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	<title type="text">Mary Jane Gibson | Vox</title>
	<subtitle type="text">Our world has too much noise and too little context. Vox helps you understand what matters.</subtitle>

	<updated>2023-02-06T18:16:04+00:00</updated>

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		<entry>
			
			<author>
				<name>Mary Jane Gibson</name>
			</author>
			
			<title type="html"><![CDATA[Is CBD in trouble?]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2023/2/6/23584909/cbd-legal-fda-regulation-cannabis" />
			<id>https://www.vox.com/2023/2/6/23584909/cbd-legal-fda-regulation-cannabis</id>
			<updated>2023-02-06T13:16:04-05:00</updated>
			<published>2023-02-06T07:00:00-05:00</published>
			<category scheme="https://www.vox.com" term="Marijuana Legalization" /><category scheme="https://www.vox.com" term="Money" /><category scheme="https://www.vox.com" term="Policy" />
							<summary type="html"><![CDATA[Over the past few years, CBD has rocketed to the forefront of the wellness industry, touted as a magical elixir that can treat all sorts of maladies, including pain, anxiety, stress, sleep disorders, diabetes, acne, depression, and even, according to some particularly bold claims, cancer.&#160; The limited research into the medical benefits and risks of [&#8230;]]]></summary>
			
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<p>Over the past few years, CBD has <a href="https://www.vox.com/the-goods/2018/11/1/18024806/cbd-oil-vape-hemp">rocketed to the forefront</a> of the wellness industry, touted as a magical elixir that can treat all sorts of maladies, including pain, anxiety, stress, sleep disorders, diabetes, acne, depression, and even, according to some particularly bold claims, cancer.&nbsp;</p>

<p>The limited research into the medical benefits and risks of CBD doesn&rsquo;t support most of these cure-all <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7723146/">assertions</a>. But CBD&rsquo;s rise in popularity &mdash; which began <a href="https://www.vox.com/the-goods/2018/11/1/18024806/cbd-oil-vape-hemp">exploding</a> in 2019 due to a confluence of consumer trends, including a boom in herbal supplements and the spread of marijuana legalization &mdash; was <a href="https://www.statista.com/statistics/1238020/covid-19-impact-on-cbd-use-worldwide/">bolstered</a> by the coronavirus pandemic as people sought out ways to alleviate the unique stresses of recent years. US sales <a href="https://www.statista.com/statistics/1067467/cbd-product-dollar-sales-us/">reached $4.17 billion</a> in 2022, and forecasts predicted that the market could <a href="https://www.fda.gov/media/153183/download">quadruple</a> by 2026.</p>

<p>Today, you can buy CBD oil, vapes, tinctures, and edibles in convenience stores, gas stations, and smoke shops from Florida to Oregon. You can shop online and order everything from CBD bath bombs to dog treats; you can drink <a href="https://goop.com/food/entertaining/a-guide-to-cbd-spiked-cocktails/">Goop-approved CBD cocktails</a> or nosh on infused candy and cookies. The anxiety drug du jour seems to have found its way into every kind of lifestyle and household product imaginable. <a href="https://www.cannapaint.net/">Nail polish</a>? Check. <a href="https://canbedone.com/products/toothpicks">Toothpicks</a>? Yep! You can even buy a <a href="https://cbdpillow.com/">CBD pillow</a> and <a href="https://shopcbdhome.com/products/cbd-technofiber%E2%84%A2-sheets">bedsheets</a> to infuse your sleep experience with maximum chill. It&rsquo;s a Wild West time if you&rsquo;re a hemp entrepreneur.</p>

<p>But CBD, a cannabis compound also known as cannabidiol, exists in a gray area under federal law, and its exact legality has long been tricky to define. Any substance marketed as a supplement or food additive has to meet safety standards issued by the Food and Drug Administration, and that&rsquo;s where things have gotten hairy for CBD manufacturers and marketers. Food and drinks that contain CBD have never actually been FDA-approved.</p>

<p>For years, the FDA hasn&rsquo;t come down one way or another with guidance on how to regulate, label, or market CBD in supplements and food products. So store shelves proliferated with quasi-legal tinctures and gummies and beverages, all taking advantage of the <a href="https://observer.com/2019/06/cannabis-cbd-startup-investment-fda-regulation-risk/">FDA gray area.</a>&nbsp; The FDA <em>has </em><a href="https://www.fda.gov/news-events/public-health-focus/warning-letters-and-test-results-cannabidiol-related-products">warned companies</a> selling CBD products and consumers about unproven health claims made by manufacturers, steadfastly holding that CBD doesn&rsquo;t meet the definition of a dietary supplement &mdash; a position that has been challenged by the industry and consumers as demand for CBD has boomed. Without regulation, however, there&rsquo;s no way for a consumer to know what, exactly, is in that CBD they bought at the gas station &mdash; or <a href="https://finance.yahoo.com/news/10-gas-station-rip-offs-011600456.html">if it contains any CBD at all</a>.</p>

<p>In late January, the agency finally issued a decision on CBD, and it&rsquo;s a potentially damning blow to the industry. The FDA <a href="https://www.fda.gov/news-events/press-announcements/fda-concludes-existing-regulatory-frameworks-foods-and-supplements-are-not-appropriate-cannabidiol">announced</a> that it was denying three citizen petitions requesting guidance on CBD; the agency&rsquo;s existing safety standards for supplements or food additives, it ruled, aren&rsquo;t sufficient to regulate CBD&rsquo;s use. Further, it expressed concerns that CBD products could be dangerous, especially with long-term use. Essentially, the FDA has said that CBD is a headache that it doesn&rsquo;t want to deal with, so it&rsquo;s kicking things over to Congress to sort out the mess.</p>

<p>&ldquo;We have not found adequate evidence to determine how much CBD can be consumed, and for how long, before causing harm,&rdquo; FDA principal deputy commissioner Janet Woodcock <a href="https://www.fda.gov/news-events/press-announcements/fda-concludes-existing-regulatory-frameworks-foods-and-supplements-are-not-appropriate-cannabidiol">said</a> in a statement. &ldquo;[A]fter careful review, the FDA has concluded that a new regulatory pathway for CBD is needed that balances individuals&rsquo; desire for access to CBD products with the regulatory oversight needed to manage risks.&rdquo; The agency said that it would work with Congress to develop a new cross-agency regulatory framework for the substance.&nbsp;</p>

<p>The past few years have been a trailblazing time for the CBD industry, with government oversight struggling to keep up with the burgeoning market. Will the FDA&rsquo;s announcement force producers underground, or will the gray market continue to flourish while it awaits federal regulation?</p>
<img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24408077/GettyImages_1244875275.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="CBD oils are pictured at the Hudson Cannabis farm in Hudson, New York, in November 2022. “For immune and inflammation support” reads the bottle. | Angus Mordant/Bloomberg via Getty Images" data-portal-copyright="Angus Mordant/Bloomberg via Getty Images" /><h2 class="wp-block-heading">Why CBD regulation has been so tricky</h2>
<p>Cannabidiol is an active ingredient found in the cannabis plant; it&rsquo;s the second most abundant compound after its cousin tetrahydrocannabinol, a.k.a. THC. Unlike THC, CBD doesn&rsquo;t cause the euphoric effect associated with marijuana. This is partly why it became so popular in recent years; because the compound is not considered psychoactive, cannabis-curious consumers believed they could reap health benefits from the plant without getting high.&nbsp;</p>

<p>All hemp is cannabis, but not all cannabis is hemp. When the <a href="https://www.fda.gov/news-events/congressional-testimony/hemp-production-and-2018-farm-bill-07252019">2018 Farm Bill legalized hemp</a> &mdash; defined as cannabis containing less than 0.3 percent THC &mdash; and its derivatives, including CBD, entrepreneurs saw dollar signs without the <a href="https://www.vox.com/22968976/federal-marijuana-legalization-cannabis-policy-decriminalization">legalization and regulatory hurdles</a> facing THC.&nbsp;</p>

<p>Yet part of what&rsquo;s hampered regulation of CBD is exactly what&rsquo;s hampered regulation of THC: Research on cannabis compounds is nearly nonexistent in the United States since marijuana is still illegal under federal law. The Drug Enforcement Agency <a href="https://mjbizdaily.com/dea-preparing-to-ok-companies-to-grow-cannabis-for-scientific-research/">strictly limits</a> marijuana cultivation for research, and the <a href="https://www.vox.com/22968976/federal-marijuana-legalization-cannabis-policy-decriminalization">glacial pace</a> of cannabis legalization means scientists and researchers have largely been unable to investigate the medical benefits and risks of cannabinoids, leaving agencies like the FDA with little hard data with which to make regulatory decisions.&nbsp;</p>

<p>CBD, however, has been <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5767492/">scientifically linked</a> to the prevention of seizures, and the FDA has approved a prescription drug called Epidiolex that contains CBD as an active ingredient. This is largely also why the agency refuses to regulate other CBD products; a provision in the FDA&rsquo;s <a href="https://www.fda.gov/regulatory-information/laws-enforced-fda/federal-food-drug-and-cosmetic-act-fdc-act">Federal Food, Drug, and Cosmetic Act</a> states that if a substance such as THC or CBD is an active ingredient in a drug that has been approved or is being investigated in clinical trials, any other products containing that substance are <a href="https://www.fda.gov/media/131878/download">excluded from the definition</a> of a dietary supplement. Because it&rsquo;s an ingredient in a drug, the FDA argues, CBD cannot be used in food and drinks. Under current regulations, it&rsquo;s even off the table for dog treats.</p>

<p>Last August, bipartisan congressional lawmakers expressed frustration in a scathing letter to the FDA commissioner, over a <a href="https://www.marijuanamoment.net/bipartisan-bill-to-regulate-hemp-derived-cbd-in-food-and-beverages-filed-in-congress/">bill</a> that would have regulated hemp-derived CBD as a food additive. The lawmakers <a href="https://www.marijuanamoment.net/bipartisan-lawmakers-slam-completely-insufficient-fda-response-to-hemp-bill-request-and-lack-of-cbd-regulations/">called out the agency&rsquo;s brief response</a> to their request for assistance crafting a regulatory framework as &ldquo;completely insufficient.&rdquo; Now that the FDA has punted oversight to Congress, the CBD industry is hopeful that change is finally underway. US Hemp Roundtable general counsel Jonathan Miller says legislation will be reintroduced in the House and Senate in the next few weeks. &ldquo;We completely disagree with the FDA that they don&rsquo;t have the authority to regulate CBD,&rdquo; Miller told Vox. &ldquo;What we do agree on is that it&rsquo;s time for Congress to act.&rdquo;</p>

<p>Miller believes the FDA&rsquo;s fixation on CBD as a pharmaceutical is misguided. &ldquo;We completely disagree with their assessments on CBD safety,&rdquo; he says. &ldquo;The FDA is focused on the side effects of CBD products that have many thousands of milligrams per serving, as opposed to all the studies we&rsquo;ve provided, measuring products typically sold in stores that contain 25, 30, 50 milligrams &mdash; studies that consistently show they don&rsquo;t have adverse effects.&rdquo;&nbsp;</p>

<p>Over-the-counter access to hemp and CBD products is essential for people who use them as part of their wellness regimen, says Olivia Alexander, founder and CEO of the national topicals and wellness brand <a href="https://kushqueen.shop/">Kush Queen</a>: &ldquo;It&rsquo;s especially necessary in states without access to adult-use cannabis and expensive medical markets.&rdquo; Kush Queen provides <a href="https://kushqueen.shop/pages/lab-tests">lab results for products</a> on its website, and Alexander counts her business among a few trusted CBD companies, including Charlotte&rsquo;s Web, which is an <a href="https://www.bloomberg.com/news/articles/2022-10-12/major-league-baseball-signs-sponsorship-deal-with-cbd-company#:~:text=Major%20League%20Baseball%20signed%20an,Wednesday%20in%20an%20emailed%20statement.">official supplier to Major League Baseball</a>. &ldquo;But there are also tons of crazy fringe cannabinoid brands,&rdquo; she says. &ldquo;We need regulation.&rdquo;</p>

<p>In 2019, the National Cannabis Industry Association (NCIA) <a href="https://790303.fs1.hubspotusercontent-na1.net/hubfs/790303/NCIA%20White%20Papers/RegulatoryFramework-WhitePaper-Final-Digital.pdf">published a white paper</a> outlining a framework for CBD products with four lanes of regulation, with pharmaceutical drugs at one end and CBD food and dietary supplements at the other. &ldquo;We need to ensure that CBD is accurately labeled and that we&rsquo;re careful about health-related claims being made on the packaging,&rdquo; says NCIA director of communications Bethany Moore. &ldquo;It should be regulated to protect public health, but it&rsquo;s a low safety risk.&rdquo;</p>

<p>Hemp cultivators have also been <a href="https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2021/07/09/the-hemp-boom-is-over-what-now">hugely affected</a> by federal inaction; some hemp advocates say the FDA has stifled the industry as the skyrocketing legal hemp supply tanked prices, leaving many farmers unable to cash in on their harvest. &ldquo;There was tremendous excitement among farmers after the 2018 Farm Bill [which legalized the production and sale of hemp], and since then, because of the FDA&rsquo;s lack of regulation, hemp and CBD biomass prices have crashed by more than 95 percent,&rdquo; says Miller. &ldquo;There&rsquo;ve been a lot of bankruptcies, and many farmers have been left holding the bag.&rdquo; He is hopeful that bipartisan support for hemp farmers in Congress will prevail. &ldquo;Whether you&rsquo;re talking about [Republican] Mitch McConnell or [Democrat] Ron Wyden &mdash; those two don&rsquo;t agree on very much, but they both feel strongly about this.&rdquo;</p>
<h2 class="wp-block-heading">A collective shrug from the gray market</h2>
<p>The FDA declined a request for an interview when Vox reached out to ask about what, if anything, will happen with existing products. Will they be pulled off shelves? Will the agency continue to issue warning letters to CBD businesses making health-related claims? Questions to the FDA went unanswered, but, given the speed at which federal regulators operate, the CBD gray market looks likely to keep chugging along for the time being.&nbsp;</p>

<p>As the industry waits for Congress to pick up the regulatory baton, CBD shops and e-commerce sites across the country told Vox that they&rsquo;re keeping calm and carrying on. When reached by phone, employees at CBD stores weren&rsquo;t even aware of the FDA&rsquo;s announcement; Vox spoke with retail employees and store owners in Rhode Island, Massachusetts, New York, Kentucky, and Missouri. &ldquo;I can&rsquo;t say I&rsquo;ve noticed anything,&rdquo; said an employee at a New York outlet of CBD Kratom, a chain with more than 50 retail locations nationwide. A worker at CBD World in Warwick, Rhode Island, also said she had yet to see any change in sales or store policy.</p>
<img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24408070/GettyImages_1397571867.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="A CBD Kratom retail store is pictured in New York’s Times Square. | Lindsey Nicholson/UCG/Universal Images Group via Getty Images" data-portal-copyright="Lindsey Nicholson/UCG/Universal Images Group via Getty Images" />
<p>&ldquo;This is my first time even hearing about it,&rdquo; a staffer with SunMed CBD in Worcester, Massachusetts, told Vox, adding that he believes most customers don&rsquo;t realize that CBD isn&rsquo;t FDA-regulated. &ldquo;I don&rsquo;t think it&rsquo;s made any kind of impact. The fact that I don&rsquo;t know this information means your average person doesn&rsquo;t know this information.&rdquo; He said that customers who ask about CBD safety at SunMed are told to consult a physician if they have concerns about interactions with prescription drugs, and that all of their products have available lab results, including cannabinoid and terpene profiles, and information on potency, pesticides, herbicides, and heavy metals.</p>

<p>The owner of the SunMed CBD store, Alex Valle, was also surprised to hear about the FDA announcement. &ldquo;I hadn&rsquo;t heard about it, but I think [regulation] is long overdue,&rdquo; he said. &ldquo;I think it&rsquo;s fantastic, given that cannabis has been utilized for thousands of years. I&rsquo;m glad they&rsquo;re capable of moving forward with this.&rdquo;</p>

<p>While hemp and cannabis advocates hold out hope that the FDA&rsquo;s decision will put pressure on Congress to regulate CBD and other cannabis products sensibly, it&rsquo;s business as usual for most purveyors. &ldquo;I&rsquo;m just chilling until they get it together,&rdquo; says Alexander, of Kush Queen. &ldquo;The FDA announcement isn&rsquo;t really going to affect us in any way.&rdquo;</p>

<p>For now, consumers will have to make their own decisions on whether to use CBD products, or wait for more data and regulation.&nbsp;</p>
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			<entry>
			
			<author>
				<name>Mary Jane Gibson</name>
			</author>
			
			<title type="html"><![CDATA[Is legal weed doomed to be run by big business?]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/the-goods/23509642/marijuana-cannabis-legalization-prohibition-biden" />
			<id>https://www.vox.com/the-goods/23509642/marijuana-cannabis-legalization-prohibition-biden</id>
			<updated>2022-12-27T18:59:04-05:00</updated>
			<published>2022-12-28T08:30:00-05:00</published>
			<category scheme="https://www.vox.com" term="Marijuana Legalization" /><category scheme="https://www.vox.com" term="Money" /><category scheme="https://www.vox.com" term="Policy" /><category scheme="https://www.vox.com" term="Politics" />
							<summary type="html"><![CDATA[Last October, when President Biden announced that he would take steps to overhaul America&#8217;s marijuana laws and pardon those convicted of simple marijuana possession at the federal level, it seemed on the surface as though the pendulum were finally swinging in the direction that cannabis legalization advocates had been wanting for decades. It didn&#8217;t take [&#8230;]]]></summary>
			
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<img alt="" data-caption="A worker trims leaves of young cannabis plants in a Florida greenhouse run by Cresco Labs in March 2022. Some pro-cannabis activists have been sounding the alarms that so-called multi-state operators like Cresco — a publicly traded company — could dominate a legal market. | Eva Marie Uzcategui/Bloomberg via Getty Images" data-portal-copyright="Eva Marie Uzcategui/Bloomberg via Getty Images" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24319102/GettyImages_1239784240.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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	A worker trims leaves of young cannabis plants in a Florida greenhouse run by Cresco Labs in March 2022. Some pro-cannabis activists have been sounding the alarms that so-called multi-state operators like Cresco — a publicly traded company — could dominate a legal market. | Eva Marie Uzcategui/Bloomberg via Getty Images	</figcaption>
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<p>Last October, when President Biden <a href="https://www.vox.com/policy-and-politics/2022/10/8/23393412/biden-marijuana-pardons-decriminalization">announced</a> that he would take steps to overhaul America&rsquo;s marijuana laws and pardon those convicted of simple marijuana possession at the federal level, it seemed on the surface as though the pendulum were finally swinging in the direction that cannabis legalization advocates had been wanting for decades.</p>

<p>It didn&rsquo;t take long for critics to quickly point out, however, that Biden&rsquo;s call to review the classification of cannabis &mdash; currently a Schedule 1 illegal drug with no medical uses, on par with heroin and LSD &mdash; contained one glaring pitfall for those who support legalization: According to advocates, declassifying marijuana completely is the only path forward for a legal cannabis marketplace. Reclassifying, or simply downgrading marijuana to Schedule 2, 3, or 4? That would put cannabis on the level of such drugs as oxycodone or ketamine or Valium &mdash; and topple any hope for recreational sales.</p>

<p>It has been a tumultuous year for cannabis policy reform in America, with conflicting interests warring over one of the fastest-growing industries in the US. Legal sales of marijuana were <a href="https://mjbizdaily.com/us-cannabis-sales-estimates/">expected to top</a> $33 billion by the end of 2022, largely driven by new, adult-use markets in several states, yet cannabis remains illegal under federal law, and <a href="https://www.lastprisonerproject.org/cannabis-prisoner-scale">thousands of people</a> are still in prison for marijuana-related offenses.</p>

<p>Against this backdrop, one surprising trend is emerging: push and pull among pro-cannabis advocates who say that legalization may not be the right move after all &mdash; or at least not the way it&rsquo;s shaping up. Their concern? Who will actually benefit from a federally regulated industry.</p>

<p>If cannabis is rescheduled under the Controlled Substances Act, regulating marijuana as medicine, it might, advocates worry, allow Big Pharma to control the market. And if it&rsquo;s legalized at a federal level, some also fear that conglomerates like <a href="https://mjbizdaily.com/amazon-lobbies-government-on-cannabis-policy/">Amazon</a> could quickly dominate a national adult-use marijuana industry.</p>

<p>Some activists have already begun to attempt to slow, or stop, legalization legislation, as recently as the midterm elections in November. Progressive cannabis advocates <a href="https://www.marijuanamoment.net/some-arkansas-marijuana-activists-oppose-legalization-measure-on-november-ballot/">opposed</a> Arkansas&rsquo;s legalization measure, <a href="https://ballotpedia.org/Arkansas_Issue_4,_Marijuana_Legalization_Initiative_(2022)">Issue 4</a>, which was <a href="http://www.arkansasethics.com/wp-content/uploads/2021/10/ResponsibleGrowth2022-10-17.pdf">funded mainly</a> by the medical cannabis industry, claiming that it would have allowed existing medical marijuana businesses to control the adult-use market and rewarded industry backers of the measure by limiting new competitors.</p>

<p>Critics also highlighted the measure&rsquo;s lack of social equity provisions, intended to ensure that people of color, and those with convictions for marijuana offenses, would be afforded an opportunity to participate in the legal industry. Issue 4 would not have expunged records for past cannabis offenses, instead funneling a percentage of tax proceeds to law enforcement.</p>

<p>In the end, even though one <a href="https://talkbusiness.net/2022/09/poll-support-grows-for-recreational-marijuana-majority-favors-change-to-abortion-law/">survey</a> showed that most Arkansas voters favored legalization in September, 56 percent voted against the measure on Election Day.&nbsp;</p>

<p>&ldquo;I&rsquo;m pro-regulation,&rdquo; Tyler McFadden, a board member of the cannabis reform group BOWL PAC and former political associate with the National Organization for the Reform of Marijuana Laws, told Vox. &ldquo;It&rsquo;s a safety issue. However, when regulation comes down to who can make money, that presents a problem.&rdquo;</p>

<p>McFadden says she believes that rescheduling marijuana under federal law would pad the coffers of drug companies while doing nothing to <a href="https://www.vox.com/the-highlight/21749376/marijuana-expungements-biden-harris-conviction-drug-war">address the harms</a> that decades of prohibition have caused, largely to people and communities of color through <a href="https://drugpolicy.org/issues/race-and-drug-war">disproportionate and discriminatory</a> enforcement of drug laws. &ldquo;Rescheduling only puts money into the already wealthy people&rsquo;s pockets &mdash; people who have never had to deal with incarceration or aggressive policing,&rdquo; she says. &ldquo;The advocacy community is solid: It has to be descheduled.&rdquo;</p>

<p>Artist and activist Brian Box Brown is the creator of <em>Legalization Nation</em>, a comic strip aimed at educating people about the complexities of the emerging legal cannabis industry. One strip begins <a href="https://www.instagram.com/p/Cl0914Bu6ad/">with a panel</a> that says, &ldquo;The legalization of cannabis offers us a front-row seat [&hellip;] to see a market be monopolized.&rdquo;</p>

<p>Caps on cannabis business licenses like the one proposed by Arkansas lawmakers are growing in popularity and limit entry to the few who are able to secure expensive permits, ceding the lion&rsquo;s share of the cannabis industry to large companies and multi-state operators, Brown and others say. He says it&rsquo;s easy to understand why some pro-cannabis factions are also anti-legalization. &ldquo;When a bill like that gets passed, there have to be years of reform to allow the market to open up to small businesses. I think that&rsquo;s the pushback: We know the outcome. I want legalization, but not this type.&rdquo;</p>

<p>Reformers also resent some medical multi-state operators&rsquo; position that marijuana is a dangerous drug and should be heavily controlled, says Brown. &ldquo;MSOs want cannabis to be legalized, but they use the stigma surrounding it to create monopolistic markets. Legislators will say, &lsquo;We need to regulate this heavily, and limit it to these six people who know what they&rsquo;re doing.&rsquo; Cannabis corporations use that to their advantage.&rdquo;</p>

<p>It&rsquo;s been <a href="https://www.pewresearch.org/politics/2013/04/04/majority-now-supports-legalizing-marijuana/">nearly a decade</a> since the first time a majority of Americans supported legalizing cannabis. Support has since grown in nearly all corners; according to an April 2021 <a href="https://www.pewresearch.org/fact-tank/2021/04/16/americans-overwhelmingly-say-marijuana-should-be-legal-for-recreational-or-medical-use/">Pew Research Center survey</a>, 88 percent of US adults favor some form of legalization. Twenty-one states now have legal recreational marijuana, and with Biden&rsquo;s announcement, it appears that it&rsquo;s only a matter of time before the federal government repeals marijuana prohibition (though there are <a href="https://www.vox.com/22968976/federal-marijuana-legalization-cannabis-policy-decriminalization">myriad matters to be hammered out</a>, from banking regulations to which agencies should regulate cannabis to whether automatic expungements ought to be included).&nbsp;&nbsp;</p>

<p>In practice, cannabis legalization has proven piecemeal and sometimes disappointing for pro-pot reformers. McFadden points to Virginia&rsquo;s nascent legalization program as one cautionary tale. Just four cannabis companies are <a href="https://www.virginiabusiness.com/article/medical-cannabis-companies-amass-political-power-in-va/">licensed to serve the state</a>; all four are owned by out-of-state conglomerates. Small businesses and local entrepreneurs are mostly shut out from participating in the industry. &ldquo;In my opinion, Virginia really screwed up, because [the law] is very specific to corporate interests,&rdquo; McFadden says.</p>
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<p>In addition to the <a href="https://www.marijuanamoment.net/congress-keeps-ban-on-d-c-marijuana-sales-while-failing-to-act-on-cannabis-banking-and-expungements/">Safe and Fair Enforcement (SAFE) Banking Act</a> &mdash; which was excluded from the most recent congressional spending bill, to cannabis advocates&rsquo; dismay &mdash; <a href="https://www.vox.com/22968976/federal-marijuana-legalization-cannabis-policy-decriminalization">several pieces of legislation</a> are being pushed forward in the hope that a bipartisan effort will legalize cannabis at a federal level in the next few years. The <a href="https://www.hickenlooper.senate.gov/press_releases/hickenlooper-introduces-bill-to-prepare-for-marijuana-legalization/">most recent</a> bill under consideration, the Preparing Regulators Effectively for a Post-Prohibition Adult Use Regulated Environment (PREPARE) Act, directs the attorney general to develop a regulatory framework for when the federal government legalizes marijuana.</p>

<p>In 2021, Amazon <a href="https://www.aboutamazon.com/news/policy-news-views/amazon-is-supporting-the-effort-to-reform-the-nations-cannabis-policy">announced its support</a> for federal marijuana legalization and an end to drug testing of its employees for cannabis. Reform advocates celebrated the policy, but it also <a href="https://www.forbes.com/sites/chrisroberts/2021/06/10/amazon-likes-marijuana-legalization-will-amazon-prime-deliver-cannabis-probably-not/?sh=61bb2df22fa6">raised questions</a> about whether the company will move to dominate the industry as soon as cannabis is legal under federal law.&nbsp;(A representative for the company told the Washington Post early this year that <a href="https://www.washingtonpost.com/politics/2022/01/26/why-amazon-is-ramping-up-its-push-legalizing-marijuana/">selling cannabis is not the company&rsquo;s goal</a>, and that its interest in cannabis legalization is to help broaden its hiring pool.)</p>

<p>If the federal government legalizes cannabis, lawmakers should beware of monopolization by national corporations, says Shaleen Title, chief executive of the cannabis policy think tank <a href="https://www.parabolacenter.com/">Parabola Center</a>. Title authored a <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4018493">paper on preventing monopolies</a> in the marijuana market, outlining how domination by big business is a threat to the existing cannabis industry. She writes that &ldquo;the recent wave of market consolidation and high barriers to entry for smaller actors foreshadow a future national market controlled by only a handful of companies.&rdquo;</p>

<p>Title cautions that tobacco and alcohol companies are quietly <a href="https://www.parabolacenter.com/cannabis-legalization-must-address-monopoly-dangers/">laying the groundwork</a> with the hope of controlling the legal cannabis market. Take, for example, the nonprofit Coalition for Cannabis Policy, Education, and Regulation (CPEAR), whose <a href="https://www.cpear.org/who-we-are/">aim</a> is to &ldquo;advance a comprehensive federal regulatory framework for cannabis.&rdquo; That group is funded by several tobacco and alcohol brands, including Altria, the parent company of Philip Morris USA; the Molson Coors Beverage Company; Constellation Brands, the conglomerate behind Corona and Modelo; and the National Association of Convenience Stores, among others. The coalition is led by respected experts from the cannabis industry, including executive director Andrew Freedman, Colorado&rsquo;s former cannabis czar, and senior adviser Shanita Penny, a former president of the Minority Cannabis Business Association.</p>

<p>The combination of funding from tobacco and alcohol companies and the coalition&rsquo;s roster of influential policy experts from the cannabis space has some industry watchdogs concerned about the effect the group could have in favor of big business. <a href="https://www.publichealthlawcenter.org/sites/default/files/resources/Tobacco-Industry-Targeting.pdf">Studies show</a> that the tobacco industry has a history of targeting young smokers and marginalized communities, especially Black communities. If Big Tobacco influences federal cannabis policy, it would be a doomsday scenario for marijuana reform advocates concerned with issues like harm reduction, Title says. Tobacco companies &ldquo;lie to the public, manipulate research, and hide the harms of their products. We do not want them in charge of public health.&rdquo;</p>
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<p>Despite concerns that federal legalization could end up going badly if corporate interests prevail, Brown says he believes that reformers should feel encouraged to move full speed ahead while learning from failures to address social equity and criminal justice reforms at the state level. &ldquo;As long as [we] have the proper vision for what legalization should be, it should be less difficult to create an equitable market,&rdquo; he says. He points to Canada as a possible road map for federal regulation in the US. &ldquo;They&rsquo;ve run into every problem that we&rsquo;re talking about,&rdquo; Brown says. &ldquo;But it seems like there&rsquo;s no communication with Canadian legislators, and almost no communication from state to state.&rdquo;</p>

<p>McFadden says that reform advocates will continue to press forward no matter what. &ldquo;I don&rsquo;t think any legislation that is seriously up for debate right now is a step in the wrong direction,&rdquo; she says. &ldquo;We don&rsquo;t begrudge anyone who&rsquo;s cautious about federal movement. It&rsquo;s a matter of making sure that we&rsquo;re taking steps on the right path. There are thousands of people locked up right now for small amounts of possession or distribution or paraphernalia. Those people need to be at home with their families, contributing to our economy, and living their lives without having to deal with the specter of a criminal record, the collateral consequences of which effectively make people live a life that they might not have envisioned and that they don&rsquo;t deserve. We&rsquo;re focusing on moving forward because we need to get these expungements through.&rdquo;</p>

<p>&ldquo;We&rsquo;re taking steps every day to a better future,&rdquo; McFadden continues. &ldquo;It might not be tomorrow, it might not even be next year, but as long as we&rsquo;re doing something about it now, we&rsquo;ll reach it faster than we would if we stand here twiddling our thumbs, waiting for something to happen without doing anything about it.&rdquo;</p>

<p>Brown argues that lawmakers can craft effective cannabis policies, particularly when they listen to activists rather than lobbyists and special interest groups. &ldquo;We need to recognize the things that are working and stop catering to corporate wishes. This is a brand new industry. It will probably be corrupted in time &mdash; but we don&rsquo;t have to start with corruption.&rdquo;</p>
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			<author>
				<name>Mary Jane Gibson</name>
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			<title type="html"><![CDATA[A mixed night for marijuana on the ballot]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2022/11/7/23445044/results-marijuana-legalization-bill-maryland-missouri" />
			<id>https://www.vox.com/2022/11/7/23445044/results-marijuana-legalization-bill-maryland-missouri</id>
			<updated>2022-11-09T10:43:43-05:00</updated>
			<published>2022-11-09T09:40:32-05:00</published>
			<category scheme="https://www.vox.com" term="Marijuana Legalization" /><category scheme="https://www.vox.com" term="Midterm Elections 2022" /><category scheme="https://www.vox.com" term="Policy" /><category scheme="https://www.vox.com" term="Politics" />
							<summary type="html"><![CDATA[Ten years ago, Washington and Colorado became the first states to legalize marijuana for adult use when voters approved ballot measures in 2012. Since then, a total of 19 states and the District of Columbia have legalized recreational marijuana. The results on Tuesday night were more mixed. Legal marijuana won in Maryland and Missouri, bringing [&#8230;]]]></summary>
			
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<img alt="" data-caption="A worker at a marijuana farm in Grandview, Missouri, on October 31. Marijuana growers and sellers in Missouri and several other states have been helping fund campaigns as voters decide whether to legalize recreational sales in upcoming elections. | Charlie Riedel/AP" data-portal-copyright="Charlie Riedel/AP" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24175681/AP22305667051313a.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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	A worker at a marijuana farm in Grandview, Missouri, on October 31. Marijuana growers and sellers in Missouri and several other states have been helping fund campaigns as voters decide whether to legalize recreational sales in upcoming elections. | Charlie Riedel/AP	</figcaption>
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<p>Ten years ago, Washington and Colorado became the first states to legalize marijuana for adult use when voters approved ballot measures in 2012. Since then, a total of 19 states and the District of Columbia have legalized recreational marijuana.</p>

<p>The results on Tuesday night were more mixed. Legal marijuana won in Maryland and Missouri, bringing the total of states where recreational use is allowed to 21. In Arkansas, North Dakota, and South Dakota, though, voters rejected the measures.</p>

<p>Federal marijuana legalization is <a href="https://www.vox.com/22968976/federal-marijuana-legalization-cannabis-policy-decriminalization">seemingly stopped in its tracks</a>.</p>

<p>According to an April 2021 <a href="https://www.pewresearch.org/fact-tank/2021/04/16/americans-overwhelmingly-say-marijuana-should-be-legal-for-recreational-or-medical-use/">Pew Research Center survey</a>, 91 percent of US adults favor some form of marijuana legalization. Before Election Day, 43 percent of US adults <a href="https://www.pewresearch.org/fact-tank/2021/04/26/facts-about-marijuana/">lived</a> in a jurisdiction that has legalized marijuana for adults over 21; sales of adult-use and medical marijuana products hit <a href="https://www.marijuanamoment.net/nearly-half-a-million-americans-work-in-the-marijuana-industry-new-leafly-report-finds/">$25 billion in 2021</a> and, by one <a href="https://www.businessinsider.com/us-cannabis-market-size-projection-100-billion-by-2030-2020-12">Wall Street estimate</a>, could reach $100 billion by 2030. And last month, President Joe Biden <a href="https://www.vox.com/policy-and-politics/2022/10/8/23393412/biden-marijuana-pardons-decriminalization">announced</a> that he&rsquo;s taking steps to overhaul America&rsquo;s federal cannabis laws, starting by pardoning everyone convicted of simple marijuana possession at the federal level.</p>

<p>Maryland was widely expected to approve legalization. Four states with legal marijuana on the November 8 ballot are traditionally conservative: Arkansas, Missouri, North Dakota, and South Dakota voters are all also considering measures legalizing cannabis, although only Missouri ultimately did so.</p>

<p>&ldquo;Four of the five states voting have two Republican senators and either completely or majority Republican congressional delegations in the house,&rdquo; says BOWL PAC founder Justin Strekal, a longtime cannabis lobbyist in Washington, DC, and the former political director for the National Organization for the Reform of Marijuana Laws (NORML), before Tuesday&rsquo;s results. &ldquo;Voters deciding on adult use could significantly change the calculus for their federal representatives as to how to approach cannabis at the national level.&rdquo;</p>

<p>Here&rsquo;s a quick overview of the measures and where they stand.</p>
<h2 class="wp-block-heading">Maryland: <a href="https://ballotpedia.org/Maryland_Question_4,_Marijuana_Legalization_Amendment_(2022)">Question 4</a> (Passed)</h2>
<p>Earlier this year, Maryland legislators voted to put a marijuana legalization referendum on the November ballot. <a href="https://reason.org/voters-guide/maryland-question-4-2022-marijuana-legalization-amendment/">Question 4</a> asked: &ldquo;Do you favor the legalization of the use of cannabis by an individual who is at least 21 years of age on or after July 1, 2023, in the State of Maryland?&rdquo;</p>

<p>The voters approved the measure, making recreational cannabis legal in Maryland, where medical marijuana has been legal since 2013, by amending the state constitution. The legislation made the purchase and possession of up to 1.5 ounces of cannabis legal for adults 21 and older, and removed criminal penalties for possession of up to 2.5 ounces. In addition, adults are allowed to grow up to two plants for personal use and gift cannabis legally.</p>

<p>Past convictions for conduct made legal under the proposed law will be expunged, and people currently serving time for cannabis offenses will be eligible for resentencing, while those with convictions for possession with intent to distribute will be <a href="https://mgaleg.maryland.gov/2022RS/bills/hb/hb0837t.pdf">able to petition</a> to have their records expunged three years after serving their time.&nbsp;</p>
<h2 class="wp-block-heading">Arkansas: <a href="https://ballotpedia.org/Arkansas_Issue_4,_Marijuana_Legalization_Initiative_(2022)">Issue 4</a> (Failed)</h2>
<p>Arkansas voters approved medical marijuana in 2016. Now they considered legalizing cannabis for adult use with Issue 4, which would<strong> </strong>have modified the state&rsquo;s existing medical program.&nbsp;</p>

<p>The <a href="https://www.responsiblegrowtharkansas.com/">Responsible Growth Arkansas</a> campaign turned in over 192,000 signatures in July to qualify for the November ballot. Following an attempt by the state Board of Elections to deny certification to the measure by declaring its wording insufficient, the campaign filed a lawsuit with the Arkansas Supreme Court in August. After weeks of uncertainty, the court <a href="https://opinions.arcourts.gov/ark/supremecourt/en/item/521335/index.do">ruled in favor</a> of Responsible Growth Arkansas on September 22, clearing the way for the vote.&nbsp;</p>

<p>A September <a href="https://talkbusiness.net/2022/09/poll-support-grows-for-recreational-marijuana-majority-favors-change-to-abortion-law/">survey</a> by Talk Business and Politics and Hendrix College found that 58.5 percent of Arkansas voters are in favor of the ballot measure, with 29 percent opposed and 13 percent undecided. However, an alliance of progressive cannabis advocates, religious leaders, and pro-Trump politicians &mdash; <a href="https://twitter.com/TomCottonAR/status/1584535832249085952?s=20&amp;t=aaLjGB_lkAsZowN9J6woDQ">including</a> Republican Arkansas Sen. Tom Cotton &mdash; was <a href="https://mjbizdaily.com/arkansas-marijuana-legalization-trump-south-equity-police/">staunchly opposed</a> to legalization. Pro-cannabis critics claim that the measure, which was <a href="http://www.arkansasethics.com/wp-content/uploads/2021/10/ResponsibleGrowth2022-10-17.pdf">largely funded</a> by the medical cannabis industry, would have allowed existing medical marijuana businesses to dominate the adult-use market, and reward industry backers of the measure by limiting new competitors.</p>

<p>The <a href="https://www.uaex.uada.edu/business-communities/voter-education/issue4.aspx">proposed law</a> would have allowed adults 21 and over to purchase and possess up to one ounce of cannabis from licensed retailers. It would have repealed residency requirements to qualify for the state&rsquo;s medical marijuana program. Home cultivation would not be permitted, and it would have abolished criminal background checks for people who own less than 5 percent of a cannabis business.</p>

<p>The amendment would have repealed taxes on medical marijuana while allowing the state to charge a 10 percent sales tax on non-medical sales at dispensaries. Thirty percent of tax revenues would have been divided between law enforcement, university research, and state drug court programs, with the remainder going to the state general fund.</p>
<h2 class="wp-block-heading">Missouri: <a href="https://ballotpedia.org/Missouri_Amendment_3,_Marijuana_Legalization_Initiative_(2022)">Amendment 3</a> (Passed)</h2>
<p>Missouri passed legislation decriminalizing cannabis for personal use in 2014, and voters approved a medical marijuana program four years later. Now full legalization was on the ballot in Missouri with Amendment 3 &mdash; but after little public resistance for months, the proposal faced <a href="https://missouriindependent.com/2022/10/27/opposition-to-missouri-marijuana-amendment-creating-strange-political-bedfellows/">criticism right before Election Day from several factions</a> as a coalition of officials and organizations banded together to urge voters to reject the initiative.</p>

<p>Ultimately, though, they failed, and voters approved the amendment.</p>

<p>The group <a href="https://www.legalmo22.com/">Legal Missouri 2022</a>, which is behind the proposed constitutional amendment, says it was written to provide a &ldquo;level playing field&rdquo; for the industry while promoting social equity, <a href="https://www.marijuanamoment.net/missouri-activists-form-campaign-to-oppose-marijuana-ballot-initiative-urge-governor-to-put-reform-on-special-session-agenda/">Marijuana Moment reported</a>. The initiative was endorsed by advocacy organizations including the ACLU of Missouri and all six chapters of Missouri NORML.</p>

<p>Opposition to the measure <a href="https://www.stltoday.com/news/local/marijuana/conservative-pac-falsely-claims-missouri-marijuana-measure-advances-critical-race-theory/article_c930cae3-63af-5ae4-bc70-289cb2f9fadc.html">included false claims</a> from a conservative PAC that it&rsquo;s an attempt to insert critical race theory into the constitution by creating a position of &ldquo;chief equity officer,&rdquo; and the Missouri Democratic Party <a href="https://missouriindependent.com/2022/10/27/opposition-to-missouri-marijuana-amendment-creating-strange-political-bedfellows/">alleging</a> that it &ldquo;may negatively impact minorities, people of color and low-income earning Missourians.&rdquo;</p>

<p>Amendment 3 makes it legal for adults 21 and older to purchase and possess up to three ounces of non-medical cannabis. It also allows registered home cultivation. Existing medical dispensaries will be licensed to serve adult consumers with a dual license.</p>

<p>Tax revenue from recreational cannabis sales will be used to expunge the records of people convicted of nonviolent cannabis offenses; it will also subsidize veterans&rsquo; health care, drug treatment, and state public defender programs.</p>

<p>Regulation will be overseen by the Department of Health and Senior Services, with microbusiness licenses issued through a lottery system. Priority for those licenses will be given to low-income applicants and people disproportionately harmed by the war on drugs.</p>
<h2 class="wp-block-heading">North Dakota: <a href="https://ballotpedia.org/North_Dakota_Statutory_Measure_2,_Marijuana_Legalization_Initiative_(2022)">Measure 2</a> (Failed)</h2>
<p>A marijuana legalization measure in North Dakota would have allowed adults 21 and older to purchase and possess up to one ounce of cannabis and four grams of cannabis concentrate, as well as cultivate up to three plants for personal use, as long as the product from those plants is stored in the same location. However, voters rejected the measure.</p>

<p>A coalition called <a href="https://www.newapproachnd.org/">New Approach ND</a> collected signatures for Measure 2, which would have required the state to create a regulatory program by October 1, 2023. The agency would also have overseen cannabis business licensing for a maximum of seven cultivation facilities and 18 retailers. The initiative stipulated that no individual or entity would be permitted to own more than one cultivation facility or four retail locations to mitigate the risk of large companies monopolizing the cannabis market.</p>

<p>Measure 2 would also have<strong> </strong>put child custody protections into place for parents who use cannabis in compliance with state law, meaning they would not lose parental rights due to cannabis consumption. It would not have provided a pathway to record expungements for marijuana convictions.</p>

<p>The state&rsquo;s 5 percent sales tax would apply to cannabis products; no additional tax would specifically be imposed. Manufacturers would pay a $110,000 registration fee <a href="https://vip.sos.nd.gov/pdfs/Measures%20Info/Petitions%20Being%20Circulated/Cannabis%20Official%20Petition.pdf">every two years</a>, while retailers would pay $90,000; those funds would support the implementation and administration of the adult-use program.</p>
<h2 class="wp-block-heading">South Dakota: <a href="https://ballotpedia.org/South_Dakota_Initiated_Measure_27,_Marijuana_Legalization_Initiative_(2022)">Measure 27</a> (Failed)</h2>
<p>South Dakota voters <a href="https://www.kfyrtv.com/2022/10/24/north-dakota-south-dakota-ar-md-mo-all-have-marijuana-ballot-2022/#:~:text=%E2%80%94%20South%20Dakota%20voters%20passed%20a,for%20those%2021%20and%20over.">approved cannabis legalization for adult use in 2020</a>; however, the state Supreme Court invalidated the initiative. This year, voters had another opportunity to weigh in on legalization, but public opinion had shifted on the issue, with a majority of respondents now opposed to cannabis reform.</p>

<p>In 2020, 54 percent of South Dakotan voters <a href="https://listen.sdpb.org/politics/2022-10-28/south-dakota-focus-initiated-measure-27">approved legalizing cannabis</a>. However, following a legal challenge led by Republican Gov. Kristi Noem, the state Supreme Court invalidated the vote on procedural grounds, upholding a ruling that found the ballot measure violated the state&rsquo;s single-subject rule for constitutional amendments, meaning it was not narrowly focused enough to meet the electoral standard.</p>

<p>This time, the initiative has omitted provisions around taxes and regulations; those decisions would be up to the legislature. The advocacy group <a href="https://measure27.com/">South Dakotans for Better Marijuana Laws</a> turned in more than 20,000 signatures to qualify Measure 27 for the November ballot.&nbsp;</p>

<p>If approved by voters, Measure 27 would have allowed adults 21 and older to purchase and possess up to an ounce of cannabis, as well as grow up to three plants for personal use. It didn&rsquo;t touch on regulatory policies concerning taxing cannabis sales, licensing, or social equity.</p>

<p>The measure included civil penalties for violating provisions related to public consumption or growing more plants than permitted. Employers would have<strong> </strong>been allowed to prohibit cannabis use by workers, and state and local governments could continue to ban marijuana-related activities made legal under the initiative.</p>

<p><em><strong>Update, November 9, 9:40 am: </strong>This story was originally published on November 7 and has been updated with results of the votes in each state.</em></p>
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			<author>
				<name>Mary Jane Gibson</name>
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			<title type="html"><![CDATA[The most important part of Biden’s surprise marijuana announcement]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/policy-and-politics/2022/10/8/23393412/biden-marijuana-pardons-decriminalization" />
			<id>https://www.vox.com/policy-and-politics/2022/10/8/23393412/biden-marijuana-pardons-decriminalization</id>
			<updated>2022-11-03T17:11:06-04:00</updated>
			<published>2022-10-08T07:00:00-04:00</published>
			<category scheme="https://www.vox.com" term="Explainers" /><category scheme="https://www.vox.com" term="Marijuana Legalization" /><category scheme="https://www.vox.com" term="Policy" /><category scheme="https://www.vox.com" term="Politics" />
							<summary type="html"><![CDATA[In a surprise move just a month before the midterm elections, President Joe Biden announced Thursday that he&#8217;s taking considerable steps to overhaul America&#8217;s federal marijuana laws &#8212; including pardoning everyone convicted of simple marijuana possession at the federal level.&#160; The development was a surprise; although Biden campaigned on decriminalization and expunging cannabis convictions, the [&#8230;]]]></summary>
			
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<p>In a surprise move just a month before the midterm elections, President Joe Biden announced Thursday that he&rsquo;s taking considerable steps to overhaul America&rsquo;s federal marijuana laws &mdash; including pardoning everyone convicted of simple marijuana possession at the federal level.&nbsp;</p>

<p>The development was a surprise; although Biden campaigned on decriminalization and expunging cannabis convictions, the administration has largely remained quiet on marijuana reform.&nbsp;</p>

<p>&ldquo;As I&rsquo;ve said before, no one should be in jail just for using or possessing marijuana,&rdquo; Biden <a href="https://twitter.com/POTUS/status/1578097875480895489">tweeted</a>. &ldquo;Today, I&rsquo;m taking steps to end our failed approach. Allow me to lay them out.&rdquo;</p>

<p>Biden&rsquo;s first step was to pardon all prior federal offenses of simple marijuana possession. His reasoning was a nod to the many justice and equity discussions happening around cannabis arrests nationally: &ldquo;Sending people to jail for possessing marijuana has upended too many lives &mdash; for conduct that is legal in many states. That&rsquo;s before you address the clear racial disparities around prosecution and conviction. Today, we begin to right these wrongs,&rdquo; Biden <a href="https://twitter.com/POTUS/status/1578097883395592207?s=20&amp;t=lP2y7bSmPRD_vLcdCHkuEQ">tweeted</a>.</p>

<p>Second, he called for governors to do the same at the state level. His third step is to initiate an administrative review of federal marijuana scheduling &mdash; the federal classification system that underlies the criminalization of marijuana as a controlled substance at the federal level. &ldquo;We classify marijuana at the same level as heroin &mdash; and more serious than fentanyl. It makes no sense,&rdquo; Biden wrote.</p>

<p>After Biden&rsquo;s announcement, other agencies quickly followed suit with next steps. The Justice Department issued a <a href="https://www.justice.gov/opa/pr/justice-department-statement-president-s-announcements-regarding-simple-possession-marijuana">statement</a> that it &ldquo;will expeditiously administer the President&rsquo;s proclamation&rdquo; on pardons, and work with the Department of Health and Human Services to launch a scientific review of how marijuana is scheduled under federal law.</p>

<p>But was this announcement a massive leap forward in federal cannabis policy? Or is it more style than substance, an attempt to drum up support for Democrats ahead of the midterms? Here&rsquo;s a quick overview of Biden&rsquo;s action, federal cannabis policy, and the administration&rsquo;s ever-evolving stance on marijuana legalization.</p>
<h2 class="wp-block-heading">So just how many people did Biden pardon?</h2>
<p>Biden signed an executive order to pardon citizens and lawful permanent residents convicted of simple marijuana possession under federal law and DC statute.&nbsp;</p>

<p>Simple possession occurs when a person has a small amount of a substance on their person or available for their own use. The New York Times <a href="https://www.nytimes.com/2022/10/06/us/politics/biden-marijuana-pardon.html">reported</a> that the pardons will affect about 6,500 people convicted of simple marijuana possession between 1992 and 2021 under federal law, as well as thousands more under DC code, White House officials said on a <a href="https://www.whitehouse.gov/briefing-room/press-briefings/2022/10/06/background-press-call-on-marijuana-reform/">call</a> with reporters.&nbsp;</p>

<p>That&rsquo;s a comparatively small number; most convictions for simple possession occur under state and local laws. According to the <a href="https://www.aclu.org/gallery/marijuana-arrests-numbers">ACLU</a>, there were 8.2 million marijuana arrests between 2001 and 2010, 88 percent of them for simply having marijuana. The federal government often charges marijuana cases as conspiracies, meaning there was an agreement between two or more people to violate a federal drug law, rather than simple possession: The New York Times <a href="https://www.nytimes.com/2022/10/06/us/politics/biden-marijuana-pardon.html">reported</a> that, according to the US Sentencing Commission, only 92 people were sentenced on federal marijuana possession charges in 2017, out of nearly 20,000 drug convictions.</p>

<p>Biden&rsquo;s presidential authority is limited to issuing pardons for federal convictions; he can&rsquo;t overturn a record for a marijuana offense at the state or local level. However, BOWL PAC founder Justin Strekal, a longtime cannabis lobbyist in Washington, DC, and the former political director for the National Organization for the Reform of Marijuana Laws, says it&rsquo;s a step in the right direction, no matter how small: &ldquo;Could Biden have gone further?&rdquo; he told Vox. &ldquo;Yes. But now citizens around the country can leverage that example to build pressure on state and local officials to follow in his footsteps, as some governors already have.&rdquo;</p>

<p>Biden urged governors to do as he did and review marijuana possession convictions at a state and local level as well. Some governors were far ahead of him: California&rsquo;s Gavin Newsom and Colorado&rsquo;s <a href="https://www.cpr.org/2020/10/01/gov-polis-issues-new-narrow-pardons-for-2732-marijuana-related-convictions/">Jared Polis</a> have already issued pardons for low-level cannabis convictions in their states, and Illinois Gov. J.B. Pritzker <a href="https://chicago.suntimes.com/cannabis/2020/12/31/22208659/cannabis-marijuana-illinois-expunge-pardon-pritzker-legal-pot">expunged</a> nearly half a million marijuana arrest records and pardoned thousands more at the end of 2020.</p>
<h2 class="wp-block-heading">Wasn’t there a bill to legalize cannabis? Does this mean weed is legal now?</h2>
<p>Hold on to your lighters &mdash; you won&rsquo;t necessarily be able to spark up in the streets just yet, though cannabis is legal in some form in 37 states.</p>

<p>Meanwhile, federal marijuana legalization has <a href="https://www.vox.com/22968976/federal-marijuana-legalization-cannabis-policy-decriminalization%20Congress?">essentially been stopped in its tracks</a>, in part because of the complexities of adopting banking, regulation, and criminal justice reform to accompany legal weed, even though <a href="https://fivethirtyeight.com/features/why-do-gop-lawmakers-still-oppose-legalizing-weed/">public opinion</a> (even among Republican voters) and state policies are on board with legalization.</p>

<p>However, under the federal Controlled Substances Act, marijuana is <a href="https://www.vox.com/2014/9/25/6842187/drug-schedule-list-marijuana">classified</a> as a Schedule 1 illegal drug with no medical uses, on par with heroin and LSD, and above fentanyl, which is Schedule 2. Rescheduling marijuana for research was <a href="https://www.politifact.com/truth-o-meter/promises/biden-promise-tracker/promise/1529/decriminalize-marijuana/">an oft-repeated promise</a> of Biden&rsquo;s presidential campaign.&nbsp;</p>

<p>Biden&rsquo;s call for a review of marijuana&rsquo;s scheduling could dramatically reshape federal policy and ultimately clear the way for legalization &mdash; but only if it is removed from the law entirely, not just rescheduled as a Schedule 2 drug. This would be the piece that would allow all the dominoes to fall into place for nationwide legalization with sales to adults over 21 without a prescription, allowing banks to do business with the cannabis industry, and more.</p>

<p>In the meantime, there are several pieces of federal legislation attempting to address the myriad issues around cannabis. They include:</p>
<ul class="wp-block-list"><li>The Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which also would deschedule cannabis from the Controlled Substances Act and enact criminal and social justice reforms, including the expungement of prior cannabis convictions. It was approved by the House in December 2020, marking the first time Congress moved to end federal marijuana prohibition. It passed again on April 1, but has failed to advance in the Senate.</li><li>The Secure and Fair Enforcement (SAFE) Banking Act, which has been passed by the House six times since it was first introduced in 2013. If the SAFE Banking Act were signed into law, federal regulators would be prohibited from handing down penalties to banks serving licensed marijuana businesses; those businesses would then be able to access financial services like checking accounts and accept payment with credit or debit cards.</li><li>The States Reform Act, framed by Republican lawmakers as an alternative to Democratic-led reform proposals. It would end federal prohibition and regulate cannabis under various agencies, including the Agriculture Department and the Food and Drug Administration, for growers, consumers, and medical marijuana patients, while allowing states to determine their own policies on commerce and other aspects of legalization. It attempts to bridge the partisan divide by including expungements for those with nonviolent cannabis convictions.</li><li>The Cannabis Administration and Opportunity Act, a sweeping bill that aims to delist marijuana from the Controlled Substances Act while recognizing existing state laws; it would enact banking reform, criminal justice reform, and automatic expungement of federal records for nonviolent marijuana crimes.</li></ul>
<p>Whether Biden&rsquo;s announcement will goose cannabis reform in Congress remains to be seen, but Thursday&rsquo;s action was undoubtedly a massive boost to the quest to <a href="https://drugpolicy.org/issues/marijuana-legalization-and-regulation">end federal prohibition</a>.</p>
<h2 class="wp-block-heading">Didn’t Biden fire people for smoking weed? </h2>
<p>Dozens of young White House staffers got a nasty surprise in 2021 when they were <a href="https://www.thedailybeast.com/biden-white-house-sandbags-staffers-sidelines-dozens-for-pot-use">dismissed</a> after background checks due to admitted marijuana use; the Biden administration initially had indicated that recreational use of cannabis would not be disqualifying. Employee conduct guidelines were also updated to <a href="https://www.politico.com/news/2022/03/02/white-house-applicants-weed-companies-00013390">potentially deny security clearance</a> to people who invested in cannabis companies. &ldquo;Wait, so do I get my job at the WH back?&rdquo; one former staffer <a href="https://twitter.com/anyalehr/status/1578137623943876610?s=20&amp;t=lP2y7bSmPRD_vLcdCHkuEQ">asked on Twitter</a> on Thursday. That remains to be seen.</p>
<h2 class="wp-block-heading">I thought President Biden was “tough on crime,” and specifically, anti-weed. So how did he come to support cannabis reform?</h2>
<p>Over his nearly four decades as a senator from Delaware, Biden was a prominent Democratic leader in <a href="https://www.vox.com/policy-and-politics/2019/4/25/18282870/joe-biden-criminal-justice-war-on-drugs-mass-incarceration">spearheading America&rsquo;s war on drugs</a>. He has long defended his record of being &ldquo;tough on crime&rdquo; &mdash; including advocating for large increases in federal funding for the drug war and enacting federal policies that disproportionately criminalized low-level drug offenses.</p>

<p>Under the Reagan administration, he worked to create the Office of National Drug Control Policy and in a now-infamous 1989 television interview at the height of the &ldquo;Just Say No&rdquo; era, then-Sen. Biden criticized a plan from President George H.W. Bush to escalate the war on drugs as not going far enough. &ldquo;Quite frankly, the president&rsquo;s plan is not tough enough, bold enough, or imaginative enough to meet the crisis at hand,&rdquo; he <a href="https://www.c-span.org/video/?8997-1/democratic-response-drug-policy-address">said</a>, calling not just for harsher punishments for drug dealers but to &ldquo;hold every drug user accountable.&rdquo;&nbsp;</p>

<p>Other examples of punitive legislation that Biden helped to enact include the <a href="https://www.congress.gov/bill/98th-congress/senate-bill/1762">Comprehensive Crime Control Act</a>, which expanded federal drug trafficking penalties and <a href="https://www.vox.com/policy-and-politics/2017/12/1/16686014/phillip-parhamovich-civil-forfeiture">civil asset forfeiture</a>, allowing police to seize someone&rsquo;s property without proving the person is guilty of a crime. He sponsored and co-authored the <a href="https://www.congress.gov/bill/99th-congress/senate-bill/2878">Anti-Drug Abuse Act of 1986</a>, which ratcheted up penalties for drug crimes and created a massive sentencing disparity between crack and powder cocaine, <a href="http://www.vox.com/2015/8/5/9097307/mandatory-minimums-fair-sentencing-act">fueling</a> significant racial disparities in incarceration. And 1994&rsquo;s <a href="https://www.congress.gov/bill/103rd-congress/house-bill/3355">Violent Crime Control and Law Enforcement Act</a>, partly written by Biden, imposed harsher sentences and increased prison funding, contributing to the <a href="http://www.vox.com/2015/7/13/8913297/mass-incarceration-maps-charts">growth of the US prison population</a> from the 1990s through the 2000s.</p>

<p>But in later years, Biden softened his stance on drugs; in 2007, he backed the <a href="http://csgjusticecenter.org/nrrc/projects/second-chance-act/">Second Chance Act</a>, which provides monitoring and counseling services to former prison inmates. In his last few years in the Senate, he supported eliminating the sentencing disparity between crack and powder cocaine.&nbsp;</p>

<p>In 2020, the number of Americans who supported legalizing cannabis reached a record high, according to Gallup, with <a href="https://news.gallup.com/poll/356939/support-legal-marijuana-holds-record-high.aspx">68 percent supporting marijuana legalization</a>. When Biden launched his presidential campaign, his platform reflected the nation&rsquo;s changing attitude toward cannabis, with support for marijuana decriminalization, rescheduling, and expungements for low-level cannabis convictions.</p>

<p>However, even as he campaigned on marijuana reform, Biden contemplated the possible negative effects of cannabis legalization. &ldquo;The truth of the matter is, there&rsquo;s not nearly been enough evidence that has been acquired as to whether or not it is a gateway drug,&rdquo; Biden said at a town hall in November 2019.</p>

<p>&ldquo;Biden has evolved a tremendous amount to get to the point where he would take this significant an action,&rdquo; Strekal says. &ldquo;And I think this move helps find a pathway to 60 or more votes in the US Senate to agree on a cannabis legalization package.&rdquo;&nbsp;&nbsp;</p>

<p>Genine Coleman, a longtime cannabis policy activist who serves as executive director of the advocacy group Origins Council, points to a <a href="https://www.unodc.org/unodc/en/commissions/CND/Mandate_Functions/current-scheduling-recommendations.html">change in an international treaty</a> known as the Single Convention on Narcotic Drugs of 1961 as the reason behind Biden&rsquo;s evolving&nbsp; stance on marijuana.</p>

<p>In December 2020, the United Nations Commission on Narcotic Drugs voted to change the scope of control of cannabis and cannabis-related substances following recommendations by the World Health Organization in 2019. &ldquo;WHO came out with findings that cannabis does indeed have medical use and value,&rdquo; Coleman says, &ldquo;so they recommended that the UN Commission consider rescheduling the 1961 convention.&rdquo;</p>

<p>That prompted a process for signatories on the treaty, including the United States, to review the scheduling of cannabis. &ldquo;So it&rsquo;s not totally coming out of nowhere,&rdquo; Coleman says. &ldquo;It&rsquo;s actually something that got prompted about two years ago.&rdquo;</p>
<h2 class="wp-block-heading">So is this a ploy to get voter support for the midterm elections? Or is it a real shift in policy direction?</h2>
<p>Nishant Reddy, CEO and co-founder of A Golden State and Satya Capital, has served as an advisor to Sen. Cory Booker (D-NJ) on cannabis policy. Reddy was pleasantly &mdash; but not entirely &mdash; surprised by Biden&rsquo;s announcement.&nbsp;</p>

<p>&ldquo;We&rsquo;re just a few weeks away from midterm elections, so I do think there&rsquo;s a little bit of strategic political play with this,&rdquo; Reddy says. &ldquo;That being said, it&rsquo;s an exciting step in the right direction for those who are facing the negative consequences of unfair policing regarding cannabis.&rdquo;&nbsp;</p>

<p>Attorney David Holland, a partner with Prince Lobel Tye LLP and the executive director of Empire State NORML, sees it as Biden moving toward cementing his progressive legacy, rather than attempting to gain voter support.</p>

<p>&ldquo;Biden doesn&rsquo;t stand to gain anything by it, per se. This is only the midterm; he&rsquo;s got another couple years to go,&rdquo; Holland said. &ldquo;I think he&rsquo;s trying to align himself with progressive politics that undo at least some of the harms of the drug war, and to set up a platform for two years from now that shows him to be a leader in causes relating to equity, justice, economic development, and so on.&rdquo;</p>

<p>News of the pardons is dominating media coverage, but Holland says the most meaningful part of Biden&rsquo;s announcement is the review and possible change in the federal status of cannabis as a controlled substance. &ldquo;He&rsquo;s setting the stage for future action,&rdquo; says Holland. &ldquo;There is definitely a paradigm shift coming over the next two years going into the 2024 election.&rdquo;</p>
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			<entry>
			
			<author>
				<name>Mary Jane Gibson</name>
			</author>
			
			<title type="html"><![CDATA[Federal marijuana legalization is stopped in its tracks]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/22968976/federal-marijuana-legalization-cannabis-policy-decriminalization" />
			<id>https://www.vox.com/22968976/federal-marijuana-legalization-cannabis-policy-decriminalization</id>
			<updated>2022-04-04T11:15:25-04:00</updated>
			<published>2022-03-31T12:00:00-04:00</published>
			<category scheme="https://www.vox.com" term="Features" /><category scheme="https://www.vox.com" term="Marijuana Legalization" /><category scheme="https://www.vox.com" term="Policy" /><category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="The Highlight" />
							<summary type="html"><![CDATA[Part of the&#160;Drugs Issue&#160;of&#160;The Highlight, our home for ambitious stories that explain our world. It has been nearly a decade since the first time a majority of Americans supported legalizing cannabis. Two years ago, that number reached a record high, according to Gallup, with 68 percent supporting marijuana legalization &#8212; a number that has held [&#8230;]]]></summary>
			
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<p><em>Part of the&nbsp;</em><a href="https://www.vox.com/features/22989349/drugs-issue"><em><strong>Drugs Issue</strong></em></a><em><strong>&nbsp;</strong>of&nbsp;</em><a href="https://www.vox.com/the-highlight"><em><strong>The Highlight</strong></em></a><em>, our home for ambitious stories that explain our world.</em></p>

<p>It has been nearly a decade since the first time a majority of Americans supported legalizing cannabis. Two years ago, that number reached a record high, according to Gallup, with 68 percent supporting marijuana legalization &mdash; a number that has <a href="https://news.gallup.com/poll/356939/support-legal-marijuana-holds-record-high.aspx">held steady</a> since. That same year, as the coronavirus pandemic engulfed the country in March 2020, medical marijuana businesses were declared essential, allowing them to remain open along with pharmacies and grocery stores. It was a triumph for legalization advocates. As the New York Times <a href="https://www.nytimes.com/article/coronavirus-weed-marijuana.html">reported</a>, it was &ldquo;official recognition that for some Americans, cannabis is as necessary as milk and bread.&rdquo;&nbsp;</p>

<p>Cannabis is one of the fastest-growing industries in the US; sales of adult-use and medical marijuana products hit <a href="https://www.marijuanamoment.net/nearly-half-a-million-americans-work-in-the-marijuana-industry-new-leafly-report-finds/">$25 billion in 2021</a> and, by one <a href="https://www.businessinsider.com/us-cannabis-market-size-projection-100-billion-by-2030-2020-12">Wall Street estimate</a>, could reach $100 billion by 2030. Eighteen states have legalized cannabis for adult use, and another 19 currently have at least a comprehensive medical marijuana program. As of 2020, one in three Americans lived in a state with access to legal marijuana, <a href="https://www.politico.com/news/2020/11/04/1-in-3-americans-lives-where-recreational-marijuana-legal-434004">according to</a> Politico, and that number is quickly growing as the East Coast catches up with the West &mdash; last year, Connecticut, New Jersey, New York, and Virginia all passed adult-use cannabis laws, joining Maine, Massachusetts, and Vermont. Rhode Island lawmakers are <a href="https://www.marijuanamoment.net/rhode-island-lawmakers-unveil-marijuana-legalization-bill-after-months-of-negotiations/">expected to approve</a> a legalization bill this month.&nbsp;</p>

<p>However, under the federal Controlled Substances Act, marijuana remains <a href="https://www.vox.com/2014/9/25/6842187/drug-schedule-list-marijuana">classified</a> as a Schedule 1 illegal drug with no medical uses, on par with heroin and LSD. The Drug Enforcement Agency <a href="https://mjbizdaily.com/dea-preparing-to-ok-companies-to-grow-cannabis-for-scientific-research/">strictly limits</a> marijuana cultivation for research, frustrating scientists who are unable to investigate its medical benefits and risks under current regulations.</p>

<p>Rescheduling marijuana for research was <a href="https://www.politifact.com/truth-o-meter/promises/biden-promise-tracker/promise/1529/decriminalize-marijuana/">an oft-repeated promise</a> of President Joe Biden&rsquo;s campaign, along with a pledge to decriminalize the use of cannabis and grant clemency to people with federal marijuana convictions.</p>

<p>But after more than one year in office, Biden&rsquo;s promises <a href="https://www.politico.com/news/2021/07/14/biden-marijuana-legalization-499642">remain unfulfilled</a> &mdash; and a January <a href="https://today.yougov.com/topics/politics/articles-reports/2022/01/19/trust-at-home-covid-19-rapid-tests-poll">YouGov poll</a> of 1,500 people showed that more than half of Americans believe that the Biden administration has made little to no progress advancing marijuana reform. The administration even <a href="https://www.thedailybeast.com/biden-white-house-sandbags-staffers-sidelines-dozens-for-pot-use">screened</a> staffers for marijuana use last year, dismissing several incoming candidates because they revealed they&rsquo;d used cannabis during background checks for positions in the Biden White House. Just this month, employee conduct guidelines were updated to <a href="https://www.politico.com/news/2022/03/02/white-house-applicants-weed-companies-00013390">potentially deny security clearance</a> to people who have invested in cannabis companies. All in all, the Biden administration seems to be pretty anti-weed.</p>

<p>Critics of legal marijuana cite the potential for <a href="https://www.ojp.gov/pdffiles1/nij/grants/255060.pdf">confusion</a> among law enforcement agencies keeping up with evolving regulations, <a href="https://www.fatherly.com/health-science/the-truth-about-legalized-marijuanas-impact-on-teens-and-kids/">concern</a> about minors gaining access to the drug, a <a href="https://www.sciencedirect.com/science/article/abs/pii/S0166046221000156?via%3Dihub">potential drop</a> in property values, and more for maintaining marijuana&rsquo;s status as an illicit drug. (Though it looks like legal cannabis can actually <a href="https://www.marijuanamoment.net/marijuana-legalization-increases-home-property-values-new-study-finds/">increase</a> property values.)</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>All in all, the Biden administration seems to be pretty anti-weed</p></blockquote></figure>
<p>Legal cannabis, however, also presents a tremendous financial opportunity, and despite federal inaction, the industry is growing fast; a <a href="https://www.leafly.com/news/industry/cannabis-jobs-report">report</a> from the cannabis website Leafly shows there are more than 428,000 full-time jobs in the cannabis industry, with a 33 percent increase in jobs just last year. Even so, the fallout from the lack of federal legalization is felt by many sectors of society: Medical research is stalled, prisoners are languishing in jails, small businesses are going under <a href="https://www.cnbc.com/2020/04/20/cannabis-companies-pay-federal-taxes-but-are-shut-out-of-small-business-loans.html">without access to federal banking</a>, and <a href="https://www.politico.com/news/2022/02/05/risky-financial-deal-weed-company-ianthus-00004862">big cannabis companies</a> face stiff challenges in raising money to stay afloat as long as marijuana is illegal under federal law.&nbsp;</p>

<p>However, as more states move to decriminalize and legalize cannabis, and as the economic benefits of a legal marijuana industry become apparent, it seems likely that we&rsquo;ve passed the point of no return on the road to federal legalization. So why hasn&rsquo;t the federal government been able to unify to enact cannabis legalization nationwide?<em>&nbsp;</em></p>
<hr class="wp-block-separator" />
<p class="has-drop-cap"><strong>Historically, Democrats have championed legalization</strong> as a social justice issue; Gallup poll numbers indicate that <a href="https://news.gallup.com/poll/356939/support-legal-marijuana-holds-record-high.aspx">half of Republican voters</a> now also support legal marijuana. Support among younger Republicans is especially high, says Morgan Fox, political director of the National Organization for the Reform of Marijuana Laws (<a href="https://norml.org/">NORML</a>): &ldquo;It&rsquo;s difficult to find any issue right now that enjoys as much public support as ending prohibition for cannabis.&rdquo; It seems increasingly likely that a bipartisan effort to legalize cannabis at a federal level will pass in the next few years.&nbsp;</p>

<p>It&rsquo;s still wholly unclear, however, what that policy will even look like. In fact, it&rsquo;s more likely several pieces of legislation will be necessary to address the labyrinthine issues around marijuana legalization.&nbsp;</p>

<p>To that end, several pieces of legislation are being pushed forward. This February, <a href="https://strickland.house.gov/sites/evo-subsites/strickland.house.gov/files/evo-media-document/Strickland%20-%20Letter%20-%20Swift%20Consideration%20of%20MORE%20Act%20-%201.31.22%20v2.pdf">a bipartisan coalition of House lawmakers</a> including Rep. Ted Lieu (D-CA) and Rep. Matt Gaetz (R-FL) demanded that the Marijuana Opportunity Reinvestment and Expungement (MORE) Act be &ldquo;expeditiously considered by the House and Senate.&rdquo; The MORE Act would deschedule cannabis from the Controlled Substances Act and enact criminal and social justice reforms, including the expungement of prior cannabis convictions. It was approved by the House in a momentous vote in December 2020 that marked the first time in history Congress has moved to end federal marijuana prohibition. However, the bill failed to advance in the Senate.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>It’s likely several pieces of legislation will be necessary to address the labyrinthine issues around marijuana legalization</p></blockquote></figure>
<p>Another <a href="https://www.forbes.com/sites/lewiskoski/2021/12/03/the-safe-banking-act-what-is-it-and-where-does-it-stand/">piece of legislation</a> aims to change federal regulations for cannabis-related businesses: The Safe and Fair Enforcement (SAFE) Banking Act, which has been passed by the House six times since it was first introduced in 2013. If the SAFE Banking Act were signed into law, federal regulators would be prohibited from handing down penalties to banks serving licensed marijuana businesses; those businesses would then be able to access financial services like checking accounts and accept payment with credit or debit cards.</p>

<p>Under current laws, fearing federal prosecution, most large financial institutions, <a href="https://www.marketwatch.com/story/visa-cracks-down-on-cashless-atms-at-cannabis-dispensaries-11643049918#:~:text=Visa%20Inc.%20has%20issued%20a,buy%20pot%20instead%20of%20cash.">including Visa</a> and Mastercard, refuse to work with marijuana businesses. A lack of access to traditional banking services makes cannabis stores especially vulnerable to theft, fraud, and violent crime since they&rsquo;re largely forced to operate as cash-only businesses. During <a href="https://www.leafly.com/news/politics/43-west-coast-cannabis-dispensaries-report-looting-in-weekend-rioting">one wave of looting</a> in 2020, 43 cannabis dispensaries on the West Coast were targeted and robbed. Federal reform would prevent regulators from penalizing banks who do business with the industry and allow marijuana businesses to operate with safer, more trustworthy financial practices rather than relying entirely on cash.&nbsp;</p>

<p>The SAFE Banking Act, which has had bipartisan support since its inception, was most recently attached to a manufacturing and innovation bill called the America COMPETES Act in February, and passed the House with a vote of 222-210. Senate Minority Leader Mitch McConnell <a href="https://www.marijuanamoment.net/mcconnell-blasts-marijuana-banking-in-house-passed-china-bill-calling-it-a-poison-pill/">condemned</a> Democrats for including the provision, calling it a &ldquo;poison pill.&rdquo; The SAFE Banking Act has also failed to come to a vote in the Senate.&nbsp;</p>

<p>There&rsquo;s some tension between supporters of the MORE Act, who want criminal justice reform first and foremost, and those backing the reforms in the SAFE Banking Act, which opens a clear pathway for more capitalistic endeavors. After the SAFE Banking Act was approved by the House for the fifth time last December, the Drug Policy Alliance <a href="https://twitter.com/DrugPolicyOrg/status/1466923096770813953">tweeted</a>: &ldquo;We agree marijuana businesses, like any other businesses, need access to banking services &mdash; and in fact, the MORE Act would fully fix the banking issue. The MORE Act also deschedule[s] marijuana to end federal criminalization and repair the harms of prohibition, SAFE Act does not.&rdquo;</p>

<p>Yet another bill is now also making the rounds: The <a href="https://www.congress.gov/bill/117th-congress/house-bill/5977">States Reform Act</a> was <a href="https://www.marijuanamoment.net/republican-lawmakers-file-bill-to-tax-and-regulate-marijuana-as-alternative-to-democratic-proposals/">introduced</a> by Republican lawmakers last year. Sponsored by Rep. Nancy Mace (R-SC), the legislation was framed as an alternative to Democratic-led reform proposals and would end federal prohibition and regulate cannabis under various agencies, including the Department of Agriculture and the Food and Drug Administration, for growers, consumers, and medical marijuana patients, while notably allowing states to determine their own policies on commerce and other aspects of legalization. It attempts to bridge the partisan divide by including expungements for those with nonviolent cannabis convictions, and a <a href="https://taxfoundation.org/republican-cannabis-bill-states-reform-act/">3 percent federal excise tax</a> to fund law enforcement, small businesses, and veterans&rsquo; mental health initiatives. It has not yet been voted on by Congress.</p>

<p>Finally, legalization advocates are hopeful that yet another bill, the <a href="https://www.democrats.senate.gov/imo/media/doc/CAOA%20Detailed%20Summary%20-.pdf">Cannabis Administration and Opportunity Act</a>, which could be introduced as soon as April, will provide federal lawmakers the opportunity to debate cannabis policy in the Senate. The sweeping bill, co-sponsored by Sens. Cory Booker (D-NJ), Ron Wyden (D-OR), and Senate Majority Leader Chuck Schumer, aims to delist marijuana from the Controlled Substances Act while recognizing existing state laws; it would enact banking reform, criminal justice reform, and automatic expungement of federal records for nonviolent marijuana crimes. Under this bill, federal tax revenue would support restorative justice and public health and safety research, with a portion allocated for reinvestment into the communities most affected by the war on drugs.</p>
<hr class="wp-block-separator" />
<p class="has-drop-cap"><strong>Since 1996, when California passed</strong> the nation&rsquo;s first medical marijuana law, a number of factors have driven states to pass some form of legalization, including the rising costs associated with arresting and incarcerating nonviolent drug offenders, growing scientific evidence of the therapeutic benefits of the plant, the shift in the public attitude toward cannabis use, and, of course, marijuana as a source of tax revenue.</p>

<p>The policy gap between state and federal law is now so vast that it has created a patchwork of marijuana markets that could be incredibly difficult to unify under one federal law. Policies vary from state to state, with differing factors including personal cultivation, regulation of producers and suppliers, the types of retail products allowed, prices, and taxes. For example, in Colorado, adults are allowed to possess up to two ounces of cannabis at a time; in California, the limit is one ounce. New York allows growing up to six plants per person at home, while New Jersey only allows licensed cultivators to grow. Each state has its own agency that oversees the enforcement of cannabis regulations and laws. Businesses are unable to trade marijuana legally with one another across state borders, because interstate commerce falls under federal jurisdiction.&nbsp;&nbsp;</p>

<p>Those states with existing marijuana laws may not have to reconcile their laws with federal policy anytime soon. If cannabis were removed from the Controlled Substances Act by the federal government, that wouldn&rsquo;t mean it would instantly be legal in Nebraska, for example, where &#8203;&#8203;the sale of marijuana is a felony under state law. &ldquo;Federal regulation would not disrupt existing systems, and it wouldn&rsquo;t force states to legalize,&rdquo; says Fox.&nbsp;</p>

<p>It&rsquo;s for this reason, and others,&nbsp;that some believe federal legalization could make things worse, according to Shaleen Title, chief executive of the cannabis policy think tank <a href="https://www.parabolacenter.com/">Parabola Center</a> and a prominent voice in legalization policy.&nbsp;</p>

<p>&ldquo;If local policies are confusing and chaotic and inequitable, passing a state legalization law doesn&rsquo;t automatically fix the problem,&rdquo; Title says. &ldquo;We&rsquo;ve seen this in California, Massachusetts, and other states. In the same way, if you add another layer of chaos by putting the federal government in charge when its only expertise has been in arresting and prosecuting marijuana users &mdash; not regulation &mdash; we could end up with worse problems than we have now.&rdquo;</p>

<p>Title says that federal regulation could also give the green light for <a href="https://www.bostonglobe.com/2021/04/08/opinion/big-tobacco-is-coming-legal-marijuana/">massive corporations, even Big Tobacco</a>, to move into the space. &ldquo;I&rsquo;m talking about companies that would never dream of risking their interstate business by getting into something that&rsquo;s federally illegal, but they&rsquo;re waiting in the wings,&rdquo; Title says. &ldquo;A combination of interstate commerce and enormous new entrants to the industry could put small operations out of business forever, and kill marijuana culture as we know it.&rdquo;&nbsp;&nbsp;</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>“By putting the federal government in charge when its only expertise has been in arresting and prosecuting marijuana users — not regulation — we could end up with worse problems”</p></blockquote></figure>
<p>Last year, Amazon <a href="https://www.aboutamazon.com/news/policy-news-views/amazon-is-supporting-the-effort-to-reform-the-nations-cannabis-policy">announced its support</a> for legislation to federally legalize marijuana and an end to drug testing of its employees for cannabis. The updated policy was widely celebrated by reform advocates &mdash; but also <a href="https://www.forbes.com/sites/chrisroberts/2021/06/10/amazon-likes-marijuana-legalization-will-amazon-prime-deliver-cannabis-probably-not/?sh=61bb2df22fa6">raised questions</a> about whether the company was staking a claim to dominate the industry as soon as cannabis is legal under federal law. (The company sells beer and wine through its grocery delivery services, but notably does not currently sell other regulated products like tobacco.)</p>

<p>A <a href="https://drugpolicy.org/press-release/2021/04/federal-cannabis-regulations-working-group-releases-its-principles-federal">report</a> issued last year by the nonprofit group Drug Policy Alliance outlines protective measures that would allow existing state programs a grace period to transition to federal regulations while limiting large corporations (like Amazon) from capitalizing on a newly legal industry. If a corporation is over a certain size, or controlled by a tobacco company, the report recommends that it should not receive a federal license, adding that the largest corporations should be subject to &ldquo;the most robust regulation, marketing restrictions, and taxes.&rdquo;</p>

<p>To protect existing businesses and consumers, federal regulations would need to be rolled out slowly, Title says. She points to Massachusetts, where she served as commissioner of the Cannabis Control Commission from 2017 to 2020, as a successful model for policy change. &ldquo;We had a huge grassroots movement for decades, and they succeeded in passing small, local-level advisory decriminalization policies,&rdquo; she says. &ldquo;That turned into state decriminalization in 2008, then medical legalization in 2012, and adult-use legalization in 2016. We did it really gradually, focused on consumers and small businesses. We were the first to incorporate social equity at the state level. If you look at the way in which we changed the law, you can see that we didn&rsquo;t try to do too much overnight. And if [we] don&rsquo;t do that at the federal level, then [we] won&rsquo;t get another chance.&rdquo;</p>
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<p class="has-drop-cap"><strong>Yet there are myriad reasons </strong>for the growing support for federal legalization. Cannabis advocates continue to press forward in their quest to <a href="https://drugpolicy.org/issues/marijuana-legalization-and-regulation">end federal prohibition</a>, saying it will create jobs and economic opportunities, reduce harm, redirect law enforcement resources, generate tax revenue, and promote consumer safety.</p>

<p>The Drug Policy Alliance&rsquo;s <a href="https://drugpolicy.org/press-release/2021/04/federal-cannabis-regulations-working-group-releases-its-principles-federal">2021 report of recommendations</a> for federal lawmakers was extensive, authored by a group of reform advocates, public health professionals, regulators, and attorneys (Title among them). It touches on everything from criminal justice reform to environmental regulations to ensuring controls around minors&rsquo; access to marijuana. They argued that cannabis policy reform, if done right, could create equity in community, health, housing, and the federal economy. In order to achieve these ambitious outcomes, they wrote, &ldquo;We must admit, document, and comprehensively assess past harm. We must seek to repair and undo that harm, and replace existing systems with ones that are anti-racist.&rdquo;&nbsp;</p>

<p>The group&rsquo;s first recommendation was that federal legislation should require &ldquo;a historical accounting of what the Drug War was and is.&rdquo; An evaluation of the damage caused by cannabis prohibition is needed, they wrote &mdash; along with an apology. They noted that, because of the history of the war on drugs, regulating cannabis would be vastly unlike regulating alcohol or tobacco, and that the purpose of federal reform would have to be to &ldquo;end and repair the harms caused by cannabis prohibition, to advance health equity, to foster social and economic equity, and to prevent future harm.&rdquo;</p>

<p>Those harms include the<strong> </strong>about 40,000 people currently incarcerated for marijuana offenses in state and federal prisons; Black and Latino Americans make up two-thirds of the prison population in part because of the <a href="https://www.americanprogress.org/article/rethinking-federal-marijuana-policy/">discriminatory enforcement</a> of drug laws. A 2020 report from the <a href="https://www.aclu.org/report/report-war-marijuana-black-and-white">American Civil Liberties Union</a> (ACLU) shows that Black people are over three times more likely than white people to be arrested for marijuana possession, even though both groups use marijuana at similar rates. Although the total number of people arrested for marijuana possession has decreased in the past decade, law enforcement still arrested 6.1 million people over that period, even <a href="https://thelensnola.org/2021/04/27/marijuana-possession-arrests-continue-to-decline-but-some-still-being-made-despite-nopd-policy/">in states and</a> <a href="https://www.colorlines.com/articles/weeds-legal-dc-if-youre-black-youre-still-high-risk-arrest">cities where</a> marijuana had been decriminalized, and racial disparities in arrests remain intact. If cannabis were federally decriminalized, it could drastically reduce the number of people in the criminal justice system.&nbsp;</p>

<p>Activists have also taken the position that people of color and those with marijuana offenses predating legalization should be afforded the opportunity to participate in the cannabis industry. The Massachusetts Cannabis Control Commission, for example, implemented a <a href="https://masscannabiscontrol.com/equity-programs/">social equity program</a> that serves the individuals most impacted by marijuana prohibition, arrest, and incarceration, by providing participants with education and training for jobs in the cannabis industry. The program could serve as a model for federal reform, with legal-marijuana states being required to create social equity programs that benefit disproportionately harmed communities. Other states that have incorporated social equity programs into adult-use cannabis legislation include California, New Jersey, New York, New Mexico, Michigan, Vermont, Illinois, Connecticut, Arizona, and Virginia, as well as Washington, DC.</p>

<p>Cannabis attorney Cristina Buccola, who also contributed to the Drug Policy Alliance report, says that federal lawmakers need to consider marijuana legalization first and foremost as a justice issue, and that New York state&rsquo;s <a href="https://cannabis.ny.gov/marihuana-regulation-and-taxation-act-mrta">Marijuana Regulation and Taxation Act</a> could serve as a gold standard. &ldquo;New York is only one of three states that has earmarked tax revenues that go back to a community reinvestment fund,&rdquo; she says. &ldquo;What&rsquo;s really incredible is that 40 percent of tax revenue is marked for that fund; New York also has a target of awarding 50 percent of legal cannabis licenses to social and economic equity applicants.&rdquo;</p>
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<p class="has-drop-cap"><strong>A big reason that the federal government </strong>might also want to legalize marijuana is, of course, cash. If state tax revenues are any indication, legal cannabis would reap massive amounts of income for the feds:<strong> </strong>California <a href="https://www.marijuanamoment.net/california-shattered-marijuana-tax-revenue-record-in-latest-fiscal-year-state-reports/">collected</a> around $817 million in adult-use marijuana tax revenue during the 2020-2021 fiscal year, while marijuana taxes in Massachusetts <a href="https://www.boston.com/news/business/2022/01/23/marijuana-excise-taxes-outpace-alcohol-in-massachusetts/">outpaced</a> those garnered from alcohol sales during the same period.</p>

<p>According to a 2018 study by New Frontier Data, a data analytics firm focused on the cannabis industry, legalizing marijuana nationwide could create as much as <a href="https://www.washingtonpost.com/national/2018/01/10/study-legal-marijuana-could-generate-more-than-132-billion-in-federal-tax-revenue-and-1-million-jobs/">$130 billion in tax revenue</a> and more than a million new jobs across the United States in the next decade. Legal cannabis could be a massive windfall for the government, pulling in sales tax, as well as payroll taxes, from the burgeoning industry and its new employees. Now, factor in that the nation has spent tons of money in the past two years on Covid-19 research, relief, and care, and the potential money from legalization is probably looking mighty nice.&nbsp;</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>A big reason that the federal government might also want to legalize marijuana is, of course, cash</p></blockquote></figure>
<p>&ldquo;When there are budget deficits and the like, everybody wants to know where there is an additional revenue stream, and one of the most logical places is to go after cannabis and cannabis taxes,&rdquo; Beau Whitney, then a senior economist at New Frontier Data, told <a href="https://www.washingtonpost.com/national/2018/01/10/study-legal-marijuana-could-generate-more-than-132-billion-in-federal-tax-revenue-and-1-million-jobs/">the Washington Post</a> in 2018.&nbsp;</p>

<p>Change in a particular federal policy also stands to benefit marijuana businesses: Under current federal law, cannabis businesses are subject to the same Internal Revenue Code statute enacted in 1982 that prevents smugglers from deducting expenses like guns and yachts from illicit operations. However, the IRS applies the same statute to state-authorized marijuana retailers, meaning that they <a href="https://www.marijuanamoment.net/irs-releases-tax-guidance-for-marijuana-industry/">aren&rsquo;t allowed to deduct</a> many typical business expenses including rent, marketing, payroll, and losses.</p>

<p>Federal reform could repeal that law and allow cannabis companies to deduct such expenses, potentially increasing tax revenue by encouraging growers and retailers to report income, and even offer incentives for environmentally sustainable industry practices like renewable energy and waste reduction. Tax revenue could also be allocated to reparative justice with funding for expunging cannabis convictions, investment in communities harmed by the war on drugs, and assistance for people in the criminal legal system.</p>

<p>There are potential financial pitfalls to federal legalization, too. Marijuana markets in California and Oregon are in crisis due to <a href="https://www.siliconvalley.com/2021/08/23/cannabis-farmers-barely-breaking-even-as-price-per-pound-plummets-2/">a collapse in cannabis pricing</a>, largely caused by an overabundance of legally grown product. As prices for wholesale cannabis tank, high taxes and oppressive regulations are putting many companies out of business. If a nationwide industry opened up, struggling cannabis farmers would potentially be able to ship their products around the country to states like Massachusetts and Florida, which could force regional cultivators and small local businesses to compete with cheaper out-of-state marijuana, potentially pushing them out of the market altogether.</p>

<p>The move to legalize cannabis has <a href="https://fivethirtyeight.com/features/marijuana-legalization-is-super-popular-why-hasnt-it-happened-nationally/">broad support</a> even in Republican-leaning states like Florida, Louisiana, North Carolina, and Texas &mdash; but even though it&rsquo;s popular, it&rsquo;s not a top priority for many voters, perhaps in part due to the success of legalization at the state level.&nbsp;</p>

<p>However, as the industry continues to grow, pressure is sure to increase on legislators to end federal prohibition, one way or another. With <a href="https://news.gallup.com/poll/356939/support-legal-marijuana-holds-record-high.aspx">more than two-thirds of Americans supporting legalization</a>, and bipartisan support for a federal cannabis policy, it seems likely to happen at some point &mdash; until then, the states&rsquo; solution may be the best anyone can muster.</p>

<p><em>Mary Jane Gibson writes about cannabis culture and trends for a number of outlets including Rolling Stone. She has been tracking the legalization of medical marijuana and adult-use cannabis since 2007.</em></p>
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