Public opinion on cannabis has changed over a short period. More and more Americans are supporting marijuana legalization.
By Olivia Wathne, Esq. | Legally reviewed by Amber Sheppard, Esq. | Last reviewed July 30, 2024
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Federal prohibition of cannabis forces each state to pass unique cannabis legislation. This has created a tangle of conflicting state and federal laws. Sometimes the differences in states' cannabis laws are drastic. Often, the goal of these laws is to maintain public health. The other goal is to prevent the unlawful distribution of marijuana to minors. Violating these laws can result in significant challenges for business owners.
Cannabis business owners need to understand their state's cannabis laws to succeed. A cannabis attorney can help you navigate your state's cannabis transportation laws.
See here for a state-specific guide on current state laws for medical marijuana use.
Disclaimer: Cannabis regulations in your state may have changed recently. Be sure to check with your state government or an attorney.
As of publication, 33 states and the District of Columbia broadly permit the use of medical cannabis, and most other states permit limited use of cannabis for certain medical conditions. Currently, 11 states broadly permit the recreational use of marijuana. Legislatures in nine states are expected to vote on new legalization bills in 2020.
States that broadly permit medical cannabis |
States that broadly permit recreational cannabis |
States that could see new cannabis legalization in 2019 |
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However, the federal government has not taken any steps toward legalization. In fact, marijuana is currently considered a Schedule I drug under the federal Controlled Substances Act of 1970, meaning there is no acceptable use under federal law, and the government believes there is a high potential for marijuana abuse and dependency.
That means federal agencies like the Drug Enforcement Administration (DEA) could prosecute individual marijuana users, growers, or retailers for violating federal law, even in states where the activities are legal.
Notwithstanding, the DEA has said individuals and small marijuana cooperatives or collectives are a low priority. Instead, the federal government more commonly targets large-scale marijuana growers and dispensaries, especially if business activities cross state lines.
An industry responsible for generating $10.4 billion in the U.S. in 2018 and creating more than a quarter-million jobs is illegal under federal law. But that's not stopping investors, who put more than $10 billion into cannabis in North America in 2018.
While investors bet on cannabis, lawmakers are also taking note. As public opinion continues to evolve on the issue (two out of three Americans now support legalizing cannabis), a growing number of states are deciding to make cannabis legal.
Many states have legalized both medical and recreational marijuana. The cultivation, possession, and sale of cannabis products remains illegal at the federal level. Federal law enforcement still considers the possession of marijuana a misdemeanor offense. The seriousness of the offense may depend on your criminal record. Another factor is how many ounces of cannabis are found in your possession. You can operate a cannabis business while protecting yourself from federal criminal charges.
This is your state-by-state guide to laws relating to medical marijuana dispensaries. Some states may only allow the medical use of marijuana. Other states may allow the sale of both medical and recreational cannabis. The legal sale of medical cannabis for qualifying conditions is available in these states.
The debate surrounding the legalization of marijuana still exists and varies across jurisdictions. Some states allow individuals to grow cannabis plants for personal use. Other states ban marijuana altogether. Cannabis law statistics and surveys in the United States are here.
Marijuana was first grown across the United States as industrial hemp. Then President Nixon signed the Controlled Substances Act into law. This classified marijuana as a Schedule I drug. Many states have decriminalized marijuana. Dispensaries sell marijuana products ranging from edibles to cannabis concentrates.
The risks are great for cannabis entrepreneurs in today's regulatory climate. The rewards are great as well. The cannabis industry continues to grow as more states legalize adult-use cannabis. It is important to determine which type of cannabis business you want to open. For example, different regulations may apply to cannabis growers versus cannabis dispensaries.
Some states only allow terminally ill patients 21 years of age or older to use medical marijuana. Ohio allows medicinal use of cannabis products for Parkinson's, epilepsy, and other illnesses. Other states, such as New York, allow caregivers to buy medical cannabis for medical marijuana patients. There are nine states where marijuana is illegal but allow low THC, high cannabidiol (CBD) products for medical purposes.
Marinol is a prescription drug containing a synthetic form of tetrahydrocannabinol (THC). In 1985, the FDA approved Marinol. Marinol treats qualifying medical conditions, such as muscle spasticity related to multiple sclerosis. Marijuana is different than Marinol because it contains cannabinoids as well as THC. Learn about its legality, its use, and how it compares to medical marijuana.
Different states have different regulations for cannabis delivery businesses. For instance, it is illegal in Massachusetts to deliver cannabis for recreational use. Yet, retail locations can sell it. Learn the specific laws of your state before going into this type of business.
Investors have plenty of opportunities to become part of the budding cannabis industry. Cannabis investing and financing have unique risks and rewards.
Transporting marijuana products presents several legal issues. Under federal law, it is illegal to transport marijuana across state lines. States also have strict policies to consider.
The cannabis industry is one that business owners and entrepreneurs need to enter with as much knowledge and guidance as possible.
Assistance from an attorney well-versed in cannabis law is crucial in order to protect business ventures and to stay out of trouble with the federal government.
Cannabis is a complex area of law. Start by learning what you need to form and operate a cannabis business:
Then, protect your rights by calling a business lawyer familiar with cannabis laws. Many attorneys offer free consultations.
Restrictive federal laws and ever-changing state laws make the marijuana industry a dynamic environment for cannabis business owners. Before you open a cannabis business, make sure it is legal in your state, and follow your state laws. Once you decide on an LLC, S-corp, or C-corp business, you can register your business entity online using DIY business formation forms.
