moore that even without a business license, The Helping Center could operate outside city limits. Moore said he has a one-year lease on the building and is obliged to honor it.
"I’m a businessman, and I signed that lease," he said.
Moore threatened legal action against the city. He said his attorney is well-versed in the state’s marijuana law and will file an injunction. Moore said he’s already lost money on the business, "but I’ll lose more money if I have to defend my patients."
Moore noted a lawsuit brought by a medical marijuana provider in Helena that argues that the city does not have the authority to regulate such businesses. He suggested the council wait until that case is resolved before making a decision, and he proposed that his attorney should discuss the matter with the city’s attorney.
Orr agreed that the city should wait to see what happens in the Helena case. He said the city should make sure it’s on solid legal ground before taking action. Orr also pointed out that the business license for The Helping Center would need to be renewed at the start of the new year anyway.
"Mr. Moore is saying he wants to negotiate, and we’re taking a stance where we’re just going to bull ahead," Orr said. "And I’m not going to bull ahead."
Lawrence said she didn’t think the Helena case applies to the matter at hand in Libby.
"This is a very different situation, and I don’t think it’s a fair comparison," she said.
In Helena, city officials knew that the business in question was selling marijuana, but waited a year to act, Lawrence said.
Bischoff, who made the motion to suspend the license, said the 60-day grace period will give time to see what happens in Helena.
"If Helena wins, we’re on good ground," he said. "If not, we haven’t caused them any damage. They’re still in business."
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Editor's Note: See the December 14, 2010 edition of the Kootenai Valley Record for the printed version of this story. The Kootenai Valley Record publishes once a week, on Tuesdays, in Libby, Montana. They are a locally owned community newspaper, located at 403 Mineral Avenue in Libby. For in-county and out-of-county subscription information, call 406-293-2424, or e-mail kvrecord@gmail.com.
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