While more than a half the U.S. population now lives in states that have legalized marijuana for either medical or recreational use, the drug remains banned at the federal level.
Responsible cannabis businesses are contributing to the economy and to their communities, and theyre here to stay, said Aaron Smith, executive director of the National Cannabis Industry Association. Now Congress and the new administration should work to protect patients, treat small businesses fairly and respect the will of voters in more than half the states in this country.
Voters in Massachusetts, California, Maine and Nevada approved ballot initiatives Nov. 8 to legalize marijuana for adult recreational use. Recreational pot has now been legalized in eight states, while 28 states have approved medical marijuana. Those states account for nearly 60 percent of the nations population.
The Obama administration has largely taken a hands-off approach regarding marijuana policy, choosing not to enforce federal criminal laws against marijuana businesses that operate in accordance to their states laws.
In 2014, the U.S. Department of the Treasury issued guidelines for banks to provide services to state-licensed marijuana retailers, requiring them to file reports certifying that pot dispensaries they do business with are in compliance with state law. Later that year, the Department of Justice announced it was instructing federal prosecutors not to pursue cases against banks that deal with marijuana companies that were legal at the state level.
Despite that guidance, pot remains banned under the federal Controlled Substances Act, making most banks reluctant to provide services to the marijuana industry. As a result, most marijuana dispensaries operate only in cash, raising concerns about security.
Bankers are in the business of managing risk, and a wink-wink-nod-nod is not good enough, said Bruce Spitzer, director of communications for the Massachusetts Bankers Association.
Its still early to predict whether President-elect Donald Trump will continue the Obama administrations approach to pot, he added.
One big question mark going forward with the new president and the new administration is whats going to happen to the Department of Justice, Spitzer said. Are they going to say you can look the other way? It may be changing with a new AG, or if we have another administration in four years.
Without a statutory change, he said, the dichotomy between state and federal laws will remain.
What really needs to happen is for Congress to get involved, and that doesnt look like its happening soon, he said.
Under the federal Controlled Substances Act, marijuana is classified as a Schedule I drug an illegal drug with no medical benefit.
In January, a federal judge ruled against a credit union in Colorado that sued the Federal Reserve for the right to provide checking accounts to marijuana dispensaries. U.S. Judge R. Brooke Jackson rejected the suit due to pots illegal status under federal law.
I regard the situation as untenable and hope that it will soon be addressed and resolved by Congress, the judge wrote in the ruling.
In Massachusetts, state chartered banks which are federally insured must each weigh the risk of serving marijuana businesses.
The federal government sets strict guidelines for financial institutions and the banking of marijuana-related businesses, including recommendations for conducting due diligence on potential customers, account oversight and the filing of federal reports such as Currency Transaction Reports and Suspicious Activity Reports, Division of Banks spokesman Chris Goetcheus said in an email. Providing these financial services in adherence with federal guidelines is the decision of each institution.
The NCIA advocates for Congress to take actions to open access to banking services for marijuana businesses operating in compliance with state laws. The cannabis trade group is also calling for marijuana to be removed from the federal Controlled Substances Act.
The results of the marijuana votes on Election Day, Smith said, represent a tipping point in national marijuana policy.
A 1,000-member cannabis trade association, the NCIA estimates the legal U.S. marijuana industry is valued at $6.7 billion and projects it will balloon to a $21.8 billion industry by 2020.
In Massachusetts alone, industry analysts project the statewide marijuana market to be worth $1.1 billion by 2020, according to a report from New Frontier Data and ArcView Market Research.
The passage of the measure in the face of opposition from leading state politicians and the influential Catholic Church underscores the strength of popular support for this issue, New Frontier Data CEO Giadha DeCarcer said. Legalization in Massachusetts will also add fuel to the growing legalization debate in other northeastern states.
News Moderator: Katelyn Baker
Full Article: Legal Conflicts Loom Over Marijuana Policy
Author: Gerry Tuoti
Contact: 781-433-8282
Photo Credit: Marc Vasconcellos
Website: Wicked Local Cambridge
