Why the STATES Act Doesn't Go Far Enough

As far as the prospect of cannabis legalization at the federal level in the USA is concerned, there seems to be both good news and bad news.

The good news is that there is a bill in Congress with strong bipartisan support, known as the STATES Act, that would effectively make it so the federal Controlled Substances Act would no longer apply to cannabis when used, possessed, produced, transported, distributed, or sold in compliance with state laws.  This will be a real game-changer and would essentially put an end to the legal limbo that state-level legalization has been in with respect to federal law (as cannabis has heretofore remained illegal at the federal level as a Schedule I controlled substance).   Cannabusinesses would no longer be in danger of the feds, and would be able to use the banking system just like any other legitimate business. And Trump has said that he is likely to sign it into law. (Even a stopped clock is right twice a day.)

The bad news is that the STATES Act does not go far enough.  First of all, it does not actually remove cannabis from the Controlled Substances Act, or even remove it from the most restrictive category of Schedule I.  Also, the bill leaves some federal restrictions of the CSA intact, most notably the section prohibiting selling or distributing cannabis to people under 21, even if it did comply with state law (except for medical use, which the bill interestingly does not actually define).  While no legalization state currently has an age limit below 21 for recreational use, if any state did lower it below 21 for recreational use, any vendor who sells to people under 21 would thus still technically be breaking federal law.  Ditto for anyone who hires anyone under 18 to work with cannabis in any capacity, sells at truck stops or rest areas, and a few other things as well. 

There are indeed better bills that have been introduced in Congress that do not have these flaws, most notably the Marijuana Justice Act.   That bill removes cannabis from the Controlled Substances Act entirely, expunges federal cannabis convictions, sets up a community reinvestment fund, and would also help to tackle racial and class disparities in state-level cannabis arrests.  Another bill by Senator Chuck Schumer would simply remove cannabis from the list of controlled substances and otherwise leave it up to the states.   Twenty-One Debunked would clearly much rather those kinds of bills get passed, especially the first one.  But in the interim, we will grudgingly support the STATES Act until we can get the Marijuana Justice Act or a similar bill passed, as federal legalization is LONG overdue.

O Cannabis! Canada Moves to Legalize It

On June 7, 2018, the Canadian Senate voted 56-30 to approve Bill C-45, which will legalize recreational cannabis at the federal level.  The House of Commons had already passed it, and while the House must now decide whether to approve or reject the several amendments added on by the Senate, it is basically a done deal at this point, and will soon be heading to Prime Minister Justin Trudeau's desk.  And he will almosy certainly sign it into law, as after all the basic tenets of this bill were largely his very own brainchild.  Thus, it is now virtually certain at this point that Canada will become the world's first highly developed nation (and second nation overall after Uruguay in 2014) to fully legalize cannabis for all uses at the national level.

Put that in your pipe and smoke it.

And Canada's model for legalization would in fact be superior to those of several US States in several ways:

• The age limit at the federal level will be 18, and at the provincial level will be 18 or 19, depending on the province, just like the drinking age. (In contrast, all US States that have legalized it set the age limit at 21.)
• Penalties for underage possession would likely be just a modest civil citation/ticket (though that will be up to the provinces).  (Unfortunately, in some US States it is still a criminal offense if "underage")
• Penalties for sharing small amounts (such as passing a joint) with someone below the age limit but close in age would also likely be a modest civil citation/ticket rather than a criminal offense.  (Unlike the USA)
• Taxes would start out quite low, to avoid perversely incentivizing the black market to linger around after legalization. (The opposite is true in many US States.)
• The threat of excessively strict "local option" resulting in vast swaths of territory where cannabis cannot be bought and sold legally at all would essentially not exist in Canada.  (Unlike some US States)
• And they added an amendment that would provide better safeguards against organized crime as well.

That said, their model is not completely flawless.  For example, the federal limit for home growing is a mere four plants per dwelling at any given time, with a height restriction, and provinces would have the right to ban home growing entirely if they so choose.  We think a limit of six plants per person and twelve plants per dwelling would be better, and that only densely populated areas with dispensaries fairly close by should be allowed to ban home growing if they so choose (though hopefully no such bans).  Also, First Nations (Indigenous) reserves, though currently allowed to locally ban or heavily restrict alcohol, appear to have no such latitude when it comes to cannabis (though we feel they should on their own land), and the issue of tax-sharing with the tribes needs to be ironed out as well--though the First Nations lobby ultimately dropped the initial opposition to the bill.  But these flaws, along with some more trivial ones, can be resolved later.  Otherwise, this is a good bill overall, and one major step closer to Reefer Sanity for a change.

We here in the USA can certainly learn a lot from our friendly neighbor to the north.  And that is true for both alcohol and cannabis.  They certainly don't seem to be too keen on repeating our mistakes.

UPDATE:  As of June 20, 2018, just in time for Canada Day (July 1), the bill has officially passed in its final form.  The official start date for legalization, though, will be October 17, 2018, to give the provinces more time to prepare.  Better late than never.

California Dreaming? More Like Disappointing

While Twenty-One Debunked is pleased that the fifth largest economy in the world, California, has fully legalized cannabis for recreational use and even finally has legal weed stores, nearly half a year later the promise of booming tax revenue seems to have been a letdown thus far.  While any cannabis legalization is better than prohibition, and any tax revenue is better than zero, of course, it still seems to have fallen a bit short of the promises.

How so, you ask?  Let us count the ways:

1. Taxes are too high.  When all of the several different taxes are added in, it adds up to as much as 45% of the before-tax price in some municipalities. 
2. That is, of course, if you can even GET any legal weed at all in one's municipality of choice.  Local option means that many towns and cities have chosen to locally ban (or delay indefinitely) the implementation of full retail legalization.
3. And last but not least, the age limit is 21.

Add all these factors up and you have a recipe for a thriving, if smaller, black market for cannabis.  Especially since the original pre-legalization black market was not yet eradicated.  Had the Golden State started out with significantly lower taxes, more municipalities allowing retail cannabis stores, and an age limit of 18 (though the first two factors seem to be the most important), they could have easily eradicated the black market within a few years and then been able to raise the taxes on cannabis to even a much higher level than they are now without the black market coming back anytime soon.  That is basically what Rear Admiral Luther E. Gregory found out after the repeal of alcohol Prohibition in Washington State.  And it worked.

So, in a nutshell, here is how California can solve this problem:

1. Lower the combined taxes on cannabis to no more than $10/ounce (or 10%, whichever is lower) for the first year or two.  And make cannabis retail licenses cheaper than liquor and tobacco licenses.
2. Remove excessively strict levels of local option or at least provide incentives for municipalities to allow retail weed stores.
3. Lower the age limit to 18.  Yesterday.
4. Crack down on any vendors who are caught flouting any of the new laws, and blacklist violators from getting any retail licenses in the future.
5. After the first year or two (or three), jack up the taxes on cannabis to as much as $50/ounce at the cultivation level and additionally 10-15% at the retail level.  Or make the tax proportional to THC content.

Problem solved.  Next.  But of course, that would make far too much sense, right?

Oh, and as long as we are talking about taxes, keep in mind that California's alcohol taxes are below the national average.  Raising those taxes would be a good place to start if they want more revenue quickly.

At least America's friendly neighbor to the north will not be repeating our mistakes.  Taxes in Canada will start out quite low, and the age limit will be 18 or 19 depending on the province.  Watch their economy boom faster than you can say, "O Cannabis!"