Rejected for a coveted cannabis retail license in an affluent California wine country town, a small marijuana retail chain is alleging in a lawsuit that political contributions from competing applicants “tainted” the process.

Mercy Wellness’ legal claims against the Healdsburg City Council and Councilor Ariel Kelley come as Kelley is in a competitive three-way race for a California state Assembly seat.

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But the situation also highlights the inherent complications with “limited-license” jurisdictions, where elected officials in communities that cap the number of MJ businesses allowed can choose who enters the $34 billion U.S. marijuana industry.

Cities or counties with such license caps can be found throughout the United States, including older markets such as California as well as newer entrants such as Maryland,

Read full article on Marijuana Business Daily