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A War on Progress

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[dropcap class=”kp-dropcap”]O[/dropcap]n Jan. 4, just three days after California opened its newly regulated cannabis market, United States Attorney General Jeff Sessions announced his decision to rescind the 2013 Cole Memo. The repealment of the Obama-era protections for states that have legalized cannabis is outrageous, economically unsound and a move criticized by many.

We expect the federal government to respect the rights of states and the votes of millions of people across America, and if they won’t, Congress should act.”

The Cole Memo was a Department of Justice cannabis-specific guidance memoranda that instructed United States attorneys to focus their limited resources on eight enforcement priorities including preventing distribution to minors, preventing revenue from the sale of cannabis from getting into the hands of drug cartels and preventing violence and the use of firearms in the cultivation and distribution of cannabis. Although the Cole Memo did not affect cannabis’ status as a Schedule I substance under the Controlled Substances Act, it has provided some level of assurance for the 29 states that have adopted some form of legalized cannabis.

While the news of Sessions’ decision to rescind the Cole Memo is unsettling, the reality is the new memo does little to change how the Department of Justice will pursue lawful cannabis businesses. It does not specifically encourage U.S. prosecutors to open enforcement actions against cannabis business. Instead, the Jan. 4 memo restates the Department of Justice’s current position, that U.S. attorneys have the discretion to determine whether their limited resources are best used to enforce federal law against cannabis crimes in states that have legalized cannabis.

Unfortunately, this discretion may create varying results across the country and may even provide different enforcement standards within a given state. U.S. Attorney Adam Braverman, of the Southern District of California, has expressed his commitment to enforce the laws enacted by Congress and stressed that the cultivation, distribution and possession of cannabis remains a violation of federal law.

Sessions has a history of pursuing a crusade to bring back the failed “War on Drugs.” Unfortunately, Sessions is vastly out of touch with the will of voters. According to Politico Magazine, nearly 70 percent of Americans believe in allowing some form of legalized cannabis.

Sessions’ decision has not gone unnoticed. There has been tremendous bipartisan pushback against this action. Politicians in states that have legalized cannabis have been outspoken about the benefits that the regulated cannabis industry has brought to their states. Benefits have included the creation of more than 100,000 well-paying jobs and diverting hundreds of millions of dollars in sales of cannabis from drug cartels to new tax revenue for infrastructure, education and law enforcement.

Notably, California representatives have drawn a hard line against Sessions’ decision. Congresswoman Nancy Pelosi has stated, “Attorney General Sessions, your unjust war against Americans who legally use marijuana is shameful and insults the democratic processes that played out in states across the country.” Likewise, Lt. Gov. Gavin Newsom responded saying, “Jeff Sessions has destructively doubled down on the failed, costly, and racially discriminatory ‘War on Drugs,’ ignoring facts and logic, and trampling on the will of California voters. Have no doubt—California will pursue all options to protect our reforms and rights.”

We expect that Sessions’ decision will have a limited impact in California in the immediate future. In response to Sessions’ decision, the Bureau of Cannabis Control Chief Lori Ajax, has stated, “We expect the federal government to respect the rights of states and the votes of millions of people across America, and if they won’t, Congress should act. Regardless, we’ll continue to move forward with the state’s regulatory processes covering medicinal and adult-use cannabis.”

That said, there certainly may be some real impacts that may form due to Sessions’ recession of the Cole Memo. Most likely Sessions’ decision could discourage more traditional investors who were just getting more comfortable with the cannabis industry. Additionally, the memo could have a chilling effect on other professionals offering their much-needed services to the cannabis industry.

It is unclear whether Sessions truly hopes U.S. attorneys will crackdown on the state licensed cannabis businesses or simply hopes to disrupt the cannabis industry with uncertainty. Nevertheless, Sessions has a lot to learn about our industry and the courageous people who make it up. The cannabis industry has become accustomed to wavering politicians and has blossomed in a state of ambiguity. We have come too far and will not back down without a fight!

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