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Soaring prices, supply shortages and overwhelmed regulators are three takeaways from Washington's roll out of its retail marijuana system that Oregon advocates hope to improve upon should the state legalize the drug in November. "You are starting a brand new industry from scratch, so there are definitely hurdles to get over and lessons to be learned," said Anthony Johnson, the chief petitioner for the campaign to legalize marijuana in Oregon.
Washington allowed licensed shops to start selling recreational marijuana to people 21 or older Tuesday, but hiccups in the state-crafted system initially kept the doors closed on all but a handful of locations. That's one of the most important lessons, Johnson said. "We need to look at regulating and licensing growers and processors first, so there is an adequate supply when regulated sales begin." Washington's Liquor Control Broad, which oversees the state's marijuana sales, didn't expect the avalanche of applications it received from potential growers.
Overwhelmed investigators have licensed less than 80 growers out of more than 2,600 applicants. Some of those licensed producers are still growing their first crops, others failed to clear regulatory hurdles and much of the harvested marijuana is still awaiting laboratory testing. The agency has also issued business licenses to 24 out of a possible 334 stores. The limited supply pushed prices to $25 per gram – well beyond what marijuana sells for on the black market.
Washington's law includes a 25 percent excise tax on marijuana at each point of sale (i.e. grower, processor and retailer) on top of an 8 percent sales tax. That means the tax revenue generated from retail pot sales will fluctuate as the price of marijuana rises and falls. "In Oregon, the excise tax will be according to the amount that's sold," Johnson said. "You'll pay $1.25 per gram (in taxes) whether the price of a gram is $10 or $100 ... We feel we have a more stable tax."
He likes that Washington's Initiative 502 focused heavily on the revenues that would be raised for schools and public safety. The ballot initiative submitted by New Approach Oregon dedicates money for mental health programs, schools, addiction services and law enforcement. If Oregon legalizes recreational marijuana this November, it will become the third state in the nation behind Washington and Colorado, both of which passed ballot initiatives in 2012. Johnson said Oregon should have an easier time crafting regulations than Washington because the Oregon Health Authority has already developed a system for regulating medical marijuana dispensaries.
"In Washington, the medical program is not regulated by a state agency," Johnson said. "They had no experience as a state in regulating marijuana sales." Oregon also has the advantage of seeing what works and what doesn't, Johnson said. Colorado requires store owners to grow at least 70 percent of their product while Washington prohibits retailers from growing. "We will provide them the option to grow or not grow," Johnson said. "That's one example where we feel we've taken the best from both measures."
News Moderator - The General @ 420 MAGAZINE ®
Source: Statesmanjournal.com
Author: Anna Staver
Contact: Contact Us
Website: What Oregon can learn from Washington?s marijuana legalization
Washington allowed licensed shops to start selling recreational marijuana to people 21 or older Tuesday, but hiccups in the state-crafted system initially kept the doors closed on all but a handful of locations. That's one of the most important lessons, Johnson said. "We need to look at regulating and licensing growers and processors first, so there is an adequate supply when regulated sales begin." Washington's Liquor Control Broad, which oversees the state's marijuana sales, didn't expect the avalanche of applications it received from potential growers.
Overwhelmed investigators have licensed less than 80 growers out of more than 2,600 applicants. Some of those licensed producers are still growing their first crops, others failed to clear regulatory hurdles and much of the harvested marijuana is still awaiting laboratory testing. The agency has also issued business licenses to 24 out of a possible 334 stores. The limited supply pushed prices to $25 per gram – well beyond what marijuana sells for on the black market.
Washington's law includes a 25 percent excise tax on marijuana at each point of sale (i.e. grower, processor and retailer) on top of an 8 percent sales tax. That means the tax revenue generated from retail pot sales will fluctuate as the price of marijuana rises and falls. "In Oregon, the excise tax will be according to the amount that's sold," Johnson said. "You'll pay $1.25 per gram (in taxes) whether the price of a gram is $10 or $100 ... We feel we have a more stable tax."
He likes that Washington's Initiative 502 focused heavily on the revenues that would be raised for schools and public safety. The ballot initiative submitted by New Approach Oregon dedicates money for mental health programs, schools, addiction services and law enforcement. If Oregon legalizes recreational marijuana this November, it will become the third state in the nation behind Washington and Colorado, both of which passed ballot initiatives in 2012. Johnson said Oregon should have an easier time crafting regulations than Washington because the Oregon Health Authority has already developed a system for regulating medical marijuana dispensaries.
"In Washington, the medical program is not regulated by a state agency," Johnson said. "They had no experience as a state in regulating marijuana sales." Oregon also has the advantage of seeing what works and what doesn't, Johnson said. Colorado requires store owners to grow at least 70 percent of their product while Washington prohibits retailers from growing. "We will provide them the option to grow or not grow," Johnson said. "That's one example where we feel we've taken the best from both measures."
News Moderator - The General @ 420 MAGAZINE ®
Source: Statesmanjournal.com
Author: Anna Staver
Contact: Contact Us
Website: What Oregon can learn from Washington?s marijuana legalization
