Marijuana Industry

Colorado voters made history Tuesday night, passing a constitutional amendment to legalize, tax, and regulate marijuana and becoming the first state in the US to break with marijuana prohibition. Hours later, voters in Washington state followed suit, passing a legalization initiative there, but a similar effort in Oregon came up short.

Even though marijuana legalization didn't achieve a trifecta, two states have now decisively rejected marijuana prohibition, sending an electrifying message to the rest of the country and the world. Tuesday's election also saw a medical marijuana initiative pass in Massachusetts, a sentencing reform initiative pass in California, and a limited legalization initiative pass in Detroit. Medical marijuana initiatives failed in Arkansas and Montana. [Editor's Note: Look for Chronicle news briefs soon on the election results we have yet to publish stories on.]

"The victories in Colorado and Washington are of historic significance not just for Americans but for all countries debating the future of marijuana prohibition in their own countries," said Ethan Nadelmann, executive director of the Drug Policy Alliance. "This is now a mainstream issue, with citizens more or less divided on the issue but increasingly inclined to favor responsible regulation of marijuana over costly and ineffective prohibitionist policies."

According to the Colorado secretary of state's office, Amendment 64 was leading comfortably with 55% of the vote, compared to 45% voting "no." But an early lead was enough for Amendment 64 supporters and foes alike to call the victory. Rising excitement at Casselman's, the downtown Denver bar where campaign supporters gathered, turned to gleeful pandemonium as Colorado media began calling the result little more than two hours after the polls closed.

"Colorado voters have decided to take a more sensible approach to how we deal with marijuana in this state," said Mason Tvert, director of the Campaign to Regulate Marijuana Like Alcohol, which had brought together state marijuana reform groups such as SAFER and Sensible Colorado with national reform organizations such as the Marijuana Policy Project, Drug Policy Action, and Law Enforcement Against Prohibition in a well-organized and well-funded winning campaign.

"Today, the people of Colorado have rejected the failed policy of marijuana prohibition," said Sensible Colorado's Brian Vicente. "Thanks to their votes, we will now reap the benefits of regulation. We will create new jobs, generation million of dollars in tax revenue, and allow law enforcement to focus on serious crimes. It would certainly be a travesty if the Obama administration used its power to impose marijuana prohibition upon a state whose people have declared, through the democratic process, that they want it to end."

"I'm so happy we not only did this, we did it right," said MPP's Steve Fox, who had worked closely with Tvert, Vicente, and Yes on 64 spokesperson Betty Aldworth to bring the effort to fruition. "Now, it is legal in the state constitution to possess and grow marijuana. It can't be repealed on a whim; it is permanent. Thirty days from now, any veteran -- any person -- in this state can use marijuana."

"Colorado is the starting point, the tipping point, but it's not the end point," vowed MPP executive director Rob Kampia, who promised to take the effort to more states in the future.

Gov. John Hickenlooper (D), a staunch opponent of Amendment 64, conceded its victory as well Tuesday night. "The voters have spoken and we have to respect their will," he said in a statement. "This will be a complicated process, but we intend to follow through. That said, federal law still says marijuana is an illegal drug, so don't break out the Cheetos or goldfish too quickly."

According to the Washington secretary of state's office , as of 9:28pm Pacific time Tuesday, Initiative 502 was holding a comfortable lead of 55% to 45%. Sponsored by New Approach Washington, the initiative had excited opposition among segments of the pot-smoker and medical marijuana communities, but created a carefully crafted and financially well-backed campaign featuring a series of establishment endorsers.

I-502 legalizes the possession of up to an ounce of marijuana by adults 21 and over, but does not allow for personal cultivation, except by or for medical marijuana patients. It will license marijuana cultivation and retail and wholesale sales, with restrictions on advertising. Regulation will be the remit of the state liquor control board, which will have to come up with rules by December 2013. The measure creates a 25% excise tax on marijuana sales, with 40% of revenues dedicated to the general fund and 60% dedicated to substance abuse prevention, research, and healthcare. It also creates a per se driving under the influence standard of 5 nanograms of THC per milliliter of blood.

By contrast, Colorado's Amendment 64 allows adults 21 and over to possess up to an ounce of marijuana or six marijuana plants, three of which can be mature. It will create a system of state-licensed cultivation, manufacturing, and testing facilities and state-licensed retail stores. Local governments would have the option of regulating or prohibiting such facilities. The amendment also requires the state legislature to enact legislation governing industrial hemp cultivation, processing, and sale, and to create an excise tax on wholesale marijuana sales. The first $40 million of that annual revenue will be dedicated to building public schools.

"Marijuana policy reform remains an issue where the people lead and the politicians follow, but Washington state shows that many politicians are beginning to catch up," said Nadelmann, noting that the Obama administration had failed to denounce the initiatives. "That bodes well, both states' prospects of implementing their new laws without undue federal interference."

In Oregon, Measure 80, the Oregon Cannabis Tax Act (OCTA), didn't fare so well. As of 11:30pm Pacific time, it was losing 45% to 55%, with 69% of the vote counted.

It came late to the ballot compared to the efforts in Colorado and Washington, could not demonstrate majority support in polls, and, as a result, did not manage to attract substantial funding from outside donors, sealing its fate.

But despite the loss in Oregon, when it comes to passing groundbreaking marijuana legalization initiatives in the United States, two out of three ain't bad.

Support for marijuana legalization in British Columbia has reached a whopping 75%, according to a new Angus Reid poll commissioned by Stop the Violence BC, a coalition of law enforcement officials, legal experts, medical and public health officials and academic experts concerned about the links between cannabis prohibition in British Columbia and the growth of organized crime and related violence in the province.

The poll surveyed 799 respondents in British Columbia. The results have a margin of error of +/-  3.5%.

The number supporting legalization is up six points over last year's Angus Reid poll, where 69% supported it. Meanwhile, opposition to legalization has declined from 24% last year to 21% this year.

The new poll also suggested a broad social acceptance of marijuana in Canada's westernmost province, which has been a hotbed of marijuana cultivation and culture for several decades now. Only 14% of those polled believe possession of a joint should lead to a criminal record, down six points from last year, and 74% would be comfortable living in a society where adult cannabis consumption was taxed and legally regulated under a public health framework, an increase of four percentage points from last year.

Strikingly, support for full legalization was higher than support for the half-measure of decriminalization. While 75% supported legalization, only 62% wanted decriminalization.

"From a scientific and public safety, making cannabis illegal has clearly been an expensive and harmful failure," said Dr. Evan Wood, founder of Stop the Violence BC and Canada Research Chair in Inner City Medicine at the University of British Columbia. "With 75% of British Columbians supporting change, and the status quo contributing to increasing harms in BC communities, it is absolutely time for politicians to catch up with the public."

Stop the Violence BC has been pushing for the legalization and regulation of marijuana. Its members include four former BC attorneys general, four former Vancouver mayors, including Larry Campbell, and former West Vancouver police chief and Liberal member of the provincial legislature Kash Heed.

The campaign is picking up steam. In September, the Union of BC Municipalities passed a resolution called for marijuana regulation, and last month, the Public Health Association of BC (PHABC) endorsed regulation.

"From a public health perspective, we urgently need to research alternatives to our current approach to cannabis which has clearly failed to protect public health and has actually resulted in substantial individual and community harms," PHABC president Dr. Marjorie MacDonald said in a statement.

We are now only five days away from Election Day, and it's starting to look very much like at least one state will vote to legalize marijuana, possibly two, and, if the gods are really smiling down, three. It's also looking like there will soon be at least one more medical marijuana state, and like California will finally reform its three strikes sentencing law.

There are also local initiatives on the ballot in California, Massachusetts, and Michigan, including a Detroit initiative that would legalize the possession of up to an ounce at home by adults. And there are races for elected office that merit watching, the most interesting of which is probably former El Paso city councilmember and legalization supporter Beto O'Rourke, who is running for Congress. O'Rourke already knocked off Democratic incumbent drug warrior Sylvestre Reyes in the primary and appears ready to cruise to victory Tuesday.

The Chronicle will be in Denver election night for what we hope is the making of history. On Tuesday night and into the wee hours Wednesday morning, we will be posting relevant election results as fast as we can get our hands on them. In the meantime, here's what we'll be watching:

Marijuana Legalization Initiatives

Colorado -- Amendment 64 would allow adults 21 and over to possess up to an ounce of marijuana or six marijuana plants, three of which could be mature. It would create a system of state-licensed cultivation, manufacturing, and testing facilities and state-licensed retail stores. Local governments would have the option of regulating or prohibiting such facilities. The amendment would also require the state legislature to enact legislation governing industrial hemp cultivation, processing, and sale, and to create an excise tax on wholesale marijuana sales. The first $40 million of that annual revenue would be dedicated to building public schools.

Amendment 64 has been hovering right around 50% in recent polls, but was at 53% with only 5% undecided in the most recent poll. The final push is on. The Chronicle will be reporting from Denver Tuesday night.

Oregon -- Measure 80, the Oregon Cannabis Tax Act (OCTA), would create an Oregon Cannabis Commission to regulate the cultivation and sale of marijuana, but not industrial hemp, which would be allowed, but not regulated by the commission. The commission would grant licenses to cultivate marijuana for sale to it by "all qualified applicants" and would sell marijuana at state retail stores at prices it determines. Medical marijuana patients would have their medicine provided at cost. OCTA would supersede all state and local laws regarding marijuana, except for impaired driving laws, leaving personal possession and cultivation by adults unregulated.

Measure 80, which came late to the ballot and which has been chronically underfunded since making the ballot, has trailed consistently in the polls. The most recent poll had it losing 42% to 49%, but the campaign bravely says the polls are undercounting supporter and it can still win.

Washington -- Initiative 502 would legalize the possession of up to an ounce of marijuana by adults 21 and over, but does not allow for personal cultivation, except by or for medical marijuana patients. It would license marijuana cultivation and retail and wholesale sales, with restrictions on advertising. Regulation would be the remit of the state liquor control board, which would have to come up with rules by December 2013. The measure would create a 25% excise tax on marijuana sales, with 40% of revenues dedicated to the general fund and 60% dedicated to substance abuse prevention, research, and healthcare. It would create a per se driving under the influence standard of 5 nanograms of THC per milliliter of blood.

The I-502 campaign has raised more than $5 million and assembled an all-star cast of establishment law enforcement and political endorsers. Polling almost universally at more than 50%, this looks like an even better shot for legalization to pass than Colorado.

Medical Marijuana

Arkansas -- The Arkansas Medical Marijuana Act would allow patients suffering from specified diseases or medical conditions to use marijuana with a doctor's recommendation. It envisions a system of state-licensed nonprofit dispensaries, and would allow patients or their caregivers to grow their own only if they are not within five miles of a dispensary. In that case, patients could grow up to six flowering plants. Patients could possess up to 2 ½ ounces of marijuana.

Known as Issue 5 on the ballot, the Arkansas initiative is the first one in the South, and if it wins, it would be the first southern state to embrace medical marijuana. But the most recent polls have rising opposition. Issue 5 was in a virtual dead heat with a 47% to 46% lead in late July, but last week, the same pollster had it trailing 38% to 54%.

Massachusetts -- Question 3 would allow people suffering from a debilitating medical condition to use medical marijuana upon the recommendation of a doctor with whom they have a bona fide relationship. Patients could possess up to a 60-day supply -- what constitutes that supply will be determined by the Department of Health. The initiative would also set up a system of nonprofit medical marijuana cultivation and distribution centers.

While vocal opposition has arisen in the final weeks of the campaign, Question 3 has enjoyed a commanding lead throughout and appears well-placed to join the ranks of Northeastern medical marijuana states on Tuesday.

Montana -- Initiative Referendum 124 would undo the gutting of the state's medical marijuana program through the passage last year of Senate Bill 423. That bill replaced the voter-approved medical marijuana program, which allowed for dispensary sales, with a new scheme that limited providers to serving only three patients, prohibited providers from accepting anything of value in exchange for products or services, granted local governments the power to regulate providers, tightened standards for demonstrating chronic pain, and demanded reviews of doctors who certified more than 25 patients in a one-year period.

The campaigners behind IR-124 are in the unique position of hoping it loses. That's because a "yes" vote endorses the legislature's gutting of the state's medical marijuana law last year, while a "no" vote rejects it and restores the voter-approved 2004 law. Polling has been scarce, but one recent poll had IR-124 losing (and more access to medical marijuana winning) with 44% of the vote.

Sentencing

California -- Proposition 36 would reform the state's three strikes law, which allows a life sentence for a third felony conviction. The measure would allow life sentences only if the new felony conviction is "serious or violent," authorize re-sentencing for lifers if their third conviction was not "serious or violent" and if a judge determines their release would not pose an unreasonable risk to public safety, allow life sentences if the third conviction was for "certain non-serious, non-violent sex or drug offenses or involved firearm possession," and keep the life sentence for felons whose previous convictions were for rape, murder, or child molestation. If approved by voters, some 3,000 three strikes lifers could seek reductions.

This stealth initiative has gone almost unnoticed amidst a plethora of other state-level initiatives, but appears poised to win. Of four recent polls, three had it at 63% or higher, while the only poll in which it wasn't over 50% had it leading 44% to 22%, with a huge 34% undecided.

Local Initiatives

California -- A number of towns, mostly in the San Diego area, will vote on local initiatives to allow medical marijuana dispensaries. Those include Del Mar, Imperial Beach, Lemon Grove, and Solana Beach, as well as Palo Alto. The town of Dunsmuir will vote on whether to loosen cultivation regulations.

Colorado -- Fort Collins will be voting on whether to overturn the ban on dispensaries voted in last November, and Berthoud will be voting on whether to allow dispensaries.

Massachusetts -- In a continuation of work done in the past six election cycles, voters in a number of legislative districts will be asked a non-binding public policy question. In the First Essex and Middlesex Senate District, the Eighth Essex House District, and the Twenty-Second Essex House District voters will be asked whether they support repeal of the "federal prohibition of marijuana, as the 21st Amendment repealed national prohibition of alcohol, so that states may regulate it as they choose?" Voters in the Second Middlesex Senate District, the Middlesex and Suffolk Senate District, and the Second Berkshire House District will answer a similar question.

Michigan -- Voters in Detroit and Flint will vote on marijuana legalization initiatives, voters in Grand Rapids will vote on decriminalization, Kalamazoo will vote on an initiative to allow dispensaries, and Ypsilanti will vote on a lowest law enforcement priority initiative.

Drug Policy and the Presidential Election

Drug policy has pretty much been a non-issue in the presidential campaign. The one place where marijuana policy positions could influence the statewide electoral outcome is Colorado. Marijuana is a big issue in the state, not only because Amendment 64 is on the ballot, but also because of the ongoing war of attrition waged against dispensaries there by the DEA and the US Attorney. (The Colorado Patient Voters Project tracks federal activity against medical marijuana in the state, as does our own Medical Marijuana Update series, accessible with other relevant reporting in our medical marijuana archive section.)

And it's a tight race where one third party candidate in particular, Gary Johnson, is making a strong run and exploiting his popular legalization position on marijuana. While the Real Clear Politics average of Colorado polls has Obama up 48.2% to Romney's 47.7%, the race tightens up when Johnson is included in the polls, even though who he hurts more varies from poll to poll.

If Obama loses Colorado, be prepared for the argument that he did so at least in part because of his poor positions on marijuana.

(This article was published by StoptheDrugWar.org's lobbying arm, the Drug Reform Coordination Network, which also shares 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.)

There will be no national "weed pass" for marijuana consumers in the Netherlands. The Associated Press has reported that the new Dutch coalition government has agreed on a provisional governing pact that kills the "weed pass" plan proposed last year by the then-ruling conservatives, but gives cities the option of banning foreigners from the country's famous cannabis cafes.

With the "weed pass" proposal, foreigners were to have been banned from the cannabis cafes nationwide as of next year, and Dutch nationals would have been required to register with the state to obtain a permit (the "weed pass") to be able to purchase marijuana at the cafes. The plan had already gone into effect in some border cities.

It was touted as reducing "drug tourism" and associated nuisances in border towns. But since it was put in place in selected border towns, some cannabis cafes have closed in protest, while reports of increased street dealing have been on the increase.

Under the governing pact between left-leaning Labor and the conservative VVD, the government says it wants only Dutch citizens to have access to the cafes, but leaves enforcement up to the cities. The city of Amsterdam, among others, has already rejected the "weed pass" idea, saying it would hurt tourism.

Some cannabis café owners told the AP they are satisfied that the country's policy of pragmatic tolerance toward will remain intact, but others said the proposed deal lacked clarity.