Big supporter of Measure 91 that I was, which legalized recreational marijuana here in Oregon in November 2014, and avid supporter that I was of Democratic control of the Governor's office and state legislature, which also transpired in the last election, I optimistically assumed that Dems would implement marijuana legalization properly.
Let's make that, over-optimistically.
Because even though some legislators and government officials support both the intent and language of Measure 91, others are busily trying to undermine the 56% of Oregonians who voted in favor of legal cannabis.
The most egregious example of this is Senate Bill 964, which was passed by the state Senate on May 27. Among other things, it allows cities and counties to ban medical marijuana dispensaries without an automatic vote of the people -- something Measure 91 requires.
The Measure 91 folks, New Approach Oregon, explain why SB 964 is such a bad idea.
Senate Bill 964, sponsored by Democratic Senator Ginny Burdick and Republican Senator Jeff Kruse, will allow a handful of city council members and county commissioners to ban state-licensed medical marijuana dispensaries, without a mandatory public vote of the people.
This provision for medical marijuana businesses will hurt Measure 91’s voter-approved opt-out procedure, requiring a vote of the people, either in future legislation or future lawsuits. It is imperative that any opt-out procedure for marijuana businesses match the provision passed by over 56% of Oregon voters. Both The Oregonian and the Register-Guard have published editorials supporting a vote of the people.
Senate Bill 964 goes against the will of the voters and hurts the priorities of the state and even the federal government. Easily opting-out of state-regulated marijuana businesses will only exacerbate the illegal, underground market. Oregon voters want to stop treating marijuana as a crime and to bring as many people into a state-regulated system as possible; Senate Bill 964 goes against voters’ interests.
[Click here to find a list of House members to email and tell them "Vote No on SB 964"; there are a few semi-colons separating the names, though; I had to change those to commas when I copied and pasted the email addresses.]
It is indeed bewildering that state legislators would try to make medical marijuana more difficult to obtain than recreational marijuana. (I'm tempted to say "What were those legislators smoking?", but will refrain from doing so -- though, oops!, I just did.)
Consider: on the same day the Senate passed SB 964, the Oregonian reported that a plan to allow the sale of both medical and recreational marijuana in the current 200 medical marijuana dispensaries was greeted favorably by legislators and OLCC officials.
(The Oregon Liquor Control Commission is charged under Measure 91 with implementing regulations for the production, distribution, and sales of recreational marijuana.)
A concern, though, is that supposedly much of the cannabis produced by registered medical marijuana growers is finding its way into the black market. Maybe this is true; maybe it isn't. For the sake of argument, let's say that it is.
What would be some great ways to get that marijuana out of the black market and into legal distribution channels?
Well, it doesn't take a genius to come up with two obvious ways:
(1) Allow medical marijuana dispensaries in the many cities and counties that have prevented them from opening, taking advantage of a state law that allowed temporary bans until May 2015.
(2) Allow the sale of recreational marijuana in medical marijuana dispensaries as soon as possible.
Doing these things would give those growing medical marijuana additional outlets to sell their cannabis. The best way to get rid of the black market is to expand the "white market."
Yet SB 964 would do the exact opposite, forcing lots of medical marijuana cardholders to continue to get cannabis from unregulated sources, since 26 of Oregon's 36 counties and 146 cities have banned dispensaries and could continue to do so without a vote of the people under SB 964.
Also, the Oregonian story says that the OLCC Chair, Bob Patridge, is worried about allowing sales of recreational marijuana before the end of 2016 -- which would be two freaking years after Oregonians voted for Measure 91.
So Patridge and other misguided state officials/legislators want to support the marijuana black market after it is legal for the citizens of this state to possess cannabis on July 1, 2015. Where are they supposed to get marijuana between that date and late 2016?
From the Pot Fairy? By growing their own? From their local pot dealer? The latter options are much more likely than the first, unfortunately.
However, just as relatively few people choose to grow their own tomatoes, preferring to buy them in a store, so it is with marijuana. Which, I've heard, is rather tricky to grow. At least, in a high quality manner.
Thus the smartest thing to do would be this: encourage as many medical marijuana dispensaries as possible by forbidding cities and counties from banning them without a vote of the people, and allow the sale of recreational marijuana in those dispensaries soon -- October 1 was mentioned as a possible start date in the Oregonian story.
Sure, eventually a "seed to sale" tracking system for marijuana growers should be implemented.
Until marijuana is legal everywhere in the country, this seems to be needed to keep federal officials from freaking out about the sale of cannabis, which is still crazily classified as a Class 1 illegal drug. But isn't it better to have Oregonians buying their marijuana from state-licensed outlets rather than on the black market?
A commenter on the Oregonian story, Wt Buffalo, left an insightful lengthy comment that I'll include in full in a continuation to this post. Here's some excerpts that mirror what I've been saying.
So, if you really think that Oregon Medical Cannabis grows have an over abundance of cannabis for the Black Market, then why didn't you tap the OMMP growers for the already produced cannabis, ASAP? Or, sign them up to grow more immediately? That would Stop the cannabis inflow to the Black Market, as fast as anything. Dry up the supply for the Black Market and provide cannabis that could be watched, tested, inspected and regulated with contracts.
If Oregon uses the believed excess amount of OMMP produce cannabis for Recreational cannabis, wouldn't that be a much more efficient way to thwart the Black Market. Let the OMMP illegal growers legally produce cannabis for Recreational Cannabis Market. The vast majority of OMMP providers do not provide service illegally. You all think that there is already enough cannabis produced to provide the Black Market. Elusively, they are already producing enough cannabis, then use and test the cannabis for Medical and Recreational use.
Why wait so long to open Recreational Cannabis? The Legislator's and OLCC are costing the Oregon schools the revenues that could reduce class sizes. Providing 40% of the collected Cannabis taxes for many much needed programs, should have been ready by July 1, 2015, about two month's from now.
Give cannabis producers a place to market cannabis legally. Besides, the Black Market Cannabis producers are just laughing at you. The longer you delay the Recreational Cannabis Stores, the more $$ they make. They are also laughing about how the Legislator's and OLCC is making such a self-inflicted mess of M91. The Black Market growers are going to continue to produce cannabis for the rest of the country laughing.
Comment by Wt Buffalo:
The Oregon Voter's approval of M91, entrusted the Legislator's and OLCC to manage properly Recreational Cannabis. There currently seems to be an assumption that all OMMP growers are using the OMMP program to produce illegal cannabis for the Black Market. This is Not True. It is just the opposite. The Black Market producers have hearts and provided Cannabis for the Oregon Medical patient's at a reduced cost. Now, Oregon has the lowest street cannabis prices in the nation. The Black Market is doing a good job of out flanking us again.
So, if you really think that Oregon Medical Cannabis grows have an over abundance of cannabis for the Black Market, then why didn't you tap the OMMP growers for the already produced cannabis, ASAP? Or, sign them up to grow more immediately? That would Stop the cannabis inflow to the Black Market, as fast as anything. Dry up the supply for the Black Market and provide cannabis that could be watched, tested, inspected and regulated with contracts.
If Oregon uses the believed excess amount of OMMP produce cannabis for Recreational cannabis, wouldn't that be a much more efficient way to thwart the Black Market. Let the OMMP illegal growers legally produce cannabis for Recreational Cannabis Market. The vast majority of OMMP providers do not provide service illegally. You all think that there is already enough cannabis produced to provide the Black Market. Elusively, they are already producing enough cannabis, then use and test the cannabis for Medical and Recreational use.
Why wait so long to open Recreational Cannabis? The Legislator's and OLCC are costing the Oregon schools the revenues that could reduce class sizes. Providing 40% of the collected Cannabis taxes for many much needed programs, should have been ready by July 1, 2015, about two month's from now.
Give cannabis producers a place to market cannabis legally. Besides, the Black Market Cannabis producers are just laughing at you. The longer you delay the Recreational Cannabis Stores, the more $$ they make. They are also laughing about how the Legislator's and OLCC is making such a self-inflicted mess of M91. The Black Market growers are going to continue to produce cannabis for the rest of the country laughing. Now, they don't have to worry about the Drug Dogs that have been busting large quantities of drugs. Because, we are retiring Cannabis Drug Dogs.
Do you really think the the Mexican Cartel's are going to stop massive Oregon Marijuana outdoor grows, just because Oregon rewrites the Oregon Health Administration Medical Cannabis Program laws to put them out of business? It is the Oregon's sick and disabled that are going to pay the price for the current path.
The sponsor's of Measure 91 wrote the bill the way exact way they did to try to prevent what is currently going on with Oregon Cannabis laws and regulations. OLCC was specifically designated to handle just Recreational.
Oregon Voter's and the Sponsors of M91 did not have in mind, how the Legislator's and OLCC have miss-used M91 to over power the OHA Medical Cannabis program. M91 was voted on by every day Oregonians. They just may understand the Black Market Marijuana trade. Because, many voting Oregonians have used cannabis for a very long time. You have to "Pay the Fat Man rolling in $$'s to get your Cannabis" is not what is best for OMMP Patient's. Every one that I know that uses Cannabis, needs it as a medicine, young and old.
Oregonian's voted to leave the Medical Cannabis program intact and not dismantled and destroyed the provider's and the system. The Legislator's need to embrace the existing OHA OMMP system and sign OMMP producers and dispensaries up now to provide cannabis for the Recreational Cannabis Market, ASAP. All of this should have been done by July 1, 2015 with the Recreational market opening in two months, not a year and half later in 2016. Voter's Do Not like the way that it is happening now.
OMMP providers were Locked and Loaded ready to provide Medical and Recreational Cannabis. Instead of cooperating and working together to get Cannabis products to the Recreational Market and start collection of much need school funding, OLCC and Lawmaker's have completely made a "Mess" of the whole situation. The Legislator's and OLCC are in the process of punishing the Medical Cannabis Patient's, providers and growers that are legal for the sins of the illegal producer's.
OHA OMMP providers have done an excellent job of providing the Medical Cannabis dispensaries with good, consistent, high quality cannabis. OMMP Provider's and Producer's have the experience to lead the nation in legalization of cannabis. But, all that has happened is lots of laws and rules that just cause self-inflicted chaos that is going to Help the Black Market Not Eliminate It.
OHA OMMP system is designed to provide Low or No Cost Cannabis for Oregon Medical Cannabis Patient's. The OMMP growers and people that illegally miss used the OMMP program should not muddle up the whole OHA OMMP Cannabis system program.
OLCC and the Legislator's have set up from the beginning to punish the OMMP patient's, dispensaries and growers.
The most recent bills from the Senate, House and OLCC recommendations, just continue on a path of destruction of the currently working Medical and future Recreational Cannabis market. Therefore, continuing to unintentionally(?) support the Black Market. Follow the Money, that is where the clues lay. Who is benefiting from the current path?
The Black Market wants Oregon to fail miserably. We, seem to be providing the tools, rules and regulations to do just that, Fail at implementing Measure 91. This is a very sadly state of affairs for the Sick and Disabled Medical Cannabis patient's. Don't you think that we already live with enough issues of stress. Why is OLCC and the Oregon Legislator's punishing OHA OMMP Patient's?
All cannabis laws, rules and regulations in Oregon should use the proper name, Cannabis. Not, Marijuana, because it is a very derogatory term left over from the beginning of and years of the drug wars.
Stop the Drug War on Cannabis, there are much more dangerous street drugs that need attention. Oregon voters ended the Drug War in Oregon. OLCC and the Legislator's seem to be continuing the Drug Wars, because of the approach is just about the same as always, the Drug War that has been lost a long time ago. But, it seems to me that the Oregon Legislator's and OLCC are going about M91 the wrong way.
The legislature is considering altering Measure 91’s marijuana tax. Good.
The grower tax was poorly thought out. Indoor weed costs more to grow, but wholesales for twice the price of outdoor. One indoor plant might produce one pound; outdoor, five? Lower-carbon footprint outdoor growers get one crop/year; indoors, six-eight. Outdoor bud forced to early harvest by fall rains can’t be sold/taxed as leaf, for extracts, so the grower can recover some of his losses. There is no way to tax the higher value, or THC levels, of extracts etc. Do we tax a bottle of Budweiser the same as a fifth of Glenfiddich? Do we tax the barley? Or the beer? All 0f the burden is on the grower, which could sometimes be ruinous.
Good indoor black market weed wholesales for ~$2000/ lb. $35/oz is 28 percent; it’s 56 percent of an outdoor grower’s gross at $1,000/lb during the fall harvest “flush.” Add the 38 percent it costs to grow*, and 66 percent of the indoor grower’s gross is gone, bef0re she’s even paid the mortgage or property taxes; the lower-carbon-footprint outdoor grower has already been forced out. This is not going to be get-rich-quick, and unfair taxes could kill it.
Growers should be able to process their produce, if the process is as safe as cooking (no butane). Otherwise charging 15-16 percent at retail, after all value has been added, should net the state about the same money as charging the grower 28 percent. If grower, processor, wholesaler and retailer each pay four or five percent, the state will come out ahead, and will not lose revenue to a fixed tax when the price increases.
OLCC estimates that recreational Maryjane could be a $1.3 billion/year industry. That is either a lot of revenue for a few tobacco companies, or 13,000 new jobs each grossing $100,000/year, netting ~$62,500 before tax (*based on one indoor medical grower’s estimate that her costs are ~3/8 of her gross). There should be licenses for rural outdoor grows up to 99 plants; 100+ triggers special attention from the federal jackboots. 99 plants might gross $1/2 million/year, which could be the salvation of a lot of family farms—half a mil on half an acre leaves room to grow a lot of produce on the other 39 1/2, and if the romanesco you grow as a labor of love barely breaks even, so what, if the mortgage gets paid and the kids go to college? Urban outdoor commercial growers should be allowed to grow as few as six plants in a protected, private back yard; 12 plants might net a good outdoor grower $50k/yr. pre-tax, and for a cottage industry that leaves time for other pursuits, that’s a decent living. And Oregon needs a lot more decent livings, spread through communities where the economics multiply, instead of Monsanto/ADM sucking big money out of state.
When prohibition ends nationwide, Oregon’s new $1.3 billion industry might, given our reputation for growing superior weed, go to $13 billion. OLCC should be ready to let growers expand and add new growers to keep up with demand, or we’ll miss out on that. And when Oregon’s universities begin exploring the medicinal uses of cannabinoids, $13 Billion might go to --$130 billion? So, y’ know, maybe we shouldn’t tax the growers out of business right at the start?
Posted by: NameJonn O | June 13, 2015 at 11:56 AM