February 2018

LEGALIZE IT:
HOW STATES HAVE DEALT
WITH ROADBLOCKS TO
CANNABIS LEGALIZATION
EXECUTIVE SUMMARY
The movement to legalize the recreational use and possession of cannabis has gained increased
momentum with the inauguration of Governor Phil Murphy. Legalization, however, is by no
means a guarantee. Concerns have been raised by various legislators, advocates and
stakeholders on a host of issues dealing with legalization. Fortunately, many of these concerns
have already been addressed in states where legalization has already occurred.

This document lays out successful attempts to legalize, regulate and tax recreational cannabis
in states across the country, with specific focus on how they dealt with areas of concern or
opposition. In total, there are nine states that currently allow for recreational use of cannabis:
Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, Vermont, and
Washington State. Washington D.C. has also legalized recreational cannabis, however, this
document will specifically examine only the states that have done so.

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 1
Before 2018, all states that legalized recreational cannabis did so through a successful ballot
measure.1 Ballot efforts in Arizona and Ohio were defeated.23

In January 2018, Vermont became the first state to legalize cannabis by legislation. This came
after a similar attempt in 2016 failed. The New Hampshire state Legislature is also working on
a legalization bill, though it currently remains in committee.

Legalization efforts have often been met with the same issues of debate, from cause and effect
of cannabis use, to economic impact, to social justice. This document does not review issues
regarding the use of cannabis itself and its potential health impacts. There are numerous
studies available which discuss these issues. Rather, our research is meant to serve as a
roadmap for how other states overcame legalization concerns by addressing specific issues.

1 http://www.governing.com/topics/elections/gov-medical-recreational-marijuana-2016-state-ballot-measures.html
2 https://www.theatlantic.com/politics/archive/2015/11/where-did-ohios-marijuana-legalizers-go-wrong/414061/
3 http://www.phoenixnewtimes.com/news/why-did-arizona-just-say-no-to-marijuana-legalization-in-2016-8814965

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 2
STATE-BY-STATE
BRIEF OVERVIEW
 ALASKA
In 2015, Alaska voters approved a ballot
measure to legalize cannabis.4 It made it
legal to grow up to six plants at a time and
carry up to one ounce of cannabis (it has
since been amended to 12 plants). The
Marijuana Control Board oversees the
cannabis market.5
CALIFORNIA
California voters approved a ballot measure
to legalize cannabis in 2016. The measure
imposed a state excise tax of 15% on retail
sales of cannabis, and state cultivation taxes
on cannabis of $9.25 per ounce of flowers
and $2.75 per ounce of leaves. Medical
cannabis was exempt from taxation. It also
authorized resentencing and destruction of
records for prior cannabis convictions. 6
COLORADO
In 2012, Colorado voters approved a ballot
measure to legalize cannabis. When
purchasing retail cannabis, the purchase is
subject to the 2.9% state sales tax, any local
taxes, and an additional 10% state cannabis
sales tax. Retail cannabis is also subject to a
15% excise tax on the average market rate of
the retail cannabis, levied on the first
transfer or sale from the cultivator to the
retail cannabis store. Once cannabis was
legalized, hundreds of millions of dollars in
tax revenue was redirected to local
governments, rebuilding schools and
funding education programs.
LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization
MAINE
Maine voters approved a ballot measure to
legalize cannabis in 2016. A sales tax of 10%
was placed on retail cannabis and retail
cannabis products. Originally, 98% of the
sales taxes collected was placed in the
general fund, with the remaining 2%
distributed to cities and towns through their
Local Government Fund. Currently, all
revenue goes to the general fund. The
Department of Agriculture, Conservation
and Forestry was designated as the state’s
licensing authority.
MASSACHUSETTS
Massachusetts voters approved cannabis
legalization in 2016. Retail cannabis was
subject to sales tax as well as an additional
3.75% excise tax (since amended). Revenue
from fees collected through excise tax,
license application fees and fines for minor
violations are placed in a Marijuana
Regulation Fund. The ballot question
allowed up to six cannabis plants to be
grown at home.7
NEVADA 8
In 2016, Nevada voters approved a ballot
measure legalizing recreational cannabis. A
15% excise tax is imposed on marijuana
sales by cultivation facilities. Revenue from
tax, licensing fees and penalties first goes to
the Department of Taxation and local
governments to cover costs related to the
measure. Remaining revenue is deposited
to the State Distributive School Account.
4
 OREGON
Oregon voters approved a ballot measure
legalizing recreational cannabis in 2014.
The permanent tax rate on recreational
cannabis is 17%. A 25% point-of-sale tax on
recreational cannabis sales by medical
dispensaries started on January 4, 2016.
Medical cannabis still is not taxed.9 A
majority of the revenue acquired by Oregon
is spent on the Common School Fund. The
state’s liquor control agency oversees
regulation and taxing cannabis.
VERMONT
Vermont became the first state to achieve
cannabis legalization through legislative
action rather than through a ballot
measure. The bill, H. 511, was signed into
law by Governor Phil Scott in January 2018.
The law decriminalizes personal possession
of up to one ounce of cannabis and the
cultivation of two mature plants on private
property. The Vermont law is unique in that
it does not legalize a cannabis market,
which was one of the compromises between
proponents and opponents of the law in the
Vermont legislature.10
4 https://www.washingtonpost.com/blogs/govbeat/wp/2015/07/
17/marijuana-in-alaska-has-long-been-legal-now-the-state-is-struggling-
to-regulate-it/?utm_term=.6018c0681795
5 http://time.com/3719828/marijuana-legal-alaska/
6 https://ballotpedia.org/California_Proposition_64,_Marijuana
_Legalization_(2016)
7 https://ballotpedia.org/Massachusetts_Marijuana_Legalization
,_Question_4_(2016)
LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization
WASHINGTON
Washington voters approved a ballot
measure legalizing recreational cannabis in
November 2012. A majority of the revenue
acquired by Washington is spent on state
services. Initially, there was a three-tier
excise tax structure: 25% tax on the
producer, 25% tax on the processor and
25% tax on the retailer. In 2015, Governor
Jay Inslee signed into law a measure that
replaces the three-tier tax structure with a
single excise tax of 37% at the point of sale.
The tax change was sought to encourage
more cities and counties to allow cannabis
business, as the bill directs the state to
share cannabis revenue with jurisdictions
that do so. It also allows them to adopt
more flexible zoning for where cannabis
grows and stores can be located. 11
The state’s liquor control agency oversees
regulation and taxing cannabis.
8 https://ballotpedia.org/Nevada_Marijuana_Legalization,_
Question_2_(2016)
9 https://www.oregon.gov/DOR/press/Documents/marijuana_
fact_sheet.pdf
10 https://www.cnn.com/2018/01/22/us/marijuana-vermont-
legal/index.html
11 http://www.thecannabist.co/2015/07/01/washington-state-pot-law-
overhaul-marijuana-tax-reset-at-37-percent/37238/
5
OVERCOMING
BARRIERS TO
LEGALIZATION
OVERCOMING BARRIERS TO LEGALIZATION
Legalization has been successful in nearly every state that has had a ballot initiative. There
have been, however, a series of issues that have complicated this process, both before and after
legalization took effect. While some are unique to each individual state, overall, issues were
similar across the country. In most instances, however, solutions to these issues were created
to a satisfactory degree. Moreover, in some cases, the perceived problem is based on incorrect
assumptions or a false interpretation of data.

These issues are described in detail in the following section. New Jersey can learn from these
other states on how best to tackle potential roadblocks on the way to legalization. Among the
issues discussed are:

Impaired Traffic Fatalities Cultivation with Edibles Use Among

Driving Pesticides Children

Marketing or Advertising Local Control Increased Use of Those

Selling Near Appealing to Opiates & Imprisoned or
Schools Children Heroin Previously
Convicted of a
Cannabis-
Related Crime

Homelessness Casinos Where and Why

Attempts to
Legalize
Cannabis Failed

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 7
IMPAIRED DRIVING
Issue:
Law enforcement officials in various states have expressed concerns about the potential
inability to test for impaired driving around recreational cannabis use.

Solution:
While there is a deficiency in terms of onsite testing, legalized states have tackled the issue
through enhanced training on how to spot an impaired driver.

Orange County, California has trained approximately 300 officers as Drug Recognition Experts
to learn how to recognize the signs of drug impairment for different drugs, from cannabis to
opioids to methamphetamine.

In Colorado, many law enforcement officers have received training in Advanced Roadside
Impaired Driving Enforcement (ARIDE). Across the state, law enforcement agencies have
specially trained Drug Recognition Experts (DRE) on staff that can detect impairment from a
variety of substances.1

Colorado law specifies that drivers with five nanograms of active tetrahydrocannabinol (THC)
in their whole blood can be prosecuted for driving under the influence (DUI). However, no
matter the level of THC, law enforcement officers base arrests on observed impairment.
Colorado revokes driving privileges for any individual who fails to cooperate with the chemical
testing process requested by an officer during the investigation of an alcohol or drug-related
DUI arrest. Any driver who refuses to take a blood test will immediately be considered a high-
risk driver. Consequences include: mandatory ignition interlock for two years and level two
alcohol education and therapy classes as specified by law. These penalties are administrative,
and are applied regardless of a criminal conviction.2

1 https://www.codot.gov/safety/alcohol-and-impaired-driving/druggeddriving/marijuana-and-driving
2 https://www.codot.gov/safety/alcohol-and-impaired-driving/druggeddriving/marijuana-and-driving

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 8
WHAT IS ARIDE?
The ARIDE program trains law enforcement officers to observe, identify and
articulate the signs of impairment related to drugs, alcohol or a combination of both,
in order to reduce the number of impaired drivers and impaired driving-related traffic
collisions. This course also trains other criminal justice professionals, such as
prosecutors or toxicologists, to understand the signs and enable them to effectively
work with law enforcement.3

3https://www.chp.ca.gov/programs-services/for-law-enforcement/drug-recognition-evaluator-program/aride-advanced-roadside-impaired-driving-
enforcement

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 9
TRAFFIC FATALITIES
Issue:
Legalization opponents continuously tout the idea that traffic fatalities in recreational cannabis
states are increasing.

Solution:
The data often being cited by opponents is misleading and fails to provide any correlation
between legalizing and traffic fatalities. Moreover, any increases in traffic fatalities are similar
to increases seen in non-legalization states.

The American Public Health Association published a 2017 study evaluating motor vehicle crash
fatality rates in the first two states with recreational cannabis legalization, and comparing them
with motor vehicle crash fatality rates in similar states without recreational marijuana
legalization.

They used the US Fatality Analysis Reporting System to determine the annual numbers of
motor vehicle crash fatalities between 2009 and 2015 in Washington, Colorado and eight
control states, then compared year-over-year changes in motor vehicle crash fatality rates (per
billion vehicle miles traveled) before and after recreational cannabis legalization with a
difference-in-differences approach that controlled for underlying time trends and state-specific
population, economic and traffic characteristics.

The results of their study found that pre–recreational cannabis legalization annual changes in
motor vehicle crash fatality rates for Washington and Colorado were similar to those for the
control states. Post–recreational cannabis legalization changes in motor vehicle crash fatality
rates for Washington and Colorado also did not significantly differ from those for the control
states. Their conclusion:

“Three years after recreational marijuana legalization, changes in motor

vehicle crash fatality rates for Washington and Colorado were not
statistically different from those in similar states without recreational
marijuana legalization.” 4

4 http://ajph.aphapublications.org/doi/abs/10.2105/AJPH.2017.303848

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 10
CULTIVATION WITH PESTICIDES
Issue:
In states that have legalized cannabis, there is growing debate over cultivation with pesticides
and how to protect the public from them.

Solution:
States have taken a common-sense approach to this issue, making it illegal to use pesticides,
with only certain exceptions.

For example, the Colorado Pesticide Applicator Act:

Prohibits use of a pesticide in a manner inconsistent with the product

labeling unless otherwise authorized by law, it is unlawful and a violation
of this article for any person to use, store or dispose of pesticides, pesticide
containers, reinstates, or other related materials, or to supervise or
recommend such acts, in a manner inconsistent with labeling directions or
requirements, unless otherwise provided by law, or in an unsafe, negligent,
or fraudulent manner.5

In other words, it is illegal to use pesticides in the process of cultivating cannabis, unless such
use is consistent with the labeling of the product.

Massachusetts bans the use of non-organic pesticides on cannabis altogether. Other states,
most notably Oregon, Nevada and Washington, enforce strict limits on the levels of pesticide
residues that are allowable in cannabis available for retail purchase. Colorado and California
have been plagued by reports of pesticide contaminated cannabis. Recognizing this problem,
California expects to have safety standards governing pesticides in cannabis in place this year,
including having all cannabis “tested before it is passed on to the dispensary to be sold.”6 7

5 https://www.colorado.gov/pacific/agplants/pesticide-use-cannabis-production-information
6 http://www.thealternativedaily.com/pot-contain-pesticides/
7 http://www.thealternativedaily.com/pot-contain-pesticides/

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 11
EDIBLES
Issue:
Numerous stakeholders have shared concerns about the safety of children around edibles.

Solution:
Preventing child access to edibles merely requires many of the same kinds of common sense
solutions that are seen with things like alcohol and cigarettes. As would be expected, properly
supervising and storing edibles greatly reduces the chances of ingestion.

Colorado laws require clearer and more prominent THC symbols and potency levels displayed
on packaging.8 In addition to requiring a bright red THC symbol, the law also prohibits edibles
from being shaped like animals, people and fruit. In an effort to prevent accidental ingestion,
George Sam Wang, MD, a pediatric emergency medicine physician and medical toxicologist at
Children’s Hospital Colorado, helped the state craft legislation in 2014 that required child-safe
packaging for cannabis products. For decades, child-resistant packaging has been a proven
method for keeping kids out of unsafe products.9

Similar laws have been adopted in Washington (with required “not for children” stickers)10 and
California, which also has a bill drafted that would ban candy-looking edibles that appeal to
children.11

8 http://kdvr.com/2017/10/01/colorado-pot-edibles-undergo-more-changes-to-make-them-safer-under-new-rules/
9 https://www.childrenshospitals.org/newsroom/childrens-hospitals-today/spring-2015/articles/recreational-marijuana-legalization-and-the-effects-on-
child-health-and-safety
10 https://www.opb.org/news/article/marijuana-not-for-kids-label-washington/
11 http://www.ktvu.com/news/california-bill-to-ban-marijuana-edibles-in-shape-of-gummy-bears-moves-forward

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 12
USE AMONG CHILDREN
Issue:
Educators have expressed concerns related to access to cannabis and its effects on students in
legalization states.

Solution:
Information provided by the federal government shows that cannabis use among the student
age population is actually going down in states where legalization has happened.

According to a new federal survey, since legalization in Colorado, the rate of adolescent
marijuana use has fallen to its lowest level in nearly a decade.12 Prior to legalization, Colorado
had the highest adolescent marijuana use in the country. Since state legalization, it has fallen to
seventh.13

State-level numbers from the National Survey on Drug Use and Health show that a little more
than 9% of Colorado children age 12 to 17 used cannabis monthly in 2015 and 2016, a
statistically significant drop from the prior period. That is the lowest rate of monthly cannabis
use in the state since 2007 and 2008.

“Teen use appears to be dropping

now that the state and local
authorities are overseeing the
production and sale of marijuana”
said Brian Vicente of Vicente
Sederberg LLC, one of the drafters
of Colorado’s cannabis ballot
measure. “There are serious
penalties for selling to minors, and
regulated cannabis businesses are
being vigilant in checking IDs.”14

12 https://www.washingtonpost.com/news/wonk/wp/2017/12/11/following-marijuana-legalization-teen-drug-use-is-down-in-
colorado/?utm_term=.fad6adb028ea
13 https://www.washingtonpost.com/news/wonk/wp/2017/12/11/following-marijuana-legalization-teen-drug-use-is-down-in-

colorado/?utm_term=.fad6adb028ea
14 http://www.philly.com/philly/business/cannabis/Following-marijuana-legalization-teen-drug-use-is-down-sharply-in-Colorado.html

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 13
Even though use is dropping, many states still have strict enforcement laws regarding minors
and cannabis. In Colorado in 2017, revenue from legal cannabis sales provided a $9.2 million
grant for statewide public school programs that discourage the underage use of cannabis.
Denver Public Schools alone received $871,636 under the grant program, which it will use to
pay health care professionals to lead substance abuse, suicide prevention and other programs
at 22 high schools and middle schools.15

In California, penalties for selling cannabis to minors are severe. Delivery or attempted
delivery of any amount of cannabis by an individual aged 18 years or older to an individual who
is 14-17 years old is a felony punishable by 3-5 years imprisonment. Delivery or attempted
delivery to an individual under 14 is punishable with up to 7 years in prison.16

In Oregon, delivery of any amount of cannabis to a minor is a class C felony punishable by up

to five years in prison and a fine of up to $125,000.17

15 https://www.denverpost.com/2017/09/04/marijuana-sales-used-for-school-pot-weed-prevention/
16 http://norml.org/laws/item/california-penalties
17 http://norml.org/laws/item/oregon-penalties-2

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 14
MARKETING OR SELLING NEAR SCHOOLS
Issue:
Parents and residents have expressed concern about cannabis marketing and signage that
could appeal to children.

Solution:
As with various other industries in which we would want to prevent targeting towards children,
legalization states have numerous laws that prevent cannabis businesses from being located
near schools.

In states where recreational cannabis is currently legal, there are many laws that limit the
exposure of advertising efforts to children between the ages of 18-21. These laws state that
advertisements in print or broadcast cannot depict anyone under the age of 21 or make use of
any images that would appeal to anyone under age. Some states also have laws banning
advertisements within a certain distance of a school or other establishment that caters to
children.

State Regulations On Cannabis Advertising Near Schools

State Law
California (a) A premises licensed under this division shall not be located within
Proposition 64, a 600-foot radius of a school providing instruction in kindergarten or
Chapter 15. any grades 1 through 12, day care center, or youth center that is in
Advertising and existence at the time the license is issued.
Marketing
(b) Notwithstanding subsection (a), if a local jurisdiction has issued a
Restrictions
license or permit to conduct commercial cannabis activity at a
premises that is located within a 600-foot radius of a school providing
instruction in kindergarten or any grades 1 through 12, day care center,
or youth center, the Bureau may approve the premises for licensure if
the following conditions are met:

(1) The applicant submits a copy of a valid license or permit from the
local jurisdiction with the application for licensure; and

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 15
 (2) The local jurisdiction notifies the Bureau that the applicant is in
compliance with all applicable local ordinances and regulations
pursuant to Business and Professions Code section 26055(g)(2)(C).18

Nevada “A marijuana establishment shall not place an advertisement within

Chapter 453D – 1,000 feet of a public or private school, playground, public park or
The Regulation library, but may maintain such an advertisement if it was initially
and Taxation of placed before the school, playground, public park, or library was
Marijuana Act located within 1,000 feet of the location of the advertisement.”19

Washington “No licensed marijuana producer, processor, or retailer shall place or

WAC 314-55-155: maintain, or cause to be placed or maintained, an advertisement of
Advertising. marijuana, usable marijuana, or a marijuana-infused product in any
form or through any medium whatsoever:

“(a) Within one thousand feet of the perimeter of a school grounds,

playground, recreation center or facility, child care center, public park,
library, or a game arcade admission to which it is not restricted to
persons aged twenty-one years or older.”20

Colorado also passed a law in 2017 making it a level 2 drug misdemeanor for a person not
licensed to sell medical or retail cannabis to advertise for the sale of cannabis or cannabis
concentrate. The law helps target those who sell cannabis illegally using online ads through
places like Craigslist.21

18 http://www.bcc.ca.gov/law_regs/bcc_prop_text_reg.pdf
19 https://www.leg.state.nv.us/NRS/NRS-453D.html
20 http://apps.leg.wa.gov/wac/default.aspx?cite=314-55-155
21 https://leg.colorado.gov/bills/sb17-015

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 16
ADVERTISING APPEALING TO CHILDREN
Issue:
Opponents have raised concerns about cannabis advertising and how it could possibly appeal
to children.

Solution:
As with cannabis business near schools, legalization states have many common sense laws in
place that prevent or discourage advertising that would appeal to or is directed towards
children.

In states where recreational cannabis is legal, there are numerous restrictions on advertising.
Moreover, since cannabis remains illegal under federal law, advertisers and broadcasters are
hesitant to engage, since they risk punishment at the federal level, including losing their
licensing from the Federal Communications Commission (FCC).22

Section 843 of the Controlled Substances Act also makes it a felony for a communications
facility to transmit any advertisements for Schedule I drugs, which includes cannabis. 23

Additionally, states have created their own laws surrounding TV/radio advertisements of
cannabis. Most of the state laws that deal with TV/radio ads specifically state the age of the
audience members as the reason for the restriction. Other states have outright banned the
advertising of cannabis or cannabis-related products.

Examples of Advertising Restrictions

State Law

California “Any advertisement placed in broadcast, cable, radio, print, and

Proposition 64, digital communications shall only be displayed where at least
Chapter 15. Advertising 71.6% of the audience is reasonably expected to be 21 years of age
and Marketing or older, as determined by reliable, up-to-date audience
Restrictions composition data.”24

22 http://www.abajournal.com/magazine/article/can_marijuana_ads_be_shown_on_tv_in_states_where_its_legal_broadcasters_are
23 http://www.abajournal.com/magazine/article/can_marijuana_ads_be_shown_on_tv_in_states_where_its_legal_broadcasters_are
24 http://www.bcc.ca.gov/law_regs/bcc_prop_text_reg.pdf

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 17
 State Law
Colorado R1104 – Advertising: Television – “A Retail Marijuana
Marijuana Establishment shall not utilize television advertising unless the
Enforcement Division 1 Retail Marijuana Establishment has reliable evidence that no
CCR 212-2 more than 30% of the audience for the program on which the
Advertising is to air is reasonably expected to be under the age of
21.”

R1105 – Advertising: Radio – “A Retail Marijuana Establishment

shall not engage in radio Advertising unless the Retail Marijuana
Establishment has reliable evidence that no more than 30% of the
audience for the program on which the Advertising is to air is
reasonably expected to be under the age of 21.”25

Nevada “A marijuana establishment shall not advertise in any publication

Chapter 453D – The or on radio, television, or any other medium if 30% or more of the
Regulation and audience of that medium is reasonably expected to be persons
Taxation of Marijuana who are less than 21 years of age.”26
Act

25 https://www.colorado.gov/pacific/sites/default/files/Retail%20Marijuana%20Rules,%20Adopted%20090913,%20Effective%20101513%5B1%5D_0.pdf
26 https://www.leg.state.nv.us/NRS/NRS-453D.html

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 18
LOCAL CONTROL
Issue:
Certain counties and municipalities have expressed a desire to keep cannabis out of their
communities.

Solution:
Most legalization states have dealt with this issue in a straightforward manner: they have
allowed counties and towns to pass their own laws on the issue.

In Oregon, they provided the option of cannabis remaining illegal in specific counties that
voted against the statewide ballot measure. Municipalities are also allowed to implement local
bans. As seen in the map below, many counties and towns have taken advantage of this.

Washington State, Massachusetts, California, Alaska, Maine, and Colorado allowed

municipalities to maintain control over local jurisdiction.

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 19
While allowing for local control of the issue, Oregon and California have also implemented
measures to reduce or completely withhold cannabis industry tax revenue from going to towns
or counties that have cannabis bans.27

27 http://www.governing.com/topics/finance/gov-states-withhold-pot-revenue-cities-ban-marijuana.html

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 20
INCREASED USE OF OPIATES AND HEROIN
Issue:
There is an ongoing debate on whether cannabis legalization leads to greater use of opiates and
heroin.

Solution:
Outside of anecdotal claims, it is apparent that just the opposite is happening.

A November 2017 American Public Health Association study indicated that after Colorado
legalized recreational cannabis, opioid-related deaths actually decreased by more than 6%.
According to the study, “this reduction represents a reversal of the upward trend in opioid-
related deaths in Colorado.” The below graph visualizes the shift in the trend.28

The authors examined trends in monthly opiate overdose fatalities in Colorado before and after
the state's recreational cannabis market opened in 2014. They attempted to isolate the effect of
recreational, rather than medical, cannabis by comparing Colorado to Nevada, which allowed
medical but not recreational cannabis during that period.

They also attempted to correct for a

change in Colorado's prescription-drug-
monitoring program that happened
during the study period. That change
required all opioid prescribers to register
with, but not necessarily use, the
program in 2014.

Overall, after controlling for both

medical cannabis and the prescription-
drug-monitoring change, the study
found that after Colorado
implemented its recreational marijuana
law, opioid deaths fell by 6.5 % in the
following two years.29

28 http://ajph.aphapublications.org/doi/abs/10.2105/AJPH.2017.304059?journalCode=ajph
29 https://www.washingtonpost.com/news/wonk/wp/2017/10/16/legal-marijuana-is-saving-lives-in-colorado-study-finds/?utm_term=.448a5e2aaef7

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 21
In addition, various studies have shown that states which allow medicinal cannabis have seen
lower opioid overdose rates than states that do not. A 2017 study published in the Journal of
Health Economics noted that “states which allowed marijuana to be sold to qualified patients
through dispensaries as part of their medical marijuana laws had opioid mortality rates that
were 20% lower than those in similar states without legal and operational dispensaries
between 1999 and 2013.”30

30 https://www.forbes.com/sites/adammillsap/2018/02/07/allowing-access-to-marijuana-may-help-states-fix-their-opioid-problem/#c9f6e122594d

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 22
THOSE IMPRISONED OR PREVIOUSLY CONVICTED
OF A CANNABIS RELATED OFFENSE
Issue:
How to resolve questions regarding those currently in prison or who have a record because of
prior cannabis related arrests.

Solution:
In California, Colorado and Oregon, people can petition courts to reduce or expunge past
cannabis-related convictions.31

In Oregon, allowing certain cannabis-related records to be sealed was part of the 2014
legalization ballot initiative. In Colorado, a lesser version of this type of law was passed, which
only targets misdemeanor charges. In Colorado and in California, records of possession of an
ounce or less of cannabis can also be expunged. 32

31 http://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2017/11/20/in-these-states-past-marijuana-crimes-can-go-away
32 http://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2017/11/20/in-these-states-past-marijuana-crimes-can-go-away

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 23
HOMELESSNESS
Issue:
Opponents claim that homelessness rates have increased in legalization states, and the reason
for this is the legal availability of cannabis.

Solution:
Because legalization is new in most states, they are only now just getting a sense of whether
there is a correlation between homelessness and legalization. Certain patterns, however, are
emerging which indicate that theories linking homelessness and cannabis use are simply not
true.

In 2014, a Denver Post story noted claims that legalized cannabis was contributing to Denver’s
homeless rates, and that a reliance on the drug had put addicts on the streets.33 This claim
included data showing that homelessness rates in Denver rose to over 8% since 2013, a year
after legalization was approved.34

There are numerous reasons why this line of reasoning is deeply flawed. First and foremost,
rising homelessness rates are being seen across the country. It is not merely unique to states
that have legalized cannabis. The 2017 Annual Homeless Assessment Report to Congress,
published by the U.S. Department of Housing and Urban Development, reported that in 2017,
homelessness in the United States increased for the first time in seven years. 35

Those heavily involved in the issue do not point to cannabis, but rather to cost of living
increases as the reason for these rising rates. “High cost and low vacancy rates are putting
more people at risk of entering homelessness, and they’re making it harder and harder for
people to find housing as they strive to exit homelessness,” said Matthew Doherty, executive
director of the U.S. Interagency Council on Homelessness. 36

Opponents of legalization have specifically pointed to Colorado as an example on the issue of

homelessness. But, as noted by the Denver Post, “The increase in homelessness mirrors a
national trend.”37 Moreover, since 2015, Colorado has seen a population increase of
approximately 100,000 people while also experiencing a housing shortage of roughly 15,000

33 https://www.washingtonpost.com/news/the-watch/wp/2014/07/28/is-legal-pot-causing-a-surge-in-homelessness-in-denver-who-
knows/?utm_term=.29bd438e2882
34 https://www.theguardian.com/us-news/2017/feb/27/marijuana-legal-homeless-denver-colorado
35 https://www.citylab.com/equity/2017/12/homelessness-in-high-cost-cities-is-driving-a-nationwide-increase/547763/
36 https://www.citylab.com/equity/2017/12/homelessness-in-high-cost-cities-is-driving-a-nationwide-increase/547763/
37 https://www.denverpost.com/2017/12/06/colorado-homelessness-2017/

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 24
homes. Colorado Springs has seen a substantial increase in homelessness, but they have
banned the sale or use of recreational cannabis.38

Lastly, John Parvensky of the Colorado Coalition for the Homeless has stated that substance
abuse among the homeless population can be attributed to alcohol, narcotics and opiates, not
cannabis.39

While there is no correlation between homelessness and recreational cannabis, Colorado still
uses cannabis revenue to create permanent supportive housing and housing assistance for the
homeless.40

38 https://www.coloradoan.com/story/news/local/colorado/2017/12/30/colorado-springs-burgeoning-homeless-population-persists/992783001/
39 https://www.theguardian.com/us-news/2017/feb/27/marijuana-legal-homeless-denver-colorado
40 http://time.com/money/4801768/colorado-marijuana-industry-tax-revenue/

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 25
CASINOS
Issue:
How should cannabis be dealt with in casinos, where smoking is still allowed.

Solution:
The five-member Nevada Gaming Commission Board – which sets policy for the gaming
industry in that state - has repeatedly said that as long as cannabis remains illegal at the federal
level, then it should not be allowed into casino resorts. They have also stated that gaming
licensees should not maintain business relationships with cannabis companies.

More recently, Nevada Governor Brian Sandoval has convened a 12-member Gaming Policy
Committee to determine how casinos can still host conventions and trade shows on cannabis.
The governor hopes to have committee recommendations before spring 2018.41

41 https://www.thecannabist.co/2017/12/04/nevada-marijuana-casinos/93895/

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 26
WHERE AND WHY ATTEMPTS TO LEGALIZE CANNABIS
FAILED

OHIO
In 2015, Ohio voters were asked to approve Issue 3, a cannabis legalization initiative which
sought to grant exclusive rights to cultivate and sell cannabis to ResponsibleOhio, a group of
investors. 42

The main problem in Ohio was the issue of “corporate cannabis.” Although there was support
for legalization, many of those who supported it were so strongly against corporatization and
monopolization of the drug, that they ultimately were against Issue 3 altogether.

Don Wirtshafter, an Ohio lawyer who has dedicated his life and career to making cannabis
legal, came out publicly against Issue 3. He was afraid passage would grant a monopoly over
the cannabis industry in Ohio to a small group of bankers.43

The Marijuana Policy project, which operates nationally in support of state-campaigns to

legalize cannabis, was neutral on Issue 344

Sri Kavuru, president of the cannabis legalization group Ohioans to End Prohibition, was
publicly opposed to Issue 3, and collected signatures to put a separate cannabis legalization
initiative on the ballot in 2016; under the measure, cannabis would have become legal for those
over 21, there would be no state-sponsored monopoly over the drug and people would be
allowed to grow cannabis at home.45

Issue 3 went down in defeat, 63.6% to 36.3%. Advocates, however, are attempting to put a new
legalization question on the ballot this year.

42 https://www.theatlantic.com/politics/archive/2015/11/where-did-ohios-marijuana-legalizers-go-wrong/414061/
43 https://www.nytimes.com/2015/11/02/us/on-ballot-ohio-grapples-with-specter-of-marijuana-monopoly.html?_r=0
44 https://www.nytimes.com/2015/11/02/us/on-ballot-ohio-grapples-with-specter-of-marijuana-monopoly.html?_r=0
45 https://www.theguardian.com/us-news/2015/nov/04/ohio-rejects-legalized-marijuana-issue-3

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 27
 ARIZONA
In 2016, Arizona voters were asked to approve Arizona Marijuana Legalization Initiative,
proposition 205, which would have legalized the possession and consumption of cannabis by
people 21 years old and up.

Ultimately, this measure failed in part because the opposition campaign - financed by wealthy
casino magnates and opioid drug manufacturers - was able to raise substantially greater sums
of money than supporters. They ensured that the campaign and the money spent on opposition
messaging was lengthy and enduring.

Also, as explained by Neil Franklin, executive director of Massachusetts-based Law

Enforcement Against Prohibition (LEAP), the issue followed party lines. Trump voters, who
were generally opposed to legalization, heavily outnumbered Clinton supporters at the polls.
Also, as noted by Jonathan Caulkins, professor of public policy for Carnegie Mellon
University’s Heinz College, the ballot measure was seen by voters as serving the interest of
business owners and government, who both profit from the sales.

Arizona Governor Doug Ducey (R), said, “(D)ealing with opioids is an issue we now have in our
state right now that we need to take action on… if we want to expand this universe of people
that are addicted and abusing drugs, well you’ll have that chance in November… I don’t think
that any state became stronger by being stoned.”46

Voters ultimately rejected Prop 205, 52% to 48%. Like Ohio, advocates are attempting to put a
new legalization question on the ballot this year.

46 https://www.dcourier.com/news/2016/sep/03/ducey-speaks-out-against-legalized-marijuana/

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 28
UNIQUE POLICIES
UNIQUE POLICIES
States have implemented cannabis policy taking into account different levels of individual
rights and consideration for commercial and economic activity. Below are some of the more
unique aspects of individual states that have legalized recreational cannabis.

CALIFORNIA OREGON
The tax on cannabis flowers ($9.25 / ounce) Allows marijuana to remain illegal in specific
is much higher than the tax on the plant’s counties that voted against the measure.
leaves ($2.75 per ounce), because flowers
have much higher concentrations of THC, VERMONT
making them more potent. This allows for Only state that did not legalize a cannabis
taxing based on potency and effectiveness. market, which was one of the compromises
between proponents and opponents of the
COLORADO law in the Vermont Legislature.48 Cannabis
In order to be granted a license you may not can be grown and consumed, but not sold.
have a drug felony conviction in the last 10
years, or any felony that has been fully WASHINGTON
discharged at leave five years prior to Only state where cannabis is legalized but
application.47 home growing is illegal. In order to be
granted a license, applicants must show
NEVADA proof of separate land to grow.
Limits the allowable number of retail
cannabis stores permissible in each county
depending on the county’s population size.
For example, a county with over 700,000
people is allowed up to 80 retail stores, but
a county between 100,000 and 700,000 is
only allowed up to 20. Allowing the number
of stores in a county to be proportional to
the number of people is a way to regulate
proliferation of cannabis entities.

47http://smallbusiness.findlaw.com/business-laws-and- 48https://www.cnn.com/2018/01/22/us/marijuana-vermont-
regulations/setting-up-a-legal-marijuana-business-state-laws-to- legal/index.html
know.html

LEGALIZE IT: How States Have Dealt with Roadblocks to Cannabis Legalization 30
MAGGIE MORAN
MANAGING PARTNER, K IVV IT CHICAGO
Tel: 212. 929. 0669 730 N. Franklin Street, Suite 450
Chicago, IL 60654
Tel: 312. 664. 0153

MIAMI
3250 NE 1st Ave., Suite 305
Miami, FL 33137
Tel: 305. 964. 8035

NEW JERSEY
608–612 Cookman Ave, Unit 5
Asbury Park, New Jersey 07712
Tel: 732. 280. 9600

NEW YORK
200 Varick Street, Suite 201
New York, New York 10014
Tel: 212. 929. 0669

WASHINGTON, D.C.
1100 G Street NW, Suite 350
Washington, DC 20005
Tel: 202. 331. 1002