The Los Angeles Times writes

A Pacific Beach medical marijuana dispensary has been hit with a $1.8-million penalty for operating outside of San Diego’s zoning regulations, the largest fine against a dispensary in city history.

That more than doubles the total amount of dispensary-related judgments the city has collected to date.

 On Nov. 20, San Diego County Superior Court Judge Timothy Taylor ruled against SoCal Holistic Health Inc. and the company’s president, Ryan Murphy. Besides the penalty for operating illegally, Taylor also issued a permanent injunction against the dispensary and its president, prohibiting them from having a dispensary anywhere within city limits.

“The judges are sending a message, and so are we: Marijuana dispensaries can either follow the law or they will pay a high price for their actions,” City Atty. Jan Goldsmith said in a statement Wednesday.

The dispensary will also have to reimburse the city’s code enforcement division $1,065 in investigation costs and pay a currently undetermined amount of litigation costs. A spokesman for the city attorney’s office said the dispensary waived its right to appeal.

The report goes on to say

The penalty against SoCal Holistic Health comes as the city’s medical marijuana industry shifts from dispensaries that skirted regulations and faced government crackdowns to ones that meet a long list of conditions and satisfy legal requirements before they are awarded a city permit and can open as legitimate businesses.

Last year, the City Council passed an ordinance authorizing as many as 36 dispensaries in San Diego, with no more than four in each of the nine council districts. Land-use regulations limit dispensaries to commercial and industrial zones, and require at least 1,000 feet between any two dispensaries, as well as between dispensaries and schools, playgrounds, libraries, child-care facilities, youth centers, parks and churches.

The law also requires dispensary owners to obtain conditional use permits and pay fees ranging from $8,000 to $24,000. The permits are good for five years.

So far three dispensaries have opened with the city’s blessing. The most recent, Southwest Patient Group, opened in November in San Ysidro and follows permitted dispensaries that opened in Otay Mesa and the Midway District in March and August, respectively. Others have received permits and are expected to open soon.

Full LA TImes Report :