{"id":3192,"date":"2021-07-21T22:29:00","date_gmt":"2021-07-21T22:29:00","guid":{"rendered":"https:\/\/socal.law\/?p=3192"},"modified":"2022-06-21T20:37:35","modified_gmt":"2022-06-21T20:37:35","slug":"the-sphinx-on-skunk-justice-thomas-speaks-out-on-the-inconsistent-enforcement-of-federal-cannabis-prohibition","status":"publish","type":"post","link":"https:\/\/socal.law\/the-sphinx-on-skunk-justice-thomas-speaks-out-on-the-inconsistent-enforcement-of-federal-cannabis-prohibition\/","title":{"rendered":"The Sphinx on Skunk: Justice Thomas Speaks Out(!) on the Inconsistent Enforcement of Federal Cannabis Prohibition"},"content":{"rendered":"\n<p>They say that war makes for strange bedfellows.&nbsp; As it turns out, the war on drugs is no exception.&nbsp; In a recent opinion from the United States Supreme Court, conservative stalwart Justice Clarence Thomas rebuked the federal government\u2019s \u201chalf-in, half-out\u201d stance on state-legal cannabis, and strongly implied that said approach was untenable from a federalist perspective.&nbsp; This criticism of federal drug policy from the right\u2014rather than the left\u2014could be another omen that more cultural conservative objections to state-legal cannabis are yielding to federalism and economic concerns and could also signal a future bipartisan action to provide safer harbor to legal cannabis businesses.<\/p>\n\n\n\n<p>In&nbsp;<em>Standing Akimbo, LLC v. United States<\/em>, 594 U.S. __ (2021), the Supreme Court, on June 28, 2021, denied certiorari to a medical cannabis dispensary in Colorado attempting to prevent disclosure of certain company records sought by the IRS.&nbsp; The dispensary was accused by the IRS of impermissibly using 280E of the Internal Revenue Code to deduct business expenses; as the law stands now, cannabis businesses, because they deal in a federally illegal substance, can only deduct the costs of goods sold.&nbsp;<\/p>\n\n\n\n<p>However, in so doing, Justice Thomas took the opportunity to wag his finger at the inconsistency of federal enforcement of the illegality of cannabis: \u201c[T]he Federal Government\u2019s current approach to marijuana bears little resemblance to the watertight nationwide prohibition that closely divided Court found necessary to justify the Government\u2019s blanket prohibition in&nbsp;<em>Raich<\/em>.\u201d&nbsp;&nbsp;<em>Id.<\/em>&nbsp; A known advocate for federalist principles, he went on to note that \u201c[i]f the Government is now content to allow States to act \u2018as laboratories\u2019 \u2018and try novel social and economic experiments,\u2019. . . then it might no longer have authority to intrude on \u2018the States\u2019 core policy powers . . . to define criminal law and to protect the health, safety, and welfare of their citizens.\u2019\u201d&nbsp;&nbsp;<em>Id.<\/em>&nbsp;(quoting&nbsp;<em>Gonzales v. Raich<\/em>, 545 U.S. 1, 42 (2005) (O\u2019Connor, J., dissenting)).&nbsp;<\/p>\n\n\n\n<p>Justice Thomas\u2019s references to&nbsp;<em>Raich&nbsp;<\/em>(and Justice O\u2019Connor\u2019s dissent therein) is unsurprising given his own dissenting opinion in that case, in which he voiced similar concerns of federal commerce clause power overreach.&nbsp;&nbsp;<em>Raich<\/em>, 545 U.S. at 57 (Thomas, J., dissenting).&nbsp; In&nbsp;<em>Raich<\/em>, the majority held that the federal government had power under the commerce clause to regulate state-legal intrastate cannabis\u2014that is, cannabis that is grown, distributed, and consumed within a state where it is legal.&nbsp;&nbsp;<em>Id.&nbsp;<\/em>at 22.&nbsp;<\/p>\n\n\n\n<p>Justice Thomas opined that intrastate regulation in that context went beyond the federal government\u2019s commerce clause powers, in that cultivation and consumption of medical cannabis entirely in California was not \u201ccommerce\u201d nor interstate.&nbsp;&nbsp;<em>Id.<\/em>&nbsp;at 59.&nbsp; Moreover, although the majority substantially relied on&nbsp;<em>Wickard v. Filburn<\/em>, 317 U.S. 111 (1942) for the proposition that intrastate commerce that has a \u201csubstantial effect\u201d on interstate commerce is within Congress\u2019 regulatory power, Justice Thomas agreed with Justice O\u2019Connor\u2019s criticism of the majority\u2019s reliance on&nbsp;<em>Wickard<\/em>.&nbsp; In Justice O\u2019Connor\u2019s dissent, she noted that, unlike&nbsp;<em>Wickard<\/em>, where the Court was presented with economic studies documenting the effects of personal intrastate wheat cultivation on the interstate wheat industry at large, there was no actual evidence that the small-scale medical cultivation and consumption by appellants had any \u201csubstantial effects\u201d on interstate commerce.&nbsp;&nbsp;<em>Id.&nbsp;<\/em>at 53-54 (O\u2019Connor, J., dissenting);&nbsp;<em>id.&nbsp;<\/em>at 67 (Thomas, J., dissenting).&nbsp; For his own part, Thomas criticized the majority\u2019s apparent use of the Necessary and Proper Clause to hold that exercising federal police powers over intrastate legal cannabis cultivation was \u201cnecessary\u201d to avoid a \u201cgaping hole\u201d in the Controlled Substances Act,&nbsp;<em>id.&nbsp;<\/em>at 21, reasoning that there was no evidence before the Court to suggest that failing to regulate intrastate cannabis cultivation and use would result in an inability to control interstate drug trafficking,&nbsp;<em>id.<\/em>&nbsp;at 63 (Thomas, J., dissenting), a criticism he alluded to in&nbsp;<em>Standing Akimbo<\/em>.&nbsp; 594 U.S. at __ (\u201cA prohibition on intrastate use or cultivation of marijuana may no longer be necessary&nbsp;<em>or&nbsp;<\/em>proper to support the Federal Government\u2019s piecemeal approach.\u201d).&nbsp;<\/p>\n\n\n\n<p>Indeed, these statements\u2014from an eminent conservative, no less\u2014could be a wake-up call for activist litigation to challenge the ruling in&nbsp;<em>Raich<\/em>, or for Congress to act to provide some measure of legalization or safe harbor to state-legal cannabis operators.&nbsp; As I have&nbsp;<a href=\"https:\/\/www.dinsmore.com\/content\/uploads\/2017\/06\/expert20federal-state20marijuana2004_21_17.pdf\">written previously<\/a>, even if an impact litigant were to challenge&nbsp;<em>Raich&nbsp;<\/em>on its own rationale\u2014without delving into the more academic discourse of Thomas\u2019s dissent\u2014such a challenge might bear fruit.&nbsp;<\/p>\n\n\n\n<p>In reaching its final holding that Congress had a rational basis for concluding that intrastate cannabis cultivation would have a \u201csubstantial effect\u201d on its ability to regulate interstate cannabis commerce, the Court in&nbsp;<em>Raich<\/em>&nbsp;explicitly premised its decision upon (1) difficulties distinguishing between state-legal cannabis and illegal cannabis grown elsewhere and (2) \u201cconcerns about diversion [of state-legal cannabis] into illicit channels.\u201d&nbsp; 545 U.S. at 22.&nbsp; As more and more states legalize cannabis in some fashion\u2014<a href=\"https:\/\/www.cannabisbusinesstimes.com\/page\/marijuana-legislative-map-cbt\/\">36 states<\/a>&nbsp;have legalized adult-use cannabis, medical cannabis, or both\u2014both of points one and two become weaker and weaker.&nbsp; That is, as to point one, as legal cannabis packaging becomes more regulated and sophisticated, the visible difference between legal cannabis and illegal cannabis becomes more and more obvious.&nbsp; As to point two, as more and more states legalize, it becomes less and less likely for legal cannabis to be \u201cdiverted\u201d into illicit channels.&nbsp; For example, nearly the entire Pacific bloc of states\u2014California, Oregon, Washington, Nevada, Arizona, and Colorado\u2014have legalized medical and adult-use cannabis.&nbsp; Leaving aside state law prohibitions, legal cannabis moved throughout this region is very unlikely to result in \u201cdiversion\u201d of legal cannabis \u201cinto illicit channels.\u201d&nbsp;<\/p>\n\n\n\n<p>Although whether this shot across the bow of the federal government\u2019s cannabis enforcement regime will result in or motivate any lasting change\u2014either judicially or legislatively\u2014remains to be seen, the cannabis industry will likely view this statement of support from a somewhat unexpected source as a moral victory.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>They say that war makes for strange bedfellows.\u00a0 As it turns out, the war on drugs is no exception.\u00a0 In a recent opinion from the United States Supreme Court, conservative stalwart Justice Clarence Thomas rebuked the federal government\u2019s \u201chalf-in, half-out\u201d stance on state-legal cannabis, and strongly implied that said approach was untenable from a federalist perspective.\u00a0 This criticism of federal drug policy from the right\u2014rather than the left\u2014could be another omen that more cultural conservative objections to state-legal cannabis are yielding to federalism and economic concerns and could also signal a future bipartisan action to provide safer harbor to legal cannabis businesses.<\/p>\n","protected":false},"author":8,"featured_media":3756,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,62,37],"tags":[57],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cannabis Prohibition Inconsistencies - Gupta Evans and Ayres<\/title>\n<meta name=\"description\" content=\"Justice Clarence Thomas rebuked the federal government\u2019s \u201chalf-in, half-out\u201d stance on state-legal cannabis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/socal.law\/the-sphinx-on-skunk-justice-thomas-speaks-out-on-the-inconsistent-enforcement-of-federal-cannabis-prohibition\/\" \/>\n<meta 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don\u2019t compare or compete, everybody will respect you.\u201d \u2013 Lao Tzu"}]}},"featured_image_src":"https:\/\/socal.law\/wp-content\/uploads\/2021\/07\/pexels-ekaterina-bolovtsova-6077189-scaled.jpg","featured_image_src_square":"https:\/\/socal.law\/wp-content\/uploads\/2021\/07\/pexels-ekaterina-bolovtsova-6077189-scaled.jpg","author_info":{"display_name":"Jake Ayres","author_link":"https:\/\/socal.law\/author\/jake-ayres\/"},"rbea_author_info":{"display_name":"Jake Ayres","author_link":"https:\/\/socal.law\/author\/jake-ayres\/"},"rbea_excerpt_info":"They say that war makes for strange bedfellows.\u00a0 As it turns out, the war on drugs is no exception.\u00a0 In a recent opinion from the United States Supreme Court, conservative stalwart Justice Clarence Thomas rebuked the federal government\u2019s \u201chalf-in, half-out\u201d stance on state-legal cannabis, and strongly implied that said approach was untenable from a federalist perspective.\u00a0 This criticism of federal drug policy from the right\u2014rather than the left\u2014could be another omen that more cultural conservative objections to state-legal cannabis are yielding to federalism and economic concerns and could also signal a future bipartisan action to provide safer harbor to legal cannabis businesses.","category_list":"<a href=\"https:\/\/socal.law\/category\/news\/\" rel=\"category tag\">All Blog Posts<\/a>, <a href=\"https:\/\/socal.law\/category\/cannabis\/\" rel=\"category tag\">Cannabis<\/a>, <a href=\"https:\/\/socal.law\/category\/corporate-litigation\/\" rel=\"category tag\">Corporate Litigation<\/a>","comments_num":"0 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