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December 12, 2013

New Slate series examines Colorado prelude to pot legalization

Sam Kamin and Joel Warner have launched a new Slate series that is a must-read for any and everyone interested in following Colorado's path-breaking experiences with marijuana legalization. This first piece, headlined "Blazing a Trail: Colorado is about to become the first state in the modern world to legalize marijuana from seed to sale—is it ready?," sets up the themes, and here are excerpts:

On Jan. 1, Colorado will become the first state in the modern world to legalize marijuana from seed to sale. (Uruguay voted on Tuesday to legalize pot, but the law won't be implemented for 120 days. In the Netherlands, marijuana is simply decriminalized, not legal. While Washington state legalized marijuana at the same time Colorado passed Amendment 64, its regulatory system likely won’t be up and running until next summer.) That means Colorado’s lawmakers, businesses, and citizens are facing issues no one has tackled before. How do you legally produce marijuana? What procedures should be put in place for its packaging, transportation, sale, and taxation? How do you keep track of all that pot, and how do you discipline those who run afoul of your regulations? How do you regulate the financing of pot operations, the development of peripheral businesses, the marketing of marijuana to tourists? And how do you keep the whole thing from falling apart? In short, how do you build an entire industry from scratch?

Over the next two months, as Colorado’s legal pot industry opens for business, the two of us — Sam Kamin, a University of Denver law professor, and Joel Warner, a local writer — will look at how Colorado is answering these questions, with the world watching and possibly billions of dollars at stake — not to mention the federal government keeping a close eye on everything. Marijuana, after all, remains a Schedule I drug under the Controlled Substances Act, alongside LSD and heroin. That means Colorado has to figure out a way to abide by its voters’ wish to authorize marijuana’s possession, manufacture, and sale without causing the feds to act on the fact that all of these actions are still punishable by up to life in prison.

We’re beginning our coverage with the most important issue Colorado has had to wrestle with so far: How do you build a regulatory framework for pot? All other decisions on legalized marijuana derive from this one. Pretty much every legal good and service is regulated in one way or another—restaurants are inspected, plumbers are licensed, sodas have to list their ingredients—and marijuana is a psychoactive substance, like cocaine, alcohol, and sleeping pills, so clearly there have to be rules about how it’s used. Even marijuana’s most ardent proponents concede there have to be limits on its sale and usage — children shouldn’t have access to it, people shouldn’t drive under its influence. But the biggest argument of all for marijuana regulation, from the government’s perspective, is taxation. If the state doesn’t know who is selling it, where they are selling it, or who’s buying it and at what price, Colorado can’t make any money off it.

To determine the best way to regulate this new market, a week after the law passed, Colorado Gov. John Hickenlooper formed the Amendment 64 Implementation Task Force comprised of elected officials, stakeholders in the state’s existing medical marijuana industry, and various experts (including one of us—the University of Denver’s Sam Kamin). It was no easy task, especially since Colorado had just over a year to pick a regulatory model, pass legislation implementing it, conduct rulemaking around it, and go through all the licensing and inspections required to implement it by Jan. 1. Compared to how long most governmental processes take, that was a blink of an eye.

Cross posted in part at Marijuana Law, Policy and Reform

December 12, 2013 at 10:59 PM | Permalink

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