Drug War Chronicle #976 - June 8, 2017

The Marijuana Economy Dwarfs Ten of America's Most Popular Food and Drink Staples

This article was produced in collaboration with AlterNet and first appeared here.

Marijuana is legal in eight states and the District of Columbia, and medical marijuana is legal in nearly 30 (although often under quite restrictive regulatory schemes). Between the two, legal weed is generating total annual sales of between $4 billion and $4.5 billion.

But legal marijuana sales are dwarfed by sales in the black market, which according to a recent report in Marijuana Business Daily, accounts for about ten times the size of the legal market, or about $45 billion to $50 billion.

That's still only about half the size of the legal beer and tobacco market, and it's more than it might be when legalization ultimately drops prices, which most observers expect. Nevertheless, it is nothing to sneeze at, and it puts marijuana well ahead of some major American economic sectors. Here are ten products or services already being surpassed by pot, with the first five being smaller than the legal market and the second five being smaller than the estimated overall market, including both licit and illicit markets. Some of these industries could hope for synergistic effects, though.

1. Girl Scout cookies

Thin Mints are the hands-down winner when it comes to Girl Scout cookies, accounting for 25% of all sales, but that's only around $200 million. All told, Americans shelled out $776 million for the treats last year. That's a lot of cookies, but that's less than one-quarter of the size of the legal pot market.

2. Tequila

Shots with lime and salt, margaritas, Tequila sunrises... Americans gulp down a huge volume of the Mexican agave concoction every year, but the $2.3 billion in annual tequila sales is only half the size of the legal marijuana market. Of course, tequila is only a fraction of the alcohol industry, which still rocks compared to weed. Beer sales alone are more than $100 billion a year.

3. Music streaming services

Who doesn't love music and want it handy on all their devices? Music streaming services such as Spotify, Pandora, Apple Music, and Amazon Music Unlimited are big, big, big, but at about $2.5 billion in annual sales, only half as big as legal weed.

4. Erectile dysfunction medication

Viagra and Cialis can't stand up against legal marijuana, either. There's a huge potential market out there, with an estimated 52% of men experiencing erectile dysfunction at some point in their lives, but annual sales for the two drugs combined is still only $2.7 billion.

5. Frozen pizza

From Tombstone to California Pizza Kitchen, take-home store-bought frozen pizzas are a traditional favorite of millions of Americans. And now, we're finally reaching sales parity with legal pot. Frozen pizzas account for $4.4 billion in sales each year, very near the amount spend on legally purchased marijuana.

6. Ice cream

Retail ice cream sales come to $5.1 billion a year, just barely exceeding the high-end estimate for legal pot sales, but barely one-tenth the size of the estimated black and legal marijuana markets. That's still a lot of scoops, though.

7. Movie tickets

Let's go to the movies! Even though movie tickets aren't exactly cheap, people still pay for that theatrical cinematic experience to the tune of $11.1 billion in ticket sales per year (not counting snacks). That's only about a quarter of the size of the overall pot market. Being stoned on weed could make some of those lame loser movies more palatable.

8. The NFL

Pro football is a monster, dominating sports TV, radio, and internet for half the year and generating $13.3 billion in annual revenues. At the rate legal marijuana markets are expanding (just wait for California!), legal pot sales alone could surpass NFL revenues within just a few years, and the total estimated market is more than three times what the league is bringing in.

9. Gambling

Pot is bigger than Vegas? Yep. And Reno and Atlantic City and all those casinos everywhere combined. Make no mistake -- gambling is big business, with Americans burning through $34.6 billion a year, according to the American Gambling Association, but Americans are burning through even more weed, and we'd wager that's going to go up, too.

10. Daycare for kids

Daycare for kids isn't exactly inexpensive and it's an issue for millions of American working families. According to IBISWorld's market research, that's a $48 billion hit on the family budget. It's an awful lot of money. It's also more or less the amount Americans are spending on pot right now.

back to top

Medical Marijuana Update

The Veterans Administration secretary hints at openness to medical marijuana for PTSD, Arkansas regulators are ready to accept applications, Florida lawmakers are ready to move forward on implementing the will of the voters, and more.

National

Last Wednesday, the VA secretary said he's open to medical marijuana for PTSD. Department of Veterans Affairs Secretary David Shulkin said he is open to expanding the use of medical marijuana to treat soldiers with post-traumatic stress disorder in states where it is legal. There may be some evidence that this is beginning to be helpful and we're interested in looking at that and learning from that," Shulkin said during a press conference. "Right now, federal law does not prevent us at VA to look at that as an option for veterans... I believe that everything that could help veterans should be debated by Congress and by medical experts and we will implement that law."

Arkansas

On Tuesday, tstate regulators finalized the process for medical marijuana applications. The state Medical Marijuana Commission finalized the process for accepting applications for medical marijuana growers and sellers. The move comes after the commission developed a more detailed scoring system for ranking applicants. The application period will open June 30 and go on for 90 days. The commission will distribute 32 dispensary licenses and five cultivation facility licenses.

Florida

Last Friday, the governor vetoed medical marijuana research projects. Gov. Rick Scott (R) used his line-item veto power to kill three line items that would have provided more than $3 million dollars to the Moffitt Cancer Center and the University of Florida for medical marijuana research. In his veto message, Scott wrote that the institutions had plenty of money to fund the research on their own.

On Wednesday, lawmakers reached agreement on implementing medical marijuana. Lawmakers came to agreement on how to implement the state's voter-approved medical law. Under the agreement, 10 new growers will be licensed this year, with five licenses going to previous applicants, five going to new applicants, and at least one reserved for a black farmer. The state current licenses only seven commercial grows. The agreement also caps the number of dispensaries each grower can operate at 25.

Oregon

Last Friday, a bill to let medical growers sell limited amounts on the recreational market advanced. A bill that seeks to reshape the state's medical marijuana program so it can coexist with legal recreational marijuana is advancing. House Bill 2198, which would let medical growers sell up to 20 pounds in the recreational market in a bid to stay viable, passed the Joint Committee on Marijuana Regulation last Friday and is now before Joint Committee on Ways and Means.

[For extensive information about the medical marijuana debate, presented in a neutral format, visit MedicalMarijuana.ProCon.org.]

back to top

This Week's Corrupt Cops Stories

A North Dakota sheriff was letting meth suborn him, a Florida sheriff's deputy was tweaked on steroids, and more. Let's get to it:

In Fessenden, North Dakota, the former Wells County sheriff was arrested last Tuesday on bribery and methamphetamine charges. Johnny Zip Lawson, 41, is accused of consuming meth provided by a local man in exchange for not investigating break-ins and burglaries in the area that may have been committed by that man. He is charged with conspiracy to deliver a controlled substance, methamphetamine, a Class A felony, and bribery-unlawful influence of public servants, a Class C felony. He was also charged with three Class A misdemeanors: providing false information to a law enforcement officer, neglect of duty and ingesting a controlled substance, methamphetamine.

In Bridgeport, Connecticut, a Fairfield police detective was arrested last Friday for allegedly stealing thousands of dollars' worth of heroin and Oxycontin from the department's evidence room. Detective Stephen Rilling, 40, is accused of signing out heroin, Oxycontin, and cocaine for "testing," but consuming the drugs himself. He is charged with third-degree computer crime, second-degree larceny by defrauding a public community, possession of narcotics, second-degree forgery, tampering with evidence and false entry by an officer or agent of a public community.

In Daytona Beach, Florida, a Volusia County sheriff's deputy was arrested last Friday on accusations that he stole money and a synthetic steroid from a driver during a traffic stop. John Braman, 24, went down after body-camera video showed him taking money out of the driver's wallet. Prosecutors said body camera video showed at least two more cases of Braman ripping off motorists and that investigators found steroids and syringes in Braman's car. He is charged with theft, official misconduct, and possession of a controlled substance.

back to top

Chronicle AM: NH Decrim Goes to Governor, VA Secretary Open to MedMJ for PTSD, More... (6/1/2017)

A decriminalization bill is heading to the New Hampshire governor's desk, Vermont's governor holds out hope for a legalization bill, Trump's opioid addiction commission will meet in a couple of weeks, and more.

Marijuana Policy

Nevada Pot Shop Rollout Could Be Delayed By Lawsuit. A state district court judge on Tuesday issued a temporary restraining order prohibiting the state Department of Taxation from enforcing a Wednesday deadline for license applications for the state's program to get legal marijuana sales off to an early start. The order came in response to a lawsuit from the Independent Alcohol Distributors of Nevada, who complain that the ballot measure that legalized weed in the state gave liquor wholesalers exclusive rights to distribution licenses for the first 18 months of sales. Distributors are those responsible for transporting marijuana from grows and production facilities to dispensaries.

New Hampshire Legislature Gives Final Approval to Decriminalization Bill. The House on Thursday voted to accept Senate changes to House Bill 640, which will decriminalize the possession of up to three-quarters of an ounce of marijuana. The bill now goes to the desk of Gov. Chris Sununu (R) is expected to sign the bill into law within the next couple of weeks.

North Dakota Legalization Signature Drive Will Begin in Fall. Proponents of a 2018 legalization initiative campaign say they will begin a signature gathering campaign in the fall, once students return to classes. A core group of individuals is working on a draft to be submitted to the secretary of state's office later this summer.

Vermont Governor Says Talks Continue on Marijuana Legalization Bill. Gov. Phil Scott (R) said Wednesday he thought it was still possible to pass a marijuana legalization bill during a two-day veto session set for later this month. Republican legislative leaders have said they wouldn't allow a parliamentary maneuver necessary to pass a revised legalization bill, but Scott said that if his public safety concerns are addressed, he could reach out to GOP leaders.

Medical Marijuana

VA Secretary Says He's Open to Medical Marijuana for PTSD. Department of Veterans Affairs Secretary David Shulkin on Wednesday said he is open to expanding the use of medical marijuana to treat soldiers with post-traumatic stress disorder in states where it is legal. "There may be some evidence that this is beginning to be helpful and we're interested in looking at that and learning from that," Shulkin said during a press conference. "Right now, federal law does not prevent us at VA to look at that as an option for veterans... I believe that everything that could help veterans should be debated by Congress and by medical experts and we will implement that law."

Drug Policy

Trump Addiction Commission Set to Meet June 16. The Office of National Drug Control Policy (ONDCP -- the drug czar's office) has announced that the President's Commission on Combating Drug Addiction and the Opioid Crisis will hold an inaugural meeting on June 16. The commission, which is loaded with drug policy conservatives, is charging with providing "advice and recommendations for the President regarding drug issues." The meeting will be at 12:30pm ET and will be available for public viewing via live stream.

International

Peru Takes First Casualties in Offensive in Key Coca Growing Region. A week after Peru announced that security forces were entering the region known as the Valleys of the Apurimac, Ene, and Mantaro Rivers (VRAEM) in a bid to suppress the coca crop in the country's largest coca growing region, two policemen were killed in an ambush by presumed drug traffickers Wednesday. Police said they were killed in the Luricocha district, where traffickers have allegedly allied themselves with remnants of the Shining Path guerrillas.

Canada Tories Want to Remove Home Grow Provisions From Legalization Bill. Conservatives in parliament are criticizing a provision in the legalization bill that would allow adults to grow up to four marijuana plants per household. "Is there any easier way to get marijuana than if your parents and everybody have got plants in the kitchen?" Tory justice critic Rob Nicholson, a former attorney general, asked in a speech to the House. Another Tory MP, Marilyn Gladu, warned that children could eat the plants. "Kids eat plants all the time because their parents do not put them up in the cupboard,” she said, ignorant of the fact that THC in marijuana plants must be heated in order to convert non-psychoactive THCA to THC, the stuff that gets people high.

back to top

Chronicle AM: Supreme Court Restricts Forfeiture, Rejects College Drug Test Bid, More... (6/6/17)

The Supreme Court makes two good drug policy-related rulings in one day, the California Assembly approves both a marijuana "sanctuary" bill and a supervised injection site bill, last-ditch efforts to free the weed in Connecticut hit a bump, and more.

Marijuana Policy

California Assembly Passes Marijuana "Sanctuary" Bill. The Assembly has approved Assembly Bill 1578, which would prohibit state resources from being used to help enforce federal marijuana laws that conflict with state law. The bill from Assemblyman Reggie Jones-Sawyer (D-Los Angeles) now goes to the state Senate.

Connecticut Legalization Measure Still Stalled. The last-ditch effort to get legalization passed through the budget process broke down early Monday just minutes before a press conference announcing a compromise was to be announced. Rep. Melissa Ziobron (R-East Haddam) complained that she didn't see a copy of the legalization amendment until just minutes earlier, when she learned that Rep. Josh Elliot (D-Hamden) and other Democrats had been crafting the measure since last Friday. "This isn't about headlines. This isn't about a news conference," Ziobron said. "This is about what's good for the state of Connecticut, and doing it last-minute, doing it in a way that is not bipartisan, is very worrisome and should be for every single person in this state."

Nevada Republicans Kill Governor's Pot Tax Bill. A bill supported by Gov. Brian Sandoval (R) that would have imposed a 10% tax on recreational marijuana sales has been defeated in the Senate after Republicans refused to support it because of unrelated budget issues. The vote was 12-9 in favor, but because it was a budget bill, it needed a two-thirds majority, or 14 votes, to pass.

Medical Marijuana

Florida Governor Uses Line-Item Veto to Kill Medical Marijuana Research Projects. Gov. Rick Scott (R) used his line-item veto power to kill three line items that would have provided more than $3 million dollars to the Moffitt Cancer Center and the University of Florida for medical marijuana research. In his veto message, Scott wrote that the institutions had plenty of money to fund the research on their own.

Asset Forfeiture

Supreme Court Restricts Asset Forfeiture in Drug Cases. In a decision handed down Monday, the US Supreme Court has moved to restrict prosecutorial efforts to seize money or goods from drug defendants. In Honeycutt v. US, brothers Terry and Tony Honeycutt were convicted of selling methamphetamine precursor chemicals, and the feds then swooped in to seize $200,000 of the estimated $270,000 profits from the sales. But they then sought to seize the remaining $70,000 from Terry Honeycutt, who was only an employee at his brother's hardware store, and that crossed a line, the court said. "Congress did not authorize the government to confiscate substitute property from other defendants or coconspirators," Sotomayor said. "It authorized the government to confiscate assets only from the defendant who initially acquired the property and who bears responsibility for its dissipation."

Drug Testing

Supreme Court Refuses to Hear Appeal from Missouri Tech College That Wanted to Drug Test All Students. The US Supreme Court on Monday declined to hear an appeal from the State Technical College of Missouri of an appeals court ruling that its mandatory drug testing policy is unconstitutional when applied to all students. Lower courts had upheld mandatory suspicionless drug testing of only a handful of the school's disciplines where safety was a key element. "This case establishes -- once and for all -- that under the Fourth Amendment, every person has the right to be free from an unreasonable search and seizure, including college students," the ACLU, which filed the class-action lawsuit in 2011, said in a statement Monday.

Harm Reduction

California Assembly Passes Supervised Injection Sites Bill. The Assembly last Thursday approved Assembly Bill 186, which would allow for the provision of supervised drug consumption sites. The pioneering harm reduction measure sponsored by Assemblywoman Susan Talamantes Eggman (D-Stockton) now moves to the state Senate. "California is blazing a new trail toward a policy on drug addiction and abuse that treats it as the medical issue and public health challenge that it is, and not as a moral failing," said Talamantes Eggman. "We are in the midst of an epidemic, and this bill will grant us another tool to fight it -- to provide better access to services like treatment and counseling, to better protect public health and safety, and to save lives."

back to top

Chronicle AM: NYT Says ODs at Record High, WI Gov Advances Medicaid Drug Testing, More... (6/7/17)

Drug overdoses are at an all time high, drug war dinosaur senators want to return to harsh sentencing, Wisconsin's GOP governor moves forward with first in the nation plan to drug test Medicaid applicants, and more.

Marijuana Policy

Connecticut House Debates Legalization, But There is No Vote. The House debated the pros and cons of marijuana legalization Tuesday night, but Democratic leaders then ended debate without any vote. They said a legalization bill would have failed in the House, but the debate could increase the chances of legalization being included as part of a budget bill, although observers describe that prospect as "a long shot."

Wichita Reduces Pot Penalties. The city council voted Tuesday to adopt an ordinance that would reduce the penalty for possession of up to 32 grams (slightly more than an ounce) of marijuana to $50 plus court costs.

ACLU, Drug Policy Alliance Sue Southern California City Over Pot Cultivation Ordinance. The ACLU of California and the Drug Policy Alliance are suing Fontana, claiming that the city's marijuana ordinance conflicts with rights granted to all Californians under Proposition 64. Under Prop. 64, every Californian 21 or older has a right to cultivate up to six marijuana plants for personal use. But the law also says cities or counties can ban outdoor gardens and "reasonably regulate" indoor grows.Fontana -- a city of 200,000 people that sits 50 miles east of Los Angeles -- passed an ordinance in January that requires residents who want to cultivate up to six plants inside their home to first get a $411 permit from the city and not have any drug convictions within the past five years, a policy the groups describe as both illegal and "egregious."

Medical Marijuana

Arkansas Finalizes Process for Medical Marijuana Applications. In a meeting Tuesday, the state Medical Marijuana Commission finalized the process for accepting applications for medical marijuana growers and sellers. The move comes after the commission developed a more detailed scoring system for ranking applicants. The application period will open June 30 and go on for 90 days. The commission will distribute 32 dispensary licenses and five cultivation facility licenses.

Florida Lawmakers Reach Agreement on Implementing Medical Marijuana. Lawmakers on Wednesday came to agreement on how to implement the state's voter-approved medical law. Under the agreement, ten new growers will be licensed this year, with five licenses going to previous applicants, five going to new applicants, and at least one reserved for a black farmer. The state current licenses only seven commercial grows. The agreement also caps the number of dispensaries each grower can operate at 25.

Oregon Bill to Let Medical Growers Sell Up to 20 Pounds in Recreational Market Advances. A bill that seeks to reshape the state's medical marijuana program so it can coexist with legal recreational marijuana is advancing. House Bill 2198, which would let medical growers sell up to 20 pounds in the recreational market in a bid to stay viable, passed the Joint Committee on Marijuana Regulation last week and is now before Joint Committee on Ways and Means.

Heroin and Prescription Opioids

New York Times Investigation Finds Drug Overdose Deaths Reached All-Time High in 2016. The New York Times published on Monday an investigative report that found that drug overdose deaths last year reached an all-time high, suggesting that the country's long-term opioid crisis continues to worsen and that younger age groups in the U.S. are experiencing record numbers of opioid overdoses than in the past. The Times looked at preliminary overdose data for 2016 provided by hundreds of state and local health authorities, concluding: "Drug overdoses are now the leading cause of death among Americans under 50, and all evidence suggests the problem has continued to worsen in 2017." The report estimates that more than 59,000 people died from a drug overdose in 2016 -- an increase of 19% from 2015. The report does not elaborate on which drugs are behind the estimated jump in overdose deaths last year, nor does the report indicate which age groups under 50 saw the largest increase in overdose deaths over prior years.

Senate Drug Warriors Feinstein and Grassley Prepare Bill With Tough New Penalties for Synthetic Opioids. The senior members of the Senate Judiciary Committee are preparing a bill that would create tough new penalties for people caught with synthetic opioids. A draft of the bill would give the attorney general the power to ban all kinds of synthetic drugs and it would impose a 10-year maximum sentence on people caught selling them for a first offense. A second offense would see the sentence double. The bill would penalize people selling drugs at a low level in the US, critics said.

Drug Testing

Wisconsin Submits Request to Drug Test Medicaid Applicants. Gov. Scott Walker (R) on Wednesday officially submitted a request for a federal waiver to become the first state in the country to drug test applicants for Medicaid benefits. Walker said the plan would provide drug addicts with treatment and make them employable. "Healthy workers help Wisconsin employers fill jobs that require passing a drug test," Walker's administration said in a press release Wednesday announcing the waiver. But critics called the notion a waste of money and an insult to people who need Medicaid.

back to top