Latest southern Colorado news, weather and sports from FOX21 News

COLORADO SPRINGS, COLO. -- The U.S. Attorney for Colorado sent warning letters to 23 dispensaries that are within a 1,000 feet of a school.  The letter told the stores to shut down or prepare to face the consequences.

The main stipulation is over how close a dispensary can be to a school, and while the feds said 1,000 feet, the city said 400.

So the question is, who's rules do you follow?

"It's frustrating as an American that the federal government has become so pervasive and insidious in business in general and states's rights specifically," Judy Negley, Indispensary owner, said.

Judy Negley is part owner of Indispensary in the 100 block of E. Bijou Street and was notified last Friday that her business and property are too close to a school.

According to the warning letter, "The dispensary is operating in violation of federal law, and the Department of Justice has the authority to enforce the federal law even when such activities may be permitted under state law."

Which means Indispensary, along with 22 others around the state, have 45 days to shut down or face possible criminal prosecution.

But the regulations are a bit fuzzy because while the feds prohibit marijuana stores within 1,000 feet of a school, the city of Colorado Springs prohibits schools within 400 feet.

So, Indispensary is in full compliance with the city. The closest school is Palmer High School which is located about 910 feet away.

"We need to make sure that business people in our locality comply with our rules. We are a home rule city, and therefore the state wouldn't have the right to come down and tell us how to handle the situation," Tim Leigh, Colorado Springs City Councilmember, said.

Colorado U.S. Attorney John Walsh noted in a written statement that many school districts in Colorado have seen a dramatic increase in student abuse of marijuana since the opening of dispensaries in 2010.

But this is a non-issue for the folks at Indispensary.

"The kids at Palmer are way smart enough to know this is a medical cannabis facility and are in no danger of trespassing through two locked doors," Negley said.

Negley said it's discouraging that dispensaries are being attacked on this level.

So, for the next 45 days she's got a choice to make: close or fight the feds.

Marijuana dispensaries that don't comply will be subject to potential criminal prosecution and action by the Colorado U.S. Attorney and the Drug Enforcement Administration.