October 21, 2012
"But in spite of all the euphoria, there is a cloud hanging over the cannabis industry in Colorado, and it's not marijuana smoke. It's the federal Controlled Substances Act, which still lists marijuana as a Schedule One drug, every bit as dangerous as heroin, with no medical benefit. And the Justice Department is not happy with the wide-scale commercialization of Colorado cannabis. Sam Kamin is a law professor at the University of Denver, and one of the reigning experts on the subject.
Steve Kroft: In Colorado, you can grow it if you're licensed and you can sell it if you're licensed to people who have a card to buy it.
Sam Kamin: Yes, but--
Steve Kroft: And all of those people are violating federal law.
Sam Kamin: Exactly. And that's the really strange thing is that we have this, you know, sort of hundreds of dispensaries servicing as many as 100,000 people and every transaction that occurs is a federal crime and every -- all the manufacturing of the product, from the growing of it to the making of the products and everything else, all of those are serious federal crimes.
Steve Kroft: Even though the state of Colorado has passed a constitutional amendment-- amendment allowing it--
Sam Kamin: Exactly.
Steve Kroft: --sanctioning it.
Sam Kamin: Exactly. Right? The federal government sees it as a serious crime. They say, "We know that California and 16 other states, the District of Columbia -- we know you guys think it's medicine. It's not. We hear that you want to legalize it. You can't. We can't make you undo your statutes, but we can sure come in and prosecute your citizens that are violating federal law."
Steve Kroft: But they haven't.
Sam Kamin: But they haven't.
And there's a reason for that. Some might call it the triumph of the marketplace. The federal government doesn't have enough manpower to shut down the medical marijuana business in Colorado or prosecute all the purveyors and patients. And the voters don't want it.
Boulder County District attorney Stan Garnett says it's virtually impossible to impanel a jury on a marijuana case here, let alone get a conviction.
Stan Garnett: What we deal with is what prosecutors call jury nullification, where juries say, "I know what the law is, but I'm not going to follow it." This community has made it very clear that criminal enforcement of marijuana is not something they want me to spend any time on.
Steve Kroft: It is really an issue here?
Stan Garnett: It's really not an issue.
And that is more or less the position of Justice Department in Washington. Deputy Attorney General James Cole has told U.S. attorneys not to waste resources prosecuting patients or caregivers that are in clear compliance with state medical marijuana laws.
James Cole: Our focus is really on keeping it away from children. Our focus is keeping it out of the hands of organized crime. Our focus is making sure that people aren't, through marijuana dispensaries, using it as a pretext to do large-scale interstate drug dealing. These are the areas where we're really trying to focus.
Steve Kroft: So the message is, if you're licensed in the state of Colorado and you follow the law, then you should be okay.
James Cole: Each case is going to rise and fall on its own unique facts. Any of that is still in violation of the Controlled Substances Act of the federal law. We're not interested in bothering people who are sick and are using it in the recommendation of a doctor. We are concerned with people who are using it as a pretext to become large-scale drug dealers.
Steve Kroft: So it sounds like the federal government is tolerating it.
Sam Kamin: It is tolerating it. And at the same time is below the surface, trying to make it very difficult for these folks. It's doing it through banking regulations. If you talk to dispensary owners, one of the things that they will lament is, no one will do business with us.
The Justice Department has let it be known if financial institutions do business with medical marijuana centers, they could be at risk for civil or criminal prosecution under the Controlled Substances Act or federal money laundering statutes. It's made it difficult, if not impossible for dispensaries to get loans, open company bank accounts or process patients' credit cards.
Sam Kamin: It can't stay like this. Either we have to have settled expectations that this is a federal crime, the federal government's not going to tolerate it. Or the federal government is going to let states like Colorado regulate it, tax it, experiment with it. To have it exist in both worlds simultaneously is unsustainable. We can't have a multimillion dollar industry built on criminal conduct.
A federal appeals court in Washington D.C. is currently hearing a case that could remove marijuana from the list of the most dangerous drugs, and into a category that would allow it to be prescribed by doctors. On the political front, the referendums in Colorado and Washington state to legalize marijuana for recreational use are considered too close to call."