The United States of Weed

IF IT SEEMS like a new state is legalizing cannabis nearly every week, don’t worry, you’re not high — states are indeed allowing adult-use of the drug at an unprecedented pace. If the wave of green legislation is slowing to some degree now, that’s only because so many states have already taken action. That doesn’t mean the wave will stop. Since our last update two years ago, numerous states have passed recreational or medical laws. At the same time, setbacks have come as ballot initiatives have been rejected. In other instances, lawmakers and certain governors remain steadfast in their opposition to pot. 

It’s now a question of when, not if, politicians in Washington, D.C., will get with the program and decide to do what the majority of Americans support by passing legislation to end federal prohibition once and for all. In 2022, Politico reported that over 155 million Americans lived in a legal cannabis state after the November 2022 Election Day results — inching closer to 50 percent of the population. In the meantime, states are continuing to prime themselves to legalize the drug, either for medicinal use, recreational use, or both. Here’s where things stand is all 50 of them.

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How ‘equity’ ruined cannabis legalization in New York

New York’s legal weed experiment is going about as poorly as possible.

Earlier this week, the state finally signed off on a handful of new dispensary licenses, a full two years after legalization.

Illegal pot shops, meanwhile, have gotten so common — and so attractive to criminals — that Gov. Hochul has asked Albany to approve five-figure fines and tough enforcement powers to help shut them down.

It remains to be seen whether any state can legalize marijuana without serious downsides.

But New York’s attempt has been particularly disastrous.

This is in large part because rather than prioritizing tax revenue or public health in the legalization process, Albany put progressive-tinged “social justice” strategies front and center in its policy design.

They admit as much.

Hochul has emphasized that New York State’s marijuana industry will benefit those who committed crimes under prohibition.

The state’s Office of Cannabis Management has said that “social and economic equity” is a “major focus” of legalization.

And the New York City Mayor’s Office promised to put equity “at the center” of the budding industry. You get the idea.

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NBA Takes Steps to Ease Cannabis Restrictions: This Week in Cannabis Investing

The NBA took a major step forward this week by allowing players to invest in and promote cannabis brands. 

Michele Roberts, a former executive director of the NBA Players Association and now a member of the board of directors at Cresco Labs (CRLBF(opens in new tab)), previously predicted that NBA would consider changing its policies around cannabis. 

As of the terms listed in the leagues’ new collective bargaining agreement, cannabis will also be removed from the banned substances list for players. This is a welcome change for a cannabis industry seeking additional sources of capital while it continues to erode the old-world stigmas created by previous generations. 

We’ve seen a number of professional athletes getting involved in the cannabis industry after their sports careers. They are a group that is keen on the benefits cannabis provides for pain and inflammatory management, and many are also passionate about making a difference. Former NBA veteran Al Harrington’s Viola Brands(opens in new tab) immediately comes to mind as a trailblazer here. We’re excited to welcome more athletes, especially those as passionate about building their brands and business ventures as they are about their active profession.

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Michigan Republican admits to taking bribes while overseeing state medical cannabis board

A former Michigan House speaker was indicted along with two lobbyists and a medical marijuana business owner as part of a bribery scheme.

Rick Johnson, the Republican former House speaker and chairman of the state medical marijuana licensing board from 2017 to 2019, was charged with accepting bribes, while registered lobbyists Brian Pierce and Vincent Brown were charged with conspiracy to commit bribery and John Dalaly, who had sought a business license, was charged with payment of bribes, reported the Detroit Free Press.

“Unfortunately, a small percentage (of public officials) abuse the public trust,” said James Tarasca, special agent in charge of the FBI in Michigan. “Public corruption is a top criminal priority for the FBI. Public corruption erodes confidence and undermines the strength of our democracy.”

James Totten, the U.S. attorney for the Western District of Michigan, said a five-year investigation determined that Johnson was the “heart” of the bribery scheme that involved more than $100,000 in cash payments from companies and lobbyists seeking licenses from the board he led.

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Illegal Cannabis Growers Still Thrive in California, Stealing Legal Business

The legalization of recreational cannabis in the state of California has reportedly neither led to a downturn in illegal business nor has it relieved stress on law enforcement.

As it turns out, illegal cannabis growers have only thrived since California legalized the recreational use of the drug in 2016, stealing business from legal sellers at half the price due to the lack of regulation or taxation.

“The illegal industry is competing with the legal industry and essentially putting them out of business,” Sgt. James Roy of the Riverside County Sheriff’s Department told Fox News.

Roy, who heads the department’s cannabis eradication team, had recently raided an illegal farm in Riverside County that had four massive white tents, colloquially known as “hoop houses,” containing $1.5 million in illegal cannabis.

“This place is no different than thousands of others we hit this year confiscating about a half-million plants in Riverside County alone,” Roy told the outlet.

“It’s definitely profitable for the illegal market,” Roy later said. “They’re selling greenhouse marijuana by the pound of anywhere from $500 to $2,000 here on the West Coast. But if they take that same exact product and ship that back east, it’s going for two and three times that amount.”

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Oregon Gov. Kate Brown Pardons Everyone Convicted Of Simple Marijuana Possession

Democratic Oregon Gov. Kate Brown issued a pardon Monday for those in her state who have been charged with simple possession of marijuana.

“No one deserves to be forever saddled with the impacts of a conviction for simple possession of marijuana — a crime that is no longer on the books in Oregon,” Brown announced in a press release. “Oregonians should never face housing insecurity, employment barriers, and educational obstacles as a result of doing something that is now completely legal, and has been for years. My pardon will remove these hardships.” The move will eliminate over 47,000 convictions from criminal records impacting about 45,000 people.

Calling the criminal justice system in Oregon “flawed, inequitable, and outdated,” Brown further added that “Black and Latina/o/x people have been arrested, prosecuted, and convicted at disproportionate rates.”

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New York cannabis farms have nowhere to sell a combined 300,000 pounds of weed, valued at $750 million, as delays continue for dispensaries in the state

Hundreds of thousands of pounds of marijuana are currently sitting idly on New York cannabis farms without a single legal recreational dispensary in the state open and ready to sell the product.

An estimated 300,000 pounds of weed are becoming a growing concern for farmers who planted the crop in spring 2021 in hopes of cashing in on the drug’s legalization in New York state. The lot is valued at about $750 million based on the average wholesale value of $2,500 per pound, according to Bloomberg.

Today, the legal recreational cannabis market is stalled as applicants for the first 150 individual retail licenses and 25 nonprofit licenses are still waiting to hear back from the Office of Cannabis Management, per Bloomberg.

Although players in the industry are waiting for the green light from the state, Melany Dobson — CEO of New York-based Hudson Cannabis — told Bloomberg it’s not the only thing holding her and others back.

“It’s an unclear path to market,” Dobson said. “We’ve been told again and again that dispensaries will open before the end of the year. I’ve acted as though that’s our single source of proof, so we’re prepared for that.”

The clock is ticking for the freshly harvested pounds of pot as farmers work to extend its shelf life in preparation for the still-to-come legal dispensaries.

“Old cannabis starts to have a brownish glow,” Dobson said. 

She continued: “We’re trying to retain as much quality as possible. And rushing it into the finished product bags is not the way to do that.”

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Washington Has Been Much More Successful Than California in Displacing the Black Market for Pot

new report indicates that Washington, which legalized recreational marijuana in 2012, has been much more successful at displacing the black market than California, where voters approved legalization in 2016. In a 2021 survey by the International Cannabis Policy Study (ICPS), 77 percent of Washington cannabis consumers reported buying “any type of marijuana” from a “store, co-operative, or dispensary” in the previous year, while 17 percent said they had obtained pot from a “dealer.”

The share of Washington consumers who report buying marijuana from a “store, co-operative, or dispensary” is higher than the average for states that have legalized recreational use, which was 57 percent in 2021, according to a nationwide ICPS survey. Washington’s Liquor and Cannabis Board (LCB) paid for the ICPS report on cannabis consumption in that state, and the ICPS has not published California-specific survey data. But calculations based on estimated total consumption and legal sales suggest that the black market accounts for somewhere between two-thirds and three-quarters of marijuana purchased in California.

California’s striking failure to shift consumers from illegal to legal dealers is largely due to a combination of high taxes, onerous regulations, and local retailing bans. While Washington has a relatively high retail marijuana tax (37 percent, plus standard sales taxes), in other respects the state has made it easier for licensed suppliers to compete with illegal sources.

2022 study from Reason Foundation (which publishes Reason) notes that local restrictions in California have created “massive cannabis deserts” where “consumers have no access to a legal retailer within a reasonable distance of their home.” Washington has more than three times as many legal dispensaries per capita as California.

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As Left and Right Argue Over their ‘Waves’, the Legal Weed ‘Green Wave’ Continues Despite Federal Prohibition

Voters in two more states approved ballot measures legalizing marijuana on Tuesday despite the ongoing federal prohibition of cannabis, continuing a 50-year history of efforts by the state to nullify the feds, cities to nullify the state – and individuals to nullify them all.

Maryland and Missouri both passed ballot measures legalizing marijuana for individuals 21 and over. That brings the total number of states that have legalized recreational marijuana to 21.

The movement to take down marijuana prohibition started in the 1970s accelerated after California legalized cannabis for medical use in 1996. Since then, states have advanced the issue every year. This happened in spite of a 2005 Supreme Court opinion supporting federal prohibition, at least 12 years of relentless year-to-year increase in spending and enforcement efforts by the federal government through three presidential administrations, and ongoing, complete prohibition at the federal level.

In California, individual and local action started long before the passage of Prop. 215 legalizing medical marijuana in 1996. Other states followed their lead. Many states started with modest medical programs and then expanded them over the years.

We’ve seen the same progression when it comes to adult-use marijuana.

Each year, new state laws and the loosening of old laws help expand the market, and each expansion further nullifies the unconstitutional federal ban in practice and effect. With state and local actions accounting for as much as 99 percent of all enforcement efforts according to the FBI, the feds rely heavily on state and local help to fight the “drug war.” That help has rapidly evaporated in the last few years with marijuana legalization and decriminalization.

As marijuana becomes more accepted and more states, localities, and individuals simply ignore the federal prohibition, the feds become less able to enforce their unconstitutional laws. After more than two decades of state, local and individual resistance and nullification, the federal government’s unconstitutional prohibition of cannabis is beginning to come apart at the seams.

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