Andrew Kline Quoted in Bloomberg—Schumer Vows Action on Cannabis, But Major Hurdles in Way

Senior Counsel Andrew Kline was quoted in "Schumer Vows Action on Cannabis, But Major Hurdles in Way," an article in Bloomberg, regarding Chuck Schumer's marijuana legalization bill.

Andrew Kline, a Denver-based lawyer with Perkin Coie LLP who advises both U.S. and Canadian cannabis companies, said there's a lot to like about the "comprehensive and thoughtful" 163-page bill, which has "robust criminal justice and social equity reforms."

But he said there's a lack of clarity about how state and federal authorities will interact on key areas like the licensing of cannabis producers, and there's no mention of how interstate commerce will work.

"That's the big kahuna," Andrew said in a phone interview. "From my position, we can't just flip a switch, there needs to be harmonization between state and federal law."

The tax rate it calls for -- 25%, which would be layered on top of state taxes that are already 25% in some jurisdictions -- is simply too high, he said.

"I understand why the federal government wants the revenue to pay for social justice initiatives and regulatory costs, but if we could get that tax rate down to a more manageable number, that would encourage people to buy from the regulated market," he said.