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The Cannabis Anti-Monopoly Toolkit – The Good, the Bad, the Ugly
Anti-Monopoly Toolkit Analysis – The Good, The Bad, the Ugly
The journey of cannabis throughout human history has been nothing short of remarkable. For millennia, this versatile plant has played an integral role in the development of societies, serving as a source of medicine, textiles, and recreational enjoyment. However, during the 20th century, cannabis fell victim to a global prohibition that was primarily driven by dubious reasons and political agendas. Fast-forward to the present day, and we see the resurgence of cannabis acceptance, as it transforms into a multi-billion dollar industry with a growing global footprint.
The cannabis industry, which once had deep roots in the counterculture and grassroots activism, now finds itself entangled with “money bros” eager to dominate the market. As a result, we see the emergence of cannabis brands that prioritize profit over principles, often exploiting the plant’s newfound legal status to line their pockets. This trend has raised concerns about a few powerful companies monopolizing the industry, stifling competition, and undermining the values that once defined the cannabis community.
In response to these concerns, anti-monopoly policies are being proposed to ensure a more equitable and diverse market for all stakeholders. One such proposal is the “Anti-Monopoly Toolkit,” recently released by the Parabola Center for Law and Policy and covered in MarijuanaMoment. In this article, we will analyze this toolkit and its implications for the future of the cannabis industry, as we strive to create a space that reflects the original ethos of the plant and the people who fought for its legalization.
The Parabola Center for Law and Policy, a nonprofit organization focused on advancing equity-centered reform, has released the “Anti-Monopoly Toolkit” to help lawmakers and advocates effectively prevent the monopolization of the marijuana industry. This toolkit serves as a guide for reform efforts, outlining state and federal policy priorities to protect small cannabis businesses from corporatization and consolidation. By doing so, it aims to preserve the diversity and fairness of the cannabis market.
Apart from providing an overview of the policy priorities, the toolkit also offers practical advocacy advice on communicating concerns with policymakers and raising awareness about the potential consequences of allowing large marijuana companies to dominate the market. The document is intended for both policymakers and those interested in advocating for fair cannabis markets that prioritize people over profits.
Key highlights from the toolkit include:
The importance of setting caps on the number of marijuana business licenses, shops, and canopy space that any one person or entity can obtain. Policies should focus on individual ownership limits rather than capping licensing overall.
The risk of major technology platforms dominating the market and inhibiting competition by promoting select brands within their networks.
A recommendation against allowing vertical integration, where a single business operates at multiple steps of the supply chain, except for microbusiness licensees.
Strong opposition to excluding individuals with prior drug convictions from participating in the legal market, while recommending that corporations with established patterns of harmful conduct be barred.
Encouragement for people to organize and send sign-on letters to policymakers to demonstrate solidarity around anti-monopoly priorities.
The importance of advocating for the right of people to grow their own cannabis in any legalization legislation.
The toolkit acknowledges that not every policy is suitable for every community, and its goal is to raise awareness of important policy considerations often overlooked in conversations around legalization. The Parabola Center has been involved in other policy efforts, including direct engagement with congressional lawmakers and proposing changes to a House-passed federal marijuana legalization bill to ensure an equitable and empowering market for communities most affected by prohibition.
This toolkit is a significant step towards addressing the growing concerns of monopolization in the cannabis industry, aiming to preserve the original values of the movement and promote a diverse, equitable market for all.
The question is, where does it fail to provide equitable rights to all and is this truly going to help keep the playing field level?
The Anti-Monopoly Toolkit released by the Parabola Center for Law and Policy brings several positive aspects to the table, aimed at maintaining fairness, diversity, and equity within the burgeoning cannabis market. By providing a comprehensive guide for lawmakers and advocates, the toolkit empowers individuals and small businesses in the industry and can potentially lead to a more inclusive and competitive market.
One of the key strengths of the toolkit is its focus on limiting the influence of large corporations in the cannabis industry. By setting caps on the number of licenses, shops, and canopy spaces that any one person or entity can obtain, the toolkit promotes a level playing field, allowing smaller businesses to compete effectively. This approach prevents the concentration of power and resources in the hands of a few corporations, fostering a diverse ecosystem of businesses that cater to various consumer needs.
The toolkit also addresses the potential pitfalls of allowing major technology platforms to dominate the market. By highlighting the risks associated with these platforms promoting select brands within their networks, the toolkit emphasizes the need for a fair and open marketplace. This empowers individual businesses to reach their target audience without being overshadowed by large corporations with deep pockets.
In addition to these measures, the toolkit takes a stand against vertical integration, which can lead to monopolies controlling multiple steps of the supply chain. By recommending exceptions for microbusiness licensees, the toolkit allows small businesses to thrive and maintain their competitive edge in the market.
One of the most empowering aspects of the toolkit is its support for individuals with prior drug convictions. By advocating for their inclusion in the legal market, the toolkit promotes social equity and offers these individuals a chance to rebuild their lives and contribute positively to society.
Furthermore, the toolkit encourages public involvement by urging people to send sign-on letters to policymakers, demonstrating solidarity around anti-monopoly priorities. This not only empowers individuals to actively participate in the policy-making process but also sends a strong message to lawmakers about the importance of preserving a diverse and equitable cannabis market.
Lastly, the toolkit champions the right to grow one’s own cannabis in any legalization legislation, enabling individuals to have control over their consumption and reducing their dependence on large corporations for cannabis products.
Overall, the Anti-Monopoly Toolkit positively impacts the cannabis market by promoting diversity, equity, and competition. By empowering individuals and small businesses, the toolkit ensures that the original values of the cannabis movement are preserved and that the market remains a vibrant and inclusive space for all players.
While the Anti-Monopoly Toolkit offers several commendable measures to promote equity, diversity, and competition in the cannabis industry, there are potential downsides that could negatively impact the industry, individuals, and society as a whole.
Firstly, the introduction of caps on licenses, shops, and canopy spaces may inadvertently stifle growth in the industry. While these measures aim to prevent monopolies and promote fair competition, they could potentially hinder the ability of successful businesses to scale and create new job opportunities. Moreover, the restrictions might lead to a slower expansion of the industry and limit the availability of cannabis products to consumers in certain regions.
Secondly, the toolkit’s stance against vertical integration could have unintended consequences. While vertical integration can lead to monopolies, it can also bring about cost-efficiencies and streamlined supply chains, ultimately benefiting the consumer through lower prices and consistent product quality. By discouraging vertical integration, the toolkit might inadvertently create an environment in which prices remain high, making it difficult for some consumers to access cannabis products affordably.
Another potential downside of the toolkit is that its provisions may lead to increased regulatory complexity. As more rules and regulations are implemented, compliance costs for businesses may rise, inadvertently placing a burden on smaller operators who may not have the resources to navigate the increasingly complicated landscape. This could ultimately undermine the goal of promoting equity and diversity in the industry.
Additionally, the toolkit’s focus on anti-monopoly measures might divert attention away from other pressing issues, such as public health and safety, research, and education. While anti-monopoly policies are important, addressing other aspects of legalization and regulation should also be prioritized to ensure the well-being of society as a whole.
The Anti-Monopoly Toolkit, while well-intentioned, might have unintended negative consequences for the cannabis industry, individuals, and society. It is crucial for lawmakers and advocates to strike a delicate balance between preventing monopolies and fostering a thriving, accessible, and well-regulated cannabis market that serves the needs of all stakeholders.
The Ugly
In a theoretical scenario where the ideas from the Anti-Monopoly Toolkit are manipulated to ruin the industry or benefit only a few individuals, several potential outcomes could arise. Major corporations and opportunistic entities may find ways to exploit the toolkit’s provisions to their advantage, effectively undermining the core objectives of the policy.
One possibility is that larger corporations could use the licensing caps to their advantage by lobbying for the issuance of a limited number of licenses, while simultaneously working to secure a majority of them. This would allow these corporations to dominate the market and create barriers to entry for smaller players, ultimately defeating the purpose of the licensing caps.
Another potential concern is that major corporations could exploit the prohibition of vertical integration by engaging in indirect control of the supply chain. For instance, they could establish exclusive contracts with various suppliers, processors, and retailers, effectively gaining control over the entire supply chain without formally owning the different components. This would allow them to monopolize the market while technically adhering to the toolkit’s recommendations.
Furthermore, large corporations may capitalize on the increased regulatory complexity resulting from the toolkit’s provisions. By leveraging their financial resources and legal expertise, they can navigate the complex regulatory landscape more effectively than smaller businesses. This could result in small businesses struggling to compete, leading to the same monopolization and lack of diversity the toolkit aims to prevent.
Additionally, major corporations could exploit the toolkit’s focus on anti-monopoly measures by presenting themselves as champions of the cause, all while engaging in anti-competitive practices behind the scenes. This could include predatory pricing, collusion, or acquisition of smaller competitors, ultimately consolidating market power and stifling competition.
In summary, the Anti-Monopoly Toolkit, if misused or circumvented by large corporations, could lead to the very outcomes it seeks to prevent. It is crucial for policymakers and industry stakeholders to remain vigilant against such possibilities and continually review and adapt regulations to ensure a fair, competitive, and thriving cannabis market for all.
How to Fix Equity?
In order to create a more equitable and decentralized cannabis market, a two-tier system could be the key to striking a balance between small-scale, local businesses and larger corporations. This system would provide an accessible entry point for individual entrepreneurs and mom-and-pop operations while maintaining appropriate regulatory oversight for larger entities engaging in interstate and international sales.
The first tier, designed for individuals and small businesses generating less than $1,000,000 in profits annually, would cater to local and state sales only. These businesses would face limited regulation, and licensing fees would be nominal, making it cost-effective for them to enter the market. This approach would create a fertile ground for small-scale operations to establish their foundations, encouraging diversity and competition within the industry.
The second tier, applicable to businesses generating over $1,000,000 in profit annually, would be subject to more stringent regulations and licensing requirements. This corporate tier would allow major retailers to stock products and engage in interstate and international sales. Heavier regulation for these larger businesses would ensure consumer safety, fair competition, and adherence to legal and ethical standards across the industry.
By implementing this two-tier system, the cannabis market could self-regulate in a way that fosters a diverse ecosystem of suppliers, cultivators, and retailers. The first tier would support local economies, promote small business growth, and maintain the unique character of regional cannabis markets. The second tier would accommodate the needs of larger corporations and facilitate the expansion of the cannabis industry on a national and international scale.
This innovative approach to regulation would effectively decentralize the production and sales of cannabis, ensuring that the industry remains competitive, diverse, and accessible to a wide range of entrepreneurs. In turn, this would help to prevent the monopolization of the market, ultimately benefiting consumers through increased choice and a wider range of high-quality products at various price points.
I’ve written on this before, however, I do believe it’s important to sow the seeds of this system as it’s the only way we can have the legalization we all believed we were getting.
MONOPOLIES IN WEED, NO SIR, READ ON…
NO MONOPOLY FOR YOU, MASS GIVES DELIVERY LICENESES TO SE AND EE APPICANTS!
Whether you bought your cannabis or dried it yourself, there’s a good chance it got wet accidently. This might have happened by mistake or because the cannabis was washed purposely to eliminate contaminants and enhance its flavor. Regardless, it’s disheartening to devote time, money, or effort just to wind up with a useless product. But do not worry—there are solutions.
There is a narrow line between slightly moist buds and perfect stickiness, which some people prefer.
If your cannabis squishes when lightly squeezed, it’s likely overly damp. Buds should feel somewhat sticky because to the resin (which contains the cannabinoids), but they should bounce back slightly when squeezed rather than crush.
Wet cannabis may seem sticky, but it will not adhere to your fingertips. You’re seeking for buds with a honey-coated texture, comparable to baklava. If they feel wet or spongy, you have a problem.
Common Issues With Wet Cannabis
Difficult to Light
It’s no surprise that wet cannabis is hard to ignite. If you can’t light it, you can’t smoke it.
Mold Risk
Excess moisture, as explained in *How to Dry and Cure Cannabis*, complicates pot storage and can lead to mold. Smoking moldy cannabis is risky because it contains germs and fungus that can harm your respiratory system and increase your risk of pneumonia.
Bad Taste
If you somehow manage to smoke damp weed, it won’t taste great. It’s like smoking uncured cannabis—definitely not pleasant.
The Risks Of Wet Weed
While smoking wet pot is not always harmful to your health, the length of time the bud remains wet can make a significant effect. A damp atmosphere is ideal for mould, fungus, and bacteria. So, if you keep your cannabis wet for too long, you may get more than you bargained for. Smoking mouldy cannabis can cause headaches, lung issues, and even pneumonia. As a result, if your weed became wet, it is safer to dry it straight away.
Regardless of whatsoever drying method you use, it is critical to examine your marijuana for mold before and after drying. If it has a nasty odor—like leftovers from last week—or if you notice something clearly growing on it, it’s better to toss it away. Now let’s look at what you can do if your marijuana becomes moist.
How to Dry Out Wet Cannabis
To save your damp weed, dry it out with moisture-absorbing ways. Whether you’re a grower who didn’t properly cure it, it got caught in the rain, you inadvertently spilled something on it, or it’s just unusually humid outdoors, there are several reasons why your cannabis may be storing too much moisture. Fortunately, there are several solutions to the problem.
Rice Drying Method
If you’ve ever spilled a drink on your phone, you’re probably familiar with this trick. It turns out uncooked rice isn’t just for saving electronics—it can help with wet weed, too. Place your wet buds in a bowl or bag, then cover them completely with dry rice.
The rice will draw out the excess moisture, helping your buds return to their ideal state. Depending on how wet your weed is, leave it in the rice for at least 24 hours. If it’s still damp when you check, give it another day. Just make sure to seal the container, and let the rice do the work!
Put a Paper Over the Problem
If your marijuana became wet, don’t worry—you can easily repair it with a paper bag. Simply place your moist buds in a closed paper bag and store them somewhere cool and dry. If you have a dehumidifier, now is an excellent time to utilize it. The paper bag circulates air while protecting your blooms from trichome-damaging light.
To increase moisture absorption, wrap your cannabis with paper towels before placing it in the bag. The paper towels will help absorb the extra wetness. Replace the towels and rotate your weed every several hours, checking for mold. This also helps to remove any trapped dampness from the bag.
Revive Your Damp Weed
If you’re a grower, you’re no stranger to the challenges of battling moisture and mold. After a successful harvest, properly curing your buds is essential. The same curing tools can also help remove moisture from buds that have become too damp. If your weed is fully soaked, start with the rice method. But if it’s just a bit moist, try placing a humidipak in your airtight container.
Avoid Cutting Corners
It’s tempting to use heat to hasten the drying process of damp weed. Ultimately, you most likely want to smoke it as soon as possible. It’s important to avoid shortcuts that utilize heat or light, though.
Your weed’s quality can be diminished by using a blow dryer, an oven, or leaving it outside in the sun. Terpenes and cannabinoids are broken down by light and heat, which lessens their taste and efficacy. You might lose strength in the process of gaining time. Furthermore, you run the danger of over-drying your buds, which makes for a harsher, less pleasurable smoke.
Moisture Prevention: Proper Weed Storage
Wet weed can be unpleasant at best, and downright destructive at worst (hello, mold!). While accidents happen, there are steps you can take to prevent excess moisture from ruining your stash. The key is to keep it in the Goldilocks zone—not too wet, not too dry. Freshness starts with proper storage. Keep your cannabis in an airtight container, stored in a cool, dry, and dark place. Simple, right?
Mason jars are a solid option, but for optimal care, consider investing in a specialized container like the CVault. It’s airtight, blocks light, and comes with a humidipak to keep your weed fresh longer. Just avoid plastic baggies—you’re a cannabis enthusiast, and dime bags are a thing of the past.
Bottom Line
If your cannabis gets wet, it’s crucial to act quickly to dry it out to avoid mold and maintain quality. Use methods like the rice drying technique or paper bag with paper towels to absorb moisture. Avoid using heat sources as they can degrade the weed’s quality. Proper storage in airtight containers and maintaining a cool, dry environment will help prevent future moisture issues. Always check for mold and other contaminants before consuming. By following these steps, you can preserve your cannabis’s flavor and potency.
GOT SOME WEED WEED, READ ON…
The legalization of cannabis has transformed the economic landscape of many states across the United States. New federal data reveals that since 2021, states have collectively collected over $8.7 billion in marijuana taxes. This figure not only highlights the financial potential of legalized cannabis but also reflects changing public attitudes toward marijuana use and its regulation. As more states embrace legalization, understanding the implications of this revenue generation becomes crucial for policymakers, businesses, and communities alike.
The Landscape of Cannabis Legalization in the U.S.
The journey toward cannabis legalization in the United States has been long and complex. Cannabis was criminalized in the early 20th century, with the Marihuana Tax Act of 1937 effectively prohibiting its use and distribution. However, attitudes began to shift in the late 20th century, with California becoming the first state to legalize medical marijuana in 1996.
The momentum continued to build, culminating in Colorado and Washington becoming the first states to legalize recreational marijuana in 2012. Since then, a wave of legalization has swept across the nation, with 21 states and the District of Columbia now allowing recreational use.
Current Legal Status of cannabis legalization in the U.S
As of September 2024, a total of 21 states have legalized recreational marijuana, while a dozen more permit medical use. The regulatory frameworks vary significantly from state to state, influencing tax structures, sales practices, and usage regulations. Some states have opted for high taxes on cannabis sales as a means to generate revenue, while others have focused on creating a more accessible market for consumers.
Tax Revenue Breakdown
Overview of Revenue Generation
According to recent federal data, states have amassed over $8.7 billion in marijuana tax revenue since 2021. This revenue comes from various sources, including excise taxes, sales taxes, and licensing fees imposed on cannabis businesses. The breakdown of this revenue is essential for understanding how different states are capitalizing on legalization.
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Excise Taxes: These are taxes imposed directly on the sale of cannabis products. States like California and Colorado have implemented excise taxes that can range from 15% to 30%, depending on local regulations.
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Licensing Fees: States also collect significant revenue through licensing fees charged to cannabis growers, manufacturers, and retailers. These fees can be substantial and contribute to the overall financial picture.
State Contributions
California: The Leader
California remains at the forefront of marijuana tax revenue generation. Since legalizing recreational cannabis in January 2018, the state has collected over $3 billion in taxes alone. The state’s complex tax structure includes a 15% excise tax on retail sales and additional local taxes that can vary widely by municipality.
The revenue generated has been earmarked for various public services:
Colorado: A Model for Success
Colorado was one of the first states to legalize recreational marijuana and has since become a model for other states looking to implement similar legislation. Since legalization, Colorado has generated over $2 billion in tax revenue from cannabis sales.
The state’s tax structure includes a 15% excise tax on wholesale transactions and a 2.9% state sales tax that applies to all retail sales. Local jurisdictions can impose additional taxes as well.
Colorado has utilized its cannabis tax revenue for various purposes:
Illinois: Rapid Growth
Illinois is another state that has seen rapid growth in marijuana tax revenue since legalizing recreational use in January 2020. In just over three years, Illinois has collected more than $1 billion in cannabis taxes.
The state imposes a tiered excise tax based on THC content:
Illinois has directed its cannabis revenue toward social equity programs aimed at addressing historical injustices related to drug enforcement policies.
Economic Impact Beyond Tax Revenue
Legalizing marijuana has led to substantial job growth across various sectors. As of early 2024, nearly 15,000 cannabis dispensaries operate in the U.S., employing an estimated 93,000 workers. This includes roles in cultivation, processing, distribution, and retail. Additionally, the industry stimulates job creation in ancillary sectors like software development, accounting, and construction. The cannabis sector is projected to grow further, potentially increasing legal cannabis jobs by 250% over the next decade.
The burgeoning cannabis industry presents numerous business opportunities for entrepreneurs. The market has attracted significant investment, leading to the establishment of various businesses ranging from cultivation facilities to dispensaries and ancillary services. In 2022, consumers spent approximately $30 billion on legal marijuana products, surpassing expenditures on chocolate and craft beer. This consumer spending not only benefits cannabis businesses but also generates substantial tax revenue for states.
Cannabis tax revenue often supports local communities by funding essential services. For instance, Colorado has allocated millions from cannabis taxes toward education and homelessness services. This redistribution of wealth enhances community welfare and infrastructure.
Legalization also reduces the costs associated with enforcing drug laws. States can reallocate funds previously used for law enforcement to other community programs, further amplifying the positive economic impacts.
Long-term Economic Growth
As the cannabis industry matures, it is expected to contribute significantly to overall economic growth. Projections indicate that the total economic impact of the cannabis industry could reach nearly $150 billion by 2026, underscoring its potential as a major economic driver in the U.S.
Community Benefits
Beyond economic metrics, communities are experiencing benefits from legalized marijuana:
Challenges Ahead
Despite the positive economic impacts associated with marijuana legalization, several challenges remain:
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Federal Regulations
One significant hurdle is the ongoing federal prohibition of marijuana. While many states have legalized its use, cannabis remains classified as a Schedule I substance under federal law. This creates complications for banking and taxation:
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Social Equity Concerns
As states continue to generate substantial revenues from legalized marijuana, there is growing concern about social equity:
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Market Saturation
As more states legalize marijuana and existing markets expand, there is potential for market saturation:
Prospective Developments
As more states legalize recreational marijuana, tax revenues are expected to continue rising. With 37 states and Washington, D.C., having legalized some form of cannabis by 2024, the potential for increased tax revenue is significant. Experts estimate that nationwide legalization could generate up to $8.5 billion annually for all states. This growth will likely be driven by expanding markets and consumer acceptance, as well as the introduction of new products and services within the cannabis industry.
States are experimenting with various tax structures to optimize revenue while ensuring competitiveness against the illicit market. The adoption of potency-based taxation—taxing products based on THC content—has emerged as a trend in states like New York, Illinois, and Connecticut. This approach aims to create a more equitable tax system that can adapt to market changes and consumer preferences. However, states must remain cautious about overtaxing, which can drive consumers back to illegal markets.
The allocation of marijuana tax revenue will continue to be a critical issue. Many states have earmarked funds for essential services such as education, public health initiatives, and infrastructure improvements. For instance, Colorado has directed substantial portions of its cannabis tax revenue toward school construction and behavioral health programs. As revenues grow, states may face pressure to diversify spending or address social equity issues related to past drug enforcement practices.
As the cannabis market matures, prices may stabilize or decline due to increased competition and efficiency in production. This maturation could result in fluctuating tax revenues as consumer behavior adjusts. States that have seen significant price drops—like Colorado, where prices fell by 60% from 2014 to 2023—may experience challenges in maintaining consistent revenue streams. Policymakers will need to adapt their strategies accordingly.
The ongoing conversation about federal legalization could dramatically impact state revenues. If cannabis were legalized at the federal level, it would open up interstate commerce opportunities and allow cannabis businesses access to traditional banking services. This change could lead to an influx of investment and further stimulate job creation within the industry.
As states continue to collect substantial tax revenues from marijuana sales, there is growing recognition of the need for social equity initiatives. Many advocates argue that a portion of tax revenue should be directed toward communities disproportionately affected by past drug policies. Future developments may include programs aimed at providing grants for minority-owned businesses within the cannabis sector or funding for substance abuse treatment programs.
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Conclusion
The collection of over $8.7 billion in marijuana taxes since 2021 demonstrates not only the financial viability of legalized cannabis but also its potential impact on public services and community development. As more states navigate their paths toward legalization and regulation, it will be crucial for policymakers to address challenges related to equity, access, and federal regulations.
With continued advocacy for reform at both state and federal levels, along with innovative approaches to taxation and regulation, the future looks promising for both consumers and businesses within this burgeoning industry. As society continues adapting its views on cannabis use, understanding these dynamics will be essential for maximizing benefits while minimizing challenges associated with this rapidly evolving sector.
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