Lecture 1
THE MARIJUANA INDUSTRY
INTRODUCTION
WHAT IS MARIJUANA?
Marijuana is the common name for Cannabis.
There are two different species of Marijuana:
SATIVA
INDICA
WHAT IS MARIJUANA?
Compounds found in Marijuana:
o Phytocannabinoids (i.e. THC)
o Terpenoids
MARIJUANA STATISTICS
According to the World Health Organization, marijuana is the most widely cultivated, trafficked, and abused illicit drug in the
world. Half of all drug seizures around the globe are in fact marijuana seizures.
Global USE
USA MARKET
USA MARKET
schedule
#3
$34
1
billion
3.8% Of all humans
158.8 Million Marijuana Users
158.8 Million people around the
world use Marijuana. That’s 3.8%
of all humans across the entire
planet.
Marijuana is the 3rd most
popular recreational drug in
America, after alcohol &
tobacco.
In 2006, marijuana
accounted for $34 billion
in total spending on illegal
drugs worldwide.
Classified as a Schedule 1
controlled substance in the
U.S. meaning it has no
medicinal qualities.
MARIJUANA USES
Recreational Use
Promote feelings of relaxation and euphoria.
No medically derived benefits from recreational use.
Medical use
Several proposed medical benefits from medical use:
o
o
o
o
o
o
o
o
o
o
o
o
o
Nausea (i.e. from Chemotherapy)
Chronic pain
Eating Disorders
Sleep Disorders
AIDS pain relief
Cancer pain relief
Migraine
Fibromyalgia
Multiple sclerosis
Gastrointestinal disease
Anxiety
Depression
Bipolar Disorder and Schizophrenia
MARIJUANA SIDE EFFECTS
o
Psychosis and Schizophrenia
o
Decreased IQ and Cognition
o
Slower reaction time
o
Memory difficulties
o
Dizziness
o
Dry Mouth
o
Increased heart rate (tachycardia)
Now it’s time to learn about
THE HISTORY OF MARIJUANA
MARIJUANA LEGAL HISTORY
1500BC-1000BC
China
The earliest reference to cannabis and its use
as a medicine is in a Chinese treatise, called
Shen-nung pen ts'ao pei yao i fang ho pien
(Herbal and Prescriptions) China, 1740. 6 vols.
MARIJUANA LEGAL HISTORY
1500BC-1000BC
India
An Indian legend states that the “Siddhartha”
(the Buddha), used and ate nothing but hemp
seeds for 6 years prior to discovering his truth
and becoming the Buddha.
MARIJUANA LEGAL HISTORY
1500BC-1000BC
Bhang
Bhang is still being made in India today and
consumed during Hindu religious ceremonies.
MARIJUANA LEGAL HISTORY
1600 – Mid 1800s
America
Page from George Washington’s diary (1765)
indicated that he was growing Cannabis with a
high THC content.
“Put some Hemp into the Water about 7
Oclock in the Afternoon-note this Hemp had
been pulled the 8th. Instt, & was well dryed &
took it out again the 26th.”
MARIJUANA LEGAL HISTORY
1600 – Mid 1800s
America
Page from Thomas Jefferson’s Farm Book
(1774-1824) diary indicated that he was
cultivating hemp plants.
MARIJUANA LEGAL HISTORY
1600 – Mid 1800s
America
Page 50 of the 1851 US Pharmacopeia
MARIJUANA LEGAL HISTORY
1600 – Mid 1800s
America
Label for Piso’s Cure, a cannabis-based
medicine, after the passage of the 1906 Pure
Food and Drug Act.
MARIJUANA LEGAL HISTORY
1900 – 1930’s
Propaganda
The early 1900’s marked the start of a
sensationalized anti-marijuana propaganda
effort.
MARIJUANA LEGAL HISTORY
1900 – 1930’s
Propaganda
“Reefer Madness” film is released.
MARIJUANA LEGAL HISTORY
1930 – 1950’s
New anti-marijuana legislation
o
o
o
o
Marihuana Tax Act (1937)
The Boggs Act (1951)
Narcotics Control Act (1956)
Marihuana removed from the US
Pharmacopeia (1942)
New marijuana research and support
o
o
American Medical Association (AMA)
La Guardia Report and New York
Academy of Medicine (1938)
MARIJUANA LEGAL HISTORY
1960s
Hippies
A hippies counterculture emerges around
Marijuana.
MARIJUANA LEGAL HISTORY
1970s
The Controlled Substance Act
o
Schedule I Classification
Nixon and the War on drugs
o
Schaeffer Commission
New federal departments
o
o
President Nixon had a meeting with
Elvis Presley, who sought to be
appointed as a Federal Agent-at-Large
in the US Bureau of Narcotics and
Dangerous Drugs, in 1970
Drug Enforcement Agency (1973)
National Institute on Drug Abuse; NIDA
(1974)
MARIJUANA LEGAL HISTORY
1980s
Conservative movement of 1980’s
o
o
o
Parents
NIDA
DEA
Reagan and anti-drug abuse act (1986)
o
o
Mandatory sentences
“Three Strikes and You’re Out”
President Bush
o
New War on Drugs
MARIJUANA LEGAL HISTORY
1990s
Research Begins
Substantial gains made in medical marijuana
research in the 1990’s. A schema of how
cannabis works in the human brain and body
emerges.
MARIJUANA LEGAL HISTORY
1990s
California prop. 215
A California couple who advocated for the
passage of Prop. 215 which was approved by
56% of California voters in 1996.
MARIJUANA LEGAL HISTORY
1990s
Calls for change begin
The New England Journal of Medicine
published an editorial calling for Marijuana to
be rescheduled in 1997.
MARIJUANA LEGAL HISTORY
1990s
New research begins
The Institute of Medicine (IOM) conducted a
comprehensive study on the medical effects of
Marijuana (1997 – 1999)
MARIJUANA PRESENT LEGALITY
International
Illegal in most countries, but decriminalized in:
o
o
o
North America
South America
Europe
Uruguay is the only country in the world to
fully legalize marijuana.
Global herbal seizures have increased, mainly
in US and Mexico.
MARIJUANA PRESENT LEGALITY
United States
United states
Possession of Marijuana (medical and
recreational) illegal in the U.S.
20 states + D.C. have legalized the use of
medical Marijuana.
Colorado and Washington are the only states
with legalized recreational use of Marijuana.
MARIJUANA PRESENT LEGALITY
United States
Split between Federal and State Governments over Medical Marijuana Policy
FEDERAL
STATE
Examples:
o
o
o
California
Nevada
Colorado
MARIJUANA STATE OF LAW
California
o
First state to legalize medical marijuana under
Ballot Proposition 215 (compassionate Use
Act), passed in 1996.
o
Senate Bill 420 (2004) – Patients can possess
only up to 8 oz. dried marijuana and/or six
mature (or 12 immature) plants, unless larger
amounts were recommended by a physician.
o
California Supreme Court (2010) ruled that
growing more than 6 mature or 12 immature
plants is still subject to arrest and prosecution,
but medical necessity defence can be used in
court.
MARIJUANA STATE OF LAW
California
Medical Marijuana Identification Card (MMIC)
o
California Dept. of Public Health established
Medical Marijuana Program (MMP) in 2005.
o
Total MMIC’s Issued till date – 74,604 across
56 counties.
o
MMIC protects cardholder under provisions of
Prop 215 and SB 420 and helps law
enforcement identify persons allowed to legally
posses medical marijuana.
o
MMP does not have jurisdiction over medical
marijuana cooperatives, collectives or
dispensaries.
MARIJUANA STATE OF LAW
California
Approved “Serious Medical Conditions”
o
o
o
o
o
o
o
o
o
o
o
o
o
o
AIDS
Anorexia
Arthritis
Cachexia
Cancer
Chronic pain
Glaucoma,
Migraine
Muscle spasms
Multiple Sclerosis,
Seizures
Epilepsy,
Severe nausea;
Other chronic or persistent medical symptoms.
MARIJUANA STATE OF LAW
Nevada
o
Ballot Question 9 approved in 2000 by 65% voters
for medical marijuana use.
o
Assembly Bill 453 and Senate Bill 374 together
allowed formation of Nevada Medical Marijuana
Program comprising of Medical Marijuana
Cardholders and Medical Marijuana Establishments
(MME)
o
Marijuana Registry card allows one half ounces of
usable marijuana in any one 14 day period.
o
Twelve mature or immature plants.
MARIJUANA STATE OF LAW
Nevada
Approved “Medical Conditions”
o AIDS
o Cancer
o Glaucoma
o
Any medical condition or treatment to a
medical condition that produces
cachexia, persistent muscle spasms or
seizures, severe nausea or pain, and PTSD
o
o
o
o
o
Conditional release
Decriminalization
Drugged driving
Minimum sentence
Tax Stamp Law
MARIJUANA STATE OF LAW
Nevada
Tourism boost!
o
The only state to accept out-of-state medical
marijuana cards.
o
Petition to legalize recreational marijuana use filed
in April 2014 – 101,667 signatures needed by Nov
11, 2014 to put petition to change state law in
2016 elections.
MARIJUANA STATE OF LAW
Nevada
o
Among the first state to license and regulate
possession, production and distribution for
persons over 21 years of age.
o
Green Wednesday - First Official Stores for Pot
Buyers opened on Jan. 1, 2014.
o
On June 6, 2014, legislation signed to establish
world’s first financial system for cash-only
marijuana industry - Pending Federal approval.
MARIJUANA STATE OF LAW
Nevada
With power comes responsibility!!!
o
Must be at least 21 years old.
o
Must be licensed to sell.
o
Illegal to consume in public.
o
Illegal to give or sell retail marijuana to minors.
o
Illegal to drive on a high.
o
Tourism encouraged – But Illegal to carry out-ofstate.
MARIJUANA STATE OF LAW
Nevada
o
DEA denies request to reclassify marijuana (2011)
o
Federal Judge dismisses lawsuit against
government for its raids on medical marijuana
clinics (2012)
o
US Appeals Court denies medical marijuana
reclassification challenge (2013)
o
BUT: New federal guidelines allow banks to
provide financial services to legal marijuana sellers
(2014)
MARIJUANA STATE OF LAW
Nevada
o
Even though states have legalized marijuana for
medical and/or recreational use, marijuana is still
illegal according to US Federal Law
o
Department of Justice (DOJ) and Ogden Memo
o
Justice Department will not challenge state
marijuana laws (2009)
ILLEGAL MARIJUANA DRUG
TRADE
Seizures of Cannabis Plants
Europe
South America
3%
10%
Asia
6%
Africa
11%
North America
70%
COST OF MARIJUANA’S ILLICIT
STATUS
o
Loss of potential sales tax: $31.1 Billion/year.
o
Marijuana arrests cost taxpayers $107.7 Billion
annually.
Government Savings With
Legalization Of Drugs:
o
$41.3 Billion
o
o
$25.7 Billion to state and local governments.
$15.6 Billion to the federal government.
$8.7 Billion from Marijuana.