In the past decade, through referenda and legislative action, states have been enacting laws legalizing recreational or medicinal marijuana. Most recently, voters in Washington and Colorado have, through referenda, passed laws legalizing private possession of up to one ounce of marijuana for recreational purposes. In addition, 23 states have now enacted laws legalizing marijuana for medical use. Medical marijuana laws are not limited to states traditionally thought of as liberal: they have been enacted in states including Arizona and Montana, and Nevada voters overwhelmingly approved an amendment to that state’s constitution allowing the medical use of marijuana. New York is the 23rd, and most recent, state to enact a medical marijuana law; Governor Andrew Cuomo signed the law on July 5, 2014.
However, despite this activity at the state level, under federal law—which applies throughout the country, regardless of state law—possession, sale, and cultivation of any amount of marijuana is a crime. Federal criminal penalties remain harsh: Depending on the amounts sold or cultivated, a life sentence is possible. This patchwork environment presents significant legal challenges to entrepreneurs who seek to take advantage of state laws legalizing marijuana.
