Marijuana dispensaries and businesses are prohibited in the City of Garden Grove.  Since June 19, 2015, the Police Department has conducted 19 raids of illegal marijuana dispensaries pursuant to warrants during which cash and marijuana have been seized.  Some cash is being held by Police as evidence for possible prosecution.  However, approximately $87,717 has been deposited into the City’s trust account relating to closed cases from over one year ago.  

The cash that has been deposited into the City’s trust account is considered abandoned because at the time the cash was seized no one at the dispensary being investigated under warrant was willing to claim ownership or sign a receipt for it.  Per Government Code Section 50055, money held by the City that remains unclaimed for a period of one year where the owner is unknown may be transferred by the City Council to the General Fund.  No publication in the newspaper or other notification is required.  

The transfer of funds from the City’s trust account relating to closed cases will result in the addition of $87,717 to the General Fund, which will then be used to conduct additional enforcement related to illegal marijuana dispensaries in the City. 

It is recommended that the City Council:

• Authorize the Finance Director to transfer $87,717 in abandoned marijuana dispensary seizure funds related to closed cases from the City’s trust account to the General Fund and appropriate it for FY 2016-17.