Question

Although there is a strong trend toward legalization of marijuana at the state level, federal law still prohibits its sale, possession, and use. In your reasoned opinion, what should (or will) become of this federal law in the future?

Answer 1

If you live in a state that legalized medical or recreational marijuana use, it may come as an unpleasant surprise to learn that you are still committing a federal crime by possessing, buying, or selling marijuana. The problem is, despite the liberalization of state laws across the country, federal law still treats marijuana as a controlled substance, just like cocaine or heroin.

This conflict between state and federal law creates a situation where you can be charged with a federal crime for activities that are allowed by your home state, although federal agencies mostly have been reluctant to do so. There are also several ways that federal marijuana laws can affect everyday life decisions, from where you bank to where you live.

Understanding Federal Marijuana Laws

Since the 1930s, federal law has declared the use, sale or distribution of marijuana illegal. Current federal drug laws are contained in the Controlled Substances Act (CSA). The CSA classifies and regulates illegal drugs, and places listed drugs on a schedule according to their medicinal value and potential for abuse.

Under the CSA, marijuana is a Schedule I controlled substance. This designation is reserved for drugs that have a high potential for abuse, lack any medical value, and can’t be safely prescribed. Anyone growing, marketing, or distributing marijuana is likely violating multiple federal laws (but, as noted earlier, it's a matter of enforcement)

You can run into problems with the CSA even if you're not directly involved with the marijuana industry. If you provide services to a business that operates under state marijuana laws, you may also be violating federal law and thus subject to prosecution. So if you run a janitorial service and have a client that operates a dispensary, you may be profiting from illegal drug trafficking.

The CSA also makes it unlawful to “knowingly open, lease, rent, maintain, or use property for the manufacturing, storing, or distribution of controlled substances.” So landlords that have tenants involved in state-permitted
marijuana industry may risk federal asset forfeiture or other criminal fines.

Taxes

If you work in the marijuana industry, you are likely familiar with Internal Revenue Code Section 280E. This law prohibits marijuana businesses from deducting ordinary business expenses such as marketing, training, transportation. What it creates is a federal tax rate of 60 to 90 percent. These businesses can deduct cost of goods sold, so shrewd accounting incorporates many of their expenses into the cost of goods.

Right to Bear Arms

The 9th U.S. Circuit Court of Appeals held that if you have a medical marijuana card you can be prevented from buying a gun. The court held this ban on gun ownership did not violate the Second Amendment since federal law prohibits gun purchases by an "unlawful user and/or an addict of any controlled substance." In 2011, the Bureau of Alcohol, Tobacco and Firearms clarified in a letter that the law applies to marijuana users regardless of their home state’s laws.

Banking

Many banks and credit card companies are reluctant to provide accounts to participants in the marijuana industry for fear of prosecution under the CSA. The U.S. Department of Treasury has issued guidelines on how financial companies can services the industry without violating federal money laundering laws.

Housing

Renters can face eviction even when their marijuana uses is compliant with their state’s law if their lease prohibits illicit drugs. Since federal law states marijuana is a controlled substance, it can be prohibited by your landlord. If you are a section 8 or other federal housing aid recipient, you are not allowed to use marijuana. Violations can lead to a loss of benefits or

It is highly unlikely that fedral law will change due to all the above laws.