By Samson Habte
July 22 — Lawyers in the state of Washington—one of five U.S. jurisdictions that have legalized recreational cannabis use—are generally free to operate marijuana-related businesses and to engage in personal use of the drug, the Washington state bar's ethics committee advised recently.
The opinion tackles questions the Washington Supreme Court left open last year when it adopted a new comment in the state's lawyer conduct rules authorizing members of the bar to provide legal advice to marijuana industry clients, but declined to approve another change that would have insulated lawyers from discipline for consuming the drug and investing in cannabis-related businesses.
In 2012, voters passed a ballot initiative that legalized the possession, sale and use of recreational marijuana in Washington.
Soon after, bar officials asked the state supreme court to make clear that although federal law still classifies cannabis as an illegal substance, lawyers who advise clients on marijuana-related activities permitted under state law do not violate Washington Rule of Professional Conduct 1.2. That rule provides that lawyers may not counsel clients to engage in criminal activity.
The court acted on that recommendation in November 2014 by adopting Comment  to Rule 1.2.
But the court declined to act on another recommendation: a proposal to adopt a new comment stating that “a lawyer who engages in conduct permitted under [Washington's marijuana laws] does not, without more, violate” Rules 8.4(b) (criminal acts reflecting adversely on honesty, trustworthiness or fitness to practice), 8.4(i) (disregard for rule of law), 8.4(k) (violating oath to abide by state and federal law) or 8.4(n) (conduct demonstrating unfitness to practice law).
Mark Fucile, who chairs the ethics committee, had said in a February 2015 article that “However useful the Supreme Court’s comment is for lawyers working with marijuana-related businesses, the comment leaves some ‘unfinished business' in two particular areas: personal use of marijuana by lawyers; and lawyers who themselves invest in marijuana-related businesses.”
The Washington opinion appears to be the first advisory from a state bar's ethics panel to address whether lawyers may own and operate marijuana-related businesses.
The committee said lawyers may be involved in cannabis-related commercial enterprises so long as those businesses are “separate and apart” from their law practices and do not affect their ability to comply with the Rules of Professional Conduct.
The committee said “it would be inappropriate to interpret” Rules 8.4(b), 8.4(i), 8.4(k) or 8.4(n) “as prohibiting activities permitted by [Washington marijuana laws] unless and until there is a change in federal enforcement policy that puts compliance with [Washington's laws] in jeopardy.”
But the opinion cautions lawyers that they must abide by Rule 1.8(a), on business transactions with clients, if they plan to enter into such a business with a client.
The opinion is the fourth bar advisory (see box) to address whether lawyers who consume marijuana in jurisdictions that have decriminalized the drug violate provisions in Rule 8.4 that forbid lawyers to engage in criminal acts and conduct that reflects adversely on their fitness to practice.
The question is significant because states have eased marijuana laws at an increasing pace in recent years. Five jurisdictions now permit recreational use of the drug, and 24 have legalized medicinal use.
The Washington panel concluded that lawyers generally may purchase and consume marijuana consistently with state laws authorizing recreational and medicinal use to the same extent nonlawyers may do so. But the committee qualified its advice with two caveats:
• marijuana consumption must not interfere with lawyers' ability “to provide competent legal advice and otherwise comply with” their ethical obligations; and
• the conclusion that marijuana use by an attorney does not violate ethics rules “may have to be reconsidered” if the federal government reverses course on the Department of Justice's recent announcements that it “does not wish to impede retail sales of medical or recreational marijuana pursuant to a state regulatory system unless the sales implicate other federal concerns such as money-laundering, sales to minors, sales outside of the state regulatory system and the like.”
The opinion also addresses the conditions under which lawyers may advise clients on marijuana-related activities and transactions that are authorized under Washington state law but prohibited by the federal Controlled Substances Act.
At least until there is a subsequent change of federal enforcement policy, a lawyer may counsel a client regarding the validity, scope and meaning of [Washington's retail marijuana laws] and may assist a client in conduct that the lawyer reasonably believes is permitted by this statute and the other statutes, regulations, orders and other state and local provisions implementing them.
The committee said that although Comment  is limited by its terms to advising clients on Washington's retail marijuana laws, it is “broad enough to cover” advice and assistance about the state's medicinal cannabis laws.
The committee also stressed that the duty to provide competent representation requires lawyers to advise clients “about the full range of legal risks that can result from participation in a state law-regulated marijuana business.”
To meet that duty, it said, lawyers must inform clients about the risks of federal prosecution and “a host of civil law questions such as the potential effect of illegality under the CSA on the enforcement of marijuana-related contracts.”
To contact the reporter on this story: Samson Habte in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Kirk Swanson at email@example.com
Full text at http://mcle.mywsba.org/IO/print.aspx?ID=1682.
Copyright 2015, the American Bar Association and The Bureau of National Affairs, Inc. All Rights Reserved.
The Washington committee is the third bar panel to conclude that lawyers do not violate ethics rules by using marijuana for recreational or medicinal purposes in states that have decriminalized such use.
The Colorado bar's ethics committee made the same finding in a 2012 opinion that dealt with medicinal use and was amended in 2013 to address recreational use as well. Colorado Ethics Op. 124 (2012).
In November 2014, the Connecticut bar's ethics committee reached the same conclusion with respect to medicinal marijuana use. Connecticut Informal Ethics Op. 2014-08 (2014).
However, a North Dakota ethics opinion concluded that an attorney “would not be able to live and use medical marijuana prescribed by a physician in Minnesota while being licensed to practice law in North Dakota.” North Dakota Ethics Op. 14-02, 30 Law. Man. Prof. Conduct 655 (2014).
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)