Lucky Leaf marijuana store to remain closed pending another hearing

Pasco’s only marijuana retailer, shut down less than a week ago by city officials, will remain closed for the time being after a Franklin Superior Court judge ruled the city has the right to prohibit such businesses while the case winds through the courts.

About 20 people supporting David and Shilo Morgan, owners of Lucky Leaf, filled the courtroom during a preliminary hearing, many wearing green clothing or green-beaded necklaces.

The Morgans’ attorneys agreed that the couple operated the store without a business license from the city, but the city wouldn’t allow them to file for one, limiting their options, and they had otherwise followed all the protocols required to run a licensed marijuana retail store.

While the city has banned all marijuana businesses, the state’s marijuana law, recently revised by Legislature, no longer provides cities the same authority to ban marijuana retailers, they said.

“If (the revised law) hadn’t come into place, we wouldn’t be standing here,” said attorney Nicolas Vieth.

City attorney Leland Kerr said it’s the obligation of everyone to follow the law and the Morgans were frequently warned of the consequences if they opened their shop.

“Mr. Morgan ignored all of that and instead forged ahead,” Kerr said.

Judge Alex Ekstrom noted that a full decision would come in a future hearing and that it isn’t his job to make a policy decision.

However, language in the law indicates that cities still have the authority to prohibit marijuana businesses, he said, and extended the temporary restraining order to keep the shop from serving customers.

“The jurisdiction retains its police power even after the state provides a license,” Ekstrom said.

Lucky Leaf, located in the King City neighborhood in northeast Pasco, opened its doors on July 25. The store received its state license July 9 from what’s now the state Liquor and Cannabis Board after trying two other locations in Pasco.

The Morgans considered other locations, but settled on outlying King City to be far away from exclusion zones identified by the city. City officials forced the store to close on Aug. 19.

Along with arguing that revised state law no longer permits cities to ban marijuana retailers, Pasco officials also failed to show how the business would damage the city and ignored other remedies, such as fining the business if it remained open, the Morgans’ attorneys said.

“If the city wants to fine them $250 a day, go ahead,” said attorney John Ziobro.

State law is clear that cities have the right to ban all types of marijuana businesses, Kerr said, adding that language that would have prevented that was struck from the amended law before it was changed by the Legislature.

The city sees the matter as a health and safety risk, Kerr said, noting that marijuana contributes significantly to the occurrence of crime and violence, and that allowing Lucky Leaf to continue operating threatens to upset law and order.

“If you open this door for a period of time, the city is helpless to stop others from doing the same,” Kerr said.

The section of the revised state law describing how tax revenues would be distributed to cities and counties, except to those that ban marijuana growers, processors and retailers within their borders, indicates the state never intended the law to stop cities from banning retail businesses, Ekstrom said.

The Morgans and their attorneys declined comment following the hearing. They and the city are due back in court next week.

This story was originally published August 24, 2015 at 10:11 PM with the headline "Lucky Leaf marijuana store to remain closed pending another hearing."