Sessions appointment puts legal marijuana industry on hold
The trend toward popular approval of medical marijuana and recreational legalization continues steadily forward. A total of 28 states, including New Jersey, have approved or implemented medical marijuana programs, and eight states and Washington, D.C. have approved sale and adult use of non-medical marijuana. In large part, industry expansion over the last several years has been made possible through lenient enforcement of the federal prohibition against growth, sale and use of marijuana. However, fears of a federal reversal by President Trump and Attorney General Jeff Sessions are causing concern within the legal marijuana industry.
Fears Stoked by Uncertain Federal Policy
During the presidential campaign, President Trump stated on several occasions that he believed the individual states should make decisions regarding marijuana legalization within their borders. Voters appeared aligned with this position, and marijuana provisions included on ballots in November passed almost without exception. However, President Trump appeared to contradict himself by nominating Mr. Sessions as Attorney General. Mr. Sessions has historically taken strident anti-marijuana positions and did not further clarify his position during or since his confirmation hearings, stating only that if Congress supported legalization of marijuana, it should pass a law to “change the rules.” The future of federal policy regarding the legal marijuana industry is, therefore, unclear. As a result, previously motivated investment and business participants have adopted a wait-and-see attitude regarding the legal marijuana industry. This hesitation will likely persist as long as the federal policy towards the industry remains unsettled.
Congressional Cannabis Caucus Formed
Uncertainty regarding federal policy has led to the formation of a Congressional Cannabis Caucus by a bipartisan group of federal lawmakers. The group hopes to validate the nation’s emerging cannabis industry and develop a harmonious understanding between the states and federal officials. Rep. Dana Rohrabacher (R-Calif.), a founding member of the caucus, expressed hope that Sessions would not balk against Trump’s state’s rights policy. Along with Rohrabacher, other caucus co-founders include Earl Blumenauer (D-Ore.), Jared Polis (D-Colo.), and Don Young (R-Alaska). Rohrabacher previously pioneered the critical Rohrabacher-Farr amendment, a spending provision that bars the Justice Department from prosecuting a state’s legal medical marijuana businesses. The provision, however, must be approved annually and is set to expire in April.
New Jersey Still Moving Forward
In New Jersey, state lawmakers favoring marijuana legalization are on alert but are proceeding with their efforts. Sen. Nicholas Scutari (D-Union) is planning to introduce a bill to legalize recreational use, and although he admits to concern about Session’s appointment, he has not paused his timeline. Sen. Scutari is relying on the Trump administration to follow Trump’s campaign position of autonomy for the states. Senate President Stephen Sweeney has previously stated that he intends to ensure legalization of adult recreational use of marijuana after the departure of Governor Christie in 2018, calling legalization a “game-changer” for New Jersey’s economy that could give rise to as much as $300 million a year in sales tax revenue.
Federal and New Jersey policies regarding marijuana legalization are in heavy flux. Individuals and businesses interested in the legal marijuana industry will need to remain well-informed about related developments going forward in order to accurately assess the potential risks and rewards associated with industry participation.
This article is a part of a series covering the potential for marijuana legalization in the United States, specifically New Jersey. For more on this topic, check out:
Legalizing Retail Sale & Recreational Marijuana Use In New Jersey – Lessons From Colorado
Applying for a Medical Marijuana Dispensary License in New Jersey
Will Legislature Pass Proposed Amendment to the Compassionate Use Medical Marijuana Act?
Do you have any questions? Would you like to discuss the matter further? If so, please contact me, Dan McKillop, at 201-806-3364.
Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
