Marijuana Industry

In the wake of the legalization victories in Colorado and Washington last November, and medical marijuana in Massachusetts, activists are talking about where the next marijuana reform campaigns should be waged and what they should attempt to do. One document that has gotten some discussion is from the Marijuana Policy Project (MPP), listing seven states where it would be working to legalize marijuana next. The list includes possible tax and regulate initiatives in Alaska, California, Maine, Massachusetts, Nevada and Oregon.

Absent from the list is one jurisdiction that would also appear ripe for a legalization initiative: Washington, DC. The nation's capital has several things going for it.

DC has the initiative process, and activists used it to great effect in passing medical marijuana with 69% of the vote in 1998 (even if, thanks to Congressional action and the glacial pace of the DC government it has taken 15 years to implement it). The District is also overwhelmingly liberal; Obama won with 91% of the vote in November.

Unlike large states like California, the District is small in size and population and would not require a huge expenditure of resources to gather enough signatures to make the ballot. Similarly, it is a relatively small media market, meaning TV advertising would be in reach of all but the most ill-funded campaign.

Last, but not least, it is the nation's capital. A successful initiative in Washington, DC, would reverberate not only around the country, but around the world, particularly an initiative that enacted legalization..

MPP may not have included the District in its "to do" list, but that doesn't mean the organization isn't watching, said the organization's director of governmental relations, Steve Fox.

"[DC] is being discussed," said Fox. "When you look at the places where an initiative would be possible, the District stands out. One reason we didn't mention it is that it’s a jurisdiction where we're not necessarily looking at tax and regulate, but there are options to do less, such as a decriminalization initiative."

The problem of congressional interference is cause for concern, though, Fox said.

"DC certainly is ripe for some kind of reform, but we also have to be cognizant of the fact that it is unique in that it has congressional oversight," Fox said. "With the medical marijuana system finally getting off the ground, we don't necessarily want to ruffle any feathers by attempting to do anything too bold. When the medical marijuana initiative passed in 1998 and Congress wanted to mess with it, they ended up having a provision something along the lines of DC not being able to spend any funds to lower or reduce penalties related to any schedule I or II substances. If Congress thought DC was going too far too fast, it could block DC from spending any money for reforms of Schedule I substances."

Doing DC would be tempting, said Fox, but again worried about moving too fast for Congress.

"There would certainly be value in passing something in the District," he mused. "You would be making a statement that a strongly Democratic-leaning jurisdiction thinks marijuana should be regulated like alcohol, but that might not be big news to a lot of people. The real impact and real value would be to actually have a regulated market in operation, and members of Congress could see that the sky isn't falling. We've waited 15 years to show Congress you can have medical marijuana dispensaries up and running and serving patients and the public good, and we want to make sure Congress has a chance to absorb that reality."

"As a longtime DC resident, I've always thought of the District as low-hanging fruit," said Allen St. Pierre, executive director of NORML, who expressed interest in an initiative. "The media market is limited, and there is an overwhelmingly liberal population. But we don't even have a NORML chapter here, and I see little impetus in the reform community."

But things are happening in the District, according to long-time activist Adam Eidinger, co-owner of the Capitol Hemp Emporium until it was forced to close under law enforcement pressure last year. Eidinger told the Chronicle that both legalization and medical marijuana activists were meeting to plot potential courses of action, including either a legalization initiative or an initiative to expand medical marijuana rights.

"We're thinking 2014," said Eidinger, "but while I think this is a no-brainer, it has to be poll tested. We're not going to go for it if it polls less than 65%. "We will poll medical as well as legalization and see what the difference is. I know some of our friends wouldn't support legalization, but would support a patients' rights initiative that would give them the right to grow limited amounts, more rights to use outside the home, and more flexibility on dispensaries. This isn't California; DC is super strict on medical marijuana, and the patients here are going to be AIDS patients and cancer sufferers."

Test polling will happen soon, he said.

Eidinger, who also runs a media consulting firm, also saw the potential for a media coup. "This is a great place to do it for the public relations value," he said.

MPP's Fox said the group was looking for a few good people.

"As MPP did in Colorado and with medical marijuana in Arkansas, what we look for are committed and competent people on the ground who are able to do this kind of work," Fox said. "We're looking to support good people. I coordinate ballot initiatives, and I'm in DC, and so are other activists. I would be happy to work with local activists to craft something."

"The symbolism alone would probably be worth it," said St. Pierre. "It probably wouldn't cost more than $15,000 or $20,000 to get it done. This is a low cost project with a huge potential upside."

If recent comments from DC elected officials are any indication, further marijuana law reform is only going to come through the initiative process. While one city council candidate, Paul Zuckerberg, is running on a platform that includes decriminalization, the mayor and other top officials have made clear they are not interested in going further.

"I'm not prepared at this stage to support the decriminalization of any drugs at this point," Mayor Vincent Gray said earlier this month. "Look at the most abused substance in our society, and it's probably alcohol. People do abuse, irrespective of whether it's legal or not."

Police Chief Cathy Lanier also expressed unease, although her comments did suggest she drew a line between marijuana and other drugs.

"I know the legalization of marijuana is in large debate around the country, whether it be medical marijuana or just straight-out legalization of marijuana. That's one issue," Lanier said. "But I think when you talk about some of these other drugs that are extremely dangerous -- PCP, for example -- to say that we should decriminalize that and just allow people to have that without any penalty in the community would just be devastating."

With the DC council unlikely to advance reform, that leaves the field open to potential initiative campaigns. The District is most likely ripe for the picking, if anyone decides to go that route.

Hawaii House Speaker Joseph Souki (D-8) last Friday introduced a bill to legalize the possession of marijuana by adults and create a system of taxed and regulated legal marijuana commerce. The measure, House Bill 150, would allow people 21 and over to possess up to an ounce and grow an as yet unspecified number of plants in a secure location.

The bill passed its first reading last Friday, but has yet to be sent to a committee. The 2013 legislative session began Tuesday.

"Regulating and taxing marijuana similarly to alcohol takes marijuana sales out of the hands of criminals and puts them behind the counter in legitimate businesses that will generate significant new revenue for Hawaii," said Mason Tvert, director of communications at the Marijuana Policy Project, which is working on passage of the bill. "Law enforcement resources should be focused on preventing and responding to serious crimes rather than enforcing antiquated marijuana prohibition laws."

In addition to allowing adult possession and cultivation, the bill would also authorize the state to license marijuana retail stores, cultivation facilities, product manufacturing facilities, and testing facilities. Public pot smoking, driving under the influence, and use by individuals under the age of 21 would remain illegal.

The bill introduction comes on the heels of the release earlier this month of a QMark Research Poll that showed support for legalization at 57%. That poll was sponsored by the Drug Policy Action Group, a sister group of the Drug Policy Forum of Hawaii, and the ACLU of Hawaii, suggesting that local as well as national reform groups are pushing the bill.

In the wake of the legalization victories in Colorado and Washington last November, at least a half dozen states are expected to entertain legalization bills. Hawaii is first out the gate; the others are Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

A poll released last Thursday shows 57% of Hawaiians favor the idea of taxing and regulating marijuana. That's a startling 20% increase in support in just seven years -- a 2005 poll by the same group asking the same question had only 37% support.

The QMark Research poll was conducted for the Drug Policy Action Group and consisted of telephone interviews with 603 respondents. It has a margin of error of +/- 4.07%.

The poll showed 45% strongly supporting tax and regulate, with another 12% saying they had "somewhat strong support." Only 40% opposed legalization, a figure that has declined by 20 points since the 2005 poll.

The poll also found strong support for decriminalization (58%), for medical marijuana dispensaries (78%), and for the medical marijuana law passed by the legislature in 2000 (81%). The law allows patients to use marijuana, but makes no provision for them to obtain it except by growing it.

The poll numbers were released at a press conference conducted by the Drug Policy Action Group, a sister organization to the Drug Policy Forum of Hawaii, and the ACLU of Hawaii. Also introduced at the press conference was a study (available at the poll link above) by University of Hawaii economist David Nixon on the economic impact of marijuana law enforcement in the state.

Nixon found that Hawaii spends $9 million a year on marijuana law enforcement and foregoes $11 million a year in potential revenues under legalization. He also found that marijuana arrests are increasing in the state, with possession arrests up nearly 50% since 2004 and distribution arrests almost doubling.

"From the survey findings, it's clear that Hawaii voters are open to reconsidering local marijuana laws," said the Action Group's Pam Lichty. "The data in both of these reports will help our communities craft more effective, less costly approaches for the future. The Drug Policy Action Group, the ACLU of Hawaii, and our allies will advocate for the policy reforms that people in Hawaii want."

"In Hawaii as across the nation, arrests for marijuana possession are one of the most common ways that individuals get caught up in the criminal justice system, at great social and economic cost," said Vanessa Chong, executive director of the ACLU of Hawaii. "These studies provide important, updated facts for the Hawaii community as we consider new directions."

DEA agents raided three Los Angeles medical marijuana dispensaries Wednesday afternoon, according to a preliminary report from Americans for Safe Access California director Don Duncan. More details were not forthcoming by press time.

According to Duncan, the DEA struck LA Wonderland on West Pico Boulevard, the Downtown Collective on South Hill St. near downtown, and the Iron Works in Venice.

The federal government has unleashed the DEA on dispensaries under both the Bush and the Obama administrations, although there was a respite between 2009 and late 2011, when the Justice Department had a policy of generally leaving them alone. But that policy shifted again in 2011, and both the DEA and federal prosecutors have been busy going after dispensaries since then. One Southern California dispensary operator, Aaron Sandusky, was sentenced to 10 years in federal prison just this Monday.

The policy has not been limited to California. While hundreds of California dispensaries have been forced out of business by raids, asset forfeiture threats and/or prosecutions, so have dozens of dispensaries in Colorado, and a series of statewide raids in Montana in the spring of 2011 virtually wiped out that state's dispensary scene.

The LA DEA raids come as the city grapples over what to do about dispensaries. An effort by the city council to shut them all down was blocked by popular opposition. Now, the council, and perhaps city voters, will have to consider two different municipal initiatives, one of which would limit the number of dispensaries in the city to about 100, the other of which would allow most existing dispensaries to stay open.