Legalization

When Colorado voters last November gave the thumbs up to marijuana legalization, the celebrations came quickly, with overjoyed pot smokers triumphantly lighting up, even though the pot laws had yet to officially change. Indeed, in following the will of the voters, Gov. John Hickenlooper (D) within weeks announced that marijuana was no longer illegal in Colorado.

But that was only the beginning. Amendment 64, the marijuana legalization initiative approved by the voters, didn't just legalize marijuana -- it also called on the state to come up with a regulatory regime for legal marijuana commerce. That process is now well underway, with the state legislature currently considering implementation legislation.

The legislature is working on a framework crafted by a Hickenlooper-appointed Amendment 64 Implementation Task Force, which in mid-March released its Final Report with 58 discrete recommendations for the legislature to consider. The highlights included:

• The adult-use marijuana industry should be required to have common ownership from seed to sale. This vertical integration regulatory model means that cultivation, processing and manufacturing, and retail sales must be under common ownership.
• During the first year of licensing, only entities with valid medical marijuana licenses should be able to obtain licenses to grow, process and sell adult-use cannabis.
• A new Marijuana Enforcement Division in the Department of Revenue would be funded by General Fund revenue for the next five years and would provide the necessary regulatory oversight of all marijuana industries in Colorado.
• Refer a ballot initiative to voters this November for a 15% excise tax, with the first $40 million of excise tax proceeds going to the state’s school construction fund as outlined in Amendment 64, and a "marijuana sales tax" to create funding sources to cover the costs of regulating the industry, implementing consumer safeguards and establishing youth prevention and treatment programs.
• Only Colorado residents should be allowed to hold licenses to grow, process and sell adult-use cannabis. But sales to both residents and visitors to the state should be permitted, with stricter quantity limits for visitors.
• All types of marijuana sold from adult use cannabis retail facilities should be in child-proof packaging and have warning labels that detail tetrahydrocannabinol (THC) potency and list all pesticides, herbicides, fungicides and solvents used in cultivation or processing.

Other recommendations included not allowing pot smoking in bars or other facilities impacted by the state's anti-smoking laws, barring "open containers" of marijuana in vehicles, and requiring people with children at home to keep their marijuana gardens secure.

"This is a very comprehensive report, developed in a rapid timeframe, that lays the groundwork for the establishment of a robust regulatory framework, with adequate funding for marijuana industry oversight and enforcement, consumer protection and prevention and treatment programs for young people," said Task Force co-chair and governor's legal counsel Jack Finlaw. "The Task Force recommendations will now need to be perfected through the legislative process and rulemakings by various state agencies."

While there is some quibbling over the various recommendations and some concerns about what the legislature might do, Amendment 64 proponent (and now Marijuana Policy Project communications director) Mason Tvert said things were going pretty much as expected.

"The goal is to establish regulated retail stores that provide marijuana to adults, and we are steadily moving toward that," he said. "There are obviously lots of details to be worked out, and lots of different opinions on those details, but overall, we're moving in the direction of accomplishing our goal. There is debate over vertical integration, whether sales should be restricted to non-residents, the levels of sales tax -- these are all important issues, but overall things are going well, and we're well on our way to having a system of regulated marijuana cultivation and sales in Colorado."

Now, the Task Force recommendations are before a joint legislative committee charged with turning them into regulatory legislation. The committee had hoped to be done by the end of March, but progress has been slow, and the new deadline date is next week. If the committee meets that deadline, that will give the legislature as a whole exactly one month to craft and pass enabling legislation before the session ends.

The politicians are doing what they are supposed to do, said Tvert. There have been no real attempts to sabotage the will of the voters, and legislators are trying with good faith to implement Amendment 64.

"Generally, elected officials have been responsive," he said. "There have been some proposals for restrictions, but overall, they are moving forward to pass this. There is really nothing else they can do. For most Coloradans, this is going exactly as planned. For people in the industry, for advocates, for elected officials, there are lots of details being debated and it can feel like there's a lot of drama, but overall, everything's happening as it's supposed to."

The clock is ticking in Colorado. The voters have already voted to legalize marijuana. Either the legislature passes regulations to implement it -- and quite possibly puts anticipated taxes on the ballot, as required by state law for any new taxes -- and Colorado has legal, taxed and regulated marijuana commerce, or it simply has legal marijuana possession with no taxes and no regulations. The threat of the latter should be enough to ensure the success of the former.

The state of Washington has chosen its official marijuana consultant as it marches boldly forward toward implementing the voters' decision to legalize marijuana at the polls last November. The State Liquor Control Board, which is charged with overseeing the nascent legal marijuana business, announced Monday that it had selected a Massachusetts-based firm headed by academic drug policy analyst Mark Kleiman.

The firm, Botec Analysis Corporation, has been in existence since the mid-1980s and has won contracts to evaluate government programs and done consulting on drugs, crime, and public health. Botec advised the Office of National Drug Control Policy on demand reduction programs in the early 1990s and has studied efforts to suppress heroin dealing in Lynn, Massachusetts, among other projects.

Kleiman, a professor public policy at UCLA, has written a number of books on drug and criminal justice policy, including coauthorship of last year's primer, Marijuana Legalization: What Everyone Needs to Know. Some of his stands over the years, including the contention that states couldn't legalize marijuana because the federal government wouldn't allow it, have irked drug reformers, and some reacted with skepticism to news of the appointment.

Tom Angell, chairman of Marijuana Majority, told the Associated Press Kleiman needed to answer some questions. "You might ask him if he's either changed his mind or if he intends to advise the state on undermining the will of the voters," Angell said. Kleiman in turn responded on his blog.

The Liquor Control board sifted through more than 90 applications for the consultant position, and Botec outscored all comers. At this point, the decision is provisional; rejected applicants can challenge the selection, but if no one challenges or any such challenges fail, Botec is it.

Botec's job will be to advise the state on how build a newly legal industry from scratch. That's going to include such nuts-and-bolts issues on how many growers and retail outlets there should be, how products should be packaged, testing requirements, and even store hours of operation.

Meanwhile, all parties concerned are waiting for the federal shoe to drop. Stay tuned. This is going to be interesting.

On Monday, Nevada became the latest state to see a marijuana legalization bill filed this year. Assemblyman Joe Hogan (D-Las Vegas) introduced Assembly Bill 402, which would allow people 21 and over to possess up to one ounce of marijuana and would set up a system of state regulation and taxation of marijuana commerce.

Nevada now joins Maine, Maryland, Massachusetts, New Hampshire, Pennsylvania, Rhode Island, and Oregon as states where legalization bills have been or will be filed. A legalization bill died earlier this year in Hawaii, and one died last week in New Hampshire, but another New Hampshire legalization bill is still alive.

The Nevada bill expressly does not allow driving while impaired, does not require employers to accept marijuana use, and limits legalization to those 21 and over.

Marijuana has already been legalized by voters in Colorado and Washington, and the Alaska courts have recognized a privacy right allowing for the possession of small amounts of marijuana in one's home. Marijuana remains illegal under federal law.

Hogan told the Las Vegas Review-Journal he introduced the bill because of what he called the persecution of young people.

"I think it's better than chasing young kids around the neighborhoods, endlessly, and damaging them," he said. "We've been wasting terrible amounts of money on these completely unsuccessful law enforcement techniques. I think it's time to get serious, get it fixed and move on."

Hogan said that marijuana legalization would raise badly needed money for the state's education system. It envisions excise taxes on both wholesale and retail sales of marijuana and marijuana products.

"There's enough tax money in this line of products to properly and fully support education in the state of Nevada, which we have failed to do for a number of years," Hogan said.

The bill is the brainchild of Dr. Steven Frye, a retired Las Vegas psychiatrist and marijuana legalization activist. Frye told the Review-Journal legalization could generate as much as $500 million a year in tax revenues.

"It's a big tourist issue," he said. "And we create green jobs in Nevada growing, processing and selling it."

Vermont has become the latest state to see a marijuana legalization bill filed this year. House Bill 499, "An Act Relating to Regulation and Taxation of Marijuana," was introduced to the House and assigned to the House Judiciary Committee on Tuesday.

The bill is sponsored by Reps. Susan Davis (P-Washington), David Deen (D-Westminster), James Masland (D-Thetford), William Stevens (I-Shoreham) and Teo Zagar (D-Barnard).

It would allow people 21 and over to possess up to two ounces of marijuana and grow up to three plants. The bill also legalizes the possession of pot paraphernalia. It would also "create a regulatory structure for the wholesale and retail sale of marijuana that includes licensing and oversight by the Department of Liquor Control." The bill envisages a $50 per ounce excise tax on commercial marijuana sales.

People who possess more than two ounces or three plants or who sell marijuana outside regulated commercial channels would still be subject to criminal penalties.

And the bill would allow industrial hemp production in accordance with existing state law "regardless of whether federal regulations have been adopted."

Colorado and Washington freed the weed in November, and marijuana legalization bills have been or will be introduced this year in Maine, Massachusetts, New Hampshire, Pennsylvania, Rhode Island, and Oregon. A legalization bill died earlier this year in Hawaii, and one died this week in New Hampshire, but another New Hampshire legalization bill is still alive.