Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Tuesday, September 8, 2020

"Building a Better Marijuana Tax"

The title of this post is the title of this new paper recently posted to SSRN and authored by Carl Crow, a recent graduate of 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:

Eleven states and the District of Columbia have passed legislation legalizing adult possession and use of marijuana.  Of those twelve jurisdictions, only eight of those jurisdictions have active markets where the substance can be legally bought and sold, and each imposes a different taxation scheme on the flow of marijuana goods in the marketplace.  This paper analyzes each tax base and then proposes a bifurcated recreational marijuana tax scheme for states that are currently thinking about legalization: (i) tax flower, bud, and trim based on weight; and (ii) tax concentrates, edibles, oils, and other “distilled” marijuana products based on potency, currently measured by THC content.

The idea behind taxing by potency is two-fold: first, the state may pursue public health goals by nudging consumers away from high-potency forms of marijuana – and prevent producers from gravitating even more strongly toward high-potency goods; second, taxing by potency may help normalize the recreational use of marijuana by encouraging society to treat marijuana more like other legal drugs such as alcohol and cigarettes.  While no tax scheme is perfect, a hybrid weight/potency base combined with a sunset provision to allow further research on the area appears to be the ideal way to regulate marijuana at this moment in time.

September 8, 2020 in Business laws and regulatory issues, Recreational Marijuana Commentary and Debate, Taxation information and issues , Who decides | Permalink | Comments (0)

Monday, September 7, 2020

Noticing the notable "red state" realities of marijuana reform ballot initiatives in 2020

Download (26)The Daily Beast has this new piece highlighting that the bulk of the marijuana reform initiatives on the ballot in 2020 are in so-called red states. The piece is fully headlined "Marijuana Is Making Its Mark on Ballots in Red States: Republican-led legislatures have opposed legalization measures, so proponents are going right to the voters." Here are excepts:

Montana and a handful of other states this fall [will] decide whether to legalize recreational or medical marijuana. Five of the six states with ballot questions lean conservative and are largely rural, and the results may signal how far America’s heartland has come toward accepting the use of a substance that federal law still considers an illegal and dangerous drug.

Since Colorado first allowed recreational use of marijuana in 2014, 10 other states have done the same. Most are coastal, left-leaning states, with exceptions like Nevada, Alaska and Maine. An additional 21 states allow medical marijuana, which must be prescribed by a physician.

This year, marijuana advocates are using the November elections to bypass Republican-led legislatures that have opposed legalization efforts, taking the question straight to voters. Advocates point to a high number of petition signatures and their own internal polling as indicators that the odds of at least some of the measures passing are good....

Mississippi and Nebraska voters will decide on medical marijuana measures. South Dakota will be the first state to vote on legalizing both recreational and medical marijuana in the same election.

Montana, Arizona and New Jersey, all medical marijuana states, will consider ballot measures in November to allow recreational sales, a move opponents consider evidence of a slippery slope....

The Marijuana Policy Project is helping to coordinate the Montana legalization effort. Its deputy director, Matthew Schweich, said the organization does so only when polling suggests at least half of voters would support the measure. “It’s becoming normalized for people,” Schweich said. “People know that other states are legalizing it and the sky has not fallen.”

An effort to legalize marijuana in rural, conservative states would have been an uphill battle even a few years ago. But several factors have worked toward changing attitudes there, Schweich said. They include a gradually increasing acceptance in red states of neighbors that have legalized recreational pot—and seeing the tax revenue that legal marijuana brings. But perhaps the biggest catalyst toward normalizing pot use is having an established medical marijuana program, Schweich said.

After 15 years, Montana’s medical cannabis program is firmly rooted and has survived several legislative attempts to restrict it or shut it down. According to the Montana Department of Public Health and Human Services, more than 500 marijuana providers were serving 38,385 people as of July, which represents nearly 4 percent of the state’s population....

In Mississippi, 20 medical marijuana bills have failed over the years in the Statehouse. This year, 228,000 state residents signed petitions in support of a medical marijuana initiative to allow possession of up to 2.5 ounces of marijuana to treat more than 20 qualifying medical conditions. In response, lawmakers put a competing measure on the ballot that would restrict marijuana use to terminally ill patients and require them to use only pharmaceutical-grade marijuana products.

Jamie Grantham, spokesperson for Mississippians for Compassionate Care, called the measure an effort by the state to split the vote and derail legalization efforts. “I’m passionate about this because it’s a plant that God made and it can provide relief for those who are suffering,” said Grantham, who described herself as a conservative Republican. “If this is something that can be used to help relieve someone’s pain, then they should be able to use it.”

But opposition is starting to build. Langton, the Mississippi Board of Health member, is working with Mississippi Horizon, a group fighting legalization. Langton said he opposes the original initiative because he believes it’s “overly broad” and would allow dispensaries within 500 feet of schools and churches. It could also put Mississippi on a path toward legalized recreational use, he said. He added: “They say that marijuana is a natural plant, but poison ivy is natural, too. Just because something is natural doesn’t mean it is good for you.”

September 7, 2020 in Campaigns, elections and public officials concerning reforms, History of Marijuana Laws in the United States, Initiative reforms in states, Medical Marijuana Commentary and Debate, Political perspective on reforms, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)

Friday, August 14, 2020

A classic, modern (or modern, classic) debate on "Should We Legalize Marijuana?"

Newsweek has brought together two leading voices in the marijuana reform conversation here under the headline  "Debate: Should We Legalize Marijuana? | Opinion."  Here is how the opinion editor sets up the discussion and links to the commentary:

Drug overdoses in America have inexplicably skyrocketed over the past five years. We are, it seems, facing terrible societal crises of mass despondency and lonely atomization. What's more, the stuff peddled to kids today, more potent in terms of THC level than ever before, ain't exactly your grandpa's weed from Woodstock. But on the other hand, surely the War on Drugs has been an abject failure, needlessly ruining lives and locking up youngsters who wouldn't otherwise have a chance at success in live. And as American public opinion shifts, is it finally time to fully legalize recreational marijuana?

This week, of Law Enforcement Action Partnership debates Dr. Kevin Sabet of Smart Approaches to Marijuana on one of the perennial questions facing the American populace. We hope you enjoy the detailed, lively exchange.

As is often the case, these two advocates make their arguments eloquently and effectively. Franklin stresses the myriad criminal justice harms and inequities that have resulted from marijuana prohibitions; Sabet stresses the myriad public health risks and inequities that may result from marijuana legalization and commercialization.  Most of their points are sound, and I often think the crux of the marijuana reform debate turns on one's perspective on whether one is more concerned with documented criminal justice harms and inequities from prohibition or with potential public health risks and inequities that may result from marijuana legalization and commercialization.

August 14, 2020 in Criminal justice developments and reforms, History of Marijuana Laws in the United States, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (1)

Sunday, August 9, 2020

Is the Black Lives Matter movement now significantly advancing the marijuana reform movement?

The question in the title of this post is prompted by this lengthy new Politico piece.  The headline, "Black Lives Matter movement sparks 'collective awakening' on marijuana policies," and the start of the piece suggests the answer to the question is yes:

States and cities across the country have overhauled their marijuana policies in recent months, propelled by the Black Lives Matter protests over racial inequality and police brutality.

Since protests began in early June, many states and municipalities have adopted new cannabis regulations. Nashville, Tenn., stopped prosecuting minor marijuana possession cases.  Portland, Ore., redirected all cannabis tax revenue away from the Portland Police Bureau.  Colorado’s Legislature passed a long-stalled proposal to address social equity and scrap old marijuana convictions, and Sonoma County, Calif., and New York state expanded their programs to erase cannabis criminal records....

Cannabis was legalized in Colorado almost eight years ago, but without a social equity program or the expungement of cannabis-related convictions.  Democratic state Rep. Jonathan Singer first pushed for expungement of cannabis records in 2014 and has pressed for marijuana possession charges to be wiped ever since.

But Singer said it was the protests around racial justice that finally got the proposal to the governor’s desk with strong bipartisan support — the social equity and expungements bill only garnered one “no” vote in the state Senate.  Democratic Gov. Jared Polis signed the bill into law at the end of June.

But as the article continues, it becomes less clear if anything really big is changing with marijuana reform as racial justice gets more attention:

[M]any of the states and cities that did change their marijuana policies were already moving in that direction. Nashville spent the last six years reducing the number of marijuana arrests, before the protests motivated District Attorney General Glenn Funk to stop prosecuting possession entirely.  Portland was already reassessing where cannabis tax revenue was directed, and the “defund the police” movement provided the catalyst for the city council to change the budget. In many of these cases, conversations around racial justice simply pushed legislation over the finish line in a jurisdiction that was already working on it.

And it’s clear that the racial justice conversation has not convinced the most vocal skeptics.  In Pennsylvania, for example, the state lodge of the Fraternal Order of Police is not changing its anti-legalization position.  Even some Democratic lawmakers in the state remain unconvinced about the current legalization effort, despite the demonstrations....

On Capitol Hill, it isn’t clear that racial justice protests have affected the motivation to pass marijuana policy reform.  While many of the issue’s most prominent advocates have been silent on federal legalization in the last two months, House leaders are now considering a vote on the MORE Act — which would remove cannabis from the Controlled Substances Act and expunge some records — sometime this fall....

In June, Congress tried to reach an agreement on police reform.  The House passed a sweeping policing bill largely along partisan lines.  Senate Republicans introduced a more modest package of reforms, which Senate Democrats ultimately killed because it did not go far enough.  Missing from either chamber’s proposal was anything that would overhaul federal marijuana policies. Even many of the most ardent champions of marijuana legalization as criminal justice reform were silent.

A few of may prior related posts:

August 9, 2020 in Criminal justice developments and reforms, History of Marijuana Laws in the United States, Race, Gender and Class Issues, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

"Better Branding on the Big Screen: How the Marijuana Industry Could Use Product Placement to Increase Public Support"

The title of this post is the title of this new paper recently posted to SSRN and authored by Tyler Riemenschneider, a recent graduate 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:

Reefer Madness is often credited for spreading anti-marijuana sentiment across the country.  Could modern movies depicting marijuana have the opposite effect?  This paper asks whether film can influence our opinions on marijuana use and legalization.  If movies do have a persuasive effect, the marijuana industry may seek to utilize film as a way to build public support.  One method for doing so would be product placement.

This paper discusses potential strategies the industry could use to implement product placement, as well as the legal and industry barriers that could prevent or minimize the industry’s ability to engage in the practice.  However, a measured approach to product placement could be a viable persuasive tool for the industry.

August 9, 2020 in Film, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)

Sunday, August 2, 2020

Is the COVID pandemic really "eating away at the illicit marijuana market"?

The question in the title of this post is prompted by the headline of this new Politico piece which is fully headlined "The pandemic is eating away at the illicit marijuana market: Legal sales have boomed since March, though it’s hard to say how many customers previously bought from illegal dealers."  Here are excerpts:

The legal marijuana industry has spent years battling illegal sellers who have eaten away at its market share and undercut its prices. But the coronavirus has proven to be a boon for legal pot shops, as customers fear the risks associated with inhaling questionable products and are nervous about letting sellers into their homes.

Legal operations have moved quickly to take advantage of the situation, seizing on relaxed rules to expand shopping options in states across the country, including curbside pickups and deliveries. Also, pandemic-frazzled Americans are simply getting stoned more often.

“It's understandable that people may be more hesitant to get their products from sources that are unregulated,” said Kris Krane, CEO of 4Front Ventures, which operates dispensaries in multiple states. “They may not want to go to their dealer’s house, or they may not want to have their dealer come into their house, at a time when people are social distancing and not supposed to be interacting with people that they don't know.”

In addition, cities that never allowed pot shops in their towns, even in states where marijuana is legal, are rethinking the local bans in search of fresh tax revenue. And more people than ever are registered as medical marijuana patients: Florida added nearly 5,000 patients a week in June, and more than 50,000 since March.

The data is murky — credible sales figures on illegal marijuana transactions are inherently difficult to come by — and it’s likely that those sales are also booming as anxious Americans smoke more weed while hunkered down. But many close industry watchers believe the current circumstances are pushing more Americans into state-legal markets. Revenues are expected to hit $17 billion this year, according to New Frontier Data — a 25 percent spike over 2019.

Mitch Baruchowitz, managing partner at cannabis investment firm Merida Capital Partners, argued in a paper in May that the pandemic is “cannibalizing” the illegal market. He hasn’t seen anything in the ensuing months to change that assessment. “The vast majority of the current growth in the cannabis space is being driven by consumers transitioning from the black market to the legal market,” Baruchowitz wrote.

The boom in sales is driven in large part by new legal markets, particularly the start of recreational sales in Illinois and Michigan. But even some states with relatively mature markets have seen big spikes in sales. In Oregon, for example, monthly revenues jumped from just below $70 million during the first two months of this year to more than $100 million in May and June....

Even with this year’s rapid growth, however, the legal marijuana market is still dwarfed by illegal sales, which New Frontier estimates at $63 billion for this year. Nowhere is the underground weed market a bigger problem than in California, where it’s estimated that 80 percent of marijuana sales are still from illegal sources — and most industry officials are deeply skeptical that the pandemic will significantly alter that reality in the short term....

Michigan faces a similar problem in quashing illegal sales: The vast majority of cities in the state — including Detroit — still don’t allow recreational pot shops to operate. In addition, marijuana cultivation is still ramping up in the state, since full legalization only took effect in December. “Demand, especially in the adult-use market, is still higher than the supply as the production in the industry continues to grow,” said Andrew Brisbo, executive director of Michigan’s Marijuana Regulatory Agency. “That keeps prices still higher than I think they will be in the long term.”

Industry officials are divided on whether the pandemic is eroding the illicit marijuana market, but there’s little doubt that the current economic troubles will push more states to consider legalization. That’s in large part because states' desperation for cash is only going to grow. Even if marijuana taxes would only make a difference at the margins, it undoubtedly will prove enticing to lawmakers.

Some New York lawmakers are pushing this idea, after legalization efforts failed in each of the last two years. They’ll likely face even greater pressure to enact recreational sales if New Jersey voters pass a recreational legalization referendum in November, as expected. Even in deep red states, the idea is likely to get a good look. A Republican lawmaker in Oklahoma has argued the state should look at allowing recreational sales, suggesting it could raise $100 million per year.

August 2, 2020 in Business laws and regulatory issues, History of Marijuana Laws in the United States, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate | Permalink | Comments (2)

Wednesday, July 29, 2020

New poll suggest Jersey a near lock to legalize marijuana

Download (2)This article from Marijuana Moment, headlined, "Nearly Seven-In-Ten New Jersey Voters Support Marijuana Legalization Ballot Measure, Poll Finds," reports on a notable new poll suggesting that many members of the the Garden State are eager to vote to legalize marijuana.  Here are the details:

A supermajority of New Jersey voters say in a new poll that they support a marijuana legalization referendum that will appear on the November ballot.  The survey, which was conducted by DKC Analytics and released on Tuesday, shows that 68 percent of respondents back the policy change.  That’s a seven percentage point increase compared to a separate poll on the issue released in April.

The survey also shows that voters support allowing social consumption lounges for cannabis, 50 percent to 38 percent.  Most respondents (56 percent) agreed that online ordering and home delivery for marijuana products would be a “good way to provide adults with access.”

Supporters of the legalization initiative were asked to select the reasons they hold that position.  Seventy percent said they feel a regulated system will curb the illicit market, 61 percent said it would generate tax revenue, 61 percent said regulations would ensure safer products, 60 percent said ending criminalization would save taxpayer dollars that would otherwise go to law enforcement, 57 percent said legalization would stimulate the economy and create jobs and 43 percent said cannabis is safer than alcohol....

Another supermajority (68 percent) said people with prior low-level cannabis convictions should be able to have their records expunged.  The same percentage of respondents said that marijuana tax revenue should go toward drug education and awareness programs.

“The polling results confirmed our belief that there is overwhelming support for the creation of a regulated, adult-use cannabis marketplace in New Jersey,” John Fanburg, an attorney at Brach Eichler, which commissioned the survey, said in a press release.  “Respondents supported it because it will create tremendous opportunity. It will create vitally needed new businesses, the state will receive significant tax revenues and illegal sales will be dramatically reduced, if not eliminated.  Voters see this as a win for everyone.”

As has historically been the case, people who identified as Democrats are more likely to support legalization (78 percent), but majorities of Republicans (57 percent) and independents (63 percent) also favor the policy change.

Another interesting finding was that most people who participated in the survey (57 percent) said they do not personally consume cannabis.  The poll involved phone interviews with 500 New Jersey likely voters from July 7-12.  ”The strong level of support for correcting this decades-old inequality, especially in the context of recent protests of inherent bias in law enforcement, should be well noted by our legislators who will be tasked with correcting this unfortunate consequence of the failed policy of prohibition,” Charles Gormally of Brach Eichler said.

July 29, 2020 in Initiative reforms in states, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (0)

Thursday, July 23, 2020

"Marijuana Legalization and Youth Marijuana, Alcohol, and Cigarette Use and Norms"

DownloadThe title of this post is the title of this new research from multiple authors published this month in the American Journal of Preventive Medicine. Here is its abstract:

Introduction

Rates of adolescent substance use have decreased in recent years.  Knowing whether nonmedical marijuana legalization for adults is linked to increases or slows desirable decreases in marijuana and other drug use or pro-marijuana attitudes among teens is of critical interest to inform policy and promote public health.  This study tests whether nonmedical marijuana legalization predicts a higher likelihood of teen marijuana, alcohol, or cigarette use or lower perceived harm from marijuana use in a longitudinal sample of youth aged 10–20 years.

Methods

Data were drawn from the Seattle Social Development Project–The Intergenerational Project, an accelerated longitudinal study of youth followed both before (2002–2011) and after nonmedical marijuana legalization (2015–2018).  Analyses included 281 youth surveyed up to 10 times and living in a state with nonmedical marijuana legalization between 2015 and 2018 (51% female; 33% white, 17% African American, 10% Asian/Pacific Islander, and 40% mixed race or other).

Results

Multilevel modeling in 2019 showed that nonmedical marijuana legalization predicted a higher likelihood of self-reported past-year marijuana (AOR=6.85, p=0.001) and alcohol use (AOR 3.38, p=0.034) among youth when controlling birth cohort, sex, race, and parent education.  Nonmedical marijuana legalization was not significantly related to past-year cigarette use (AOR=2.43, p=0.279) or low perceived harm from marijuana use (AOR=1.50, p=0.236) across youth aged 10–20 years.

Conclusions

It is important to consider recent broad declines in youth substance use when evaluating the impact of nonmedical marijuana legalization.  States that legalize nonmedical marijuana for adults should increase resources for the prevention of underage marijuana and alcohol use.

July 23, 2020 in Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research | Permalink | Comments (0)

Saturday, July 11, 2020

"Why Won’t Democrats Just Come Out for Legalizing Marijuana?"

Joe-biden-marijuanaThe question in the title of this post is the title of this new commentary at The Nation authored by John Nichols. The piece is in the same vein as the one noted here asking why Joe Biden won't embrace legalization.  Here are excerpts:

Some political issues are hard to wrestle with.  Some are easy.  Legalizing marijuana is easy.

A Pew Research Center survey found last fall that Americans back legalization by a 67-32 margin.  The numbers spike among Democrats, 78 percent of whom favor ending this form of prohibition.  But there’s also majority support — 55 percent — among Republicans.  Among voters under age 30, support for legalization is sky-high.

Enthusiasm for legalization extends far beyond the large number of Americans who are recreational users of marijuana to include millions of people who recognize, as does the American Civil Liberties Union, that “Marijuana Legalization Is a Racial Justice Issue.”...

When the [Democratic] party’s task force on criminal justice reform released its policy recommendations this week, legalization was off the agenda.  That was just one example of the caution that permeates the 110-page document submitted to the Democratic National Committee’s platform drafters by the six task forces that were set up in May by presumptive Democratic presidential nominee Joe Biden and his chief rival for the party’s nomination, Vermont Senator Bernie Sanders....

There’s criticism of mass incarceration and a good proposal to restrict federal funding for states that maintain cash bail systems. But there’s no plan to abolish the scandal-plagued Immigration and Customs Enforcement agency or to defund the police with an eye toward establishing new law enforcement models that strive for public safety and justice....

Color of Change senior director of criminal justice campaigns Scott Roberts told Politico that Biden “still seems to embrace kind of a law-and-order lite.” That was certainly the case when it came to upending marijuana laws.

The commission rejected legalization — the popular position backed by Sanders. Instead, it stuck to the more cautious approach that’s been maintained by Biden, a supporter of the drug war during his own Senate years who has softened some but not all of his old positions. Instead of legalization, the commission proposed to “decriminalize marijuana use,” reschedule cannabis on the Controlled Substances Act (CSA), and leave it to the states to decide about legalization.

The National Organization for the Reform of Marijuana Laws concluded that the proposal “is out of step with public opinion [and] would do little to mitigate the failed policy of federal prohibition.”

“It is impractical at best and disingenuous at worst for the Biden campaign to move ahead with these policy proposals. Rescheduling of marijuana under the Controlled Substances Act would continue to make the federal government the primary dictators of cannabis policy, and would do little if anything to address its criminal status under federal law,” explained Erik Altieri, the executive director of the National Organization for the Reform of Marijuana Law.  “Rescheduling marijuana is intellectually dishonest. Just as cannabis does not meet the strict criteria of a Schedule I controlled substance, it similarly does not meet the specific criteria that define substances categorized in schedules II through V.”

Why didn’t the commission simply endorse the Marijuana Justice Act, which has been introduced by New Jersey Democrat Cory Booker in the Senate and House Democrats Barbara Lee and Ro Khanna?  Sanders supports the measure, as do two of Biden’s vice presidential prospects, Warren and Senator Kamala Harris.  The answer is that Biden has a long history of opposing legalization — going so far in his resistance to the idea that, last year, Representative Alexandria Ocasio-Cortez suggested that the former vice president was employing “Reagan-era talking points.”

Prior related post:

Is marijuana reform really a "Superweapon Biden Refuses to Use"?

 

July 11, 2020 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, Polling data and results, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)

Tuesday, July 7, 2020

"Understanding Social Equity"

The title of this post is the title of this significant new digital book put together by Chris Nani now available via SSRN.  I am proud to be able to say Chris is a former student who has been doing amazing work in the cannabis space since his time in law school (including the development of a great tool for judging social equity programs available as "Social Equity Assessment Tool for the Cannabis Industry").   In his new book, Chris has assembled short and effective essays from more than a dozen experts; here is the book's SSRN abstract: 

Understanding Social Equity is a compilation of viewpoints from various authors with diverse backgrounds.  From attorneys, policy analysts, and journalists to advocates, business owners, and social equity applicants, my goal was to provide as many perspectives as possible – some of which may conflict with other authors to provide regulators a wide range of respected opinions about social equity programs.  Together, we believe this compilation can be used as a guide for drafters and regulators when determining minute details about how they would like to create or improve their social equity program.

The goal of this book can further be defined into four objectives:

 ●  Educate regulators on what social equity programs are and their importance.

 ●  Why certain criteria should be used to define social equity applicant eligibility.

 ●  An analysis of prior social equity programs.

 ●  Key factors for social equity programs.

I was quite honored that Chris asked me to author an essay for this book. My contribution is titled simply "Tracking Social Equity," and here is how it begins:

Chris Nani, in the first sentence of his preface to this volume, defines social equity programs as those that “seek to remediate and help individuals, families, and communities harmed by the War on Drugs.”  Behind this crisp definition of social equity programs stands a series of complicated questions about just who should be the focal point for remediation and help and how these programs should be oriented and assessed.  By starting to unpack these questions, we can begin to appreciate just why these programs are so important in principle and so challenging in practice.

July 7, 2020 in Business laws and regulatory issues, Criminal justice developments and reforms, History of Marijuana Laws in the United States, Race, Gender and Class Issues, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)

Monday, July 6, 2020

Is marijuana reform really a "Superweapon Biden Refuses to Use"?

EJ3gu5eWsAEdEfSThe question in the title of this post is drawn from the headline of this great new Atlantic piece by Edward-Isaac Dovere fully titled "The Marijuana Superweapon Biden Refuses to Use: Legalizing marijuana is extremely popular. So why won’t Joe Biden embrace the idea?".  Here are extended excerpts from an interesting piece worth reading in full:

Democratic political consultants dream of issues like marijuana legalization. Democrats are overwhelmingly in favor of it, polls show.  So are independents. A majority of Republicans favor it now too. It motivates progressives, young people, and Black Americans to vote. Put it on the ballot, and it’s proved a sure way to boost turnout for supportive politicians. It’s popular in key presidential-election states, including Michigan, Pennsylvania, Colorado, Florida, Arizona, and Virginia. There’s no clear political downside — although marijuana legalization motivates its supporters, it doesn’t motivate its opponents. For the Democratic presidential nominee, the upsides of supporting it would include energizing a very committed group of single-issue voters and making a major move toward criminal-justice reform and the Bernie Sanders agenda.

Joe Biden won’t inhale.

Democrats eager for Biden to support legalization have theories about why he won’t.  His aides insist they’re all wrong.  It’s not, they say, because he’s from a generation scared by Reefer Madness. It’s not, they say, because he spent a career in Washington pushing for mandatory minimum sentencing and other changes to drug laws.  It’s definitely not, according to people who have discussed the policy with him, because he’s a teetotaler whose father battled alcoholism and whose son has fought addiction, and who’s had gateway-drug anxieties drilled into him.  With legalization seeming such an obvious political win, all that’s stopping Biden, current and former aides say, is public health.  He’s read the studies, or at least, summaries of the studies (campaign aides pointed me to this one).  He wants to see more.  He’s looking for something definitive to assure him that legalizing won’t lead to serious mental or physical problems, in teens or adults....

If Biden really has his eyes on public health, he should think about how many Black people end up in jail for marijuana sale and possession, argues Jackson, Mississippi, Mayor Chokwe Lumumba — a young Black progressive who oversaw local decriminalization in his city in 2018....  Alternatively, John Fetterman, the lieutenant governor of Pennsylvania, says Biden should think about how legalization could raise tax revenue in the post-pandemic economy of state budget deficits....

Amid the criticism that Biden hasn’t taken a definitive stance on legalization, it’s easy to lose track of how far ahead he is of any other major-party presidential nominee in history in terms of changing marijuana policy.  He’d decriminalize use, which would mean fines instead of jail time, and move to expunge records for using.  He’d remove federal enforcement in states that have legalized the drug.  That’s further, by far, than Donald Trump, or Barack Obama, has gone.  Biden would move marijuana off as a Schedule 1 narcotic, the same category as heroin, but would not take it off the illegal-drugs schedule entirely, so that federal law would treat it the way it does alcohol or nicotine....

“As science ends up with more conclusive evidence regarding the impact of marijuana, I think he would look at that data. But he’s being asked to make a decision right now. This is where the science guides him,” Stef Feldman, Biden’s policy director, explained to me....  There isn’t some conclusive study about health effects that Biden is ignoring, but one is also not likely to emerge anytime soon.  And though they insist this is all about health, other ripples from legalization are on the minds of institutionalists like Biden and his close advisers: trade deals that require both sides to keep marijuana illegal would have to be rewritten, half a century of American pressure on other countries about their drug policies would be reversed, and hard-line police unions would have to be convinced that he wasn’t just giving in to stoners. 

Realistically, marijuana isn’t a priority right now for the campaign.  Legalization is at once too small an issue for Biden’s tiny team to focus on and too large an issue to take a stand on without fuller vetting.  And it comes with a frustration among people close to Biden, who point out that liberals talk about trusting science on everything from climate change to wearing masks — and, notably, wanted vaping restricted because the health effects were unclear — but are willing to let that standard slide here because they want marijuana to be legal.

Biden’s compromise: going right to the edge of legalization, while appointing a criminal-justice task force for his campaign whose members have each supported at least some approach to legalization.  But that sort of signaling doesn’t get people to the polls.  “Being cute is fine. Being bold is motivating,” Ben Wessel, the director of NextGen America, a group focused on boosting political involvement among younger voters, told me.

“If Biden said he wants to legalize marijuana tomorrow, it would help him get reluctant young voters off the fence and come home to vote for Biden — especially Bernie [Sanders] supporters, especially young people of color who have been screwed by a criminal-justice system that treats them unfairly on marijuana issues,” Wessel told me.  Publicly supporting marijuana legalization would be an easy, attention-grabbing move, and might help many Sanders diehards get past the fact that he’s not where they want him to be on the rest of their candidate’s democratic-socialist agenda. 

In 2018, top Democrats credited a legalization ballot initiative in Michigan with boosting turnout and producing the biggest blue wave in the country — winning races for governor, Senate, attorney general, and secretary of state, along with flipping two congressional seats and multiple state-legislature seats.  A ballot initiative is expected for the fall in Arizona, New Jersey, South Dakota, and possibly Montana.  Anyone who believes — hopefully, or out of cynical political calculation — that Biden will announce some big change in his thinking, aides told me, will be disappointed. 

I really like lots of aspects of this commentary, and I generally believe support for marijuana reform is a sound and significant political strategy these days.  But, as this piece highlights, when Biden's opponent is Donald Trump, it will still be easy for Biden to claim to be the most reform-minded candidate.  And while support for full legalization might attract younger voters, it also will attract hard questions about whether Biden would support legalizing other drugs.  By saying he will follow the research and the science, Biden can appear both wise and flexible on an issue that can still generate more heat than light.

Moreover, I think the political calculations can be a bit more nuanced here if one thinks about swing states and swing voters.  A number of potential swing states, ranging from Georgia and North Carolina to Iowa and Ohio and Wisconsin (and Texas?), are not states with a track record of significant voter support for full marijuana legalization.  Perhaps even more importantly, key voting blocks like suburban women and older white men are the populations that have generally been most resistant to marijuana reforms.   Though I still think support for major marijuana reforms would be a political plus for Biden, I do not think it is obviously a "superweapon" being left on the sidelines.

July 6, 2020 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Political perspective on reforms, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)

Tuesday, June 30, 2020

"Marijuana and Its Movement: Issues with Transporting a Legally Ambiguous Substance"

The title of this post is the title of this new paper recently posted to SSRN and authored by Joshua Gmerek, a recent graduate 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:

Regardless of whether you are a commercial truck driver performing a job, a patient driving to get her medicine, or a citizen who just recreationally enjoys marijuana, the rules surrounding the transportation of marijuana are important.  California became the first state to legalize the medical use of marijuana in 1996, and the prevalence of medical and recreational marijuana legalization has only expanded since then.  At this point, some product or chemical compound from the cannabis plant is virtually everywhere in the United States, yet the transportation of these products has not been comprehensively debated by the public, let alone legislated. 

This article is focused on exploring the unique legal landscape surrounding the transportation of marijuana, hemp, and cannabidiol (CBD) from both a business and individual perspective.  By showcasing examples of how businesses and individuals have been impacted by the unclarity in this area, the goal is to convey that nothing about transporting these products is risk-free and that there is unnecessary conflict between state and federal law.

June 30, 2020 in Business laws and regulatory issues, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)

Monday, June 29, 2020

"California cities begin embracing cannabis in desperate search for cash"

The title of this post is the title of this recent notable Politico article. Here are excerpts:

California local governments scrambling to find tax revenues during the coronavirus pandemic are turning toward an industry they had considered taboo until now: cannabis.

It has been almost four years since voters legalized recreational marijuana in California, and nearly 70 percent of cities and counties have yet to embrace pot businesses because they see regulatory problems or have concerns about public safety and negative publicity.

But some, facing insurmountable budget gaps as unemployment rises to its worst level since the Great Depression, would now rather open their doors to cannabis than lay off more workers or cut services.  So far, a handful of cities have begun developing cannabis tax measures for the November ballot since voter approval is required to add local taxes.  It's a trend many in the industry expect to continue over the next month absent approval of a federal bailout for state and local governments....

San Bruno, a Bay Area city that two years ago banned marijuana businesses, is among the governments with a change of heart.  Last week, city council members voted unanimously to fund a tax measure and public education campaign, while voicing support for the idea of exploring an ordinance that would allow a dispensary or delivery service to open sometime next year.

According to projections from city officials, an operational cannabis shop could reduce San Bruno’s projected $8.2 million deficit in the upcoming fiscal year by around $300,000. “It's not gonna solve our problems, but it's going to keep $300,000 that we desperately need to hire whomever it is to make our city better,” Councilmember Marty Medina said at the meeting.

The city of Montclair in San Bernardino County is facing a similar budget crunch as sales tax revenue has cratered following the temporary closure of its mall. There, city officials are considering proposals to repeal a marijuana ban and create regulations for commercial activity.  The plan could raise up to $2 million annually, according to City Manager Edward Starr.

While both San Bruno and Montclair are left-leaning cities where a majority of residents voted to approve the Prop. 64 legalization initiative in 2016, Republican-led jurisdictions where voters rejected the statewide measure are also starting to consider cannabis — to the surprise of industry observers.  Last month, councilmembers in Yucaipa asked city staff to begin looking into alternative revenue streams, including marijuana businesses, amid a 15 percent decline in sales tax revenue and increasing public safety costs. Republicans hold a 20-point registration advantage over Democrats in the San Bernardino County jurisdiction, where a majority voted against Prop. 64....

Calls for jurisdictions to dive into the legal market have even come from some of the highest levels of state leadership, with Treasurer Fiona Ma calling the tax revenues a potential “game changer” during a virtual round table last month....

Among the other jurisdictions that have already begun developing cannabis tax measures or have shown interest in doing so are Sonoma, Signal Hill, Wildomar, Lemon Grove and Yountville.  As in Yucaipa, one of the prevailing themes in council meetings elsewhere has been that their residents are sending tax dollars to neighboring jurisdictions by purchasing marijuana products from other cities with licensed stores or from the state’s robust illicit market.

Industry research firms BDS Analytics and Arcview Market Research estimate that unlicensed operations brought in $8.7 billion in untaxed revenue in 2019, compared to the legal market's $3.1 billion.

According to Jackie McGowan, founder of Green Street Consulting, local leaders are also looking at nearby jurisdictions that have developed their cannabis markets and don’t want to be left behind.  Among those that have already allowed marijuana businesses, Monterey County is counting on $10.2 million in projected cannabis tax revenues to cover general fund shortfalls and avoid layoffs in the upcoming fiscal year and Santa Barbara County leaders believe $10.6 million in marijuana revenue will help offset coronavirus losses.

June 29, 2020 in Business laws and regulatory issues, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms, Taxation information and issues , Who decides | Permalink | Comments (1)

Tuesday, June 23, 2020

Notable new research and commentary on marijuana reforms and traffic fatalities

Download (2)The JAMA Internal Medicine journal has this week published online notable new original research and commentary on roadway fatalities in some states that have legalized marijuana use by all adults (called RCL in the works).  Here is the main piece and its main results and conclusions from its abstract:

"Association of Recreational Cannabis Laws in Colorado and Washington State With Changes in Traffic Fatalities, 2005-2017":

Results

Implementation of RCLs was associated with increases in traffic fatalities in Colorado but not in Washington State.  The difference between Colorado and its synthetic control in the post-RCL period was 1.46 deaths per 1 billion vehicle miles traveled (VMT) per year (an estimated equivalent of 75 excess fatalities per year; probability = 0.047).  The difference between Washington State and its synthetic control was 0.08 deaths per 1 billion VMT per year (probability = 0.674).  Results were robust in most sensitivity analyses.  The difference between Colorado and synthetic Colorado was 1.84 fatalities per 1 billion VMT per year (94 excess deaths per year; probability = 0.055) after excluding neighboring states and 2.16 fatalities per 1 billion VMT per year (111 excess deaths per year; probability = 0.063) after excluding states without MCLs.  The effect was smaller when using the enactment date (24 excess deaths per year; probability = 0.116).

Conclusions and Relevance

This study found evidence of an increase in traffic fatalities after the implementation of RCLs in Colorado but not in Washington State.  Differences in how RCLs were implemented (eg, density of recreational cannabis stores), out-of-state cannabis tourism, and local factors may explain the different results.  These findings highlight the importance of RCLs as a factor that may increase traffic fatalities and call for the identification of policies and enforcement strategies that can help prevent unintended consequences of cannabis legalization.

And here are two follow-up pieces published with this main piece:

Invited Commentary: "Reducing Impaired Driving Fatalities: Data Need to Drive Testing, Enforcement, and Policy"

Research Letter: "Change in Traffic Fatality Rates in the First 4 States to Legalize Recreational Marijuana"

June 23, 2020 in Criminal justice developments and reforms, Medical community perspectives, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research | Permalink | Comments (1)

Tuesday, June 16, 2020

"Struggling Through the Pandemic: Cannabis Social Equity During Covid-19"

Thumbnail_COVID-19_Social Equity During COVID-19_for-socialThe title of this post is the title of this new report that the team at Ohio State's Drug Enforcement & Policy Center has just gotten online via SSRN.  I was pleased to be play a part in this work, and here is the report's abstract:

In March 2020, in response to the COVID-19 national emergency, states across the United States began issuing shelter-in-place orders curtailing operations of individual businesses based on “essential” and “non-essential” classification.  Virtually all states with legalized medical cannabis, and the majority of adult-use states, allowed cannabis establishments to remain open albeit often with significant restrictions on their operations.  Yet, the cannabis industry, and small, minority-owned or social equity designated businesses in particular, are not insulated from the broader economic shockwaves spreading through the country. 

In April 2020, the Drug Enforcement and Policy Center conducted a survey asking patients/consumers and cannabis industry professionals about the challenges they were experiencing and government responses.  Hoping to fill a gap in early discussions of the impact of the COVID-19 crisis, we were especially interested in the impact on cannabis industry participants designated as social equity businesses.  The results indicate that the COVID-19 pandemic has both introduced tremendous new challenges for the cannabis industry and exacerbated long-standing difficulties for businesses in this arena.  If small, minority-owned and social equity businesses are to survive, they need to be treated by the system like any other regular small business venture.  While regulations and safeguards are necessary, these businesses need to be able to operate as a true business, rather than a semi-legal venture with no access to loans, banking, insurance, tax relief, and flexible deliverable modes.

June 16, 2020 in Business laws and regulatory issues, Medical Marijuana Commentary and Debate, Race, Gender and Class Issues, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)

Tuesday, June 9, 2020

"A Road Map to Recreational Marijuana Taxation"

TF_FF713_fig_7The title of this post is the title of this great new 39-page report from the Tax Foundation authored by Ulrik Boesen.  Here are the "Key Points" that are set forth at the start of the document:

• Legal recreational marijuana sales are ongoing in nine states, covering 27 percent of the U.S. population.  In 2018, 10.5 percent of adult Americans had used marijuana products in the last 30 days.

• States have designed different excise tax systems for recreational marijuana.  While most tax based on price, states also tax marijuana based on weight or THC content.

• An excise tax on recreational marijuana should target the externality and raise sufficient revenue to fund marijuana-related spending while simultaneously outcompeting illicit operators.  Excise taxes should not be implemented in an effort to raise general fund revenue.

• Changes to federal law would have implications for the tax revenue in states with legalized marijuana.  If businesses had better access to banking, federal tax deductions, or interstate trading, prices would most likely fall.

• High taxes may limit adoption by minors and non-users but could hurt the competitiveness of the legal market.  Low taxes may allow easy conversion from the illicit market but could increase consumption among non-users and minors.  Taxing by price may not be stable, taxing by weight could encourage use of high potency products, and taxing by potency could complicate tax collection and add significant costs to both tax collectors and industry.

• A potency- and weight-based tax defined by THC levels may be the best short-term solution for lawmakers assuming that THC is an appropriate proxy for the externalities associated with consuming marijuana

June 9, 2020 in Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms, Taxation information and issues | Permalink | Comments (0)

Wednesday, May 20, 2020

Lots of notable public health analyses of marijuana reforms in June 2020 issue of World Psychiatry

A number of notable new papers are now available online from the June 2020 issue of World Psychiatry. Here are titles and links to all the pieces (most of which are just a few pages and all of which seem worth checking out):

Assessing the public health impacts of legalizing recreational cannabis use: the US experience by Wayne Hall and Michael Lynskey

Considering the health and social welfare impacts of non‐medical cannabis legalization by Benedikt Fischer, Chris Bullen, Hinemoa Elder and Thiago M. Fidalgo

To legalize or not to legalize cannabis, that is the question! by Marta Di Forti

Mapping and mitigating the health risks of legalizing recreational cannabis use: a call for synergy between research and policy by Eva Hoch and Valentina Lorenzetti

Recreational cannabis legalization presents an opportunity to reduce the harms of the US medical cannabis industry by Keith Humphreys and Chelsea L. Shover

Cannabis and public health: a global experiment without control by Jürgen Rehm and Jakob Manthey

Being thoughtful about cannabis legalization and social equity by Beau Kilmer and Erin Kilmer Neel

The effects of recreational cannabis legalization might depend upon the policy model by Rosario Queirolo

Legalizing recreational cannabis use: a promising journey into the unknown by Jan C. van Ours

Assessing the public health effects of cannabis use: can legalization improve the evidence base? by Matthew Hickman, Lindsey A. Hines and Suzie H. Gage

May 20, 2020 in Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)

Monday, May 18, 2020

"Too young for Cannabis? Choice of minimum legal age for legalized non-medical Cannabis in Canada"

The title of this post is the title of this interesting new research by multiple authors now appearing in the journal BMC Public Health.  Here is its abstract:

Background

Choice of minimum legal age (MLA) for cannabis use is a critical and contentious issue in legalization of non-medical cannabis.  In Canada where non-medical cannabis was recently legalized in October 2018, the federal government recommended age 18, the medical community argued for 21 or even 25, while public consultations led most Canadian provinces to adopt age 19.  However, no research has compared later life outcomes of first using cannabis at these different ages to assess their merits as MLAs.

Methods

We used doubly robust regression techniques and data from nationally representative Canadian surveys to compare educational attainment, cigarette smoking, self-reported general and mental health associated with different ages of first cannabis use.

Results

We found different MLAs for different outcomes: 21 for educational attainment, 19 for cigarette smoking and mental health and 18 for general health.  Assuming equal weight for these individual outcomes, the ‘overall’ MLA for cannabis use was estimated to be 19 years.  Our results were robust to various robustness checks.

Conclusion

Our study indicated that there is merit in setting 19 years as MLA for non-medical cannabis.

May 18, 2020 in International Marijuana Laws and Policies, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research | Permalink | Comments (0)

Sunday, May 17, 2020

"The 'Free Market' for Marijuana: A Sober, Clear-Eyed Analysis of Marijuana Policy"

The title of this post is the title of this new paper recently posted to SSRN and authored by H. Justin Pace.  Here is its abstract:

Marijuana is prohibited at the federal level.  At the same time, states are not only decriminalizing marijuana but attempting to provide a regulatory apparatus for its sale. This has created a unique business environment.  In some ways there is a true “free market” for marijuana in states where it has been legalized — free, that is, of the legal and financial infrastructure available to fully licit businesses in America.

Contracts may not be enforceable because they lack a legal purpose.  Relief in bankruptcy court may not be available, either as a debtor or as a creditor.  Use of a legal entity to limit liability and take advantage of entity personhood may be impracticable.  Federal money laundering and other laws effectively restrict access to the banking system, forcing marijuana businesses to operate as purely cash businesses.  The USPTO refuses to register federal marks related to marijuana.  Marijuana businesses face challenges in obtaining competent legal counsel to guide them through a market free on one hand regulated on the other.

The odd legal posture has implications for considering marijuana policy through an economic lens.  Any analysis of marijuana externalities should consider any additional externalities created by that odd legal posture.  An analysis of policy options for mitigating negative externalities should also factor in the additional costs for marijuana businesses due to this “free market.”  The uncertainty, from a policy perspective, counsels in favor of applying heuristics when considering policy options: this paper offers three and applies each.

This is the first paper to use this situation to examine the value offered by our legal and financial infrastructure.  An inability to use it hurts marijuana businesses in very real ways.  But, at the same time, marijuana businesses are able to operate — to thrive even — nonetheless.  That infrastructure is both more and less valuable than is appreciated, and in surprising ways.  Ultimately, this paper advocates federal action that facilitates a continued incremental, state-by-state approach to marijuana reform.

May 17, 2020 in Business laws and regulatory issues, Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)

Thursday, May 14, 2020

"States with recreational marijuana laws view the legislation as a success"

Recreational-marijuana-success-failure-01-01-01-01The title of this post is the title of this new article from YouGov discussing its survey that provides an interesting window into the positive impression that marijuana reform has made in states that have legalized adult-use. Here are the details:

States that have legalized recreational marijuana don’t seem likely to regret it.

YouGov asked more than 32,000 Americans whether they believe recreational marijuana legislation has been more of a success or failure in the states that have legalized it. In many states where recreational cannabis is legal, a plurality of citizens believes these laws have been more of a success than a failure overall.

That is a particularly strong belief in Colorado, where citizens were among the first-in-the-nation to vote in favor of recreational weed in 2012. Today, about a quarter (26%) of Coloradans say the state-level recreational cannabis laws have been a “success only” and another 45 percent say they have been “more of a success than a failure.” Fewer than one in five (17%) believe the laws have been “more of a failure.”...

While decriminalized marijuana and approvals for medical marijuana became popular in the 1970s and 1990s, recreational marijuana was not legalized anywhere in the United States until 2012. Now, recreational marijuana is legal in 11 states—Washington, Oregon, Nevada, California, Colorado, Michigan, Illinois, Massachusetts, Maine, Alaska, and Vermont—with more states considering the legislation this year.

About two-thirds of those in Oregon (69%) and Massachusetts (67%) believe that the laws have been more of a success. That remains the majority opinion among those who live in Washington (65%), Nevada (64%), California (59%), Illinois (59%), and Michigan (56%).

Michigan and Illinois are the only Midwestern states with legal recreational marijuana, and they are the most recent additions to the list. Michigan became the 10th state to legalize recreational marijuana after residents approved it during the 2018 Midterm elections. Illinois became the 11th after its state government approved recreational cannabis for adults over 21 during the 2019 legislative session. The state began selling recreational marijuana in January.

Maine is the only state surveyed where fewer than half (47%) view the laws as more of a success. About one in nine Mainers say the laws have been a “success only.” About one-third (37%) consider the laws more of a success than a failure. One in five (20%) believe the laws have generally been more of a failure, and one-third (33%) are uncertain.

The folks at YouGov did another interesting poll about marijuana back in April 2020, which is reported here under the headline "Is marijuana essential? Most Americans say yes"

May 14, 2020 in Polling data and results, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)