DOJ Admits Legalized Cannabis Fuels Tourism In Bid To Dismiss Industry Lawsuit Challenging Fed Prohibition

The Department of Justice (DOJ) made a bold assertion in a court filing on Friday: state cannabis legalization has bolstered tourism. This claim forms part of the DOJ’s strategy to seek dismissal of a lawsuit brought by leading cannabis companies challenging federal prohibition against state-sanctioned cannabis activities. 

Why It Matters

The DOJ’s filing presented on Friday in the U.S. District Court for the District of Massachusetts brings to light part of the department’s reasons behind its intervention. This acknowledgment, reported by Marijuana Moment, highlights a rare instance of the federal government recognizing the economic benefits of cannabis legalization, particularly in tourism.

“It is rational to conclude that the regulated marijuana industry in Massachusetts fuels a different kind of marijuana-related interstate commerce: marijuana tourism,” the DOJ filing says, implying a direct impact on commerce between states and therefore justifying federal oversight under the Constitution.

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Cannabis Companies Leading The Charge

At the heart of this legal battle is a lawsuit against U.S. Attorney General Merrick Garland led by big players from the cannabis industry, including Verano Holdings VRNOF, Ascend Wellness AAWH, TerrAscend TSNDF, Green Thumb Industries GTBIF, Eminence Capital, Poseidon Investment Management and Massachusetts-based firms such as Canna Provisions and Wiseacre Farm.

These companies argue that the federal government’s stance on cannabis hampers their business operations despite compliance with state laws. Their efforts are supported by notable legal representation, including litigator David Boies, known for his role in high-profile cases ranging from political to civil rights issues.

Implications For Cannabis Policy And Enforcement

As the DOJ points out, the Controlled Substances Act’s application to state-legal cannabis activities falls within Congress’s authority under the Commerce Clause, challenging the plaintiffs’ assertions. Furthermore, the filing references the Supreme Court’s precedent in Gonzales v. Raich, reinforcing the federal government’s capacity to regulate interstate commerce affected by state-legal cannabis operations.

Furthermore, the DOJ contended in January that courts should refrain from intervening in the DEA’s cannabis rescheduling process, urging the dismissal of the lawsuit by underscoring the importance of respecting administrative procedures and awaiting regulatory decisions.

With 38 states and Washington D.C. having legalized cannabis for medical or adult use, the outcome of this ongoing legal saga could set the stage for future enforcement practices and influence the ongoing debate around cannabis rescheduling.

Also Read: DEA Comes Out Of The Shadows To Ensure Cannabis Rescheduling Process Is Not Being Done Under ‘Shroud Of Secrecy’

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