Is Oregon’s Cannabis Industry Really “Out of Control”?

Posted on: August 29, 2018, by :

 oregon marijuana cannabis oversupply black market We are not persuaded by the HIDTA report.

Earlier this month, Billy J. Williams, U.S. Attorney for the District of Oregon, reacted to a current federal report on drug policy in Oregon by calling the state’’ s marijuana “program “ out of control. ” The report in concern was released by the Oregon-Idaho High Intensity Drug Trafficking Area (““ HIDTA ”-RRB-, a federally-funded company committed to fighting drug trafficking and to avoiding the diversion of cannabis from states where it is legal to states where it is not, which took a look at Oregon’’ s marijuana production, circulation, and usage given that its legalization in 2014 (““ HIDTA Report ”-RRB-.

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By and big, the HIDTA Report repeats the findings of in 2015 ’ s questionable report released by the Oregon State Police Drug Enforcement Section( “ 2017 Report ”-RRB— which, remarkably, was prepared by the exact same author– and concludes that the Beaver State is the leading source for black market pot in the nation. To the 2017 Report, the HIDTA Report worries the unfavorable effect overproduction has actually had on sustaining prohibited trade from Oregon to other states where cannabis stays prohibited.

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The HIDTA Report associates overproduction with the unrestricted variety of marijuana licenses released in Oregon. Diminishing the swimming pool of offered licenses would not make the black market vanish. As we described prior to , overproduction in the state is driven by unrelenting and considerable need from other states, which have actually concerned recognize Oregon weed as a remarkable item. Even if the Oregon Legislature were to enforce a cap on the number of licenses the OLCC is permitted to provide, black market activity would continue since the need would not likely reduce.

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In addition, the HIDTA Report highlights that Oregon produces more than 2 million pounds of cannabis each year, corresponding to more than 6 times Oregon ’ s yearly intake needs, which vary from 186,100 to 372,600 pounds. This implies that approximately 70 percent of the marijuana produced in Oregon is not state-approved and is rather exported to states where marijuana is presently prohibited.

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Unfortunately, like the 2017 Report, the findings in the HIDTA Report appear insufficient because its author can not indicate a single source for direct, dependable details on overall state production, that includes both lawfully and unlawfully grown cannabis. The problems of overproduction in Oregon and interstate leak are really well present, it is essential to tension that such surplus does not typically originate from the state-sanctioned marijuana production market( i.e., marijuana grown and produced by Oregon Liquor Control Commission (“ OLCC ”-RRB- licensees ). Rather, overproduction has the tendency to originate from unlawful development and from unauthorized, inadequately managed, quasi-commercial systems like the Oregon Medical Marijuana Program.

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Although we believe that the findings of the 2017 Report and the HIDTA Report show the anti-legalization position of”the federal government– if you remember, both reports were federally moneyed– the reports worry the have to deal with overproduction and interstate leak in a thorough and responsive way, an objective shared by prohibitionists and legalization advocates. For its part, the OLCC has actually taken current actions to confine diversion, including its harvest alert guideline together with decrease in purchase limitations for medical cardholders . The company likewise appears to be taking a harder position on guidelines infractions by licensees.

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Regardless of OLCC actions, however, and whatever the Oregon legislature chooses to do in early 2019, the state ’ s action need to take into account that federal illegality is motivating desperate and dishonest marijuana services to cut their losses and offer their surplus in the black market. In addition, managing supply by topping Oregon licenses as an afraid reaction to interstate leak would in truth incentivize black markets, since a cap would increasethe rates of marijuana. Prohibited cannabis grows prevailed in Oregon prior to 2015, after all.’

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The legal marijuana market is a nascent market, making it challenging to identify how it will react to outdoors forces. We should accept that it will take time for the marijuana market to change to these outdoors forces and discover its stability. This procedure assures to be rocky, and yes, potentially “ out of control ” to some.

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For more on Oregon marijuana and the oversupply concern, please see the following:

. Oregon Cannabis: Black and White Markets Why Is There Still a Huge Black Market for Weed in Oregon Cannabis Oversupply Presents a Challenge to Regulators Oregon Cannabis: State of the State( Part 2) Are There Too Many Weed Licenses Nowadays? Dreaming of an Oregon-California Cannabis Exchange Oregon Marijuana, the Feds and the Williams Memo .

Read more: cannalawblog.com

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