Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Friday, September 15, 2017

In preparation for coming reforms, UMass to study marijuana use in Bay State before start of recreational sales

ThNF1SK14RAs reported in this press release, as "Massachusetts prepares to begin sales of recreational marijuana in 2018, researchers at the University of Massachusetts Amherst School of Public Health and Health Sciences (SPHHS), in collaboration with the UMass Donahue Institute and staff at the state Department of Public Health (DPH), have begun a one-year baseline study to assess the level of marijuana use before legal, recreational sales go into effect." Here is more:

The investigation will be funded by a $275,000 contract from DPH as part of the DPH Marijuana Baseline Health Study to provide public health officials, legislators and others with information to assess baseline rates and patterns of marijuana use, related risk behaviors such as use in combination with alcohol, prescription drugs and impaired driving. They will also look at outcomes such as marijuana-related visits to emergency departments or urgent care facilities. Public health professors Rosa Rodríguez-Monguió and Jennifer Whitehill will lead the research at SPHHS.

David Buchanan, SPHHS chair of health promotion and policy, helped to organize two forums last year for Massachusetts lawmakers to hear about impacts of legalization in Colorado and Washington State. He says that agency directors in both states strongly recommend pre/post studies to evaluate the impact. After the forums, the Senate Special Committee on Marijuana unanimously recommended that a baseline study be conducted in Massachusetts, and it was later mandated as part of legislation passed in December 2016 that tweaked the ballot question passed by the voters.

As part of the baseline study, Whitehill and Rodríguez-Monguió have designed a statewide survey plus other studies that will complement the efforts of investigators from DPH, John Snow, Inc., Mathematica Policy Research, and the UMass Donahue Institute. Findings from the various lines of investigation will be presented to a legislative committee in July 2018.

Rodríguez-Monguió says one question to be addressed with the collection of new survey data is whether increased marijuana availability leads to increased use of other substances, particularly alcohol and prescription drugs, or whether marijuana use might serve as a substitute for prescription drugs and other substances. The UMass Amherst team will also analyze several existing national and state databases to explore associations between recreational marijuana, alcohol and prescription drug use, and involvement in fatal car crashes and calls to poison control.

September 15, 2017 in Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms | Permalink | Comments (1)

Wednesday, September 13, 2017

"How Medical Marijuana Smoothed the Transition to Marijuana Legalization in the United States"

The title of this post is the title of this notable forthcoming article authored by Beau Kilmer and Robert MacCoun which is soon to be published in the Annual Review of Law and Social Science.  Here is its abstract:

Public support for legalizing marijuana use increased from 25% in 1995 to 60% in 2016, rising in lockstep with support for same-sex marriage. Between November 2012 and November 2016, voters in eight states passed ballot initiatives to legalize marijuana sales for nonmedical purposes—covering one-fifth of the US population.  These changes are unprecedented but are not independent of the changes in medical marijuana laws that have occurred over the past 20 years.  This article suggests five ways in which the passage and implementation of medical marijuana laws smoothed the transition to nonmedical legalization in the United States: (a) They demonstrated the efficacy of using voter initiatives to change marijuana supply laws, (b) enabled the psychological changes needed to destabilize the “war on drugs” policy stasis, (c) generated an evidence base that could be used to downplay concerns about nonmedical legalization, (d) created a visible and active marijuana industry, and (e) revealed that the federal government would allow state and local jurisdictions to generate tax revenue from marijuana.

September 13, 2017 in Medical Marijuana Commentary and Debate, Medical Marijuana State Laws and Reforms, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Surprising new marijuana lobbyist, a bombastic NY Republican, might be especially significant in the age of Trump

Senate-damato

This new New York Post article, headlined "Former New York senator who opposed smoking pot joins marijuana lobbying group," reports on a very interesting and shrewd hire by the Marijuana Policy Project. Here are the details:

Alfonse D'Amato is going from Senator Pothole to Senator Pot.  The former Republican U.S. senator from New York has been hired as a senior adviser by the Marijuana Policy Project, a national pro-pot group that for the first time is starting an affiliate in the Empire State.

The MPP says it was founded in 1995 to advocate nationally for “sensible and compassionate” laws governing pot use.  In New York, the group will initially focus on promoting ways to strengthen the state's existing medical marijuana program, though D'Amato didn't rule out the idea that the group will be part of any future discussions about legalizing the recreational use of pot for adults.

In addition to D'Amato, the MPP also hired attorney and community organizer Landon Dais to serve as its New York political director.  Both D'Amato — who served in the Senate from 1981 to 1999 — and Dais said that after a slow start, New York's medical marijuana program can be transformed into a national leader.  "The (state) Health Department and the governor's office have come a long way in making the utilization of medical marijuana easier, better, more professional," D'Amato said. "That's a work in progress."

D'Amato said the MPP will push for Gov. Cuomo to sign into law a bill making medical marijuana available to veterans suffering from post traumatic stress disorder. D’Amato said the group will also seek to educate the public and medical community on the value of medical marijuana.  "I'm happy to see we have really moved in the right direction in New York," D'Amato said.

The former senator-turned lobbyist and consultant said the state should also start discussing whether to legalize pot for adults.  While he hasn't yet taken a stand on the issue, D'Amato said "if we want to be realistic, you've got to look at the nation, what is taking place around us.  It's been implemented in (seven) states."...

D'Amato's linkage to a marijuana group is a change for a man who for most of his life was against the use of pot. He said he began evolving on the issue during a discussion with radio personality Howard Stern in 2009.  "I think I'm a conservative, but I don't think I'm a right wing kook," he said.

D'Amato also knocked U.S. Attorney General Jeff Sessions, with whom he served in the Senate, for wanting the federal government to crack down on states that have legalized recreational- and even medicinal- marijuana.  "It's a ridiculous position," he said. "I say how can you on the one hand be for states’ rights and on the other hand say the states that have legalized the use of marijuana, that you're not going to recognize that. You can't be a states’ rights person only when you like what the states are doing and not what the feds are doing.  It's one or the other."

State Conservative Party Chairman Michael Long, who backed D’Amato during his three terms in the Senate, said “I hope the former senator doesn’t partake in a move that would open the door for legalization of marijuana.”  But he said he wasn’t particularly surprised D’Amato hooked up with the Marijuana Policy Project. “He’s a lobbyist now, certainly a person who opens the door for a lot of people,” Long said.

As this article highlights, former Senator D'Amato has a little history from his time in the Senate with current AG Jeff Sessions.  But I think even more important is D'Amato's history as a successful bombastic New York Republican politician.  In various ways, he seems cut from the same cloth as President Donald Trump, and the two surely have some relationship given that D'Amato was a leading New York political figure during the 1980s and 1990s when Trump was building his NYC real estate empire.  In addition, I am sure D'Amato is able to get the ear of still-very-important New York political figures ranging from Rudy Giuliani to Michael Bloomberg to Chuck Schumer.

September 13, 2017 in Campaigns, elections and public officials concerning reforms, Medical Marijuana State Laws and Reforms, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (0)

Sunday, September 10, 2017

"A Safer Way To Legalize Marijuana"

The title of this post is the headline of this notable extended commentary appearing at the Heath Affairs Blog authored by Rebecca Haffajee, Alex Liber, and Kenneth Warner. Here are excerpts:

Those crafting marijuana laws can draw upon lessons learned about the harms of combusted tobacco and the smoking control policies that followed. Given what we already know about the health hazards of combusted marijuana and the difficulty of controlling the sale of commercially established products, policy makers should capitalize on this opportunity to create a legal marijuana market that mitigates potentially significant harms associated with inhaling combusted marijuana while still facilitating desired benefits of recreational marijuana....

Combustible marijuana likely poses similar risks to those of combustible tobacco, while vaporizing or eating marijuana products offers a “cleaner” delivery mechanism. Why repeat the devastating public health harms of smoking tobacco when policy makers can reasonably mitigate similar consequences of smoking marijuana?...

In a recent comprehensive review of the scientific literature, the National Academies of Sciences, Engineering, and Medicine concluded that “smoked marijuana…is a crude THC delivery system that also delivers harmful substances.” The report and other reviews found strong evidence linking combusted marijuana to increased risk for chronic bronchitis....

Edible and vaporized marijuana products offer the potential to deliver therapeutic and euphoric benefits of marijuana while avoiding cardiopulmonary-related harms of combustion. Although precise estimates of the decreased risks associated with this substitution are not available, by analogy the health risks for smokeless and vaporized tobacco products are estimated to be roughly 90 percent less than those of combusted tobacco.

Valid concerns have been raised about the potential health harms from commercially marketed edibles, especially their attractiveness to, accessibility by, and increasing exposure and overdoses among children. We strongly support prohibitions on the sale of marijuana products — including edibles — to minors, clearly labeling product THC content and requiring child-proof packaging. Additionally, if marijuana is only legally available for sale in forms that do not resemble cigarettes, children may be less likely to cross over between products....

Policy makers in jurisdictions considering legalization are not bound by custom to make available all forms of marijuana for recreational use. Little prior interstate commerce of legal marijuana products exists, and most states have yet to legalize recreational use. The environment is ripe to experiment with different types of markets, and entrepreneurial policy makers could embark on implementing a safer legal marijuana market that omits combustibles, based on our current and developing knowledge.

While uncertainty still exists regarding the relative harms of different marijuana products and robust research is warranted, waiting for perfect scientific consensus about the scope and nature of harms related to marijuana combustion is unwise. The evidence base around marijuana combustion harms is already strong, and growing. Arriving at total consensus will take decades — as it took to link cigarettes to lung cancer — and waiting to embark on an alternative, very likely safer policy regime has real costs, measured in disease and death. Permitting the sale of THC extracts for consumption in edible or vaporized form will neither compromise therapeutic nor euphoric benefits of recreational marijuana use. In addition, creating variation in recreational marijuana policy regimes — between those already enacted that permit marijuana combustion and those enacted in the future that don’t — would create natural experiments ripe to study the differential effects and quantify harms versus benefits. Policy makers in favor of legalization should seize the opportunity to design a new market that permits recreational sale of marijuana only in edible or vaporized form, to minimize the potential for the kind of disease burden associated with smoked tobacco.

September 10, 2017 in History of Marijuana Laws in the United States, Medical community perspectives, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms | Permalink | Comments (1)

WSIPP report suggests not too much has changed with marijuana legalization in Washington state

LcbThe Washington State Institute for Public Policy (WSIPP), which serves as a chief research arm for Washington’s legislature in Olympia, has been been tasked with assessing the costs and benefits of marijuana legalization in the state.  It is required to produce reports in 2015, 2017, 2022, and 2032.  The first 2015 WSIPP report, blogged about here, largely said it was too early to start reaching any conclusions about the impact of legalization. This second 2017 WSIPP report, released this past week, is similarly cautious about reaching firm conclusions about the impact of the state's initiative providing for marijuana legalization, the the report does have this useful summary of findings:

Our outcome analyses were designed to identify causal effects of I-502. However, I-502 is a multi-faceted law that may affect outcomes through a variety of mechanisms including changes to criminal prohibitions; the creation of a regulated cannabis supply system; and investments in substance abuse prevention, treatment, and research. The findings we present in this report are only one portion of a larger body of work designed to address multiple aspects of the law.

In these initial investigations, we found no evidence that I-502 enactment, on the whole, affected cannabis abuse treatment admissions. Further, within Washington State, we found no evidence that the amount of legal cannabis sales affected cannabis abuse treatment admissions.

The bulk of outcome analyses in this report used the within-state approach to focus on identifying effects of the amount of legal cannabis sales. We found no evidence that the amount of legal cannabis sales affected youth substance use or attitudes about cannabis or drug-related criminal convictions.

We did find evidence that higher levels of retail cannabis sales affected adult cannabis use in certain subgroups of the population. BRFSS respondents 21 and older who lived in counties with higher levels of retail cannabis sales were more likely to report using cannabis in the past 30 days and heavy use of cannabis in the past 30 days. We also found two effects that are difficult to interpret. Among the portion of the population aged 18 to 21, BRFSS respondents living in counties with higher sales were less likely to report using cannabis in the past 30 days, in some analyses. It may be that legal cannabis sales have made cannabis more difficult to access by persons below the legal age, for instance, by reducing black market supply through competition.

We also found that in the portion of the BRFSS sample who smoked cigarettes, respondents living in counties with higher levels of legal cannabis sales were less likely to report past-month cannabis use. It is particularly difficult to explain why increased sales would lead to lower cannabis use among cigarette smokers.

We look forward to updating these results with additional data to see if these effects persist.

Though not mentioned in this summary, the report reveals a notable decline in marijuana-specific criminal charges in the wake of the legalization vote in Washington. And, not to be overlooked, Washington now has a significant job sector and tax revenue stream as a result of legalization. It seems this WSIPP report was much more focused on changes in marijuana use than in other impacts, which strikes me as the reason why this report creates the impression that there is not much to report.

September 10, 2017 in Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Thursday, September 7, 2017

"How Extensive is Inter-State Diversion of Recreational Marijuana?"

The title of this post is the title of this timely new paper available via SSRN (for a price) and authored by Benjamin Hansen, Keaton Miller and Caroline Weber.  Here is the abstract:

Despite federal prohibition, recreational marijuana is available to 21% of the United States population.  A chief concern among policy makers across multiple levels of government and political parties is inter-state diversion of marijuana from states with legal markets to others.  We measure this diversion with a natural experiment. Oregon opened a recreational market on October 1, 2015 next to an existing market in Washington, which opened on July 8, 2014.

Using comprehensive administrative data on the universe of Washington sales, we find Washington retailers along the Oregon border experienced a 41% decline in sales immediately following Oregon's market opening. Retailers along Washington's borders with Idaho and Canada experienced no such decline.  The decline occurred equally across weekdays and weekends, and was largest among the largest transaction sizes, suggesting diversion, not drug tourism, was to blame.  Our estimates suggest that 11.9% of the marijuana sold in Washington was diverted out of the state before Oregon legalized and 7.5% remains diverted today.

September 7, 2017 in Business laws and regulatory issues, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Sunday, September 3, 2017

Helpful review of possible reform states to watch in 2018 on initiative and legislative fronts

The folks at Marijuana Business Daily have recently put together a two-part series on state-level marijuana reform efforts likely to be making headlines in 2018. Part I looks at initiative campaigns, and Part II is focused on legislature-driven efforts:

"Multiple 2018 marijuana legalization campaigns already underway" discusses ballot campaigns afoot in Michigan, Missouri, Oklahoma, South Dakota and Utah.

"Which state legislatures could legalize recreational, medical marijuana in 2018?" discusses New Jersey, Rhode Island and Vermont as possible recreational legalization states, and Louisiana, South Carolina, Tennessee, Kentucky, Indiana and Texas as (mostly-long-)shots for medical marijuana reforms.

Though all of these potential reform states are interesting to watch, I think Michigan and New Jersey could prove to be especially important states for the future of recreational marijuana reforms nationwide.  (I also believe they are the states in which reform right now seems the most likely.)

Michigan is a state that went for Prez Trump along with other rust-belt states, and it seems certain to be an important state in the 2020 Prez campaign.  A vote in favor of full legalization in Michigan in 2018 could immediately impact how would-be 2020 Prez candidates talk about state marijuana reforms.

 New Jersey not only could be the first state to embrace recreational marijuana reforms through the traditional legislative process, but it also could have a marijuana industry that serves huge population centers ranging from New York City to Philadelphia to even Baltimore and Washington DC.   With probably a quarter of the nation's population less than an afternoon's drive from some part of New Jersey, a decision by the Garden State to start legalizing the gardening of marijuana for recreational purposes surely could have all sorts of national echoes.

September 3, 2017 in Campaigns, elections and public officials concerning reforms, 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 | Permalink | Comments (0)

Wednesday, August 30, 2017

New SAM report, asserting legalization states "​have ​not ​fulfilled ​the ​requirements ​of ​the ​Cole Memo," urges federal law enforcement to target big players in marijuana industry

Download (4)Smart Approaches to Marijuana, the leading public policy group advocating against most state-level marijuana reforms, has released today this new  report titled "The​ ​Cole​ ​Memo:​ ​4​ ​Years​ ​Later: Status Report on State Compliance of Federal Marijuana Enforcement Policy." Here are parts of this SAM report's introduction and conclusion:

On ​August ​29, ​2013, ​the ​U.S. ​Department ​of ​Justice ​(DOJ) ​issued ​guidelines ​to ​Federal prosecutors ​and ​law ​enforcement ​officials ​regarding ​where ​to ​focus ​their ​drug ​enforcement efforts ​in ​states ​that ​have ​passed ​laws ​legalizing ​the ​retail ​sales ​of ​marijuana. ​The ​so-called “Cole ​Memo” ​directs ​enforcement ​officials ​to ​focus ​resources, ​including ​prosecutions, ​“on persons ​and ​organizations ​whose ​conduct ​interferes ​with ​any ​one ​or ​more ​of ​[eight] ​priorities, regardless ​of ​state ​law.”...

According ​to ​the ​Department ​of ​Justice, ​the ​Federal ​“hands-off” ​approach ​to ​marijuana enforcement ​enumerated ​in ​the ​Cole ​Memo ​is ​contingent ​on ​its ​expectation ​that ​“states ​and local ​governments ​that ​have ​enacted ​laws ​authorizing ​marijuana-related ​conduct ​will ​implement strong ​and ​effective ​regulatory ​and ​enforcement ​systems ​that ​will ​address ​the ​threat ​those state ​laws ​could ​pose ​to ​public ​safety, ​public ​health, ​and ​other ​law ​enforcement ​interests. ​A system ​adequate ​to ​that ​task ​must ​not ​only ​contain ​robust ​controls ​and ​procedures ​on ​paper, ​it must ​also ​be ​effective ​in ​practice.”

Unfortunately, ​since ​Colorado ​and ​Washington ​became ​the ​first ​states ​to ​legalize ​the recreational ​sale ​of ​marijuana ​in ​2012, ​evidence ​has ​emerged ​that ​regulations ​intended ​to control ​the ​sale ​and ​use ​of ​marijuana ​have ​failed ​to ​meet ​the ​promises ​made ​by ​advocates ​for legalization. ​For ​example, ​states ​with ​legal ​marijuana ​are ​seeing ​an ​increase ​in drugged ​driving crashes ​and youth ​marijuana ​use. ​States ​that ​have ​legalized ​marijuana ​are ​also failing ​to ​shore up ​state ​budget ​shortfalls ​with ​marijuana ​taxes, ​continuing ​to ​see ​a ​thriving ​illegal black ​market, and ​are ​experiencing ​an unabated ​sales ​of ​alcohol, ​despite ​campaign ​promises ​from ​advocates promising ​that ​marijuana ​would ​be ​used ​as ​a ​“safer” ​alternative ​instead.

Moreover, ​state ​regulatory ​frameworks ​established ​post-legalization ​have ​failed ​to ​meet ​each ​of the ​specific ​DOJ ​requirements ​on ​controlling ​recreational ​marijuana ​production, ​distribution, ​and use. ​While ​long-term ​studies ​and ​research ​on ​the ​public ​health ​and ​safety ​impacts ​of ​marijuana legalization ​are ​ongoing, ​this ​report ​provides ​a ​partial ​census ​of ​readily ​available ​information that ​demonstrates ​how ​Colorado, ​Oregon, ​and ​Washington ​State ​- ​the ​jurisdictions ​with ​the most ​mature ​regulatory ​markets ​and ​schemes ​- ​have ​not ​fulfilled ​the ​requirements ​of ​the ​Cole Memo....

Federal ​resources ​should ​target ​the ​big ​players ​in ​the ​marijuana ​industry. ​Individual ​marijuana users ​should ​not ​be ​targeted ​or ​arrested, ​but ​large-scale ​marijuana ​businesses, ​several ​of ​which now ​boast ​of ​having ​raised ​over ​$100 ​million ​in ​capital, ​and ​their ​financial ​backers, ​should ​be ​a priority. ​These ​large ​businesses ​are ​pocketing ​millions ​by ​flouting ​federal ​law, ​deceiving Americans ​about ​the ​risks ​of ​their ​products, ​and ​targeting ​the ​most ​vulnerable. ​They ​should ​not have ​access ​to ​banks, ​where ​their ​financial ​prowess ​would ​be ​expanded ​significantly, ​nor should ​they ​be ​able ​to ​advertise ​or ​commercialize ​marijuana....

These ​large ​marijuana ​operations, ​which ​combine ​the ​tactics ​of ​Big ​Tobacco ​with ​black marketeering, ​should ​form ​the ​focus ​of ​federal ​law ​enforcement, ​not ​individual ​users. ​At ​the same ​time, ​the ​federal ​government ​along ​with ​non-government ​partners ​should ​implement ​a strong, ​evidence-based ​marijuana ​information ​campaign, ​similar ​to ​the truth® ​campaign ​for tobacco, ​which ​alerts ​all ​Americans ​about ​the ​harms ​of ​marijuana ​and ​the ​deceitful ​practices ​of the ​marijuana ​industry.

August 30, 2017 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

"Marijuana Legalization and Nosy Neighbor States"

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

As more states proceed with marijuana legalization laws, questions have arisen about how to accommodate those states that wish to retain prohibition.  For instance, in 2014, Oklahoma and Nebraska unsuccessfully sued Colorado based on the spillover effects that Colorado’s marijuana legalization law had on its neighboring states.  This article asserts that there are several reasons why state marijuana legalization laws are unlikely to have a large effect on neighboring states.

First, marijuana is not a previously unobtainable good being introduced into the stream of commerce, as it is already available through the black market inexpensively. Second, legalization laws have a number of restrictions that make it very difficult for sellers to profit from exporting legally produced marijuana across state lines. Prohibition states may have reason to worry, however, that illegal marijuana growers will be better able to hide their operations in legalization states that allow residents to grow small amounts of marijuana for personal use, which in turn may increase illegal marijuana exports to neighboring prohibition states.  Prohibition states can minimize this risk of increased marijuana flow by lobbying the federal government to establish rules that protect their interests.

August 30, 2017 in Business laws and regulatory issues, Federal Marijuana Laws, Policies and Practices, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Friday, August 25, 2017

Colorado sends its forceful response to letter from AG Sessions about marijuana reform concerns

As noted in this prior post, last month US Attorney General Jeff Sessions sent letters to the leaders of states with recreational marijuana laws detailing troublesome data that, in the words of these letters, raised "serious questions about the efficacy of marijuana 'regulatory structures'."  And, as reported in this prior post, last week Washington set a forceful response to AG Sessions.  This week, as reported here by HuffPost, Colorado sent its response in the form of this detailed five-page missive.  (Alaska and Oregon have also responded forcefully to the Sessions latter, but Colorado and Washington seem to me the most important states to watch because they have the most mature marijuana industries and the longest-in-place regulatory regimes.)  Here is part of the HuffPost summary of the letter:

Colorado Gov. John Hickenlooper (D) and Attorney General Cynthia Coffman (R) mounted a vigorous defense of their state’s legalized and regulated marijuana program Thursday, replying to a critical letter from Attorney General Jeff Sessions that was directed at states that have legalized marijuana for recreational purposes.

Hickenlooper and Coffman, in a response letter dated Thursday, tell Sessions that their state’s numerous marijuana laws and regulations are “effective.” They said the regulations work smoothly to prevent diversion of the drug outside of the state, block marijuana use by minors and protect the public’s safety and health. The pair also encourage the federal government to work with the state to “fortify” the robust program that it has already built....

“The State of Colorado has worked diligently to implement the will of our citizens and build a comprehensive regulatory and enforcement system that prioritizes public safety and public health,” the Colorado letter reads. “When abuses and unintended consequences materialize, the state has acted quickly to address any resulting harms. While our system has proven to be effective, we are constantly evaluating and seeking to strengthen our approach to regulation and enforcement.”

The Colorado officials detailed statistics that the state provided to the Department of Justice in a report in July, a document HuffPost obtained and previously reported on earlier this month, to back up their argument that state-level legalization of marijuana is effective.

Prior related posts:

August 25, 2017 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Wednesday, August 16, 2017

Washington Gov and state AG respond forcefully to letter from AG Sessions about marijuana reform concerns

As noted in this prior post, a few weeks ago US Attorney General Jeff Sessions sent letters to the leaders of states with recreational marijuana laws detailing troublesome data that, in the words of these letters, raised "serious questions about the efficacy of marijuana 'regulatory structures'."  An example of one such letter can be found here, addressed to Washington's Governor Jay Inslee and Attorney General Bob Ferguson.

Now, as detailed in this local article, headlined "Gov. and AG to Sessions: You are blowing smoke on our marijuana law," there has now been at least one forceful official response to these letters.  Here are the basics:

Allegations by Sessions, in a recent letter on Washington's marijuana policy, "are outdated, incorrect, or based on incomplete information," the two state leaders wrote to Sessions. "We have twice requested an in-person meeting with you because we believe it will lead to better understanding than exchanging letters," Inslee and Ferguson wrote to the U.S. Justice Department on Tuesday.

"If we can engage in a more direct dialogue, we might avoid this sort of miscommunication and make progress on the issues that are important to both of us. " Inslee and Ferguson called for both a sit-down with Sessions, and "further appropriate meetings" between state and Dept of Justice officials....

Sessions, in his letter, stressed a 2016 Northwest Drug Trafficking Area report asserting that Washington marijuana has been diverted to "43 other states" and cites 17 explosions at THC extraction laboratories.

Inslee and Ferguson bluntly told Sessions he was blowing smoke. "Your letter fails to clearly acknowledge that this (43 state) statistic covers several years before our recreational sales even began, and reveals nothing about whether the sources of the marijuana were legal or illegal," they wrote. "Again, your intent is for our state-regulated marijuana market to displace and destroy illegal marijuana activity. "

Sessions made charges that Washington's medical marijuana market is "considered 'grey' due to lack of regulation and oversight." Inslee and Ferguson acknowledged that medical marijuana "was not well regulated or supervised" in Washington. Shortly before the 2016 report came out, however, the Legislature passed reform legislation.

"We realigned medical marijuana to bring it within the state's far more stringent recreational system," wrote the Governor and AG. In fact, they told Sessions, a subsequent 2017 report by the feds made clear that "as of July 1, 2016, the long-standing illegally operating dispensaries were shut down or became licensed retailers; sales are now subject to taxation and medical marijuana products now must pass strict packaging and testing requirements before being sold to patients." "Your letter, relying on the old . . . report, ignores this important development."...

"We encourage you to keep in mind why we are having this conversation," Inslee and Ferguson told Sessions. "State and federal prohibition of marijuana failed to prevent its widespread use, which was generating huge profits for violent criminal organizations. "The people of Washington State chose by popular vote to try a different path. Under Washington's system, responsible adults are allowed access to a highly regulated product that returns substantial tax revenues to the government even as it displaces illegal activity."

The full letter from Gov Inslee and state AG Ferguson can be found at this link, and I like that the letter included a request to discuss additional matters with federal officials including:

  • Whether DOJ will support reasonable federal policies allowing financial institutions to provide service to licensed marijuana businesses, in order to avoid the public safety risks and transparency problems associated with all-cash businesses. 

  • How state-regulated marijuana should be treated by the federal government following the President’s declaration that the opioid crisis constitutes a national emergency, and whether the federal government will support objective, independent research into the effects of marijuana law reform on opioid use and abuse.

August 16, 2017 in Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (1)

Thursday, August 10, 2017

Congratulations to the first director of the new Los Angeles Department of Cannabis Regulation

Cat PackerI was so very pleased and excited to see this announcement from the office of the Mayor of Los Angeles, which begins this way: "Mayor Eric Garcetti has appointed Cat Packer as Executive Director of the newly-established Los Angeles Department of Cannabis Regulation." Here is more:

Packer will be the first Executive Director for the department, which was created in June after Los Angeles voters approved the local regulation and taxation of cannabis earlier this year. In her new role, Packer will launch the department and lead implementation of the new cannabis regulations being developed by the City Council, City Attorney and Department of City Planning.  Her appointment is subject to City Council confirmation.

“Taxing and regulating legal cannabis in Los Angeles will be a complex process — we need someone leading the effort who understands and can navigate those nuances,” said Mayor Garcetti. “Cat’s experience makes her an excellent fit for this new role.  I am confident that her work will help us implement new regulations in a way that is fair and equitable for all of our communities, respects our neighborhoods and raises valuable new revenue for City services.”

Packer has spent much of her career working on issues of cannabis reform.  Prior to joining the City, she worked as a policy coordinator for the Drug Policy Alliance, where she advocated for responsible cannabis policy across California.  “I look forward to serving the City of Los Angeles as we lead the development and implementation of responsible, equitable cannabis policies that will serve as a model for the rest of America,” said Packer.  “I can’t wait to get started, and I’m grateful to Mayor Garcetti for this amazing, pioneering opportunity.”

The City’s Department of Cannabis Regulation was established as the result of several voter-approved initiatives over the last year, here in Los Angeles and statewide. Last November, California voters approved Prop. 64, which paved the way for the legalization of recreational cannabis across the state. In March, L.A. voters approved Prop. M — which approved local regulation, taxation and enforcement of cannabis policy.  The Department of Cannabis Regulation will be governed by a five-member Cannabis Regulation Commission.

I find this news so very pleasing and exciting because Director Packer is a 2015 graduate of The Ohio State University Moritz College of Law, and she was a student in my marijuana seminar in Spring 2015.  Especially in the early years of my seminar, I made a habit of telling students that they could likely become leaders in the field of marijuana law and policy relatively quickly because there were relatively few senior lawyers with knowledge and experience in this space.  As I gear up to teach my marijuana seminar again this coming fall, I will be sure to spotlights Cat's impressive early achievement in this arena. (With all my students, I take no credit for their any of their achievements, but I take comfort when learning my instruction did not harmfully lead them astray.)

August 10, 2017 in Campaigns, elections and public officials concerning reforms, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (0)

Wednesday, August 9, 2017

Could the States Do Anything to Blunt the Impact of a Federal Crackdown?

Cross-posted at Marijuana Law, Policy, and Authority 

I just returned from the NCSL annual meeting in Boston, where I participated on a Marijuana Federalism panel with Representative Roger Goodman (WA state house) and John Hudak (Brookings). A short recap of the panel can be found here . Consistent with recent reports, all the panelists agreed the Trump Administration is unlikely to crack down on state-licensed marijuana suppliers anytime soon. (John and I have both previously written about the Trump Administration’s approach to marijuana policy, e.g., here and here.)

Nonetheless, given Jeff Sessions’ stated opposition to legalizing marijuana, I think it’s worthwhile to consider what (if anything) the states could do to blunt a federal crackdown, if the Trump Administration did decide to attempt one. Let me offer two possibilities state lawmakers might consider:

1. Create an indemnification fund to help pay the legal expenses of any state-licensed marijuana supplier who faces federal legal sanctions. This would include a supplier who faces a federal criminal prosecution, a civil forfeiture action, or even a civil RICO lawsuit brought by another private citizen.

Why would states ever do this? Individual defendants sometimes lack the ability and / or incentive to optimally (from the state’s perspective) defend themselves against federal claims. For one thing, defendants don't always have the money needed to pursue every viable defense vigorously, especially if their assets have been frozen by the government. In addition, individual defendants capture only a small part of the benefit (to the state) of successfully asserting certain types of defenses. After all, those defenses -- once established -- can be invoked by other, similarly situated defendants.
To illustrate the problem, suppose a Massachusetts-licensed medical marijuana supplier is being prosecuted by the DOJ for distributing marijuana. Her attorneys tell her she could spend $25,000 trying to convince a federal court that her prosecution is barred by the Rohrabacher-Farr amendment (discussed on pages 353-358 of my book), but there’s no guarantee she’ll win – say, because the First Circuit might not follow United States v. McIntoshand the Ninth Circuit’s interpretation of Rohrabacher-Farr. In this case, the supplier might not pursue the defense vigorously (even if she could afford to); she might instead prefer to cut her losses and cut a plea deal, say, by agreeing to shut down her shop if the DOJ drops all of its charges against her. But that may not be the best outcome for the state – it might prefer that the defendant spend $25,000 for even the chance that all state law-abiding medical marijuana suppliers would be declared immune from federal prosecution. Thus, to ensure that defendants vigorously pursue legal defenses that benefit others in the state, the state might help cover individual defendants’ legal expenses (say, using a portion of marijuana tax revenues).
I develop this first proposal in more detail in a symposium article for the Montana Law Review here. It’s loosely modeled on personal liberty laws adopted by northern states in response to the federal Fugitive Slave Act.

2. Adopt poison pill legislation that would make it costly for Congress to preempt certain state marijuana reforms. Some state laws are vulnerable to preemption challenge because they (arguably) undermine one of Congress's goals, like deterring drug use. Citing such reasoning, for example, a few state courts have held that state laws purporting to protect medical marijuana patients from employment discrimination are preempted by the federal CSA (the issue is discussed on pages 672-681 of the book). To defuse the threat that a court would find such measures preempted, a state could pass a second law – one that Congress clearly favors – and then tie the two laws (favored and disfavored) together – i.e., make them inseverable.
To illustrate, suppose Massachusetts was interested in preserving its recently recognized employment protections (discussed here) from a preemption challenge. To do so, the state could pass a law limiting the quantity of marijuana that non-residents are allowed to buy at state licensed shops, similar to the way Colorado once limited non-residents to buying one-quarter ounce of marijuana at its shops (discussed at pages 283-287 of the book). It could then make the new quantity restriction inseverable from the employment protections. While Congress (in theory) might not want states to protect marijuana users from employment sanctions, it might tolerate those protections if the states limit non-resident access to marijuana.
I develop this second proposal in more detail in a new article for the George Washington Law Review here. It’s very loosely modeled on the poison pill tactic in corporate law.


Part of the appeal of both options is that their success does not depend on the DOJ’s willingness to heed past enforcement guidelines or Congress’s willingness to restrict the agency’s spending.

August 9, 2017 in Court Rulings, Current Affairs, Federal Marijuana Laws, Policies and Practices, Medical Marijuana State Laws and Reforms, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Thursday, August 3, 2017

Effective review of back-and-forth between AG Sessions and legalization states over marijuana policies

At HuffPost, Matt Ferner has this lengthy new article discussing the various ways in which marijuana legalization states have made their case to the Trump Administration about their reformed marijuana laws.  The article is headlined "Legal-Weed States Tell Jeff Sessions Their Programs Are Working. He Might Crack Down Anyway."  It merits a full read, along with some of the notable documents linked within, and here are excerpts:

Marijuana legalization is going smoothly in Colorado and Oregon, state officials recently told the Justice Department as it prepares for a shift in federal law enforcement priorities that could include changes to marijuana policy.

But Attorney General Jeff Sessions, a staunch drug opponent, nevertheless is considering reversing the Obama administration’s relaxed approach to state legalization, and may resume strictly enforcing federal laws, which still regard all marijuana use as illegal....

Colorado and Oregon ― among eight legal-weed states that know the issues best ― produced detailed reports on their experiences, officials said. 

140-page report from Colorado Gov. John Hickenlooper’s (D) office contains data and analysis from six state agencies, showing that the state’s 2014 marijuana legalization didn’t significantly increase youth drug abuse, school dropouts or juvenile arrests.

Statistics do show a rise in car crashes and fatalities involving motorists testing positive for cannabinoids. But Colorado’s report notes the statistics may not prove more drivers are intoxicated, because inactive marijuana compounds can be detected for more than a month in some individuals.  Marijuana DUIs have declined 21 percent in the first six months of 2017 from the same period a year earlier. ...

19-page report prepared by Oregon Gov. Kate Brown’s (D) office gives a positive view of legalization that safeguards public safety, and describes the state’s robust system tracking weed from seed to sale.  The document was first made public in June following a records request by Oregonian reporter Noelle Crombie.

Oregon’s report acknowledges the continued existence of a marijuana black market.  It also notes legalization’s hiccups, including “overproduction” and new laws it needed to place limits on growers and to increase penalties for marijuana-related crimes....

Washington state, which also legalized recreational marijuana in 2014, has sent Sessions’ office three letters defending the state’s legalization scheme under current federal policy, and requested a meeting with Sessions, a representative from Gov. Jay Inslee’s (D) office told HuffPost.

Inslee’s office received a reply from Sessions on Wednesday expressing skepticism of the state’s marijuana legalization.  Sessions’ letter cites a 2016 law enforcement report that he says “raises serious questions about the efficacy of marijuana ‘regulatory structures’ in your state.”

August 3, 2017 in Federal Marijuana Laws, Policies and Practices, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (1)

Tuesday, August 1, 2017

So many summer state marijuana headlines, so little summer time....

I have been on the road the last few weeks with limited internet and limited blogging time, and thus I have been barely able to keep up with all the summer state marijuana reform news of late.  Here are links to some news headlines/stories that provide just a sample of some notable late dog-days of summer state stories:

From Massachusetts here, "Massachusetts' Marijuana Law Passed by Voters, Rewritten by Lawmakers"

From Michigan here, "Marijuana is 9% of all Michigan arrests, and other facts on marijuana arrests"

From Nevada here, "Tourists Buying Marijuana In Las Vegas Have Nowhere To Smoke It In Las Vegas"

From Utah here, "Over 75 percent of Utahns support medical marijuana ballot initiative, a new poll says"

From Washington here, "Washington Marijuana Legalization: No Stoned Mayhem on the Freeways"

And, this important story covering lots of states comes from USA Today under the headline "Marijuana's legalization fuels black market in other states." It starts this way:

Marijuana smugglers are growing and shipping vast quantities of illicit cannabis across the USA. They’re mailing it, driving it and, in at least one case, flying it around in skydiving planes. They’re hiding it in truck beds and trunks and vacuum-sealing it to hide the smell as they pass police officers patrolling the interstates.

Many are starting in states where growing marijuana is legal, such as Colorado, and sending the drug elsewhere. In June, Colorado prosecutors said they busted a 74-person operation producing 100 pounds of marijuana per month — enough to generate $200,000 monthly, tax free, for more than four years.

Police seized two tons of cannabis from dozens of homes and warehouses in the Denver metro area. Tangled up in the scheme were fathers and sons and several former professional football players. “Those of us in law enforcement kept saying, '(Legalization) will not stop crime. You’re just making it easier for people who want to make money. What we’ve done is give them cover,' ” Colorado Attorney General Cynthia Coffman said.

For decades, the black market was the only source of recreational marijuana in America. But in 2012, Colorado voters approved a ballot initiative to legalize the drug. Seven states followed in 2014 and 2016. Now, nearly 65 million Americans live in states where adults can legally consume marijuana for any reason.

Legalization advocates have long argued that regulating marijuana forces the industry out of the shadows and into the public eye, where the drug can be taxed and the black market effectively eliminated. But because marijuana remains illegal in so many states, smugglers can take advantage of the patchwork of laws. A pound of marijuana might sell for about $2,000 in Colorado but could fetch three times as much in a large East Coast city.  Less marijuana is crossing the U.S. border, according to the U.S. Border Patrol. The agency's marijuana seizures dropped by almost half between 2011 and 2016, falling from 2.5 million pounds to 1.3 million pounds.

August 1, 2017 in Medical Marijuana State Laws and Reforms, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Thursday, July 20, 2017

Big meeting of feds and state/local officials in Colorado portends...?

As reported in this US News & World Report article, headlined "Feds Tour Colorado in DOJ Pot Review: Recommendations are due next week on whether to crush state-legal weed," there is some new activity in the arena of federal review of state marijuana reform. But what the new activity will lead to remains unclear. Here are excerpts:

Federal officials asked seemingly mundane questions during a Tuesday meeting in Colorado with state officials, at least some of whom were unaware that the discussion was part of a shadowy review of federal marijuana policy. The meeting provides the best glimpse yet into the issues authorities are considering as they prepare to make recommendations next week on what to do about state-legal recreational marijuana, with options ranging from a crackdown to keeping the status quo.

The guest list on Tuesday included Justice Department attorney Michael Murray, who is leading the department's marijuana policy review, and a State Department official with expertise in treaty obligations, according to Mark Bolton, deputy legal counsel to Colorado Gov. John Hickenlooper, a Democrat. John Zadrozny, a domestic policy adviser at the White House, was in the room, as were two representatives of the White House Office of National Drug Control Policy, says Bolton, who also attended.

A person with knowledge of the meeting's purpose says the gathering and another meeting Wednesday with officials from the city of Colorado Springs are directly related to the ongoing federal pot policy review. The source asked not to be identified. Bolton says he was unaware that the meeting – which featured about 20 state agency representatives -- was directly related to the policy review....

The only question that Bolton recalls Murray asking dealt with whether 2014 guidance from the Treasury Department's Financial Crimes Enforcement Network (FinCen) remains "up to date," he says. That guidance outlined how banks can work with pot businesses, but many financial institutions remain reluctant to take on the compliance burden or perceived risk involved in handling cash for cannabis firms operating in violation of federal law. "I don't remember him asking other questions, but it may be they weren't questions that resonated with me," Bolton says.

The State Department official asked if there had been significant problems with diversion of Colorado marijuana to other countries, Bolton says. A representative of the Colorado Department of Public Safety said that is not a significant problem....

The ONDCP representatives at the meeting asked about educational efforts and about continued black- and gray-market sales, Bolton says. He can't recall Zadrozny asking any questions....

Bolton says state officials shared how Colorado uses marijuana tax revenue – estimated to exceed $500 million since recreational sales began in 2014 – to educate the public about the risks of the drug and about responsible use, and that officials pointed out teen use has not increased. He says participants did not directly address the possible consequences of repealing the Justice Department's 2013 Cole Memo, which allowed recreational pot stores to open....

Hickenlooper was not present at the meeting. But Bolton believes invitations extended by the governor during an April meeting with Attorney General Jeff Sessions, as well as an invitation by Colorado Attorney General Cynthia Coffman, a Republican, inspired the visit. It's unclear if federal officials are touring other states as part of their policy review....

After meeting with state officials, a group of feds met Wednesday with legalization foes in Colorado Springs. No supporters of regulating recreational sales attended, KKTV reported after staking out the meeting and later interviewing Mayor John Suthers, a former U.S. attorney and state attorney general who opposes marijuana legalization. "A lot of [the meeting dealt with] sensitive case investigations. That's another reason why it couldn't be public," Suthers told the station. "Probably most of the discussion centered around the huge black market that exists for marijuana in Colorado." Suthers said the city's police department created the guest list, which included a local doctor and a school district director of discipline. The mayor and the police chief were unable to provide immediate comment....

KKTV reported a member of Vice President Mike Pence's staff and at least one member of the DEA also attended the Colorado Springs meeting. Pence's office did not immediately respond to a request for comment, and the national DEA headquarters referred questions to the local office, which did not immediately respond.

Although the Justice Department could launch a devastating legal assault on state-regulated recreational marijuana, medical marijuana currently is protected from federal prosecutors and anti-drug agents by a budget restriction passed in Congress. And in Colorado, state legislators approved legislation earlier this year allowing businesses to reclassify recreational pot as medical marijuana if the need arises.

July 20, 2017 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, 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 (1)

Sunday, July 16, 2017

Noting the state of recreational reform efforts in state up north (aka Michigan)

Michigan-weedThis extended Detroit Free Press article, headlined "Michigan marijuana campaign brings together activists, moneyed investors, tobacco dealers," provides an interesting mid-summer report on the developing efforts to put recreational marijuana reform on the ballot in Michigan in 2018. Here are excerpts:

A campaign to once again try to fully legalize marijuana in Michigan is getting big support from a Washington D.C. nonprofit activist group and from a tobacco store company that has talked of opening a chain of marijuana shops in the state.

The donor list, revealed in the latest campaign finance statements filed by the Coalition to Regulate Marijuana Like Alcohol, alarmed critics who have long contended that marijuana's nationwide march toward legalization is being funded not by the idealistic stoners and medical-marijuana users long linked to the politics of cannabis but instead by a pack of profit-minded investors and corporate types said to be similar to Big Tobacco — the nation's cigarette and cigar industry.

"It’s obvious that these tobacco guys are making a play for the marijuana money," Jeff Zinsmeister, executive vice president of Smart Alternatives to Marijuana, based in Alexandria, Va., said Friday. The group argues that Big Marijuana is "following the playbook of Big Tobacco," hoping to get young people addicted to pot early on, then keep them as hapless customers for life, Zinsmeister said.

Those who support legalization argue that marijuana will be more difficult for youths to obtain, not less, after it passes. They liken the current availability of marijuana to the nation's era of alcohol Prohibition, when people of any age had ready access to illegal alcoholic beverages; in contrast to later laws that made alcohol legal for adults but a crime to provide it to anyone under 21.

The campaign's goal is to put a ballot question before Michigan voters in 2018, when the governor's race will trigger a big voter turnout. Medical marijuana use was approved by state voters in 2008....

Based on the ballot campaign's latest report, "44% of our contributions were $250 or less — we have a broad range of both large donors and small," said [Josh] Hovey, spokesman for the Coalition to Regulate Marijuana Like Alcohol.

Since starting the drive to collect signatures less than two months ago, the group has gathered more than 100,000 signatures, he said. That's good progress toward collecting the required 252,523 signatures — a figure that, by law, must be 8% of the number of votes cast in Michigan's last election for governor. The group said it has until Nov. 22 to gather enough signatures.

And, in order to get a cushion to account for signatures that might be thrown out, the group has set a goal of gathering 350,000 signatures, said former state representative Jeff Irwin of Ann Arbor, who is the group's political director. "We're hitting the streets and talking to everybody," Irwin said Saturday.

In a failed effort last year to get on the ballot, a different marijuana group relied mainly on volunteers. This year's coalition, which includes supporters of last year's effort, is using paid petition circulators at considerable cost. "It's going to cost probably a million and a half dollars just to get on the ballot," Hovey said.

"After that, we’ll need to spend a lot more on advertising and all the methods of communication to make sure that voters have the full story. We’re estimating this is going to be, in total, an $8-million campaign, by the time the vote actually happens next year," he said.

July 16, 2017 in Campaigns, elections and public officials concerning reforms, Initiative reforms in states, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Saturday, July 8, 2017

"State of Emergency"!?!: Nevada dispensaries struggling to keep up with demand after first week of recreational sales

Download (5)As reported in this USA Today article, headlined "Nevada dispensaries running out of marijuana," recreational marijuana sales are off to quite a start in the Silver State and that is actually creating a significant problem:

Nevada dispensaries licensed to sell recreational marijuana are running out of pot less than a week after the legal market came to life, according to the state Department of Taxation.

On Friday, taxation officials announced that Gov. Brian Sandoval had endorsed the department's "statement of emergency," allowing state officials to consider adopting an emergency marijuana regulation that could alleviate the shortage. The Nevada Tax Commission will vote on the regulation Thursday.

"Based on reports of adult-use marijuana sales already far exceeding the industry’s expectations at the state’s 47 licensed retail marijuana stores, and the reality that many stores are running out of inventory, the Department must address the lack of distributors immediately. Some establishments report the need for delivery within the next several days," said department spokeswoman Stephanie Klapstein in an email.

The regulation would allow the department to consider a larger pool of applicants for distribution licenses, licenses that permit the transport of recreational marijuana from cultivation and packaging facilities to the dispensaries.

When the state law legalizing recreational marijuana was passed in November, wholesale alcohol distributors were promised exclusive rights to transport wholesale marijuana for the first 18 months of legal sales. The department, however, has run into multiple roadblocks in reviewing the seven applications that they have received as of Friday.

"We continue to work with the liquor wholesalers who have applied for distribution licenses, but most don’t yet meet the requirements that would allow us to license them. Even as we attempted to schedule the final facility inspection for one of the applicants this week, they told us their facility was not ready and declined the inspection. As of mid-day Friday, not one distribution license has been issued," Klapstein said....

Now that any marijuana dispensary licensed to sell recreational marijuana must receive all product — both recreational and medical — from a distributor licensed to transport recreational marijuana, many of them are stuck with dwindling supply. "The business owners in this industry have invested hundreds of millions of dollars to build facilities across the state," Klapstein said. “They have hired and trained thousands of additional employees to meet the demands of the market. Unless the issue with distributor licensing is resolved quickly, the inability to deliver product to retail stores will result in many of these people losing their jobs and will bring this nascent market to a grinding halt. A halt in this market will lead to a hole in the state’s school budget."

While the department does not plan to release any numbers on state tax revenue from the industry until late September, the Nevada Dispensary Association earlier this week estimated that dispensaries made about $3 million in sales and the state made about $1 million in tax revenue between Saturday and Tuesday. Revenue collected from the 15% cultivation tax goes toward schools, while the 10% sales tax revenue goes toward the state's rainy day fund, which can be used for any number of expenditures.

July 8, 2017 in Business laws and regulatory issues, Initiative reforms in states, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Friday, July 7, 2017

"Some Alaska marijuana shops’ Facebook pages are being taken down"

CENSOR-FACEBOOK-MARIJUANA-hugeThe title of this post is the headline of this interesting news report from The Last Frontier.  Here are the details:  

Some Alaska marijuana shops have suddenly found themselves with one less outlet for advertising this week. Owners and employees of at least six marijuana retail stores in the state said that within the past week, their Facebook pages were either taken down or entirely deleted by the tech company.

At Arctic Herbery, owner Bryant Thorp said his shop's page was shut down Friday or Saturday. Another Anchorage shop, Enlighten Alaska, also had its page removed from the site about a week ago, said co-owner Jane Stinson. It also happened at Frozen Budz and Pakalolo Supply Co., both in Fairbanks, and Dankorage and Alaska Fireweed in Anchorage. “(Facebook) has been huge for us. That’s where almost all our advertising comes from,” Thorp said. He’s had issues with his Facebook page for a few months and has since focused on boosting his following on Twitter and Instagram.

Facebook has a set of community standards that dictates what is and isn't allowed on the platform, said spokeswoman Ruchika Budhraja. “Anyone can report content to us if they think it violates standards,” she said. “Our team reviews reports to determine whether there was a violation.”

On a page explaining those community standards, under a section called "regulated goods," Facebook says it prohibits "any attempts by private individuals to purchase, sell, or trade prescription drugs, marijuana, firearms or ammunition." Marijuana businesses generally have to use caution in advertising, in part because state guidelines for pot ads are somewhat unclear, Alaska Dispatch News reported last year. Facebook — along with other social media platforms — is one of the biggest places for getting the word out about their businesses.

Jana Weltzin, an Anchorage-based attorney who specializes in the marijuana industry, said this is hardly the first time cannabis companies have had issues with Facebook. “This is not a new thing,” she said, adding that Colorado pot businesses dealt with a similar issue last year. “If you’re doing something that’s illegal and Facebook knows that, they try to not promote that. It’s still illegal under federal law.”...

The timing of the Facebook page removals seemed odd to some people in the local marijuana industry, too. The pages went dark around the same time Facebook CEO Mark Zuckerberg was visiting Alaska for the Fourth of July weekend. "That's what kills me," said Cary Carrigan, executive director of the Alaska Marijuana Industry Association. "Zuckerberg shows up and Facebook pages are down."

"It's a weird coincidence, that's for sure," said Rich Beezley, chief operating officer at AK Fuzzy Budz in Anchorage. He said the shop's Facebook page has been shut down four times in the past month, but didn't have an issue this past weekend. He speculated that might be because the shop was closed for the holiday and wasn't posting on Facebook. "We're just in fear we're going to be shut down too," he said....

At Pakalolo in Fairbanks, co-owner Keenan Hollister said he got a notice on the Fourth of July that his company's page was taken down. “We face challenges every day running a legal cannabis business, but this is a disappointing one,” he said. “It feels like an attack on commerce in our state.”...

Some retail shops around the state don't appear to be affected. Facebook pages for Herbal Outfitters in Valdez, The Herbal Cache in Girdwood and Rainforest Farms in Juneau were still up Thursday afternoon.

This effective on-line article from a few months ago, titled "The Legally Hazy World of Cannabis Marketing," provides some additional background and context on the interesting issues that arise from the modern intersection of social medial and marijuana reform.

July 7, 2017 in Business laws and regulatory issues, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Wednesday, July 5, 2017

Delaware creates big "Adult Use Cannabis Task Force" to study legalization reforms

Dell2As reported in this local article, in Delaware the "General Assembly has passed a concurrent resolution that will create a task force to study the outcome of regulating and taxing marijuana for recreational use in Delaware for adults 21 and older." Here is more about this interesting development that could possibly increase the chances that the First State becomes the first state to fully legalize marijuana via the traditional legislative process:

The Adult Use Cannabis Task Force “shall study adoption of a model for regulation and taxation of adult-use cannabis in Delaware, including local authority and control, consumer safety and substance abuse prevention, packaging and labeling requirements, impaired driving and other criminal law concerns, and taxation, revenue, and banking issues.” It will hold its first meeting no later than September 7, 2017, and it must report its findings and recommendations to the governor and the General Assembly by January 31, 2018.

"The General Assembly is ready to take a serious look at regulating and taxing marijuana for adult use,” said Maggie Ellinger-Locke, legislative counsel for the Marijuana Policy Project. “This is an opportunity for a variety of stakeholders to come together and examine every aspect of this issue. We hope it will pave the way for the General Assembly to adopt a more thoughtful approach to cannabis next session. Lawmakers can see the direction the country is moving on this issue and they know most Delaware voters support making marijuana legal for adults.”

The 23-member task force will be co-chaired by Sen. Margaret Rose Henry and Rep. Helene Keeley, Democrats who sponsored legislation this year to regulate and tax marijuana like alcohol for adults 21 and older. It will also include:

• a state senator and a state representative from the minority caucus, appointed by the Senate president and House speaker, respectively;

• the Secretary of the Department of Finance;

• the Secretary of the Department of Natural Resources and Environmental Control;

• the Secretary of the Department of Safety and Homeland Security;

• the Director of the Division of Public Health;

• the Director of the Division of Substance Abuse and Mental Health;

• the State bank commissioner;

• the Attorney General;

• the Chief Defender, Office of Defense Services;

• the Mayor of the City of Wilmington;

• the Chair of the Medical Marijuana Oversight Committee;

• a marijuana policy reform advocate and a medical marijuana industry representative, both appointed by the Governor;

• a physician with experience recommending treatment with medical marijuana, appointed by the Medical Society of Delaware

• the President of the Delaware League of Local Governments;

• the Chair of the Delaware Police Chiefs’ Council;

• the Chair of the Employer Advocacy Committee of the Delaware State Chamber of Commerce;

• a representative of AAA Mid-Atlantic; and

• a pharmacist, appointed by the President of the Delaware Pharmacist Society.

More than 60% of Delaware voters support making marijuana legal, according to a September 2016 poll by the University of Delaware Center for Political Communication.

July 5, 2017 in Campaigns, elections and public officials concerning reforms, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (2)