MARIJUANA

MARIJUANA

LAWS AND LESSONS

TO INFORM NORTH

CAROLINA POLICY

TABLE OF CONTENTS

I. CURRENT LAWS GOVERNING MARIJUANA.................................................2 A. DEFINITIONS.........................................................................................2 B. FEDERAL VS. STATE LAWS....................................................................2 C. OVERSIGHT ENTITY..............................................................................3 D. PRODUCER AND PROCESSOR LAWS................................................3 E. SALES AND PURCHASE LAWS............................................................4 F. MARKETING LAWS AND REGULATIONS.............................................5 G. OUTLET DENSITY AND LOCATION RESTRICTIONS.............................5 H. STATE MARIJUANA TAX REVENUE LAWS...........................................6 I. SCHOOL POLICIES................................................................................6 J. IMPAIRED DRIVING...............................................................................7

II. LESSONS LEARNED........................................................................................7 A. ALASKA................................................................................................7 B. COLORADO.........................................................................................8 C. WASHINGTON.....................................................................................9 D. IMPACTS ON LOW-INCOME NEIGHBORHOODS AND INDIVIDUALS........................................................................................9 E. MEDICAL SECTOR................................................................................9 F. HEALTH CONSEQUENCES OF MARIJUANA......................................10 G. CALLS FOR EMERGENCY SERVICES.................................................10 H. DOMESTIC VIOLENCE.......................................................................11 I. WORKFORCE CHANGES.....................................................................11

ENDNOTES.......................................................................................................13

While many states have legalized the medical and/or recreational use of marijuana, the use and distribution of marijuana is still illegal under federal law. This conflict creates a patchwork of information that is complicated to navigate. Yet, now more than ever, it is essential to understand and educate the public on the facts about marijuana and implement smart laws that are focused on public health. Additionally, there are lessons we can learn from states that have legalized the

substance to understand its impacts and inform decisions in North Carolina.

I. CURRENT LAWS GOVERNING MARIJUANA

A. Definitions

The word "cannabis" refers "to all products derived from the plant Cannabis sativa." Cannabis plants are comprised of approximately 540 chemical substances.1 The word "marijuana" refers to "parts of or products from the plant Cannabis sativa that contain substantial amounts of tetrahydrocannabinol (THC)."2 THC is the substance that is primarily responsible for the altered effects of marijuana on a person's mental state.3 Cannabis products that contain low concentrations of THC (i.e., 0.3 percent or less on a dry weight basis) are considered "industrial hemp" rather than marijuana under federal law.4 As used in this paper, "cannabis" and "marijuana" do not refer to prescription drugs that contain cannabis or are cannabis-derived and have been approved by the U.S. Food and Drug Administration (FDA).

The term "legalization" means eliminating legal bans on marijuana use so that adults may purchase and use it at will, subject to certain restrictions such as age and possession limits, similar to regulation of tobacco and alcohol products.5 The term "decriminalization" means that marijuana is illegal; however, an individual would not be prosecuted for possessing a certain amount or less of marijuana.6 Instead of the prosecution, the individual may face minor civil fines or may be required to obtain drug education or treatment.7

B. Federal vs. State Laws

Under the federal Controlled Substances Act, marijuana and THC are considered schedule I controlled substances, which means that they have a high potential for abuse and do not have a currently accepted medical use.8 It is illegal under federal law to manufacture, distribute, dispense, or possess schedule I products.9

Nevertheless, states have enacted their own laws to allow for varying degrees of marijuana manufacture, distribution, dispensation, and possession. While this has led to a patchwork of differing state laws, such laws typically fall into five categories:

? Complete prohibition on marijuana use

? Permitted use if the product contains cannabidiol (CBD) and contains low

concentration levels of THC

? Permitted for "medical" purposes

? Decriminalized

? Legalized

In states that have legalized only products containing low concentrations of THC, permitted THC levels vary by state. For example, levels of THC must be below 0.3 percent in Alabama, below 0.8 percent in Florida, and below 5 percent THC in Georgia.10 These laws also require the product to contain CBD.11 CBD is a cannabinoid derived from hemp (cannabis products containing 0.3 percent THC or less) or marijuana (cannabis products containing more than 0.3 percent of THC) or a synthetic version of such cannabinoid. Alaska, Colorado, and Washington

are examples of states that have legalized medical and recreational marijuana. In 2014, Alaska legalized adult use marijuana, which became effective in February 2015.12 The law allowed adults ages 21 and older to possess and use limited amounts of marijuana products.13 Alaska's marijuana retail sales began in October 2016.14 In 2012, Colorado passed Amendment 64, which allowed the possession of marijuana by adults ages 21 and older and required the state to establish a regulatory structure for the retail sale of marijuana.15 Also in 2012, Washington state approved Initiative 502, which allowed adults to possess up to one ounce of marijuana obtained from a state-licensed and regulated marijuana retailer.16 The laws and regulations governing marijuana vary in these and other states that have legalized it. Specific legal provisions governing legalized marijuana will be explored in this document.

C. Oversight Entity

In states that have legalized marijuana, a single regulatory authority typically has oversight over both adult use and medical marijuana.17 For example, the Alaska Marijuana Control Board has oversight authority to enforce the laws and regulations governing the cultivation, manufacture, sale, and testing of marijuana in the state.18 The Board also serves as a quasijudicial agency. The Colorado Department of Revenue, Marijuana Enforcement Division (MED) and local licensing authorities have joint oversight authority over facilities that sell, cultivate, manufacture, and test marijuana both for medical and adult use.19 The Washington State Liquor and Cannabis Board (WSLCB) regulates use of marijuana.20 WSLCB Enforcement and Education Division is responsible for enforcing marijuana laws and regulations. Enforcement officers are limited-authority, commissioned law enforcement officers.21

D. Producer and Processor Laws

States that have legalized marijuana also tend to have robust regulatory schemes governing the growth of marijuana plants and the production of marijuana product within their states. For example, in Alaska, only state-licensed "cultivators" may plant, propagate, cultivate, harvest, trim, dry, cure, package, or label marijuana" for sale to a marijuana establishment.22 Cultivation is subject to certain regulatory standards, such as sending a sample of each harvested batch to a testing facility for testing required under Alaska law.23 In order to extract marijuana concentrate for sale or formulate or manufacture any marijuana product for sale in Alaska, a person must obtain a marijuana product manufacturing license from the Marijuana Control Board.24

In Colorado, any person who seeks to cultivate or manufacture marijuana must obtain a license from the State Licensing Authority, approval from the relevant local jurisdiction or jurisdictions, and potentially an additional license by the local licensing authority (i.e., authority designated by municipal, county, or city and county regulations), depending upon the rules of the local jurisdiction.25 Colorado has two general types of cultivation and manufacturing licenses, one for medical and one for recreational use.26 Each of these categories contains additional subcategories of licenses, which allow the cultivation of a certain number of plants established by the board.27

In Washington, only state-licensed "producers" may "produce, harvest, trim, dry, cure, and package marijuana" for wholesale to other licensed producers or state-licensed "processors."28 Likewise, only state-licensed processors may "process, dry, cure, package, and label usable marijuana, marijuana concentrates, and marijuana-infused products" for wholesale to other state-licensed processors or to marijuana retailers.29 Producers and processors must follow certain standards related to safety and quality, such as limitations on the types of pesticides and fertilizers that may be used,30 and requirements to send marijuana and marijuana product samples to an accredited laboratory for quality testing.31

E. Sales and Purchase Laws

States that have legalized marijuana also regulate the sale and purchase of marijuana products. For example, in Alaska, a marijuana establishment may not operate in the state unless it has obtained a retail marijuana store license from the Marijuana Control Board.32 A licensed retail marijuana store is only authorized to sell marijuana purchased from a licensed marijuana cultivation facility or marijuana product manufacturing facility, packaged and labeled as required by the Board, to an individual on the retail premises for consumption off the premises.33 A retail marijuana store may not sell to any one person per day (1) more than one ounce of usable marijuana; (2) more than seven grams of marijuana concentrate for inhalation; or (3) more than 5,600 milligrams of THC in combined sales of marijuana.34 An individual or entity who holds a license for a retail marijuana store may also apply for a marijuana cultivation facility license, marijuana product manufacturing facility license, or both.35

Additionally, a retail marijuana store in Alaska may not sell (1) to a person under 21 years of age; (2) to a person that is under the influence of an alcoholic beverage, inhalant, or controlled substance; or (3) over the Internet. The Marijuana Control Board has identified and approved twelve handler permit training courses to ensure that retailers and their employees are properly trained on these and other requirements.36 A licensed retail marijuana store may only sell marijuana or a marijuana product to a consumer who is physically present on the licensed premises.37 A licensed retail marijuana store may not (1) conduct business between the hours of 5:00 a.m. and 8:00 a.m. each day; (2) offer a consumer, as a marketing promotion or for any other reason, free marijuana or marijuana product, including a sample or allow intoxicated persons to enter or to remain on the licensed premises.38

In Colorado, any person who seeks to dispense, transfer, transport, offer to sell, or test marijuana must obtain a license from the State Licensing Authority, approval from the relevant local jurisdiction or jurisdictions, and potentially an additional license by the local licensing authority (i.e., authority designated by municipal, county, or city and county regulations), depending upon the rules of the local jurisdiction.39 Different licenses are also required depending upon whether the seller is a medical marijuana store or retail marijuana store.40 Anyone entering a Limited Access Area (i.e., an area within a licensed premises where regulated marijuana is grown, cultivated, manufactured, stored, weighed, packaged, sold, possessed for sale, transferred, or processed for transfer) must obtain a visitor identification badge and must be escorted by licensed personnel at all times.41 Only five visitors may be escorted by a single employee.42 The Licensee must maintain a log of all visitors' identities, and all visitors must be at least 21 years old.43 While licensees are not required to document what visitors purchase, the visitor log requirement is intended to ensure that customers are not attempting to purchase more than the legal limit in one day.44 Colorado also regulates businesses' hours of operation, security, sanitation, and waste.45

Finally, in Washington, only those with a marijuana retailer license issued by the WSLCB may sell usable marijuana and marijuana products to individuals 21 year of age and older. Under certain conditions, retail licensees may obtain a medical marijuana endorsement to sell to individuals under the age of 21 who are legally authorized to purchase and use marijuana for medical purposes.46 Other regulations related to the sale and purchase of marijuana include provisions on required notices and signage, hours of operation, storage and security, waste, and recordkeeping.47

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