Coffeeshops can be denied permanent license after legally operating for years

Mayors in the Netherlands are allowed to limit coffeeshop operating permits to a period of five years, the country’s highest administrative court ruled on Wednesday. The ruling issued by the Council of State was regarding a case filed by two coffeeshops in Roermond against the municipality.

The city’s former mayor, Rianne Donders (CDA), only approved the operator of Skunk and Sky a permit for five years. The business wanted a permit for an indefinite period. The Council of State ruled in partial agreement with the mayor’s decision, saying that the mayor may grant such a temporary permit in this scenario for reasons of public order and the living environment. In this way, the mayor can reconsider after a number of years whether the permit can be extended, in the context of the public order and living environment situation at that time.

According to European guidelines, a mayor may only limit the duration of operating permits if there is a “compelling reason of public interest” to do so. That is the case here, according to the Council of State. Local residents experience a great deal of nuisance because of the coffeeshops, according to the ruling.

Donders also wanted to put the permit out to tender, so that other candidates could also take over the coffeeshops. According to the rules regarding catering permits, a coffeeshop can be operated indefinitely by the same owner. But if it is considered a “scarce” permit for a coffeeshop, it must be legally be put out to tender, the municipality of Roermond argued.

The Council of State did not agree with that reasoning. “The Council did not say anything about a scarce permit,” a spokesperson for the Council emphasized. “This is something that could possibly be subject to further proceedings later.”

The spokesperson did acknowledge that the Council’s ruling has national consequences. In the context of public order and the living environment, mayors now have the legal precedent to issue a temporary permit, as an alternative to the current indefinite permit.