Showing posts with label marijuana. Show all posts
Showing posts with label marijuana. Show all posts

Wednesday, February 7, 2024

Marijuana black market persists in CA (despite the beginning of a legal market)

 The LA Times has the story, about how legalization of marijuana in California so far failed to end the black market, complete with violence in the Southern California desert.

A massacre that killed 6 reveals the treacherous world of illegal pot in SoCal deserts, by SUMMER LIN, SALVADOR HERNANDEZ, KAREN GARCIA

"A Times investigation last year uncovered the proliferation of illegal cannabis in California after the passage of Proposition 64, which legalized the recreational use of marijuana in the state. Although the 2016 legislation promised voters that the legal market would hobble illegal trade and its associated violence, there has been a surge in the black market.

"Growers at illegal sites can avoid the expensive licensing fees and regulatory costs associated with legal farms. Violence is a looming threat at these operations, authorities said, because illicit harvests yield huge quantities of cash to operators who can’t use banks or law enforcement for protection.

...

"In 2019, an audit by the United Cannabis Business Assn. found nearly 3,000 unlicensed dispensaries and delivery services were operating in the state — at least three times more than legal, regulated businesses.

...

"Warrick wouldn’t comment on whether the slayings were cartel-related but said there were “certain things at the scene that show a level of violence that obviously raises some interesting questions for us.”

Sunday, August 6, 2023

Growing pains for legal marijuana, in California and beyond

The market for legal marijuana in the U.S. is suffering from (literal) growing pains, as large scale legal cultivation runs into both crop diseases, and zoning issues.

As a crop that is legal at the state level in many states, but still illegal under federal law, large cannabis farms don't get some of the benefits regarding the spread of plant diseases that are provided for other crops by the U.S. Department of Agriculture.

The WSJ has the story:

Cannabis Industry Confronts Billion-Dollar Threat: Weak Weed. Pathogen spreading among crops is cutting recreational drug’s potency, forcing growers to cull ‘dudded’ plants.  By Dean Seal

"A pathogen is contaminating cannabis crops around the country and threatening to leave billions of dollars of losses in its wake. 

"Cannabis researchers and experts are sounding the alarm for what is known as hop latent viroid, or HLVd, and cultivators are stepping up efforts to discover whether their plants are infected. The pathogen can drastically reduce the potency of the psychoactive compounds in marijuana, a phenomenon that growers have long called “dudding.”

...

"Plant pathologists and cannabis experts say the spread of the viroid was likely accelerated by the popularity of weed from California, which legalized cannabis for medical use in 1996.

"The spread also reflects the evolution of the cannabis business into a major agricultural crop. The risk of a new disease expanding increases for any crop that goes from low to high production, as cannabis has in the past two decades, said Jeremy Warren, Dark Heart’s director of plant science.

“You saw the spread happen in the legal states first, like California, where you started having bigger grows and bigger greenhouses that are making thousands and tens of thousands of plants,” Warren said. “In that system, it’s harder to maintain sanitation and it’s easier for a pathogen to take off.”

"The U.S. Agriculture Department typically sets quality standards and inspection requirements for agricultural products, but marijuana’s illegality at the federal level keeps it out of the agency’s purview."

*******

And big farms mean that agriculture and expensive housing may rub shoulders in California. Here's the Guardian on Santa Barbara County.

A beachside city became California’s legal cannabis capital. Not everyone is stoked  by Nicholas Schou

"Thanks to the most lenient policies in California for recreational marijuana, Santa Barbara county is now the state’s undisputed capital of legal cannabis, boasting more acres than the storied Emerald Triangle of Humboldt, Trinity and Mendocino counties.

"Santa Barbara voters overwhelmingly backed California’s legalisation of recreational marijuana in 2016, with hopes that the cannabis boom would bring tax revenue and new jobs to the county. The transformation has been fast and furious. Santa Barbara county is now home to around a third of all cultivation licenses issued in California, despite making up only 1.8% of the state’s land, with some megafarms stretching over dozens of acres.

"But the sudden influx of growers has inspired a broad coalition of frustration that spans local high schools, uber-wealthy homeowners and the region’s influential wine industry, who argue the pungent industry threatens to ruin their cherished lifestyle in a region dubbed the “American Riviera”.

...

"The tensions underscore a wider drama playing out in California over the promises of legal weed. Despite broad public support for bringing the industry out of the shadows, seven years on the illicit market is thriving, businesses are struggling to turn a profit, and many on the frontlines of the transition say they have yet to enjoy the returns.

"In fact, for the first time, officials in Santa Barbara are acknowledging that if market trends continue, the cost of the program both to public finances and to quality of life may outweigh any actual benefits.

...

"California’s cannabis market has been operating in a quasi-legal sphere since 1996, when medical marijuana was decriminalized. In 2016, advocates for Proposition 64 successfully argued that decriminalizing all cannabis use would create lucrative tax schemes and rewrite the historic injustices of policing such a widely used drug.

"But Prop 64 allowed cities to choose whether to allow cannabis businesses or not. Many refused to, banning both cultivation and dispensaries. Others, with varying degrees of success and scandal, sought to cash in on the “green rush”.

...

"Santa Barbara is alone among counties in that it taxes farmers based on the value of the marijuana they sell, as opposed to the acreage of their farms. While that strategy works when cannabis values are high, the industry has experienced a massive decline in profitability during the past year. With the sale price of cannabis in the state at roughly a third of its value just a year or so ago, many corporate investors have pulled out of the market entirely, and the number of licensed growers in Santa Barbara county has declined by about 25%.

"As a result, the county is expecting to earn just $7.5m in cannabis tax revenue this year, a 54% decline from 2022 and only half the $15.2m that was expected to fund the county’s latest budget, according to a county report."

Saturday, July 15, 2023

Marijuana and military recruitment

 Here's a proposal for a bit pf reality-based legislation that has some bipartisan support. DefenseOne has the story:

Proposed marijuana waivers acknowledge blunt recruiting truths. Lawmakers on both sides of the aisle want to remove a barrier to joining the U.S. military.  by LAUREN C. WILLIAMS 

"As the military services struggle to meet recruiting goals, lawmakers in the divided House seem united on a proposed fix: relaxing the Pentagon’s policies on marijuana use.

“I do not believe we should be testing for cannabis [in] people who want to join the military,” Rep. Matt Gaetz, R-Fla., told the House Rules Committee during a hearing on Tuesday. “We should be thinking about cannabis more in terms of alcohol.”

Gaetz testified in support of his amendment that would ban drug testing for marijuana as a condition of enlistment or to become a commissioned officer. 

“We are having a recruiting crisis,” he said, noting that many “people use cannabis under the color of state law.” So far, 23 states and Washington, D.C. have legalized the recreational use of marijuana.

"The Florida lawmaker stressed that his amendment wouldn’t preclude DOD from prohibiting marijuana use for individuals actively serving in the military, but that cannabis testing is “an unnecessary gate” for recruitment. In 2021, Gaetz sought to overturn U.S. election results."

Tuesday, March 21, 2023

The future cannabis market?

 The Washington Post has the story on a big bet on the future of the American cannabis market:

Giant California greenhouse signals a big bet on cannabis legalization. One enormous facility on the northern edge of metro Los Angeles reveals expectations of marijuana becoming legal nationally.  By Scott Wilson

"Graham Farrar has placed the bet here. He is the president and co-founder of Glass House Farms, and the company’s greenhouse offers 5 million square feet of indoor space for cannabis production. That comes to just over 114 acres, the equivalent of about 86 football fields.

...

"Far from the misty northern redoubts of the state’s historic cannabis culture, the crop here grows just a few miles from highway-side outlet malls, an expanding regional airport, and the broad blue-stretch and logo-smile of an Amazon warehouse and distribution center.

"Those neighborhood ambitions help reveal Farrar’s own restless intent — to create a national cannabis business, even though his product, while legal in the Republic of California, remains illegal in the United States of America.

“I have the capacity, when the time is right, to produce on a national scale the best cannabis in the world,” Farrar said during a recent tour.

“And when that happens,” Farrar added, speaking of national legalization, “this farm goes from feeling really big to really small.”

...

"Last year, the California legislature passed a bill to allow licensed California cannabis businesses to sell their products in other cannabis-legal states.

...

"In a recent interview, Lee said that allowing trade with Oregon, Washington, Nevada and Colorado — all cannabis-legal states — would pose a risk not “qualitatively” different than what the state or cannabis businesses are taking now by defying federal law.

...

"In this marketing view, California is to weed what Cuba is to cigars."

Saturday, January 7, 2023

It's hard to enforce the ban on cannabis in Kansas

 Just as markets need social support, bans on markets need social support.  Even in Kansas, apparently, where marijuana remains completely outlawed. (Kansas borders on Colorado and Missouri, where (even) recreational use of marijuana is legal, and on Arkansas, and Oklahoma, where medical use is legal.)

The Guardian has the story:

A dying cancer patient used cannabis to ease pain. His hospital called the police. ‘You’d think they would have shown compassion’: patient’s son decries Kansas police who issued citation as father suffered.  by Lois Beckett

"Hospital staff in Kansas called the police on a man dying of cancer who was using cannabis products to cope with his symptoms, in an incident that has since sparked outrage and renewed calls to rethink the state’s strict cannabis laws.

"The encounter took place in mid-December, when police in the city of Hays say two officers showed up at the cancer patient’s hospital room to issue him a citation for a drug violation. 

...

"Because of the Christmas holiday, the city prosecutor had not seen the email about dismissing the charge until after the police interaction with the cancer patient had already become a viral news story, the police chief said. He said he personally let the patient know on 27 December that the police department was not pursuing the citation and that he would not have to appear in court.

"More than a hundred people have called or emailed the Hays police department, upset about news reports of officers’ interactions with the cancer patient, the chief said. "

Friday, November 11, 2022

Marijuana legalization advances in the 2022 elections

Time Magazine published this map under the headline "Why Marijuana Had a Terrible Night in the 2022 Midterm Elections"

It doesn't look so terrible to me, so much as increasingly inevitable. The grey states on the map (where marijuana remains entirely illegal) are shrinking steadily: it doesn't appear that opponents will succeed in making America grey again.


 "Nineteen states and the District of Columbia allow recreational use of marijuana; 13 states outlaw it entirely. The rest of the states—including Arkansas, South Dakota and North Dakota—allow its use for medicinal purposes. It remains illegal under federal law."

*********

It's going to become increasingly hard for States to enforce draconian laws against something that is legal in neighboring states.  That doesn't mean that legalization is always going to go smoothly--the end of Prohibition didn't end alcoholism, and the end of marijuana prohibition won't make marijuana chemically safer (in fact competition will develop strains that are chemically more potent).  But removing legal risks from what would otherwise be uncontrolled black markets, and taking them out of the hands of criminals, still seems to have momentum.

Monday, October 10, 2022

Ambivalence on recreational cannabis in Amsterdam

 The Guardian has the story:

Amsterdam considers banning ‘cannabis tourists’ from its coffee shops. Fed up with stoned visitors and worried by hard-drug criminality, the mayor wants to clean up the city. But will it work? by Senay Boztas

Here's one bit that suggests that ambivalence is widespread, and baked into current regulations.

"In April, in a 13-page policy proposal, the mayor asked for the council’s support to temporarily enforce the residents-only law, largely because of concerns about the “criminal back door” of the coffee shops. Smoking and possessing weed for personal consumption are “tolerated”, but commercial growing is not – so coffee shops must buy from criminals. An influential 2019 report on the capital’s “dark side” suggested revisiting the residents-only rule to help tackle this “urban jungle”.


Tuesday, April 19, 2022

Legal marijuana in New Jersey

 The NY Times has the story:

Legal Marijuana Sales Will Start Next Thursday in New Jersey. All adults will be able to purchase cannabis at certain medical-marijuana dispensaries starting April 21.  By Tracey Tully

"The first sales of recreational, adult-use cannabis in New Jersey will start next Thursday, marking the culmination of a yearslong effort to legalize marijuana and to curtail the racially unbalanced penalties for possessing the drug.

"At least a half-dozen medical-marijuana dispensaries are planning to open their doors to all adults on April 21 after winning final approval this week from New Jersey’s Cannabis Regulatory Commission.

...

"“The end of prohibition is coming to New Jersey,” said Ben Kovler, chief executive of Green Thumb Industries, which operates both dispensaries. “We’re prepared for a tidal wave of demand.”

"He estimated that New Jersey, the second state on the East Coast to begin adult-use sales, could eventually become a $3 billion industry.

“The war on drugs was a failure for people of color,” he said. “This is going to create a lot of wealth, for a lot of people.”

...

"New Jersey voters approved a referendum legalizing marijuana in November 2020, but it was not until this week that the commission established a pathway for the first legal sales of adult-use, recreational cannabis."

Sunday, March 27, 2022

Guns (concealed carry) and marijuana (recreational): two US maps

 In both maps, brown is the color of permissiveness.  E.g. on the northern border, only Maine and Montana don't require permits/prescriptions for either guns or marijuana...

The gun map is from this Washington Post story: Nearly half the country requires no permit to carry a concealed weapon — and it’s a growing trend By Kim Bellware



xxxxxxxxxxxxx
from https://mjbizdaily.com/map-of-us-marijuana-legalization-by-state/





Wednesday, February 23, 2022

Cannabis and the law

 The WSJ has this update:

Push to Relax Marijuana Laws Hits Roadblocks. Biden administration has sidestepped the issue of decriminalizing cannabis despite bipartisan support.  By Alex Leary

"Facing a tough midterm election and divisions in Congress, the Biden administration is sidestepping the politically sensitive issue of loosening marijuana laws even as the idea has gained support of most Americans.

"More than half of U.S. states have legalized cannabis use for some purposes. Lawmakers have proposed decriminalizing marijuana, which would entail reduced penalties for users, and have pushed for giving the industry access to banking services. Those promoting changes include a diverse range of political figures, from former Republican House Speaker John Boehner to progressive Rep. Alexandria Ocasio-Cortez (D., N.Y.).

...

"More than two in three Americans support legalizing marijuana, according to a 2021 Gallup poll. That is up from a decade ago, when half of Americans were in favor, Gallup found.

...

"The House has previously passed legislation to decriminalize it and this month approved provisions to give cannabis companies access to the banking system, as marijuana lobbying has soared in what has become a multibillion-dollar industry.

"But with many Republicans and some Democrats opposed, odds of Senate passage are slim given filibuster rules requiring 60 votes."

Friday, January 21, 2022

Black market marijuana coexists with legal marijuana in Oregon, and competes with it in California

In a growing number of U.S. states, it is legal to grow and sell marijuana. But the price remains highest in the states where it is illegal, and so black markets persist alongside legal markets. 

Politico has the story:

‘Talk About Clusterf---’: Why Legal Weed Didn’t Kill Oregon’s Black Market. Legalization was supposed to take care of the black market. It hasn’t worked out that way.  By NATALIE FERTIG

"Over the last two years, there’s been such an influx of outlaw farmers that southern Oregon now rivals California’s notorious Emerald Triangle as a national center of illegal weed cultivation. Even though marijuana cultivation has been legal in Oregon since 2014, Jackson County Sheriff Nate Sickler says there could be up to 1,000 illegal operations in a region of more than 4,000 square miles. The Oregon Liquor and Cannabis Commission, which oversees the state’s $1.2 billion legal cannabis industry, estimates the number of illicit operations is double that.

...

"What is happening in the woods of the southern Oregon represents one of the most confounding paradoxes of the legalized marijuana movement: States with some of the largest legal markets are also dealing with rampant illegal production — and the problem is getting worse. Oklahoma, where licenses to cultivate medical marijuana are some of the easiest to get in the nation, has conducted more than five dozen raids on illicit grows since last April. In California, meanwhile, most of the state continues to purchase cannabis from unlicensed sources — straining legal operators already struggling with the state’s high taxes and fees.

...

"One of the underlying promises for legalizing cannabis was that legalization would make the illegal drug trade, with all its attendant problems of violent crime and money laundering, disappear. But 25 years into the legalization movement, as 36 states have adopted some form of legalized marijuana, the black market is booming across the country. Legal states such as Oregon and California — which have been supplying the nation for nigh on 60 years — are still furnishing the majority of America’s illegal weed.

...

"Oregon’s weed is some of the cheapest in the nation, and Oregonians predominantly purchase weed from licensed dispensaries. Economist Beau Whitney estimates that 80-85 percent of the state’s demand is met by the legal market. But most of the illicit weed grown in southern Oregon is leaving the state, heading to places where legal weed is still not available for purchase such as New York or Pennsylvania — or where the legal price is still very high, like Chicago and Los Angeles. In Illinois, which legalized medical marijuana in 2013, only about a third of the demand for cannabis is satisfied by legal dispensaries, according to Whitney. Differences in tax rate and regulations plays the major role in differences from state to state, Whitney explains.

*************

And in California it appears that high taxes on the legal market allow the black market to exist alongside. NBC has the story:

Craft cannabis industry in California is 'on the brink of collapse,' advocates say. Small cannabis growers and operators say the state's hefty taxes are shutting them out despite promises to expand the industry and make it more inclusive.  By Alicia Victoria Lozano

"Last month, marijuana companies warned Newsom in a letter that immediate tax cuts and a rapid expansion of retail outlets were needed to steady an increasingly unstable marketplace shaken by illicit dealers and growers.

"More than two dozen cannabis executives and legalization advocates signed the letter after years of complaints that the heavily taxed industry is unable to compete with the widespread illegal economy, which offers far lower consumer prices and has double or triple the sales of the legal market."


Saturday, January 8, 2022

Legally fragmented markets for marijuana create unusual alliances

 Who will be most in favor of eliminating the federal ban on marijuana in the US?  Not necessarily growers and sellers in the many states in which marijuana can legally be grown and sold.  There are some advantages to being in a legal market that is illegal elsewhere (and not just because of the possibility of illegally selling at the higher prices that black markets command...)

The WSJ has this story:

Cannabis Overhaul in Washington Is Only Getting Harder. Legalization agenda could be complicated by states that want to defend their nascent marijuana industries and associated tax revenues  By Carol Ryan

"To date, 18 states have legal adult-use cannabis industries, according to the latest tally from the Marijuana Policy Project. As the drug can’t be transported across state borders while it is still federally outlawed, anything that is smoked within a state has to be grown and sold locally. These independent fiefs, which are growing bigger every month, would be disrupted by national legalization.

"One of the biggest concerns is what happens when cannabis can be traded across the country. More mature marijuana markets such as California and Oregon see interstate commerce as an opportunity to get excess stock off their hands. For recent converts such as New York and New Jersey, a gush of cheap outside inventory would be a threat to their nascent industries. This is particularly sensitive for small, minority-owned cannabis businesses that are being given priority for licenses but would be rapidly undercut.

"States also want to protect the tax windfall that cannabis creates. Illinois has collected more taxes from cannabis than liquor every month since February, according to the Illinois Department of Revenue. Since 2014, when legal sales began in Colorado and Washington, cannabis has raised $7.9 billion in taxes for states, according to the Marijuana Policy Project. Sales levies should stay with local markets, but those associated with production could be hard for certain states to hold on to if the drug is federally legal. Cultivation is likely to shift to warm and low-cost states where cannabis can be grown cheaply outdoors."

***************

And then there's Oklahoma. The NY Times has the story:

How Oklahoma Became a Marijuana Boom StateWeed entrepreneurs have poured into Oklahoma from across the United States, propelled by low start-up costs and relaxed rules.  By Simon Romero

"Ever since the state legalized medical marijuana three years ago, Oklahoma has become one of the easiest places in the United States to launch a weed business. The state now boasts more retail cannabis stores than Colorado, Oregon and Washington combined. In October, it eclipsed California as the state with the largest number of licensed cannabis farms, which now number more than 9,000, despite a population only a tenth of California’s.

"The growth is all the more remarkable given that the state has not legalized recreational use of marijuana. But with fairly lax rules on who can obtain a medical card, about 10 percent of Oklahoma’s nearly four million residents have one, by far the most of any other state.

...

"That unfettered growth has pitted legacy ranchers and farmers against this new breed of growers. Groups representing ranchers, farmers, sheriffs and crop dusters recently joined forces to call for a moratorium on new licenses. They cited climbing prices for land, illicit farms and strains on rural water and electricity supplies as among the reasons. In some parts, new indoor farms are using hundreds of thousands of gallons of water.

...

"But unlike local businesses, where the customers are typically residents, critics assert that growers in Oklahoma are producing far more marijuana than can possibly be sold in the state and are feeding illicit markets around the country.

"Because of lower costs for licensing, labor and land, growers can produce cannabis for as little as $100 a pound, and then turn around and sell that for between $3,500 to $4,000 a pound in California or New York, said Mark Woodward, a spokesman for the Oklahoma Bureau of Narcotics.

Tuesday, November 9, 2021

Marijuana black markets are coexisting with (poorly designed, over-regulated, highly taxed) legal markets in California

 The Guardian has the story:

California legalized weed five years ago. Why is the illicit market still thriving? by Amanda Chicago Lewis

"Voters passed a law in November 2016 making recreational marijuana legal. But today, the vast majority of the market remains underground – about 80-90% of it, according to experts.

"Because that 2016 law, known as Proposition 64, gave municipalities the power to ban weed as they see fit, the majority of cities and counties still don’t allow the sale of cannabis, inhibiting the growth of the legal market.

"In the places that do allow pot shops and grows, business owners say high taxes, the limited availability of licenses, and expensive regulatory costs have put the legal market out of reach. 

...

"The story of California’s legal weed chaos dates back to 1996, when voters passed a law allowing medical marijuana. At the time, Bay Area Aids activists saw the way pot relieved pain and stimulated hunger among their emaciated and desperately ill friends. That led to a grassroots campaign to get Proposition 215, a measure legalizing the medical use of cannabis, on the California ballot.

"However, Prop 215 only allowed doctors to recommend that patients and their caregivers grow their own weed. Essentially, it legalized a commodity without legalizing the business side of it.

"For the next 20 years, a laissez-faire, gray market for medical marijuana flourished and became entrenched. With doctors’ recommendations for medical marijuana easy and cheap to come by, cannabis entrepreneurs practiced a lucrative form of civil disobedience, opening dispensaries, manufacturing edibles and growing acres of plants that brought in enough money to offset intermittent law enforcement crackdowns. The industry developed protocols to get a business back up and running right after a raid, such as keeping cash offsite and obscuring ownership through a series of management companies.

"If you could withstand the legal uncertainty, it was a good time to make money in marijuana. By 2010, the city of Los Angeles had about 2,000 pot shops illegally selling cannabis. Statewide, the total illicit market surged, causing Mexican cartels to either stop growing weed or to relocate their grows to California.

...

"For a marijuana enterprise today, becoming legal has often meant sacrificing a good deal of profit. Businesses frequently pay an effective tax rate of 70%, in part because they are breaking federal law and therefore aren’t able to take tax deductions, but also because politicians see the industry as a source of tax revenue and set higher rates.

...

"But the longer we allow cannabis to remain state-legal and federally illegal, the harder it will be to fix. Though botching weed legalization sounds like a trivial issue, it intersects with many of the issues that are fundamental to our lives, from criminal justice to public health, gang violence to economic inequality, the opioid crisis to the wellness craze. Cannabis is the second-most-valuable crop in the country, after corn and ahead of soybeans. It’s the most common reason for arrest in America. And despite marijuana’s dubious reputation, research has shown the plant “may have therapeutic potential in almost all diseases affecting humans”.

Thursday, October 28, 2021

Luxembourg combats cannabis black markets by legalizing home cultivation

 Luxembourg is combatting cannabis black markets by ending the prohibition on home cultivation.

The Guardian has the story:

Luxembourg first in Europe to legalise growing and using cannabis. Relaxation is part of government rethink designed to keep users away from illegal market

"Adults in Luxembourg will be permitted to grow up to four cannabis plants in their homes or gardens under laws that will make it the first country in Europe to legalise production and consumption of the drug.

"The announcement on Friday by Luxembourg’s government was said to deliver fundamental changes in the country’s approach to recreational cannabis use and cultivation in light of the failure of prohibition to deter use.

...

"Justice minister Sam Tanson described the change to the law on domestic production and consumption as a first step.

...

“We want to start by allowing people to grow it at home. The idea is that a consumer is not in an illegal situation if he consumes cannabis and that we don’t support the whole illegal chain from production to transportation to selling where there is a lot of misery attached. We want to do everything we can to get more and more away from the illegal black market.

Monday, July 26, 2021

Does legal marijuana lead to the use of more dangerous drugs, or increase crime?

 It appears that the short answer is "No," according to this recent NBER working paper

Is Recreational Marijuana a Gateway to Harder Drug Use and Crime?  by Joseph J. Sabia, Dhaval M. Dave, Fawaz Alotaibi & Daniel I. Rees

WORKING PAPER 29038, DOI 10.3386/w29038,  July 2021

Recreational marijuana laws (RMLs), which legalize the possession of small quantities of marijuana for recreational use, have been adopted by 18 states and the District of Columbia. Opponents argue that RML-induced increases in marijuana consumption will serve as a “gateway” to harder drug use and crime. Using data covering the period 2000-2019 from a variety of national sources (the National Survey of Drug Use and Health, the Uniform Crime Reports, the National Vital Statistics System, and the Treatment Episode Data Set) this study is the first to comprehensively examine the effects of legalizing recreational marijuana on hard drug use, arrests, drug overdose deaths, suicides, and treatment admissions. Our analyses show that RMLs increase adult marijuana use and reduce drug-related arrests over an average post-legalization window of three to four years. There is little evidence to suggest that RML-induced increases in marijuana consumption encourage the use of harder substances or violent criminal activity.

Tuesday, April 27, 2021

Cannabis in Canada

It's not so easy for a heavily regulated legal market to compete with an unregulated black market.  The NY Times has the story:

After ‘Green Rush,’ Canada’s Legal Pot Suppliers Are Stumbling. Most marijuana producers in Canada are still reporting staggering losses two and a half years after legalization.  By Ian Austen

"When Prime Minister Justin Trudeau’s government’s legalized marijuana in 2018, a primary goal was to create a more equitable justice system — not a major new business sector.

"Investors, however, thought otherwise, and in the time leading up to legalization, a “green rush” swept the Toronto Stock Exchange. Money poured into companies starting up to service not only the Canadian market, but also eyeing other opportunities, particularly the U.S. market, where more states were embracing legalization.

...

"Even with a slight recovery propelled by the spreading legalization in the United States — New York legalized marijuana last month, and voters in four states backed legalization in November — one marijuana stock index is still down about 70 percent from its peak in 2018.

"Two and a half years after legalization, most marijuana producers in Canada are still reporting staggering losses.

"And a major new competitor is looming: Mexico’s lawmakers legalized recreational pot use last month. So the business climate for Canada’s growers could become even more challenging."

Monday, April 26, 2021

Cross border sales of cannabis between Oregon (legal) and Idaho (illegal)

 It's hard to effectively ban a transaction in one jurisdiction if it is legal just across the border.  The patchwork of marijuana laws in the U.S. makes this clear.

Politico has the story:

Border weed: How the hometown of tater tots became a cannabis capital. Ontario, Ore., has nine dispensaries for 11,000 residents. But most of their customers are coming from Idaho.  By NATALIE FERTIG

"Marijuana remains illegal in Idaho. In fact, it is one of only two states left in the nation that bans all forms of cannabis, including hemp and CBD products. But drive across the border into Oregon, and Idahoans can purchase every conceivable type of cannabis product, from THC infused artisan grape taffy to 1.5 gram pre-rolled joints.

"In the year and a half since Ontario began allowing weed sales, nine dispensaries have opened. It’s estimated that the city will generate $120 to $130 million in annual sales when the cannabis industry is fully up and running — that’s more than 10 percent of Oregon’s sales in 2020.

...

"Ontario is just one of dozens of border communities around the country that have been transformed into marijuana boom towns thanks to the country’s patchwork quilt of cannabis laws. Eighteen states now embrace full legalization, and all of them but California and Alaska share a border with at least one state where cannabis is illegal. Spokane, Wash., Sauget, Ill., Trinidad, Colo., and Great Barrington, Mass., are just a few towns where marijuana entrepreneurs have found fertile ground in these border regions between legal and non-legal states.

...

"People are willing to travel far for legal cannabis, even if illicit products are available in their hometown. Michelle drives four hours from southeastern Idaho every few months to visit Hotbox in Ontario. She said it’s worth the trip for the peace of mind.

“The problem is, you don't know what you're getting [in the illicit market],” said 46-year-old Michelle — who asked that her last name be left out because she planned to take products back across the border into Idaho. There’s less risk in consuming the Oregon products, she added, because you know “it didn't get transported in a gas tank.”

Sunday, April 4, 2021

Marijuana bans continue to fall: NY and New Mexico, with more to come

 The Washington Post has the story:

New Mexico set to legalize marijuana as New York ends its pot prohibition   By Katie Shepherd

"Capping off a momentous week for legal cannabis, state legislators in New Mexico on Wednesday voted to allow recreational use of the drug — a vote that came hours after New York’s governor signed a bill legalizing marijuana.

"New Mexico’s Cannabis Regulation Act will eliminate criminal penalties for possession and use of marijuana for adults over 21 years old beginning in 2022 and create a framework for licensing sellers and taxing drug sales at up to 20 percent.

...

"The move sets up New Mexico to join 15 other states that have fully decriminalized the drug and came on the same day that Virginia Gov. Ralph Northam (D) asked state legislators to speed up his state’s legalization to allow adults to start using the drug as early as July.

...

"Despite widespread changes on the state level, marijuana remains illegal under federal laws. The discrepancy causes obstacles for the cannabis industry, which has been locked out of traditional banking arrangements and interstate commerce. Even in states where cannabis use is legal, some government employees have been told not to use the drug or face termination."

Saturday, December 5, 2020

Marijuana in the House (but not yet in the Senate)

 The NY Times has the story:

House Passes Landmark Bill Decriminalizing Marijuana  By Catie Edmondson, Dec. 4, 2020

"The House passed sweeping legislation that would decriminalize marijuana and expunge nonviolent marijuana-related convictions. The measure is all but doomed in the Republican-led Senate.

"The 228-164 vote to approve the measure was bipartisan, and it was the first time either chamber of Congress had ever endorsed the legalization of cannabis. The bill would remove the drug from the Controlled Substances Act and authorize a 5 percent tax on marijuana that would fund community and small business grant programs to help those most impacted by the criminalization of marijuana.

...

"The legislation intends to give states power and incentives to enact their own reforms, and its passage came as states around the county, including some conservative-leaning ones, have become increasingly open to decriminalizing marijuana amid a growing consensus that the war on drugs has been destructive. Fifteen states have legalized recreational cannabis, and voters in five states last month voted on legalization issues, bringing the number of states where medical marijuana is legal to 35."

Friday, November 6, 2020

New Zealand votes to legalise euthanasia but not marijuana

 The Guardian has the story:

New Zealand votes to legalise euthanasia in referendum--Results must be enacted by the new Labour government by November 2021, but second referendum on legalising cannabis fails to find support  by Eleanor Ainge Roy 

"New Zealanders have voted to legalise euthanasia for those with a terminal illness, in a victory for campaigners who say people suffering extreme pain should be given a choice over how and when to bring their life to a close.

"The decision on whether to legalise euthanasia appeared as a referendum question on the 17 October general election ballot paper, alongside a second referendum question on whether to legalise cannabis – which did not succeed, according to preliminary results.

"The results of the euthanasia referendum are binding and will see the act come into effect 12 months from the final results – on 6 November 2021. Assisted dying will be administered by the Ministry of Health.

...

"The vote makes New Zealand only the seventh country in the world to legalise assisted dying."