Colorado regulators have begun surveying marijuana businesses about the price of pot in an effort to implement a new excise tax that voters passed earlier this month. The tax places a 15 percent levy on the wholesale price of recreational marijuana when it moves between the grower and the seller. However, Colorado's recreational marijuana industry won't have a true wholesale market for the first nine months. They must grow almost everything they sell — meaning the wholesale transactions that will be subject to the excise tax are really just pot transfers in which no money is exchanged.
The US drug policy is changing, pitting states against federal law. This essay explores this inner friction of contradictory drug legislation, and what it may mean for the international drug control regime, itself a result of US drug policy. (4,400 words)
A set of laws to govern how recreational marijuana should be grown, sold and taxed was signed into law Tuesday in Colorado, where Democratic Gov. John Hickenlooper called the measures the state's best attempt to navigate the uncharted territory of legalized recreational pot. The laws cover how the drug should be raised and packaged, with purchasing limits for out-of-state visitors and a new marijuana driving limit as an analogy to blood alcohol levels. (See also: Highlights of Colorado's new marijuana laws)
The first time I talked to Mark Kleiman, a drug policy expert at UCLA, was in 2002, and he explained why legalization of marijuana was a bad idea. “At some point you have to say, a law that people don’t obey is a bad law,” Kleiman told me when I asked how his views had evolved. He has not come to believe marijuana is harmless, but he suspects that the best hope of minimizing its harm may be a well-regulated market. Today the most interesting and important question is no longer whether marijuana will be legalized — eventually, bit by bit, it will be — but how.
Washington Liquor Control Board officials released draft rules for a legal seed-to-store marijuana system. Washington residents and out-of-staters could buy an ounce of tested, labeled marijuana, seven days a week, up to 20 hours a day, in state-regulated stores. That rule is more permissive than in Colorado, the other state creating an adult recreational-pot market. The draft rules are likely to be refined in weeks to come.
They've spent nearly eight months visiting marijuana grow houses, studying the science of getting high and earning nicknames like "the queen of weed." Now, officials in Washington are taking their first stab at setting rules for the state's new legal weed industry, possibly covering an array of topics ranging from how pot should be grown, labeled and tested for quality assurance to what types of security should be required at state-licensed pot businesses.
Many Washington residents are looking to cash in on the newly legal and potentially lucrative marijuana market, which they hope will give them a new start, create jobs, and boost Washington's slumping economy. A diverse bunch, prospective marijuana entrepreneurs range from cannabis novices to experienced sellers crawling out of the black market. State officials are unsure how much revenue marijuana will bring because the market has never been regulated. But experts predict the industry could fetch up to $2bn over a five-year period.
The Drug Enforcement Administration sent cease-and-desist letters to 11 medical-marijuana dispensaries because they are within 1,000 feet of schools or other prohibited areas. The DEA maintains that the crackdown does not signal a federal war on Washington state’s new legal-pot law. Despite Washington state’s new legal recreational-pot law, enacted by voter-approved Initiative 502, all forms of marijuana remain illegal under federal law.
In the wake of the marijuana legalization victories in Colorado and Washington last November, and buoyed by a series of national public opinion polls showing support for pot legalization going over the tipping point, marijuana reform legislation is being introduced at state houses across the land at levels never seen before. According to a legislative activity web page maintained by the Marijuana Policy Project, decriminalization bills have been introduced in 10 states.
Colorado lawmakers tried to find the Goldilocks level for recreational marijuana taxes — an amount neither too high to discourage voters from approving it nor too low to pay the costs of pot legalization. At the end of the debate, the state House gave initial approval to a bill that proposes a 15 percent excise tax and an initial 10 percent special sales tax on recreational marijuana, over the objection of Republicans who said the tax rates are too much.
A proposal that could lead to the repeal of marijuana legalization in Colorado has gained momentum at the state Capitol. The repeal would be linked to a measure on marijuana taxes that is expected to go before voters in November, according to legislators and advocacy groups involved in the discussions. The premise is that, if voters do not approve the taxes, then Amendment 64, the initiative passed just months ago to legalize marijuana, would be repealed.
Legal marijuana in Colorado may not bring in enough money to cover the societal costs of legalization, a study from a Colorado State University think tank concludes. The analysis also argues that revenue from marijuana taxes won't do much to help Colorado's budget and that money generated for new school construction won't reach the $40 million annual target that supporters of marijuana legalization set when campaigning for Amendment 64, the measure that legalized use, limited possession and commercial sale of marijuana for adults in Colorado.
Lawmakers introduced a long-awaited bill of proposed regulations for recreational marijuana, moving Colorado one step closer to a legal pot marketplace. The 57-page bill — House Bill 1317 — contains most of the ideas endorsed by a special legislative committee for how recreational marijuana businesses should operate and be structured. A second bill, House Bill 1318, lays out a proposed tax structure for marijuana that voters would be asked to approve.
Washington state is delaying its timeline for granting marijuana growing and processing licenses - and that means legal marijuana sales likely won't begin before spring of next year. Rather than issue growing licenses this summer and processor licenses this fall, as called for in a tentative prior timeline, the Liquor Control Board will issue all licenses Dec. 1, 2013.
Tens of thousands of people will attend Saturday's "4/20" rally in Denver, creating perhaps the largest collectively produced cloud of marijuana smoke ever at 4:20 p.m. But Lopez doesn't view this year's event as a celebration of Amendment 64, the pro-pot measure that voters passed in November. Instead, it is as much a protest against the measure. "It is still only a legislative act to create an economy and not to end a war that has destroyed thousands of lives." The people behind Amendment 64, likewise, are holding the rally at arm's length.
Washington state may delay issuing licenses to grow pot by a couple months, according to state Liquor Control Board Deputy Director Rick Garza. In its initial timeline, the board would issue producer licenses in mid-August. Then it planned to issue processor licenses in early November and retailer licenses in mid-November. Under that schedule, state-regulated stores might open as early as December. But the board staff believe it’s probably better to create all three licenses at the same time.
Washington’s new pot consultant has one overarching, discouraging message for lawmakers and state budget writers: don’t look at weed as an ATM. Potential tax revenues will probably be less than half of the $450 million that’s been projected, said Mark Kleiman, in a interview Thursday night with TVW’s Austin Jenkins. More important, Kleiman said, to rely on money from pot — like money from gambling, alcohol and tobacco — means relying on abuse and addiction, which are not necessarily desirable state goals.
Colorado's under-construction plan for regulating recreational marijuana nearly came unglued when lawmakers questioned whether the agency that would enforce the rules is up to the task. The plan called for the state's Medical Marijuana Enforcement Division — which regulates medical-marijuana businesses — to transition to the Marijuana Enforcement Division and be in charge of all pot enterprises in the state. But a scathing audit cast doubt on the division's fitness for handling the massive job.