WASHINGTON—The American Bar Association House of Delegates has adopted two resolutions urging federal legislation to shield lawyers and banks from criminal liability for providing services to state-legalized marijuana businesses.
Under Resolution 103B, the ABA will lobby Congress for changes to federal laws so that lawyers do not face the threat of criminal charges when they represent clients in states that have legalized marijuana, the ABA Banking Journal said.
Steven Cash, a member of the TIPS Cannabis Law and Policy Committee who co-authored Resolution 103B, told the House of Delegates during the ABA Midyear Meeting in Austin, Texas, that 33 states have legalized cannabis, but attorneys could still be charged with conspiracy and aiding and abetting under federal law.
“That’s an untenable position,” Cash said.
‘Could Deter Lawyers’
Though prosecution is unlikely, the report said the current state of the law could deter lawyers from representing marijuana businesses and clients. Under the Controlled Substances Act, marijuana is a Schedule 1 drug, putting it in the same category as heroin. Last year, the ABA passed a resolution to remove the drug from Schedule 1.
“Many lawyers believe, as an ethical matter, that they should not engage in conduct that violates a criminal law, even if the chance of prosecution is slim, perhaps even vanishingly small,” the report accompanying the proposed resolution stated.
Resolution 103D calls for the ABA to urge Congress to clarify and mandate federal laws to ensure that banks and other financial institutions can do business with marijuana businesses and attorneys in places where they are complying with state and local laws.
‘Simple’ Resolution
“The resolution is simple,” resolution co-author Adrian Snead, a member of the TIPS Cannabis Law and Policy Committee, told the House of Delegates. “It simply urges Congress to take action in the form of the SAFE Banking Act or similar legislation that would make clear that federal depository institutions can take money from legitimate cannabis industries in states that have chosen to legalize the substance without fear of federal prosecution.”