Policy Memo Legalize Marijuana in NY State Daniel Hayden, Chava Golding, and Batya Resnick 9103: Baruch College May 2015 Executive Summary Legalize Marijuana in NY State The legalization of marijuana is a hot topic currently facing the country. Like the prohibition of alcohol in the 1920s, a policy that initially had the public support has shifted as more problems are created from policing marijuana than stopped through its ban. Many states are debating whether or not to legalize or decriminalize marijuana. After the successes of legalization efforts in Colorado, Washington, and now Alaska, it is becoming clear that the pros far outweigh the cons and that NY State is ready to legalize marijuana. By crafting a responsible policy that legalizes marijuana, New York will be stemming a rise in the prison state; laws against marijuana are not targeting hardened criminals but rather turning ordinary citizens into criminals. Furthermore, its legalization will be fighting against laws that target racial minorities. Finally, legalizing marijuana makes sense economically and will help create a well regulated industry. The rising numbers of states that have legalized marijuana give New York models to work from. By examining each state’s policy and addressing strengths and weaknesses, New York can adopt responsible legislation. POLICY MEMO To: Governor Cuomo, Senator Lanza, and Senator Dilan From: Daniel Hayden, Chava Golding, and Batya Resnick Date: May 7, 2015 Re: Legalize Marijuana in New York State THE PROHIBITION OF MARIJUANA The legalization of marijuana is a hot topic currently facing the country. Like the prohibition of alcohol in the 1920s, a policy that initially had the public support has shifted as more problems are created from policing marijuana than stopped through its ban. Many states are debating whether or not to legalize or decriminalize marijuana. While New York decriminalized marijuana and currently is implementing a law that would allow for medical marijuana to be prescribed by 2016, there is more to be done. Although the effects of marijuana are still being debated, some emerging science suggests that marijuana is not as unhealthy as other drugs or even alcohol. According to a Congressional study by the Institute of Medicine, it was found that only 10% of those who try marijuana ever meet the clinical criteria for dependence, compared to 32% of tobacco users and 15% of alcohol users.i It is indeed true that marijuana use among teens and adolescents can have negative cognitive developmental consequences; however, scientific studies show no relation for any cognitive problems among adult users.ii Of course, our recommendation is to still limit the sale to minors. After the successes of legalization efforts in Colorado, Washington, and now Alaska, it is becoming clear that the pros far outweigh the cons. The “War on Drugs” has failed in its attempt to keep many illicit substances off the streets. While not all narcotics should be decriminalized or legalized, marijuana is the exception. By crafting a responsible policy that legalizes marijuana, New York will be stemming a rise in the prison state, fighting against laws that target racial minorities, enact fiscally responsible police procedures, and create a well regulated industry. The Prison State It’s no secret that America has a problem with how many citizens get arrested. According to a leading nonprofit, the United States’ prison population is more than 6 times as high as the average western European country and only Russia has a higher incarceration rate per 100,000 people.iii Part of that problem is the drug policy. New York decriminalized marijuana back in 1977, making it a “non-criminal offense” to possess up to 25 grams. Still, a fine is incurred for any amount below the 25 gram limit: $100 for a first time offender, $200 for a second offense and $250 with a possibility of an additional 15 day imprisonment on the third offense. Despite that, marijuana arrests have continued to rise. In New York City there were 59,000 marijuana related arrests in 2010.iv In 2011 alone, more people were arrested for marijuana possession than the total combined number of such arrests between 1981 and 1995.v Currently, New York law makes it a criminal offense to be in possession of more than 25 grams of marijuana; an amount equal to less than 1 ounce. The table below cites figures and penalties from the New York Penal Law Code.vi Marijuana Possession Penalties Amount Greater than Greater than 2 Greater than 8 25 grams, less oz., less than 8 oz., less than than 2 oz. oz. 16 oz. Charges Class B Misdemeanor Class A Misdemeanor Sentence Maximum 3 months in prison Maximum 1 Maximum 4 Maximum 7 Maximum 15 year in prison years in prison years in prison years in prison Class E Felony Greater than 16 oz., less than 10 lbs. Excess of 10 lbs. Class D Felony Class C Felony As the table illustrates, the more marijuana an individual possesses, the more trouble they face. However, racist policing practices have made minorities more susceptible to punishment even when they are in possession of a noncriminal amount. Race Issues in Marijuana Enforcement The issue of race and the impact our current drug policy has on minorities must be addressed. Despite similar rates of use, African Americans are 3.7 times more likely to be arrested for marijuana than their white counterparts.vii Once arrested, black people are 10 times more likely to be sent to prison than white people.viii Even a misdemeanor marijuana conviction can result in revocation of professional licenses and driver’s licenses and an inability to get insurance, mortgage or bank loans. ix It raises the question: Why? A recent study concluded that of the 30,000 New Yorkers who were convicted of a marijuana offense, 90% of those without a prior conviction had no subsequent felony convictions.x Like Prohibition in the 1920’s and 30’s, these laws are not targeting hardened criminals but rather turning ordinary citizens into criminals. Furthermore, the economic pitfalls are well documented. Unaffordable Drug Policies It costs the United States an estimated 3.6 billion dollars a year to enforce marijuana drug laws.xi Using the previous example of over 59,000 marijuana arrests in New York City alone, it is easy to imagine an inordinate amount of money being spent in New York to combat weed. Legalization would allow the state to reallocate the funds it currently has pigeonholed for marijuana towards more worthwhile pursuits such the prevention and policing of violent crimes and anti-terrorism efforts. It would also free up the court system fighting to keep afloat in the midst of a seemingly endless river of drug trials. Finally, prisons would be less taxed without the influx of nonviolent offenders. Political Will In a 2013 Pew Poll, 52% of respondents said they supported legalizing marijuana use.xii A closer look at the same survey indicates that the number jumps to 69% of millennials in support of legalization. xiii Similar to gay marriage, the environment is ripe to push for comprehensive change that would have been impossible a decade ago. In connection to my final point, 72% of respondents in another poll stated that government efforts to enforce marijuana laws were not worth the cost.xiv Legalization Makes Sense Economically and Socially Colorado provides a roadmap in what to expect immediately after legalizing marijuana. In the first four months after legalization, Colorado collected over 10 million dollars in new tax revenue.xv Most of that tax money was earmarked for schools, infrastructure and substance abuse policies. Colorado is swimming in so much extra tax money that it has even started giving rebates to its citizens. In addition, Colorado saved an estimated 12 to 40 million dollars by ending criminal penalties for marijuana possession.xvi Finally, an estimated 1 to 2 thousand jobs have been created to support the new marketplace. xvii These economic booms would only be magnified in a state as large as New York. Looking again to Colorado, we see that overall crime has decreased by 10% and that violent crime has decreased by 5.2%. By refraining from turning ordinary, law-abiding citizens into criminals, New York could save millions of dollars each year. New York would also be supporting its citizens that lose access to vital services by having petty pot related convictions. A RESPONSIBLE PUSH TOWARDS LEGALIZATION The rising numbers of states that have legalized marijuana give New York models to work from. By examining each state’s policy and addressing strengths and weaknesses, New York can adopt responsible legislation. Policy Option 1: Colorado’s Model In November of 2012, Colorado’s citizenry voted to pass Colorado Amendment 64, which legalized the use of recreational marijuana. Colorado’s Task Force on the Implementation of Amendment 64 spent a year gathering data and gave the state a solid framework on how best to proceed with legalization. Public sale and personal consumption began in January of 2014 with policies meant to encourage responsible use. Like the sale of alcohol, Colorado controls which establishments may sell marijuana through the issuance of licenses. Accordingly, Colorado prohibits the sale of marijuana to any persons under the age of 21.xviii This is enforced through the scanning of state issued ID cards presented at the time of sale. Any establishment caught selling marijuana to underage persons is subject to penalties similar to serving alcohol to the under-aged, up to and including license revocation. Similarly, any citizen caught selling or gifting marijuana to anyone under 21 is subject to criminal charges. Despite its legal status, Colorado still seeks to restrict the amount that citizens can possess at any one time. A limit of one ounce of marijuana per person is enforced for state residents. Colorado also allows for citizens to grow up to 6 marijuana plants, although only 3 can flower, or mature, at any one time.xix Interestingly, out of state residents — who are still permitted to possess one ounce — may only purchase 1/4 of an ounce during any transaction. This is meant to lessen the risk of out of state residents moving marijuana across state lines, a federal crime. Marijuana may not be consumed in public in Colorado. Violators of this law are issued tickets with fines similar to public consumption of alcohol. Driving under the influence is still considered a crime and is dealt with seriously. Any person suspected of driving under the influence of marijuana is subject to a blood test with a standard of 5 nano-grams of THC per milliliter of blood being the standard for intoxication.xx Unlike alcohol, marijuana use creates smoke which can lead to violations of clean air standards in buildings. For that reason, marijuana “bars” have not been created, though some businesses are experimenting with loopholes in state law. With the rise in popularity of vaporizing, or vaping, marijuana can be inhaled and dispersed harmlessly as water vapor and may be a future avenue of exploration in Colorado. Finally, marijuana is taxed quite extensively in Colorado. From production to sale, marijuana is taxed 4 separate times. An initial excise tax, followed by local and state sales taxes is followed by a special marijuana sales tax. xxi Tax revenue generated through the sale of marijuana is earmarked for substance abuse programs, public education and other state programs. Policy Option 2: Washington’s Model Washington passed a similar bill in November 2012 that legalized the sale and consumption of marijuana beginning in July of 2014. While many of its components are very similar to the Colorado legislation, there are some key differences. Sale of marijuana is still only available to persons of 21 years of age and older, and they may only possess one ounce. Retail outlets must be licensed with the state, and identification must be present at the time of sale. It remains a crime to possess marijuana under the age of 21 and it is criminal to sell or gift marijuana to any person that is underage. Public consumption is not permitted and is treated similarly to public consumption of alcohol. Washington also uses the standard of 5 nano-grams of TCH per milliliter of blood for the enforcement of driving under the influence.xxii Unlike Colorado, Washington does not allow the cultivation of personal marijuana plants. Only licensed retailers and medical patients on file with the state registry are allowed to grow their own marijuana and even then, medical patients are still restricted to 6 plants.xxiii Disallowing personal cultivation is meant to ensure the quality, and in part, to standardize what people are smoking. Removing the access to homegrown marijuana also pushes citizens toward legal purchases rather than black-market sales. Washington also employs a database that tracks marijuana from when it’s grown through sale.xxiv The database is meant to ensure that marijuana is being distributed legally and is not ending up across state lines. Such a database does not file any personal information of the buyer, only that the marijuana was sold. Tax revenue generated from the sale of marijuana is also divvied up. 50% of taxes collected would go to the State Basic Health Plan Trust, 18.7% would be sent to the State General Fund, another 15% would be granted to the Department of Health Substance Abuse Program, followed by 10% to the Department of Health Marijuana Education and Public Health Program.xxv Smaller amounts are granted to state universities for research into marijuana and other controlled substances. Policy 3: Alaska’s Model Alaska’s marijuana law is very similar to Colorado’s, and given that Alaska sent state officials to study Colorado’s implementation, that is hardly a surprise. Alaska allows people 21 years or older to legally possess and consume up to one ounce of marijuana. The state also allows its citizens to grow up to 6 marijuana plants, of which only 3 can be mature, or flowering, at any time. Alaska charges a $50 excise tax on the sale or transfer of marijuana from a production facility to a retail store. At the point of sale, local and state sales taxes apply. Although marijuana has only just become legal, it is estimated that Alaskans smoke 18 metric tons annually and could provide $53 million in tax revenue.xxvi Policy 4: New York’s Model Like the other states that have legalized marijuana, New York would want to do so in a responsible way. The standard of limiting sales to people 21 years of age or older and to only one ounce would be the best way to proceed. Furthermore, public consumption would not be allowed. Discretion should be used. Public places include but are not limited to: state parks, restaurants, subways, airplanes, and areas occupied primarily by children. Marijuana smoke contains toxic chemicals that can be harmful. Additionally, no public consumption means that the underage will not be exposed to excessive images of marijuana. Individuals who consume marijuana publically will be fined. Adopting Colorado’s initiative to limit out of state residents to 1/4 of an ounce per transaction would seem like a prudent way to ensure that marijuana is not being transported illegally across state or international boundaries. Washington’s tracking database would also help law enforcement make sure that marijuana is not being trafficked. In an effort to make all transactions legal sales, New York should not allow for the individual cultivation of marijuana plants. This would hopefully have the intended effect of pushing consumers toward licensed stores where quality can be observed and efforts made to limit sales to underage persons. If stores were to be able to sell marijuana, New York must ensure that they would do so responsibly. The first step towards such action would be the issuance of licenses. Businesses could apply for licenses with criteria set by the state. Only after approval could they begin selling marijuana. Licenses would allow the state to set standards such as security requirements and proper product labeling. In addition, application and renewal fees would provide revenue along with state and local sales tax. Consumers will only head to legal dispensaries if it makes economic sense for them to do so. With that in mind, it is critical that New York tax marijuana appropriately. Although Colorado has generated nearly $75 million in taxes and fees during its first year from the sale of marijuana, it is estimated that the high rate of tax is sending buyers back to the black market where marijuana is 30% cheaper. xxvii New York would be wise to learn from this example and tax marijuana similarly to Alaska, a $50 excise tax on the transfer from producer to retailer, combined with state and local sales tax. Tax revenue generated from the sale of marijuana would be earmarked for specific purposes. Washington’s model for using the revenue for a State Health Plan Trust, general funds, substance abuse programs, education and research seem like worthy ideas on where to send the money. Further discussion about programs and percentages would have to be taken up by the state legislature. Of course, it remains important to keep citizens safe from drivers under the influence of marijuana. New York should adopt the standard of 5 nano-grams of THC per milliliter of blood. Although there is some debate about what level determines impairment for frequent users of marijuana, it is critical to set a standard and broadcast a clear message to the public. Finally, marijuana remains classified as a Schedule I substance under the Controlled Substances Act, making it a federal crime to distribute or sell marijuana. Despite this fact, President Obama has encouraged the Department of Justice to defer to the states in these matters and to not pursue charges, leading to a statement by the DOJ in August of 2013: “The statement reads that while marijuana remains illegal federally, the USDOJ expects states like Colorado and Washington to create ‘strong, state-based enforcement efforts.... and will defer the right to challenge their legalization laws at this time.”xxviii While it is important to watch for any relevant developments concerning federal legality, it appears as if the federal government is willing to let states lead the way in this matter. In order to implement the safe use of marijuana, a strict zero-tolerance policy must be enforced for individuals who break the law. Individuals who are caught driving under the influence, exceed the possession limit, smoke publicly, or who are underage will suffer a major penalty. In addition to paying a high fine, law-breakers will be banned from purchasing marijuana for five years. A penalty waiting period is the best deterrent for repeated offenses. A zero-tolerance policy for breaking the law will encourage safe and responsible use of marijuana. A major PR campaign must be launched in order to educate and warn the public about the dangers involved when being under the influence. The entire society needs to be re-educated about the possible harmful dangers of marijuana and how to practice smoking marijuana safely. Parents and teachers need to be educated about the symptoms to look out for underage use, while adults should be watchful of their friends and work colleagues. As marijuana is a controlled substance, it must be clearly labeled and made obvious that overindulgence is dangerous. Furthermore, marketing campaigns and slogans need to be established about the severe dangers of driving under the influence. Such ads include billboards, newspaper ads, subways ads, radio spots, TV commercials, and social media. A trademark message should also be established, strengthening the effects of the message. It should be understood that through the messages of community leaders, Rabbis, and Priests, just because something is legal, it does not necessarily mean it is recommended and safe. Smoking drugs should never be encouraged and drugs should never be used to replace whatever is really bothering the individual. We are aware that the legalization process of marijuana will make it more accessible but the hope is that the procedures put forth in this policy will keep usage safe. Thank you for your consideration in this matter. We’re confident that New York can be the next state to safely legalize marijuana while simultaneously decreasing incarceration rates, harmful policing practices and generating useful revenue for the state to utilize. Works Cited i Drugpolicy.org,.’10 Facts About Marijuana.’ Last modified 2015. Accessed 10 May 2015. http://www.drugpolicy.org/drug-facts/10-facts-about-marijuana. ii Ibid. iii Norml.org,. ‘Legal Issues.’ Last modified 2015. Accessed 7 March 2015. http://norml.org/legal. iv Wegman, Jesse. ‘The Injustice of Marijuana Arrests.’ The New York Times. 2014. Accessed 7 March 2015. v Drugpolicy.org,. 'Ending The Marijuana Arrest Crusade In New York State | Drug Policy Alliance'. Last modified 2015. Accessed March 8, 2015. http://www.drugpolicy.org/ny-arrests. vi Ypdcrime.com,. 'Article 221 | NYS Penal Law | Marihuana Offenses | NY Laws'. Last modified 2015. Accessed March 8, 2015. http://ypdcrime.com/penal.law/article221.htm. vii Wegman. “The Injustice of Marijuana Arrests.” viii Ibid. ix Ibid. x Ibid. xi Ibid. xii Lapidos, Juliet. 'Public Lightens Up About Weed'. The New York Times, 2014. Accessed 18 February 2015. http://www.nytimes.com/2014/07/27/opinion/sunday/high-time-the-public-lightens-up-aboutweed.html. xiii Ibid. xiv Ibid. xv Roberts, Jeff. '7 Ways Marijuana Legalization Has Already Benefited Colorado In Only 8 Months'. Collective-Evolution. Last modified 2014. Accessed February 18, 2015. http://www.collectiveevolution.com/2014/09/13/7-ways-marijuana-legalization-has-already-benefited-colorado-in-only-8months/. xvi Ibid. xvii Ibid. xviii Norml.org,. 'Colorado Laws & Penalties.’ Last modified 2015.. http://norml.org/laws/item/coloradopenalties. xix Ibid. xx Ibid. xxi Colorado.gov,. 'Colorado Marijuana Tax Data | Department Of Revenue’. Last modified 2015. https://www.colorado.gov/pacific/revenue/colorado-marijuana-tax-data. xxii Norml.org,. 'Washington Laws & Penalties’ Last modified 2015. http://norml.org/laws/item/washington-penalties-2. xxiii Ibid. xxiv Liq.wa.gov,. 'Faqs On I-502 | Washington State Liquor Control Board’. Last modified 2015. http://www.liq.wa.gov/marijuana/faqs_i-502. xxv Washington State ACLU, 'Estimated Annual Tax Revenue Distributions From I-502’. Last modified 2015. https://aclu-wa.org/sites/default/files/pie_graph/502_tax_revenue_chart.pdf. xxvi Ferner, Matt. “Alaska Marijuana Legalization Would Generate Millions in Taxes.” 2014. Accessed 9 May 2015. http://www.huffingtonpost.com/2014/10/27/alaska-marijuana-revenue-taxes_n_6056390.html. xxvii Haglage, Abby. 'Colorado’S Pot Revenue Goes Up In Smoke’. 2015. The Daily Beast. http://www.thedailybeast.com/articles/2015/02/12/colorado-s-pot-revenue-goes-up-in-smoke.html.. xxviii Ncsl.org, 'State Medical Marijuana Laws’. Last modified 2015. http://www.ncsl.org/research/health/state-medical-marijuana-laws.aspx.