Jeff Sessions' Cole Memo Decision Not Sitting Well With Nevada

LAS VEGAS, NV - The latest indication on how the Trump Administration plans to deal with legalized marijuana has drawn the ire of many of Nevada's elected officials.

On Thursday, United States Attorney General Jeff Sessions announced the 2013 Cole Memo - which protected marijuana establishments in states where the plant is legal from federal prosecution - has been rescinded effective immediately. The decision was met with nationwide reaction, including in Nevada where the recreational marijuana industry has contributed $20 million in tax revenue to the state since adult-use was legalized in July 2017.

Citing the Controlled Substance Act and Bank Secrecy Act, Sessions' memo said "these statutes reflect Congress' determination that marijuana is a dangerous drug and that marijuana activity is a serious crime.

"In deciding which marijuana activities to prosecute under these laws with the Departments' finite resources, prosecutors should follow the well-established principles that govern all federal prosecutions," Sessions wrote in the memo.

Reactions from Nevada's governor and federal delegation indicated resistance to Sessions' memo, even with Gov. Brian Sandoval and Sen. Dean Heller - both Republicans who opposed legalizing recreational marijuana before Nevada voters approved it in a 2016 ballot initiative.

"I believe Nevada's marijuana industry is a model for the other states. My staff and I will review the memo released this morning and our state options. I look forward to the appointment of the new Nevada Attorney General and further guidance provided by the Department of Justice," Sandoval told the Las Vegas Review-Journal.

Heller also provided comment to the newspaper.

"Knowing Attorney General Sessions' deference to states' rights, I strongly encourage the DOJ to meet with Governor Sandoval and Attorney General Laxalt to discuss the implications of changes to federal marijuana enforcement policy. I also urge the DOJ to work with the congressional delegations from states like Nevada that have legalized marijuana as they review and navigate the new policy," Heller told the Las Vegas Review-Journal.

In a series of tweets on Thursday, Sen. Catherine Cortez Masto also expressed concern that Sessions' decision is an infringement of states' rights.

"AG Sessions says he’s an advocate for states’ rights. His decision today exposes his hypocrisy. By rescinding the Cole memo, this administration is trampling on the will of Nevadans and creating unnecessary confusion for our state," Cortez Masto wrote.

She went on to say, "Nevada voters made it clear that the state should be able to enforce its marijuana laws without federal interference. We must respect the will of states while ensuring prosecutorial resources are used effectively."

In a third tweet Cortez Masto said the decision jeopardizes thousands of jobs that have been created across the state as a result of Nevada's cannabis industry.

"Nevada’s marijuana industry is a boon to our economy: it supports nearly 300 small businesses and currently employs more than 6,700 Nevadans. AG Sessions’ decision to ignore states’ rights will create uncertainty and could cost Nevada millions in economic revenue," she wrote.

Rep. Dina Titus of Nevada's 1st Congressional District spoke at a press conference with Nevada State Senator Tick Segerblom at Apothecary dispensary in Las Vegas Thursday to oppose the memo.

"I will fight for businesses that are legally operating in states, contributing to tax bases, & creating jobs. We don't need a crackdown. We need to protect states' rights, respect the voice of voters, and pass laws to prevent this from happening again," Titus wrote on Twitter Thursday.

Rep. Jacky Rosen of Nevada's 3rd Congressional District said that Sessions decision "is an insult to Nevada voters, an affront to states’ rights, and a threat to our local economy. Nevadans made it clear at the ballot box in 2016 that they support the legalization of marijuana for recreational purposes, and their decision should stand."

Rep. Ruben Kihuen of Nevada's 4th Congressional District criticized the decision to rescind the Cole Memo, saying it will have a negative impact on Nevada's economy and eliminate jobs that have been created.

“Secretary Sessions’ decision clashes with the will of hundreds of thousands of Nevadans and millions of Americans who have voted in favor of marijuana legalization. Mr. Sessions and the Department of Justice are reversing a years-long policy of respecting the rights of states in order to take out a personal vendetta on an industry that has sold nearly $130 million worth of product in Nevada and brought in $20 million in tax revenue to the state since July. This decision will not only impact the marijuana industry and the thousands of jobs it is creating, but it will put at risk a stable source of vital tax revenue for our state," Kihuen said in a statement.

A Jan. 16 hearing with the Nevada Department of Taxation and the Nevada Tax Commission is scheduled to discuss the adoption of permanent regulations for Nevada's cannabis industry, which is overseen by the Department of Taxation.

"Since Nevada voters legalized adult-use marijuana in November 2016, the Department of Taxation stood up one of the most tightly regulated, model programs in the country, in alignment with Gov. Sandoval’s directive for a well-regulated, restricted, and respected industry. The regulatory scheme we put in place helps protect against diversion of marijuana to minors, provides health and safety protections for consumers, and gives us the enforcement teeth we need to make sure businesses within the industry comply with the rules. Following news this morning that the U.S. Department of Justice may change its approach to federal enforcement regarding marijuana, the Department of Taxation will continue in its regulatory capacity, working to ensure that public health and safety are protected, pending any further action by the Justice Department," the Nevada Department of Taxation said in a statement on Thursday.

The permanent regulations would dictate how the department would proceed with issuing new licenses for marijuana establishments. Stephanie Klapstein, Public Information Officer for the Department of Taxation, said that whenever permanent regulations are put into law, the department will begin taking applications for new marijuana establishments across Nevada.

Image via Jacquelyn Martin/Associated Press