Should Medical Marijuana Dispensaries Be Protected From Government Seizures? (H.R. 262)

What is H.R. 262?

(Updated August 12, 2020)

This bill would make it illegal for the federal government to seize the assets of people who own and operate medical marijuana dispensaries in compliance with state and local laws. Included in this bill’s definition of assets would be titles and deeds, property improvements, and ownership interests in the land itself.

The introduction of this bill is in response to the Department of Justice (DOJ) having threatened to file lawsuits against the landlords of medical marijuana dispensaries in the past. The potential lawsuits have in the past caused dispensaries to close and potential new dispensaries were put on hold.

Argument in favor

People who use weed for medical reasons shouldn't have to answer to the government to receive care. States that have legalized medical marijuana or recreational marijuana should be responsible for enforcing their own laws — its not the business of the federal government.

Argument opposed

The federal government has the resources to prosecute dispensaries that abuse the medical marijuana systems, whereas states and municipalities may not have the ability to do anything. Marijuana — medical or not — is still illegal in the eyes of the federal government.

Impact

Landlords, owners, and operators of medical marijuana dispensaries, their customers, and the Department of Justice.

Cost of H.R. 262

A CBO cost estimate is unavailable.

Additional Info

In-Depth:

In 2012, the Department of Justice announced that it was filing charges against Harborside Health Center in Oakland, California for serving medical marijuana patients and violating federal law. The City of Oakland filed a countersuit against the DOJ citing that Harborside was compliant with state and local laws, but a federal judge dismissed the suit for lack of standing, because the City does not own Harborside’s building. If Harborside loses its case, its owners will be faced with asset forfeiture and the business will be shut down.

The threat of asset seizure by the federal government would seem to run contrary to the Obama administration’s stated policies towards the medical marijuana industry. The “Cromnibus” spending bill that was passed into law at the end of 2014 prevents the federal government from spending money to prosecute medical marijuana dispensaries and patients that operate within state laws.

While that shift in policy will be welcome news in the 23 states that allow medical marijuana — four of which have legalized recreational marijuana — it is unclear what change if any this will have for the dispensaries that the DOJ is after.

Media:

Sponsoring Rep. Barbara Lee (D-CA) Press Release

U.S. News & World Report

Huffington Post

NORML (In Favor)

Toke of the Town (In Favor)

Mother Jones (Context)

(Photo Credit: Dank Depot)