August 9, 2012

Using Landlords to Strike at Medical Marijuana Retailers

Reuters reports that federal prosecutors in California are trying to wipe out the state’s medical marijuana industry without turning pot shop owners and sick people into felons.  Although the California Legislature legalized medical marijuana sales in 1996, they still violate federal drug trafficking laws, thus putting sellers and their customers at risk of serving jail time and paying stiff fines.

Making novel use of a civil forfeiture statute traditionally used to seize property and assets from drug traffickers, prosecutors have sent out hundreds of letters in the past six months warning commercial landlords that they must either evict tenants who sell medical marijuana or risk losing their property. For-profit storefront shops, especially those (1) opposed by the cities where they operate or (2) located near schools or playgrounds, are the Justice Department's favored targets. 

Reuters estimates that the U.S. medical marijuana industry generates $1.7 billion in annual sales.