Vancouver tries to strip mushroom dispensaries of business licences

Daily Hive

Magic mushroom dispensaries are facing legal challenges from the City of Vancouver, which is taking them to court and holding public hearings to take away their business licences.

Outspoken drug legalization advocate Dana Larsen was the first to raise the alarm publicly, and a lawyer working with several mushroom dispensaries in the city says multiple psilocybin-selling businesses are having the same troubles.

“I expect the result of this is going to be a couple years in court; meanwhile, more places will open,” Larsen said. “I don’t know if they’re going to be proactive like we hope.”

On Sep 26 Vancouver City Council is having a public hearing to decide about cancelling our Mushroom Dispensary business license at 247 W Broadway.

We need public support!

Want to speak in favour of licenses for shroom shops? DM me & I’ll put you in touch with our lawyer. pic.twitter.com/PwTteU6euN

— Dana Larsen (@DanaLarsen) September 24, 2023

Larsen is involved with three dispensaries in Vancouver and is now dealing with a court case where the City alleges the shops have violated business licence terms by selling a controlled substance.

At the same time, there’s a public hearing with City Council scheduled for December, where councillors will decide whether the City is entitled to revoke Larsen’s business licence for selling psilocybin products.

Psilocybin is illegal on a federal level, prohibited under the Federal Controlled Drugs and Substances Act, and there are no business licences available to sell it via the City of Vancouver. Instead, Larsen holds retail and cafe licences for his shops.

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Larsen’s lawyer, Jack Lloyd, confirmed other mushroom dispensaries are also facing challenges with the City. He didn’t disclose how many or which businesses, though, since they have not spoken out publicly like Larsen has.

Shops selling magic mushrooms have been popping up around the city over the last few years, with proponents envisioning a similar path to legalization as cannabis. Longtime Vancouverites will remember the city was rife with dispensaries long before weed was legalized federally.

Daily Hive

Sarah Hicks, Chief Licence Inspector with the City of Vancouver, told Daily Hive there are no regulations in place that allow for the sale of psilocybin products, and the City can’t issue a business licence for a shop to sell them.

“Should the City be made aware of a retailer selling any of these substances or products containing them, they would be subject to enforcement for operating without a valid development permit and/or business licence, which may include orders, fines and/or prosecution,” Hicks said.

When Daily Hive asked the Vancouver Police Department about enforcement back in 2021, the force said the magic mushroom shops weren’t seen as catalysts for violence and were therefore a low priority.

“At VPD, our priority is to investigate and disrupt organized crime groups and violent offenders who manufacture and traffic harmful opioids, like heroin and fentanyl,” Sgt. Steve Addison said at the time.

“While we do not see the same level of violence and life-threatening health complications associated with psilocybin and psilocin, they are still controlled drugs and substances, which means anyone who possesses or traffics them could be arrested and charged.”

VPD has not yet responded to Daily Hive’s request for comment on the business licence issue.

Lloyd says the City is outside its jurisdiction trying to police mushroom shops, saying it’s not a municipality’s job to enforce criminal law. He argues the shops are in line with the terms of a retail business licence, given that no licence for selling psilocybin products exists.

He also argues people who use mushrooms for medicinal purposes, including those with terminal illnesses and mental health problems, deserve to be able to access safe products.

“We hope the City of Vancouver makes the compassionate choice to allow these sick people access to psilocybin in a dignified and reasonable manner,” Lloyd said.

Dana Larsen/Submitted

This all comes at a time when advocates are pushing for psilocybin products to be legalized federally. Health Canada has approved exemptions for certain individuals to take part in psilocybin trials, and Larsen believes we may only be a few short years away from widespread legalization, like what happened with cannabis.

“With mushrooms, Vancouver has the chance to be a leader,” Larsen said. “Instead of engaging in a pointless legal battle and spending money on lawyers for a fight that they’ll lose or will drag on forever.”

The next hearing with the City is scheduled for December 6, and Larsen encouraged anyone who’s been positively impacted by mushroom dispensaries to sign up to speak in favour of allowing them.