Last week, several medical marijuana storefronts in Washington State, which voted to legalize recreational marijuana last year, were raided by the Drug Enforcement Agency, according to the Wall Street Journal. While a person familiar with the raids noted that they stemmed from 2011 concerns about illicit activity and money laundering, some state officials are worried about the future of the marijuana market since it is still illegal at the federal level, and have asked the Justice Department for clarification:
“We would welcome clarity from the federal government on how they expect to address Washington state’s emerging recreational system,” said Brian Smith, a spokesman for the Washington State Liquor Control Board, which has been charged with regulating legal pot. “With a lack of clarity, you’re always operating in an area of risk.”
The Justice Department has been fairly tight-lipped on its future plans for Washington State and Colorado, telling the Wall Street Journal that the “department is continuing to review the legalization initiatives passed in Washington and Colorado.”
This news isn’t helpful for entrepreneurs who either have launched or plan to launch recreational marijuana facilities. Just another way the federal government is creating uncertainty for small business owners.
(Correction: This post originally stated incorrectly that recreational marijuana stores were raided. In fact, medical marijuana stores were raided, which rattled recreational merchants-to-be)
Jimi, unless and until currency and banking issues are addressed, the federal government will have a big, wide, open door through which it can enter into any of the "many participating states."
Starting with the National Bank Act of 1864 and later with the formation of the Federal Reserve and a federal (fiat!) currency, states no longer have authority to issue state-based currency or to regulate federally-chartered financial institutions. Thus, if we wish to purchase something using that federal currency, then federal banking law prevails. And, a state is not allowed to establish its own currency, which is something that the nation addressed while exiting the Civil War and doing away with Confederate currency.
I'm not an attorney, just a simple part-time layperson state-level lawmaker. I don't know for certain what the solution is, but I do know that the issue of currency and banking versus the will of the majority of voters in Colorado is a very real train wreck waiting to happen here. It dates back to the secession of many states and the reentry of those states into the Union.
Some may consider rebellion or even secession to be the answer. I do not. While I opposed legalization, it passed and is now in our state Constitution… the same Constitution that I have sworn to uphold… so I will. I believe that a state law here in Colorado under the Tenth Amendment cannot nullify the federal currency or establish a Colorado currency. A more productive answer would seem to be advocating that the federal government remove marijuana as an illegal/illicit drug, which would then allow banks to bank that business using the federal currency. – Note the reference to "money laundering" in the original CPP post… that's where the currency and banking issues come into play.
I would love to see a State Trooper/ Marshal , arresting a DEA Agent trying to bust a dispensary. It would make a point , Marijuana in legal in this state, is legal. The feds need to stay out of the states business.
Maybe Washington and Colorado need to do what Missouri and Kansas did (in regards to gun laws). Pass a law making it illegal for federal agents to come in their state and try to enforce fed laws that differ with state laws. I know it probably won't stand up in fed court, but at least those states are drawing that proverbial line in the sand.
How is this not a Tenth Amendment issue?