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Michigan Officials: Legal Marijuana Will Create Even More Revenue Than Activists Predicted

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If Michigan voters elect to legalize marijuana in November, the state can expect to collect hundreds of millions of dollars in tax revenue over the next five years, according to a new report from the non-partisan Michigan Senate Fiscal Agency.

In fact, the new estimates are even higher than those projected by the group sponsoring the legalization ballot measure.

While that group, Regulate Marijuana Like Alcohol In Michigan (RMLAM), predicted that the state would collect about $520 million in cannabis sales and excise tax revenue in the five years after implementation, the government estimate is closer to $730 million over the same time span.

Via Michigan Senate Fiscal Agency.

The agency’s report is “more bullish than ours,” Josh Hovey, spokesperson for RMLAM told Marijuana Moment.

“We knew from the get-go that ours was a very conservative estimate and we wanted to make sure we had something that wasn’t going to oversell the public on legalization. Because, in retrospect, whether it’s $130 million a year or more than $200 million a year, that is just secondary to ending unnecessary arrests and freeing up the court system.”

The initiative, Proposition 1, would impose a 10 percent excise tax on non-medical cannabis sales in addition to the state’s six percent sales tax. It would also eliminate a three percent tax on medical cannabis “provisioning centers,” which was accounted for in the fiscal report.

Where would all that money go?

The 10 percent excise tax revenue would be distributed for transportation infrastructure (35 percent), schools (35 percent) and local jurisdictions that permit adult-use marijuana businesses to operate in their municipalities and counties (15 percent each).

Based on the government report, that means that by the 2022-23 fiscal year, out of of $252 million in total marijuana tax revenue, about $126 million will go toward road construction and K-12 education funds on an annual basis from the excise tax alone. On top of that, schools would receive an additional $77 million a year due to marijuana commerce, allocated from the state’s six percent sales tax.

Then, of course, there’s the cost savings of simply ending marijuana arrests and related prosecutions and incarcerations, as the Michigan Senate Fiscal Agency noted. The proposition “could have a positive fiscal impact on State and local government,” according to the report.

“Fewer felony arrests and convictions could decrease resource demands on court systems, community supervision, jails, and correctional facilities. In 2016, 199 people were sentenced to prison for a marijuana-related felony conviction, and 3,620 were sentenced to jail, probation, or a combination of both.”

The chances that Michigan ends up legalizing marijuana for adult-use seem fairly strong. A September 2018 poll from The Detroit News and WDIV-TV found that 56 percent of likely Michigan voters favor fully legalizing cannabis, compared to just 38 percent who said the opposed ending prohibition.

Michigan Cops Lock Up 80-Year Old Grandmother For Expired Medical Marijuana Card

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

Politics

Mormon Church Faces Potential Lawsuit Over Medical Marijuana Opposition

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One week after Utah voters approved a medical marijuana ballot initiative, a lawyer representing patients and advocates has formally notified the Mormon church to preserve records ahead of a potential lawsuit concerning its alleged attempts to undermine the measure.

It’s no secret that the church opposed the medical cannabis initiative, which ultimately passed by roughly 52-46 percent, with some ballots still left to be counted. Though the organization said it supports medical cannabis reform, it vehemently resisted Proposition 2 and implored church members to vote against it.

Advocates and opponents reached a tentative compromise last month ahead of Election Day to have the Utah state legislature pass legislation during a special session ensuring access to medical marijuana. But not all legalization proponents felt encouraged by the deal, and the new legal notice to the church signals continued battles over exactly how the state’s patients will access legal cannabis.

Several Utah lawmakers, the Utah Patients Coalition and the Utah Medical Association were also named in the notice and asked to maintain records.

The church has “a long history of dominating and interfering with the government of the State of Utah, often dictating to state and municipal legislators what legislative measures or policies they are to support or oppose,” attorney Rocky Anderson, a former mayor of Salt Lake City, wrote in the notice, which was shared with Marijuana Moment.

“That dominance and interference is prohibited by the Utah Constitution.”

Whether or not there will be a lawsuit remains unclear, as Anderson wrote that it was up to the claimants who reached out to him to determine if that was the best course of action. Advocacy groups TRUCE and the Epilepsy Association of Utah, along with several patients, are listed as claimants in the document.

Brian Stoll, a reform advocate who has served as a spokesperson for TRUCE and is also a member of the church, told Marijuana Moment that he does expect a lawsuit to go forward.

“Speaking as myself, not TRUCE, I do believe that they have every intention of going forward with the lawsuit if only to get lawmakers under oath discussing the domination of the political process in Utah of the Church of Jesus Christ of Latter-day Saints on record,” he said. “There have been many stories over the years about their undue influence, including some accounts published by lawmakers detailing how intimately involved they are in legislation regarding certain topics.”

“As you know, I’m an active member of The Church, and that will remain true. However, after having worked with the Utah legislature for the better part of three years where I saw this happen, and seeing all their work to thwart Prop 2 including having the ability to call a special session, I feel that it’s unethical and not right for them to have such an influence.”

If there is a lawsuit, the church is being implored to preserve a wide range of records, both physical and electronic. Anderson alleges that the church forced the special session “to radically undermine and alter the new law,” which he claims amounts to a constitutional violation.

“Vastly altering the law mandated by the people is contrary not only to the popular will, but contrary to the intention expressed in the Utah Constitution that the people can, through an initiative, directly exercise their constitutionally guaranteed legislative power,” he wrote.

In a statement provided to Marijuana Moment, a spokesperson for the Mormon church said “we have worked, from the outset, with medical professionals, law enforcement, educators and many other groups and prominent community leaders to seek the best for the people of Utah, to provide relief from human pain and suffering, especially where children are concerned.”

“Broad community engagement was the reason a workable, beneficial and safer medical cannabis program was put together at the direction of state leadership. We stand behind and look forward to the safe, responsible and  compassionate solution that will be considered by the state legislature,” the spokesperson said.

Read the full notice below.

Notice to Maintain Records – LDS Domination – Prop. 2 by Marijuana Moment on Scribd

UPDATE: This story has been updated to include comments from reform advocate and Mormon church member Brian Stoll, as well as a statement from the church. 

Utah Voters Approve Medical Marijuana Legalization Ahead Of Compromise Deal

Photo courtesy of Chris Wallis // Side Pocket Images.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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Politics

Colorado Governor Touts Marijuana Legalization’s Benefits

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After the 2012 election, which saw Colorado become the first state to legalize marijuana, Gov. John Hickenlooper (D) said he probably would have reversed the vote if he had a magic wand.

But with the perspective of a few years post-legalization, today he says he’d put that wand “back in the drawer.”

“I’m not quite there to say this is a great success, but the old system was awful,” Hickenlooper said at a forum hosted by the Economic Club of Chicago on Wednesday.

What’s more, “the things that we most feared—a spike in teenage consumption, a spike in overall consumption, people driving while high—we haven’t seen them,” he said.

“We had a little increase in teenage consumption, but then it went down. We do think that some of the teenage consumers are using it a little more frequently than they were five years ago before legalization. We have in many ways seen no demographic where there’s an increase in consumption, with one exception: senior citizens. I leave you to draw your own conclusions.”

Hickenlooper, who’s been floated as a potential 2020 presidential candidate, described the challenges his administration faced when Colorado voters approved an adult-use legalization measure. Elected officials and advisors were opposed to it, he said, and plus, “it’s no fun to be in conflict with federal law.”

But he pushed forward with implementation, recruiting the “smartest people” he could find to figure out the best approach to regulation and taxation. And Illinois, which recently elected pro-legalization J.B. Pritzker for governor, will likely be better off if they pursue reform because they can learn from the successes and failures of Colorado’s system, Hickenlooper said.

“Ultimately, I haven’t come to a final conclusion yet, but I think it’s looking like this is going to be—for all of the flaws and challenges we have—a better system than what we had. You guys are going to benefit, I think, having let us make a bunch of the mistakes and deal with it, I think you’re going to be able to have a much better system if indeed that is the direction that the state wants to go.”

Asked what advice he’d give to Pritzker if Illinois does elect to fully legalize cannabis, Hickenlooper offered three tips: 1) don’t overtax marijuana, or else the illicit marketplace will persist, 2) get data from law enforcement on the presence of cannabis metabolites in the blood after highway fatalities to establish “good baselines” for comparison and 3) set limits on THC concentrations in edibles.

“What they’re selling now, they tell me it’s 10-to-12 times more intense than what allegedly I smoked in high school,” Hickenlooper said, pausing before conceding, “I smoked pot in high school and I inhaled, but it was a fraction of the intensity of what these kids are getting now.”

Legal Marijuana Would Generate Hundreds Of Millions For Illinois, New Analysis Finds

Photo courtesy of YouTube/Economic Club of Chicago.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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The DEA Just Got Scolded Over Its Marijuana Eradication Program

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The Drug Enforcement Administration (DEA) got a slap on the wrist from a federal watchdog agency over its management of a multi-million dollar marijuana eradication program.

In a report released on Wednesday, the non-partisan Government Accountability Office (GAO) said the DEA had failed to adequately collect documentation from state and local law enforcement partners that received funds through the federal program. And that lapse could prevent the agency from being able to accurately assess “program performance.”

What’s more, the DEA “has not clearly documented all of its program goals or developed performance measures to assess progress toward those goals,” according to the report.

In other words, the agency expends about $17 million in funds to partners across the U.S. each year to help them get rid of illegal cannabis grows. That includes fully legal states like California, where enforcement efforts are generally limited to public lands—namely national forests. But due to inadequate record keeping, the DEA doesn’t really know if that money is serving its purpose.

To fix the problems, the GAO issued four recommendations:

1. The DEA Administrator should develop and implement a plan with specific actions and time frames to ensure that regional contractors are implementing DEA’s requirement for collecting documentation supporting participating agencies’ Domestic Cannabis Eradication And Suppression Program (DCE/SP) program expenditures in the intended manner.

2. The DEA Administrator should clarify DCE/SP guidance on the eradication and suppression activities that participating agencies are required to report, and communicate it to participating agencies and DEA officials responsible for implementing DCE/SP.

3. The DEA Administrator should clearly document all DCE/SP program goals.

4. The DEA Administrator should develop DCE/SP performance measures with baselines, targets, and linkage to program goals.

The DEA was able to review a draft of the GAO report ahead of its release and, in an October 17 letter, a Justice Department official said the agency concurred with all four of the recommendations and would take steps to address them.

You can listen to a podcast about the GAO report here:

Just because it’s the DEA’s program doesn’t mean it’s the only agency dropping the ball on marijuana eradication efforts. In April, a report from the inspector general for the U.S. Department of Agriculture found that agents weren’t adequately cleaning up public lands after cannabis busts, which can pose threats to humans, animals and the environment.

Feds Don’t Properly Clean Up After Marijuana Raids, Report Finds

Photo courtesy of Chris Wallis // Side Pocket Images.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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