The cannabis industry is experiencing rapid expansion, necessitating legal services from lawyers. Attorneys need to advise clients on the myriad issues surrounding it – including tax laws and regulations applicable, regulatory changes that keep arising in this space such as whether marijuana should be treated as either a drug or plant and how that relates to federal prohibition against its use.
23 states, two territories and the District of Columbia now permit adult recreational cannabis use; with Rhode Island and Connecticut as recent additions. Their legislation establishes a regulated market for cannabis sales to adults aged 21 or over for personal use only; prohibit driving under the influence of marijuana with penalties similar to drunk-driving laws; as well as permitting its cultivation for commercial sale.
Although this move represents an important advance in public policy, it raises many questions, such as how cannabis should be distinguished from other drugs and alcoholic beverages, whether its cultivation should be permitted, how stronger preparations of the drug (e.g. hashish) should be treated, whether cannabis-related offences should be criminalized in different jurisdictions with different penalties applied, how users and producers will be distinguished as well as what constitutes commercial transactions; whether licenses should be required of cannabis businesses and how cannabis-related activities can fit into existing business practices or activities related to cannabis businesses incorporated.
As part of efforts to address these concerns, the United States House of Representatives passed the Secure and Fair Enforcement Banking Act of 2021 (SAFE Banking Act), providing protections for financial institutions that service cannabis-related businesses. Unfortunately, Senate action has yet to take place on this bill, and in its absence many banks and credit unions have begun restricting their activities with cannabis-related companies in order to comply with federal law.
Current legality for low THC, high CBD products is legal in 37 states. Studies have demonstrated these medically approved items’ ability to alleviate symptoms related to chronic and severe conditions like nausea, vomiting, seizures and neuropathic pain; additionally they can even help alleviate chemotherapy-induced side effects.
At a time when cannabis legalization is becoming mainstream, federal prohibition must give way to state regulation as an effective means to safeguard consumer safety, preserve communities and make sure funds spent on cannabis go where it should. The STATES Act would create an alignment of federal and state policies by enabling each state to regulate its own cannabis markets while redirecting federal law enforcement efforts against cartels and gangs who threaten our national security – we urge the Senate to consider this important piece of legislation shortly.