Is the Deparment of Justice going to get tough on marijuana?

Question

Today will be very important to see what the US DOJ will do on marijuana enforcement. So far they have made it public they will be scrapping all the memos and guidance that has kept prosecutors from prosecuting people in states where state policy differs from federal policy.

No announcement yet, if there will be an immediately crack down or not.

Another announcement is expected later today.

No announcement yet, if there will be an immediately crack down or not.

Another announcement is expected later today.

Russell Brazil · Answer

Yes. Im surprised it took them this lomg actually. If I were a property owner in say Colorado with a marijuana based business renting from me, or tenants that openly use, I would be very nervous. I dont think many realize though how anti-marijuana the Attorney General is.

Moderator Note: Please keep the discussion focused on how this relates to real estate. Political discussions are not permitted other wise.

Jeffrey Stasz · Answer

This would set up a constitutional fight in the courts. The Roberts Court has signaled repeatedly that it views the current breadth of the interstate commerce clause. For example, Roberts upheld the ACA as a tax rather then a lawful regulation of interstate commerce.

Also. Anyone who thinks a 7 plus billion industry is going down without a fight is insane. MJ is one of the hottest industries for institutional capital in the country, so Sessions picking a fight with GoldmanSachs is not going to go the way he thinks.

The only thing this might do is force congress to reclassify MJ from a Sched. 1 Substance.

Matt M. · Answer

All I was saying is that the FEDs wouldn't even have to go through the CF process. This article highlights the FEDs letter campaign to shut down some shops that I mentioned before.

https://www.denverpost.com/2012/01/12/feds-colorado-medical-marijuana-dispensaries-within-1000-feet-of-a-school-must-close/

Matt M. · Answer

It won't be civil forfeiture(see my earlier post). The FEDs will just send a letter like last time to close the shops down.

Jay Hinrichs · Answer

Account Closed  free market may dictate this.. MJ is already in price crash mode.. and indoor grow is expensive.. its not the big money maker people think as prices crash like whats happened here in PDX>

not sure in other areas.. but that is the case here.. early in make some good money of course but I think with CA coming in .. and the great out door grow capability here we could see this end up being just another ag play.. not to mention banks won't finance it or bank it

Account Closed · Answer

@Matt M.   Some other people disagree.

http://cannabusinesslaw.com/2017/08/civil-asset-fo...

Account Closed · Answer

@Fred Heller   I have noticed the people that want a replacement for Jeff Session have said this is the latest reason.  Until I see leadership behind an actual bill to stop it, then I will expect it to happen.

I guess I will go on record as saying I do not think it is appropriate for people in congress to say they do not want a law enforced uniformly in all states.  If they do not like it, they can certainly introduce a bill to change it.

Account Closed · Answer

@Jeffrey Stasz  Well... President Trump is on record as saying he is in favor of Civil Asset Forfeiture in all drug cases.  He has already made fun of Texas politicians who has raised constitutional concerns.  I do not think there are enough votes in congress to change the law.  There certainly are not enough to override a veto or filibuster.

If the property has been sold off there is ZERO chance a law change would give the money back.

Account Closed · Answer

If the feds come in it will be with civil forfeiture.  It would take a while for the federal government to auction off the real estate.

I think it would be about 9-12 months unless they decide to speed up the process.  They can actually do it as fast as they want.  If they lose in court they simply pay the owner what they got at auction for the property.

Bart H. · Answer

That was a different administration.

Not to be political, because I think we need to address this in a consistent manner, either completely legalize it, or completely outlaw it  Opening it up as a cash business on a state by state basis with it still being illegal at the federal level is foolish imo.

but this is something the current administration might go after to rally the base even if the last administration wanted to ignore/minimize enforcement.

Is the Deparment of Justice going to get tough on marijuana?

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