Friday, May 28, 2021

"Marijuana Tax Revenue in States that Regulate Marijuana for Adult Use"

DownloadThe title of this post is the title of this notable new report and accounting from folks at the Marijuana Policy Project.  Here is how it gets started (with my highlight):

Legalizing marijuana for adults has been a wise investment.  Since 2014 when sales began in Colorado and Washington, legalization policies have provided states a new revenue stream to bolster budgets and fund important services and programs.  As of May 2021, states reported a combined total of $7.9 billion in tax revenue from legal, adult-use marijuana sales.  In addition to revenue generated for statewide budgets, cities and towns have also generated hundreds of thousands of dollars in new revenue from local adult-use cannabis taxes.

Eighteen states have enacted laws legalizing, taxing, and regulating cannabis for adults 21 and older.  Eight of the laws passed in 2020 or 2021, and in seven of those states, licensing and tax collections have not yet begun.  This document reviews each state’s adult-use cannabis tax structure, population, and revenue from legalization.  It does not include medical cannabis tax revenue, application and licensing fees paid by cannabis businesses, additional income taxes generated by workers in the cannabis industry, or corporate taxes paid to the federal government.

The report provides a helpful overview of all the basic tax structures in place for adult-use marijuana as of May 2021, as well as reports on total collections in these states to date. Notably, while Colorado is often thought about as the first legalization state and California is rightly seen as the biggest legalization state, this report details that Washington is as of now the richest state in tax revenues with over $2.5 billion collected.  (But California's tax revenue in 2020 was nearly twice that of Washington's according to this report, so by 2022 we should expect the Golden State to have collected the most tax gold from adult-use marijuana legalization.)

May 28, 2021 in Business laws and regulatory issues, History of Marijuana Laws in the United States, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms, Taxation information and issues | Permalink | Comments (0)

Could reintroduction of MORE Act in US House actually make federal marijuana reform less likely?

6a00d8341bfae553ef0223c85155dc200c-320wiThe question in the title of this post is my initial reaction and worry in response to this press release from the office of House Judiciary Chair Jerry Nadler.  Here are some basics from the release:

Today, House Judiciary Committee Chairman Jerrold Nadler (D-NY), along with Representatives Earl Blumenauer (D-OR), Barbara Lee (D-CA), Sheila Jackson Lee (D-TX), Hakeem Jeffries (D-NY) and Nydia Velázquez (D-NY) reintroduced the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, one of the most comprehensive marijuana reform bills ever introduced in the U.S. Congress.

"Since I introduced the MORE Act last Congress, numerous states across the nation, including my home state of New York, have moved to legalize marijuana. Our federal laws must keep up with this pace," said Chairman Nadler. "I’m proud to reintroduce the MORE Act to decriminalize marijuana at the federal level, remove the needless burden of marijuana convictions on so many Americans, and invest in communities that have been disproportionately harmed by the War on Drugs. I want to thank my colleagues, Representatives Barbara Lee and Earl Blumenauer, Co-Chairs of the Congressional Cannabis Caucus, as well Representatives Sheila Jackson Lee, Hakeem Jeffries, and Nydia Velázquez for their contributions to this legislation, and I look forward to our continued partnership as we work to get this legislation signed into law."...

Following efforts led by states across the nation, the MORE Act decriminalizes marijuana at the federal level. The bill also aims to correct the historical injustices of failed drug policies that have disproportionately impacted communities of color and low-income communities by requiring resentencing and expungement of prior convictions. This will create new opportunities for individuals as they work to advance their careers, education, and overall quality of life. The MORE Act also ensures that all benefits in the law are available to juvenile offenders....

In the 116th Congress, Chairman Nadler led the House of Representatives in passing the MORE Act by a bipartisan vote of 228 to 164.

Because the MORE Act is a very ambitious bill, it has lots of support from many advocacy groups and long-time supporters of marijuana reform. But because the MORE Act is a very ambitious bill, it got no traction in the Senate in the last Congress and there is little reason to be confident it will get any traction in the Senate in this Congress. 

This Politico article last month, headlined "Senate Democrats split over legalizing weed; Several told POLITICO they’re opposed to Majority Leader Chuck Schumer's legalization push," highlighted that not even all Senate Democrats are inclined to support federal marijuana legalization.  That article also rightly noted that there are some particular provisions in the MORE Act that are especially likely to turn off libertarian-leaning GOP Senators who might be inclined to support another kind of federal reform.

Because I have never work on the hill, I am not sure if a bill like the MORE Act with little chance of actual passage can still help advance the reform cause.  But I am sure that the current President and the current Congress seem generally disinclined to do anything all that big in this arena.  The MORE Act is not only big, but it also presents the possibility of indirectly thwarting smaller efforts garnering needed support and momentum going forward.

In this post last month, I suggested that Senator leader Chuck Schumer may have a shrewd view of how best to advance marijuana reform legislation in his chamber.  But I remain worried that there really is neither a will nor a way for big federal marijuana reforms like the MORE Act to become law anytime soon. 

May 28, 2021 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (1)

Friday, May 21, 2021

"The Public Health Effects of Legalizing Marijuana"

The title of this post is the title of this new paper authored by D. Mark Anderson and Daniel I. Rees available via SSRN. Here is its abstract:

Thirty-six states have legalized medical marijuana and 14 states have legalized the use of marijuana for recreational purposes.  In this paper, we review the literature on the public health consequences of legalizing marijuana, focusing on studies that have appeared in economics journals as well as leading public policy, public health, and medical journals.  Among the outcomes considered are: youth marijuana use, alcohol consumption, the abuse of prescription opioids, traffic fatalities, and crime.  For some of these outcomes, there is a near consensus in the literature regarding the effects of medical marijuana laws (MMLs).  As an example, leveraging geographic and temporal variation in MMLs, researchers have produced little credible evidence to suggest that legalization promotes marijuana use among teenagers.  Likewise, there is convincing evidence that young adults consume less alcohol when medical marijuana is legalized.  For other public health outcomes such as mortality involving prescription opioids, the effect of legalizing medical marijuana has proven more difficult to gauge and, as a consequence, we are less comfortable drawing firm conclusions.  Finally, it is not yet clear how legalizing marijuana for recreational purposes will affect these and other important public health outcomes.  We will be able to draw stronger conclusions when more post-treatment data are collected in states that have recently legalized recreational marijuana.

May 21, 2021 in Medical Marijuana Commentary and Debate, Medical Marijuana Data and Research, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research | Permalink | Comments (0)

Monday, May 17, 2021

Alabama Gov signs medical marijuana legislation just days after Mississippi Supreme Court blows up medical marijuana initiative

As detailed by these recent stories and headlines, it has been an interesting time lately with respect to marijuana reform in the deep south:

From the Yellowhammer State, "Gov. Kay Ivey signs Alabama medical marijuana law"

From the Magnolia State, "Mississippi Supreme Court overturns medical marijuana Initiative 65"

There are interesting and important facets to both of these stories, but together they serve as a terrific reminder of just how dynamic and unpredictable marijuana reforms can be on any number of legal and political fronts.  But for the historic stigma (as well as persistent federal prohibition), I suspect lots and lots of prominent folks would be writing lots and lots of books and articles about what we can and should be learning from modern marijuana reform movements for all sort of other social and policy arenas.

May 17, 2021 in Campaigns, elections and public officials concerning reforms, Medical Marijuana State Laws and Reforms, Who decides | Permalink | Comments (0)

Sunday, May 16, 2021

"Five Decades of Marijuana Decriminalization"

Marijuana-Decriminalization_project-headerThe title of the title for this great new resource page from the the Drug Enforcement and Policy Center (which I help direct).  The page provides data and discussion concerning decades of state and local marijuana decriminalization experiences.  The subtitle of the page highlights a key theme of this new resource page: "Exploring the limited and disparate impact of fragmented reforms."  I highly recommend folks check out all the data and original visuals on this page.  Here is some of the page's introductory text:

The topic of drug decriminalization has gained considerable attention in the United States after Oregon voted in November 2020 to decriminalize all drugs in that state.  While we consider the possible impacts of broader drug decriminalization efforts, it is useful to look back at the five decades of marijuana decriminalization for lessons on effects and implementation.

In 1972, the US National Commission on Marihuana and Drug Abuse, known as the Shafer Commission, issued a report advocating a “social control policy seeking to discourage marihuana use” but asserting that criminal law was “too harsh a tool to apply to personal possession even in efforts to discourage use.”  In 1973, Oregon became the first state to implement the recommendations of the Shafer Commission by decriminalizing marijuana statewide. Ten states followed suit in the next five years: Alaska, California, Colorado, Maine and Ohio in 1975; Minnesota in 1976; Mississippi, New York and North Carolina in 1977; and Nebraska in 1978. In 1977, President Jimmy Carter even urged Congress to consider marijuana decriminalization.  The decriminalization movement stalled throughout the 80’s and 90’s with President Reagan’s focus on the war on drugs, but the 2000’s brought a sustained attention to the issue with a wave of decriminalization efforts, medical-use and adult-use cannabis legalizations across 35 states, and a rapidly changing public opinion....

By our count, at the end of 2010, roughly only one-third of Americans lived in a jurisdiction with full or partial decriminalization laws.  By April 2021, over 75% of people in the United States lived in a jurisdiction that has passed some form of decriminalization or legalization....

These numbers can mask the fact that not all decriminalization initiatives are created equal and that some forms of decriminalization do not ensure significant reduction in criminal justice encounters for marijuana users.  Despite the growth in the number of states that have fully legalized cannabis for all forms of adult use (17 states, the District of Colombia and three U.S. territories), residents of 14 states (29% of the U.S. population) continue to be barred from using cannabis lawfully even for medical purposes and many others are subjected to a patchwork of decriminalization statutes, which can differ from a city to city if full decriminalization is not adopted on statewide basis.

May 16, 2021 in Criminal justice developments and reforms, History of Marijuana Laws in the United States, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Saturday, May 15, 2021

Notable new GOP bill for ending federal marijuana prohibition

6a00d8341bfae553ef0223c85155dc200c-320wiIn a post last month, titled "Senate majority leader shrewdly emphasizing "freedom" in his push for federal marijuana reform," I explained why I viewed Senator Chuck Schumer's focus on "freedom" in his marijuana reform pitch to be appealing and shrewd given that it lines up with a lot of the smaller-government rhetoric often coming from GOP politicians and activists.  Consequently, I was not surprised to see this past week that part of the pitch for a notable new GOP-sponsored bill to end federal marijuana prohibition includes an emphasis on greater liberty for individuals and states concerning marijuana practices.   

This new 14-page marijuana reform bill is available at this link, and it is formally titled the "Common Sense Cannabis Reform for Veterans, Small Businesses, and Medical Professionals Act."  This press release from Congressman Dave Joyce (OH-14), one of the sponsors, provides these details:

Through his work with the Cannabis Caucus and his position on the House Appropriations Committee, Joyce has helped lead the effort to reform the federal government’s outdated approach to cannabis and protect the rights of states across the country, like Ohio, that have voted to implement responsible cannabis policies. Specifically, the Common Sense Cannabis Reform for Veterans, Small Businesses and Medical Professionals Act, which has been applauded by several organizations, would:

  • Remove cannabis from the Federal Controlled Substances Act.
  • Direct the U.S. Food and Drug Administration and the Alcohol and Tobacco Tax and Trade Bureau to issue rules to regulate cannabis modeled after the alcohol industry within one year of enactment.
  • Create a federal preemption to protect financial institutions and other businesses in non-cannabis legal states so that they can service cannabis companies.
  • Allow the Department of Veterans’ Affairs to prescribe medical cannabis to veterans.
  • Direct the National Institutes of Health to conduct two studies on cannabis as it pertains to pain management and cannabis impairment and report to Congress within two years of enactment.

And here is some of the media coverage that provides a review of this bill:

May 15, 2021 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)

Wednesday, May 12, 2021

"Comparing Permissive Illegality Frameworks in Denmark and the United States"

The title of this post is the title of this new paper recently posted to SSRN and authored by Alexa Askari, a student at The Ohio State University Moritz College of Law.  (This paper is yet another in the on-going series of student papers supported by the Drug Enforcement and Policy Center.)   Here is this latest paper's abstract:  

This paper compares the foundations of the Christiania commune in Copenhagen, Denmark, with the origins of the United States war on drugs, both phenomena of the anti-hippie sentiment of the 1970s.  While the Danish took a relatively lax approach to the commune’s cannabis-related activities, in the U.S. crackdowns were widespread and disproportionately impacted people of color.  Today, Christiania remains the focal point of the Danish cannabis trade, while the United States has become a patchwork of varying state-level permissive regimes fundamentally in conflict with federal prohibition.  How both countries’ relationships with cannabis will continue to develop ultimately depends on the political will of those in power.

May 12, 2021 in History of Marijuana Laws in the United States, International Marijuana Laws and Policies, Political perspective on reforms, Recreational Marijuana Commentary and Debate | Permalink | Comments (1)

Monday, May 10, 2021

Guest-post: "Tax Provisions in State Constitutions May Hinder Marijuana Legalization Efforts"

6a00d83451574769e20224df387165200bI was very pleased to have received the following guest post content from Professor  Andrew D. Appleby of Stetson University College of Law:

Although the recreational marijuana movement has gained momentum at the state level, several states may be unable to legalize recreational marijuana because of tax limitations in their state constitutions.  A primary motivation for legalization is increased tax revenue, and every state that has legalized recreational marijuana also taxes it.  Many states, however, have broad constitutional provisions designed to make tax increases more difficult, most notably provisions that require supermajority approval to create or increase any tax.  There appears to be a third wave of these tax supermajority provisions proliferating. Florida voters approved a constitutional provision in 2018 and several other states, including New York in 2021, have considered supermajority approval provisions.  These provisions have several unintended consequences, as discussed in my forthcoming article, "Designing the Tax Supermajority Requirement."

These provisions impact recreational marijuana in several ways.  Most state tax supermajority provisions apply only to the legislative process, so many states are forced to use the voter approval process for marijuana legalization efforts.  Prior to 2021, only two states had legalized recreational marijuana through the legislative process.  Neither state has a tax supermajority requirement, and neither state would have satisfied the requirement.  Vermont was unable to include a tax provision in its initial legalization bill and needed to enact a separate tax statute two years later.  Three states legalized recreational marijuana through the legislative process in 2021.  None of the legislation passed with two-thirds supermajority approval.

Recreational marijuana is still divisive in many states for many reasons, particularly as it remains illegal federally, so achieving supermajority approval is difficult.  Even in politically liberal states, recreational marijuana legalization voter initiatives have passed by narrow margins.  In the 2016 election year, for example, the Massachusetts initiative passed with 53% of the vote and the California initiative garnered only 57% approval.  Four states legalized recreational marijuana through ballot initiatives in 2020.  Only New Jersey achieved supermajority approval, and just barely, with 67% voting in favor.  South Dakota, which has a tax supermajority provision and “one subject” provision in its constitution, had its legalization initiative declared unconstitutional, with the South Dakota Supreme Court currently considering the appeal.

Florida is also grappling with constitutional hurdles in its marijuana legalization efforts, as the Florida Supreme Court struck down a proposed ballot measure because of misleading language.  Even if the measure were to appear on the ballot, Florida has an additional tax supermajority provision that requires two-thirds supermajority approval for voters to amend the constitution to create or increase a tax.  The experiences in South Dakota and Florida illustrate how tax supermajority provisions have the unintended consequence of impeding recreational marijuana efforts.

May 10, 2021 in Business laws and regulatory issues, Political perspective on reforms, Recreational Marijuana Commentary and Debate, Taxation information and issues , Who decides | Permalink | Comments (1)

Thursday, May 6, 2021

Equity getting lots of attention, but still much work to do, as social justice becomes centered in marijuana reform efforts

Social-Equity-2.0-Lessons-from-the-States_for-video2I flagged in this post the great Drug Enforcement and Policy Center (DEPC) event that took place last week titled "Social Equity 2.0: Lessons From Recent State Developments."  Though I may be a bit biased, I think this 90-minute event was a spectacular review by spectacular speakers of the importance and the challenges of centering social justice and equity issues in modern marijuana reform.  But do not take my word for it, and everyone can now watch the full event via the video link on this page.  In addition, Jimi Devine at The Village Voice did this thorough review of the panel discussion under the headline "The Time Has Come for Cannabis Equity." Here is how the review gets started:

As cannabis legalization enters its newest phase with social equity dominating the conversation, Ohio State University’s Moritz College of Law hosted an advocate and regulator-packed panel to map out a path to Social Equity 2.0.

The Tri-State was well represented on the panel. Incoming New Jersey Cannabis Regulatory Commission chair Dianna Houenou spoke to how the issue had been embedded from the start in her new state agency. Minority Cannabis Business Association President Jason Ortiz spoke about the current effort in Connecticut to put equity front and center in the conversation.

The pair were joined by Illinois governor J. B. Pritzker’s senior advisor for cannabis control, Toi Hutchinson, and former Massachusetts Cannabis Commission member Shaleen Title. Both have championed the issue in their respective states over the years. Politico’s Natalie Fertig led the conversation.

Meanwhile, I have see a lot more significant coverage of equity issues in all sorts of distinct media in recent weeks. Here is a sampling:

From the AP, "Marijuana social equity: Seeds planted but will they grow?"

From Brookings, "State cannabis reform is putting social justice front and center"

From MJBizDaily, "New York’s marijuana social equity program eyed as possible game changer"

From Self, "What Will It Take to Build a Truly Equitable Cannabis Industry?"

May 6, 2021 in Campaigns, elections and public officials concerning reforms, Race, Gender and Class Issues, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)

Tuesday, May 4, 2021

Effective coverage of marijuana expungement efforts and work still to do

Marijuana-record-relief-map.4.29.21-1024x890The PBS News Hour has this great new and lengthy piece about marijuana expungement laws and practices under the headline "As more states legalize marijuana, people with drug convictions want their records cleared."  Regular readers know I have long been invested in these issues  (see my 2018 article, "Leveraging Marijuana Reform to Enhance Expungement Practices"), and I am especially pleased that folks at the Drug Enforcement and Policy Center worked with folks at the Collateral Consequences Resource Center to create the national map found in the PBS piece and reprinted here.  I recommend the PBS piece in full, and here are some excerpts:

Sixteen states and the District of Columbia have legalized recreational marijuana over the last nine years, and industry advocates have applauded measures to de-stigmatize the substance and bring major revenue to state coffers.  But for people with lingering drug convictions like Michael, the news has raised more questions about what legalization means for their criminal records.

Currently in Virginia, “you have to go through all these hoops and loopholes to actually have an expungement,” Michael said.  This may soon change.  Like many other states that recently legalized marijuana, Virginia lawmakers included provisions in their legislation that over several years will allow for the automatic expungement of certain marijuana convictions, meaning people like Michael may one day see their records cleared without having to petition to do so.

Such measures signal a broader effort by lawmakers to right the wrongs of the war on drugs, a decades-long campaign by federal and state governments to crack down on use of illegal drugs that also helped incarceration balloon in the U.S.  States have begun to legalize substances like marijuana that have disproportionately imprisoned Black and brown Americans over the last 50 years, affecting their access to employment, education and housing.  Racial justice advocates argue that state legislatures should not consider legalization bills unless they include proposals to help people easily expunge their records, as well as eliminate some of the barriers to entry Americans of color face when looking for work in the cannabis industry.

But just as states did not legalize recreational marijuana overnight, the lingering effects of the war on drugs are not likely to quickly disappear.  Though Virginia Gov. Ralph Northam pushed to make cannabis legal in the state by the beginning of July, for example, many expungement provisions in the legalization and record-sealing laws are not set to take full effect until 2025 as state police and courts need time to update their computer systems and processes.

As a result, many Americans with marijuana charges on their records are currently living in a grey area, cautiously optimistic about the wave of legalization taking place but unclear what it means for their future.  “[Politicians] are making strides toward being really liberal and legalizing [weed], and that’s cool, but at the same time I served 10 years for this,” said Harry Kelso, another Virginia resident who served time in prison for possession and distribution.  “So at some point, I feel like I deserve some reparations.”...

Pauline Quirion, director of the Criminal Offender Record Information (CORI) & Re-Entry Project at Greater Boston Legal Services and an adviser to Mass CultivatED program participants, said she thinks it’s a good sign when she works with clients seeking to seal or expunge their records because it means they’re focused on securing a career.  She said that the adverse effects of a criminal record are evident from their experiences with the job search process. “Some clients have applied for like 200 jobs and they’re rejected, but they keep applying,” she said.  “So you have to have a lot of stamina to find employment.”...

David Schlussel, an expert on marijuana expungement with the Collateral Consequences Resource Center, said recent efforts to pass laws to expunge marijuana records in states such as Virginia, New Mexico, and Arizona signal a greater awareness of the harmful impact cannabis continues to have on communities targeted by the criminal justice system.  He said that when states first began legalizing recreational marijuana 10 years ago, they rarely considered legislation that would help people clear their records.  Campaign messaging to promote the new laws in states such as Colorado and Washington was usually driven by consumerism and tax benefits rather than racial justice.  Schlussel said this began to change as lawmakers began to emphasize the necessity of racial justice in marijuana reform in their messages to voters, which in turn gave it more political capital.

More than 20 states have passed reforms related to marijuana expungement, Schlussel said, with outcomes ranging from automatic pardons for a broad range of offenses to the possibility of expungement for a narrower set of charges.  But once these laws are on the books, states could very well face challenges getting a variety of marijuana charges expunged, he added.  While states like New Jersey, New York, and New Mexico recently passed bills to automatically expunge a wide range of marijuana offenses from people’s records, others have pursued approaches that are resource-intensive and still include a number of hurdles for people who want their offenses cleared.

In Arizona, where recreational marijuana recently became legal, expungement is possible but not automatic.  Julie Gunnigle, who ran unsuccessfully for Maricopa County attorney in the fall, said clearing Arizonans’ records is dependent on the support of county attorneys and the state’s attorney general, making it subject to the whims of politicians who may not necessarily be inclined to clear a broad swath of charges.  Although Gunnigle praised the “first-of-its-kind” expungement law that recently passed along with legalization, she added that “it is now going to be incumbent on leaders to find the folks who are eligible or those who are eligible to come forward and file these petitions if they want to get justice.”

May 4, 2021 in Campaigns, elections and public officials concerning reforms, Criminal justice developments and reforms, History of Marijuana Laws in the United States, Race, Gender and Class Issues, Who decides | Permalink | Comments (0)

"Equity in Cannabis Agriculture"

The title of this post is the title of this notable new article now available via SSRN and authored by Ryan Stoa. Here is its abstract:

Cannabis legalization is celebrated by many as a long-overdue rectification of a drug policy that has oppressed and incarcerated vulnerable people and communities for decades.  But as the legalization era continues and the legal cannabis industry starts to take shape, legalization advocates and industry stakeholders must reckon with a sobering reality: the benefits of legalization are not being equitably shared, and vulnerable communities that were hit the hardest during the war on drugs are not well represented in legal cannabis markets.

This reality is as true for stakeholders of cannabis agriculture as it is for other sectors of the cannabis industry.  As the first step in the supply chain, the cultivation of cannabis sets the tone for the industry as a whole.  A well-regulated, equitable, and sustainable cannabis agriculture industry has significant catalytic potential for downstream market participants.  Unfortunately, however, the cannabis agriculture industry suffers from many equity shortfalls.

This Essay will explore three of these shortfalls: (1) access to agricultural lands and start-up capital, (2) cultivation licenses and state distribution of benefits, and (3) labor standards and farmworker protections.  While there are many more equity issues facing cannabis agriculture, this Essay shines a light on these three while identifying areas of concern for future research.  It is clear that stakeholders of cannabis agriculture, including regulators and business owners, can and should prioritize equity and participation in the development of their industry.

May 4, 2021 in Business laws and regulatory issues, Race, Gender and Class Issues, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)