In Huntington Beach, California, a landlord received a fine of over $150,000 because he allowed a cannabis dispensary to operate from his property. Yes, the use and sale of marijuana is legal in the state of California, but that doesn’t mean that it is legal in every city. Individual cities must regulate and restrict or prohibit according to their own discretion and laws. So, of course, it is important when leasing land to a cannabis operation, that you know the exact laws and regulations…not only for your state, but for your city and county as well.

Do not forget that the use, possession, sale or processing of marijuana is illegal, under federal law. Under the Controlled Substances Act, marijuana is classified as a Schedule 1 substance. Additionally, under another federal law known as the Crack House Statute, it is considered a felony to knowingly open, lease, rent, use or maintain any property or venue for the purpose of manufacturing, distributing, or using any controlled substance.

Under the Obama administration, the federal government avoided prosecutions and generally ignored the federal statutes against the cannabis industry. It is currently unclear whether the Trump era or future administrations will uphold the same tactics.

As it stands, because of the federal laws, a land owner is liable to have their property seized under civil forfeiture laws. So if you choose to lease your land to a marijuana grower, be aware and make an informed decision.