Joe Holahan, attorney at Morris, Manning and Martin, breaks down the current state of cannabis regulation in the US and highlights the role captives can play in the industry
In 1996, California voters passed Proposition 215, making California the first US jurisdiction to legalise the cultivation and possession of marijuana for medical purposes. Today, 30 states, the District of Columbia, Puerto Rico and Guam have enacted laws legalising medical marijuana. In addition, ten states have legalised adult recreational use of marijuana and its derivatives in one capacity or another.
Yet marijuana—cannabis—remains illegal under US federal law. Marijuana is a Schedule I drug under the Controlled Substances Act (CSA) of 1970. As such, it cannot be legally prescribed for any reason, with the sole exception being used as part of a federally approved research study. In addition, it is a federal crime punishable by imprisonment to knowingly manufacture, distribute or dispense marijuana.
Featured in the April 18, 2018 edition of Captive Insurance Times.