federal state marijuana

Since federal and state governments have different rules, understanding marijuana laws in the United States can be confusing. Many states have made marijuana legal, but the federal government still classifies it as an illegal drug. As a result, there is a lot of uncertainty for people who use marijuana, as well as for businesses that sell it. Let’s look at the differences between federal vs. state marijuana laws to help you navigate the confusion.

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How Does Federal Law Classify Marijuana?

Under federal law, marijuana is a Schedule I drug. With that, the government does not recognize its medical use and deems it as a high risk for abuse. According to the federal government, it is included in the same class as heroin and LSD. Due to that, growing, selling, or possessing marijuana is illegal under federal law. 

Also, federal law makes it illegal to move marijuana between states, even if both states have legalized it. Federal agencies, such as the Drug Enforcement Administration (DEA), are designated to enforce these laws.

However, over the years, the federal government has not actively enforced these laws in states that have legalized marijuana. But, marijuana is still illegal on federal property like national parks and military bases. Anyone who breaks these laws could face fines or jail time.

What Do State Marijuana Laws Stipulate?

Despite the federal government ruling it illegal, many states have made their own decisions about whether to allow marijuana for medical or recreational use. 

In states with medical marijuana laws, people who have certain health problems can use cannabis if their doctor approves it. These states set up special programs to make sure marijuana is grown, sold, and used safely.

On the other hand, in states with recreational marijuana laws, adults (usually 21 and older) can legally buy and use marijuana with no medical condition needed. In most cases, it is treated in the same way as alcohol or tobacco. These states also have systems to regulate how marijuana is sold, taxed, and kept safe.

Currently, 38 states have legalized marijuana for medical use, and 23 states have legalized it for recreational use. 

Challenges Between Federal and State Laws

Many state marijuana laws directly conflict with the Constitution’s Supremacy Clause. Under that, any federal laws have more precedence over state ones. The federal government has the right to enforce these laws even in states where marijuana usage is legal. But in 2013, the Cole Memo stated the federal government wouldn’t interfere with state marijuana laws if states followed certain rules. For example, states had to make sure it wasn’t sold to minors or trafficked across state lines. 

In 2018, the federal government canceled this policy. In turn, that left the decision to enforce marijuana laws up to local federal prosecutors.

Issues for Those Who Have a Marijuana Business

With a conflict between state and federal laws, many businesses have experienced problems. For example, since marijuana is illegal under federal law, most banks will not want to work with these entrepreneurs. Setting up a bank account, cashing checks, and applying for a loan are almost impossible. 

There are also tax problems for these businesses. Under federal law, businesses that deal with illegal drugs cannot deduct normal business expenses like rent, salaries, or utilities from their taxes. This means they often pay much more in taxes than others.

Find Out More About How Federal Law Affects Marijuana Businesses

The differences between federal vs. state marijuana laws can be confusing for both those who want to partake in its usage and those who want to pursue a business venture. While many states have legalized marijuana for medical or recreational use, the federal government still considers it illegal. 

If you have a cannabis-based business in Oklahoma, you will want to know about the latest laws and regulations. At Brune Law Firm, we are here to help keep you compliant in the state. Call (918) 372-3021 to schedule an appointment for a consultation.