Advising the Cannabis Client

Abstract

In his State of the State address, on January 8, 2020, New York State Governor, Andrew M. Cuomo vowed to work with the legislature to legalize the sale and use of recreational marijuana in New York. If Governor Cuomo follows through on his promise, New York will be the twelfth state to legalize recreational cannabis, following Colorado which was the first. With several other states moving in the same direction and with heavy regulation existing in the states that have already legalized the substance, there is significant need and opportunity for attorneys to enter the cannabis industry. There are very good reasons for states to consider legalizing marijuana – In Colorado, alone, tax money received from the state-legal sale of retail and medical marijuana from February 2014 through December 2020 exceeded $1.6 billion – exceeding $387,000,000 in 2020.

Nonetheless, while cannabis remains a schedule I drug under the Controlled Substances Act (“CSA”), any practitioners wishing to take advantage of such opportunities must be keenly aware of the associated risks.

This updated article includes a discussion for lawyers practicing before federal courts and the concern that the local rules of the federal court may not provide the comfort that the state rules of professional conduct may for the practice of law in matters not legal under federal law.