San Rafael store searched by state cannabis authorities
State authorities executed a search warrant and confiscated merchandise Tuesday at a San Rafael business suspected of illegal cannabis sales.
Officers detained a Hemp Bros employee during the search but made no arrests, said David Hafner, a spokesperson for California Department of Cannabis Control.
The employee, who was held for questioning in an officer’s car, declined to comment. Store management did not answer an email inquiry on Tuesday afternoon.
Hemp Bros is near the corner of Fourth Street and Lincoln Avenue. The business advertises itself online as “San Rafael’s exclusive hemp retailer.” The business had a sidewalk sign that directed visitors to its upper-floor location.
San Rafael prohibits cannabis retail businesses in storefronts, said Micah Hinkle, a city official. He said that community members filed complaints to the city and the state about the Hemp Bros store, which prompted the state investigation.
Kevin McInerney, a state cannabis control commander, said this is his first operation in San Rafael.
“In most instances, our focus is on larger operations of organized crime, but since San Rafael did reach out to us for assistance we were happy to provide it,” he said. “We partner with cities and counties across the state when they have an issue but aren’t sure how to deal with it.”
They typically don’t arrest employees but instead seek the person in charge of the operation, McInerney said.
Investigators with the California Department of Tax and Fee Administration joined the operation and searched for financial records.
“CDTFA’s investigation and inspection units are collaborating with the Department of Cannabis Control on enforcement efforts to ensure that business locations are properly licensed and reporting and paying appropriate tax and fees,” the agency said in an email.
The Hemp Bros’ small retail room displayed an electronic menu for cannabis products and contained an ATM. The staff only accepts cash.
San Rafael police officers did not participate in the search, but a city code enforcement officer observed the operation. He declined to comment.
McInerney said his agency will file a report on the operation and submit evidence to the Marin County District Attorney’s Office to review before prosecutors decide whether to file criminal charges.
“They have complete, undisputed, total authority to file or not file,” he said.
McInerney said that potential charges include possession of cannabis for sale without a license and possession of cannabis beyond what is legally allowed. He added there could be money laundering charges based on what investigators find.
Hafner said the total value of confiscated cannabis was not available late Tuesday afternoon.