Cannabis Law – What Does It Mean For Business Lawyers?

Cannabis Law covers legal provisions related to the cultivation, sale and use of marijuana (Cannabis sativa, Cannabis indica or Cannabis ruderalis). Cannabis plants contain chemical compounds known as cannabinoids that produce psychoactive effects for users consuming recreational cannabis; THC in particular gives this sensation. With an ever-evolving industry such as marijuana’s fast growth rate poses numerous challenges to business lawyers in order to provide their clients with accurate advice.

State laws vary, but most permit up to six plants per household to be grown for personal consumption, with no more than 2.5 oz of cannabis being possessed by individuals at one time. Adult-use cannabis may be purchased from stores authorized by their state to sell it; cannabis producers are subject to up to 25% taxes on sales while cities and towns can levy an additional 3% surcharge on cannabis producers.

The law protects those with prior convictions, with licenses expected to be issued for cultivators, processors and retailers by next summer. Localities can create regulations around dispensaries and facilities as well as how cannabis can be consumed publicly in public spaces; however they cannot block delivery services or prevent people from driving while impaired.

Federal law still outlaws cannabis for any purpose, yet numerous attempts at reclassification under the Controlled Substances Act have failed. Regardless, President Donald Trump has shown willingness to work closely with states on finding solutions for cannabis legalization.

The Strengthening the Tenth Amendment Through Entrusting States Act, introduced by Representatives Dave Joyce (R-OH), Lori Chavez-DeRemer (D), Brian Mast (R), Earl Blumenauer (D), and Troy Carter (D) would align federal policy with states which have chosen to decriminalize or legalize cannabis use.

This legislation seeks to address racial disparities in cannabis criminalization. In New York City, black residents are arrested at much higher rates than their white counterparts for possessing small quantities of the drug; under this proposal millions in taxes would be diverted towards programs which combat these inequities.

Maine’s residency requirement is currently being litigated in federal court, with the First Circuit Court of Appeals serving as an arbiter on this matter. At stake is whether Maine’s residency requirement violates the Dormant Commerce Clause, which prevents states from discriminating against interstate commerce. A ruling by this court could have far-reaching ramifications; its results could affect other states who have implemented similar restrictions and even force governments to stop prohibiting certain industries altogether – with an anticipated ruling expected by 2021.

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