Columbia City Holistic Health filed suit at the end of September alleging that the city’s taxing and regulation of medical marijuana businesses — as well requiring them to obtain business licenses — is unlawful because the industry is still illegal under federal law. Therefore, the plaintiffs say, the city doesn’t have the power to regulate it.
Douglas Hiatt, the longtime medical marijuana attorney who is representing the shop in the suit, said this is an issue that has come up since the passage of I-502, which made recreational marijuana legal throughout Washington state.
Read Annie Zak’s “Seattle medical marijuana shop sues the city for regulating pot”: http://www.bizjournals.com/seattle/blog/health-care-inc/2015/10/seattle-medical-marijuana-shop-sues-the-city-for.html