Tag: Marijuana

Senate Appropriations Committee Report Criticizes Barriers to Marijuana Research

Last week, the Senate Appropriations Committee filed a report along with the appropriations bill for the Departments of Labor, Health and Human Services, and Education. The report mostly consists of broad policy recommendations and guidance for how to spend the appropriated money. On page 108 of the 273 page report, however, is a discussion of “barriers to research,” specifically, how the “Committee is concerned that restrictions associated with Schedule 1 of the Controlled Substance Act effectively limit the amount and type of research that can be conducted on certain Schedule 1 drugs, especially marijuana or its component chemicals and certain synthetic drugs.”

While the report is not law, it signals a welcome change in attitude. For decades, marijuana’s Schedule 1 status has made it very difficult for researchers and scientists to investigate the plant’s medicinal and harmful properties. In order to research marijuana legally for clinical purposes, even if you’re in Colorado and could just purchase some, you must first get a license from the DEA, then get approval from the FDA, and finally get access to the one federally authorized marijuana supply, which is grown at the University of Mississippi and run by the National Institute on Drug Abuse (NIDA). On top of that, the federally sourced marijuana is often moldy and of unpredictable quality. And then there’s funding, which has often not been forthcoming to those trying to research the possible beneficial uses of cannabis.

Taken together, all of those steps make researching marijuana more difficult than researching almost any other drug on the planet, including other Schedule 1 substances such as heroin and LSD. As the Appropriations Committee report says, “At a time when we need as much information as possible about these drugs, we should be lowering regulatory and other barriers to conducting this research.” The report thus directs NIDA to “provide a short report on the barriers to research that result from the classification of drugs and compounds as Schedule 1 substances.”

The report comes at a time when Attorney General Jeff Sessions is blocking an Obama administration attempt to make marijuana more easily available to researchers. In August 2016, the DEA began accepting applications to become an authorized marijuana supplier. Twenty-six applications were submitted but, after the administration changed over, Attorney General Sessions stalled the approval process. In response, Senators Orrin Hatch (R-UT) and Kamala Harris (D-CA) sent a letter to Sessions asking him to stop blocking research. Hatch has also introduced the MEDS Act, which is a more permanent legislative fix to the problems around marijuana research.

Federal marijuana prohibition, at least as a Schedule 1 drug, is on its last legs. Nine states and the District of Columbia have legalized recreational cannabis and 30 states have legalized medical marijuana. No one is putting that genie back in the bottle. Federal law is so antiquated, in fact, that it makes no distinction between medical and recreational use. Schedule 1 drugs have no accepted medical uses, and the difficulty of carrying out medical research is one reason marijuana still has that status. The Senate Appropriations report is just another step toward the inevitable revision of federal marijuana laws.

Will Regulations Create Big Marijuana?

I wrote last month that new regulations and taxes in California’s legalized marijuana regime are likely to result in a situation in which

a few people are going to get rich in the California marijuana industry, and fewer small growers are going to earn a modest but comfortable income. Just one of the many ways that regulation contributes to inequality.

Now the East Bay Express in Oakland offers a further look at the problem:

East Bay ExpressAsk the people who grow, manufacture, and sell cannabis about the end of prohibition and you’ll hear two stories. One is that legalization is ushering a multibillion-dollar industry into the light. Opportunities are boundless and green-friendly cities like Oakland are going to benefit enormously. There will be thousands of new jobs, millions in new tax revenue, and a drop in crime and incarceration.

But increasingly you’ll hear another story. The state of California and the city of Oakland blew it. The new state and city cannabis regulations are too complicated, permits are too difficult and time consuming to obtain, taxes are too high, and commercial real estate is scarce and expensive. As a result, many longtime cannabis entrepreneurs are either giving up or they’re burrowing back into the underground economy, out of the taxman’s reach, and unfortunately, further away from the social benefits legal pot was supposed to deliver….

Some longtime farmers, daunted by the regulated market’s heavy expenses, taxes, and low-profit predictions, have shrugged and gone back to the black market where they can continue to grow as they always have: illegally but free of hassle from the state’s new pot bureaucrats armed with pocket protectors and clipboards.

Not all the complaints in the two-part investigation are about taxes and overregulation. Some, especially in part 1, are about “loopholes” in the regulations that allow large corporations to get into the marijuana business and about “dramatic changes to Humboldt County’s cannabis culture, which had an almost pagan worship of a plant that created an alternative lifestyle in the misty hills north of the ‘Redwood Curtain.’”

WSJ on RegulationBut there’s plenty of evidence that regulations are more burdensome on newer and smaller companies than on large, established companies. Indeed, regulatory processes are oftencaptured” by the affected interest groups. The Wall Street Journal confirmed this just yesterday, reporting that “some of the restrictions [in Europe’s GDPR online privacy regulations] are having an unintended consequence: reinforcing the duopoly of Facebook Inc. and Alphabet Inc.’s Google.”

The Beginning of the End for Cannabis Prohibition?

The Boston Globe reports Colorado Senator Cory Gardner is crafting a bill that would prevent the federal government from interfering with states that have voted to legalize cannabis for recreational or medicinal purposes. The Senator is busy recruiting several co-sponsors for the bill, and he has received assurances from President Trump that he would sign such a bill into law.

This would be a step in the right direction and would alleviate concerns in many states that the Department of Justice, under new guidance from Attorney General Sessions, might enforce federal marijuana prohibition.

Unfortunately, as long as the Drug Enforcement Administration continues to classify cannabis as a Schedule 1 drug, quality clinical research on the potential medical applications of cannabis will remain significantly inhibited. By definition, a Schedule 1 drug has “no currently accepted medical treatment use.” Recent studies have shown that chronic pain patients have been able to reduce their opioid dosage and consumption by adding cannabis to their pain management regimen. A study of Medicare Part D patients from the University of Georgia published in JAMA earlier this month demonstrated this effect in states where medicinal marijuana has been legal. Another study published the same week from the University of Kentucky showed this effect was even greater in states where marijuana is legal for recreational use. And another recent study from the Minnesota Department of Health earlier this year found 63 percent of patients taking medical marijuana for their chronic pain were able to reduce or eliminate their opioid use within 6 months.

Topics:

Small Marijuana Growers Squeezed Out by Legalization and Regulation

It’s often been noted that regulations can impose larger relative costs on small businesses and can serve to protect incumbent firms from new competitors. Goldman Sachs CEO Lloyd Blankfein noted that new regulations created a “moat” around his firm:

That all industries are being disrupted to some extent by new entrants coming in from technology. We, again, being, you know, technology-oriented ourselves, try to disrupt ourselves and try to figure out what’s the new thing, and come up with new platforms, new forms of distribution, new products. But in some ways, and there are some parts of our business, where it’s very hard for outside entrants to come in, disrupt our business, simply because we’re so regulated. You’ll hear people in our industry talk about the regulation. And they talk about it, you know, with a sigh: Look at the burdens of regulation. But in some cases, the burdensome regulation acts as a bit of a moat around our business.

The Washington Post reports on a new example: the legalized marijuana market in California. Libertarians have long urged the legalization of marijuana and other drugs. Certainly I expect better results from a legal regime where people are not arrested for buying, selling, or using marijuana. But governments can’t just repeal laws and stop arresting people; instead, they prefer to set up a regime of taxes and regulation. And that’s having an effect on the small marijuana growers in the state’s “Emerald Triangle.” As Scott Wilson reports in the Post:

Humboldt County, traditionally shorthand for outlaw culture and the great dope it produces, is facing a harsh reckoning. Every trait that made this strip along California’s wild northwest coast the best place in the world to grow pot is now working against its future as a producer in the state’s $7 billion-a-year marijuana market.

A massive industry never before regulated is being tamed by laws and taxation, characteristically extensive in this state. Nowhere is this process upending a culture and economy more than here in Humboldt, where tens of thousands of people who have been breaking the law for years are being asked to hire accountants, tax lawyers and declare themselves to a government they have famously distrusted. 

Wilson estimates that “Fewer than 1 in 10 of the county’s estimated 12,500 marijuana farmers are likely to make it in the legal trade….Less than 1 percent of the estimated 69,000 growers statewide have received a permit to farm marijuana since the beginning of the year.”

Border Patrol Checkpoints Do Not Work—End Them

Data from a new Government Accountability Office (GAO) report shows that interior checkpoints manned by Border Patrol agents are a poor use of resources, at least from an enforcement perspective. Border Patrol checkpoints would have to have apprehended about 100,000 to 120,000 more illegal immigrants from FY2013-2016 than they actually did to justify the man-hours spent occupying them by agents. Even those who support expanding immigration enforcement along the border should recognize that checkpoints are a waste of scarce border security resources. 

Border Patrol agents man checkpoints within 100 miles of the U.S. border where they can stop motorists, inquire about immigration status, and enforce other laws. Checkpoints are a significant risk to civil liberties and are expensive to run. Supporters argue that checkpoints are effective at enforcing federal laws against illegal immigration and drugs, although Border Patrol officials state that they are more concerned about the former. However, the number of illegal immigrant apprehensions, drug seizures by weight, and the deployment of Border Patrol man-hours to checkpoints show that they are not a good use of resources if the goal is to enforce immigration and drug laws.

Figure 1 comes from data reported by the GAO for FY2013-2016. About 9.4 percent of all man-hours worked by Border Patrol were at checkpoints but they only apprehended 3.1 percent of all illegal immigrants apprehended and 5.4 percent of all marijuana seized by weight, at best. At worst, Border Patrol apprehended only 1.9 percent of all illegal immigrants at checkpoints (this same number estimate is not reported for marijuana seizures). This means that Border Patrol agents would have to have apprehended 101,219 to 120,978 more illegal immigrants from FY2013-2016 at checkpoints than they actually did in order for their expenditure of man-hours to be proportional to their apprehensions. 

Border Patrol would have had to seize about 410,952 more pounds of marijuana at checkpoints from FY2013-2016 for their man-hours expenditure there to be proportional to the amount of the drug that they seized. Each unit of time that a Border Patrol agent spends at checkpoints results in fewer apprehensions and marijuana seizures than the same unit of time does spend enforcing those laws outside of checkpoints.

Figure 1

Border Patrol Man-Hours, Marijuana Seized by Weight, and Immigrant Apprehensions by Location, FY2013-2016

 

Source: Author’s Calculations from GAO.

Senator Hatch Thinks It’s High Time to Fix Barriers to Medical Marijuana Research; It Is

On Wednesday, Senator Orrin Hatch of Utah came out in support of medical marijuana and, in particular, removing federal barriers to medical marijuana research. This is a welcome development. Hatch, the longest serving senator in U.S. history, comes from a state where there is a strong aversion to intoxicating substances. Nevertheless, lawmakers in Utah recognized the medical potential of cannabis-derived medicines when they legalized cannabidiol oil (CBD) in 2014.

The MEDS Act, first introduced by Senator Brian Schatz of Hawaii, would greatly streamline the arduous process of research into marijuana’s medicinal applications. As I recently discussed at a Capitol Hill event, as well as in a recent article and on a recent Cato Daily Podcast, it is unnecessarily difficult to research marijuana. All research on controlled substances must satisfy various legal requirements in order to be authorized by the federal government. Marijuana researchers, however, must jump through the additional hoop of acquiring government-authorized marijuana from the only place where it is legally grown: the University of Mississippi. The government’s supply, however, is often inadequate to the needs of researchers, as well as being generally low quality. Nevertheless, the federal government has consistently argued that, under various UN treaties, it cannot authorize more than one source of legal, research-grade marijuana. This is despite the fact that there are many sources from which researchers can acquire nearly every other Schedule I drug.

Late in the Obama administration, the DEA opened up applications for more suppliers of research-grade marijuana. After taking office, Attorney General Sessions apparently shut down that program by simply not considering the 25 or so applications that were submitted. Among other things, the MEDS Act forbids the attorney general from establishing a quota for marijuana manufacturers and requires all applications to be acted on within 30 days.

Sessions has also asked Congress to repeal the Rohrbacher-Farr amendment, which prohibits the Department of Justice from using federal funds to interfere with states that authorize medical marijuana. In other words, while much of the country is moving on to legalizing marijuana for recreational use, Sessions is still trapped in the past and fighting against medical marijuana.

That’s not surprising, as much of our marijuana policies are trapped in the past. From the Marihuana [sic] Tax Act of 1937 to the Controlled Substances Act of 1970, our marijuana policy was largely created by people who believed Reefer Madness is a level-headed and reasonable portrayal of the effects of marijuana use. That’s like running the Smithsonian’s natural history museum based on insights gleaned from Raquel Welch’s 1,000,000 Years B.C. or The Land Before Time. I applaud Senator Hatch for pushing to update our prehistoric laws.

Common Myths About Marijuana Legalization

This coming Tuesday, nine states will consider ballot initiatives that legalize marijuana for medical or recreational purposes under state law. Twenty-five states have already legalized marijuana for medical use, and four have legalized fully, and polls suggest many or most of the new initiatives will pass. Opponents nevertheless make strong claims about adverse consequences from existing and proposed legalizations. We argue, based on the evidence, that such claims are exaggerated, misleading, or outright false.

Legalizing marijuana dramatically increases use: Several countries (Portugal, the Netherlands, Australia, and part of the U.K.) have liberalized their marijuana laws with little or no impact on marijuana use. Research on U.S. medical marijuana laws suggests that adult marijuana use has increased only modestly. Preliminary data in Colorado and Washington, the two first states to legalize recreational marijuana, display similar trends in use before and after legalization.

Legalizing marijuana increases other substance use: Whether legalization affects other substance use depends on whether new consumers progress to drugs such as cocaine or heroin (the gateway effect) and whether existing consumers substitute marijuana for other substances.  No scientifically convincing evidence supports the gateway hypothesis for marijuana.  In fact, some research suggests that users substitute from alcohol toward marijuana after liberalization. Rates of cocaine use appear unchanged in the wake of recreational marijuana laws. Research on medical marijuana laws shows little impact on alcohol or cocaine use.

Topics:

Pages