Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Monday, March 20, 2017

Providing advice to a potential Ohio medical marijuana business

As noted in recent posts, my Marijuana Law, Policy & Reform seminar students, after a well-deserved Spring Break, are hearing presentations this week about marijuana reform's intersection with immigration (background here) and education (background here). If these presentations (or other realities) end up inspiring my students to want to get into the marijuana industry in the Buckeye State, a third student presentation this week has them covered. Specifically, a student this coming week is presenting on "advising a marijuana dispensary in Ohio," and here are the materials this student has assembled for the planned presentation:

Article discussing 501(C)(4) tax emption (webpage includes link to a law review article for those interested)

Posting on taxation of marijuana dispensaries (includes text of 280E as well as a link to the IRS memo regarding taxation, Memo 201504011, for further optional reading)

---- For further reading on the taxation issue: "Tax Planning for Marijuana Dealers"

Memo summarizing Ohio dispensary rules (with changes after comment period)

---- For further reading, check out the “Dispensary Rules” section of OMMCP website

For more information (not Ohio specific) about industry activity as cultivator or processor and for more general business advice, see "Marijuana Business: How to Open and Successfully Run a Marijuana Dispensary and Grow Facility" (free on Amazon’s Kindle unlimited)

March 20, 2017 in Assembled readings on specific topics, Business laws and regulatory issues, Medical Marijuana Commentary and Debate, Taxation information and issues | Permalink | Comments (0)

Friday, March 17, 2017

Examining marijuana reforms' impact on teachers, students and educational achievement

My Marijuana Law, Policy & Reform seminar students, after a well-deserved Spring Break, are back next week to continue making presentations based on their selected marijuana-related research issue. A student this coming week is looking at issues marijuana reform from an educator's perspective and he will be presenting results from some original survey research. Here are the resources the student assembled as background on this topic:

"Texas Teacher Shouldn’t Be Punished for Marijuana Use in Colorado, Judge Says"

NYT article on an administrative judge ruling that a Texas teacher should not face sanction for smoking marijuana legally in Colorado then testing positive for it in Texas.  Article is tangentially related to my subject, but an interesting case (the judge compares the teacher smoking marijuana in Colorado to a Texas teacher going to another state to gamble at a casino).

"Teen marijuana use in Colorado found lower than national average"

Reuters article summarizing the findings of Colorado Department of Public Health and Environment’s survey of Colorado high school students that found that marijuana consumption among teens actually dipped after legalization in the state. Report also found that the percent of Colorado teens using marijuana was below the national average.

"Will legalization lead to more teens smoking pot?"

This CBS News article summarizes a report by the International Journal of Drug Policy that concluded in 2014 that about 10 percent of high school students that would otherwise be low risk to use marijuana would pick up the habit if it was legal. This hypothesis is based on nationwide survey data from 2007-2011.

"The Academic Opportunity Costs of Substance Use During College"

A study from the University of Maryland School of Public Health that analyzed a 10-year period to conclude that marijuana use contributed to college students skipping more classes, spending less time studying, earning lower grades, dropping out of college, and being unemployed after college. It also concluded that early chronic use can lead to a decrease in IQ.

March 17, 2017 in Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)

Wednesday, March 15, 2017

"Tracking the Money That’s Legalizing Marijuana and Why it Matters"

The title of this post is the title of a notable new report issued by National Families in Action. The report can be downloaded at this link, and this press release about the report provides a summary of its themes and core contents:

A new report by National Families in Action (NFIA) uncovers and documents how three billionaires, who favor legal recreational marijuana, manipulated the ballot initiative process in 16 U.S. states for more than a decade, convincing voters to legalize medical marijuana.  NFIA is an Atlanta-based nonprofit organization, founded in 1977, that has been helping parents prevent children from using alcohol, tobacco, and other drugs.  NFIA researched and issued the paper to mark its 40th anniversary.

The NFIA study, Tracking the Money That’s Legalizing Marijuana and Why It Matters, exposes, for the first time, the money trail behind the marijuana legalization effort during a 13-year period.  The report lays bare the strategy to use medical marijuana as a runway to legalized recreational pot, describing how financier George Soros, insurance magnate Peter Lewis, and for-profit education baron John Sperling (and groups they and their families fund) systematically chipped away at resistance to marijuana while denying that full legalization was their goal.  The report documents state-by-state financial data, identifying the groups and the amount of money used either to fund or oppose ballot initiatives legalizing medical or recreational marijuana in 16 states.  The paper unearths how legalizers fleeced voters and outspent — sometimes by hundreds of times — the people who opposed marijuana.

Tracking the Money That’s Legalizing Marijuana and Why It Matters illustrates that legalizers lied about the health benefits of marijuana, preyed on the hopes of sick people, flouted scientific evidence and advice from the medical community and gutted consumer protections against unsafe, ineffective drugs.  And, it proves that once the billionaires achieved their goal of legalizing recreational marijuana (in Colorado and Washington in 2012), they virtually stopped financing medical pot ballot initiatives and switched to financing recreational pot.  In 2014 and 2016, they donated $44 million to legalize recreational pot in Alaska, Oregon, California, Arizona, Nevada, Massachusetts and Maine. Only Arizona defeated the onslaught (for recreational marijuana).

March 15, 2017 in Campaigns, elections and public officials concerning reforms, History of Marijuana Laws in the United States, Initiative reforms in states, Medical Marijuana Commentary and Debate, Medical Marijuana State Laws and Reforms, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (0)

Sunday, March 12, 2017

"Medical marijuana business in New York is a bust so far"

NEW-YORKThe title of this post is the headline of this lengthy new local article from Buffalo.  Here are excerpts:

The state health commissioner last year declared New York’s medical marijuana program a success. But the five companies that the state selected in 2015 to get marijuana into the hands of people suffering from debilitating and sometimes terminal diseases such as cancer, AIDS and multiple sclerosis tell a different story.

“Our company is not close to break-even yet," said Ari Hoffnung, president of Vireo Health of New York, which has a marijuana-growing facility in Fulton County and dispenses its products in two downstate and two upstate locations. “And based on my understanding, no one has made a dime here in New York."

If other states were a guide, New York should be preparing for at least 200,000 patients enrolled in the program, the industry estimates. But since medical marijuana went on the market in New York State a little over a year ago, just over 14,000 patients have enrolled to buy the drug at one of the 20 dispensaries scattered around the state. Only half of those are regular customers. Many stopped taking the drug because of high costs, distances they must travel to get it or because they died, industry executives say. Fewer than 900 doctors signed on to certify patients to use the drug.

“There are two things the program is lacking: physicians and patients," said Sen. Diane Savino, author of the bill that opened up medical marijuana treatment in New York State. Now, while the five companies producing medical marijuana struggle to stay alive for lack of customers, the Cuomo administration wants to add five more grow-and-distribution licenses.

At the same time, the administration is not opening up a new bidding process. Instead, the Cuomo administration is turning to five companies – from the original 43 bidders – that lost in the application process two years ago. All of this is worrying the companies still trying to stay afloat. “Every single one of them is financially struggling," Savino said....

Instead of adding new grow facilities, the existing licensees say, New York should more aggressively attract physicians to participate and put dispensaries in more locations. Savino, the Staten Island senator who sponsored the legislation, said she is pushing the Cuomo administration to award new “retail license” dispensaries, but to bar the five existing grower/dispensary firms from owning them. She said the administration does not understand how the medical marijuana marketplace works and that adding new growers while supplies exceed demand is “a big mistake.”

Marijuana companies say they are not arguing more licenses should never be issued to grow and sell marijuana. “No one is making any money here. Twenty percent of us have already failed," said Hoffnung, president of Vireo Health, referring to one of the original licensees that sold out to a California company because of financial problems.

March 12, 2017 in Business laws and regulatory issues, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Medical Marijuana State Laws and Reforms | Permalink | Comments (0)

Monday, March 6, 2017

Examining studies on marijuana and THC in the treatment of psychiatric diseases and CBD in the treatment of neurological disorders

As recent posts highlight, my Marijuana Law, Policy & Reform seminar is now deep into the part of the semester in which student are making presentation based on their selected marijuana-related research issue. One student this coming week is exploring "the use of THC in the treatment of psychiatric diseases, in comparison to the use of CBD in the treatment of neurological disorders." Here are the studies the student plans to discuss:

Overarching Study:

National Academies of Science

——————————————————————————————————————————

Studies on the application of CBD to neurological disorders:

Cannabinoids in experimental stroke: a systematic review and meta-analysis

Cannabidiol and endogenous opioid peptide-mediated mechanisms modulate antinociception induced by transcutaneous electrostimulation of the peripheral nervous system

Medical Marijuana in Certain Neurological Disorders

——————————————————————————————————————————

Studies on the Application of THC to psychological disorders:

Cognitive and clinical outcomes associated with cannabis use in patients with bipolar I disorder.

Chronic Stress Impairs α1-Adrenoceptor-Induced Endocannabinoid-Dependent Synaptic Plasticity in the Dorsal Raphe Nucleus

Antidepressant-like and anxiolytic-like effects of cannabidiol: a chemical compound of Cannabis sativa (illustrating that anxiety, typically thought to be reduced by THC, may experience greater reduction thorough CBD)

March 6, 2017 in Assembled readings on specific topics, Medical community perspectives, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research | Permalink | Comments (0)

Sunday, March 5, 2017

Examining connections between marijuana reform and opioid epidemic

Friday, March 3, 2017

What might marijuana law look like if we really treated marijuana like a medicine?

The question in the title of this post is the question being raised by a student presentation in in my Marijuana Law, Policy & Reform seminar next week. The student addressing this issue has assembled the following background reading:

1.  Press article: "11 key findings from one of the most comprehensive reports ever on the health effects of marijuana"

2.  Information from the FDA: "What is the approval process for a new prescription drug?"

3.  More from the FDA: "FDA and Marijuana"

4.  Press article: "Most uses of medical marijuana wouldn't pass FDA review, study finds"

5.  Press article: "When Your State Says Yes To Medical Marijuana, But Your Insurer Says No"

March 3, 2017 in Assembled readings on specific topics, Medical community perspectives, Medical Marijuana Commentary and Debate, Medical Marijuana State Laws and Reforms | Permalink | Comments (0)

What are the possibilities and foundations supporting a constutional argument for access to marijuana?

The question in the title of this post is the question being raised by a student presentation in in my Marijuana Law, Policy & Reform seminar next week. (It is also a question that has become ever more timely in light of recent suggestions by members of the Trump Administration that we may soon be seeing "greater enforcement" of federal marijuana prohibition.) The student addressing this issue has assembled the following background reading:

State Supreme Court decision recognizing a constitutional right to use marijuana in the home: Ravin v. State, 537 P.2d 494 (Alaska 1975) (westlaw; public site)

U.S. Supreme Court Cases recognizing a right to privacy and autonomy:

Griswold v. Connecticut (1965)

Stanley v. Georgia (1969)

Obergefell v. Hodges (2015)

Brief summary of unenumerated rights found in the 14th amendment through the concept of personal autonomy

NORML Amicus Brief involving right to use marijuana

March 3, 2017 in Assembled readings on specific topics, Criminal justice developments and reforms, History of Marijuana Laws in the United States, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)

Thursday, March 2, 2017

"Can we make cannabis safer?"

The title of this post is the title of this notable new piece from a group of doctors appearing in The Lancet Psychiatry.  Here is its summary:

Cannabis use and related problems are on the rise globally alongside an increase in the potency of cannabis sold on both black and legal markets.  Additionally, there has been a shift towards abandoning prohibition for a less punitive and more permissive legal stance on cannabis, such as decriminalisation and legalisation.  It is therefore crucial that we explore new and innovative ways to reduce harm.

Research has found cannabis with high concentrations of its main active ingredient, δ-9-tetrahydrocannabinol (THC), to be more harmful (in terms of causing the main risks associated with cannabis use, such as addiction, psychosis, and cognitive impairment) than cannabis with lower concentrations of THC.  By contrast, cannabidiol, which is a non-intoxicating and potentially therapeutic component of cannabis, has been found to reduce the negative effects of cannabis use.  Here, we briefly review findings from studies investigating various types of cannabis and discuss how future research can help to better understand and reduce the risks of cannabis use.

March 2, 2017 in Medical community perspectives, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)

Saturday, February 25, 2017

California folks gearing up for possible fight with feds over marijuana law and policy

DownloadThis new lengthy Los Angeles Times article, headlined "California officials and the marijuana industry are ready to fight a federal crackdown," reports on what folks on the Left Coast are thinking and saying in the wake of  the recent comments from White House press secretary Sean Spicer suggesting the Trump Administration might be ramping up federal enforcement of blanket marijuana prohibition.  Here are excerpts:

Warned of a possible federal crackdown on marijuana, California elected officials and cannabis industry leaders said Friday they were preparing for a potential showdown in the courts and Congress to protect the legalization measure approved by state voters in November.

The flashpoint that set off a scramble in California was a news conference Thursday at which White House Press Secretary Sean Spicer told reporters that the administration had no plans to continue the Obama administration's permissive approach in states that have legalized marijuana for recreational use. "I do believe that you'll see greater enforcement,” he said, adding that the administration would continue to allow states to regulate the sale of marijuana for medical use.

The latest development could force California officials and marijuana industry leaders into an unusual alliance against the federal government, with billions of dollars in profits for businesses and taxes for state coffers at stake.

The state agency responsible for drafting regulations said Friday it was going ahead with its plans to start issuing licenses to growers and sellers in January. “Until we see any sort of formal plan from the federal government, it’s full speed ahead for us,” said Alex Traverso, a spokesman for the California Bureau of Medical Cannabis Regulation.

California Atty. Gen. Xavier Becerra says he is ready to safeguard the rights of the 56% of voters who approved Proposition 64, which allows California adults to possess, transport and buy up to an ounce of marijuana for recreational use. “I took an oath to enforce the laws that California has passed,” Becerra said in a statement Thursday after Spicer’s comments. “If there is action from the federal government on this subject, I will respond in an appropriate way to protect the interests of California.”

State lawmakers also say California should do what it can to preserve Proposition 64. “We will support and honor the laws that California voters have democratically enacted,” said Assemblyman Rob Bonta (D-Oakland), an author of legislation creating the licensing system for medical marijuana dispensaries.

Becerra would likely be joined in any defense of the state’s marijuana policy by attorneys general in other parts of the country. Recreational use has also been legalized in Washington state, Colorado, Oregon, Alaska, Maine, Massachusetts and Nevada, home to a combined 68 million Americans.

Washington Atty. Gen. Bob Ferguson, who has worked with Becerra on opposing President Trump’s travel ban, said he and Democratic Gov. Jay Inslee last week asked for a meeting with U.S. Atty. Gen. Jeff Sessions to discuss how the recreational marijuana use system is working in their state.

California Lt. Gov. Gavin Newsom, a leading supporter of Proposition 64, took a similar approach, sending a letter Friday to Trump urging him not to carry through with threats to launch a federal enforcement effort. “I urge you and your administration to work in partnership with California and the other … states that have legalized recreational marijuana for adult use in a way that will let us enforce our state laws that protect the public and our children, while targeting the bad actors,” the Democrat wrote.

If the Justice Department starts arresting licensed marijuana sellers, the multibillion-dollar industry would join forces with the states that issue permits to challenge the action in court, said Amy Margolis, an attorney whose law firm has more than 200 clients in the marijuana industry, including businesses in California. “This industry is so mature and it’s so far along that I have no doubt that if the Department of Justice started true enforcement actions against cannabis businesses, that they would go to court,” Margolis said. “I see joint actions between the states and the industry hoping to prevent those type of actions.”

Margolis would argue that it is a states’ rights issue. “The argument would be that this is a situation where the states have the right to regulate and tax an industry the way they want,” she said, adding that states are gaining tax revenue to pay for government programs....

However, the states may find their hands tied legally if they try to keep federal agents from raiding and shutting down marijuana growing and sales operations, according to Adam Winkler, a professor at UCLA School of Law. “I imagine that California will mount a legal challenge to any crackdown on recreational marijuana,” Winkler said. “Yet there is not much California can do. Federal law is supreme over conflicting state law. Federal agents are entitled to enforce federal law anywhere in the country, including California.” He said there are limits to federal power, but the courts have held that the federal government does have the authority to enforce federal drug laws.

Aaron Herzberg, an attorney for the industry, agreed that the state would face a tough fight. He cited the 2005 case Gonzales vs. Raich, in which the U.S. Supreme Court found that under the Commerce Clause of the U.S. Constitution, Congress may criminalize the production and use of homegrown marijuana even if states approve its use for medical purposes. “Let's face it: If the federal government wants to shut down recreational marijuana they could quite easily accomplish it using federal law enforcement and taxation tools,” Herzberg said.

Others say one basis for legal action would be an argument that enforcing laws against marijuana would damage states that have put regulations in place and are depending on hundreds of millions of dollars in taxes to pay for government programs. States are too far down the path of regulating, licensing and taxing those who are making big investments in the sanctioned marijuana industry to pull the rug out now, said Richard Miadich, an attorney who co-wrote Proposition 64....

Because Spicer did not provide details on what an enforcement effort might look like, many in the industry hope it will focus on the illegal exporting of marijuana to other states, leaving alone state-licensed firms that grow and sell pot. “The biggest crackdown we may see is on the increase of cannabis being illegally exported out of recreational states,” said Nate Bradley, executive director of the California Cannabis Industry Assn.

Prior related post:

White House press secretary hints of "greater enforcement" by feds of marijuana prohibition in recreational marijuana states

February 25, 2017 in Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Political perspective on reforms, Recreational Marijuana Commentary and Debate | Permalink | Comments (2)

Thursday, February 23, 2017

White House press secretary hints of "greater enforcement" by feds of marijuana prohibition in recreational marijuana states

As reported in this Politico article, "White House press secretary Sean Spicer said Thursday that he expects states to see 'greater enforcement' of the federal law against marijuana use, a move that would be at odds with a growing number of states’ decisions to legalize it." Here is more:

Spicer, taking questions from reporters at the daily briefing, differentiated between the administration’s positions on medical marijuana and recreational marijuana. President Donald Trump “understands the pain and suffering that many people go through who are facing especially terminal diseases, and the comfort that some of these drugs, including medical marijuana, can bring to them,” he said, also noting previous action by Congress not to fund the Justice Department “go[ing] after those folks.”

As for “recreational marijuana, that’s a very, very different subject,” Spicer said.

Spicer suggested that the administration is opposed to encouraging recreational marijuana use and connected it with the crisis with opioid addiction in some areas. “When you see something like the opioid addiction crisis blossoming in so many states around this country, the last thing we should be doing is encouraging people,” he said.

The Department of Justice, Spicer said, will be “further looking into” the marijuana enforcement question, he said, punting questions about the specifics to the department. “I do believe that you'll see greater enforcement of it,” he said.

February 23, 2017 in Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (2)

Wednesday, February 22, 2017

New report projects extraordinary job growth in US marijuana industry

This new Forbes article, headlined "Marijuana Industry Projected To Create More Jobs Than Manufacturing By 2020," highlights some of the economic development potential that is forecast by some in the marijuana arena. Here are the details:

Jobs. That is what the marijuana industry hopes will keep the Trump administration from cracking down on cannabis companies.

A new report from New Frontier data projects that by 2020, the legal cannabis market will create more than a quarter of a million jobs. This is more than the expected jobs from manufacturing, utilities or even government jobs, according to the Bureau of Labor Statistics. The BLS says that by 2024 manufacturing jobs are expected to decline by 814,000, utilities will lose 47,000 jobs and government jobs will decline by 383,000. This dovetails with data that suggests the fastest growing industries are all healthcare related.

The legal cannabis market was worth an estimated $7.2 billion in 2016 and is projected to grow at a compound annual growth rate of 17%. Medical marijuana sales are projected to grow from $4.7 billion in 2016 to $13.3 billion in 2020. Adult recreational sales are estimated to jump from $2.6 billion in 2016 to $11.2 billion by 2020. New Frontier bases these projections on the markets that have already passed such legal initiatives and don't include additional states that could come on board by 2020....

“These numbers confirm that cannabis is a major economic driver and job creation engine for the U.S. economy,” said Giadha Aguirre De Carcer, Founder and CEO of New Frontier Data. “While we see a potential drop in total number of U.S. jobs created in 2017, as reported by Kiplinger, as well as an overall expected drop in GDP growth, the cannabis industry continues to be a positive contributing factor to growth at a time of potential decline. We expect the cannabis industry’s growth to be slowed down to some degree in the next three to five years, however with a projected total market sales to exceed $24 billion by 2025, and the possibility of almost 300,000 jobs by 2020, it remains a positive economic force in the U.S.”

New Frontier based its projections on analysis from the Marijuana Policy Group which was hired by Colorado for an economic analysis. According to annual surveys of cannabis professionals by the Marijuana Business Daily, the industry already employs 100,000 to 150,000 workers and nearly 90,000 are in plant-touching companies....

Many employees in the industry seem thankful for their jobs and are genuinely happy with their employment. The alternative culture appeals to many who have no interest in cubicle jobs or working for a big corporate giant. It is increasingly pulling professionals from more traditional industries who are looking for new challenges and different work environments. “The governments and the programs that they've instilled into these (legalized) states have created great job opportunities and excellent business opportunities for entrepreneurs,” said Mark Lustig, Chief Executive Officer of CannaRoyalty. “They've created the right competition.”

February 22, 2017 in Business laws and regulatory issues, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research | Permalink | Comments (0)

Tuesday, February 21, 2017

"Can Marijuana Ease the Opioid Epidemic?"

The question in the title of this post is the headline of this new Stateline piece.  Regular readers may be tired of my repeated emphasis on the possible connections between the nation's opioid problems and marijuana reform, but I continue to consider the story very important and I am especially troubled to see so little attention seemingly given to these matters by those on the front-lines of the opioid epidemic.  Here are excerpts from the Stateline piece (which discusses medical marijuana more generally):

In the midst of an opioid crisis, some medical practitioners and researchers believe that greater use of marijuana for pain relief could result in fewer people using the highly addictive prescription painkillers that led to the epidemic.

A 2016 study by researchers at Johns Hopkins Bloomberg School of Public Health found that states with medical marijuana laws had 25 percent fewer opioid overdose deaths than states that do not have medical marijuana laws. And another study published in Health Affairs last year found that prescriptions for opioid painkillers such as OxyContin, Vicodin and Percocet paid for by Medicare dropped substantially in states that adopted medical marijuana laws.

In December, the New York Health Department said it would start allowing some patients with certain types of chronic pain to use marijuana as long as they have tried other therapies. The state’s original medical marijuana law, along with those in Connecticut, Illinois, New Hampshire and New Jersey, did not include chronic pain as an allowable condition for marijuana use, in part over concerns that such a broad category of symptoms could result in widespread and potentially inappropriate use of the controversial medicine.

Advocates for greater use of medical marijuana argue that including chronic pain as an allowable condition could result in even further reductions in dangerous opioid use. But some physicians remain cautious about recommending the botanical medicine as a pain management tool.

Dr. Jane Ballantyne, a pain specialist at the University of Washington and president of Physicians for Responsible Opioid Prescribing, which promotes the use of alternatives to opioids for chronic pain, said she does not recommend that her patients try marijuana. “There is no doubt marijuana is much safer than opiates. So we don’t discourage its use.” But in general, she said, “non-drug treatments are far more helpful than any drug treatment, and marijuana is a drug.”

At Mount Sinai Hospital here in the city, Dr. Houman Danesh, director of integrative pain management, suggests patients try physical therapy, yoga, acupuncture, stem cell therapy, nutrition counseling, hypnosis and behavioral health counseling before resorting to opioids or any other medications. He said lack of sufficient research to back up marijuana’s safety and efficacy has kept him from adding it to his pain management toolkit, but he doesn’t rule it out in the near future....

Dr. Howard Shapiro, started certifying patients for marijuana about a year ago and quickly became a believer. He’s one of only 371 doctors out of nearly 33,000 in [New York] City’s five boroughs registered to certify patients for medical marijuana. Statewide, only 863 out of roughly 96,000 physicians have signed up for the program....

As a primary care doctor who takes a holistic approach to medicine, Shapiro said trying medical marijuana was a natural for him. But he said he worried that “a bunch of druggies would start showing up.” Instead, he said the patients he began seeing were all very sick and none of them appeared to be seeking drugs for fun. The improvement he saw in those first patients was remarkable, he said. “I really think medical marijuana is the drug of the future,” Shapiro said. “We’re going to find out that it does a lot of things we already think it can do, but don’t have scientific studies to prove it.”

Out of 109 patients he’s seen over the past year, all but a handful reported substantial improvement in their pain and other symptoms within a month or two of using medical marijuana, he said. For Shapiro’s patients, the cost of marijuana treatment ranges from $300 to $400 a month, depending on their level of use.

February 21, 2017 in Medical community perspectives, Medical Marijuana Commentary and Debate, Medical Marijuana State Laws and Reforms | Permalink | Comments (1)

Saturday, February 18, 2017

Highlighting free market fuzziness for GOP when marijuana involved

This Florida newspaper commentary by John Romano, headlined "Doesn't medical marijuana deserve a free market too?," effectively shines a light on the notable fact that the affinity of some Republican leaders for less government regulation and more marketplace freedom often wanes when the commodity at issue is marijuana.  Here is a portion of the commentary:

Around here, free market is the answer. And it doesn't even require an actual question.

Education gap? Let the business community fix it. Health insurance? Keep the government out of it. Minimum wage? Leave it up to the job creators. Yes, free market competition will always be the solution in Tallahassee.

Except when it comes to medical marijuana. Apparently, that's an industry in serious need of a government-sponsored cartel.

When first venturing into the marijuana business a couple of years ago, the state handpicked a small group of well-connected nurseries in a highly suspect procurement process. Now that a constitutional amendment has marijuana on the precipice of becoming a billion-dollar industry, the state is considering a plan to reward that same group of nurseries with a huge head start in the marketplace. And that contradicts everything our state leaders normally preach.

Think I'm exaggerating? State Sen. Rob Bradley, R-Fleming Island, recently introduced legislation to repeal the state's "certificate of need" programs for hospitals. The program allows the state to regulate where hospitals open, ostensibly to make sure private facilities do not cater to an affluent population and ignore the poor. Bradley calls it a "cumbersome process" used to "block expansion" and "restrict competition." He says eliminating the program will create jobs and drive down prices.

And yet Bradley is also the sponsor of a bill that restricts the number of nurseries allowed to produce medical marijuana, which critics say will create price gouging and limit available product. In effect, it would create the same problems Bradley says hamper the hospital industry....

Personally, I'm waiting for House Speaker Richard Corcoran to get involved.  This is a man who does not believe in compromising his principles. He's so committed to free market ideals in education that he called teachers "evil" for pushing back against the privatization of public schools.  He once said he would go to war to fight Obamacare's Medicaid expansion.

Not long ago, Corcoran laid out his political principles in a forceful speech: "No economic system has done more to benefit mankind than the free enterprise system … but when judges or legislatures or local governments continually rewrite the rules or attempt to pick winners and losers, that is when markets fail.  We need to reverse the damage that has been done, untangle the red tape and tear down all these barriers to entry."

Glad to hear it, Mr. Speaker. Looking forward to you joining the fight.

February 18, 2017 in Business laws and regulatory issues, Medical Marijuana Commentary and Debate, Medical Marijuana State Laws and Reforms | Permalink | Comments (0)

Wednesday, February 15, 2017

"Joint Culpability: The Effects of Medical Marijuana Laws on Crime"

The title of this post is the title of this notable new article posted to SSRN authored by Yu-Wei Luke Chu and Wilbur Townsend. Here is the abstract:

Most of the U.S. states have passed medical marijuana laws. In this paper, we study the effects of these laws on violent and property crime.  We first estimate models that control for city fixed effects and flexible city-specific time trends.  To supplement this regression analysis we use the synthetic control method which can relax the parallel trend assumption and better account for heterogeneous policy effects. 

Both the regression analysis and the synthetic control method suggest no causal effects of medical marijuana laws on violent or property crime at the national level.  We also find no strong effects within individual states, except for in California where the medical marijuana law reduced both violent and property crime by 20%.

February 15, 2017 in Criminal justice developments and reforms, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Medical Marijuana State Laws and Reforms | Permalink | Comments (0)

Monday, February 6, 2017

"State Legalization of Marijuana and Our American System of Federalism: A Historio-Constitutional Primer"

The title of this post is the title of this notable new paper authored by Brian Blumenfeld now available via SSRN. Here is the abstract:

Federal law, pursuant to the Controlled Substances Act, maintains a strict criminal prohibition on marijuana use of any kind.  In states that have legalized marijuana, and in states proposing to do so, a fundamental conflict arises between federal powers and state sovereignty.  This conflict implicates some of the most vital aspects of the structural constitution: the Commerce Power, the Necessary and Proper Clause, the anti-commandeering doctrine, and Supremacy Clause preemption.

In recent years a healthy scholarship has emerged to wrestle with the subject, providing insightful commentary and argument, but missing in the literature is an unabbreviated account of the major features of federalism that frame the legalization controversy.  Also missing is a historical background situating the CSA's marijuana prohibition within the American political-legal tradition.

This article provides the reader with an extensive constitutional and historical foundation for understanding what is now recognized as "the most pressing and complex federalism issue of our time."

February 6, 2017 in Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)

Saturday, February 4, 2017

Is the marijuana industry now "too big to jail"?

The question in the title of this post is prompted by this recent Los Angeles Times article, which is headlined "Trump's Justice Department may crack down on thriving pot industry, but is it too big to jail?".  Here are excerpts:

The election of Trump has shocked the marijuana industry into a state of high alert at a time it had planned to be gliding into unbridled growth. Trump’s nominee for attorney general, Alabama Sen. Jeff Sessions, is a longtime field lieutenant in the war on drugs with unabashed hostility toward pot. It was only 10 months ago that Sessions was scolding from the dais of a Senate hearing room that the drug is dangerous, not funny and that “good people don’t smoke marijuana.”

Now he is poised to set the direction on national drug enforcement policy at the same time that eight states, including California, have legalized recreational use of the drug. Some 60 million Americans are living in states where voters have opted to allow any adult to be able to purchase marijuana.

Business leaders ... are betting the rapid maturity of the cannabis industry has made it too big to jail. Even before new laws took effect permitting the recreational use of pot in the massive markets of California and Massachusetts, the legitimate pot business had dwarfed its 2011 size, when the Drug Enforcement Administration was still aggressively raiding medical marijuana vendors operating legally under state laws. Since then, President Obama’s Justice Department decreed that states should have freedom to pursue their own policies, and the legalization train seemed to have left the station.

But those who have been in the business since the early days of medical marijuana caution the legions of newcomers that federal busts and seizures could quickly make a comeback. Sessions very deliberately left that option open during his confirmation hearing. “There are people in this administration who will crush this industry if they see the opportunity,” said Steve DeAngelo, who is considered a guru among pot entrepreneurs. DeAngelo, owner of the bustling Harborside Health Center dispensary in Oakland, was among the first in the industry and he has experienced it all: surprise raids from armed federal agents, unending lawsuits, getting locked in a jail cell. “I don’t think people who don’t have firsthand experience with the irrationality of federal intervention understand what a threat we are facing.”

But it’s hard to see much anxiety watching the comings and goings inside DeAngelo’s dispensary, which these days looks more like a Whole Foods than the shady corner bodegas such operations long resembled. Well-mannered hipsters with encyclopedic knowledge of bud patiently serve customers as sommeliers might, explaining the intricacies of abundant varietals of reefer available to be consumed in ever-evolving ways. On one side of the room is an enticing display of pot-laced baked goods, opposite that is the kind of fancy kiosk where artisan granola bars or yogurt cups might be hawked in a high-end grocery; the millennials manning this one are pitching elegantly packaged microdoses of pot injected into dried blueberries and other goodies.

DeAngelo says Trump might just let it all be, pointing to mixed signals the president sent during the campaign. But DeAngelo sees an easy legal path for Sessions and other committed anti-drug warriors in the administration, including Vice President Mike Pence, to immediately throw the industry into chaos, should they chose to do so. A survey by Marijuana Business Daily suggests many pot entrepreneurs share his concern, with 20% saying they would curb expansion plans. Many more are putting planning off until they see where the White House is going.

“Most of us are holding our breath right now,” said Emily Paxhia, co-owner of a hedge fund that invests exclusively in the cannabis industry. Lately she has been making sure that each firm in her portfolio has a Plan B in case a federal crackdown comes. Can pot growing operations, for example, shift to micro-salad greens if the feds come knocking? Can vaporizers be sold to yoga enthusiasts consuming lavender? “We’re also starting to look at how some of the new technologies we are investing in could address needs in other countries if the U.S. becomes difficult,” Paxhia said, pointing to Canada, where she said federal embrace of recreational marijuana could open up a $22-billion market. Paxhia shared her outlook at the industrial San Francisco office space of one company in her portfolio, Meadow, which has built a digital platform through which marijuana dispensary offerings can be browsed, and products can be ordered and delivered with the ease of a service like GrubHub....

Across the bay in Oakland, a sober-looking team at a company called CW Analytical has just spent big on sophisticated new testing equipment that allows dispensaries to quickly measure the active ingredients and purity in all the pot products they sell. The company embodies how renewed federal busts would affect not just pot growers, but an entire class of lab technicians, scientists, digital engineers, marketers and other skilled professionals. “I would be lying if I told you it was not in the back of our minds,” said Emily Richardson, head of business development at CW. “We have been through a lot.” She said the firm lost a third of its business amid the last big round of federal raids in 2011. Back then, Jeff Linden wasn’t even in the trade. He was running a high-end kitchen cabinet firm. Now Linden has opened a dispensary in San Francisco’s Mission District that could be mistaken for an art gallery.....“Trump’s agenda is this long,” Linden said, stretching out his arms to make the point the new administration has bigger issues on its plate than him. “I think this industry is too big to roll back. Some people agree with me. Some are very nervous.”

My answer to the basic post question is that there are a whole lot of players who could be in line for a whole lot of trouble in the Trump Administration decides to go hard after the industry, but that the entire industry has too many elements and extensions to be completely destroyed even if that was the express desire of the Trump team. And, for a host of reasons, I think the Trump team (including future AG Sessions) is going to be eager to focus their resources elsewhere.

February 4, 2017 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)

Friday, February 3, 2017

New Textbook on Marijuana Law, Policy, and Authority

I’m happy to announce that my first-of-its-kind textbook on Marijuana Law, Policy, and Authority will soon be published by Aspen. It will be out in April (in e form) and May (in print). The teacher’s manual and a companion website will be available soon thereafter. Many thanks to Doug and others who have provided helpful feedback on this book over the last 2.5 years!

The book covers a lot of ground, befitting a field that implicates so many different areas of law. The first chapter of the book is now available on SSRN. That chapter provides more details about the book’s coverage and approach, and it also explains why this is such an interesting and worthwhile area of law to study – and not just for those who are interested in practicing in this burgeoning field.

Not coincidentally, I will be posting more this month (both here and at Prawfsblawg) on topics drawn from the book. My first post at Prawfsblawg briefly laid out the case for teaching and writing about marijuana law. Even though most people who read this blog are already sold on the subject, I’ll copy the relevant passage here:

“For one thing, state marijuana reforms and the federal response to them have sparked some of the most challenging and interesting legal controversies of our day. May the states legalize a drug while Congress forbids it? Even so, are state regulations governing marijuana preempted by federal law? Does anyone (besides the DOJ) have a cause of action to challenge them as such? Can the President suspend enforcement of the federal ban? Do state restrictions on marijuana industry advertising violate the First Amendment? These are just a handful of the intriguing questions that are now being confronted in this field.

Just as importantly, there is a large and growing number of people who care about the answers to such questions. Forty-three (43) states and the District of Columbia have legalized possession and use of some form of marijuana by at least some people. These reforms – not to mention the prohibitions that remain in place at the federal level – affect a staggering number of people. Roughly 40% of adults in the U.S. have tried marijuana, and more than 22 million people use the drug regularly. To supply this demand, thousands of people are growing and selling marijuana. In Colorado alone, for example, there are more than 600 state licensed marijuana suppliers. There are also countless third parties who regularly deal with these users and suppliers, including physicians who recommend marijuana to patients, banks that provide payment services to the marijuana industry, firms that employ marijuana users, and lawyers who advise all of the above.

All of these people need help navigating a thicket of complicated and oftentimes conflicting laws governing marijuana. Colorado, for example, has promulgated more than 200 pages of regulations to govern its $1 billion a year licensed marijuana industry. Among many other things, Colorado’s regulations require suppliers to carefully track their inventories, test and label their products, and limit where and how they advertise. These regulations are complicated enough but doubts about their enforceability (highlighted in the questions above) only add to the confusion and the need for informed legal advice.”

In the coming weeks, I will blog about some of the questions noted above. In the meantime, if you are interested in teaching a course or a unit on any aspect of marijuana law, contact me – robert<dot>mikos<at>vanderbilt<dot>edu -- I would be happy to chat.

February 3, 2017 in Assembled readings on specific topics, Books, Business laws and regulatory issues, Current Affairs, Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Medical Marijuana State Laws and Reforms, Political perspective on reforms, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms, State court rulings, Who decides | Permalink | Comments (2)

Thursday, February 2, 2017

"Patients Are Ditching Opioid Pills for Weed"

The title of this post is the headline of this notable new Atlantic article, and here are excerpts:

James Feeney, a surgeon in Connecticut, heard it from his patients. A few actually turned down his prescription for oxycodone, the popular opioid painkiller that has also gained notoriety with the opioid epidemic. His patients, Feeney recalls, would say, “Listen, don’t give me any of that oxycodone garbage. … I’m just going to smoke weed.”

“And you know what?” says Feeney. “Every single one of those patients doesn’t have a lot of pain, and they do pretty well.” Marijuana has worked well enough, anecdotally at least, that Feeney is following his patients’ lead and conducting a trial at Saint Francis Hospital and Medical Center in Hartford, CT. The state-funded study will compare opioids and medical marijuana for treating acute pain, such as that from a broken rib.

That distinction — acute pain from an injury — is also an important one. A small body of evidence suggests that medical marijuana is effective for chronic pain, which persists even after an injury should have healed and for which opioids are already not a great treatment. But now Feeney wants to try medical marijuana for acute pain, where opioids have long been a go-to drug.

“The big focus from my standpoint is that this is an attempt to end the opioid epidemic,” he says. Overdoses from opioids, which includes heroin as well as prescription painkillers like oxycodone and morphine, killed more than 30,000 people in 2015.

Marijuana might have a bigger role in curbing this drug abuse than previously thought. Its potential uses are actually threefold: to treat chronic pain, to treat acute pain, and to alleviate the cravings from opioid withdrawal. And it has the advantages of being much less dangerous and addictive than opioids.... Yasmin Hurd, a neuroscientist at Mount Sinai who has a license to study marijuana and its derivatives...in a small pilot study ... has found that cannabidiol can reduce the cravings of people addicted to heroin. “They relapse because they are in conditions that induce craving,” says Hurd. By controlling their anxiety, cannabidiol also seems to be controlling their cravings.

Hurd is now running a larger trial to investigate if the substance could help people addicted to heroin, and she published a recent review on cannabidiol’s role in curbing substance abuse....

Interestingly, patients already seem to be replacing opioids with marijuana for chronic pain. A handful of observational studies have also found correlations between states legalizing medical marijuana and a drop in painkiller prescriptions, opioid use, and deaths from opioid overdose. And in 2016, Dan Clauw and his colleagues published a survey of patients with chronic pain who started patronizing a medical marijuana dispensary. They cut their previous opioid use by two-thirds....

Clauw, who runs a pain lab at University of Michigan, says he would to like understand how marijuana quells pain on a molecular level, but getting the license has proved too big a hurdle.

Meanwhile, Feeney’s hospital trial for acute pain is able to get around the logistics issue of marijuana as a scheduled substance. Medical marijuana is legal in the state of Connecticut, but neither Feeney nor his hospital provides it directly to patients. Rather, a doctor certifies a patient to use marijuana, and the patient then picks it up at a dispensary or pharmacy. “The strains I have to select from are so pure and so potent that the stuff they get from the University of Mississippi pales in comparison,” says Feeney.

The trial, which was just got started, will enroll 60 patients with rib injuries in total—30 on marijuana, 30 on opioids. The doctors chose rib injuries to study because the pain lasts a predictable six weeks. Because of the study’s design, patients get to choose whether they use opioids and marijuana to control pain. So far, the hospitals has enrolled a handful of patients. They’ve all chosen marijuana.

Some prior related posts:

February 2, 2017 in Medical community perspectives, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research | Permalink | Comments (0)

Spotlighting the (inevitable?) mixture of marijuana, regulators, money and lobbying

The Hill has this notable lengthy article, headlined "Marijuana lobby goes mainstream," highlighting the . Here are excerpts:

In a sign that the budding marijuana industry is moving away from the fringes and into the political mainstream, into the political mainstream, a number of officials once tasked with managing the growing legal cannabis sector are leaving their government positions to take jobs in the sector.

Many are advising states and cities as voters loosen marijuana restrictions across the country. Others are becoming industry advocates, lobbying the former colleagues and coworkers they left behind to craft more favorable rules and regulations.

In Colorado, Andrew Freedman, once the state’s director of marijuana coordination, and Lewis Koski, who headed the state Marijuana Enforcement Division, teamed up to form a consulting firm that advises local and state governments on crafting new marijuana regulations. Laura Harris, Koski’s predecessor at the Marijuana Enforcement Division, took a post this month as director of the Colorado Cannabis Chamber of Commerce.

Manny Munson-Regala, who oversaw Minnesota’s medical marijuana program, now runs a consulting firm of his own. John O’Brien resigned his post overseeing New Jersey’s medical marijuana program to take a job as chief compliance officer of a New York cannabis company. And several former top officials at Washington State’s Liquor and Cannabis Board have left in recent years to form their own firms.

“That’s how America works. You work for the government, then you become a lobbyist,” said Ian Eisenberg, a leader in the legal marijuana industry who runs Uncle Ike’s, a dispensary in Seattle, Wash. “I don’t think it’s any different than the defense industry.”

Those who have made the jump from the government sector to the private sector say they offer a valuable service, both to governments that need to establish new rules and to the businesses that need to navigate complex regulatory schemes that have never been implemented before. “We’re the only ones to have stood this up before,” said Freedman, who now consults with governments looking to set up their regulatory structures. “There’s a real opportunity to come in and show lessons learned quickly.”...

But opponents of legalized pot, and some government transparency groups, say the relationship between the marijuana industry and its regulators should be treated like any other. “The revolving door from government to private sector isn’t anything new, but it represents the worst of our politics. This isn’t the paper clip or oven mitt lobby, this is the drug lobby,” said Kevin Sabet, who heads Smart Approaches to Marijuana, a group that opposes legalization. And we know that the pot lobby wants to make money, just like big tobacco executives do.”

Aaron Scherb, legislative affairs director at the government transparency group Common Cause, said states should implement a cooling-off period between the time when a regulator leaves government service and when he or she begins working on behalf of the industry. “These individuals are the most familiar with the rules and regulations of a particular industry, and their experience means they’re able to exploit loopholes,” Scherb said. “At least some minimal amount of time is appropriate so we can avoid this revolving door problem.”

At least one state, Minnesota, required its regulators to take a year off before returning to work in the field they oversaw. Munson-Regala, the former head of the state’s medical marijuana program, said that reminded him of other industries he helped regulate, like the insurance business. “Embedded in that one-year cooling off period was an understanding that regulators are in a good position to help folks who are being regulated, in part because they understand what it takes to be compliant,” Munson-Regala said in an interview.

The revolving door is just one of the ways an industry that was once seen as the domain of hippies is trying to professionalize. Just a few years ago, proponents of legalizing marijuana brought 1970s-era stoner icon Tommy Chong to Capitol Hill to woo lawmakers. Today, Chong is gone, replaced by a booming industry of cultivators and retailers — and the trade shows, consultants and lobbyists who offer services to boost their business.

On Tuesday, the National Cannabis Industry Association kicked off a two-day Seed to Sale trade show in Denver, focusing on business practices for producers and retailers. The group’s first trade show several years ago attracted 800 participants; this year, they expect 2,000 vendors — and 4,000 to 5,000 at the annual Cannabis Business Summit and Expo, said Taylor West, the group’s deputy director. In November, 10,000 people showed up to another trade show in Las Vegas. “This industry is not slowing down,” West said.

Around the country, hundreds of lobbyists are already bending lawmakers’ ears on marijuana measures. In Colorado alone, 81 lobbyists reported advocating on marijuana proposals before the state legislature, according to data filed with the Secretary of State’s office.

February 2, 2017 in Business laws and regulatory issues, Campaigns, elections and public officials concerning reforms, Medical Marijuana Commentary and Debate, Political perspective on reforms, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)