Tuesday, June 28, 2016
The title of this post is the headline of this notable new Atlantic piece. Here is how it gets started:
In this mountain town, which began allowing the recreational sale of marijuana in 2014, businesswomen and female entrepreneurs say they are launching marijuana-centric companies with the hope that they can avoid the glass ceiling some say prevented them from reaching board rooms and corner offices in other industries.
In the past several years, women have become a driving force in the growth of the cannabis industry here and across the United States. As one magazine cover proclaimed recently, “Legal marijuana could be the first billion-dollar industry not dominated by men.”
Numbers would seem to bear those sentiments out. According to Marijuana Business Daily, women make up about 36 percent of executives in the legal-marijuana industry, compared to about 22 percent of senior managers in other industries. Women hold just 4.2 percent of the CEO positions at S&P 500 companies. At tech companies like Google and Twitter, disproportionately few executives and engineers are women.
“It’s a new chance for many women who have been in the corporate world who couldn’t get to the next level,” said Becca Foster, an independent consultant with Healthy Headie, an in-home cannabis shop co-founded by Holly Alberti-Evans that goes by the tagline “the Mary Kay of Mary J.” A young mother of four, Foster worked as a senior implementation manager at Bank of America before going the cannabis consulting route. “It stalled out,” she said of her finance care; there was no clear way to balance both family and work.
June 28, 2016 in Business laws and regulatory issues, Medical Marijuana Commentary and Debate, Race, Gender and Class Issues, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)
Friday, June 24, 2016
Lots of notable marijuana politics and reform news from the states and Congress ... UPDATE: And from the DNC
Over at Marijuana.com, Tom Angell does a great job covering news on the marijuana reform law and politics front. These posts from this past week highlight why serious marijuana reform students should be following his work:
UPDATE: Here is another new item of note from the same source, with its starting text:
Democrats Approve Marijuana Platform Plank
Members of a Democratic National Committee panel responsible for drafting the party’s 2016 platform have approved a plank calling for broad marijuana law reform.
It reads: “We believe that the states should be laboratories of democracy on the issue of marijuana, and those states that want to decriminalize marijuana should be able to do so. We support policies that will allow more research to be done on marijuana, as well as reforming our laws to allow legal marijuana businesses to exist without uncertainty. And we recognize our current marijuana laws have had an unacceptable disparate impact, with arrest rates for marijuana possession among African-Americans far outstripping arrest rates among whites despite similar usage rates.”
June 24, 2016 in 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)
Thursday, June 23, 2016
These two recent newspaper article raise two good and challenging questions concerning the policies and practicalities soon now to become reality when Ohio's medical marijuana reforms formally become law in the coming months:
Monday, June 20, 2016
Bipartisan Medical Marijuana Research Act of 2016 gets support from most vocal opponents and supporters of reform
As reported in this WonkBlog posting via the Washington Post, two members of Congress known to marijuana reformers for different reasons are now teaming up to support new federal laws to advance marijuana research. The piece is headlined "Marijuana’s biggest adversary on Capitol Hill is sponsoring a bill to research … marijuana," and here are excerpts:
Rep. Andy Harris (R-Md.) is Congress's most vocal opponent of legal marijuana, having single-handedly spearheaded a provision blocking legal pot shops in the District of Columbia in 2014. Rep. Earl Blumenauer (D-Ore.), on the other hand, was recently named Congress's "top legal pot advocate" by Rolling Stone.
The two lawmakers couldn't be farther apart on marijuana policy, but they're teaming up this week to introduce a significant overhaul of federal marijuana policy that would make it much easier for scientists to conduct research into the medical uses of marijuana.
As Harris described it in an interview, the bipartisan Medical Marijuana Research Act of 2016 would "cut through the red tape" that currently makes it exceedingly difficult for researchers to obtain and use marijuana in clinical trials. As federal law currently stands, only one facility in Mississippi is allowed to produce marijuana used for research. "Because of this monopoly, research-grade drugs that meet researchers’ specifications often take years to acquire, if they are produced at all," Brookings Institution researchers wrote last year.
Beyond those difficulties, researchers wanting to work with the drug need to have their work approved by the Drug Enforcement Administration, the Food and Drug Administration and, in some cases, the National Institutes on Health. Those hurdles, and the amount of time it takes to jump over all of them, deter many researchers from doing work on marijuana. In one typical case, it took a team of scientists seven years to get full approval to conduct research into using marijuana to treat post-traumatic stress disorder among veterans.
But the bill sponsored by Harris, Blumenauer, Rep. Sam Farr (D-Calif.) and Rep. H. Morgan Griffith (R-Va.) would allow many more growers to produce marijuana for research. It would also remove levels of federal review for marijuana research projects and specify shorter windows for federal approval of the projects.
Crucially, it would also change the criteria by which the federal government allows marijuana research to proceed. "The federal government must grant an application for [approval] unless it's not in the public interest, rather than assuming it's not," Blumenauer said in an interview. "Reversing that presumption is huge."
Marijuana is currently listed under Schedule 1 of the federal Controlled Substances Act, the most stringent category of regulation. This bill would not change the schedule status of marijuana, but it would essentially create a "carve-out" within Schedule 1 for marijuana research, according to Harris. "Marijuana's actually different from other things in Schedule 1, which are all discrete chemicals," he said in an interview. "The plant is a combination of hundreds of compounds, so it needs to be treated separately from the other drugs in Schedule 1."
In a separate action, the DEA is currently considering whether to keep marijuana in Schedule 1, move it to a lower schedule, or de-schedule it entirely. But Harris says that process doesn't affect his thinking on this bill. "I'm not going to wait for the DEA to figure out what's going on," he said.
John Hudak, who studies marijuana policy at the Brookings Institution, calls the bill "a really creative approach by Congressman Blumenauer and his colleagues to effectively reschedule marijuana without having to reschedule it." He added, "It forces the government to make it easier for qualified legitimate researchers to get access to product and conduct that research."
Marijuana advocates used to tussling with Harris over his opposition to legal weed may be surprised to see him coming out forcefully in support of improved research. But as a doctor himself, Harris says researchers tell him that they can't do their jobs on account of federal red tape. "It's a Catch-22 that the research is difficult because of the strict rules, and the rules are strict because of the lack of research," he said. His thinking on the drug hasn't changed, he says: "I think medical marijuana should be much more strictly controlled than it is now." But, he adds, "as a physician I would never want to deny a medicine to a patient that has been shown, with scientific rigor, to help them."
June 20, 2016 in Federal Marijuana Laws, Policies and Practices, Medical community perspectives, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Who decides | Permalink | Comments (0)
Sunday, June 19, 2016
Regular readers perhaps growing bored of hearing me sing the praises of the work being done by the The Brookings Institution on the legal, political and social realities surrounding modern marijuana reform. But two great new Brookings papers (along with this live event about the papers) ensures that I will be continuing to talk about the must-read materials the folks there are continuing to produce. Here are links to the two papers and the summaries provided by Brookings:
Worry about bad marijuana — not Big Marijuana by John Hudak and Jonathan Rauch
Many critics and proponents of marijuana legalization alike have voiced concerns about the potential emergence of Big Marijuana, a corporate lobby akin to Big Tobacco that recklessly pursues profits and wields sufficient clout to shape regulation to its liking.
Although marijuana remains illegal under federal law, medical and/or recreational marijuana is now legal in more than two dozen states. As the federal government has largely tolerated state legalization, corporate capital and muscle have begun moving in on these new state markets. Such commercialization raises a new set of concerns about how industry dynamics may impact consumer behavior and potentially incur social costs.
In their new paper, “Worry about bad marijuana—not Big Marijuana,” John Hudak and Jonathan Rauch argue against alarmism. In analyzing the likely implications of the corporatization of marijuana, they conclude the following:
The marijuana industry will remain a diverse one even as large corporations emerge. The Big Marijuana rubric is more misleading than helpful as a guide to policy because it oversimplifies and stereotypes what is in reality a continuum of business scales and structures.
The marijuana industry is very unlikely to transform into something that looks like Big Tobacco during its notorious heyday. It is more likely that a commercial and regulatory model would look like the one governing alcohol, which is regulated primarily at the state level, combines mandatory with voluntary measures to police industry conduct, does a credible job of preventing antisocial and abusive commercial behavior, and has proven stable over time and broadly acceptable to the public and the industry.
Intelligently regulated and managed, Big Marijuana can be part of the solution. Corporatization, though not without its hazards, has considerable upsides. It brings advantages in terms of public accountability and regulatory compliance, product safety and reliability, market stability, and business professionalism.
Policy should concern itself with harmful practices, not with industry structure, and it should begin with a presumption of neutrality on issues of corporate size and market structure. Attempts to block corporatization are likely to backfire or fail. For policymakers, the concern should be bad marijuana, not big marijuana.
Bootleggers, Baptists, bureaucrats, and bongs: How special interests will shape marijuana legalization by Jonathan Rauch and Philip Wallach
Where there are markets, regulations, and money, special interests and self-serving behavior will not be far away. So argue Philip Wallach and Jonathan Rauch in this new paper that examines how special interests are likely to shape marijuana legalization and regulation in the United States.
Why did legalization of marijuana break through in the face of what had long been overwhelming interest-group resistance? In a post-disruption world, how might key social and bureaucratic actors reorganize and reassert themselves? As legalization ushers in a “new normal” of marijuana-related regulation and lobbying, what kinds of pitfalls and opportunities lie ahead? In this paper, Wallach and Rauch address those questions through the prism of what political economists often call the theory of public choice—the study of how interest groups and bureaucratic incentives influence policy outcomes. Their conclusions include:
For many years, the marijuana-policy debate was dominated by an “iron triangle” of anti-legalization interests: moralists and public-health advocates who believe marijuana use is wrong or harmful; commercial and gray-market interests with stakes in drug treatment and medical marijuana; and law-enforcement and quasi-governmental entities whose budgets and missions are sustained by the war on drugs. Those interests’ combined firepower stunted change even as public support for marijuana prohibition softened.
To make possible the wholesale disruption that has happened with marijuana legalization, public opinion change was necessary, but it was not sufficient. Also required was the disruption of the iron triangle. That was accomplished in the late 2000s through a shrewdly crafted campaign of “asymmetric warfare” that aimed money and argumentation at the incumbent coalition’s weakest points. In particular, reformers shifted the public’s focus from harms of marijuana use to harms of marijuana criminalization.
The rise of commercial marijuana interests and a potentially controversial “marijuana lobby” may impede legalization’s momentum as its opponents change the subject once again, from harms of criminalization to harms of corporate predation.
The present disrupted regulatory environment is unlikely to last. Old prohibitionist interests are discombobulated and new commercial-marijuana interests are still getting organized, giving legalizing states a degree of regulatory freedom which is exceptional but probably not durable. Over time, multiple interests will coalesce and colonize the regulatory process.
Despite widely touted concern that one or more disproportionately powerful players will dominate the regulatory system, regulatory incoherence should be a greater concern than regulatory capture. As policymakers increasingly need to navigate complex and conflicting interest-group politics, the result is at least as likely to be overregulation and misregulation as it is to be systematic underregulation.
June 19, 2016 in Business laws and regulatory issues, History of Alcohol Prohibition and Temperance Movements, History of Marijuana Laws in the United States, Medical Marijuana Commentary and Debate, Political perspective on reforms, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)
Saturday, June 18, 2016
Regular readers know that one aspect of the burgeoning marijuana industry that I find especially interesting is the role that women can and will play within a new modern industry that has little legitimate business history and thus has little history of traditional gender discrimination in its businesses. Against this backdrop, this lengthy new article from the Baltimore Sun caught my attention this weekend. The piece is headlined "Women see no ceiling in Maryland medical marijuana industry," and here are excerpts:
Maryland's long-promised medical marijuana industry doesn't exist yet, and that's precisely why more than 60 women, mostly dressed like a PTA crowd, banded together there — to rise to the top before anyone gets in their way. "How vital are women to the success of the cannabis business in Maryland? If you're asking, I probably don't want to talk to you," said Megan Rogers, a co-founder of the Baltimore chapter of Women Grow and an applicant to open a dispensary. "We're here to ensure that the cannabis industry has no glass ceiling."
As the state considers hundreds of pending medical marijuana licenses, the women gathered to network, celebrating the opportunity to create an industry from scratch. Dozens of the organization's members have applied to grow marijuana or open dispensaries or processing businesses. Others plan to sell specialized marijuana containers, offer legal services, do product testing or provide event planning for women who secure a coveted license.
There is more collaboration than competition, the women say. There's no snatching of ideas or secretive cloaking of business plans, no assumptions that they need to get in line behind men to get ahead. "We have an opportunity to take an industry, from the ground up, and insert women in the upper echelons," said Carissa Cartalemi, a co-founder of the group and a holistic therapist who applied for a dispensary license with Rogers. "I do think there's something very feminine to that spirit of collaboration."
Women's marijuana business groups have grown by leaps and bounds as 25 states across the country have legalized some form of medical marijuana, and four states and the District of Columbia have approved recreational cannabis.
Women Grow began in Denver two years ago and now includes more than 45 chapters in the United States and Canada. Its conference in February attracted 1,300 people and was headlined by singer and marijuana activist Melissa Etheridge.
Women are much less likely to become entrepreneurs than men. In Maryland, women are half as likely as men to own their own businesses, according to the Kauffman Index of Entrepreneurship, which tracks business activity across the country. A survey released this month showed women hold 91 of the 630 board seats of Maryland companies that trade on one of the three stock exchanges — less than 14 percent of board seats and well under the national average. Other new industries — including the booming tech field — have largely been dominated by men, who worked disproportionately in the academic fields that fed those industries.
But women in Maryland and across the country see a different landscape in the emerging cannabis industry, which was born out of the advocacy community that persuaded legislatures to legalize it. "This is an industry that was led by a movement, by both women and men," said Giadha Aguirre DeCarcer, a former venture capitalist who launched a Washington-based cannabis market research company. DeCarcer is familiar with Women Grow but not active in the Baltimore chapter.
"There are no barriers to entry, but also no glass ceiling," said DeCarcer, CEO and founder of New Frontier Financials. "There hasn't been time for a good-ol'-boys club to develop. … The culture is very different because it stems from a movement."
Jessica White, 48, runs a holistic health center in White Marsh and applied for four dispensary licenses and a kosher processing license — she can hold only one, but was trying to increase her chances of being selected from among the 811 applications for just 94 licenses. "My market is 65-plus, chronic pain, not candidates for surgeries," White said. "We're talking little old church ladies."
White attends meetings of several other medical cannabis organizations, too, but said the vibe is different with the Women Grow crowd. "In a lot of the other groups I'm friendly with, it's a bunch of old white guys," White said. "A lot of the men in the industry keep things to themselves. Here, it's 'I'm Jessica. I want to open a dispensary. What about you?'"...
Elkridge-based Cannaline sponsored a season's worth of Women Grow events, which allows its saleswoman, Carrie Kirk, to hand out free samples of the company's marijuana packaging options as attendees clink glasses of house wine. Kirk worked for 17 years in pharmaceutical sales and management but now works up and down the East Coast selling Cannaline's marketing products, custom odor-proof bags and child-resistant packaging.
Even though more states east of the Mississippi are launching medical marijuana markets, she said, it's very tightly regulated and the industry here feels very different than that on the West Coast. "We have to do things more conservatively here," she said. A Women Grow event allows her to reach a lot of potential customers in an industry that lacks access to traditional advertising.
In a back corner of the Women Grow event, former regulatory lawyer Leah Heise was holding court at the center of a ring two people deep, enthusiastically connecting people. An illness that would have been more easily treated with medical marijuana than opioids took her out of the workforce for more than a decade, she said. Now that a surgery alleviated the underlying cause of her debilitating pain from chronic pancreatitis, she's rejoined the working world and fashioned a new career as a mentor and attorney for companies trying to navigate Maryland's newest industry.
She's president of Chesapeake Integrated Health Institute, and says Women Grow offers not only camaraderie but also a resource she can't find elsewhere. "This is the only place where someone can come to learn anything. Anything!" she said. She turned her attention to a woman who spent her career working at spas but was looking for a way into the medical marijuana industry. Heise enthusiastically took her card. "Someone like her would be incredible as a dispensary manager," she said. "It's a whole new era, and the industry will be huge."
Some prior related posts:
- Women & Weed: Blazing A Trail Toward Nationwide Legalization
- Could (and will) women executives become dominant leaders in the marijuana industry?
- "Whoopi Goldberg Launches Medical-Marijuana Products Targeted at Menstrual Cramps"
Friday, June 17, 2016
I am not sure when and how we will know for sure that the marijuana industry has gone entirely mainstream, but this new article appearing on the front-page of the New York Times seems like a tipping point moment. The lengthy article, as appearing on-line, is headlined "The First Big Company to Say It’s Serving the Legal Marijuana Trade? Microsoft." (Apparently in the printed paper the headline was "Microsoft Dips Toe Into Trade on Marijuana.") Here are excerpts from the lengthy piece:
As state after state has legalized marijuana in one way or another, big names in corporate America have stayed away entirely. Marijuana, after all, is still illegal, according to the federal government.
But Microsoft is breaking the corporate taboo on pot this week by announcing a partnership to begin offering software that tracks marijuana plants from “seed to sale,” as the pot industry puts it.
The software — a new product in Microsoft’s cloud computing business — is meant to help states that have legalized the medical or recreational use of marijuana keep tabs on sales and commerce, ensuring that they remain in the daylight of legality.
But until now, even that boring part of the pot world was too controversial for mainstream companies. It is apparent now, though, that the legalization train is not slowing down: This fall, at least five states, including the biggest of them all — California — will vote on whether to legalize marijuana for recreational use.
So far, only a handful of smaller banks are willing to offer accounts to companies that grow or sell marijuana, and Microsoft will not be touching that part of the business. But the company’s entry into the government compliance side of the business suggests the beginning of a legitimate infrastructure for an industry that has been growing fast and attracting lots of attention, both good and bad.
“We do think there will be significant growth,” said Kimberly Nelson, the executive director of state and local government solutions at Microsoft. “As the industry is regulated, there will be more transactions, and we believe there will be more sophisticated requirements and tools down the road.”
Microsoft’s baby step into the business came through an announcement on Thursday that it was teaming up with a Los Angeles startup, Kind, that built the software the tech giant will begin marketing. Kind — one of many small companies trying to take the marijuana business mainstream — offers a range of products, including A.T.M.style kiosks that facilitate marijuana sales, working through some of the state-chartered banks that are comfortable with such customers.
Microsoft will not be getting anywhere near these kiosks or the actual plants. Rather, it will be working with Kind’s “government solutions” division, offering software only to state and local governments that are trying to build compliance systems.
But for the young and eager legalized weed industry, Microsoft’s willingness to attach its name to any part of the business is a big step forward. “Nobody has really come out of the closet, if you will,” said Matthew A. Karnes, the founder of Green Wave Advisors, which provides data and analysis of the marijuana business. “It’s very telling that a company of this caliber is taking the risk of coming out and engaging with a company that is focused on the cannabis business.”...
It’s hard to know if other corporate giants have provided their services in more quiet ways to cannabis purveyors. New York State, for instance, has said it is working with Oracle to track medicinal marijuana patients. But there appears to be little precedent for a big company advertising its work in the space. It is still possible — though considered unlikely — that the federal government could decide to crack down on the legalization movement in the states.
The partnership with Kind is yet another bold step for Microsoft as its looks to replace the revenue from its fading desktop software business. On Monday, it announced that it was buying LinkedIn. Microsoft has put a lot of emphasis on its cloud business, Azure. The Kind software will be one of eight pieces of preferred software that Microsoft will offer to users of Azure Government — and the only one related to marijuana.
The conflict between state and federal laws on marijuana has given a somewhat improvisational nature to the cannabis industry. Stores that sell pot have been particularly hobbled by the unwillingness of banks to deal with the money flowing through the industry. Many dispensaries have been forced to rely on cash for all transactions, or looked to startups like Kind, with its kiosks that take payments inside dispensaries.
Governments, too, have generally been relying on smaller startups to help develop technology that can track marijuana plants and sales. A Florida software company, BioTrackTHC, is helping Washington State, New Mexico and Illinois monitor the marijuana trade inside their states....
The opening up of the market in California is already leading to a scramble for the big money that is likely to follow, and Microsoft will now be well placed to get in on the action. Ms. Nelson of Microsoft said that initially her company would be marketing the Kind software at conferences for government employees, but it could eventually also be attending the cannabis events where Kind is already a regular presence. “This is an entirely new field for us,” she said. “We would have to figure out which conference might be the premier conference in this space. That’s not outside the realm of possibility.”
June 17, 2016 in Business laws and regulatory issues, History of Marijuana Laws in the United States, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate, Web/Tech, Who decides | Permalink | Comments (0)
Thursday, June 16, 2016
New Drug Policy Alliance report highlights problems with access and data in New York medical marijuana program
Earlier this week the Drug Policy Alliance this notable new report detailing and lamenting that New York's medical marijuana program is too restrictive and that information about the program is not readily available. This DPA press release reports on some of the report's findings, and here are excerpts from the press release:
The Drug Policy Alliance issued a report assessing the first four months on the state’s medical marijuana program. The report is in response to demand for information in the face of the absence of all but the most limited public information from the New York State Department of Health. The report, the first systematic assessment of the program so far and its impact on patient access, found patients and caregivers face significant barriers to accessing medical marijuana.
On January 7th 2016, New York became the 23rd state to rollout its medical marijuana program. The law, which was passed in June of 2014, took eighteen months to implement and has been criticized as being one of the most restrictive and burdensome programs in the country. Since the program was launched, patients and advocates have been frustrated by numerous barriers to accessing the program, including difficulty finding participating physicians, trouble accessing dispensaries and medication, and affordability.
The Department of Health has released only limited data about how the program is performing, offering little more than updates on the number of patients and doctors who have completed registration applications. Working with Compassionate Care NY, the state’s largest grassroots organization of patients and caregivers, the Drug Policy Alliance surveyed 255 people who had sought to access the state’s medical marijuana program.
According to the report, one of most pressing problems is that patients are struggling to find health care providers who are participating in the program. According to DOH, as of June 9th, only 593 physicians New York physicians registered to certify patients for medical marijuana – less than 1% of all physicians in New York. Because there is no publicly available list of participating physicians, patients are forced to cold-call doctors in hopes of finding one or go through social media or other potentially unreliable sources.
More than half of patients and caregivers surveyed in the DPA report had not yet found a doctor to certify them, and among those, 3 out of 5 have been trying for 3 to 4 months to locate a registered physician.
Geographic inaccessibility is another barrier compounding problems of patient access to medicine. Under the law, only five producers are licensed to grow medical marijuana in New York, and each can only operate 4 dispensaries. This means that for a state of almost 20 million people and 54,000 square miles, there are only 20 dispensaries allowed (of which only 17 dispensaries have opened, to date). Patients, many of whom are very sick and disabled, must travel hours in some cases to get to a dispensary. According to findings from the survey, 27% of registered patients/caregivers travelled for 1 to 5 hours to access a dispensary, while nearly 2 out of 5 reported that the dispensary they visited did not carry the specific kind of medical marijuana that was recommended to them by their physician.
Another major finding of the report is the unaffordability of medicine. For respondents who had obtained medicine, 70% indicated that their monthly cost would be $300 and above, and more than 3 in 4 patients and caregivers who purchased medicine from a dispensary, stated that they would not be able to afford the monthly cost of medicine.
DPA’s report calls on the New York State legislature to pass bills currently pending in Albany that would amend the Compassionate Care Act, New York’s medical marijuana law, and improve access to medicine for those in need.... “New Yorkers deserve more transparency and information about how the state’s medical marijuana program is performing,” said Julie Netherland, PhD, of the Drug Policy Alliance and Compassionate Care NY. “Our data confirms what we have heard from patients and caregivers for months – New York’s program is not easily accessible, and even for patients who manage access the program, most cannot afford the medication. We urge the legislature to act quickly and pass these bills to improve the program so patients in need can get relief.”
Thursday, June 9, 2016
As reported in this AP article, headlined "Ohio Becomes Latest State to Legalize Medical Marijuana," the Buckeye State is now officially a medical marijuana state. Here are the basics:
Republican Gov. John Kasich signed a bill Wednesday legalizing medical marijuana in Ohio, though patients shouldn't expect to get it from dispensaries here anytime soon. The bill lays out a number of steps that must happen first to set up the state's medical marijuana program, which is expected to be fully operational in about two years. The law would allow patients to use marijuana in vapor form for certain chronic health conditions, but bar them from smoking it or growing it at home.
Kasich's signature made Ohio the 25th state to legalize a comprehensivemedical marijuana program, according to a count by the National Conference of State Legislatures. [Editor's Note: I think this is really the 26th state, because after recent reforms Louisiana's should be part of this count.] ...When the law takes effect in 90 days, cities and towns could move to ban dispensaries or limit the number of them. Licensed cultivators, processors, dispensaries and testing laboratories could not be within 500-feet of schools, churches, public libraries, playgrounds or parks. Employers could continue to enforce drug-testing policies and maintain drug-free workplaces. Banks that provide services to marijuana-related entities would be protected from criminal prosecution....
A newly created Medical Marijuana Advisory Committee will help develop regulations and make recommendations. The governor and legislative leaders must appoint people to the 14-member panel no later than 30 days after the bill's effective date. Its members will represent employers, labor, local law enforcement, caregivers, patients, agriculture, people involved in mental health treatment and people involved in the treatment of alcohol and drug addiction. Others include a nurse, academic researcher, two practicing pharmacists and two practicing physicians. No more than six members can be of the same political party. The bill dissolves the committee after five years and 30 days....
The legislation specifies that the medical marijuana program is to be fully operational within two years of the bill.... The Ohio Department of Commerce, State Medical Board and Board of Pharmacy will all play a role. The Commerce Department will oversee licensing of marijuana cultivators, processors and testing labs. The Pharmacy Board will license dispensaries and register patients and their caregivers, and set up a hotline to take questions from patients and caregivers. The Medical Board would issue certificates to physicians seeking to recommend treatment with medical marijuana.
Some prior related posts about Ohio's recent legislative and regulatory medical marijuana activity:
Tuesday, June 7, 2016
Minnesota Dept of Health survey shows patients and health-care providers report benefits from medical marijauna including reduced opioid use
This local article, headlined "Most Minnesota medical marijuana patients, and their practitioners, find treatment beneficial," reports on some positive results from early surveys of participants in Minnesota's medical marijuana program. Here are basics from the press report (with links from the original, and my emphasis added):
Almost all patients participating in Minnesota’s medical marijuana program say they are benefiting from the treatment, according to the results of a Minnesota Department of Health (MDH) survey released Monday. Most of the patients’ health-care providers agree, although they tend to be more modest with their assessment of the treatment’s therapeutic benefits, the survey also found.
“This was certainly not a clinical trial. It can’t answer questions about effectiveness,” said Dr. Thomas Arneson, research manager for the MDH’s Office of Medical Cannabis, in a phone interview with MinnPost. “But I was impressed by the high level of benefit reported,” he added. “We heard from 55 percent of the patients, which is pretty good. So even if it was a lower presumption of benefit among the others who didn’t respond, it was still pretty substantial.”
MDH sent the survey to the 435 patients who purchased medical marijuana during the first three months of the state’s program (July 1 to Sept. 30, 2015) and to the 345 health-care practitioners, including physicians, physician assistants and nurse practitioners, who certified them as being eligible for the treatment. The survey asked the patients and the practitioners to rate the level of benefit received from the use of medical marijuana on a scale of 1 (no benefit) to 7 (a great deal of benefit).
Surveys were completed by 241 (55 percent) of the patients and by 94 (27 percent) of the health-care practitioners. The perception of benefit was high in both groups. Almost 88 percent of the patients and 68 percent of the health-care practitioners reported at least some benefit to the patient (a score of 4 or higher) from the treatment. A “significant” level of benefit (a score of 6 or 7) was reported by 66 percent of the patients and 46 percent of the practitioners.
The top three conditions for which the patients surveyed had been prescribed medical marijuana were severe muscle spasms, seizures and cancer. Although benefits were reported for all of those conditions, patients with cancer reported the highest scores, while the practitioners indicated that they had observed the greatest benefit from the treatments among their patients with muscle spasms.
The practitioners’ reports of benefit for all the conditions were generally more conservative than those of the patients. “The patients were a little bit higher on the more subjective quality-of-life benefits than the healthcare practitioners were,” said Arneson. “The clinicians tended to respond more with things that were measurable, that were objective,” he added.
One interesting benefit reported by the practitioners was a reduction in the need for other pain medications. Twelve said their patients were able to reduce their pain medication dosage as a result of the marijuana, including at least six who were able to decrease their use of prescription opioids.
About 20 percent of the surveyed patients and 16 percent of the surveyed practitioners reported patient side effects from the marijuana treatment — a finding that mirrors what has been observed in research conducted elsewhere, said Arneson. In the MDH survey, the side effects included hives, stomach pains, dizziness, fatigue, a burning sensation in the mouth and paranoia. None of the side effects were life-threatening, although four patients (2 percent) reported an increase in seizures.
Despite the survey's overall positive results, not everybody who receives medical marijuana treatment for one of the qualifying conditions is going to benefit from it, Arneson emphasized. “How much of this is the placebo factor, we don’t know, although it’s probably quite a bit of it,” he said. “Cannabis is not a miracle drug,” he added.
Still, the survey suggests that whether or not the placebo effect is in play, many patients believe medical marijuana is helping to ease their symptoms. “These are individual persons, individual lives, many of whom are having great difficulties in their lives because of their medical conditions,” said Arneson. ...
FMI: The MDH’s report on the survey was published online in the June issue of Minnesota Medicine magazine, where it can be read in full. The complete survey results — including specific comments from patients about the effects of the treatment on their medical condition — can be found on MDH’s Office of Medical Cannabis website.
Monday, June 6, 2016
The title of this post is the title of this notable new article authored by Benjamin Leff and now available via SSRN. Here is the abstract:
Over a year ago (March 7, 2015), a little store called the Cannabis Corner opened up in the small town of North Bonneville, Washington, about an hour by car from Portland, Oregon. The Cannabis Corner is the first marijuana store to be operated by a “public development authority,” an independent entity created by a state or local government. Public development authorities are generally exempt from federal income taxes under section 115 of the Internal Revenue Code. For a marijuana business, this exemption is especially valuable because section 280E of the Code currently prevents marijuana businesses from deducting many of the ordinary expenses other businesses regularly deduct, resulting in extremely high federal income taxes.
This Article is the first to address whether independent governmental affiliates that sell marijuana are exempt from federal income tax under section 115 of the Internal Revenue Code. It argues that such entities should easily pass the IRS’s current interpretation of the three requirements for tax-exemption under section 115: (i) that exempt income be derived from “the exercise of any essential governmental function;” (ii) that such income “accru[e] to a State or any political subdivision thereof;” and (iii) that the income “not serve private interests[.]” In addition, this Article argues that the fact that selling marijuana is illegal under federal law is not a bar to exemption under section 115 of the Code the way it is under section 501(c)(3).
Tax exemption for public development authorities that sell marijuana is important because of the non-tax benefits of a marijuana market dominated by government sellers. Some of these benefits exist when governments are participants in a marijuana market that is open to private sellers as well, such as is the case in North Bonneville, Washington. This Article also explores the benefits that might accrue if a state chose to create a regulatory regime for legalizing marijuana in which all marijuana selling took place in government-owned stores. Many states have experimented for years with state control of liquor sales, but there are reasons to believe that marijuana may be significantly more suited to a state-controlled market than alcohol, at least for a transitional period. The question of whether an independent governmental affiliate is exempt from federal income tax, including section 280E, is especially important to governments contemplating the contours of their legal marijuana markets.
June 6, 2016 in Business laws and regulatory issues, Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate, Taxation information and issues | Permalink | Comments (0)
Disappointingly, though local media (especially in recreational marijuana reform states) have done a decent job covering the basics of marijuana policy and practice developments, precious few mainstream national media outlet have given this important topic nearly the time and attention that I think the topic merits. The notable exception here is Forbes, which appears to have a diverse array of reporters and commentators writing about a diverse array of important marijuana reform stories. Here are links to just some of the important pieces that Forbes has put out in recent weeks coming from a number of different contributors:
Louisiana universities and businesses now clearly think the Bayou State is a serious medical marijuana reform jurisdiction
There has been some enduring debate and uncertainty as to whether Louisiana should "count" as one of the two-dozen-plus states that have enacted significant medical marijuana reforms. For a number of reasons, and especially since recent legislative reforms to the state's medical marijuana rules, I think Louisiana should count in any accounting of such states. And this recent local article, headlined "Louisiana gearing up for marijuana business: How much might LSU, Southern, companies profit? How will it be distributed?," suggests that now shortage of Louisiana officials and institutions are now considering the state's work in this space very seriously. Here are highlights from the interesting article:
Growing up on a cotton farm in Missouri in the 1950s, Bill Richardson didn’t know a thing about marijuana. Nobody talked about it, he never saw it and he certainly never smoked it. “I didn’t inhale,” Richardson, LSU’s 71-year-old vice president for agriculture and dean of the College of Agriculture, said with a smile in a recent interview.
Richardson has become the unlikely leader of an effort to get LSU into the pot business. Last month, the Louisiana Legislature approved a bill that legalizes the use of marijuana for people suffering from a specific list of debilitating diseases. The so-called medical marijuana legislation authorizes LSU and Southern University to grow and produce cannabis to be consumed in a liquid form. (Hold the “Cheech and Chong” jokes — it cannot be smoked, and no, they won’t be offering samples.)
The boards of both universities appear likely to give the go-ahead for pot cultivation. It’s not clear yet, however, who will provide the $10 million to $20 million needed to produce the drug, which will be sold at 10 standalone pharmacies designated by a state agency. None of the people wanting to be treated by pot will have access to it for at least 18 months.
When the Legislature legalized marijuana for patients suffering from 10 specific diseases, lawmakers told emotional stories about the children and loved ones who stood to benefit. Opponents, meanwhile, warned darkly that Louisiana was heading down a slippery slope toward legalizing a dangerous drug. Lost in the debate is what the measure will mean for LSU and Southern — and the private companies that are now emerging to try to profit from the new industry by partnering with the universities.
The legislation by state Sen. Fred Mills, R-Parks, gave LSU and Southern no money to launch this new venture, meaning they will have to rely on private companies to buy the seeds, hire scientists, rent or build growing facilities and pay for all the other costs. “All of the money would have to come from venture capitalists, or you’d have to sell bonds,” said Adell Brown, the point person at Southern as the university’s interim chancellor for its Agricultural Research and Extension Center. Neither Brown nor Richardson can say yet how much it will cost to get the business running at full speed, but both agree that it probably will take at least $10 million.
Brown and Richardson both report getting calls from representatives of companies that want to rent or sell land or provide a growing facility. Others are inquiring about financing the entire venture with the expectation of earning a profit. “It’s a money-making venture,” Brown said.
Neither he nor Richardson knows yet where they might grow the pot, but the universities are not likely to do it together. (The Legislature has authorized them to cultivate the marijuana because of federal laws prohibiting the transport of marijuana across state lines.) The University of Mississippi grows marijuana for research under a special federal license on the edge of its campus, in a field surrounded by two fences and armed guards, said an Ole Miss spokesman. “My recommendation is that it not be grown on campus, for the PR,” Richardson said.
He expects that LSU’s Board of Supervisors will authorize the growing of marijuana at its June 24 meeting. “It’s something we can do,” Richardson said, adding that he sees this as an opportunity for the university to duplicate its pioneering work with rice and other crops. Besides, “over the past year, I’ve heard enough testimonials of the medicinal effects to believe that the benefits outweigh the negatives. Plus, there may be some opportunities to create an income stream to help us balance our budget.”
Brown said he expects Southern’s board to approve the venture at either its June or July meeting. “It will be a highly sophisticated and self-controlled facility with the proper protocols for security,” he said. “We have faculty members who have done work with a lot of different crops that are of the same family.”...
While LSU and Southern are gearing up, several state entities are working to provide the regulatory framework for everyone who wants to be involved. The Louisiana State Board of Medical Examiners already has drafted its rules for doctors who want to apply to treat patients suffering from cancer, multiple sclerosis, epilepsy and seven other diseases, including HIV and AIDS. No doctor can treat more than 100 patients, said Eric Torres, the executive director of the medical board. Mills’ legislation, Senate Bill 271, requires doctors to “recommend,” not “prescribe,” the drug, to get around federal laws.
The state Department of Agriculture and Forestry is drafting rules that will govern the growing and production of the medical marijuana. The Legislature has authorized money for the agency to hire outside labs to make sure the marijuana is free of pesticides and heavy metals and has the least possible THC — the active ingredient that makes people high — and to hire staff to regulate the new business. “We have to make sure that end product is safe,” Agriculture Commissioner Mike Strain said in an interview.
The end product is what the patients actually will buy. “The marijuana cannot be inhaled,” said Jesse McCormick, of the Louisiana Cannabis Association, who lobbied to pass SB271. “It could be a cream. It could be in liquid form — tincture. It could be a gel cap. It could be a vitamin gummy. If you’re going to a dispensary to find ‘bud’ — well, you won’t.” The Louisiana Board of Pharmacy will decide on the drug’s final form and is leaning in favor of allowing LSU and Southern to make that decision. “Let the producers be as creative as they wish,” said Malcolm Broussard, the executive director of the board.
The 17 members of this Baton Rouge-based board — who are appointed by the governor to six-year terms — also will decide who will operate the 10 pharmacies throughout Louisiana that will sell the medical marijuana. Under state law, they cannot be part of a normal drugstore, although Broussard said it’s possible that the therapeutic drug could be sold in a convenience store. That store could not also sell prescription drugs, but it could offer over-the-counter drugs, he said.
Next year’s licensing decision will put a spotlight on a board so obscure that Broussard said he had never before been interviewed by an Advocate reporter during 17 years as executive director.
June 6, 2016 in Business laws and regulatory issues, Medical community perspectives, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Medical Marijuana State Laws and Reforms | Permalink | Comments (0)
Latest poll numbers show continued strong support for marijuana legalization among independents and younger voters
This new Politico article, headlined "National poll: Majority supports legalizing marijuana," provides a review of the latest Quinnipiac University poll asking registered voters their views on marijuana reform policies. And the demographic breakdowns show, yet again, why politicians who adamantly oppose reform will do so at their peril unless their voting poopulation is older and heavily GOP affiliated. Here are the basics (with my emphasis added):
Slightly more than half — 54 percent — said the use of marijuana should be made legal across the country, while 41 percent said it should not. The results broke down along partisan lines, with 65 percent to 30 percent of Democrats in support and 62 percent to 36 percent of Republicans in opposition. Independent voters backed legalization 61 percent to 36 percent, as did men (60 percent to 37 percent) and women, albeit within the margin of error (48 percent to 46 percent). Possession of marijuana is legal in Alaska, Washington state, Oregon, Colorado and the District of Columbia, with several other states having decriminalized the drug.
Majorities of registered voters younger than 65 said they would support legalization, while 57 percent of those surveyed 65 and older said they would oppose. On the question of whether people should be allowed to use medically prescribed marijuana, 89 percent overall said they would be in favor, while just 9 percent opposed. Nearly the same share — 87 percent — said Department of Veterans Affairs doctors should be able to prescribe medical marijuana in pill form in states where it is legal to veterans with post-traumatic stress disorder, while 9 percent said they should not be able to do so.
Quinnipiac conducted the poll via landlines and cellphones from May 24-30, surveying 1,561 registered voters with a margin of error of plus or minus 2.5 percentage points.
In the cross-tabs on this poll (which can be accessed here), the numbers in support of marijuana legalization among voters aged 18 to 35 are especially potent: marijuana reform is supported by 69% and opposed by only 27% of this group (which I think is now the largest demographic voting block). These numbers, and especially the consistently strong support for medical marijuana reform that all polls now show, lead me to continue to think that federal marijuana reform is all but inevitable in the next four years no matter who ends up prevailing in the Prez election.
June 6, 2016 in Campaigns, elections and public officials concerning reforms, Medical Marijuana Commentary and Debate, Polling data and results, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)
Wednesday, June 1, 2016
The question in the title of this post is the headline of this interesting new International Business Times article discussing the state and possible fate of the significant number of marijuana reform initiatives to be appearing on state ballots this fall. Here is how it gets started and additional excerpts from the middle and end of the lengthy piece:
In early May, the national advocacy group Marijuana Policy Project sent out a panicked email titled “Alone, beaten down and incredulous in Boston.” MPP had been working to land a marijuana legalization measure on Massachusetts’ ballot this November, but a recent fundraising event in Boston had drawn just a single attendee. “What’s worrisome isn’t this one bad event, but that it mirrors the contributions and involvement across Massachusetts since the initiative launch,” MPP Executive Director Rob Kampia wrote in the message. “Simply put, the campaign is broke,” he noted. The organization might not have the money to collect enough signatures to qualify for the ballot in one of the most liberal states in the U.S.
A lack of fundraising dollars in Massachusetts isn’t the only reason marijuana advocates are beginning to feel nervous. 2016 is a pivotal year for the cannabis movement, with an unprecedented 10 states potentially voting on recreational or medical marijuana reforms in November. Planned are medical marijuana initiatives in Arkansas, Florida, Missouri and Montana, as well as recreational cannabis measures in Arizona, Maine, Massachusetts, Michigan, Nevada and California, the last of which would launch a legal cannabis industry in what is the world’s eighth-largest economy. But, according to campaign finance records, the 10 campaigns altogether to date have raised less than $11 million, just slightly more than marijuana advocates amassed in 2014 midterm elections to pass legalization measures in two states, Alaska and Oregon.
While it’s still relatively early in the 2016 campaign calendar, a lot more cash will be needed before November. Representatives of the national advocacy group Drug Policy Alliance (DPA) estimated at a recent webinar that it would likely cost between $40 million and $50 million to win in all 10 states. “There is a little bit of concern among people I have talked to that the movement might be trying to do too much too soon,” said Tom Angell, founder and chairman of the cannabis advocacy group Marijuana Majority, who recently wrote about the issue for Marijuana.com. “There are only so many dollars that can be raised to purchase advertising time and put together get-out-the-vote operations.” It doesn’t help that so far the growing marijuana industry has been reluctant to shoulder much of these campaigns’ costs or that anti-marijuana efforts are gaining traction. This confluence of factors has led some observers to posit that 2016 may not be the watershed year for cannabis legalization that many have predicted. Instead, it could be the year the ascendant cannabis crusade finally faces defeat.
“The marijuana movement is stretched so thin in 2016,” DPA Executive Director Ethan Nadelmann said during a presentation last month at Marijuana Business Daily’s Marijuana Business Conference and Expo in Orlando, Florida. “I think what could happen in 2016 could be a harsh wake-up call.”...
As in years past, the two largest marijuana advocacy groups, DPA and MPP, are dividing their efforts between different reform campaigns. For example, DPA is playing a large role in the big California legalization effort, while MPP is highly involved in recreational marijuana initiatives in Arizona, Maine, Massachusetts and Nevada (MPP suspended a medical marijuana effort in Ohio last week after legislators passed a medical cannabis law).
While MPP may be working on more concurrent state campaigns than it ever has before, Mason Tvert, the organization’s communications director, insisted it isn’t stretched too thin. “We only get involved in campaigns when we are confident we will be able to run an effective campaign and win,” he said. Still, he added that weighing in on the financial fitness of various political efforts can be a dicey prospect in the middle of campaign season. “If you say you have no money, people aren’t going to donate because they don’t think you have a chance,” he said. “If you say you have money coming out of your ears, they aren’t going to donate either.”...
Meanwhile, marijuana advocates are facing increasingly well-organized and well-funded opposition. In Massachusetts, the anti-marijuana campaign has garnered the support of Governor Charlie Baker, Boston Mayor Marty Walsh and House Speaker Rovert DeLeo. In California, opponents of legalization are gathering donations from police associations, prison guard groups and the Teamsters union. In Arizona, a conservative fundraising firm announced an anonymous donor had pledged $500,000 as a matching gift for all donations the anti-legalization campaign received during the month of May. In Florida, real estate mogul Mel Sembler has pledged to raise at least $10 million to fight the state’s medical marijuana initiative, $2.5 million more than he raised to defeat a similar effort in 2014. And Smart Approaches to Marijuana, or Project SAM, the most prominent anti-marijuana group nationwide, just announced it has raised $300,000 and formed new state partnerships to fight the various 2016 marijuana initiatives....
As the marijuana industry has flourished, Project SAM founder Kevin Sabet thinks the cannabis movement has been exposed to new lines of attack, such as that legalization is becoming all about the business bottom lines and not about social justice. “They have written these initiatives as corporate free-for-alls,” said Sabet. “The old-school pot legalizers who are not really in this for the money, a lot of them are pretty stunned and not sure what to do this year.”
But Troy Dayton, CEO of cannabis investment network the ArcView Group, disagrees. He said the marijuana industry isn’t very involved in the reform initiatives — and he thinks that’s a problem. “Our opposition likes to say this is ‘Big Marijuana’ trying to pass laws,” he said. “I wish that was the case. At least so far, that hasn’t really happened.” Dayton is concerned that there’s a false sense of security in the marijuana movement. “The media has done a very good job of suggesting the marijuana industry is making money hand over fist, so a lot of philanthropists who otherwise might be backing these issues are thinking, ‘Hey, there is an industry now, they will take this the rest of the way,’” he said. “But that is not really happening to enough of a degree to fundamentally move the needle.” For example, while ArcView’s members have together invested more than $70 million in various marijuana companies since 2010, the investor network has only contributed roughly a million dollars to various legalization initiatives in that same period.
According to Dayton, marijuana businesses are struggling with various industry headaches — such as sky-high tax rates and a lack of banking services — that make it unlikely they have loads of excess funds they can donate to political campaigns. But at this point, Dayton thinks that is no excuse. He believes marijuana activists and industry stakeholders alike need to realize that 2016 is the make-or-break year for cannabis reform. “I am out there pounding the pulpit, telling people, ‘Come on, folks, whether you are on the business side or the social justice side or both, now is the time. Whatever you would normally give, give three times that,’” he said. “If we win most of these initiatives, it’s really lights out on marijuana prohibition. But if we lose a significant portion of them, that could mean a much longer fight to ultimately end this disastrous policy.”
June 1, 2016 in Campaigns, elections and public officials concerning reforms, Initiative reforms in states, Medical Marijuana Commentary and Debate, Medical Marijuana State Laws and Reforms, Political perspective on reforms, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (0)
Seeking any new quantitative or qualitative research on physician engagement with state medical marijuana programs
Among the many issues that seem to me to be woefully under-explored in discussions of marijuana reform and policies is the role being played (or not played) by doctors in states with functioning medical marijuana programs. Ergo, I am seeking, as the title of this post reveals, information from anyone who can help me determine if any new (and rigorous) research is being done in this arena these days.
I have seen press reports that relatively few doctors are signing up to be a part of formal programming in a number of states. Those kinds of reports give credence to complaints I hear from advocates in Ohio that the new bill for medical marijuana in the state will not function well because of the regulatory rules and burdens it will be placing on doctors in order to be able to make a medical marijuana recommendation.
But I suspect various reports of physician disaffinity for medical marijuana programming may reflect long-enduring beliefs and concerns, especially among old and more "traditional" physicians, that many past claims about marijuana as a wonder drug are based in "snake-oil" type promotion. Now though, especially with so many states and studies starting to take seriously the potential medical benefits of marijuana (especially in non-smoked forms), I am wondering if doctors, especially younger ones, are becoming more open to considering being involved in medical marijuana programs.
I would be grateful is anyone can point me to any new significant research in this space.
Saturday, May 28, 2016
Calling out Leg/Reg, Ad Law scholars to start looking seriously at pros/cons of structures of state (and eventually federal) medical marijuana reforms
As explained in this prior post, this past week the Ohio General Assembly passed a massive medical marijuana bill that creates a remarkable regulatory structure for the development and application of rules and regulations for medical marijuana in the Buckeye State. Specifically, the 126-page(!) Ohio medical marijuana bill (available here; detailed summary/analysis here), creates three enduring regulatory bodies in charge of various parts the state's marijuana programming: the Department of Commerce, the board of pharmacy, and the medical board.
In addition, the bill also creates for, a five-year period, a multi-member "medical marijuana advisory committee" which "may develop and submit to the department of commerce, state board of pharmacy, and the state medical board any recommendations related to the medical marijuana control program." In my prior post, I suggested that Ohio-based lobbyists would surely love this regulatory structure; this post is my effort to encourage fellow LawProfs who follow closely the work of legislators and adminstrative regulators to love looking closely not only this Ohio legislation, but also the broader set of fascinating "leg/reg" and administrative law issues that are swiftly emerging at the local, state and federal level concerning medical marijuana reform.
For a range of understandable reasons, the traditional press and most marijuana/drug policy advocates spend a lot more time talking and thinking about recreational marijuana reforms than about (much more prevalent) medical marijuana reforms. Serious followers of the work of state legislatures and thoughtful legal scholars should realize, however, that medical marijuana reform efforts at the local, state and federal level is where the most significant (and diverse) action is now to be found and observed. Only five jurisdictions have enacted recreational marijuana reforms and all of those were the result of voter initiatives. But more than two dozen states have now enacted major medical marijuana reforms, and another dozen-and-half states have enacted limited-CBD-oil type reforms.
Moreover, and perhaps even more importantly, state legislatures have played a significant role in all of the most recent medical marijuana reform efforts in a number of big diverse states ranging from California to Louisiana to New York to Illinois to Pennsylvania to Ohio. In addition, even at the federal level where blanket prohibition is the law of the land, we have seen lots of notable bills proposed (and some provisions passed) that directly impacts how federal agencies and agents are to engage with state medical marijuana reforms. And, of course, there is ever-growing discussions of whether, when and how marijuana's placement on Schedule 1 of the Controlled Substantive Act might get changed.
In addition to seeing a whole lots of legislative and regulatory action at all levels, there is an extraordinary diversity in regulatory structures being put in place and starting to operate in various ways in various states. The Ohio legislation, for good of for bad, highlights the problematic reality that still nobody is yet sure at all what could or should be the best structure for developing sound on-going medical marijuana rules and regulations: is sound reform really about "medical/patient" issues for agencies like pharmacy/medical boards; is it really about "business/consumer" issues for agencies like a Department of Commerce or Taxation; or is medical marijuana its own special, strange, unique space that call for its own special, strange, unique regulatory body.
For the record, especially right now when blanket federal marijuana prohibition is still the basic law of the land, I consider medical marijuana reform and regulation to occupy its own special, strange, unique space calling for its own special, strange, unique regulatory body. For that reason and others, I am encouraged that the new Ohio law has created a diverse, multi-member "medical marijuana advisory committee," and I am hopeful that this body ends up staffed with a motivated and informed group of quasi-policy-makers who will take a leadership role in the months and years ahead as Ohio moves forward with its marijuana reform efforts.
That all said, and as this post is meant to highlight, my perspectives on these critical legislative/regulatory issues would be greatly informed and enhanced by having legal scholars who study these issues actively providing their informed perspective on the good, the bad and the ugly of sound regulatory reforms. I know these folks know a lot about topics relating to regulatory (in)efficiency and agency capture and all sort of other important topics, and I want to start better understanding what I know that I now do not know on these next forteirs for marijuana reform.
Long story short: I am putting you on notice Chris Walker, and I am eager to see some comments!
Some prior related posts about Ohio's recent legislative and regulatory medical marijuana activity:
May 28, 2016 in Business laws and regulatory issues, Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Medical Marijuana State Laws and Reforms | Permalink | Comments (0)
Unsurprisingly after Ohio legislators act, MPP suspends 2016 campaign for medical marijuana ballot initiative ... (so they can gear up for 2018 or 2020 recreational one?)
As reported in this local breaking story, headlined "Ohioans for Medical Marijuana suspends ballot initiative campaign," the passage of a big medical marijuana bill by the Ohio General Assembly this past week has now already had a major impact of Ohio marijuana reform policy and practicalities. Here are the details:
Ohioans won't vote on a broader medical marijuana legalization measure in November after state lawmakers passed a bill earlier this week. Ohioans for Medical Marijuana [OMM] announced Saturday they suspended their campaign. The decision came three days after the passage of House Bill 523, which allows people with certain medical conditions to use marijuana with a doctor's recommendation and Gov. John Kasich is expected to sign.
"We make this decision with a heavy heart as we will surely disappoint our many volunteers, supporters and patient-advocates who invested considerable time and effort in our movement," campaign manager Brandon Lynaugh said in a statement. The group was backed by national group Marijuana Policy Project [MPP], which has a track record for successful lobbying and ballot initiative efforts.
When they announced their Ohio effort in January, the GOP-led General Assembly seemed unlikely to pass a comprehensive medical marijuana bill before November . But testimony from Ohioans who said they would benefit from medical marijuana and the possibility of such a program being written into the Ohio Constitution pushed legislators to pass a bill before leaving Columbus for the summer.
House Speaker Cliff Rosenberger welcomed the news in a statement sent Saturday morning and said it was an indication of lawmakers' willingness to listen and respond to the will of Ohioans. "Thanks to the open and transparent process that began in the Ohio House in which voices from all sides of the debate were invited to testify, we were able to join together around a proposal that is both reflective of public opinion and protective of the state's constitution," Rosenberger said.
The bill excluded some of the conditions in the proposed amendment and prohibited smoking and growing marijuana plants at home. As the bill moved through the Statehouse, Ohioans for Medical Marijuana said those aspects of the bill pushed them to continue collecting the nearly 306,000 signatures needed to put the measure on the November ballot. Until Saturday.
Lynaugh called the House bill "moderately good" and the organization will lobby the legislature to address its shortcomings. Lynaugh said raising money for a medical-only initiative proved difficult after lawmakers passed the bill. "The legislature's action on medical marijuana was a step forward, and thanks to the intense advocacy efforts of patients and their families, activists and our team the bill was vastly improved before passage," Lynaugh said.
I had predicted to anyone who would listen that Ohioians would likely not get a chance to vote on full marijuana legalization in 2016 if the controversial Issue 3 ballot initiative proposal before voters in 2015 lost badly (which it did). Part of my reasoning was that possible funders of such a campaign would not be eager to make a significant investment in a possible losing proposition. For largely the same reasons, I had been long predicting that MPP would pack up its efforts to get even a limited medical marijuana initiative on the Ohio ballot in 2016 if the Ohio General Assembly passed any kind of reasonable medical marijuana bill.
I am glad that the OMM manager's statement noted the challenges of raising money for an initiative because it helps reveal and highlight the enduring reality that Ohio is a VERY expensive initiative state both in terms of having to collect a whole lot of signatures to get on the ballot than then also to have the resources to run a campaign throughout a diverse state with lots of expensive media markets. Especially because it would surely prove especially challenging to convince voters that an Ohio constitutional amendment was needed for medical marijuana right after legislators just passed a complicated medical marijuana bill, I think it very wise that (1) OMM/MPP kept threating to move forward with an initiative in order to get the Ohio GA to keep making its bill better and better, and (2) now sees the wisdom of spending time and resources on working to continue to improve what the legislature has put into the Ohio Revised Code.
That all said, any and everyone interested in marijuana reform in the Buckeye State should be sending thank you notes to the folks involved with both ResponsibleOhio and MPP/OMM: Absent the money, time, energy, interest that these groups devoted to getting Ohio citizens and elected officials considering marijuana reform, any serious and significant marijuana reform in Ohio likely would not have become a viable reality until 2018 or 2020 or even later. But once the ResponsibleOhio folks showed how much money some folks would invest in possible reform, and especially once MPP jumped in to propose a kind of reform that would surely be a winner at the ballot box, Ohio official came to understand that ignoring the will of the people on this front any longer posed many more risks than benefits.
Speaking of 2018 or 2020 and of initiative campaigns in Ohio, as my post title highlights, I think it pretty likely that the MPP folks (or maybe folks who were involved in ResponsibleOhio) are now terrifically positioned to start gearing up for an initiative run at recreation marijuana reform come 2018 or 2020. Especially if a significant number of voters in a significant number of states in 2016 enact recreational reform on the coasts, I think MPP and other reformers/investors will be looking to move forward aggressively with recreation marijuana reform campaigns in the heartland. In the immediate short-term, Michigan seems a state more likely to vote for recreational reform (and the economic development that goes with it), but Ohio is sure not to end up too far behind. Indeed, I can see lots of interesting stategic benefits to MPP of trying to do recreational ballot reform in both Michigan an Ohio at the same time, say in 2018 or 2020.
May 28, 2016 in Initiative reforms in states, Medical Marijuana Commentary and Debate, Medical Marijuana State Laws and Reforms, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)
Friday, May 27, 2016
Regular readers know I strongly believe that the economic development aspects/consequences of marijuana reform are very significant and yet too often overlooked. Consequently, I was intrigued and happy to see this notable new Forbes article about the best marijuana jobs. Here are excerpts:
The marijuana industry is growing quickly and just as quickly gaining wider societal acceptance. As such, more people are looking at the cannabis industry as a career choice. Some of the jobs are little out of the ordinary, but that’s probably what draws many workers interested in cannabis jobs. Whether they worked with marijuana in the black market or just want an alternative to the standard cubicle job, thousands are trying to get in.
There are websites with cannabis job listings like Cannajobs and 420careers. Medical marijuana delivery company GreenRush held a job fair in California in April; 2,700 people attended and 200 jobs were filled. Another event is planned for November 10.
Cannabis company Terra Tech Corp. recently held a job fair in Las Vegas. They ran a quarter page ad and expected about 200 people to show up. They got 2,000 instead. “Most people just want to get into the space,” said CEO Derek Peterson. “They believe in the product.” Peterson said a lot of people came without any experience and since the jobs are unique, they tried to pair existing skills with new job requirements.
He also noted that a lot of people in the 40-50 age group have been aged out of the traditional workforce. “Almost everyone had a bachelor’s degree that we saw,” he said. While some positions like store managers overlap more traditional jobs, others like bud trimmers are truly unique to the space. Here are the top five jobs in the marijuana industry.
The grow master is the person responsible for cultivating various strains of marijuana plants. Peterson likens it to being a master chef. Grow masters are in high demand and it’s a seller’s market. At minimum they can command a salary of $100,000 a year and a percentage of the profit....
Like any retail operation, a medical dispensary or recreational outlet needs a manager. These employees can do very well, especially in profitable stores. At minimum, they can earn $75,000 a year and many get a bonus on top of that based on the store’s sales. When you consider that some stores in California have sales of $3 million to $6 million a year, while some San Francsico Bay area stores do $7 million to $10 million a year, that bonus can be pretty good....
Most people only think of marijuana in the plant form, however marijuana extracts are a growing side of the business. These “extract artists” have a unique set of skills. Peterson said many of the people he hires for this job have PhD’s. They can earn between $75,000 and $125,000 a year. Some states don’t like the idea of people smoking pot for medical purposes and like the state of New York have only legalized medical marijuana in the extract form....
Bud Trimmers This is the entry level job working with the plant. It tends to be the lowest paid job in the industry — a bud trimmer in California may make $12-$13 an hour. In Vegas where service jobs are in high demand, $13 an hour is the general wage. Some get paid by the pound and that can run to $100-$200 a pound. In a medical dispensary, a trimmer takes the plant and with little scissors cuts the flower from the stem....
While owning a marijuana business sounds like the ultimate counterculture move, it brings a mountain of headaches. Many owners say they don’t make the millions that many people think they do. There are legal and banking headaches, and the regulatory landscape is constantly shifting. The owners don’t get to claim the same business deductions that other business owners get, so the expenses are sky high. Many owners front millions of dollars for years before they ever get to see any profits.
Thursday, May 26, 2016
As reported in this local article, "Ohio is poised to become the 25th state to legalize medical marijuana after state lawmakers approved a fast-moving bill Wednesday evening in a close vote." Here are more of the details and the enduring issues about marijuana reform still in play in the Buckeye State:
As I explained in this prior post, I think the final complicated structure for medical marijuana reform enacted by the Ohio legislature may prove to have even more benefits for lawyers and lobbyists than for prospective patients. But I suppose time will tell on this front, and how MPP (and advocates and polls) respond to bill may ultimately script the future of marijuana reform in the state more than the particulars of this legislation.
The bill cleared the Ohio Senate on Wednesday in a bipartisan 18-15 vote. The House later agreed to the changes, sending the bill to Gov. John Kasich. Kasich has said he would support a medical marijuana bill if doctors led on the issue.
The vote caps a historic debate at the Statehouse about medical marijuana, a subject the conservative legislature has been reluctant to take up for years. But last year's failed recreational marijuana measure, sky-high support for medical marijuana in public opinion polls and the prospect of another ballot initiative nudged lawmakers to act....
People with one of about two dozen qualifying medical conditions could use marijuana if recommended by their physician. Patients could not smoke or grow their own marijuana, but vaping would be allowed.
Oils, tinctures, patches and plant material would be sold in dispensaries licensed by the Ohio State Board of Pharmacy. The Department of Commerce would write rules for licensing cultivators, processors and testing labs. The State Medical Board would register physicians and determine education requirements for those physicians. A bipartisan 13-member Medical Marijuana Advisory Board would recommend rules to the three regulatory agencies.
The program would have to be up and running within two years. Patients and caregivers would have an "affirmative defense" from arrest or prosecution if caught with marijuana before it's legally sold in Ohio, as long as use was recommended by a physician and meets the criteria established for the program.
Medical marijuana patients could be fired for violating an employer's drug-free workplace policy, as they are in other medical marijuana states. Patients would then be ineligible for unemployment benefits.
Sen. Kenny Yuko, a Richmond Heights Democrat and long-time medical marijuana supporter, shared the stories of several Ohioans who told lawmakers they or their children would benefit from marijuana. Marijuana has been proven to reduce seizures, pain and, Yuko said while showing pictures of would-be patients. "This bill is not perfect, folks, but it's what Ohio patients need," Yuko said. "If we can give one veteran comfort, if we can ease one patient's horrible pain, if we can prevent one heroin overdose or save one child's life -- this bill will be worth it."
Senators differed in their reasons for voting no. Some opposed marijuana use or said the federal Food and Drug Administration should approve marijuana for medicinal use. Sen. Jay Hottinger, a Newark Republican, said law enforcement and anti-drug activists in his district urged him to oppose the bill. "What we have before us today is not simply a child suffering seizure from epilepsy but something much greater than that," Hottinger said.
Others disagreed with language that allowed patients to be fired for their marijuana use and unable to collect unemployment compensation. Sen. Sandra Williams, a Cleveland Democrat, voted against the bill because she thought the issue should be decided by voters in November.
Nicole Scholten, a Cincinnati mom whose daughter suffers from seizures and cerebral palsy, was among the dozens of medical marijuana supporters watching the Senate vote Wednesday night. Scholten, who has been trying to convince lawmakers to act for years, said she felt conflicted about the vote. "We are on the way to being a state that supports patients that are not being helped by FDA-approved medications," Scholten said.
The bill would cover her daughter, Scholten said, but there are several conditions the bill doesn't cover. And she said nurse practitioners and other medical professions who prescribe controlled substances should also be allowed to recommend medical marijuana, as they are in the proposed ballot measure.
Meanwhile, Ohioans for Medical Marijuana plans to continue collecting the 305,591 signatures of Ohio voters needed by July 6 to put its medical marijuana measure on the November ballot. The group is backed by national organization Marijuana Policy Project. Their proposed constitutional amendment would allow smoking in private areas and home grow and includes more qualifying medical conditions including severe nausea and autism.
Campaign spokesman Aaron Marshall said House Bill 523 is a step forward but still too restrictive. "Our Constitutional amendment builds on the legislature's work by incorporating national best practices and offers voters an opportunity to enact a law free of the horse-trading inherent in the legislative process," Marshall said.
After the bill is sent to Kasich, he has 10 days to sign it. If he doesn't sign, it automatically becomes law. The law is effective 90 days after Kasich signs, likely sometime in early September.