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.
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
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!
