Closure of business premises or coffee shop

Closure of business premises

Administrative closure of business premises is a far-reaching measure that can be taken by government agencies to protect public order, safety or health. This measure can have far-reaching consequences for business operations and those affected. The following explains the legal framework, reasons for closure, procedure and legal protection.

A commercial building can be closed when there is illegal activity such as drug trafficking. Suppose a large-scale hemp farm is discovered by the police in a warehouse. In addition to growing illegal plants, there are serious safety risks such as fire hazards due to illegal electrical installations. Based on the Opium Act, the mayor can decide to temporarily close the premises to prevent further crime and risks to the surrounding area. This measure serves to restore public order and prevent the premises from being used again for illegal purposes.

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What is the legal framework for closing business premises?

Administrative closure of business premises can be based on various legal regulations, including:

The General Administrative Law Act (Awb): this law regulates the procedures for decisions of administrative bodies, including the possibility of objecting to decisions and the method of legal protection.

The Economic Offenses Act (WED): this law may apply when closing business premises in connection with criminal economic activities such as fraud or illegal trafficking.

The Municipal Anti-Squatting Ordinance (Wgk) Act: this law can give municipalities powers to take action against squatting and illegal use of commercial premises.

The General Administrative Order (APV): Municipalities can regulate the use of business premises under the APV, and this ordinance can provide a basis for closure for violations.

What could be a reason for closing business premises?

An administrative closure of business premises can be imposed for several reasons.

  • Health and safety risks: when a premises has serious deficiencies in fire safety, hygiene or other safety aspects, closure may be necessary to ensure the health and safety of employees and bystanders.
  • Illegal Activities: upon evidence of serious illegal activity on the premises, such as drug trafficking, tax evasion or other criminal offenses, the government may decide to close the premises to prevent further nuisance and maintain public order.
  • Nuisance and Nuisance: repeated complaints about nuisances caused by a business, such as noise or environmental pollution, may be grounds for closure if other measures prove ineffective.
  • Violation of Permit Requirements: if premises are being used in a manner that violates permit requirements or zoning laws, a closure may be imposed until the violations are corrected.

What is the procedure for closing business premises?

The procedure for imposing an administrative closure of a commercial property is generally as follows:

  • Determination of violation: the governing body, usually the municipality or another relevant agency, finds that the premises do not comply with laws and regulations or have serious problems.
  • Intent to close: the administrative body sends an intention to close to the owner or operator of the premises. This document contains the reasons for the closure and the deadline for objecting.
  • Submit views: interested parties have the opportunity to submit a view against the intention to close. This gives them the opportunity to present their views and any objections to the closure measure.

After receiving the views, the governing body makes a final decision. This decision is communicated in writing to the parties concerned and includes details of the closure measure, the duration of the closure and any conditions.

Legal protection against closure of business premises

If a decision to close is made, those affected can seek legal protection by following the following steps:

  • Objection: a decision to close may be objected to within six weeks to the governing body that made the decision. The objection must be made in writing and must be well-reasoned.
  • Hearing: during the objection procedure, the governing body may hear interested parties to hear their views before making a final decision.
  • Decision on objection: after the objection procedure, the governing body makes a decision on the objection. This decision may confirm, modify or revoke the original closure.
  • Appeal to the court: if the objection is rejected, the person can appeal to the administrative judge. The administrative judge assesses whether the administrative body acted lawfully and whether the closure was rightly imposed.
  • Appeal: the decision of the administrative law judge may be appealed to the Administrative Law Division of the Council of State.

Closure of coffee shop

The administrative closure of a coffee shop for exceeding its trading quantity is a measure that often gives rise to debate about the consistency and fairness of policies surrounding cannabis. The underlying hypocrisy in these cases stems from a number of contradictions and policy problems that have both legal and societal implications.

The Opium Act sets limits on the amount of cannabis that coffee shops may sell, but enforcement of these rules can be inconsistent. In some cases, coffee shops may be shut down for exceeding the trade quantity, while other shops, possibly with similar violations, face no direct action.

Municipalities have the authority to impose additional rules on coffee shops. These rules can vary from city to city, leading to a situation where coffee shops that comply with local rules can still run into problems because of national legislation that is sometimes difficult to interpret or inconsistent.

The tolerance policy provides a certain degree of tolerance for coffee shops in the Netherlands, but at the same time, strict limits are imposed on the amount of trade. This ambiguity creates a tension between what is officially allowed and what is tolerated in practice, which can lead to unfairly punishing coffee shops that actually fall within tolerance.

Closures of coffee shops often have a direct economic impact on the owners, employees and the local economy. In some cases, coffee shops are closed for exceeding the trade quantity, while the market and demand for cannabis remain. This can lead to undesirable side effects such as illegal sales and a worsening of the social situation, undermining the original goals of the law. Closing coffee shops may lead to stigmatization of the entrepreneurs and customers of these establishments.

In a coffee shop closure, legal representation is crucial.

Need a lawyer closing business premises?

A closure of business premises is a drastic measure with significant consequences for business operations. It is therefore advisable to seek legal counsel.
Kötter, L'Homme & Plasman Lawyers are ready to assist you.
For questions or support, please contact our office via email at info@klpadvocaten.nl or by phone during business hours at 020-6731548.

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