Marijuana’s Appellate Achievement; A Temporary Triumph
On August 16, 2016 the United States Court of Appeals for the Ninth Circuit unanimously ruled that the federal government may not prosecute medical marijuana businesses which comply with state laws. The ruling decided the outcome of ten California and Washington cases. The Court of Appeals held that in all ten cases, the Justice Department must show that each defendant had violated its state’s marijuana regulations before the Department could proceed with federal criminal prosecutions. Consequently, the Court of Appeals remanded all of the cases back to the appropriate district courts.
This decision affirms the Rohrabacher-Farr amendment, which bars the Justice Department from using its budgeted funds to prosecute marijuana businesses that meticulously follow their state’s marijuana regulations. However, the decision is not a complete cannabis cinch. The opinion, penned by Judge Diarmuid F. O’Scannlain, cautions that until the federal government legalizes marijuana or adopts a permanent policy which protects state law compliant entities from prosecution, marijuana businesses are not completely safe. The opinion further warns that “Congress could restore funding tomorrow, a year from now, or four years from now, and the [federal] government could then prosecute individuals who committed offenses while the government lacked funding.” These warnings are critical, as unless it is extended, the Rohrabacher-Farr amendment will expire in September 2016.
While the Court’s decision is not a perfect protection for pot, many marijuana experts agree that it is an important step in the right direction. The decision gives more protection to compliant marijuana businesses than the Rohrabacher-Farr amendment alone. Further, the Appellate Court’s opinion indicates that the Justice Department will lose if it attempts to appeal this decision.
Though marijuana’s federal future remains unclear, one thing is certain; marijuana businesses must fully comply with all of their state’s regulations to protect themselves from federal prosecution. Compliance platforms, such as PayQwick, have already helped numerous state licensed marijuana businesses in the Ninth Circuit remain fully compliant and avoid federal prosecution. In addition to its business-to-business electronic payment processing platform, armored car cash pickup service and consumer smartphone app and loadable cards, PayQwick’s compliance assessment programs help PayQwick business users remain in business and operate smoothly. By incorporating standards from the Cole Memo, Bank Secrecy Act/Anti Money Laundering Control Act protocols, the FinCEN Guidelines and each state’s marijuana regulations, these programs ensure that PayQwick business users comply with all applicable laws, regulations and guidelines and help them secure bank accounts. Most importantly, through PayQwick, these businesses can continue to remain compliant, just as the Ninth Circuit Appellate Court has instructed.
