Risk Or Reward? California's Move Towards Interstate Cannabis Trade

California attorney general's office has embarked on a quest to understand the possible legal consequences of allowing interstate cannabis commerce in the context of federal prohibition.

What Happened: Documents obtained by Marijuana Moment reveal that three prominent organizations representing local governments have conveyed their assurance that interstate weed commerce would not expose California to a "significant risk" of federal enforcement.

This assertion comes in the wake of Oregon and Washington State's legislation that allows interstate cannabis trade agreements, pending federal guidance or reform.

Unlike its counterparts, California's approach affords Gov. Gavin Newsom the autonomy to forge similar agreements, contingent upon assurances from the state's attorney general that the move won't legally endanger the state.

Matthew Lee, the general counsel to the Department of Cannabis Control (DCC) believes interstate cannabis commerce poses no federal legal jeopardy for California. 

"We feel very confident that the longer and more carefully you look at this issue, the more likely you are to agree with the conclusion that we reached," said Lee. "They need to make sure that they’re being very, very careful looking at all the angles... dealing with novel, complex areas of law where the stakes can be quite high."

The California Cannabis Authority (CCA), an advocate for cannabis industry oversight and taxation, posits that the Controlled Substances Act (CSA) wouldn't preempt California's strides toward interstate cannabis commerce. "Because the express language of the CSA ‘preserves state laws except where there exists such a positive conflict that the two laws cannot consistently stand together, the implied conflict analysis of obstacle preemption appears beyond the intended scope of [the CSA].'” 

Rural County Representatives of California (RCRC) and the California State Association of Counties (CSAC) jointly addressed skepticism surrounding the issue. 

"How can a state permit interstate commerce that Congress itself has forbidden? Similar skepticism greeted California’s early efforts to authorize commercial cannabis activities in the first place," they said.

Based on legal analysis and practical scenarios, they view the prospect of federal CSA enforcement against California as remote.

Read more here at Marijuana Moment.

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Image by El Planteo