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 43 "Both states acted as they did because they thought their way was necessary for compliance," says Sweet of Oregon. Washington still bans vertical integration. Retailer and pro- ducer licenses cannot be owned by the same person. In 2014 Colorado ditched its so-called 70/30 mandate, but still allows retailers to grow their own product (rather than requiring it). California, which legalized recreational pot last year, forbids vertical integration in its existing medicinal marijuana industry. But the initial law governing the recreational market does not prohibit it. This has sparked a debate that could lead to vertical in- tegration's ban by the time recreational shops open there in 2018. And with California being the world's largest cannabis economy, how the state handles its tiered system could define such setups for all other U.S. states. PUBLIC SAFETY For instance, people should know not to consume marijuana while pregnant or nursing. Laws mandating THC and dosage warnings on labels are also critical. States that have legalized have undertaken proactive educa- tion. Washington disseminates pamphlets to retailers to hand out to customers. Based on Colorado literature, these guides include reminders about how effects of edibles and infusions can take time to set in. "It's all about being careful when you consume," says the board's director, Rick Garza. Washington also enforces maximum THC rules. No product can contain more than 100 milligrams of THC, nor can a single serving surpass 10 milligrams. Oregon is even stricter. It allows only 50 and 5 milligrams per product and serving, respectively. Garza says that rules minimizing potency are important to help consumers take it slow: "If you've been consuming canna- bis for many years, then your tolerance will obviously be very high. But many people are new to this now that it's legal, which makes their tolerance a problem," he says. Among the trickier regulatory issues is determining whether drivers are intoxicated with marijuana. Blood tests detect THC too far back into a user's past for effective day-of enforcement. And contemporary mouth swabs are functionally insufficient. Garza says that several major universities are currently de- veloping better swabs. Until then, consumers who drive while stoned remain a dangerous problem without a definite answer. Washington (unlike Colorado) set strict laws against prod- ucts that could unintentionally appeal to children. Nothing with THC can mimic anything a kid might think to consume. This means no candies or bright colors. "We have a 92% compliance rate with keeping cannabis out of the hands of kids," Garza says. "That's higher than with alcohol." DANGEROUS COMBINATION One issue of particular concern to Schmidt and NABCA is the simultaneous consumption of marijuana and alcohol. Someone who drinks would assumedly be open to mari- juana. And legalization will likely raise the odds that more peo- ple consume both at once. "We don't know yet about the potential impact of us now legally providing both products," Schmidt says. "What's the impact on the user? What's the impact on public health and public safety?" In the meantime, Schmidt worries that legal sales of both products will "normalize" the act of mixing them. Simultane- ous consumption can exacerbate the harmful effects of both substances — especially when driving. "What does this mean for the bartender?" Schmidt poses. "They're trained not to over-serve someone alcohol, but now they have to look for someone exhibiting completely different signs. Are we prepared for that?" Recreational marijuana is here to stay. And govern- ment-controlled markets are primed to reap many millions in annual profits. "Why go elsewhere to buy cannabis other than a state-con- trolled retail store, where you know that the product has been tested for pesticides and labeled correctly," says Garza. "When you buy on the black market, you don't know that." • SIGN UP FOR CANNABIS REGULATOR StateWays' parent company recently launched a weekly email newsletter called Cannabis Regulator. The new publication educates regulatory agencies about the legal marijuana industry through informative features, critical data and pertinent news stories. It will not sell subscribers' names or contacts, and will not advertise cannabis prod- ucts. It is intended to provide government and other officials with resources to navigate the ever-evolving cannabis busi- ness. Visit www.CannabisRegulator.com to subscribe.

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