Stateways

StateWays - May/June 2017

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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StateWays | www.stateways.com | May/June 2017 41 A s more states legalize recreational marijuana, re- sponsibility for overseeing these new markets has gone to beverage-alcohol regulators. Alcohol control boards already are familiar with distribu- tion and sales of a controlled substance, and promoting public safety. Couldn't these same rules and systems translate to reg- ulating legal cannabis? It's not so simple. Differences between cannabis and alcohol make it difficult to replicate regulations. Marijuana requires additional agricul- tural responsibilities. And as a federally illegal drug, it brings issues with banks and financing. "If you think you can simply extrapolate alcohol regulatory systems onto cannabis, you could be setting yourself up for un- intended consequences down the road," warns Steve Schmidt, NABCA Sr. VP of Public Policy & Communications. "There's going to be unknowns," he adds. "We don't have decades and decades of experience to know how to approach it, like we do with alcohol." Still, for states that legalize pot, alcohol regulators remain a natural choice to oversee cannabis markets. These officials have the experience necessary to craft safe and effective systems for this budding industry — so long as they understand fully their new responsibilities. AGRICULTURAL COMMODITY When alcohol arrives at a warehouse, it's typically al- ready sealed in packaging. For cannabis, that's not always the case. Some growers in Oregon, for instance, do not have room or resources to dry, trim and treat their product. State employees must pick up and finish it. "Marijuana is more of an agricultural commodity, and you need to act more like an agricultural broker," says Jesse Sweet, director of administrative policy and process, Oregon Liquor Control Commission. "It isn't as simple as the wholesale pick- ing up of a product and then taking it from point A to point B." Speaking at the 2017 NABCA Legal Symposium, Sweet said that "70 to 80 percent" of his time is now dedicated to cannabis control. "You can't just toss it on the back of the beer truck," he says. "There are specific needs for temperature, and for more security because there's so much cash involved." Controlling Cannabis WHAT ALCOHOL CONTROL BOARDS SHOULD KNOW ABOUT LEGAL POT by KYLE SWARTZ

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