Marijuana in the Courts

(Spring 2016) In January, a U.S. District Judge threw out a lawsuit seeking federal approval for the establishment of a credit union to serve Colorado’s marijuana industry. Lawyers for the Federal Reserve stated that allowing marijuana-based businesses to access the nation’s banking system poses too many risks. They further claimed that, since marijuana is still illegal at the federal level, monies garnered through marijuana sales should not be allowed into the central banking system.

Late last year the federal government also counseled the Supreme Court to refrain from making a decision on a lawsuit filed by Nebraska and Oklahoma over Colorado’s legalization of recreational marijuana. The neighboring states charge that they are having issues and costs protecting their borders from the escalation of marijuana traffic coming from Colorado. Nebraska and Oklahoma seek to reverse Colorado’s marijuana system, saying that legalization of recreational marijuana is not constitutional, places a burden on them, breaks interstate commerce laws and violates the Controlled Substances Act.

In response, Colorado requested that the suit be thrown out. Amid the controversy, the Supreme Court asked the Obama Administration’s opinion on the case. Solicitor General Donald B. Verrilli filed a brief with the Supreme Court stating that if the court accepted the case, it would overstep its jurisdiction. Verrilli also warned that the Supreme Court typically does not get involved in suits such as this unless there is an issue between the states themselves. In this case, however, Oklahoma and Nebraska have brought suit against the actions of private citizens breaking federal law.

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