As any cannabis advocate knows too well, the federal law in the United States continues to prohibit the sale, possession and consumption of the good herb. In states that have legalized recreational or medical-use cannabis, the federal law doesn’t do much to interfere; the Department of Justice has stated that it will not go above state law to prosecute cannabis-related crimes. However, that doesn’t mean federal law has no impact whatsoever. Cannabis industries around the country feel the pressure of federal regulations, which limit how they can procure funding, how they can serve customers, how they can find products and more. Undoubtedly, one of the most prominent concerns regarding the federal status of weed is the prohibition on interstate travel with cannabis. Neither businesses nor individual consumers can cross state or national borders in possession of any amount of cannabis without risking severe criminal penalties from the federal government.
Until recently, business owners and consumers alike believed the only way to change the rules regarding interstate travel and commerce was to change federal law — but that isn’t necessarily the case. One cannabis advocacy group is introducing a new option that could revolutionize the cannabis industry as we know it.
The Alliance for Sensible Markets
In truth, the Alliance for Sensible Markets is a coalition of several advocacy groups and cannabis businesses around the country. The Alliance believes that if neighboring states pass an interstate compact that permits the interstate trade of cannabis products, the U.S. Congress would be forced to confront such legislation head-on. Because Congress generally prefers not to interfere with state law, it is likely that national lawmakers would pass the compact as standalone legislation.
There is some precedent for such an interstate compact already: Port Authority. In 1921, New Jersey and New York signed an agreement to work together to develop regional transportation and infrastructure, to facilitate safe, efficient travel between these closely linked states. The success of Port Authority led other states to make similar compacts, many of which reduce the administrative burden of local governments and improve services to residents across multiple states. Interestingly, Port Authority also influenced the federal government to create and maintain an interstate highway system, demonstrating that powerful interstate compacts can direct the federal government toward positive change.
The Alliance for Sensible Markets is focusing its campaign on states that have close contact, regardless of current cannabis regulations. Because New York and New Jersey have many interstate compacts, the Alliance has targeted them as a prime jumping-off point for developing precedent of interstate cannabis commerce — despite that only New Jersey currently allows recreational cannabis sales. Fortunately, the New York governor has plans to push legalization in 2021, given that the state does not experience another devastating pandemic.
The Alliance has also begun efforts to develop an agreement between California and Oregon because these states boast remarkably large cannabis markets that might benefit from cooperation and expansion. Unlike New York and New Jersey, which are considered consumer states, California and Oregon are both major cannabis producers. If given the opportunity for interstate commerce, cannabis and hemp farms in California and Oregon would grow immensely in value — and they would be able to deliver to consumer states, which typically struggle to produce enough cannabis to meet demand.
Already, Oregon’s governor is on board with the Alliance’s efforts. Last year, Oregon lawmakers signed a bill that would immediately allow cannabis imports and exports should federal law or other policy permit it. Unfortunately, just as coronavirus derailed New York’s attempts to legalize adult-use weed, California’s efforts to enact a similar bill to Oregon’s were thwarted in 2020 thanks to the pandemic.
It is possible that 2021 will take the Alliance to new states. Places where legalization is brand new, like Arizona, could benefit from cooperation with more established Colorado dispensaries and grow operations. Likewise, states hesitant to permit the legal sale and consumption of cannabis might recognize the value of legalization as more states work together for mutual benefit.
National news outlets typically focus on the national government — but the Feds don’t always determine what states can and cannot do. The Alliance for Sensible Markets could significantly impact cannabis law in the coming years, which could compel the federal government to take a stance on cannabis law at a national scale.
