Colorado's Marijuana Sales Under Fire From All Angles

Loading...
Loading...

Although Colorado's voters elected to allow the sale of recreational marijuana within their state, opponents of marijuana legalization are taking the new legislation to court in an effort to shut down the growing industry.

With marijuana still considered a criminal substance under federal law, the cases have drawn national attention as most expect the outcomes to set a precedent for the industry as a whole in the US.

Controlled Substances Act

Using the federal Controlled Substances Act and the Constitution's Supremacy Clause, lawmakers in neighboring Nebraska and Oklahoma claim Colorado's decision to allow marijuana sales is illegal.

Both states say their law enforcement officials have struggled as marijuana, deemed illegal in Nebraska and Oklahoma, crosses the border frequently.

The argument claims that federal drug laws trump state laws, making Colorado's weed industry a criminal offense.

However, many see Nebraska and Oklahoma's claims falling through when they make it to court.

Legal experts say that although the federal government is able to dictate drug policy, it doesn't have the power to make states to enforce it.

Related Link: Marijuana Remains The 'Wild West' Of Investing

Racketeer Influenced and Corrupt Organizations Act

Another group is also taking aim at Colorado's pot sales, but from another angle.

Colorado property owners are using the federal Racketeer Influenced and Corrupt Organizations Act in a lawsuit claiming that pot-dispensaries are bringing down their property values.

The RICO act allows business and property owners to sue an illegal operation if it is harming their interests. In this case, the homeowners claim that RICO applies as marijuana is considered illegal under federal law.

Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Posted In: PoliticsTop StoriesGeneralColoradomarijuanamarijuana reform
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...