Tag: legalized marijuana

State-Licensed Pot Suppliers Say Federal Prohibition Is Unconstitutional As Applied to Them

A lawsuit filed late last month in the U.S. District Court for the District of Massachusetts argues that the federal marijuana ban is unconstitutional as applied to the intrastate operations of state-licensed cannabis suppliers. That claim is similar to one that the U.S. Supreme Court decisively rejected in the 2005 case Gonzales v. Raich, which involved state-authorized medical use of marijuana. But the plaintiffs in Canna Provisions v. Garland—a pot shop chain and three other Massachusetts marijuana businesses—argue that several developments since then undermine the logic of that ruling.

In the 2005 case, Angel Raich and Diane Monson, two patients who used marijuana for symptom relief in compliance with California law, argued that Congress exceeded its authority “to regulate commerce…among the several states” when it purported to ban noncommercial production and possession of cannabis that never crossed state lines. Monson grew her own marijuana, while Raich relied on two caregivers who grew it for her.

It may seem obvious that the power to regulate interstate commerce does not cover conduct that is neither commercial nor interstate. But the Supreme Court had held otherwise in the 1942 case Wickard v. Filburn, which involved an Ohio farmer who exceeded his wheat quota under the Agricultural Adjustment Act of 1938. Although Roscoe Filburn planned to use the extra wheat “wholly for consumption on the farm,” the Court unanimously ruled that the collective impact of such decisions on interstate commerce was enough to justify the rule he violated.

When farmers grow wheat for their own consumption, the justices reasoned, that has “a substantial influence” on the interstate “price and market conditions” that Congress sought to regulate. “Even if appellee’s activity be local and though it may not be regarded as commerce,” Justice Robert H. Jackson wrote for the Court, “it may still, whatever its nature, be reached by Congress if it exerts a substantial economic effect on interstate commerce.”

Writing for the majority in Gonzales v. Raich, Justice John Paul Stevens applied similar reasoning to the federal ban on marijuana. “Our case law firmly establishes Congress’ power to regulate purely local activities that are part of an economic ‘class of activities’ that have a substantial effect on interstate commerce,” Stevens wrote. Wickard, he said, “establishes that Congress can regulate purely intrastate activity that is not itself ‘commercial,’ in that it is not produced for sale, if it concludes that failure to regulate that class of activity would undercut the regulation of the interstate market in that commodity.”

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Congressional Researchers Warn That High Federal Marijuana Taxes Could Inhibit Industry’s Economic Potential

As the Biden administration’s marijuana scheduling review continues, the Congressional Research Service (CRS) has released a report cautioning that if cannabis is eventually legalized, lawmakers should consider the potential unintended consequences of imposing high federal taxes on marijuana products.

The non-partisan research body isn’t necessarily suggesting that federal legalization is imminent, but it pointed out that there are a number of comprehensive reform proposals that Congress may consider as the Drug Enforcement Administration (DEA) completes its scheduling review and decides whether to follow the recommendation of the U.S. Department of Health and Human Services (HHS) by moving marijuana to Schedule III of the Controlled Substances Act (CSA).

As it argued in another recent report, CRS said it’s “likely that DEA will reschedule marijuana according to HHS’s recommendation,” based on past precedent. Meanwhile, lawmakers have put forward several federal legalization proposals that could expand on that incremental change, including legislation that would tax and regulate cannabis.

“Recreational marijuana’s potential economic effects may be a factor in any congressional actions on the substance,” the report says, caveating that federal data on the topic is limited given the ongoing prohibition of cannabis. Congress could collect additional data if it moved to require agencies like the Bureau of Labor Statistics (BLS) and Bureau of Economic Analysis (BEA) to start gathering such material, it said.

While federal data is generally limited, the U.S. Census Bureau did recently release its first report on state-level marijuana tax revenue following what the agency calls “a complete canvass of all state agencies” going back to July 2021.

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Top GOP Ohio Lawmakers And Prohibitionist Groups Push To Overturn Voter-Approved Marijuana Legalization Initiative Or Amend Key Provisions

Top Republican Ohio lawmakers and prohibitionist groups are already plotting ways to water down a marijuana legalization law that voters approved at the ballot on Tuesday, with some proposing changes to specific provisions like tax revenue allocations and others floating an outright repeal.

The legalization initiative passed with about 57 percent of the vote, making Ohio the 24th state in the country to end prohibition, despite calls to reject the measure from the governor and leading lawmakers. Now that the statutory amendment has been approved, however, the message from opponents has been consistent: they plan to relitigate the issue in the GOP-controlled legislature.

“This statute was written by the marijuana industry and should not be treated as a cash grab for their cash crop at the expense of a state trying to emerge from the opioid epidemic,” Senate President Matt Huffman (R) said in a statement following the vote. “The General Assembly may consider amending the statute to clarify the questionable language regarding limits for THC and tax rates as well as other parts of the statute.”

The plan isn’t surprising, as Huffman said last month that the measure would be “coming right back before this body” for lawmakers to amend if voters approved it. The Senate president said in advance of Election Day that he wouldn’t seek to repeal the legalization law entirely but would instead “advocate for reviewing it and repealing things or changing things that are in it.”

House Speaker Jason Stephens (R) also released a statement on Tuesday, asserting that “now is the time for the legislature to lead on how best to allocate tax revenues while responsibly regulating the industry.”

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Ohio Voters Approve Marijuana Legalization Ballot Initiative, Making It The 24th State To End Prohibition

Ohio voters approved a ballot initiative to legalize marijuana on Tuesday, making the state the 24th in the U.S. to end prohibition.

The measure, campaigned for by the Coalition to Regulate Marijuana Like Alcohol (CTRMLA), establishes a regulatory framework to allow adults 21 and older to purchase, possess and cultivate cannabis. Recent surveys signaled it was in a strong position to pass—in spite of opposition from the governor and GOP state lawmakers.

“Marijuana is no longer a controversial issue,” Tom Haren, spokesperson for the campaign, told Marijuana Moment. “Ohioans demonstrated this by passing State Issue 2 in a landslide. Ohioans are being extremely clear on the future they want for our state: adult-use marijuana legal and regulated.”

Voters were presented with summary language for the initiative—designated as Issue 2—that says the measure will legalize and regulate “the cultivation, processing, sale, purchase, possession, home grow, and use of cannabis by adults at least twenty-one years of age.”

“A broad, bipartisan and diverse array of Ohioans spoke clearly tonight,” Ohio Rep. Casey Weinstein (D), who has championed legalization in the legislature, told Marijuana Moment on Tuesday. “The time to legalize marijuana has come. I hope the leaders in the legislature will heed their call and honor the will of the vote.”

Under the approve measure, the legalization of possession of up to 2.5 ounces of marijuana and cultivation of up to six plants (or 12 if two or more adults live in the same household) will become effective on December 7. Officials must get rules in place to start approving licensed retailers within nine months of the effective date.

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Connecticut To Double Limit on Weed Purchases

Connecticut’s cannabis regulatory agency announced last week that it is increasing the amount of cannabis that can be bought in a single transaction by doubling the state’s limit on recreational marijuana purchases. Under the new regulations approved by the Connecticut Department of Consumer Protection (DCP), adult-use cannabis consumers will be permitted to purchase up to a half-ounce (about 14 grams) of cannabis flower or its equivalent beginning next month. 

The limit on purchases of medical marijuana has not been changed. It remains at 5 ounces of cannabis flower or the equivalent monthly, with no limits on purchases in a single transaction.

The DCP noted in a statement that the decision to increase the limit on adult-use cannabis purchases was made based on an ongoing analysis of supply and demand in Connecticut’s regulated cannabis market. The agency also said that the limit will continue to be reviewed over time, adding that the caps are in place to help ensure an adequate supply of cannabis for both adult-use consumers and medical marijuana patients.

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Traffic Death Rates Fell In States That Legalized Marijuana, New Study Finds, While Those That Kept Criminalization Saw ‘Slight Increase’

States that legalized marijuana in 2016 saw meaningful declines in traffic fatalities during the years immediately following the policy change, according to a new study by Quartz Advisor. Takeaways were less clear, however, over a longer period of time that included years the report describes as “anomalies” nationwide.

Ultimately, the paper concludes, motor vehicle safety “should not be a significant concern for marijuana legalization initiatives,” especially when measured against alcohol.

“As of yet, studies have failed to show that legalization of cannabis has resulted in any significant increase in traffic fatalities in the places where it has been legalized,” it says. “However, the same cannot be said for alcohol, an intoxicant that remains legal, widely available, and deeply ingrained in our culture.”

In states that legalized marijuana, “traffic fatalities declined or remained the same in the three years that followed, compared to a slight increase in states where it remained illegal.”

The findings, which are not peer-reviewed, examined traffic fatality data from four states that legalized adult-use cannabis in 2016: California, Maine, Massachusetts, and Nevada. Quartz Advisor then compared those states’ vehicle death rates to the national average as well as to rates in five states where marijuana remained illegal during that period: Idaho, Indiana, Kansas, Nebraska, and Wyoming.

In the three years following the change, the report says, none of the four legalized states saw an increase in traffic deaths. Most, in fact, saw declines.

“Three of four the four states saw a significant decrease in vehicle deaths over that span,” the paper says, “while the rate in Maine showed no change. Massachusetts saw the biggest drop, as rates fell 28.6 percent in the three years following legalization.”

Combined, the four states that legalized marijuana saw an 11.6 percent drop in traffic death rates from 2016 to 2019. That’s a sharper decline than the national average, which fell 10.6 percent over the same period.

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Home Values Have Increased Significantly More In States That Legalized Marijuana Than Those That Kept Criminalization, Real Estate Study Finds

Home values have grown at a significantly higher rate in states that have legalized marijuana compared to non-legal states over the past decade—with the average price of a home in a legalization state now 41 percent higher than those that have continues to criminalize cannabis—according to a new report on real estate trends.

The study from Real Estate Witch and Leafly explored average home prices from 2014 to 2023, looking at the potential impact of regulated cannabis access for medical or recreational purposes on real estate value.

The analysis found that, during the time period reviewed, the average price of a home in states that had legalized for adult use appreciated by $185,075 since 2014, versus $136,092 in non-legal states. The average home value in a recreational state reached $417,625, while non-recreational state home prices averaged out at $295,338—a 41 percent difference.

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Budtender At New York City’s First Legal Cannabis Store Jailed On Marijuana Charges

An employee of the city’s first legal marijuana dispensary is being held on Rikers Island on a cannabis-related felony charge in a striking example of how pot, despite being legal in New York state, can still drag people into the criminal justice system as it remains illegal under federal law and those of several states.

When police pulled over 33-year-old Jumal George in Brooklyn on October 11 as he was driving to a friend’s house after a shift as a lead budtender at the Housing Works Cannabis Co., they found he was driving without a license—and that he had a warrant against him in Pennsylvania. The charges there stemmed from several cannabis-related charges he was arrested for back in 2021.

His fiancée, Audra Ramos, told THE CITY that he had left his license at home. “A little mistake was made, but he was fixing it,” she said, noting that George had made trips back to Pennsylvania to deal with the charges there but missed a hearing after one of the dates was moved up suddenly last year. That’s when the warrant was issued.

When police pulled him over in New York, George was detained. Two days later, he was sentenced to seven days at Rikers for the license charge.

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Missouri NAACP Threatens Lawsuit To Stop Marijuana Social Equity Arrangements That ‘Defraud’ The State

James Harnden has been a longtime activist for cannabis legalization, ever since he got slapped with a low-level felony possession charge for having an ounce of weed.

The 56-year-old Rockford, Illinois, resident says that charge has cost him job opportunities for 30 years.

Earlier this year, he saw an advertisement in the Craigslist “gigs” section posted by a Michigan cannabis real estate group called Canna Zoned MLS. It was looking for “partners who qualify as a social equity applicant” to participate in Illinois’s lottery to award cannabis business licenses that are, in part, meant to benefit people impacted by marijuana criminalization.

“I spent most of my life applying for jobs and not getting them,” Harnden said. “So I’m like, ‘Okay, so maybe one of these licenses will swing my way.’”

The Craigslist ad read: “If you are eligible and provide the required documentation, we will give you $2,000, just for helping us submit the lottery application! If we win the lottery and secure a license, we will give you an additional $20,000!”

Harnden says what he didn’t realize was that he signed a contract agreeing to hold 100 percent ownership interest on the application, but that he wouldn’t get revenue or profits from the business. After the business passed through all the state and municipal approvals, the contract stated that Harnden would be required to sell his share of the business for $1 to the group or be held in breach of contract.

The contract also authorized the group to enter Harnden’s information into lotteries for social equity cannabis licenses in other states—and that’s how Harden says he got paid $500 to be part of the lottery for Missouri’s microbusiness license program.

Harnden was eligible to apply in Missouri because of his marijuana charge, which is among seven eligibility categories that also includes living in census tracts with high poverty and unemployment rates. Canna Zoned’s Jeffrey Yatooma is listed as the “authorized agent” on the contract Harnden provided to The Independent, leaving a space for his signature at the bottom.

Yatooma secured two of the 16 social equity cannabis licenses—in Columbia and Arnold—issued earlier this month, according to information obtained by The Independent through a public records request. Those records show Yatooma is listed as the “designated contact” for 104 out of the 1,048 applications for dispensary licenses in Missouri’s lottery.

Yatooma’s group was not the only one using the strategy of flooding Missouri’s lottery with applications to obtain a dispensary license. An Arizona-based consulting firm is connected to more than 400 dispensary applicants, including six winners, and a Missouri firm is connected to more than 80 applicants and two winners. Both said their clients did not advertise or promise payment for submitting applications.

In at least three states holding lotteries for social equity cannabis licenses this year—Illinois, Maryland and Missouri—Yatooma’s group has offered to pay eligible people up to $2,000 to apply on their behalf and $20,000 more if they won.

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Colorado Marijuana Retailers Have 99% Compliance Rate In Underage Sales Checks, State Regulators Say

Colorado marijuana regulators announced this week that out of 285 underage sales checks conducted at state-licensed cannabis stores this year, there have been only four failures—a compliance rate of about 99 percent.

“While any failure is unacceptable,” the Colorado Department of Revenue’s Marijuana Enforcement Division (MED) said in the latest issue of its quarterly In the Weeds newsletter on Monday, “we’re pleased to report this very high compliance rate which is on par with the compliance percentage from 2022.”

Records from the state’s underage sales dashboard show an underage sales check compliance rate of 99 percent in 2022, which was a record high. Compliance rates were 95 percent in 2021, 97 percent in 2020 and 2019, 92 percent in 2018, 95 percent in 2017 and 94 percent in 2016.

“MED’s priority is protecting public health and safety, and nothing is more important than preventing youth access to regulated marijuana,” the agency said in the email. “While the data continually shows us that minors are overwhelmingly not getting marijuana from regulated stores, underage sales checks of licensed stores are a vital tool to keep it that way.”

Records of individual sales checks are listed on the MED dashboard, but none from 2023 are currently included. A Department of Revenue representative told Marijuana Moment that’s because “entries only appear in the dashboard once the administrative action has reached a final disposition,” which can take anywhere from a few months to more than a year after the initial violation.

Colorado requires that people show ID before they enter a Colorado cannabis shop and before making a purchase. MED has said retailers should also be aware of actions they must take if they suspect an employee is violating the rules or if a person presents fraudulent identification.

Colorado also has a training and certification program from dispensaries to receive a “Responsible Vendor” designation, which is meant to encourage compliance and also promote consumer transparency.

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