Wednesday, April 22, 2020
This will be another exciting week as students in my Marijuana Law, Policy & Reform seminar are finishing up their presentations on research topics of their choice. The fourth presentation slated for this week will focus on how marijuana reforms intersect with gun ownership. Here is the student's description of his topic and some background readings he has provided:
My presentation will focus on the interaction between legal marijuana and gun ownership. I will begin by analyzing federal firearms laws and their practical implementation by the Bureau of Alcohol, Tobacco, and Firearms (ATF). I then look through examples of the conflicts these laws present in states which have legalized marijuana, and how federal laws currently prohibit any individual from exercising both their right to consume marijuana in legal states and their right to own a firearm under the Second Amendment. For some background reading, here are some helpful links:
Paul Barach, Why Can’t Medical Cannabis Patients Own Guns?, PotGuide (Jan. 17, 2020).
Open Letter to All Federal Firearms Licensees, Bureau of Alcohol, Tobacco, Firearms and Explosives (Sept. 21, 2011).
Aimee Green, Medical Marijuana Cardholders Can’t Be Denied Concealed Gun License Solely Because they Use Pot, Oregon Supreme Court Rules, OregonLive (May 19, 2011).
Mike Lowe, Mixed Legality of Marijuana on State, Federal Levels Leaves Gun Owners in Limbo, WGN9 (Jan. 9, 2020).
April 22, 2020 in Assembled readings on specific topics, Criminal justice developments and reforms, Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)
Student presentation on "How Farm Bill's legalization of hemp-derived CBD products could impact federal marijuana reform"
As mentioned before, the semester is winding down and students in my Marijuana Law, Policy & Reform seminar, soldiering on via Zoom, are making presentations on research topics of their choice. The third presentation slated for this week will focus on the the Farm Bill and federal reforms. Here is part of the student's description of the issue and some background readings she has flagged:
My presentation and my paper focus on how the legalization of hemp-derived CBD products, through the Farm Bill, could have an impact on the federal legalization of marijuana. A few sources I used to help with this research are:
Jeff Smith, What marijuana companies can learn from federal legalization of hemp, Marijuana Business Daily (Feb. 27, 2020).
Jeremy Burke & Skye Gould, States where marijuana is legal, Business Insider (Jan. 1, 2020).
Kimberly Holland, CBD v. THC: What's the Difference?, Healthline (May 20, 2019).
U.S. Department of Agriculture, Farm Bill
John Hudak, The Farm Bill, hemp legalization and the status of CBD: An explainer, Brookings Institute (Dec. 14, 2018).
Students in my Marijuana Law, Policy & Reform seminar are continuing to complete their presentations on research topics of their choice, and the second presentation slated for this week will focus on marijuana tax issues. Here is the student's description of his topic and some some "light" reading selected to help set the stage for his presentation.
In my paper, I set out to find a tax scheme that gives greater weight to the public health concerns of legalization while balancing the desire for revenue and fairness. In doing so, I analyze the three primary tax bases that may be chosen by a legislature: (1) Price, (2) Weight, and (3) Potency, pausing a moment to describe just how complex the concept of marijuana "potency" really is. In doing so, I lay out the benefits and disadvantages of each tax base and use Illinois' tax scheme to illustrate these pros and cons. I also consider whether medical marijuana should be taxed on a separate scheme, exempted from tax, or treated the same as product intended for adult use. Finally, I make a case for a hybrid tax base: tax flower and bud by weight, and edibles and concentrates by potency (as measured by THC).
In making my case, I recognize that there is no perfect marijuana tax scheme. The science is too young, marijuana is too complex a substance (both scientifically and by dint of being both "fun" and medicine), and these factors serve to amplify the push-pull between social goals, revenue, simplicity, and fairness inherent in any tax. I have thus included in my proposal a five-year sunset provision that will force legislators to return to the table and incorporate new science (along with the previous five years of data what worked and did not work in the original law) and hopefully produce a better tax scheme.
BOTEC Analysis LLC, Cannabis Potency Tax Feasibility Study (Oct 2019)
BOTEC Analysis Corp., Testing for Psychoactive Agents (Aug 2013)
Tax Foundation, How High Are Recreational Marijuana Taxes in Your State? (Apr 2019)
Pat Oglesby, Laws to Tax Marijuana (How To Tax It) (June 2012)
Tuesday, April 21, 2020
Students in my Marijuana Law, Policy & Reform seminar are finishing up their presentations on research topics of their choice. The first presentation slated for this week will focus on certain arguments made against recreational marijuana reform. Here is the student's description of his topic and some background readings he has provided:
For my project, I examined some of the arguments that opponents of the legalization of recreational marijuana often stress. My research gave particular attention to the external "costs" of the legalization of recreational marijuana. The three arguments that I will be focusing on for class discussion are (1) the cost of car accidents both fatal and non-fatal, (2) the cost of employee productivity, and (3) the cost of high school dropout rate. I will examine these arguments, discuss some of their strengths and weaknesses, and finally talk about how they can be used in inform better policy in the marijuana space.
Here are some useful articles that I used when researching:
Thursday, April 16, 2020
With the semester winding down, numerous students in my Marijuana Law, Policy & Reform seminar are scheduled for presentations on research topics of their choice this week. The fourth presentation slated for this week will focus on the transportation of cannabis. Here is part of the student's description of the issue and some background readings he has flagged:
For all the discussion that has been had about the legalization of marijuana, we have not sufficiently discussed how these products should be moved around. The goal of my presentation is to explore this issue by looking at cases that have unfolded and the policies of institutional players. For some background, please see:
April 16, 2020 in Assembled readings on specific topics, Business laws and regulatory issues, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)
Wednesday, April 15, 2020
As students "take over" my Marijuana Law, Policy & Reform seminar through presentations on research topics of their choice, I continue to enjoy hearing about (and posting here about) their selected topics. The third presentation slated for this week will focus on marijuana stocks. Here is part of the student's description of the issue and some background readings he has flagged:
While the market for investors is nearly impossible to predict, as the Covid-19 pandemic is currently demonstrating, certain industries seem to be “recession proof” and are viewed as “safer” investments. One such industry is the “sin” industry. Stocks that fall under this category include tobacco, alcohol, weapons, gambling, sex, and most importantly, marijuana. While many of these industries have been publicly traded on major US stock exchanges for decades, the first marijuana stock was not traded until February 27, 2018. Thus, the industry is still in its infancy with many questions left unanswered. I will focus on three areas of law impacting marijuana stocks: 1) the Controlled Substance Act, 2) taxes, and 3) fraud. Further, the history of marijuana stocks in the US, the potential outlook for marijuana stocks in the future, and my opinion on which marijuana stock will be the most successful will be discussed.
Fabian Gorsler, A Marijuana Company is Listed on the U.S. Stock Exchange for the First Time, Highsnobiety (Feb. 27, 2018).
Casey W. Baker, Marijuana’s Continuing Illegality and Investors’ Securities Fraud Problem: The Doctrines of Unclean Hands and IN PARI Delicto, 12 J. Bus. Entrepreneurship & L. 93 (2019).
Erin Fuchs, The Legal Risk of Investing in Weed is ‘Remote’ and ‘Theoretical’, Yahoo Finance (Nov. 3, 2018).
April 15, 2020 in Assembled readings on specific topics, Business laws and regulatory issues, Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Recreational Marijuana Commentary and Debate, Taxation information and issues | Permalink | Comments (0)
Friday, March 27, 2020
The title of this post is the title of this notable new Politico piece. Here are excerpts:
Cannabis is turning out to be the one thing the coronavirus can’t destroy.
Marijuana sales are booming, with some states seeing 20 percent spikes in sales as anxious Americans prepare to be hunkered down in their homes potentially for months. Weed sellers are staffing up too, hiring laid-off workers from other industries to meet demand. And in the midst of a historic market meltdown, stock prices for cannabis companies have surged, in some cases doubling since the public health crisis began.
“We are hiring because we are having to shift our business a bit,” said Kim Rivers, CEO of Trulieve, which is valued at $1 billion. The company is staffing up its delivery fleet, retail workers, and people to handle increased inventory shipments. “Now is a great time [to apply], particularly if you’re in a business that has seen layoffs.”
Nearly all of the 33 states with legal medical or recreational markets have classified marijuana businesses as an essential service, allowing them to remain open even as vast swaths of the retail economy are shuttered. San Francisco and Denver initially announced plans to shut down dispensaries, but immediately backpedaled after a public furor.
Weed shops are essentially being treated the same as pharmacies, reflecting a dramatic shift in cultural perceptions about the drug over the last decade. “It is a recognition that it has taken on much greater significance around the country,” said Rep. Earl Blumenauer (D-Ore.), a longtime Capitol Hill champion for cannabis. “This is something that makes a huge difference to the lives of hundreds of thousands of people every day. I do think that this might be part of a turning point.“
Concerns about whether smoking pot is the smartest response to a pandemic that’s causing severe lung injuries in tens of thousands of Americans have been largely drowned out. "Public opinion has pushed lawmakers to think about cannabis — and particularly medical cannabis — in different ways than they used to," said John Hudak, a cannabis policy expert at the Brookings Institution, and author of Marijuana: A Short History. "A lot of state policymakers are trying to get this right and they obviously see the risk of shutting down a dispensary to be higher than the rewards of shutting down a dispensary."...
The burgeoning industry does face some stiff financial headwinds: The massive stimulus package moving through Congress this week to help beleaguered businesses shuts out cannabis companies from taking advantage of its benefits, reflecting the continued federal illegality of marijuana. Prior to the recent boom in sales, the industry had been in financial turmoil, with many companies laying off workers and scuttling acquisitions as they ran short on cash. “I'm frustrated Senate Republicans refused to allow us to include them in this legislation, but we aren't giving up," Sen. Patty Murray (D-Wash.) said Wednesday.
In addition, some medical experts question the wisdom of allowing uninhibited access to marijuana during a massive public health crisis. They worry that customers flocking to pot shops could spread the virus, that stoned customers will engage in risky behavior and that smoking pot will worsen the lung damage for people who do become infected. “If you keep the pot stores open, you're just adding fuel to the fire,” said Karen Randall, an emergency room doctor in Colorado. “You're having a whole bunch of people who are trashing their lungs.”...
The federal government said Thursday that a staggering 3.3 million people applied for unemployment benefits last week. While the cannabis industry can’t do much to remedy that bloodletting, some companies are looking to hire people who have recently lost their jobs. Harborside — which operates three shops in the Bay Area — found itself suddenly understaffed as delivery requests increased by 45 percent and phone calls exploded from around 100 to 8,000 per day.... Harborside has hired 10 employees in the last few weeks — some of whom were directly laid off as a result of the coronavirus — and plans to hire at least six more. The largest increase was in their delivery fleet, going from four drivers to 10.
And they’re not alone. “Two and a half weeks ago, our sales just exploded,” said Zachary Pitts, CEO of California cannabis delivery service Ganja Goddess. “People are leaning on delivery more now … even though storefronts are still open in California.” Pitts estimated that he’s increased his workforce by about 15 percent in recent weeks, and is working on hiring more. The company has suspended normal vetting processes and is instead relying on trusted referrals....
As states move to declare marijuana an essential business, the gulf between state and federal policy has never been wider. Congress is poised to enact a $2 trillion stimulus package this week, but the cannabis industry will not see a cent. “In the same way that cocaine dealers in the United States who are suffering under Covid-19 are not going to be eligible for relief under the stimulus bill, cannabis companies won't either,” said Hudak of the Brookings Institution. “Illegal businesses do not access legal funding.”
The cannabis industry generated $15 billion in sales last year and employs 340,000 people. Employers and workers pay federal taxes, and are required to comply with other coronavirus-related measures such as paid sick leave coverage. But for cannabis companies to access assistance made available through the stimulus package, Congress or the administration would need to dictate their inclusion. A spokesperson for Sen. Jeff Merkley (D-Ore.) said he wants to include such a provision in a future coronavirus aid package. Similarly, Murray said she is “exploring what can be done in the upcoming appropriations process to help them through this crisis and beyond."
March 27, 2020 in Business laws and regulatory issues, Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Political perspective on reforms, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)
Thursday, March 26, 2020
In a post-COVID economy, will job creation and tax revenue from marijuana reform become irresistible?
Even before we have a real handle on the public health tragedy created by the coronavirus in the US, the economic fallout is already profound as represented by just one headline this morning: "A record 3.3 million Americans filed for unemployment benefits as the coronavirus slams economy." The Chair of the Federal Reserve is now saying "We may well be in a recession,” and the Treasury Secretary has been talking about a possible 20% unemployment rate. Though I do not know how extreme will be our economic struggle in the weeks and month ahead, I do know that advocates for marijuana reform are likely to waste no time stressing the potential job creation and tax revenue benefits from marijuana reform. As this title of this post suggests, I cannot help but wonder if in many states, and maybe even at the federal level, an economic development argument for marijuana reform may start to become nearly irresistible.
I do not have the time right now to do a comprehensive review of pre-COVID press pieces and articles and reports making much of the varied potential economic benefits of marijuana reform. But this haphazard collection of titles and links provides a flavor for what I expect we will be hearing a lot from marijuana reform advocates in the weeks and months ahead:
UPDATE: I just saw this new Yahoo Finance article headlined "Coronavirus could accelerate US cannabis legalization." Here are excerpts:
DataTrek Research’s Jessica Rabe writes in a note, “there’s a simple and effective solution for states and cities to help cover their huge budget shortfalls after the COVID-19 pandemic subsides: legalize recreational sales of marijuana.”...
“We’ve been thinking a lot about how life will change post-virus, and one big difference will be that state and local governments are going to encounter large unexpected tax receipt shortages,” Rabe wrote. “That’s particularly true when it comes to sales and income taxes amid stressed consumer balance sheets and massive layoffs. And unlike the Federal government, states can’t print unlimited amounts of money.”
Legalization of cannabis for adults, Rabe points out, could be a really easy way to shore up tax basis without driving people out of state, as raising income tax might do. Already it has been successful at raising “hundreds of millions of dollars annually in states like Colorado,” she said.
March 26, 2020 in Employment and labor law issues, History of Marijuana Laws in the United States, Recreational Marijuana Commentary and Debate, Taxation information and issues , Who decides | Permalink | Comments (0)
Wednesday, March 25, 2020
At Brookings, Makada Henry-Nickie and John Hudak have this interesting new brief as part of its "Policy 2020" series titled "It is time for a Cannabis Opportunity Agenda." Here is the paper's executive summary:
The 2020 election season will be a transformative time for cannabis policy in the United States, particularly as it relates to racial and social justice. Candidates for the White House and members of Congress have put forward ideas, policy proposals, and legislation that have changed the conversation around cannabis legalization. The present-day focus on cannabis reform highlights how the War on Drugs affected targeted communities and how reform could ameliorate some of those wrongs. The national conversation on cannabis stands at a pivotal inflection point that provides policymakers and legislators with an extraordinary opportunity to establish a policy context wherein inclusive economic opportunities can thrive in tandem with responsible investments to redress longstanding harms.
When Congress works to remedy a discriminatory past or to rectify decades of institutionalized bias, it has an obligation to thoroughly consider implicit and explicit hurdles to equity. Nowhere is this deliberation more critical than in drug policy reform. For decades, the criminalization of drugs led to foreclosed opportunities for people of color who were disproportionately victimized by unequal criminal enforcement. In 2013, police officers were 3.73 times more likely to arrest people of color for cannabis possession than whites. Arrest disparities were even more egregious in some communities where Blacks were 8.3 times more likely than whites to be arrested for possession. The racist roots of the War on Drugs inflicted significant collateral damage on minority groups, saddling young men and women of color with drug convictions — often before age 30 — and setting them on a course of institutionalized disadvantage because of the crippling, collateral consequences of criminal records.
Today, amidst a thriving state-legal cannabis industry, the same people hurt most by the drug war face the greatest barriers to participating in the emerging cannabis economy. As elected officials consider how to reform the nation’s cannabis laws and rectify these serious socioeconomic and racial issues, they must erase any ambiguity about the protections, corrective actions, and inclusive opportunities intended to reverse the generation-long ills of the War on Drugs. We argue that 2020 is an opportune moment to design a comprehensive pragmatic Cannabis Opportunity Agenda: a set of policies that addresses the social harms of marijuana prohibition and seeks to rehabilitate impacted communities with a focus on equity, opportunity, and inclusion.
March 25, 2020 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, Recreational Marijuana Commentary and Debate | Permalink | Comments (0)
Tuesday, March 24, 2020
I suspect regular readers have an inkling for why I have not blogged in this space for a few weeks. For this blogger, the new coronavirus world has meant a lot more time spent rescuing kids from shuttered colleges, gearing up for online classes, and lots of blogging at Sentencing Law & Policy about the impact of the virus on our criminal justice systems. Because a lot of organizations and journalists spend a lot of time covering marijuana news, I have not tried to keep up here with all the ways in which the COVID-19 is changing the marijuana reform world.
That all said, I think it useful to keep up with news in this space, if only to document how this historical moment is being captured in news stories and headlines. So, as social distancing turns into lockdowns and as stimulus package proposals get closer to becoming law, here is a sampling:
From CNN Business, "Cannabis advocates to governors: Our businesses are 'essential'"
From Marijuana Business Daily, "Coronavirus outbreak could delay marijuana legalization along East Coast, other states"
From Marijuana Business Daily, "Adult-use cannabis sales plunge after briefly hitting new heights on coronavirus concerns"
From Marijuana Moment, "Marijuana Industry Pleads For Access To Federal Coronavirus Business Relief"
From Marijuana Moment, "Nebraska Medical Marijuana Campaign Suspended Due To Coronavirus"
From Westworld, "Ask a Stoner: Quarantining Proves We Should Grow Our Own"
UPDATE: These topics made the New York Times this afternoon: "Is Marijuana an ‘Essential’ Like Milk or Bread? Some States Say Yes"
March 24, 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, Who decides | Permalink | Comments (0)
Thursday, March 12, 2020
Regular readers know that I am always interested in marijuana reform impacts criminal justice systems, and that I am particularly interested in topics covered in my Federal Sentencing Reporter article, "Leveraging Marijuana Reform to Enhance Expungement Practices," regarding how marijuana reform efforts may be impacting criminal record expungement efforts. Consequently, I was terrifically excited to see this new post and resource from the terrific Collateral Consequences Resource Center authored by Deputy Director David Schlussel under the title "Legalizing marijuana and expunging records across the country."
Readers are urged to check out the full posting and materials, and this snippet from the start of the post provides a flavor of why:
As the legalization or decriminalization of marijuana has now reached a majority of the states, the expungement of criminal records has finally attained a prominent role in the marijuana reform agenda. Laws to facilitate marijuana expungement and other forms of record relief, such as sealing and set-aside, have now been enacted in more than a dozen states. Most of these laws cover only very minor offenses involving small amounts of marijuana, and require individuals to file petitions in court to obtain relief. But a handful of states have authorized streamlined record reforms that will do away with petition requirements and cover more offenses. In the 2020 presidential race, Democratic candidates have called for wide-ranging and automatic relief for marijuana records.
Given these important developments that we expect will continue in the present legislative season, we have put together a chart providing a 50-state snapshot of:
(1) laws legalizing and decriminalizing marijuana; and
(2) laws that specifically provide relief for past marijuana arrests and convictions, including but not limited to conduct that has been legalized or decriminalized.
We hope this tool will help people assess the current state of marijuana reform and work to develop more expansive, accessible, and effective record relief.
Friday, March 6, 2020
Eager to include discussion of notable tax allocation provision in new Ohio marijuana reform initiative as part of "A Fresh Take on Cannabis Regulation"
As highlighted in prior posts here and here, a serious effort to get a serious marijuana legalization initiative to Ohio voters in November 2020 is in the works. Though this Ohio 2020 ballot initiative, titled "An Amendment to Regulate Marijuana Like Alcohol," still has an uphill climb to even make it to the ballot, I will likely be discussing some of its mostinteresting provisions in a variety of fora in the months ahead. And today the forum will be at the University of Cincinnati where I have the honor of participating in the College of Law's Corporate Law Symposium titled "A Fresh Take on Cannabis Regulation."
On my panel today, I plan to discuss some of the topics I first covered in my 2018 article, "Leveraging Marijuana Reform to Enhance Expungement Practices," exploring ways that marijuana reform intersects with criminal justice concerns. In that article, among other points, I urge jurisdictions to earmark a portion of marijuana revenues to improving the criminal justice system and I specifically advocate for the creation of a new criminal justice institution, which I call a Commission on Justice Restoration, to be funded by the taxes, fees and other revenues generated by marijuana reforms and to be tasked with proactively working on policies and practices designed to help remedy some of the harms of the war on drugs.
Against that backdrop, I was especially intrigued by an interesting provision for taxing and spending the tax revenue appearing in new Ohio marijuana legalization ballot initiative. Specifically, Section 12(E)(5) of the proposed Ohio constitutional amendment provides:
The General Assembly may enact a special sales tax to be levied upon marijuana and marijuana products sold at retail marijuana stores or other entities that may be authorized to sell marijuana or marijuana products to consumers and, if such a sales tax is enacted, shall direct the Department to establish procedures for the collection of all taxes levied. Provided, at least one-quarter of the revenue raised from any such sales tax shall be placed in a special fund and used to establish a Commission on Expungement, Criminal Justice, Community Investment, and Cannabis Industry Equity and Diversity, which shall provide recommendations regarding the allocation of the remaining revenue in the fund; at least one-half of the revenue raised from any such sales tax shall be allocated to the State Local Government Fund or any successor fund dedicated to a similar purpose; and at least one-tenth of the revenue raised from any such sales tax shall be returned to the municipal corporations or townships in which the retail sales occurred in proportional amounts based upon the sales taxes remitted.
Though I think the the Commission on Expungement, Criminal Justice, Community Investment, and Cannabis Industry Equity and Diversity (CECJCICIED?) is a very clumsy name, I this it is a very good idea and I am quite excited to see a marijuana reform proposal that includes a means for building needed criminal justice infrastructure with the proceeds of marijuana taxes.
- Ballot initiative pursuing 2020 vote on full marijuana legalization in Ohio now in the works
- Ohio 2020 ballot initiative, "An Amendment to Regulate Marijuana Like Alcohol," officially filed
March 6, 2020 in Criminal justice developments and reforms, Initiative reforms in states, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms, Who decides | Permalink | Comments (0)
Tuesday, February 25, 2020
I have to give a shout out to CBS News for asking a direct question on marijuana policy and reform, though only three candidates had time during the debate to speak to the issue. This live-time coverage of the debate reports on the (mostly unsurprising) comments from the candidates under the heading "Sanders pushes ahead on legalizing marijuana, but isn't joined by other candidates":
Klobuchar was given the first chance to address the issue of legalizing marijuana. "Well, it is realistic to want to legalize marijuana, I want to do that, too," Klobuchar said.
The Minnesota senator added there also needs to be funding for treatment, so there aren't "repeat customers."
Bloomberg said small amounts of marijuana possession shouldn't be criminalized. And legalization wouldn't be taken away from states that have already legalized the drug. But he admitted there isn't enough research on mairjuana to know how much damage marijuana does, particularly on young minds, so he isn't pushing for full legalization at this point. "Until we know the science, it's just nonsensical to push ahead," Bloomberg said.
Sanders blasted the "horrific war on drugs," and said he would "effectively legalize" marijuana. He also said he wants to move to expunge the records of people with marijuana convictions.
February 25, 2020 in Campaigns, elections and public officials concerning reforms, Criminal justice developments and reforms, Federal Marijuana Laws, Policies and Practices, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)
The title of this post is the title of this new "technical report" from the European Monitoring Centre for Drugs and Drug Addiction and authored by Bryce Pardo, Beau Kilmer and Rosalie Liccardo Pacula of the RAND Europe/RAND Drug Policy Research Center. The full 76-page report is worth reviewing in full, and here are some excerpts from the report's executive summary:
To learn more about these new cannabis regimes and their consequences, the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) commissioned a review of the changes governing recreational cannabis policies in the Americas and an overview of preliminary evaluations. Findings from this research are intended to inform discussions about the development of a framework for monitoring and evaluating policy developments related to cannabis regulatory reform. Key insights include the following.
In addition to the populations of Canada and Uruguay, more than 25 % of the US population lives in states that have passed laws to legalise and regulate cannabis production, sales and possession/use for recreational purposes. In the US, allowing licensed production and sales is often at the discretion of sub-state jurisdictions, which may impose further zoning restrictions on cannabis-related activities. This variation can complicate analyses that attempt to compare legalisation and non-legalisation states, especially when the outcome data are not representative at state level.
The peer-reviewed literature on cannabis legalisation is nascent, and we observe conflicting results depending on which data and methods are used, as well as which implementation dates and policies are considered. It is important to remain sceptical of early studies, especially those that use a simple binary variable to classify legalisation and non-legalisation states. This scepticism should extend to the many studies that fail to account for the existence of robust commercial medical cannabis markets that predate non-medical recreational cannabis laws. Even if a consensus develops on certain outcomes, it does not mean that a relationship will hold over time. Changes in the norms about cannabis use and potentially other substances, the maturation of markets and the power of private businesses (if allowed) could lead to very different outcomes 15 or 25 years after recreational cannabis laws have passed. Evaluations of these changes must be considered an ongoing exercise, not something that should happen in the short term....
One insight arising from the evaluations of the regulatory changes in the Americas to date is the importance of the amount and range of data collected before the change; simply comparing past-month prevalence rates will not tell us much about the effect of the change on health. While US jurisdictions have been moving quickly to legalise the use of cannabis, the data infrastructure for evaluating these changes is limited. In contrast, Canada has made important efforts to field new surveys and create new data collection programmes in anticipation of legal changes. This highlights the importance of any jurisdictions that are considering changes to the regulatory framework for cannabis starting to think about improving data collection and analysis systems in advance.
While there is much to learn from what is happening in the Americas, policy discussions should not be limited to approaches that have been implemented there. There are several regulatory tools (e.g. minimum pricing, potency-based taxes) that receive very little attention — if any — that could have important consequences for health, public safety and/or social equity. It needs to be recognised that all decisions of this nature involve trade-offs and acknowledging that individuals (and governments) have different values and preferences for risk when it comes to cannabis policy is important for productive debates on this controversial topic.
February 25, 2020 in International Marijuana Laws and Policies, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)
Wednesday, February 19, 2020
"Colorado marijuana sales hit a record $1.75 billion in 2019: Cannabis sales have now reached a total of $7.79 billion in the 6 years since legalization"
The title of this post is the full headline of this new Denver Post piece, which provides a reminder of how easy it is to identify (some) economic metrics that follow from marijuana reform. Here are the details:
Last year was the most lucrative 12 months for cannabis sales in Colorado since the state’s voters legalized recreational marijuana. Medical and recreational cannabis sales hit a record $1.75 billion in 2019, up 13% from 2018, according to data from the Department of Revenue’s Marijuana Enforcement Division. Marijuana tax collections also hit an all-time high, at more than $302 million in 2019.
December closed out the year with strong sales totaling more than $144 million, up 6.7% compared to the previous year. But that wasn’t the biggest month of 2019; instead, August topped the calendar year with $173 million in sales. All told, Colorado marijuana sales now have hit $7.79 billion since recreational sales began in 2014.
Truman Bradley, the newly appointed executive director of the Marijuana Industry Group, said the revenue increases in Colorado track with expectations. “People are moving from the unregulated market to the regulated market,” Bradley said. “As reefer madness goes away, as the stigmatism of cannabis reduces and people come over to the regulated market, I would expect that trend to continue.”
Since January 2014, Colorado’s cannabis industry has generated $1.21 billion in tax revenue. Those taxes are allocated to the state’s public education fund, which covers initiatives such as the Colorado Department of Education’s Building Excellent Schools Today (BEST) fund; the state general fund, which covers agencies’ expenses; and the marijuana tax fund, which benefits programs related to substances abuse and treatment, health research, youth education and more. Tax revenues also benefit local governments.
In recent posts (here and here and here) and in my marijuana seminar, I have been exploring in various ways what might be the proper metrics for assessing medical marijuana reform regimes. This new data from Colorado, in turn, prompts similar questions about assessing recreational reform regimes. I am inclined to believe these numbers represent positive economic realities like increased employment, wealth and valuable wealth reallocation via taxes. But public health experts might see these numbers as representing negative health trends and they might also perhaps demonstrate problematic wealth reallocation from the vulnerable to the already privileged.
February 19, 2020 in Business laws and regulatory issues, History of Marijuana Laws in the United States, Recreational Marijuana Commentary and Debate, Recreational Marijuana Data and Research, Taxation information and issues | Permalink | Comments (0)
Monday, February 3, 2020
As reported in this press release, last week the New York State Bar Association (NYSBA) "approved a report from the NYSBA Committee on Cannabis Law that supports the legalization of adult recreational marijuana use in New York." Here is more:
The report outlines suggested strategies for the implementation of legalized cannabis in New York State, and was adopted at NYSBA’s House of Delegates meeting in New York City Jan. 31 as part of the association’s Annual Meeting.
“With the full support of the New York State Bar Association, we are hopeful our report will offer the necessary guidance to New York’s governing bodies as they consider the legalization of adult use cannabis,” said Aleece Burgio (Barclay Damon), who co-chairs the committee with Brian J. Malkin (Arent Fox) and presented the report to the House of Delegates.
“The report provides the necessary details surrounding safety, research, social equity, taxation, and other principles critical to the success of a legalized adult use program in this state,” continued Burgio. “While policy continues to evolve at the federal level, the committee also believes the most effective way to navigate this complex issue is for any comprehensive cannabis proposal to include hemp, medical marijuana and adult use.”
In its detailed 23-page report [available here], the committee said it was not aware of a single jurisdiction that has passed model cannabis regulation and legalized adult-use that would be appropriate for New York to adopt in total.
However, the committee noted that the nonprofit, nonpartisan RAND Corporation has been commissioned by several state legislatures for comprehensive advice and analysis prior to developing their legalized cannabis use legislation and believes New York would similarly benefit by commissioning RAND or a similar organization to conduct such a study or analysis.
The report also recommends that any New York legalized marijuana use legislation include:
- USDA mandated cannabis testing
- A comprehensive state Office of Cannabis Management
- Provisions for local municipality “opt-out”
- Social equity provisions
- State tax
- Advertising and marketing guidelines
- State environmental protections
Monday, January 20, 2020
Taking stock of 2020 marijuana reform prospects in various states (and noting some significant omissions)
Jeff Smith over at MJBizDaily has this helpful article (with a helpful graphic) under the headline "Several states could legalize cannabis sales in 2020 as marijuana industry eyes lucrative East Coast market." The article maps out the ten or so states that might move forward with adult-use legalization regimes in 2020 and also reviews the handful of states in which medical marijuana legalization might move forward this year. Here is a snippet from the start of the piece:
Up to a dozen states could legalize adult-use or medical marijuana in 2020 through their legislatures or ballot measures, although only about a handful will likely do so.
Much of the cannabis industry’s focus will home in on a possible recreational marijuana domino effect along the East Coast, which could create billions of dollars in business opportunities. Adult-use legalization efforts in New York and New Jersey stalled in 2019, but optimism has rekindled this year.
Potential legalization activity runs from the Southwest to the Dakotas to the Deep South. Mississippi in particular has a business-friendly medical cannabis initiative that has qualified for the 2020 ballot.
If even a handful of these state marijuana reforms move forward this year, it becomes that much more likely that some form of federal reform will have to follow. That reality is one of the theme of this lengthy new Politico article which also provides an accounting of potential state reforms under the full headline "Marijuana legalization may hit 40 states. Now what?: Changes in state laws could usher in even more confusion for law enforcement and escalate the pressure on Congress to act." Here is an excerpt:
More than 40 U.S. states could allow some form of legal marijuana by the end of 2020, including deep red Mississippi and South Dakota — and they’re doing it with the help of some conservatives. State lawmakers are teeing up their bills as legislative sessions kick off around the country, and advocates pushing ballot measures are racing to collect and certify signatures to meet deadlines for getting their questions to voters.
Should they succeed, every state could have marijuana laws on the books that deviate from federal law, but people could still be prosecuted if they drive across state lines with their weed, because the total federal ban on marijuana isn’t expected to budge any time soon. The changes could usher in even more confusion for law enforcement and escalate the pressure on Congress to act. Federal bills are crawling through Congress, with Senate Majority Leader Mitch McConnell firmly against legalization....
“We’re cautiously optimistic that we can win more marijuana reform ballot initiatives on one Election Day than on any previous Election Day,” said Matthew Schweich, deputy director of the Marijuana Policy Project. Schweich cited growing public support for the issue among both liberals and conservatives. The measures that make the ballot could drive voter turnout at the polls and by extension affect the presidential election.
Liberal states that allow ballot petitions have largely voted to legalize marijuana, including California, Oregon and Massachusetts. “Now, we’re venturing into new, redder territory and what we’re finding is voters are ready to approve these laws in those states,” said Schweich, who, along with leading legalization campaigns in Maine, Massachusetts and Michigan, served as the co-director of the medical marijuana legalization campaign in Utah. “If we can pass medical marijuana in Utah, we can pass it anywhere.”
National organizations like his are eschewing swing states like Florida and Ohio, where the costs of running a ballot campaign are high during a presidential election. They are intentionally targeting states with smaller populations. For advocates, running successful campaigns in six less-populous states means potentially 12 more senators representing legal marijuana states. “The cost of an Ohio campaign could cover the costs of [four to six] other ballot initiative campaigns. Our first goal is to pass laws in as many places as we can,” Schweich said.
They can’t take anything for granted, however. In Florida, where polling says two-thirds of voters want to legalize pot, one effort to gather enough signatures for a 2020 ballot measure collapsed last year, and a second gave up on Tuesday, saying there’s not enough time to vet 700,000 signatures. Organizers are looking to 2022. And many legislative efforts to legalize marijuana came up short in 2019, including in New York and New Jersey. Those efforts were derailed in part over concerns about how to help people disproportionately harmed by criminal marijuana prosecutions, despite broad support from Democratic-controlled legislatures and the governors.
I fully understand the strategic and economic reasons why MPP and other national marijuana reform activist groups have chosen not to focus on big purple states like Florida and Ohio for full legalization campaigns. But these two states have unique long-standing and well-earned reputations as national swing states. Only if (when?) these kinds of big (reddish-purple) states go the route of full legalization will I think federal reform becomes unavoidable.
January 20, 2020 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, History of Marijuana Laws in the United States, Medical Marijuana State Laws and Reforms, Recreational Marijuana Commentary and Debate, Recreational Marijuana State Laws and Reforms | Permalink | Comments (0)
Thursday, January 16, 2020
"From Reefer Madness to Hemp Utopia: CBD, Hemp and the Evolving Regulation of Commoditized Cannabis"
The title of this post is the title of this exciting event taking place next week put on by the Drug Enforcement and Policy Center at The Ohio State University. Here are all the essential details and some background from this page where you can also find a registration link:
When: Friday, January 24 from 7:30-9:30 a.m.
Where: 2nd Floor Rotunda, Mason Hall, 250 W Woodruff Avenue, Columbus Ohio
Join the Drug Enforcement and Policy Center and the Center for Innovation Strategies for From Reefer Madness to Hemp Utopia: CBD, Hemp and the Evolving Regulation of Commoditized Cannabis. The latest Cannabiz Roundtable discussion will feature a panel of experts as they discuss the challenges of regulating the unusual agricultural commodity that is hemp and the myriad products infused with one of its derivatives, CBD.
With the passage of the 2018 Farm Bill, the world of the cannabis plant has undergone a seismic shift allowing for its legal cultivation as long as its THC content remains below 0.3%. A year later, the federal and state governments, including the state of Ohio, are in the process of creating regulations that would allow the agricultural sector to take advantage of this new crop while at the same time addressing numerous concerns about public health and law enforcement.
Benton Bodamer, DEPC Adjunct Faculty, Dickinson Wright PLLC, Columbus
Donnie Burton, Owner and CEO, The Harvest Foundation
David E. Miran, Jr. Esq., Executive Director, Hemp Program, Ohio Department of Agriculture
Anthony Seegers, Director of State Policy, Ohio Farm Bureau
Patricia Zettler, DEPC Assistant Professor of Law, Moritz College of Law
Moderator: Douglas Berman, Executive Director, DEPC
7:30 – 8:00 a.m. | registration
8:00 – 9:00 a.m. | panel
9:00 – 9:30 a.m. | follow up conversation and networking
January 16, 2020 in Business laws and regulatory issues, Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)
Monday, January 13, 2020
As detailed on this US House committee webpage, the "Subcommittee on Health of the Committee on Energy and Commerce will hold a legislative hearing on Wednesday, January 15, 2020, at 10 a.m. in the John D. Dingell Room, 2123 of the Rayburn House Office Building. The hearing is entitled, 'Cannabis Policies for the New Decade'." Interestingly, the hearing page provides a list and links to six House bills with varying approaches to marijuana reform as well as the names and titled of the three government officials now scheduled to testify:
H.R. 171, the "Legitimate Use of Medicinal Marihuana Act" or the "LUMMA"
H.R. 601, the "Medical Cannabis Research Act of 2019"
H.R. 1151, the "Veterans Medical Marijuana Safe Harbor Act"
H.R. 2843, the "Marijuana Freedom and Opportunity Act"
H.R. 3797, the "Medical Marijuana Research Act of 2019"
H.R. 3884, the "Marijuana Opportunity Reinvestment and Expungement Act of 2019" or the "MORE Act of 2019"
Matthew J. Strait
Senior Policy Advisor, Diversion Control Division
Drug Enforcement Administration
Douglas Throckmorton, M.D.
Deputy Director for Regulatory Programs, Center for Drug Evaluation and Research
Food and Drug Administration
Nora D. Volkow, M.D.
Director, National Institute on Drug Abuse
National Institutes of Health
Also listed on the website is a "Key Document" in the form of a "Memorandum from Chairman Pallone to the Subcommittee on Health." This memo runs six pages and provides a nice primer on the basics of federal cannabis law as well as a very brief accounting of the six bills listed above.
January 13, 2020 in Campaigns, elections and public officials concerning reforms, Federal Marijuana Laws, Policies and Practices, Medical Marijuana Commentary and Debate, Recreational Marijuana Commentary and Debate, Who decides | Permalink | Comments (0)
Friday, January 10, 2020
The question in the title of this post is promoted by this CNN Business piece which asserts in its headline "2020 could be a defining year for the cannabis industry." I find myself a bit skeptical because it seems someone says every January that this year is going to be a defining one for marijuana reform. But I do think there are reasons to see 2020 as an especially big year in this space, and here is part of the article:
2019 was a momentous year for the cannabis industry: Hemp-derived CBD had a heyday, Illinois made history, California got sticky, vapes were flung into flux, and North American cannabis companies received some harsh wake-up calls.
2020 is gearing up to be an even more critical year. There's a well-worn saying in the cannabis business that the emerging industry is so fast-moving that it lives in dog years. 2020 is barely a week old, and cannabis is already making headlines after Illinois kicked off the new year with recreational sales. Other states are inching closer to legalization this year -- with several mulling how best to ensure social equity. Also in 2020, there's the FDA could chill the CBD craze, and a move from Congress could change the game entirely....
Illinois will remain in focus, after it made history last year with the first legislatively-enacted recreational cannabis program. Critical aspects of its program include social equity and social justice measures created to help people and communities most harmed by the War on Drugs. "Underserved groups are holding the industry accountable," said Gia Morón, president for Women Grow, a company founded to further the presence of women in the cannabis industry. "And our legislators are recognizing that [social, gender and minority concerns] are a part of this now."
New York and New Jersey have been flirting with legalization but have held off to navigate some logistics related to aspects that include social equity. The governors of New York, New Jersey, Connecticut and Pennsylvania convened this past fall for a summit on coordinating cannabis and vaping policies. New Jersey is putting a recreational cannabis measure before voters in November, and Gov. Andrew Cuomo vowed Wednesday that New York would legalize cannabis this year....
CBD products have been all the rage, but they may be on shaky ground. CBD oils, creams, foods and beverages have seen an explosion in availability following the passage of the 2018 Farm Bill, which legalized hemp but left plenty of discretion to the US Food and Drug Administration, which regulates pharmaceutical drugs, most food items, additives and dietary supplements.
The FDA is reviewing CBD and has yet to issue formal guidance, although the agency has issued warning letters to CBD makers that make unsubstantiated health claims. Class action lawsuits have been filed against several CBD companies, including two of the largest, Charlotte's Web and CV Sciences, alleging they engaged in misleading or deceptive marketing practices, Stat News reported.
Cannabis insiders are closely awaiting the fate of industry-friendly bills such as the STATES Act, which would recognize cannabis programs at the state level, and the SAFE Banking Act, which would allow for banks to more easily serve cannabis companies. Those and other bills likely won't pass in full...
In addition to the promise of new markets, the evolution of established cannabis programs could also play a significant role in the cannabis business landscape. In California, the world's largest cannabis industry has developed in fits and starts. Regulators are taking aim at an entrenched illicit market as businesses decry tax increases and local control measures that limit distribution....
Canada's "Cannabis 2.0" roll-out of derivative products -- such as edibles, vapes and beverages -- is in its beginning stages. The Canadian publicly traded licensed producers that have been beset by missed and slow market development have bet heavily on these new product forms....
The capital constraints are expected to continue into the first leg of 2020 as some initial bets don't pan out for some companies, said Andrew Freedman, Colorado's former cannabis czar who now runs Freedman & Koski, a firm that consults with municipalities and states navigating legalization. Some companies' low points could create opportunities for other firms and investors that waited out the first cycle, Freedman said. "In 2020, I see that everybody will understand the economics of cannabis a little bit better," he said.
I am with Andrew Freedman in thinking that the realities of marijuana reform and the industry will, at best, become just "a little bit" clearer during 2020. In the end, I think what will matter most is who wins the White House and control of Congress in this big election year. If the status quo holds after the votes are counted, I do not expect to see federal reform anytime soon. But if new leadership takes over the White House or the Senate, then 2021 will become real interesting.
January 10, 2020 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)