Thursday, April 19, 2018
The title of this post is the title of this thorough and effective review of myriad economic impacts of the marijuana industry in the first state to have a functioning recreational marijuana market. This piece was authored by the Federal Reserve Back of Kansas City, and I recommend the piece in full to anyone and everyone interested in certain economic realities flowing from legalization and commercialization of recreational marijuana. Here are some snippets from the start and heart of the piece:
In 2012, Colorado voters passed Amendment 64, making Colorado one of the first states to legalize recreational marijuana. Since then, the legalization trend has continued, and today, medical marijuana is legal in 29 states and Washington, D.C., and recreational marijuana is legal in eight states and Washington, D.C. So far in 2018, Vermont’s lawmakers have legalized marijuana starting July 1, and at least 11 other states are considering recreational or medical marijuana legalization. The marijuana industry has had many effects on the state of Colorado since it was legalized. This issue of the Rocky Mountain Economist focuses on the economic impacts of the marijuana industry in Colorado, the first state to open recreational marijuana stores....
Marijuana Sales in Colorado
To put the magnitude of marijuana sales in perspective, personal consumption expenditures on all goods and services totaled $236.3 billion in 2016 in Colorado. Marijuana sales were $1.3 billion in 2016, or 0.55 percent of all personal consumer expenditures. By comparison, spending on food and beverages purchased for off-site consumption made up 7.2 percent of personal consumption expenditures in Colorado....
To get a sense of the magnitude of the marijuana industry, we can compare the total number of marijuana-related business licenses in the state to the number of new entity business filings for all industries in the state. Between the first quarter of 2014 and the fourth quarter of 2017, there were about 431,997 new entity business filings in Colorado. By comparison, slightly more than 3,000 marijuana-related business licenses were active at the end of 2017. If all of these marijuana-related businesses started during the first quarter of 2014 through the end of 2017, then they would represent about 0.7 percent of total new business filings in the state since 2014. The actual percentage likely is lower than 0.7 percent because some marijuana-related businesses existed in Colorado prior to 2014, particularly those serving the medical side of the industry....
Employment in the Marijuana Industry
As of March 2018, there were more than 38,000 issued individual licenses in the marijuana industry, including 1,637 business owners. Of course, not everyone with a license is working in the industry, and the Marijuana Policy Group estimates that one active license equates to 0.467 full-time equivalent positions. Using this estimate, the marijuana industry currently employs about 17,821 full-time equivalent staff, a 17.7 percent increase in employment over the previous year....
Taxation of the Marijuana Industry
In 2017, the state of Colorado collected more than $247 million from the marijuana industry, including state sales taxes on recreational and medical, special sales taxes on recreational, excise taxes on recreational and application and licenses fees. Tax collections since 2014 have increased significantly, though at a slower pace over the past year. Between 2014 and 2015, total collections increased 93 percent. By contrast, collections increased about 28 percent between 2016 and 2017. To put the magnitude of marijuana tax collections in perspective, they equate to about 2.3 percent of Colorado’s 2017 general fund revenue. Although this calculation is useful for perspective, most marijuana revenue does not go into the state general fund....
Potential Costs of Marijuana Legalization
The data on legalization’s impact on public safety is limited, and therefore, the full effects of legalization on public safety are uncertain. Between 2012 and 2014, the number of marijuana arrests fell 46 percent, primarily due to a decline in marijuana possession arrests. In Denver, the number of crimes reported to the Denver Police Department that were determined to have a clear connection to marijuana increased from 234 in 2013 to 276 in 2014, but then fell to 183 in 2017. Of the crimes reported with a connection to marijuana in 2017, 54 percent were burglaries and 74 percent were industry-related.xxviii Fifteen percent of DUI summons issued by the Colorado State Patrol in 2015 were for marijuana or marijuana in combination with alcohol or other drugs although the number of these types of DUIs fell 1 percent between 2014 and 2015. Traffic fatalities with THC-only or THC-in-combination positive drivers rose from 55 in 2013 to 79 in 2014....
As the first state to open recreational marijuana retail stores, Colorado provides a case study to examine the potential economic effects from legalization. Direct employment in the marijuana sector has risen robustly since the passage of Amendment 64, contributing about 5.4 percent of all employment growth in Colorado since January 2014. Despite these solid gains, employment in the sector makes up just 0.7 percent of total employment in the state. Similar to employment, tax collections from marijuana have also increased sharply in recent years, and are equal to about 2 percent of general fund revenues in the state. Although legalization has contributed to employment growth and tax revenues in the state, it is important to weigh those benefits against the potential costs to public safety and health outcomes.
April 19, 2018 in Business laws and regulatory issues, Employment and labor law issues, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Taxation information and issues | Permalink | Comments (0)
Tuesday, April 17, 2018
The sports website SBNation has this big new series of articles under the banner "Sports in the age of cannabis." Here is how the site sets up its coverage along with links to more than a half-dozen article of note:
We, as a nation, are changing the way we feel about cannabis.
Gone are the days of Reefer Madness, the hysteria of the War on Drugs. As more and more states decriminalize and legalize cannabis, we are seeing a new American attitude that views it as much a business opportunity as something to be feared or banned.
These attitudes are making their way into the sporting world as well. Some professional leagues still test for weed, though how eager they are to actually bust athletes is a matter of debate. And athletes are now seriously turning toward cannabis as a pain-management solution — as we learn more about the dangers of opioid abuse, weed appears more and more like a safer option.
While the changing stigmas around cannabis present exciting opportunities for some, it’s not all that simple. We still live in a country where people, too often people of color, are being arrested for selling and using a product that is already making entrepreneurs, in the sporting world and outside of it, tons of money.
We wanted to look at it all, from the mountains of Colorado to the streets of Atlanta, THC and CBD, oils and smoke, and all the rest. This is sports in the age of cannabis.
Monday, April 16, 2018
Guest post: "New Database Tracks Local Variation in Implementing Cannabis Legalization in California"
Professor W. David Ball, who has served on California Lt. Governor Gavin Newsom's Blue Ribbon Commission on Marijuana Regulation, was kind enough to alert me to a new database that details how localities in California are implementing the state's marijuana reform laws. He was even kinder to take up my invitation to write up an account of this resource. Here is his terrific guest post:
California's regulated cannabis market is roughly four months old, but within the statewide framework, there are notable local variations. The ballot initiative that legalized adult-use provided for a strong degree of local control and, as this article details, some areas have been quicker (and more willing) to license activities than others. This database provides details about which activities county and municipal governments have decided to permit (sales, testing, manufacturing, growing, and distributing) for both the medical and adult-use market.
The database (and accompanying article) point out a number of dynamics likely to be replicated in other nascent adult-use markets. First, the statewide framework is usually only the beginning -- localities still have a great degree of control over which geographical areas (and which parts of the new market) will be a part of a regulated cannabis regime. California requires local licensing, but even if it didn't, local governments, via land-use regulations and zoning laws, would still be able to exercise a significant amount of control. Focusing only on inter-state differences fails to capture the significant intra-state differences that exist within a given statewide regime. It may be true that, say, the regulations of the San Francisco market have more in common with Seattle than they do with Fresno.
Second, we should remember that regulation is an ongoing process. Proposition 64, the adult-use legalization initiative, gave California the foundation to enact administrative rule-making. These administrative rules, in turn, will be modified as the market develops. Indeed, one bill currently under consideration in the state assembly would cut cannabis taxes in order to lure price-sensitive customers to the legal market. There is no reason to suspect that the database of local regulations won't change on a regular basis. Some localities might expand the scope and depth of permitted activities, some might contract them. This is why it is important both to have a flexible framework and to ensure that stakeholders (including those not participating in the market as either consumers or producers) remain engaged.
With almost 40 million people and a population and landscape that contains almost every kind of diversity one sees in the country, a closer analysis of these local regulations is sure to yield insights normally associated with the federalist conception of "laboratories of democracy." In this instance, though, the laboratories are to be found within a single state, rather than among the 50 states.
The title of this post is the title of this revised ABA Book Publishing text authored by Michael Newton Widener. Here is the start of the text's introduction:
Initially published in 2012, in its revised edition, this book remains the only work inviting careful thought about the commercial landlord’s risk and reward scenarios in leasing to marijuana businesses. And Joint Tenancies gives the prospective tenant a valuable background in how to coordinate with potential landlords to address concerns about the occupancy of these businesses. While it is not written to be a pageturner or to offer readers entertainment, there’s no point in ignoring these basic facts: Today, possession, transportation, and sale of Cannabis remain federal crimes under the Controlled Substances Act of 1970 (sometimes referred to in this book as the “CSA” or the “Act”).
Until Cannabis is rescheduled to permit its use under that federal Act or the CSA is disposed of by federal legislation such as the 2017-introduced Marijuana Justice Act, the operation of a marijuana dispensary or store, or a grow site, is a federal crime punishable under the federal courts’ sentencing guidelines, which impose fines and jail time. The fact that marijuana sales are legal under your state’s law does not change one basic principle. Legal compliance with state laws governing marijuana business operations is not a defense to federal drug or money laundering charges.
As explained in the main text, property leasing to a marijuana business today, whether it’s a retail operation or a cultivation or “grow” location (abbreviated as an “MBE” in this book), exposes a landlord to civil and criminal penalties. One commercial landlord in Montana (Jonathan Janetski) went to federal prison in 2012 for leasing his warehouse to an MBE that violated the law governing cultivation sites.1 Among other penalties available to federal authorities is forfeiture of a landlord’s property. Forfeiture, as explained later, means the government takes away a citizen’s real estate and doesn’t give it back and doesn’t pay money or other consideration for its forfeiture. Nothing lighthearted or entertaining there, is there?
Sunday, April 15, 2018
Will Prez Trump's pledge to safeguard states' marijuana reforms boost Oklahoma's medical marijuana initiative?
November is the usual month for big votes on marijuana reform, and it seems likely that voters in Michigan and Utah will be considering ballot initiative at the usual voting time. (In Michigan, voters will be considering recreational marijuana reform; in Utah, a medical marijuana reform issue is likely to make the ballot.) Interestingly, though, this election year voters in Oklahoma will be deciding on the fate of its marijuana initiative, Question 788, on June 26, 2018. Question 788 seeks to establish a comprehensive medical marijuana program for the state, and I have long thought that the seeming opposition to any marijuana reform by the Trump Administration might be a big issue in a state in which Donald Trump carried over 65% of the vote in 2016.
But, as discussed in this post, on Friday, President Donald Trump gave Colorado Senator Cory Gardner his word that he would protect state marijuana reform efforts. So, while in the past it seems opponents of marijuana reform in Oklahoma could point to actions and words of Attorney General Jeff Sessions to advocate against state voters embracing Question 788, now it would seem proponents of Question 788 can (and likely should) argue that Prez Donald Trump is supportive of state marijuana reform efforts.
Ultimately, who turns out to vote in Oklahoma on June 26, 2018 will likely decide the fate of Question 788 more so than any particular statements by any federal officials. Nevertheless, I think it interesting to think of all the possible ripple effects for on-going marijuana reform efforts flowing from Senator Gardner's ability to get Prez Trump to commit to safeguarding states' rights in this arena.
Prior related post:
- AG Sessions' decision to rescind Cole Memo ultimately leads to Prez Trump pledge to safeguard states' marijuana reforms
Friday, April 13, 2018
AG Sessions' decision to rescind Cole Memo ultimately leads to Prez Trump pledge to safeguard states' marijuana reforms
As reported in this CNN piece, "Trump promises GOP lawmaker to protect states' marijuana rights," a little more than three months after Attorney General Sessions decided to rescind the Cole Memo stating that federal prosecutors would not prioritize criminal enforcement against state-compliant marijuana businesses, President Donald Trump gave a Colorado Senator his word that he was eager to protect state marijuana reform efforts. Here are the basic:
Washington (CNN)President Donald Trump told Colorado Republican Sen. Cory Gardner that the President will support efforts to protect states' that have legalized marijuana, according to a statement from Gardner released Friday.
The deal, which was first reported by The Washington Post, comes after Gardner said he'd block all Justice Department nominees after Attorney General Jeff Sessions rescinded guidance from the Obama administration, known as the Cole memo, that had adopted a policy of non-interference with marijuana-friendly state laws.
The Department of Justice was not consulted on this promise to Gardner from the President, according to a source familiar.
"Late Wednesday, I received a commitment from the President that the Department of Justice's rescission of the Cole memo will not impact Colorado's legal marijuana industry," Gardner said in a statement. "Furthermore, President Trump has assured me that he will support a federalism-based legislative solution to fix this states' rights issue once and for all."
He continued: "Because of these commitments, I have informed the Administration that I will be lifting my remaining holds on Department of Justice nominees." Gardner said he and his colleagues are working on a bill that would prevent the federal government from interfering in states' marijuana legalization. "My colleagues and I are continuing to work diligently on a bipartisan legislative solution that can pass Congress and head to the President's desk to deliver on his campaign position," he said in the statement.
White House press secretary Sarah Sanders called the statement from Gardner "accurate" during Friday's press briefing. "The President did speak with the senator," she said. "The statement that the senator put out today is accurate."
In many respects, it is somewhat amazing that Prez Trump was able to go the first 15 months of his presidency without ever speaking directly about federal or state marijuana policies. But now I think it is even more amazing that the decision by Attorney General Jeff Session to rescind the Cole memo has now directly led to the President of the United States indicating his support for a "federalism-based legislative solution" to modern marijuana reform issues.
Prior related posts:
- Some early thoughts and comments now that AG Sessions has rescinded the Cole Memo
- After new AG Sessions memo on marijuana enforcement, is marijuana industry now "in chaos"?
- New AG Sessions memo on "Marijuana Enforcement" says very little but still could mean a lot
- More astute commentary from astute commentators on new DOJ marijuana enforcement policy
- "Did Jeff Sessions Just Increase the Odds Congress Will Make Marijuana Legal?"
- Unsurprisingly, Colorado congressional contingent contesting AG Sessions' decision to rescind Cole Memo
- Some perspectives on the rescission of the Cole Memo two months later
- Justice Department seemingly impacted more by rescission of Cole Memo than marijuana industry
Thursday, April 12, 2018
Senators Orrin Hatch and Kamala Harris write to AG Jeff Sessions to push for more medical marijuana research
As reported in this new press release, "US Senators Orrin Hatch (R-UT) and Kamala Harris (D-CA), both members of the Senate Judiciary Committee, sent a letter today to US Attorney General Jeff Sessions urging the Drug Enforcement Administration (DEA) to cease efforts to slow medical marijuana research, following reports that the Department of Justice was blocking medical marijuana research efforts by delaying approvals for manufacturers growing research-grade medical marijuana." Here is more from the text of the letter:
Dear Attorney General Sessions:
We write to request that you enable the Drug Enforcement Administration (DEA) to fulfill its charter of lawfully registering manufacturers of the controlled substance of marijuana for research without delay. Research on marijuana is necessary to resolve critical questions of public health and safety, such as learning the impacts of marijuana on developing brains and formulating methods to test marijuana impairment in drivers.
To date, it has been federal practice that only one manufacturer — the University of Mississippi — is licensed to produce marijuana for federally-sanctioned research. Historically, as the DEA has noted, that single manufacturer could meet the minimal demand for research. However, the DEA changed its policy nearly two years ago because, as it explained, “There is growing public interest in exploring the possibility that marijuana or its chemical constituents may be used as potential treatments for certain medical conditions,” and the DEA — along with the Food and Drug Administration (FDA) and the National Institutes of Health (NIH) — “fully supports expanding research into the potential medical utility of marijuana and its chemical constituents.”
As of August 11, 2016, 354 individuals and institutions were approved by the DEA to conduct expansive research on marijuana and its related components. Those researchers needed access to a federally compliant expanded product line—they needed to study different types of marijuana and across various delivery mechanisms. Accordingly, a diverse, DEA-vetted market of suppliers of research-grade marijuana would be critical. Since the DEA’s Federal Register Notice on August 12, 2016, at least 25 manufacturers have formally applied to produce federally-approved research-grade marijuana....
We write this letter because research on marijuana is necessary for evidence-based decision making, and expanded research has been called for by President Trump’s Surgeon General, the Secretary of Veterans Affairs, the FDA, the CDC, the National Highway Safety Administration, the National Institute of Health, the National Cancer Institute, the National Academies of Sciences, and the National Institute on Drug Abuse. In order to facilitate such research, scientists and lawmakers must have timely guidance on whether, when, and how these manufacturers’ applications will be resolved.
The benefits of research are unquestionable. Research will give law enforcement guidance to do their jobs:protecting drivers on the roads, protecting kids in schools, and maintaining law and order. Ninety-two percent of veterans support federal research on marijuana, and the Department of Veterans’ Affairs is aware that many veterans have been using marijuana to manage the pain of their wartime wounds. America’s heroes deserve scientifically-based assessments of the substance many of them are already self-administering.
By allowing expanded research, the Department of Justice will aid legislators in making sound decisions, help law enforcement in developing critical public safety guidance, and ensure that citizens have the benefit of informed, evidence-based policy.
Wednesday, April 11, 2018
Former US House Speaker and former Massachusetts Gov join advisory advisory board of major marijuana corporation
As reported in this company press release, "Acreage Holdings (“Acreage”) (www.acreageholdings.com), one of the nation’s largest, multi-state actively-managed cannabis corporations, announced the appointments of former Speaker of the United States House of Representatives John Boehner and former Governor of the State of Massachusetts Bill Weld to its Board of Advisors." Here is more from the announcement:
As members of the Board, Speaker Boehner and Governor Weld will bring an immense, collective and unique set of experiences in government affairs, unmatched leadership and guidance to help drive Acreage towards its strategic mission. In concert with this announcement, Speaker Boehner and Governor Weld have issued this joint statement:
While we come at this issue from different perspectives and track records, we both believe the time has come for serious consideration of a shift in federal marijuana policy. Over the past 20 years a growing number of states have experimented with their right to offer cannabis programs under the protection of the 10th amendment. During that period, those rights have lived somewhat in a state of conflict with federal policy. Also, during this period, the public perception of cannabis has dramatically shifted, with 94% of Americans currently in favor of some type of access, a shift driven by increased awareness of marijuana’s many medical applications.
We need to look no further than our nation's 20 million veterans, 20 percent of whom, according to a 2017 American Legion survey, reportedly use cannabis to self-treat PTSD, chronic pain and other ailments. Yet the VA does not allow its doctors to recommend its usage. There are numerous other patient groups in America whose quality of life has been dramatically improved by the state-sanctioned use of medical cannabis.
While the Tenth Amendment has allowed much to occur at the state level, there are still many negative implications of the Federal policy to schedule cannabis as a Class 1 drug: most notably the lack of research, the ambiguity around financial services and the refusal of the VA to offer it as an alternative to the harmful opioids that are ravishing our communities.
We are excited to join the team at Acreage in pursuit of their mission to bring safe, consistent and reliable products to patients and consumers who could benefit. We have full confidence in their management team and believe this is the team that will transform the debate, policy and landscape around this issue....
Both the Speaker and the Governor have agreed to immediately join the Company’s Board of Advisors and have committed to join the Company’s Board of Directors once it has been formed and other qualified directors have been appointed.
Tuesday, April 10, 2018
The title of this post is the title of this new article authored by Michael Vitiello and Rosemary Deck just published in the UC Hastings Law Journal. Here is its abstract:
The United States is on a fast-track to a new era in marijuana law. The prospect of a federal pathway to legalization opens a Pandora’s Box of issues for states like California. This Article focuses on Humboldt County in the Emerald Triangle, California’s prime marijuana growing area, and examines how the region might be impacted by state legalization. After a brief look into the development of the marijuana market in Humboldt County, this Article identifies some of the costs that have come with leaving the county outside the legal fold, including a failure to address poor working conditions for seasonal trimmers and an epidemic of sexual harassment that has only recently come to light.
The Article then explores some of the obstacles to bringing the county into the legal economy. Depending on how policymakers and marijuana producers respond to these issues, Humboldt County may become a boom-or-bust economy. The Article then examines some of the benefits of bringing producers into the legal economy, including improved working conditions for the scores of individuals employed in the industry. Failing to bring the county into compliance with county and state cannabis regulations also threatens the goals of marijuana reformers. The Article concludes with thoughts about how Humboldt County might fare in the new world of legal pot. Just as in the wine industry, the region’s best hope may lie in the move towards marijuana appellations, which will require entry into the legal market.
This recent Forbes article authored by Tom Angell, headlined "Marijuana Is The Fastest-Growing Job Category, Top Recruiting CEO Says," highlights a key economic development story within the modern marijuana reform. Here are excerpts:
The head of a leading firm that connects businesses with job seekers says that employment in the legal marijuana industry is growing faster than any other field. "You know what the fastest-growing job category in the United States is?" ZipRecruiter.com co-founder and CEO Ian Siegel asked. "Marijuana."
And he should know. His company calls itself the "fastest growing employment marketplace" and claims to have "helped over 1 million businesses and 100 million job seekers find their next perfect match."
"Twenty-nine states have legalized marijuana. There's 445% job growth in job listings in the category year over year," he said at a conference hosted by U.S. News & World Report on Friday. "Let me put that in perspective for you," Siegel said, reporting that technology jobs are at 245% growth and healthcare positions are rising at 70%....
"Our Q4 data for 2017 revealed an especially dramatic leap in the number of new cannabis industry job posts," the report said. "The number of cannabis industry job posts increased 693% year over year and 79% quarter over quarter."
At the Friday conference, Siegel used the rapid growth of the marijuana industry as an example of how the education system can't necessarily plan on the continuance of workforce trends from the time kids are in school "The things that happen societally, and the way we try to predict what you should teach kids, they happen so fast and they often happen in ways that are jarring enough that it's hard to get our brains around it," he said. "I would never encourage the members of the audience to try to predict the future and adjust curriculum based on that. I don't think that's a viable strategy."
Though understand the notion that early childhood education cannot easily adjust for predicted job trends a decade later, I think institutions of higher education can and should be recognizing the job-creation potential of modern marijuana reform and be open to developing new curriculum accordingly. As regular reader know, I have been teaching a Marijuana Law, Policy & Reform class at The Ohio State University Moritz College of Law for the last four school years, and next year the College of Law will also be offering a new class focused more on the busines law side of marijuana reform titled "Cannabiz: Exploring the 'Legalized' Cannabis Industry." I am very proud that my institution is eager to ensure law students have a way to learn about various aspects of an industry that seems to be on a continued significant growth curve.
Sunday, April 8, 2018
The title of this post is the title of this new paper recently posted to SSRN authored by Richard Thompson Ainsworth and Brendan Magauran. Here is its abstract:
On January 4, 2018, the Trump Administration through Attorney General Sessions rescinded an Obama-era policy that discouraged federal prosecutors from bringing charges in all but the most serious marijuana cases under the federal Controlled Substances Act, as well as under the Bank Secrecy Act. Federal law is at odds with state law in the majority of states on the legalization and subsequent state taxation of marijuana. Twenty-eight states and the District of Columbia have at least partially legalized marijuana. Eight of these states have legalized both medicinal and recreational use. With limited exceptions, legalized sales of marijuana are taxed.
Aside from “compassionate use” of medicinal marijuana, the States have seen real business development and job creation opportunities by legalizing the marijuana trade – estimates of 250,000 new jobs by 2020 are common.
State marijuana revenue measures are not harmonized today. Both the tax rates and the commercial stages at which marijuana transactions are taxed diverge widely. Rates range from zero for medicinal use (in Delaware, DC, Maine, Massachusetts, New Hampshire, New Mexico, North Dakota, and Oregon) to roughly 47% (for recreational marijuana, slightly less for medicinal) in Washington. For the most part, state marijuana taxes cascade with excise taxes appearing in the retail sales tax base.
This paper proposes to analyze state marijuana enforcement and taxation through the lens of European value added taxes (VAT). There is a closer harmony between the EU and the US in this area than might be expected. EU VAT proposals for tax harmonization and enforcement, and applies them to the US. The proposals are technology-intensive. They integrate well with the digital track and trace systems employed by US States to control legalized marijuana. The first proposal is to place the central portion of the marijuana supply chain on a private blockchain that is shared among the states. Transactions in marijuana will be preserved in real-time (locally and centrally). Data will be shared among State authorities to aid enforcement, and tax collection.
The second proposal is for a limited-purpose cryptotaxcurrency. This would be a crypto-token like VATCoin that is digitally minted by the government. For example, CALCoin. CALCoin would be the only currency allowed for marijuana-related purchases within California. Frauds related to excessive “home grown” marijuana, and the use of Dark Cloud-based Zappers in retail dispensaries are also considered.
Thursday, April 5, 2018
The question in the title of this post is prompted by this new Forbes article headlined "Binge Drinking Rates Drop In States With Recreational Marijuana Laws." Here are excerpts (with links from the original):
Binge drinking across the United States is at an all time high. Yet, a new report from the Wall Street investment firm Cowen & Company shows that this dangerous alcoholic behavior is on the decline in states that have legalized the leaf in a manner similar to alcohol.
It was just a month ago that the Centers for Disease Control and Prevention (CDC) published new data suggesting that more Americans are now engaging in regular binge drinking. What was once considered a foolish exploit of College students has now apparently infiltrated citizens from every demographic and all walks of life. The CDC found that Americans sucked down 17 billion alcoholic beverages in 2015. By definition, the term “binge drinking,” is five or more drinks for men, and four or more for women in a span of around two hours. Thirty-seven million adults (about 1 in 6 people) engage in this activity at least once a week, the report finds.
But the investment analysts at Cowen published a document earlier this week that provides a little hope for an America headed for cirrhosis of the liver. It seems that binge drinking is on the decline in states that have legal marijuana laws on the books. More specifically, it is those states like Colorado and Washington, some of the first U.S. jurisdictions to legalize for recreational use, where binge drinking is now less prominent. “In legal adult use cannabis states,” the analysts wrote, “the number binge drinking sessions per month (for states legal through 2016) was -9% below the national average.”
What’s more is legal marijuana states, where adults 21 and older can walk into a dispensary and purchase a variety of cannabis products, experienced 13 percent less binge drinking than areas of prohibition. The writing is on the wall – people with legal access to recreational marijuana are opting to spend either all or a portion of their booze budget on a substance that has been deemed “a safer alternative.”...
As it stands, those states without recreational marijuana laws are experiencing an increase in binge drinking. “Non-cannabis states averaged 7.4 drinks per binge, ~12% higher than the 6.6 drinks per binge seen in adult use cannabis states,” the report reads.
The title of this post is the title of this new article available via SSRN authored by Keaton Miller and Boyoung Seo. Here is the abstract:
Proponents of the legalization of recreational marijuana have argued that the policy would result in increased tax revenues for states. However, if legal substances are highly substitutable, tax revenues from marijuana may crowd out pre-existing revenues. We study the interaction between the marijuana, alcohol, and tobacco industries in Washington state using a combination of detailed administrative data on the marijuana industry and scanner data on alcohol and tobacco sales.
We estimate a demand system and find that alcohol and marijuana are substitutes, with the legalization of marijuana in isolation leading to a 12% decrease in alcohol demand, and a marginal cross price elasticity of demand of .16. Marijuana legalization results in a 20% decrease in tobacco demand, but the marginal relationship is unclear. When prices are held fixed, 50% of marijuana tax revenue comes from cannibalizing alcohol and tobacco taxes. When those industries adjust their prices, only 22% of marijuana tax revenue comes from alcohol and tobacco. Though Washington has the highest marijuana tax rate in the country, a 1% increase in the marijuana tax results in a 1.01% increase in total revenues collected by the state.
Tuesday, April 3, 2018
"Marijuana use is associated with intimate partner violence perpetration among men arrested for domestic violence"
The title of this post is the title of this notable new research published in Translational Issues in Psychological Science. Here is the article's abstract:
Intimate partner violence (IPV) is a serious public health problem. Substance use, particularly alcohol, is a robust risk factor for IPV. There is a small but growing body of research demonstrating that marijuana use is positively associated with IPV perpetration. However, research on marijuana use and IPV has failed to control for other known predictors of IPV that may account for the positive association between marijuana use and IPV perpetration. Therefore, the current study examined whether marijuana use was associated with IPV perpetration after controlling for alcohol use and problems, antisocial personality symptoms, and relationship satisfaction, all known risk factors for IPV.
Participants were men arrested for domestic violence and court-referred to batterer intervention programs (N = 269). Findings demonstrated that marijuana use was positively and significantly associated with psychological, physical, and sexual IPV perpetration, even after controlling for alcohol use and problems, antisocial personality symptoms, and relationship satisfaction. Moreover, marijuana use and alcohol use and problems interacted to predict sexual IPV, such that marijuana use was associated with sexual IPV at high, but not low, levels of alcohol use and problems. These findings lend additional support to the body of research demonstrating that marijuana use is positively associated with IPV perpetration in a variety of samples. Results suggest that additional, rigorous research is needed to further explore why and under what conditions marijuana is associated with IPV perpetration.
Monday, April 2, 2018
As reported via this CNN article, headlined "Marijuana legalization could help offset opioid epidemic, studies find," this weeks bring the publication of notable new research suggesting a link between marijuana access and reduced use of opioids. Here are the basics:
Experts have proposed using medical marijuana to help Americans struggling with opioid addiction. Now, two studies suggest that there is merit to that strategy. The studies, published Monday in the journal JAMA Internal Medicine, compared opioid prescription patterns in states that have enacted medical cannabis laws with those that have not. One of the studies looked at opioid prescriptions covered by Medicare Part D between 2010 and 2015, while the other looked at opioid prescriptions covered by Medicaid between 2011 and 2016.
The researchers found that states that allow the use of cannabis for medical purposes had 2.21 million fewer daily doses of opioids prescribed per year under Medicare Part D, compared with those states without medical cannabis laws. Opioid prescriptions under Medicaid also dropped by 5.88% in states with medical cannabis laws compared with states without such laws, according to the studies....
In order to evaluate whether medical marijuana could function as an effective and safe alternative to opioids, the two teams of researchers looked at whether opioid prescriptions were lower in states that had active medical cannabis laws and whether those states that enacted these laws during the study period saw reductions in opioid prescriptions.
Both teams, in fact, did find that opioid prescriptions were significantly lower in states that had enacted medical cannabis laws. The team that looked at Medicaid patients also found that the four states that switched from medical use only to recreational use -- Alaska, Colorado, Oregon and Washington -- saw further reductions in opioid prescriptions, according to Hefei Wen, assistant professor of health management and policy at the University of Kentucky and a lead author on the Medicaid study. "We saw a 9% or 10% reduction (in opioid prescriptions) in Colorado and Oregon," Wen said. "And in Alaska and Washington, the magnitude was a little bit smaller but still significant."...
The details of the medical cannabis laws were found to have a significant impact on opioid prescription patterns, the researchers found. States that permitted recreational use, for example, saw an additional 6.38% reduction in opioid prescriptions under Medicaid compared with those states that permitted marijuana only for medical use, according to Wen.
The method of procurement also had a significant impact on opioid prescription patterns. States that permitted medical dispensaries -- regulated shops that people can visit to purchase cannabis products -- had 3.742 million fewer opioid prescriptions filled per year under Medicare Part D, while those that allowed only home cultivation had 1.792 million fewer opioid prescriptions per year.
"We found that there was about a 14.5% reduction in any opiate use when dispensaries were turned on -- and that was statistically significant -- and about a 7% reduction in any opiate use when home cultivation only was turned on," Bradford said. "So dispensaries are much more powerful in terms of shifting people away from the use of opiates."...
This is not the first time researchers have found a link between marijuana legalization and decreased opioid use. A 2014 study showed that states with medical cannabis laws had 24.8% fewer opioid overdose deaths between 1999 and 2010. A study in 2017 also found that the legalization of recreational marijuana in Colorado in 2012 reversed the state's upward trend in opioid-related deaths.
Here are links to the JAMA Internal Medicine articles referenced here, as well as a companion commentary:
Medical and Adult-Use Marijuana Laws and Opioid Prescribing for Medicaid Enrollees by Hefei Wen & Jason Hockenberry
Association Between US State Medical Cannabis Laws and Opioid Prescribing in the Medicare Part D Population by Ashley C. Bradford et al
The Role of Cannabis Legalization in the Opioid Crisis by Kevin Hill & Andrew Saxon
Some (of many) prior related posts:
- Given latest opioid death data, should Ohio officials be fast-tracking access to medical marijuana?
- "The Case for Pot in the Age of Opioids: Legalizing medical marijuana could save lives that may otherwise be lost to opioid addiction."
- "Can medical marijuana be used to treat heroin addiction?"
- Yet another study suggests link between medical marijuana availability and decreased opioid use
- "Could medical marijuana solve Ohio's opioid problem?"
- "Legalize marijuana and reduce deaths from drug abuse"
- "Obama’s Opioid Offensive Again Ignores the Cannabis Solution"
- "Is marijuana a secret weapon against the opioid epidemic?"
- "Cannabis as a Substitute for Opioid-Based Pain Medication: Patient Self-Report"
- "The use of cannabis in response to the opioid crisis: A review of the literature"
- Still more talk, from notable conservative outlets, about possible benefits of marijuana reform amidst opioid crisis
April 2, 2018 in Medical community perspectives, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Medical Marijuana State Laws and Reforms, Recreational Marijuana Data and Research | Permalink | Comments (0)
Sunday, April 1, 2018
The title of this post is the title of this intriguing new paper authored by Diego Zambiasi and Steven Stillman. Here is its abstract:
This paper examines the amenity value of legalized marijuana by analyzing the impact of marijuana legalization on migration to Colorado. Colorado is the pioneering state in this area having legalized medical marijuana in 2000 and recreational marijuana in 2012. We test whether potential migrants to Colorado view legalized marijuana as a positive or negative local amenity. We use the synthetic control methodology to examine in- and out-migration to/from Colorado versus migration to/from counterfactual versions of Colorado that have not legalized marijuana.
We find strong evidence that potential migrants view legalized marijuana as a positive amenity with in-migration significantly higher in Colorado compared with synthetic- Colorado after the writing of the Ogden memo in 2009 that effectively allowed state laws already in place to be activated, and additionally after marijuana was legalized in 2013 for recreational use. When we employ permutation methods to assess the statistical likelihood of our results given our sample, we find that Colorado is a clear and significant outlier. We find no evidence for changes in out-migration from Colorado suggesting that marijuana legalization did not change the equilibrium for individuals already living in the state.
Wednesday, March 28, 2018
The great state of New Jersey has been the focal point for a lot of interesting debate over recreational marijuana reform this year. But as that debate continues, the state's new Governor has announced here a new effort to "expands patient access to medical marijuana." Here are some details:
Governor Phil Murphy [Tuesday] announced major reforms to New Jersey’s Medicinal Marijuana Program. Reforms include the addition of medical conditions, lowered patient and caregiver fees, allowing dispensaries to add satellite locations, and proposed legislative changes that would increase the monthly product limit for patients, and allow an unlimited supply for those receiving hospice care.
“We are changing the restrictive culture of our medical marijuana program to make it more patient-friendly,” Governor Murphy said. “We are adding five new categories of medical conditions, reducing patient and caregiver fees, and recommending changes in law so patients will be able to obtain the amount of product that they need. Some of these changes will take time, but we are committed to getting it done for all New Jersey residents who can be helped by access to medical marijuana.”
More than 20 recommendations are outlined in a report that New Jersey Department of Health Commissioner Dr. Shereef Elnahal submitted to Governor Murphy in response to Executive Order 6, which directed a comprehensive review of the program within 60 days. “As a physician, I have seen the therapeutic benefits of marijuana for patients with cancer and other difficult conditions,” said Dr. Elnahal. “These recommendations are informed by discussions with patients and their families, advocates, dispensary owners, clinicians, and other health professionals on the Medicinal Marijuana Review Panel. We are reducing the barriers for all of these stakeholders in order to allow many more patients to benefit from this effective treatment option."
In the report, the Department submitted three categories of recommendations: those that are effective today, regulatory changes that will go through the rulemaking process, and proposals that require legislation. In addition, there are recommendations for important future initiatives to allow home delivery, develop a provider education curriculum, and expedite the permitting process. Effective today, five new categories of medical conditions (anxiety, migraines, Tourette’s syndrome, chronic pain related to musculoskeletal disorders, and chronic visceral pain) will be eligible for marijuana prescription. Currently, 18,574 patients, 536 physicians, and 869 caregivers participate in the program – a far smaller number than comparably populated states. The Commissioner will also be able to add additional conditions at his discretion.
Other immediate changes include lowering the biennial patient registration fee from $200 to $100 and adding veterans and seniors -- 65 and older -- to the list of those who qualify for the $20 discounted registration fee. Those on government assistance, including federal disability, already receive the reduced fee.
The report prepared by the New Jersey Department of Health is available at this link.
The title of this post is the title of this new Viewpoint commentary authored by Lawrence Gostin, James Hodge, and Sarah Wetter published earlier this week on line at JAMA. Here is how it concludes:
Toward Rational Medical Marijuana Policies
Although public opinion and state action have trended strongly toward permitting use of marijuana, especially for medical purposes, controversy continues to exist. The specter of federal prosecution could refrain physicians, patients, and dispensaries from providing marijuana in states where the drug is lawful and dissuade additional jurisdictions from legalizing marijuana. Public policy formed and implemented in the context of inconsistent federal and state laws, unpredictable legal enforcement, and insufficient scientific evidence is unsustainable. Rational policies should follow a 3-pronged agenda.
A Solid Research Foundation
Sound policy requires a strong evidence base. Scientific studies could quell ongoing disagreements about marijuana’s medical effectiveness, harms, and status as a gateway drug. Yet limited funding and restrictive access to uniformly high-quality cannabis have sharply curtailed longitudinal studies on a drug already in wide use. Physicians require rigorous evidence to inform prescribing practices and counseling of patients. At present, wide regional variations in prescribing practices exist, and patients do not have access to consistently high-quality, uncontaminated cannabis — where the purity, potency, and dosage can be ensured. Health officials, moreover, rarely conduct careful surveillance of marijuana use incidence, prevalence, and outcomes. Public policy on a potentially hazardous psychotropic drug is difficult when short- and long-term effects across populations are underreported, insufficiently studied, and poorly funded.
A Harmonized Legal Environment
Substantial variability of legal approaches to marijuana use exists across jurisdictions and between states and the federal government. Individuals in certain jurisdictions can lawfully access marijuana for medical use, recreational use, or both, whereas individuals in other jurisdictions cannot do so. Conditions under which physicians can prescribe (or patients can access) marijuana fluctuate extensively. Federal law is inconsistent with policy in virtually all states. The CSA should be revised to operate harmoniously with prevailing state law. Model legislation for medical use of marijuana, based on scientific evidence, could help reconcile activities across jurisdictions.
Federal Law Enforcement Respectful of States’ Sovereignty
Under US constitutional design, states and localities are laboratories for innovation, with state sovereignty and local home rule respected and preserved. This requires federal prosecutorial discretion to hew to the legal environment of states that have legalized marijuana use. Respecting marijuana laws is essential in states where cannabis is prescribed and used for medical purposes. On an issue as consequential as marijuana, the nation needs consistent legal norms based on the best available scientific evidence.
March 28, 2018 in Criminal justice developments and reforms, Federal Marijuana Laws, Policies and Practices, Medical community perspectives, Medical Marijuana Commentary and Debate | Permalink | Comments (0)
Monday, March 26, 2018
As reported in this new AP article, the "U.S. Senate’s top leader said Monday he wants to bring hemp production back into the mainstream by removing it from the controlled substances list that now associates it with its cousin — marijuana." Here is more:
Senate Majority Leader Mitch McConnell told hemp advocates in his home state of Kentucky that he will introduce legislation to legalize the crop as an agricultural commodity. The versatile crop has been grown on an experimental basis in a number of states in recent years. “It’s now time to take the final step and make this a legal crop,” McConnell said.
Kentucky has been at the forefront of hemp’s comeback. Kentucky agriculture officials recently approved more than 12,000 acres (4,856 hectares) to be grown in the state this year, and 57 Kentucky processors are helping turn the raw product into a multitude of products.
Growing hemp without a federal permit has long been banned due to its classification as a controlled substance related to marijuana. Hemp and marijuana are the same species, but hemp has a negligible amount of THC, the psychoactive compound that gives marijuana users a high.
Hemp got a limited reprieve with the 2014 federal Farm Bill, which allows state agriculture departments to designate hemp projects for research and development. So far, 34 states have authorized hemp research, while actual production occurred in 19 states last year, said Eric Steenstra, president of the advocacy group Vote Hemp. Hemp production totaled 25,541 acres (10,336 hectares) in 2017, more than double the 2016 output, he said.
The crop, which once thrived in Kentucky, was historically used for rope but has many other uses, including clothing and mulch from the fiber, hemp milk and cooking oil from the seeds, and soap and lotions. Other uses include building materials, animal bedding and biofuels.
Hemp advocates fighting for years to restore the crop’s legitimacy hailed McConnell’s decision to put his political influence behind the effort to make it a legal crop again. “This is a huge development for the hemp industry,” Steenstra said. “Sen. McConnell’s support is critical to helping us move hemp from research and pilot programs to full commercial production.”
Brian Furnish, an eighth-generation tobacco farmer in Kentucky, has started making the switch to hemp production. His family will grow about 300 acres (120 hectares) of hemp this year in Harrison County. He’s also part owner of a company that turns hemp into food, fiber and dietary supplements. Furnish said hemp has the potential to rival or surpass what tobacco production once meant to Kentucky. “All we’ve got to do is the government get out of the way and let us grow,” he told reporters.
McConnell acknowledged there was “some queasiness” about hemp in 2014 when federal lawmakers cleared the way for states to regulate it for research and pilot programs. There’s much broader understanding now that hemp is a “totally different” plant than its illicit cousin, he said. “I think we’ve worked our way through the education process of making sure everybody understands this is really a different plant,” the Republican leader said.
McConnell said he plans to have those discussions with Attorney General Jeff Sessions to emphasize the differences between the plants. The Trump administration has taken a tougher stance on marijuana. The Department of Justice’s press office did not immediately respond to an email seeking comment.
McConnell said his bill will attract a bipartisan group of co-sponsors. He said the measure would allow states to have primary regulatory oversight of hemp production if they submit plans to federal agriculture officials outlining how they would monitor production. “We’re going to give it everything we’ve got to pull it off,” he said.
In Kentucky, current or ex-tobacco farmers could easily make the conversion to hemp production, Furnish said. Equipment and barns used for tobacco can be used to produce hemp, he said. Tobacco production dropped sharply in Kentucky amid declining smoking rates.
March 26, 2018 in Business laws and regulatory issues, Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Political perspective on reforms, Who decides | Permalink | Comments (1)
Sunday, March 25, 2018
"Unique treatment potential of cannabidiol for the prevention of relapse to drug use: preclinical proof of principle"
The title of this post is the title of this notable new research just published on-line from the journal Neuropsychopharmacology. Here is the abstract:
Cannabidiol (CBD), the major non-psychoactive constituent of Cannabis sativa, has received attention for therapeutic potential in treating neurologic and psychiatric disorders. Recently, CBD has also been explored for potential in treating drug addiction. Substance use disorders are chronically relapsing conditions and relapse risk persists for multiple reasons including craving induced by drug contexts, susceptibility to stress, elevated anxiety, and impaired impulse control. Here, we evaluated the “anti-relapse” potential of a transdermal CBD preparation in animal models of drug seeking, anxiety and impulsivity. Rats with alcohol or cocaine self-administration histories received transdermal CBD at 24 h intervals for 7 days and were tested for context and stress-induced reinstatement, as well as experimental anxiety on the elevated plus maze.
Effects on impulsive behavior were established using a delay-discounting task following recovery from a 7-day dependence-inducing alcohol intoxication regimen. CBD attenuated context-induced and stress-induced drug seeking without tolerance, sedative effects, or interference with normal motivated behavior. Following treatment termination, reinstatement remained attenuated up to ≈5 months although plasma and brain CBD levels remained detectable only for 3 days. CBD also reduced experimental anxiety and prevented the development of high impulsivity in rats with an alcohol dependence history. The results provide proof of principle supporting potential of CBD in relapse prevention along two dimensions CBD: beneficial actions across several vulnerability states, and long-lasting effects with only brief treatment. The findings also inform the ongoing medical marijuana debate concerning medical benefits of non-psychoactive cannabinoids and their promise for development and use as therapeutics.
I found this research via this press article with a headline that provides a crisp accounting of what this research means: "Cannabis drug may help alcohol and cocaine addicts overcome their cravings, study finds." Here is how one of the researchers explained the findings in the press account:
Speaking of the findings, lead author Dr Friedbert Weiss said: 'The efficacy of the CBD to reduce reinstatement in rats with both alcohol and cocaine -- and, as previously reported, heroin -- histories predicts therapeutic potential for addiction treatment across several classes of abused drugs.
'The results provide proof of principle supporting the potential of CBD in relapse prevention along two dimensions: beneficial actions across several vulnerability states and long-lasting effects with only brief treatment.
'Drug addicts enter relapse vulnerability states for multiple reasons. Therefore, effects such as these observed with CBD that concurrently ameliorate several of these are likely to be more effective in preventing relapse than treatments targeting only a single state.'
Results further suggest CBD is completely cleared from such rats' brains just three days after the treatment ends.