AG Sessions – DOJ Abrogates Cole Memo

AG Sessions – DOJ Abrogates Cole Memo

AG Sessions - DOJ Abrogates Cole Memo
AG Sessions – DOJ Abrogates Cole Memo

AG Sessions – DOJ Abrogates Cole Memo  In a seismic shift, will announce Thursday that he is rescinding a trio of memos from the Obama administration that adopted a policy of non-interference with marijuana-friendly state laws, according to a source with knowledge of the decision.

While many states have decriminalized or legalized marijuana use, the drug is still illegal under federal law, creating a conflict between federal and state law.
The main Justice Department memo addressing the issue, known as the Cole Memo” for then-Deputy Attorney General Jim Cole in 2013, set forth new priorities for federal prosecutors operating in states where the drug had been legalized for medical or other adult use. It represented a major shift from strict enforcement to a more hands-off approach, so long as they didn’t threaten other federal priorities, such as preventing the distribution of the drug to minors and cartels.
The memo will be rescinded but it’s not immediately clear whether Sessions will issue new guidance in its place or simply revert back to older policies that left states with legal uncertainty about enforcement of federal law.

Opponents of legal marijuana on Thursday celebrated the long-awaited action.

“It’s pretty clear that the federal policy is going to be that U.S. attorneys will have discretion and the industry can no longer hide behind the Cole memo and say that they’re protected,” said Kevin Sabet, who worked in Obama’s Office of National Drug Control Policy and now runs the anti-legalization group Smart Approaches to Marijuana. “There is an unknown here because we don’t know how this is going to be implemented.”

It was not immediately clear when Sessions will formally revoke the agreement, authored in 2013 by then-Deputy Attorney General James Cole.

The move is likely to put the federal government in conflict with states where marijuana is legal for recreational use. California on Monday became the sixth state to legalize recreational marijuana. Massachusetts and Maine are set to join those states later this year.

“It’s really the beginning of the story, not the end,” Sabet said.

Legalization has led to a booming marijuana business in some states, where wealthy growers and even hedge funds have invested millions of dollars in production and sales. Some industry analysts peg the North American cannabis market at $10 billion in annual sales.

We are watching the issue carefully and will follow up and update everyone that shares our concerns over the insane policy.

Author: abizcannabis

Managing Director & CEO of integrated transactional financial advisory, tax, and technology consulting firm - aBIZinaBOX Inc New York, Chicago, and OaklandCPA.CITP.CISM.CGEIT.CGMAExpertise with: Alt. Investments/Private Equity, Real Estate, Professional Services, CA Cannabis, Tech Start-Ups and Distressed Assets/DebtTechnology Certifications including:Advanced & High Complexity Cloud Integrator AICPA PCPS, CAQ,, IMTA, CITP ISACA CGEIT, CISMState CPA Societies in California, Florida, Illinois, New York and TexasExpertise with Regulatory Compliance - US - HIPAA, FINRA, SEC Rule 17(a)(3)/(4), eDiscovery, FINCEN - EU- EBA, ESMA, EIOPA UK - BoE, PRA, FCA