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Why Are California's Legal Marijuana Sales So Low?

California is on track to generate $1.9 billion in legal marijuana sales this year, according to new data from a financial analysis firm tracking the market. That's a lot of weed, but it's only half the amount the same firm previously estimated the state would rake in.

The estimates are from New Frontier Data, which crunches cannabis industry numbers, and are based on tax revenues from pot sales, which so far have fallen dramatically short of projections. According to New Frontier, the state collected $33.6 million in pot taxes between January 1 and March 31, which makes it extremely unlikely that tax revenues will meet original expectations of hitting $175 million in the first half of the year.

New Frontier had earlier estimated that the state would see $3.8 billion in marijuana sales this year, and this latest estimate slashes that number by a whopping 50%. The company also slashed its projections for the size of the legal industry by 2025. Instead of the $6.7 billion in sales it earlier estimated, it now says it thinks sales will only hit $4.7 billion, a hefty one-third reduction.

That's bad news not only for state tax revenues but also for an industry that is supposed to be coming in out of the cold. What happened? New Frontier has an idea.

"It is quite clear that the new adult use regulations have made it more difficult than anticipated for the legal market to get established and for consumers to transition to from the illicit market. Given the number of local government bans on cannabis businesses, we are not seeing the same kind of conversion rates that we have seen in other legal markets," said Giadha Aguirre De Carcer, New Frontier Data founder, and CEO.

State and local licensing fees for marijuana businesses can range from $5,000 to $120,000 per year, depending on the type and scope of the business. And complying with regulatory mandates, such as those around zoning, water usage, and lab testing, costs even more.

It's not just onerous -- and expensive -- regulation for those who want state licenses to grow, distribute, and sell marijuana that's the problem. There's also a serious lack of buy-in by a good portion of the state's cities and counties, and that means that a big hunk of the state has no access to local legal marijuana.

"If there's (no governmental support) locally, then there's no option for a state license, and that's why most people are being shut out at this point in time," California Cannabis Industry Association executive director Lindsay Robinson told the Marijuana Business Daily. "The process gave local authorities an option to kind of sit on their hands, and that's the biggest barrier that we're seeing."

According to CCIA spokeswoman Amy Jenkins, only about a third of the state's 540 local governmental entities have approved commercial marijuana activity. Lack of legal access is "forcing consumers to turn to the illicit market," she told the Los Angeles Times this week.

Or return to it. Or stay in it, if they never left. Humboldt State University economics professor Erick Eschker pegged the size of the state's pot market -- legal and illegal -- at about $7.8 billion. Of that, about $2.3 billion came from the medical marijuana market, leaving about $5.5 billion for legal, grey market, and black market pot sales. If the legal market is only accounting for $1.9 billion in sales, that suggests that grey and black market sales are still about twice the size of legal sales. These consumers don't get hit with stiff sales and excise taxes, and if they can still get it from the guy down the street, why pay those high, state-legal prices?

If California wants to eliminate the black market in marijuana, it's got a whole lot of work to do. And no matter what steps the state takes to deal with its internal black market, there's still the export black market to the non-legal states in the rest of the US. Ultimately, the only way to end the black market is to legalize it nationwide, but we're not quite there yet. In the meantime, California's transition to a legal marijuana regime is facing some unhappy realities.

Chronicle AM: No Home Grow for NH This Year, Australia Welfare Drug Test Plan, More... (5/8/17)

A new report finds legal marijuana makes a marginal contribution to state budgets, a major Las Vegas casino quits pre-employment testing for marijuana, an Australian Senate panel advances a controversial plan to drug test welfare recipients, and more.

A major Las Vegas strip casino gives up on pre-employment screening for marijuana. (Creative Commons)
Marijuana Policy

Report: Legal Marijuana Boostz Government Revenues, Somewhat. A new report from Moody's Investor Service finds that legalizing and taxing marijuana boost revenues, but not dramatically. In Colorado, the report found, marijuana taxes accounted for 2% of the state budget; in Washington state, 1.2%.

No Home Cultivation for New Hampshire This Year. Legal home cultivation is dead in the Granite State this year after the Senate refused to advance a bill approved by the House. The measure, House Bill 1476, would have allowed residents to grow two mature and 12 seedlings. The Senate Health and Human Services Committee voted to refer the bill to "interim study," where bills simply expire at the end of the session.

Major Las Vegas Casino Gives Up on Pre-Employment Marijuana Screening. In another sign of decreasing resort to drug testing for marijuana in a time of spreading legalization and low unemployment, Caesars Entertainment Group announced Monday that it has ended pre-employment drug testing for pot. "A number of states have changed their laws and we felt we might be missing some good candidates because of the marijuana issue and we felt that pre-screening for marijuana was on the whole, counterproductive," said Rich Broome, executive vice president of corporate communications and community affairs for Caesars. "If somebody is believed to be using or high at work, then we would continue to screen for marijuana and other drugs."

Medical Marijuana

Arkansas Supreme Court to Hear Oral Arguments on Licensing Imbroglio. The state Supreme Court agreed Monday to hear oral arguments on a judge's decision to prevent the state from licensing medical marijuana cultivation operators. The judge had ruled that the licensing program violated the voter-approved constitutional amendment that legalized medical marijuana after a complaint from a business that failed to get a license.

Georgia Governor Signs Bill Allowing CBD Cannabis Oil for PTSD, Intractable Pain. Gov. Nathan Deal (R) on Monday signed into law House Bill 65, which adds PTSD and intractable pain to the list of qualifying conditions that can be treated by CBD cannabis oil.

International

Australian Senate Committee Endorses Plans to Drug Test Welfare Recipients. The Australian federal government's Senate Community Affairs Legislation Committee issued a report Monday recommending passage of the government's highly controversial plan to impose drug testing on welfare recipients. The bill would create a trial program under which some 5,000 welfare recipients would face mandatory testing. People who test positive would be placed on "income management" for two years, while those who test positive twice within two years could be forced to undergo drug treatment. The plan has been condemned by medical and social welfare organizations, including the Australian Medical Association, which expressed "significant concern" about the plan. "Elements of the proposal are unnecessarily punitive and will increase stigmatisation among the most disadvantaged in the community," the AMA said.

Chronicle AM: Canada Liberals Endorse Drug Decrim, Gillibrand Says Legalize It, More... (4/23/18)

Canada's Liberal Party formally endorses drug decriminalization (although Justin Trudeau is keeping his distance), the State Department cites continuing human rights concerns in the Philippines drug war, a Utah medical marijuana initiative appears set to make the November ballot, and more.

Sen. Kirsten Gillibrand (D-NY) says it is time to legalize marijuana. (Flickr)
Marijuana Policy

Kirsten Gillibrand Says Time to Legalize Marijuana, Calls on Sessions to Meet With People Busted for Pot. The junior senator from New York and potential Democratic presidential contender said Sunday the time has come to legalize marijuana and that she had sent a letter to Attorney General Jeff Sessions inviting him to discuss the impact of the drug war with New Yorkers who have been denied jobs, housing, and college financial aid because of non-violent drug crimes. She also called on Sessions to reinstate the Cole memo, the Obama administration's policy of largely leaving state-legal marijuana alone.

Idaho Democratic Gubernatorial Contenders Split on Marijuana Policy. One Democrat running for governor wants to legalize marijuana; the other does not. In a Sunday night debate on Idaho Public Television, contender Paulette Jordan said she fully supports legalization and cited the tax benefits for the state. Boise businessman AJ Balukoff, who is also seeking the nomination, disagreed. He said he is opposed to the substance and believes medical marijuana needs to be properly tested. Idaho is one of four states in the country that has not passed any form of marijuana law reform, not even a CBD medical marijuana law.

Albuquerque Decriminalization Went into Effect on 4/20. New Mexico's largest city has now decriminalized the possession of less than an ounce of marijuana. The change went into effect last Friday after a measure was passed by the city council and signed by Mayor Tim Keller. Possession remains a crime under state and federal law.

Medical Marijuana

Utah Initiative Appears Set to Qualify for November Ballot. A medical marijuana initiative from the Utah Patients Coalition looks very likely to qualify for the November ballot. While it won't be official until May 15, petitioners appear to have met the overall signature requirement, with 145,000 registered voter signatures in hand, well above the 113,000 required. But the initiative also must meet specific signature thresholds in each of the state's 29 state Senate districts. As of last Friday, they had done so in 26 of them.

Foreign Policy

State Department Says Drug War Killings Remain Top Philippines Human Rights Concern. In its global rights report for 2017, the State Department said drug war killings and rising police impunity remain the top human rights concerns in the Philippines. "Extrajudicial killings have been the chief human rights concern in the country for many years and, after a sharp rise with the onset of the antidrug campaign in 2016, they continued in 2017,"reads the report released Friday (Washington time). The report also expressed doubt and uncertainty over Filipino government reports on the killings. "Police claimed to have begun investigations of all reports of extrajudicial killings,"the report read in part. "Some civil society organizations accused police of planting evidence, tampering with crime scenes, unlawfully disposing of the bodies of drug suspects, and other actions to cover up extrajudicial killings,"it added.

International

Canadian Liberals Formally Endorse Drug Decriminalization, Trudeau Demurs. Canada's governing Liberal Party endorsed the decriminalization of the possession of all drugs at its national convention Saturday. But party policy isn't necessarily government policy, and party leader Prime Minister Justin Trudeau has distanced himself from the decriminalization plank. Drug decriminalization, as well as the decriminalization of sex work and proposals to reform health care, which the party also approved, are seen as bolstering the Liberals' odds against the New Democrats, who traditionally attack them from the left.

(This article was prepared by StoptheDrugWar.org's 501(c)(4) lobbying nonprofit, the Drug Reform Coordination Network, which also pays the cost of maintaining this web site. DRCNet Foundation takes no positions on candidates for public office, in compliance with section 501(c)(3) of the Internal Revenue Code, and does not pay for reporting that could be interpreted or misinterpreted as doing so.)

Chronicle AM: DEA Deploys Against Opioids, NY Gov's Criminal Justice Plan, More... (3/29/18)

Mucho medical marijuana, a Connecticut legalization bill gets a hearing, the DEA is deploying 250 agents to fight opioids, Louisiana could get a full-fledged needle exchange program, and more.

The DEA is ready to fight some more drug war.
Marijuana Policy

Third Connecticut Legalization Bill Gets Hearing. A marijuana legalization bill that also includes funding for drug treatment and prevention got a hearing in the House Appropriations Committee Wednesday. House Bill 5394 calls for drafting a plan to legalize and regulate weed by October 1, as well as requiring a treatment and prevention plan by the same date.  The bill did not get a vote. Two other legalization bills before the legislature do not contain the treatment and prevention funding provisions.

Medical Marijuana

Arkansas Judge Puts Hold on State Medical Marijuana Program. A state judge last week put the state's program on hold because of objections to the licensing process, but was apologetic for imposing the delay. "Amendment 98 to the Constitution of Arkansas, an initiative by the people, exists because Arkansans want to provide medical marijuana to persons who suffer from chronic, debilitating, and life-threatening health challenges," Pulaski County Circuit Judge Wendell Griffen wrote in his order last week. "The prospect that Arkansans must now endure more delay before gaining much needed access to locally grown medical marijuana should be unpleasant to anyone concerned about providing relief to people who suffer from serious illnesses."

Kansas House Votes Down Medical Marijuana. As they debated changes to the state's drug laws, lawmakers in the House voted down an amendment that would have allowed the use of medical marijuana. The amendment was offered by Rep. Cindy Holscher (D-Lenexa), who said her own daughter, who suffers from juvenile rheumatoid arthritis, could benefit from access to the medicine. "Please don’t make us lawbreakers," Holscher said. "Give us an option for something that has been proven to work." But the underlying bill contains a provision that allows for the limited use of CBD cannabis oil.

Louisiana House Committee Approves Medical Marijuana for Autism. The House Health and Welfare Committee on Wednesday approved a bill that would add certain types of autism to the list of qualifying conditions for medical marijuana. The move comes as dispensaries are set to open in the state just four months from now. The measure, House Bill 627, now goes to the full House.

New Hampshire Senate Approves Bill to Add More Dispensaries. The state Senate last week approved a bill that would allow for two additional dispensaries in the state.  The state currently has four medical marijuana outlets. The bill now goes to the House.

South Carolina Senate Committee Advances Medical Marijuana Bill. The Senate Medical Affairs Committee approved a medical marijuana bill on Thursday. The measure, Senate Bill 212, now heads for a Senate floor vote.  But advocates worry the bill will die for lack of action in the House. The House has declined to hear its own medical marijuana bill so far this year, and the deadline for doing so is April 10.

Tennessee Medical Marijuana Bill Wins Second House Committee Vote. The House Criminal Justice Committee on Wednesday approved House Bill 1749, which would allow for the use of medical marijuana for a dozen qualifying conditions.  The bill now heads for a House floor vote.

Utah Poll Shows Enduring Strong Support for Medical Marijuana. More than three-quarters (77%) of Utahns "strongly" or "somewhat" favor legalizing medical marijuana, according to a new poll from Dan Jones & Associates. The poll is in line with other recent state polls show high levels of support, undaunted by the legislature's passage of a bill that allows for a "right to try" medical marijuana for terminally ill patients. An initiative that would create a full-blown medical marijuana system in the state will likely be on the ballot in November.

Heroin and Prescription Opioids

Federal Spending Plan Has Nearly $5 Billion to Deal With Opioid Crisis. The omnibus spending bill signed into law by President Trump last week contains some $4.6 billion. The biggest chunk of the money will go to states and tribes, especially those with the highest overdose mortality rates. Some 63,000 Americans died of drug overdoses last year. The funding is less than the $7 billion for fighting AIDS, which killed 42,000 Americans last year.  

DEA Deploying 250 Additional Agents to Fight Opioid Crisis. The DEA announced Tuesday that it is deploying 250 additional task force officers and dozens of analysts across the country in a bid to crack down on opioids. The additional agents and analysts will go to areas hardest hit by the epidemic.

Oregon Governor Signs Opioid Bills into Law. Gov. Kate Brown (D) on Tuesday signed into law two bills and an order setting deadlines for a drug policy commission that has been plagued with staffing and other issues. The order declares addiction a public health crisis in the state. Two bills, House Bill 4137 and House Bill 4143, cover similar ground and require studying barriers to addiction treatment.

Criminal Justice

New York Governor Launches Campaign to Overhaul Criminal Justice System. Gov. Andrew Cuomo (D) on Monday launched a "Campaign to Restore Fairness in New York’s Criminal Justice System." The governor's package would eliminate cash bail for misdemeanor and non-violent felony offenses, ensure access to speedy trials, improve the disclosure of evidence, reform asset forfeiture, and improve reentry programs for people leaving prison.

Harm Reduction

Louisiana House Approves Needle Exchange Bill. A bill that would expand needle exchange programs by allowing them without seeking approval from local governments was approved by the House Committee on Administration of Criminal Justice on Wednesday. House Bill 661 also expands the types of materials and programs a needle exchange can offer, including access to naloxone. The bill now heads for a House floor debate and vote next week.

International

Colombia Coca Growers Threaten to Suspend Cooperation With Peace Process. The federation that represents coca growers, COCCAM, said in a statement on Tuesday it is consulting its members "to define whether to suspend our participation" with the government program that seeks to substitute legal crops for coca.  The federation cited continuing violence, noting that more than 200 coca farmers have been killed since the beginning of the peace process in December 2016. The growers are also unhappy with the government's response to their complaints with Justice Minister Enrique Gil for proposing a law shielding coca growers from criminal prosecution, but which excludes families that have already signed up for the program. The bill also more than halved the amount of land to be considered a small grower, changes the federation called a "flagrant betrayal of the peasants, Afro-descendants and indigenous people who put their trust in the peace process by joining the program."

Georgia Drug Decriminalization Bill on Hold After Controversial Rewrite. A bill that would decriminalize drug use and possession has been held up after an interagency commission expressed support for a new draft drug policy law that activists say no longer talks about decriminalization.  The new draft also fails to differentiate quantities of drugs for personal use from those for distribution except in eight cases, meaning people caught with any amount of other drugs face years in prison. "Nobody mentioned decriminalisation at today’s hearing, which is alarming," Guram Imnadze, a lawyer from local rights group the Human Rights Education and Monitoring Centre (EMC) said after it was over. The current draft doesn't address the key problem with the country's drug policy, which, he said, was that "people spend years in prison for drugs they intended for personal use."

Chronicle AM: Trump Wants to Execute Drug Dealers, Brazil Drug War Targets Rio Slums, More... (2/26/18)

The president makes downright scary remarks about killing drug dealers, the Brazilian army and cops roar into Rio's favelas, California's Democratic Party reaffirms its support of legal pot, and more.

Iranian drug executions -- Trump's solution to the drug problem? (handsoffcain.info)
Marijuana Policy

Arizona Legalization Bill Snuffed Out. A bill that would have legalized marijuana in the state was snuffed out last week by House Judiciary and Public Safety Committee Chairman Eddie Farnswoth (R-Chandler). The measure, House Concurrent Resolution 2037 would, if passed, have put the issue directly before voters in a referendum.

California Democrats Reaffirm Commitment to Legal Marijuana, Diss Anti-Pot Feinstein. Meeting over the weekend, the California Democratic Party approved numerous platform planks in support of marijuana legalization, including one that says they "support the ongoing legalization, regulation, and taxation of cannabis in a manner similar to that of tobacco or alcohol, while prioritizing the health, education, and safety of California's communities and the country over revenue or profits." In other action, the state party failed to provide its endorsement to Sen. Diane Feinstein, who has lagged far behind other state Democrats when it comes to marijuana policy.

Maine Legalization Implementation Bill Kills Off Social Clubs, Tax Revenue Sharing. The Marijuana Legalization Implementation Committee took a final vote on the overhauled implementation bill Friday. The final version of the bill contains no provision for marijuana social clubs, nor does it allow for the sharing of marijuana tax revenues to the state with localities that allow marijuana businesses. The excise tax on wholesale marijuana is set at 21.5%, or about $335 a pound at current prices. The measure will go before the whole legislature in a few weeks.

Ohio Legalization Initiative Could Be Delayed to 2019 or 2020. At a press conference last Friday, Cincinnati businessman Jimmy Gould, the man behind the failed 2015 "monopoly marijuana" legalization initiative, said his plans to get another initiative on the ballot may not come to fruition this year. He said language for the proposed measure was not yet set and the initiative may not appear on the ballot until 2019 or 2020. The deadline to hand in enough vote signatures to qualify for the ballot this year is July 4.

Medical Marijuana

Idaho CBD Medical Marijuana Bill Advances. The House Health and Welfare Committee has approved House Bill 577, which would legalize the possession of low-THC CBD oil for medical use. The bill advanced despite the opposition of law enforcement and the Idaho Office of Drug Policy. It now heads for a House floor vote.

Sentencing

Trump Says He Wants to Execute All Drug Dealers. President Trump has been making some disturbing authoritarian and blood-thirsty private remarks about what he'd like to do to drug dealers, according to a new report from Axios. Worse yet, his dark fulminations may foreshadow some repressive policy prescriptions not too far down the road. Trump seems obsessed with fighting drugs, according to the Axios report. It cites five sources who've spoken with Trump on the subject who say "he often leaps into a passionate speech about how drug dealers are as bad as serial killers and should all get the death penalty" and that softer approaches to drug reform will never work.

Arizona Bill Would Impose Mandatory Minimums on First Time Heroin, Fentanyl Sellers. A bill that would create five-year mandatory minimum sentences for first-time heroin and fentanyl sellers passed the House last week. House Bill 2241 now heads to the Senate.

International

Brazilian Army, Rio de Janeiro Cops in Massive Anti-Drug Operation. The army and the state police have launched a massive anti-drug operation in several favelas (shantytowns) on the west side of the city, military spokesmen announced last Friday. More than 3,000 soldiers and police are taking part in the operations in Vila Alianca, Coreija, and Vila Kennedy. In the latter, there have been at least 13 shoot outs between drug traffickers and police since January. The operation started just days after an army sergeant and police commander were killed there last week.

Colombia Coca-Country Clashes Are Creating Refugee Flows. Three-way fighting between rightist paramilitaries, leftist ELN guerrillas, and the Colombian military in the coca-rich Bajo Cauca region some 80 miles north of Medellin has displaced some 1,500 people already, with the prospect of more to come. "The clashes between the armed groups continue to cause fear amongst the indigenous communities and rural populations," said the Norwegian Refugee Council, which is assisting victims of the violence.

Manila Demonstrators Protest Philippines Drug War. Thousands of marchers organized by Catholic groups took to the streets of Manila Saturday in a "walk for life" to protest the thousands of killings that have occurred under President Rodrigo Duterte's bloody crackdown on drugs. "We will not tire in walking for life even if the path ahead is winding and soaked in blood," Cardinal Luis Antonio Tagle.

Philippines Police Kill Ten in Night of Bloody Drug Raids. In the single bloodiest night of the country's drug war since police resumed participation in December, police said they killed 10 suspected drug dealers and arrested 63 more last Wednesday night. The operations took place in Bulacan, north of Manila, the capital. Police said the suspects were killed in eight separate towns during 45 "buy-bust" incidents.

California's Marijuana Farmers Are Slow to Join the Legal, Regulated System

The vast majority of California's marijuana growers have yet to try to move into the state's new legal regulatory framework, leaving big questions looming around whether they can survive in the brave new world of legal weed, whether a substantial illicit market will remain, and whether that anticipated tax revenue windfall will actually materialize.

According to a report released Monday by the California Growers Association, representing mainly small-scale growers across the state, fewer than 1% of growers have been licensed so far. That's a measly 534 licensed growers out of an estimated 68,000 in the state.

The report, "An Emerging Crisis: Barriers To Entry In California Cannabis," identifies a number of obstacles for small producers and warns that those issues must be addressed if participation is to increase and a post-legalization law enforcement crackdown is to be avoided.

"Without broad participation, legalization will look a lot like prohibition," with many illicit growers, the report concludes. "The current system will not achieve its goals without fundamental and structural changes that allow small and independent businesses to enter into compliance."

Obstacles to participation include lack of access to the financial sector. the high costs of complying with regulatory and tax burdens, state regulations that seem perversely designed to weed out small competitors, slow-moving or sometimes hostile local governments, and a saturated market.

As one Sonoma County cultivator put it in the report:

The unintended consequence of making it so difficult at the local and state level to enter the regulated market is that 80-90% of those who were working with dispensaries prior to 1/1/2018 are being pushed to the black market. This is not only bad for the regulated market because so much high quality product is now flooding into the black market, but crime is increasing as a result as well.

I am truly heartbroken to see what the regulatory system has done to the artisan cultivators and manufacturers who were creating diverse, boutique products. These people who built this industry are not allowed to participate. I hope we can course correct this year.

State and local governments need to make course corrections now "or else a staggering number of businesses will fail, while staggeringly few enjoy significant growth," the report warned. "Many of the best growers -- the most dedicated and passionate artisans who can add tremendous value to the state marketplace -- are the ones being left behind."

It's unlikely all those pot farms are just going to dry up and blow away, though. The report notes that the state currently produces about 15 million pounds of marijuana each year, but that only 3 million pounds are consumed in-state. That means the vast majority of California-grown marijuana is already heading for out-state markets in prohibitionist states. Quick action to make California's legal markets more friendly to small producers may eventually entice more to fight their way into the regulated economy, but it's going to take the end of prohibition in the rest of the country to end California's black market marijuana exports.

Chronicle AM: DC Demo on Philippine Drug War Next Week, BC Drug Decrim March, More... (2/21/18)

Ohio's medical marijuana program may have just hit a bump, hemp could be coming to Utah, drug users march for decriminalization in Vancouver, demonstrators will gather in DC next week to protest the Philippines drug war, and more.

Demonstrators call for an end to the Philippines drug war and the freedom of of one of Duterte's leading critics. (Facebook)
Medical Marijuana

Ohio Lawsuit Challenges Grow License Process. A lawsuit filed Tuesday by would-be medical marijuana grow operators who weren't picked for the large grow licenses issued by the state Department of Commerce threatens to disrupt the rollout of the program. The growers are suing the department, the officials involved in grading application, and all the businesses that won licenses. They charge they weren't treated fairly in the licensing process.

West Virginia Regulators Will Recommend Allowing Smokeable Medical Marijuana. The state medical marijuana board announced Tuesday that it plans to recommend to lawmakers that some patients be allowed to use marijuana in a smokeable form. The board will also recommend removing or increasing the cap on the number of growers, processors, and dispensaries in the state and allowing one company to take on more than one of those roles.

Industrial Hemp

Utah Hemp Bill Advances. A bill that would allow the production and sale of hemp products in the state is headed for a House floor vote after being approved Tuesday by the House Natural Resources, Agriculture and Environment Committee. House Bill 302 authorizes the state Department of Agriculture and Food to provide a hemp-growing license to "a person who wishes to participate in an industrial hemp research pilot program," according to a summary attached to the bill. The bill also allows those who would like to produce and sell hemp-based products "to distribute the registered hemp product in the state" if they obtain the license from the state to do so.

Asset Forfeiture

Wisconsin Asset Forfeiture Reform Bill Passes Senate. The state Senate has approved Senate Bill 61, which does not end civil asset forfeiture, but puts limits on how long police can hold property before someone is charged and reduce the amount of money police can keep when they sell seized property. The measure now heads for the Assembly.

Foreign Policy

Trump Budget Would Cut Aid to Colombia in Half. The White House's proposed Fiscal Year 2019 budget would slash foreign assistance to Columbia by nearly half, even as the country struggles to implement a peace deal with leftist FARC rebels and address a record-breaking level of coca planting and cocaine production. The budget would reduce funds "to implement sustainable peace" in the "most affected zones" of the country's drug prohibition-fueled armed conflict from $180 million to $100 million. The budget also seeks a reduction of one-third in funding for the International Narcotics Control and Law Enforcement program. Colombia is a major recipient of aid under that program, too. The Washington Office on Latin America said the budget proposal would "squander an historic opportunity to help Colombia avoid a resurgence of criminal violence, while Insight Crime noted that "large cuts in aid could prove detrimental to efforts aimed at improving security conditions in… crime-wracked countries" like Colombia.

International

Vancouver Drug Users March to Demand Drug Decriminalization. Several hundred drug users and supporters took to the streets of Vancouver's Downtown Eastside to demand that the federal government change its drug policies and embrace drug decriminalization. The protest, part of a national day of action across the country, was organized by the Canadian Association of People who Use Drugs (CAPUD), the Vancouver Area Network of Drug Users (VANDU) and other groups. Decriminalization would "allow people to use drugs more safely without fear of arrest and detention," said Caitlin Shane, a lawyer with Pivot Legal Society who specializes in drug policy.

DC Demonstration Against Philippine Drug War Killings Set for Next Wednesday. On Wednesday, February 28th, please join Filipino Americans, drug policy reformers and other human rights defenders to call for an end to extrajudicial killings and for Senator de Lima to be freed. We will rally from noon to 1:00pm in front of the Philippines Embassy, 1600 Massachusetts Avenue NW in Washington, DC. Among other things, the event will feature a street theater performance in which attendees will symbolically free a Senator de Lima figure from a realistic mobile model of a prison cell. Please email David Borden at [email protected] to get involved in preparations for this demonstration or for other information, and please spread the word!

Chronicle AM: Trump Drug Budget, NH Marijuana Bill Hearing, OR Opioid Emergency, More... (2/13/18)

The proposed FY 2019 Trump budget features more drug war and cutting the drug czar's office, a legal marijuana bill gets a hearing in New Hampshire, Oregon's governor declares a public health emergency over opioids, and more.

The president's proposed budget has billions for more drug war. (Creative Commons)
Marijuana Policy

Georgia Bills to Reduce Penalties Filed. A pair of bills filed in the legislature seek to reduce the criminalization of marijuana users. House Bill 865 would make possession of up to two ounces a misdemeanor. Under current law, possession of more than one ounce is a felony. Senate Bill 105 would decriminalize the possession of up to a half ounce. Legalization bills were filed earlier in the session, but they are not expected to go anywhere.

New Hampshire Legalization Bill Gets Hearing Today. The House Ways and Means Committee is holding a hearing on a limited legalization bill today. House Bill 656 would legalize the possession of up to a quarter ounce of weed and grow up to six plants, but would not set up a system of legal marijuana commerce.

Virginia Senate Approves Arrest Expungement Bill. The Senate voted 38-2 on Monday to approve Senate Bill 954, sponsored by Sen. Tommy Noment (R-James City). The bill would allow people charged with first-time possession to later pay $150 to have the charge expunged. The measure must now be approved by the House.

Medical Marijuana

Iowa Poll Has Overwhelming Support for Medical Marijuana. A new Selzer & Company poll has 78% in favor of medical marijuana, with 19% opposed, figures that are roughly unchanged over the past couple of years. What has changed is support for recreational marijuana, now at 39%, up from 28% four years ago.

New Mexico Lawmakers Eye Marijuana in Fight Against Opioids. Lawmakers and supporters gathered at the state capitol in Santa Fe Monday to urge state officials to add opioid addiction to the list of disorders qualifying for medical marijuana. And advisory panel has twice considered petitions seeking to add medical marijuana as a tool against opioid abuse, the most recent last November, but the state Health Department has yet to act.

Heroin and Prescription Opioids

Oregon Governor Declares Addiction a Public Health Crisis. Gov. Kathleen Brown (D) on Tuesday released an executive order declaring opioid addiction to be a public health crisis in the state. She said she would soon set a deadline for the state Alcohol and Drugs Policy Commission to come up with a plan to fight the problem.

Drug Policy

Trump Budget Doubles Down on Drug War. The Trump administration's proposed Fiscal Year 2019 budget is heavy on drug war spending, with an additional $400 million for the DEA, $334 million in the law enforcement-oriented Byrne Justice Assistance Grant program, $50 million for the once-discarded anti-drug media campaign, $43 million for drug courts, and a cut of $20 million in offender reentry programs. The budget includes $18 billion over two years for the Mexico border wall, which Trump justifies on both drugs and immigration grounds, which is more than the $13 billion the administration says it is allocating to fight opioid abuse.

Trump Budget Would Gut Drug Czar's Office. The Trump FY 2019 budget would also dramatically slash funding for the Office of National Drug Control Policy (ONDCP -- the drug czar's office), primarily by moving two grant programs elsewhere. Under the proposal, the Drug Free Communities Support Program and the High Intensity Drug Trafficking Areas program would be moved into the Health and Human Services Department and Justice Department, respectively. The move is opposed by some lawmakers and a coalition of more than 150 advocacy organizations, but more radical critics on both the left and the right would like to see the agency go away altogether.

Sentencing

New Jersey Governor Revives Sentencing Commission. Gov. Phil Murphy (D) is reviving the Criminal Sentencing and Disposition Commission, which was created by the legislature in 2009 to examine racial disparities in sentencing, but remained dormant under former Gov. Chris Christie (R). Christie never appointed any members to the commission. "We can and must do better," Murphy said in a statement. "A Criminal Sentencing and Disposition Commission can undertake the important review of our sentencing laws and recommend reforms necessary to ensure a stronger, fairer, and more just state." Murphy has already appointed two people to the commission's 13-member board, which must issue a report within a year of its first meeting.

Eight Things That Do (or Don't) Happen When We Legalize Marijuana [FEATURE]

The great social experiment that is marijuana legalization is now five years old, with six states already allowing legal marijuana sales, two more where legal sales will begin within months, and yet another that, along with the District of Columbia, has legalized personal possession and cultivation of the herb.

As a number of state legislatures -- including Connecticut, Delaware, New Hampshire, New Jersey, New Mexico, and New York -- seriously contemplate joining the parade this year, it's more important than ever to be able to assess just what impact marijuana legalization has had on those states that have led the way.

The prophets of doom warned of all manner of social ills that would arise if marijuana were legalized. From hordes of dope-addled youths aimlessly wandering the streets to red-eyed carnage on the highway, the divinations were dire.

So far at least, they were wrong. And while things will doubtless continue to evolve over the long term, as the industry matures, prices possibly drop, regulations change, and familiarity with legal marijuana grows, so far things are looking pretty encouraging. A report released Tuesday by the Drug Policy Alliance, From Prohibition to Progress, takes a long look at what has happened in the states have legalized it:

1. Marijuana arrests plummeted.

Well, of course. If there's one thing you could predict about legalizing marijuana, this is it. The decline in the number of pot arrests is dramatic: 98% in Washington, 96% in Oregon, 93% in Alaska, 81% in Colorado, 76% in DC. That means tens of thousands of people not being cuffed, hauled away, and branded with lifelong criminal records, with all the consequences those bring.

The savings in human dignity, liberty and potential are inestimable, but the savings to state criminal justice and correctional systems are not: The report puts them at hundreds of millions of dollars.

2. …But the racial disparities in marijuana arrests have not ended.

While marijuana legalization dramatically reduces the number of people arrested for marijuana offenses, it clearly does not end racially disparate policing. The vast disparities in marijuana arrests remain, even in legal states. Black and Latino people remain far more likely to be arrested for marijuana offenses than white people, despite similar rates of use and sales across racial groups. There is work to be done here.

3. A tide of teenage weed heads is not unleashed upon the nation.

High school kids in the earliest legalization states smoke pot at rates similar to kids in states that haven't legalized it, and those rates have remained stable. In the later legalization states, rates of teen use vary widely, but have mostly stabilized or declined in the years leading up to legalization. And in those latest states -- Maine, Massachusetts, Nevada, California -- regulatory programs are either not yet in place or so new they're unlikely to have effected youth use rates.

4. The highways remain safe.

In the earliest legalization states, Colorado and Washington, the total number of arrests for driving under the influence of alcohol and other drugs is down, and the crash rates in both states are statistically similar to states that haven't legalized it. In fact, there seems to be no correlation between legalization and crash rates.

5. States with legal marijuana have lower rates of opioid-related harms.

In Colorado, an upward trend in overdoses began to decline after 2014, the first year of retail pot sales in the state. Other positive indicia come from medical marijuana states, which report a nearly 25% drop in overdose death rates, a 23% reduction in opioid addiction-related hospitalizations and a 15% reduction in opioid treatment admissions.

6. Marijuana tax revenues are big -- and bigger than predicted.

Legalization states have collected more than a billion dollars in pot tax revenues -- and that's not counting the monster market in California, where recreational sales just began this month. Likewise, slow rollouts of taxed and regulated marijuana commerce in Maine and Massachusetts, mean no tax dollars have yet been generated there. In the states that do have legal pot sales, overall sales and tax revenues quickly exceeded initial estimates.

7. Marijuana tax dollars are going for good things.

Like $230 million to the Colorado Department of Education in two years to fund school construction, early literacy, school health, and bullying prevention programs. Likewise, schools in Oregon get 40% of the pot taxes and schools in Nevada will get $56 million in wholesale pot tax revenues. Oregon also allocates 20% of pot taxes for alcohol and drug treatment, while Washington kicks in 25%. In Washington state, 55% of pot tax revenues fund basic health plans.

8. Legal marijuana is a job creation engine.

The legal marijuana industry has already created an estimated 200,000 full- and part-time jobs, and that's before California, Maine, and Massachusetts come online. As marijuana moves from the black market to legal markets, weed looks like a growth industry and job generator for years to come.

"Marijuana criminalization has been a massive waste of money and has unequally harmed black and Latino communities," said Jolene Forrman, staff attorney at the Drug Policy Alliance and author of the report. "This report shows that marijuana legalization is working. States are effectively protecting public health and safety through comprehensive regulations. Now more states should build on the successes of marijuana legalization and advance policies to repair the racially disparate harms of the war on drugs."

In addition to reforming police practices to reduce racial disparities, the report also says there is more work to be done on fostering equity within the marijuana industry and points to models for doing so, such as the California provision that having a prior drug conviction can't be the sole basis for denying a marijuana license.

Having places where people can actually smoke legal marijuana also remains an issue, the report noted. Public consumption is not allowed in any of the legal states. It's a ticketable offense in some and a misdemeanor in others. Public use violations are also disproportionately enforced against people of color, and the imposition of fines could lead to jail time for poor people unable to pay for the crime of using a legal substance.

And what about the kids? The report notes that while legalization has generally resulted in reducing historically high numbers of young people being stopped and arrested for pot offenses, these reductions are inconsistent, and in some circumstances, young people now comprise a growing percentage of marijuana arrests. A model could be California, where kids under 18 can only be charged with civil infractions.

Legalizing marijuana may be necessary for achieving social justice goals, but it's not sufficient for achieving them. As this report makes clear, how we legalize marijuana matters, and that's still a work in progress. But so far, it's looking pretty good.

Federal Marijuana Justice Act Filed in House [FEATURE]

Attorney General Sessions' announcement last week that he was rescinding Obama-era guidance to federal prosecutors to generally leave law-abiding marijuana operations alone in states where it is legal has paradoxically had the effect of energizing the movement to legalize marijuana at the federal level. The latest evidence of the reaction came Wednesday, as Congresswoman Barbara Lee (D-CA) and Congressman Ro Khanna (D-CA) filed a legalization bill in the House.

Oakland's Democratic Rep. Barbara Lee (Wikimedia)
And it's not just any legalization bill. Their Marijuana Justice Act would help correct decades of injustice surrounding the discriminatory enforcement of marijuana criminalization laws in the United States.

"We intend to end this destructive war on drugs, and this legislation will do that," said Lee at press conference rolling out the bill. "It's a roadmap for ending the drug war, but it also begins to address mass incarceration and disinvestment in communities of color. It is an essential step to correcting the injustices of the failed war on drugs, namely racial disparities in arrests and incarceration."

In addition to ending federal marijuana prohibition by removing the drug from the DEA's list of controlled substances, the bill would allow anyone currently serving a sentence for drug possession to appeal for judicial review of his or her sentence. It would also use federal spending to incentivize states to reform their marijuana laws "if those laws were shown to have a disproportionate effect on low-income people and/or people of color."

That last provision is especially striking given that nearly every state disproportionately arrests and imprisons blacks for marijuana. With this language, the federal government could become an engine for state-level marijuana legalization instead of an impediment to it.

"This would force states with records of racial bias in arrests and sentencing to clean up their acts by cutting funds to the worst offenders," said Lee.

But even that would only begin to repair the damage done by the drug war, the Oakland congresswoman explained.

"It's not enough to just expunge records and end over-incarceration," Lee said. "Restorative justice is extremely important, and these victims of our failed policies deserve our support during the reentry process, too."

Rep. Ro Khanna (D-CA)
For bill cosponsor Rep. Ro Khanna (D-CA), it's the economics, but not just in the traditional sense of increased economic activity and tax revenues. While he pointed to the potential economic gains of legalization, he also highlighted the opportunity costs of pot prohibition and underlined provisions in the bill that would spend federal funds to invest in communities ravaged by the drug war.

"The estimates are that legalization would lead to a $40 billion a year industry, with a million jobs and $7 billion tax revenues, which would more than offset the $500 million in the bill to help invest in communities of color. It's a net gain for government and for job creation," Khanna noted.

"But the economic impact is so much broader," he pointed out. "How many people of color got arrested at 19, 20, or 25? That represents hundreds of millions of dollars in lost economic potential. With this bill, we're not just talking about legalization, but about giving people a second chance.

The Marijuana Justice Act is the House version of the bill introduced in the Senate earlier this year by Sen. Cory Booker (D-NJ), Senate Bill 1689. Booker was at Wednesday's press conference for the House version.

"There is a rush of enthusiasm for legalization," he said, "but it seems like hypocrisy and injustice if you legalize it but don't ty to undo the damage of the war on drugs. You can't get a Pell grant or a business or professional license for doing something three out of our last four presidents have admitted doing. The war on drugs is one of the greatest assaults on people of color since Jim Crow, and that's why this is a very happy day for me. We're trying to make this nation live up to is promise of liberty and justice, not just for the privileged few, but for all.

Sen.Cory Booker (D-NJ) filed the Senate version of the bill last August.
"I think we are seeing momentum growing," Booker continued. "People who were skeptics are being converted. A lot of people are aware of how unjust this has been, and now there is more confidence from seeing early state like Colorado be so successful."

Indeed. One of the most politically striking moments since the Sessions announcement was Colorado Republican Sen. Cory Gardner -- not a supporter of legalization -- taking to the Senate floor to excoriate Sessions over the move and vow to block Justice Department nominees until Sessions reverses himself.

"More than 30 states have passed marijuana reforms," said Lee. "The grassroots and democracy is working. You will see members of the House and Senate move forward because the public supports this. It can't be stopped."

"We are at a tipping point, with nearly two-thirds supporting marijuana legalization and an overwhelming 91% supporting medical marijuana, said Queen Adesuyi of the Drug Policy Alliance, which has been working closely with Booker and Lee on the bills. "Eight states have already legalized it, with Vermont and New Hampshire on the cusp. Yet, Attorney General Sessions continues to threaten the states. It's time to legalize marijuana, protect patients, and end federal marijuana prohibition."

While momentum is building, the bills both face an uphill battle in their respective chambers. The Booker bill, introduced last August, still has only one cosponsor, Oregon Democrat Sen. Ron Wyden, and there is no indication it will get even a committee hearing this session. Lee and Khanna's House version of the bill already had a dozen cosponsors on day one, but again, it is unlikely to get a hearing under the House Republican leadership.

But the legalization bills could fare better next year if the Democrats manage to take back the House and/or the Senate. And Jeff Sessions' war on weed could help them to do just that.

(This article was prepared by StoptheDrugWar.org's 501(c)(4) lobbying nonprofit, the Drug Reform Coordination Network, which also pays the cost of maintaining this web site. DRCNet Foundation takes no positions on candidates for public office, in compliance with section 501(c)(3) of the Internal Revenue Code, and does not pay for reporting that could be interpreted or misinterpreted as doing so.)

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