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Here’s a rundown of today’s marijuana news:

New regulations on medical marijuana policy were debated today in Colorado. Check out Johnny’s article for a breakdown of what transpired.

Here’s a article about the current state of the medical marijuana program in Michigan.

An interesting article about medical marijuana use on college campuses.

North Carolina lawmakers are putting together a bill to establish a medical program for their State.

The State of Washington is expanding it’s medical marijuana program.

A tragic tale of a caregiver in California.

An interesting report on the financial impact of legalizing marijuana.

 

The debate and protest was heated today in Denver, Colorado over proposed medical marijuana legislation. I received an ASA e-mail late yesterday for a planned rally on the capitol steps, and I heard there was a good turnout. Patients and dispensary owners alike voiced their concern about infringements on patients’ rights. One of the most controversial provisions of the bill is that dispensary owners grow 75 percent of their product. Many dispensary owners feel that this is unrealistic and will result in less access to medicine. Peter Trujillo, co-owner of Trichome Health Consultants, stated “If businesses like this are generating revenue, taxable income for the city, why wouldn’t they want us around to help out with the economy instead of sending all the money back to the black market.”

According to the bill, dispensaries would be licensed through the Colorado Department of Revenue and patients would have to choose between buying from dispensaries or grow their own marijuana. There would also be a one year ban on new dispensaries until the implementation of the bill is well underway. Cities would be allowed to keep their local ordinances and moratoriums dealing with dispensaries. A very contentious item in the legislation is a ban on medical marijuana possession within 1,000 feet of a school. Patients argue that they need to be able to consume medicine inside their residence, as well as transport medical marijuana to their homes from a dispensary or caretaker’s location.

As with just about anything the government does, this process is going to be a slow one. Some activists are even making allegations that the legislature is purposively dragging their feet to wait out the media attention. Whatever the reason, this is going to be the first of many more rounds before an actual vote is heard. Media reports yesterday out of Denver were talking like there was going to be actual action today, but really it was just more of the same. I will monitor my e-mail from Denver, as well as the news, and continue to report what I hear.

 

Is taxing marijuana as easy as people think it is? If it gets politicians to legalize marijuana, BY ALL MEANS LET’S DO IT!!!!! But in reality I don’t think it’s nearly as easy as people think. Exactly how would it work out? Some people think that when it is legal, weed dealers will start coming forward and paying sales/income tax on their business. Otherwise they would be committing felonies, such as tax fraud right? HAVEN’T THEY BEEN DOING THAT THE WHOLE TIME? Weed dealers that I know will just go about business as usual, generating ZERO tax revenue.

What about taxing it by selling it like cigarettes or at liquor stores? You would go into the store and say, ‘Give me a pack of Camel Hydros or Marlboro MJ’s,’ and it would have like 20 doobies in it. Anyone who has ever grown marijuana, or knows someone that grows marijuana, knows that growing marijuana on the same scale of tobacco is impossible, at least if you want it to be good. Tobacco is a hearty plant that can grow from the Caribbean to the Carolinas and it will be fairly uniform in quality.

Marijuana is much different. You are trying to get the plant to within the top 1% of its quality/quantity capabilities. That takes a lot of love and attention, and even then, it doesn’t always work out. There is only one example of a massive marijuana cultivation that would generate enough marijuana to put into a ‘cigarette-style’ system, and that is in Mexico. If you think people will line up at the corner market to buy a pack of bammer joints, by all means tax it to death and see how much it generates, because I think America will be disappointed with the result.

Finally, what about taxing it through a dispensary system like in Colorado or California? People are making tons of money out there right, because the Obama memo has made it a free for all? Let’s just tax it and solve the budget shortfalls nationwide! Guess again. Ordinances, moratoriums, and DEA crackdowns in both states have resulted in significantly less dispensaries staying in business, and virtually no new dispensaries being allowed anywhere.

The feds have stated that they will respect patient rights if they are in accordance with state laws, but in the same paragraph of the memo they also stated they will be going after people that are making large profits from a Schedule 1 substance (according to the feds). Case law, state law, and federal law are all on different pages when it comes to this area of marijuana revenue generation, and until that changes, taxing marijuana this way will be difficult. I’m not saying that it is impossible, but I am saying that there needs to be more focus on the nuts and bolts of a taxation system, instead of just assuming that it will work with no hitches. However, there would be some revenue generated instantly, in the area of prosecutions. All the money that is dedicated to marijuana eradication and prosecution would be saved, which is a staggering figure, and worthy of legalization itself.

 
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