CCW PACKET REVISED

CITY OF DOVER, DELAWARE COUNCIL COMMITTEE OF THE WHOLE MEETING Tuesday, September 26, 2023 at 6:00 PM City Hall Council Chambers, 15 Loockerman Plaza, Dover, Delaware AGENDA THIS AGENDA AND PACKET HAVE BEEN REVISED BY REMOVING LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE ITEM #3 – DISCUSSION OF CITY SEAL USES AND RESTRICTIONS (COUNCILMAN LEWIS, JEAN CARVER, PARALEGAL SCHMITTINGER & RODRIGUEZ) Public comments are welcomed on any item and will be permitted at the appropriate time. When possible, please notify the City Clerk (302-736-7008 or email at cityclerk@dover.de.us) should you wish to be recognized. VIRTUAL MEETING NOTICE This meeting will be held in City Hall Council Chambers with electronic access via WebEx. Public participation information is as follows: Dial: 1-650-479-3208 Link: https://rb.gy/rpd7i Event number: 2537 486 8697 Event password: DOVER (if needed) If you are new to WebEx, get the app now at https://www.webex.com/ to be ready when the meeting starts. CALL COUNCIL COMMITTEE OF THE WHOLE MEETING TO ORDER UTILITY COMMITTEE ADOPTION OF THE AGENDA 1. Customer Advance Agreement for Supply of Natural Gas Services at Garrison Oak Business Park (David S. Hugg III, City Manager) (Staff Recommendation: Authorize the City Manager to complete negotiations and execute the Customer Advance Agreement to facilitate the timely installation of gas services throughout the park.) ADJOURNMENT OF THE UTILITY COMMITTEE MEETING 1

COUNCIL COMMITTEE OF THE WHOLE MEETING - September 26, 2023 PAGE 2 LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE ADOPTION OF THE AGENDA 1. Disposal of Fifteen Excess Properties (David S. Hugg III, City Manager) (Staff Recommendation: Approval of disposition of properties as outlined.) 2. FY23 Edward Byrne Justice Assistance Grant Program – Joint Grant with Smyrna Police Department and Kent County (Thomas Johnson, Dover Police Chief) (Staff Recommendation: Approve the grant application for the items listed below.) 3. Discussion and Next Steps of Delaware House Bill 2 - Delaware Marijuana Control Act (David S. Hugg III, City Manager, and Mary Ellen Gray, Planning and Community Development Director) (Committee Action Not Required) ADJOURNMENT OF THE LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE MEETING ADJOURNMENT OF THE COUNCIL COMMITTEE OF THE WHOLE THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. PURSUANT TO 29 DEL. C. §10004(e)(2), THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS, WHICH ARISE AT THE TIME OF THE MEETING 2

Item 1. ACTION FORM PROCEEDING: Council Committee of the Whole – Utility Committee DEPARTMENT OF ORIGIN: City Manager DATE SUBMITTED: 8/24/23 PREPARED BY: David S. Hugg III, City Manager SUBJECT: Agreement for Supply of Natural Gas Services at Garrison Oak Business Park REFERENCE: n/a RELATED PROJECT: Garrison Oak Business Park Sales REVIEWED BY: David S. Hugg III and Nick Rodriguez, Esq. EXHIBITS: Customer Advance Agreement/Chesapeake Utilities Corporation; Rodriquez Review. EXPENDITURE REQUIRED: $265,986.50 AMOUNT BUDGETED: n/a FUNDING SOURCE (Dept./Page in CIP & Budget): Property Sale Proceeds, Lots at Garrison Oak TIMETABLE: Urgent STAFF RECOMMENDATION: Authorize Finalization of Agreement by City Manager BACKGROUND AND ANALYSIS A draft Customer Advance Agreement (CAA) with Chesapeake Utilities for extension of gas services to various remaining lots in Garrison Oak Business Park is attached. This agreement is for extension of additional gas services and replaces a similar prior agreement that provided for initial natural gas services to the park (primarily to serve Uzin Utz). At that time Chesapeake was unwilling to extend the gas service throughout the park due to the limited number of users (a separate gas line was also extended to the electric generation facility) and uncertainty of the timing of future users. Natural gas is the most critical major utility not provided directly by the city. It is the fuel source of preference for many industries. Recent interest in the park has resulted in completed and pending sales, and several projects are now moving forward on scattered sites and are dependent of having gas available. Although it seems complicated, in essence the city advances funds to Chesapeake Utilities to build the extension, essentially in anticipation of users. If there are unused funds at the completion of construction, they are returned to the city. Additionally, the city receives a refund payment computed on gas consumption by customers each year for 5 years (which can be extended). Having the extension installed soon makes gas available throughout the park now and avoids a delay if a proposed new user is beyond the reach of the current gas line (predominately on the west side of the park serving Uzin Utz and Advantech). The advance requested ($265,986.50) would be funded from recent Garrison Oak sales proceeds. Staff recommends authorization for the City Manager to complete negotiations and execute the Customer Advance Agreement to facilitate the timely installation of gas services throughout the park. Attachments: (draft) Consumer Advance Agreement Email from Nick Rodriguez re: CAA 3

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Item 1. PROCEEDING: Council Committee of Whole - Legislative, Finance, and Administration Committee DEPARTMENT OF ORIGIN: City Manager DATE SUBMITTED: 8/24/2023 PREPARED BY: David S. Hugg III SUBJECT: Disposal of City property –Various Parcels (15 properties – see map sets) REFERENCE: Chapter 2, Article V, Section 2- 425.- Sale and disposition of real property RELATED PROJECT: REVIEWED BY: David S. Hugg III EXHIBITS: City-Owned Parcels Transfer – Map Set “A” (Maps 1-5) and Map Set “B” (Maps 1-4) EXPENDITURE REQUIRED: n/a AMOUNT BUDGETED: n/a FUNDING SOURCE (Dept./Page in CIP & Budget): n/a TIMETABLE: Immediate STAFF RECOMMENDATION: Approval of disposition of properties as outlined. BACKGROUND AND ANALYSIS From time to time the City Manager reviews the inventory of city-owned properties to determine if there is a city need for them or if disposal is warranted. Chapter 2, Article V, Section 2-425 of the City Code establishes the procedures for disposing of excess city- owned real properties: “The city manager, upon determining that a city-owned parcel of land is excess in nature and that the disposal of such land would be beneficial to the City of Dover, will request, through the legislative, finance, and administration committee, that city council consider disposal of such land.” The matter being brought before the committee involves two groups of properties (see Map Sets “A” and “B”) that I am determining to not be of use or value to the City’s needs. “A”. Properties Subject to Exemption D (8 properties): Pursuant to Sec.2-425, I am determining that the properties identified as: Parcel ID Address Parcel Value* 1. ED05-067.14-01-56.00, 1370 College Road $7,400 2. ED05-067.18-01-04.00, 1502 College Road $900 3. ED05-076.10-02-05.01, 237 Mifflin Road $ 5,000 4. LC05-068.00-01-08.01, White Oak Road $ 5,500 5. ED05-067.19-02-02.01, Salisbury Road $29,800 6. ED05-076.08-06-38.00, 418 W. Division Street $14,400 7. ED05-076.08-06-28.00, 37 S. Kirkwood Street $ 6,400 8. LC05-068.00-01-09.01, White Oak Road $ 1,300 are surplus to the needs of the City of Dover and that the disposal of said properties is in the best interests of the City. I recommend that the disposition be pursuant to Exception D- Sale of small or irregular shaped lot(s) to an adjacent owner, with exceptions noted. 8

Item 1. Excerption D provides “Sale of small or irregular shaped lot to an adjacent owner, If any excess parcel of land is too small or irregular in shape to be of any value to anyone other than an abutting property owner, it may be sold to such owner at either its fee appraised fair market value, or at its fair market value as established by the city’s assessment records, whichever city council shall select. The costs of the appraisal and all legal costs shall be paid by the owner requesting the conveyance.” Parcels numbered 1, 2, 3, and 4 are landlocked without access to a public road and are considered unbuildable. The City Manager recommends offering these to adjacent property owners at no purchase or legal cost to them (waiver of provisions to generate interest). Adjacent property owners have not formally requested the conveyance of any of these properties. The recommended action takes them off the city inventory, eliminates continued city maintenance, and adds them back to the tax rolls, resulting in reduced maintenance expenditures and modest increase in tax revenue. These would be offered by certified mail to only adjacent owners on a first come/first granted response basis or by random draw if multiple requests are made simultaneously. Parcels numbered 5, 6, 7, and 8 are small lots of insufficient size to be developed even though they may have road and/or utility access. The City Manager recommends offering these by public notice and closed/sealed bid as outlined in Exception D. These parcels would be offered subject to a minimum price, but without additional costs to the purchaser (waiver of provision and again to stimulate interest). That action takes them off the city inventory, eliminates continued city maintenance, and adds them back to the tax rolls. I recommend the minimum price be set at 50% of the assessed value. “B”. Standard Disposal Method Properties (7 properties): The properties listed below are potentially buildable and should be offered for sale pursuant to the standard method of disposal set forth in the Code, which includes public notice, a public hearing, setting of a minimum price, and closed/sealed bid. The purchaser would bear any legal or other costs relating to the sale. These parcels are also of no use to the city and their disposal would reduce maintenance costs and restore them to the tax rolls. I recommend setting the minimum price at least at the parcel assessed value. Parcel ID Address Parcel Value * ED05-077.09-01-36.00 222 W REED ST $ 50,200.00 ED05-077.09-01-37.00 105 S NEW ST $ 16,400.00 ED05-077.09-01-43.00 115 S NEW ST $ 15,500.00 ED05-077.09-01-70.00 312 W LOOCKERMAN ST $ 88,800.00 ED05-077.10-02-15.00 423 COLLINS DR $ 39,200.00 ED05-068.15-01-04.00 WHITE OAK RD $ 31,600.00 ED05-068.15-01-12.00 ACORN LN $ 3,300.00 Parcels # ED05-068.15-01-04.00 and # ED05-068.15-01-12.00 on White Oak Road and Acorn Lane should be combined into a single sale valued at $34,900 to increase their potential for development. *Note: parcel values are from the city assessment records, not appraisals. Assessed value is typically less than market value. Attachments: maps of parcel locations and copy of email from Planning Director in review of parcels. Approval of the proposed sales for consideration by City Council is requested. 9

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Item 2. CITY OF DOVER, DELAWARE ACTION FORM PROCEEDING: City Council DEPARTMENT OF ORIGIN: Police SUBMITTED ON: August 28,2023 PREPARED BY: Capt Dickinson, Administration Division Commander REVIEWED BY: David S. Hugg, III, City Manager and Lori Peddicord, Controller / Treasurer SUBJECT: FY23 Edward Byrne Justice Assistance Grant Program – Joint Grant with Smyrna Police Department and Kent County TIMETABLE: The grant application deadline was 8/31/23 and will be awarded within 3 months. Grant items will be ordered within 60 days of the grant award. RELATED PROJECT: N/A REFERENCE: Annual Recurring Grant Funding EXPENDITURE REQUIRED: $85,945 AMOUNT BUDGETED: $60,000 (a grant budget adjustment will be submitted for the balance needed) FUNDING SOURCE (Dept./Page in CIP & Budget): FY23 CIP Budget page 63 STAFF RECOMMENDATION: Approve the grant application for the items listed below. BACKGROUND AND ANALYSIS: The Dover Police Department recently received its annual allocation from the Office of Justice Programs (OJP) for the 2023 Justice Assistance Grant (JAG). Similar to previous years, the Dover Police Department, Smyrna Police Department and Kent County were identified as disparate funding agencies. This requires the submission of a joint grant application for the three agencies. Kent County is not eligible for an award from this program since there are no criminal justice services provided at the county level. The City of Dover will serve as the fiscal and administrative agent for the grant. The following table shows the breakout for the grant funds: Jurisdiction Amount Dover Police Department - Special Operation Response Team $75,322 (SORT) training and equipment Smyrna Police Department - fixed license plate reader equipment 10,623 Kent County - Total $85,945 ACTION REQUESTED: Council Committee of the Whole approval of the application for this grant and the purchases identified. 19

Item 2. Department Grant Application Analysis Form For Use in Evaluating Grant Opportunities General Information Department: Police Staff Contact: Capt Dickinson Grant/Project Title: FY23 Byrne Memorial Justice Assistance Grant (JAG) Brief Grant/Project Description: Recurring formula based Federal grant program which provides funding for various Law Enforcement programs. This grant is a joint grant with Smyrna Police Department and Kent County. The disparity of funding between the entities exists because there are no criminal justice services (prosecution, incarceration, law enforcement, etc.)provided at the county level, so the county is not eligible for a direct award under this program. Application Information Due Date: 8/31/23 New Related Grants: Recurring Previous years’ grants Anticipated Award Date: 11/1/23 Anticipated Notification Date: 11/1/23 Start Date: 10/1/23 End Date: 9/31/26 Award Amount: $85,945.00 Cash Reimbursement Approx. reimbursement turn-a-around time 1-2 weeks Council Approval Needed: Yes No Which apply? Match amount (Council approval is needed for grant projects > $50,000, when match amounts Project shortage equal or exceed $50,000, or when expressly required by the granting authority.) Other grant requirement Grant/Project Costs Match Budget Category Award Amt Match Amt Source Contractual Equipment/Supplies 33,738.00 $0.00 Not Applicable Indirect Cost (ie, vehicle repairs, mileage, IT, 0.00 0.00 telephone) Personnel 0.00 0.00 Additional Personnel/Over-time (extra duty) Travel/Training 52,207.00 0.00 Not Applicable Contract Services 0.00 0.00 Other (ie, informant/buy money) 0.00 0.00 Total $85,945.00 $ 0.00 GRANT TOTAL $85,945.00 Award + Match 20

Item 2. Department Grant Application Analysis Form For Use in Evaluating Grant Opportunities Other Information 1. Are any of this project’s costs included in the City budget? No additional expenses will need to be funded from the department’s budget. 2. Are there any long-term costs or commitments? None. 3. How will this program/project be funded after the grant expires? Not Applicable. 4. What is the maximum amount of funds available from this funding source? The amounts shown on the preceding table are the maximum amounts available. 5. If the Department receives only a portion of the amount requested, how will the project be funded? The funds are explicitly authorized for Dover PD’s use, so the full amount will be available. 6. Are there other departments in the City eligible for this funding? No. 7. Are other departments in the City willing to collaborate on this project? Not Applicable. 8. Will this project duplicate or compete with other services or programs provided by the City or other local agency? No. 21

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Item 3. SPONSOR: Rep. Osienski & Rep. Longhurst & Rep. Baumbach & Rep. Dorsey Walker & Rep. Heffernan & Rep. Lynn & Rep. Minor-Brown & Rep. Morrison & Sen. Paradee & Sen. Hoffner & Sen. Lockman & Sen. S. McBride & Sen. Pinkney & Sen. Sturgeon & Sen. Townsend Reps. Chukwuocha, Griffith, Harris, K. Johnson, Lambert, S. Moore, Neal, Phillips, Romer, K. Williams, Wilson-Anton; Sens. Gay, Huxtable, Poore, Sokola, Walsh HOUSE OF REPRESENTATIVES 152nd GENERAL ASSEMBLY HOUSE BILL NO. 2 AS AMENDED BY HOUSE AMENDMENT NO. 1 AND HOUSE AMENDMENT NO. 2 AN ACT TO AMEND TITLES 4, 11, 16, AND 30 OF THE DELAWARE CODE RELATING TO CREATION OF THE DELAWARE MARIJUANA CONTROL ACT. WHEREAS, the creation of a legal, regulated marijuana industry would effectively eliminate the illegal market for marijuana in Delaware by diverting demand away from illicit cartels and enterprises, and provide law enforcement officials the legal means necessary to ensure the safe legal use of marijuana in Delaware; and WHEREAS, the legalization and regulation of marijuana would address criminal justice concerns related to criminalization and prohibitions on the production, possession, and transportation of the substance, recognizing a Black individual is 4 times more likely to be arrested for marijuana possession than a white individual despite equal rates of use; and WHEREAS, it is the responsibility of the General Assembly to ensure that Delawareans most impacted by prohibition are guaranteed access to the legal marijuana market; and WHEREAS, the creation of a legal framework to regulate the production and sale of marijuana in the State of Colorado and the State of Washington has generated a multi-billion dollar industry and yielded more than 38,000 well- paying jobs in Colorado and 22,000 jobs in Washington; and WHEREAS, the adult recreational use of marijuana has been legalized in neighboring states including New York, New Jersey, and Maryland; and WHEREAS, Delaware recognizes the economic benefits of a legal marijuana market as well as the importance of regulating the substance in a manner similar to alcohol and restricting its use to persons over 21 years old. NOW, THEREFORE: Page 1 of 45 28 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein): Section 1. Amend Subchapter IV, Chapter 47, Title 16 of the Delaware Code by making deletions as shown by strikethrough and insertions as shown by underline as follows: § 4750. State-legal marijuana activities. The offenses and penalties provided for in this chapter do not apply to marijuana-related conduct allowed under the Delaware Medical Marijuana Act, Chapter 49A of this title or the Delaware Marijuana Control Act, Chapter 13 of Title 4. Section 2. Amend § 4902A, Title 16 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: § 4902A. Definitions. (19) "Registered safety compliance facility" means a nonprofit entity registered under § 4915A of this title by the Department to provide 1 or more of the following services: testing marijuana produced for medical use or under Chapter 13 of Title 4 for potency and contaminants; and training cardholders and prospective compassion center agents. cardholders, compassion center agents, and owners and employees of entities operating under Chapter 13 of Title 4. The training may include, but need not be limited to, information related to 1 or more of the following: a. The safe and efficient cultivation, harvesting, packaging, labeling, and distribution of marijuana; b. Security and inventory accountability procedures; and c. Up-to-date scientific and medical research findings related to medical marijuana. Section 3. Amend Chapter 4, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: § 401. Division of Alcohol and Tobacco Enforcement. The Division of Alcohol and Tobacco Enforcement of the Department of Safety and Homeland Security is established as follows for the administrative, ministerial, budgetary and clerical functions for the enforcement of the alcohol laws of this Code and Code, youth access to tobacco laws in §§ 1115 through 1127 of Title 11, and the marijuana laws of this title. § 403. Duties and powers of the Division. The Division shall: Page 2 of 45 29 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (1) Investigate, prevent, and arrest for violations of this title, make seizure of alcoholic liquor, manufactured, sold, kept, or transported in contravention thereof, and confiscate such alcoholic liquor whenever required by any provision of this title; (3) Only require an inventory by a package store licensee if it has evidence to support a finding that such licensee has violated this title. (4) Investigate, prevent, and arrest for violations of this title; seize marijuana, including marijuana products and accessories that are manufactured, sold, kept, or transported in contravention thereof; and confiscate such marijuana, including marijuana products and accessories, whenever required by any provision of this title; Section 4. Amend Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: Title 4 Alcoholic Liquors and Marijuana Chapter 13. The Delaware Marijuana Control Act. Subchapter I. General Provisions. § 1301. Purpose and findings. (a) In the interest of creating jobs with community benefits, eliminating the marijuana illegal market to allow law enforcement to focus on violent crime and property crimes, and promoting individual freedom, the General Assembly finds and declares that the personal use of marijuana should be legal for persons 21 years of age or older and taxed in a manner similar to alcohol. (b) In the interest of the health and public safety of our citizenry, the General Assembly further finds and declares that marijuana must be regulated in a manner similar to alcohol to ensure all of the following: (1) Individuals will have to show proof of age before purchasing marijuana. (2) Selling, distributing, or transferring marijuana to individuals under the age of 21 remains illegal. (3) Driving under the influence of marijuana remains illegal. (4) Legitimate, taxpaying businesspeople, not criminal actors, conduct sales of marijuana. (5) Marijuana sold in this State will be tested, labeled, and subject to additional regulations to ensure that consumers are informed and protected. (c) The General Assembly further finds and declares that it is necessary to ensure consistency and fairness throughout this State, and therefore, that the matters addressed by this chapter are of statewide concern, except as specified in this chapter. Page 3 of 45 30 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. § 1302. Definitions. As used in this chapter: (1) “Appeals Commission” means 3 persons, 1 from each County, appointed by the Governor with the advice and consent of the majority of the Senate. (2) “Commissioner” means the person appointed by the Governor and confirmed by the Senate who serves as the Marijuana Commissioner for the State. (3) “Compassion center” means an entity registered as a compassion center under § 4914A of Title 16. (4) “Consumer” means an individual 21 years of age or older who purchases marijuana, marijuana products, or marijuana accessories for personal use by the individual or other individuals 21 years of age or older, but not for resale to others. (5) “Department” means the Department of Safety and Homeland Security. (6) “Disproportionately impacted area” means census tracts identified by the Commissioner in collaboration with state and local agencies that have high rates of arrest, conviction, and incarceration relating to the sale, possession, use , cultivation, manufacture, or transport of marijuana. (7) “Division” means the Division of Alcohol and Tobacco Enforcement. (8) "Immature plant" means a nonflowering marijuana plant, no taller than 8 inches and no wider than 8 inches; that is produced from a cutting, clipping, or seedling; is in a cultivating container; and which does not have buds that may be observed by visual examination. (9) “Labor peace agreement” means an agreement between a licensee and any bona fide labor organization that prohibits labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the licensee’s business. This agreement means that the licensee has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the licensee’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the licensee’s employees work, for the purpose of meeting with employees to discuss the employees’ right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization. (10) “License” means any license or permit to cultivate, possess, manufacture, sell, transport, or test marijuana or marijuana products and accessories authorized or issued by the Commissioner under this chapter. (11) “Marijuana” means as defined in § 4701 of Title 16. Page 4 of 45 31 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (12) “Marijuana accessories” means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana; or for ingesting, inhaling, or otherwise introducing marijuana into the human body. (13) “Marijuana cultivation facility” or “cultivation facility” means an entity licensed to cultivate, prepare, and package marijuana and sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. A marijuana cultivation facility may not produce marijuana concentrates, tinctures, extracts, or other marijuana products. (14) “Marijuana establishment” means an entity licensed as a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store. (15) “Marijuana product manufacturing facility” means an entity licensed to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and retail marijuana stores, but not to consumers. (16) “Marijuana products” means products that are comprised of marijuana, including concentrated marijuana, and other ingredients and are intended for use or consumption, such as edible products, ointments, and tinctures. (17) “Marijuana testing facility” means an entity licensed to test marijuana for potency and contaminants. (18) “Microbusiness license” means a license issued pursuant to Part B of Subchapter III of this title which includes any of the following: a. Marijuana cultivation facility license. b. Marijuana product manufacturing license. (19) “Open license” means a license issued pursuant to Part A of Subchapter III of this title that is not a social equity license or microbusiness license which includes all of the following: a. Retail marijuana store license b. Marijuana testing facility license. c. Marijuana cultivation facility license. d. Marijuana product manufacturing license. (20) “Person” means as defined in § 302 of Title 1. (21) “Personal use quantity” means as defined in §4701 of Title 16. Page 5 of 45 32 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (22) “Possession limit” means the amount of marijuana that may legally be possessed at any one time by an individual 21 years of age or older who is not a registered qualifying patient or a registered designated caregiver under Chapter 49A of Title 16. (23) “Public place” means any indoor or outdoor area or portion thereof generally accessible to the public. (24) "Retail marijuana" means "marijuana", as defined in § 4701 of Title 16, that is cultivated, manufactured, distributed, or sold by a licensed marijuana establishment. (25) “Retail marijuana store” means an entity licensed to purchase marijuana from marijuana cultivation facilities; to purchase marijuana and marijuana products from marijuana product manufacturing facilities; and to sell marijuana and marijuana products to consumers. (26) “Social equity license” means a license issued pursuant to Part B of Subchapter III of this title for any of the following: a. Retail marijuana store license. b. Marijuana testing facility license. c. Marijuana cultivation facility license. d. Marijuana product manufacturing license. (27) “Smoking" means both of the following: a. The burning of a lighted cigarette, cigar, pipe, or any other matter or substance that contains marijuana. b. The use of an electronic smoking device which creates an aerosol or vapor, in any manner or in any form. (28) “Unreasonably impracticable” means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson. (29) “Work” means as defined in § 3302 of Title 19. § 1303. [Reserved.]] § 1304. Marijuana accessories authorized. An individual who is 21 years of age or older is authorized to manufacture, possess, and purchase marijuana accessories, and to distribute or sell marijuana accessories, to an individual who is 21 years of age or older. § 1305. Places of employment. Nothing in this chapter is intended to impact or impose any requirement or restriction on employers with respect to terms and conditions of employment including but not limited to accommodation, policies, or discipline. Page 6 of 45 33 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. § 1306. Driving under the influence prohibited. Nothing in this chapter is intended to allow driving under the influence of marijuana or driving while impaired by marijuana or to supersede laws related to driving under the influence of marijuana or driving while impaired by marijuana. This chapter is not intended to prevent the State from enacting and imposing penalties for driving under the influence of or while impaired by marijuana. § 1307. Individuals under age 21; prohibitions. (a) Nothing in this chapter is intended to permit the transfer of marijuana, with or without remuneration, to an individual under the age of 21 or to allow an individual under the age of 21 to purchase, possess, use, transport, or consume marijuana. (b) It is unlawful for an individual under the age of 21 years to knowingly enter or remain in an establishment licensed under this chapter. A violation of this subsection is a civil offense punishable by a civil penalty of $50. § 1308. Private property rights. Nothing in this chapter prohibits a person, employer, school, hospital, detention facility, corporation, or any other entity who occupies, owns, or controls a property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or growing of marijuana on or in that property, except that in the case of the rental of a residential dwelling, a landlord may only prohibit the possession of marijuana or the consumption of marijuana by non-smoked means if one or more of the following applies: (1) The building is the primary residence of the landlord, no more than 3 rooms in the building are rented to tenants, and no more than 3 tenants occupy such building. (2) Residence is merely incidental to detention or to the provision of medical, geriatric, educational, counseling, religious, or similar services, including prisons, student housing provided by a college or school, long term care facilities, and hospitals. (3) Failing to prohibit marijuana possession or consumption would violate federal law or regulations or cause the landlord to lose a monetary or licensing-related benefit under federal law or regulations. § 1309. Unlawful marijuana extraction, penalties. (a) It is unlawful for a person, other than a marijuana product manufacturer complying with this chapter and department regulations, to extract compounds from marijuana using solvents other than water, glycerin, propylene glycol, vegetable oil, or food grade ethanol (ethyl alcohol). (b) It is unlawful for a person to extract compounds from marijuana using ethanol in the presence or vicinity of open flame. Page 7 of 45 34 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (c) Violation of this section is a class G felony. § 1310. Lawful operation of marijuana-related establishments. (a) It is lawful and may not be an offense under the law of this State, or be the basis for seizure or forfeiture of assets under the law of this State, for an individual 21 years of age or older to do any of the following: (1) Manufacture, possess, or purchase marijuana accessories or sell marijuana accessories to an individual who is 21 years of age or older in a manner set forth in this chapter. (2) Possess, display, or transport marijuana or marijuana products; purchase marijuana from a marijuana cultivation facility; purchase marijuana or marijuana products from a marijuana product manufacturing facility; or sell marijuana or marijuana products to consumers if the person conducting the activities described in this paragraph (a)(2) of this section holds a valid license to operate a retail marijuana store or is acting in the person’s capacity as an owner, employee, or agent of a licensed retail marijuana store. (3) Cultivate, harvest, process, package, transport, display, or possess marijuana; deliver or transfer marijuana to a marijuana testing facility; sell marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store; or purchase marijuana from a marijuana cultivation facility if the person conducting the activities described in this paragraph (a)(3) of this section holds a valid license to operate a marijuana cultivation facility or is acting in the person’s capacity as an owner, employee, or agent of a licensed marijuana cultivation facility. (4) Package, process, transport, manufacture, display, or possess marijuana or marijuana products; deliver, transport, or transfer marijuana or marijuana products; sell marijuana or marijuana products to a retail marijuana store or a marijuana product manufacturing facility; purchase marijuana from a marijuana cultivation facility; or purchase marijuana or marijuana products from a marijuana product manufacturing facility if the person conducting the activities described in this paragraph (a)(4) of this section holds a valid license to operate a marijuana product manufacturing facility or is acting in the person’s capacity as an owner, employee, or agent of a licensed marijuana product manufacturing facility. (5) Possess, cultivate, process, repackage, store, transport, display, transfer, or deliver marijuana or marijuana products if the person holds a valid license to operate a marijuana testing facility or is acting in the person’s capacity as an owner, employee, or agent of a licensed marijuana testing facility. (6) Lease or otherwise allow the use of property owned, occupied, or controlled by any person, for any of the activities conducted lawfully under this chapter. (b)(1) An entity licensed under this chapter may not sell or deliver marijuana or marijuana products on Thanksgiving, Easter, or Christmas or at hours other than those prescribed by the rules or regulations of the Commissioner. Page 8 of 45 35 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (2) A holder of license for a retail marijuana store may not sell or deliver marijuana or marijuana products on Thanksgiving, Easter, or Christmas or between the hours of 1:00 a.m. and 9:00 a.m. on Mondays through Saturdays, and on Sundays before noon or after 8:00 p.m. Any municipality with a population of 50,000 or more may limit sales under this subsection within the boundaries of the municipality to a maximum of 4 hours on Sundays as established by ordinance of the municipality. The closing hours for days of the week other than Sunday may be made earlier in any municipality having a population of 50,000 or more persons, by ordinance of the municipality; provided however, that such ordinance be consistent with the State and federal constitutions and must treat all businesses fairly. During the months of October through December, a holder of a license for a retail marijuana store may have sales take place beginning at 8:00 a.m. on Fridays through Saturdays and 10:00 a.m. on Sundays. (3) Any holder of a license for a retail marijuana store who wishes to sell marijuana or marijuana products on Sundays must pay a biennial license fee of $500.00 for the issuance of a special license to sell marijuana and marijuana products on Sundays, which is in addition to any other license fees which may be required of the holder. (c) Marijuana and marijuana products may not be sold in an establishment licensed to sell alcoholic liquors under this title. § 1311. Enforcement. Inspections and enforcement activities are to be conducted under Subchapter VI of Chapter 47 of Title 16. § 1312. Contracts enforceable. Contracts related to the operation of a marijuana establishment licensed under this chapter are enforceable. A contract entered into by a licensed marijuana establishment or its employees or agents as permitted under a valid license, or by those who allow property to be used by a licensed marijuana establishment, its employees, or its agents as permitted under a valid license, is not unenforceable on the basis that cultivating, obtaining, manufacturing, distributing, dispensing, transporting, selling, possessing, or using marijuana is prohibited by federal law. § 1313. Verifying the age of marijuana consumers. (a) Whoever sells any marijuana to a person who has not reached the age of 21 years, or sells to any person of more than such age any marijuana knowing that such marijuana is bought for a person who is less than 21 years of age shall be subject to a civil penalty not less than $250 nor more than $500. (b) In any enforcement action under this section, it is an affirmative defense that the individual who is under 21 years old presented identification, with a photograph of such individual affixed thereon, to the accused and the identification set forth information which would lead a reasonable person to believe such individual was 21 years old or older. Page 9 of 45 36 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. § 1314. Medical marijuana provision not affected. Nothing in this chapter may be construed to limit any privileges or rights of a medical marijuana patient, primary caregiver, or medical marijuana compassion center under the Delaware Medical Marijuana Act, Chapter 49A of Title 16. § 1315. Oversight Committee; annual report by the Commissioner. (a) The Delaware Marijuana Control Act Oversight Committee is established to evaluate and make recommendations regarding the implementation of this chapter. (1) The Oversight Committee shall consist of 15 members who possess the qualifications and are appointed as follows: a. The Secretary of the Department, or designee appointed by the Secretary. b. The Director of the Division of Revenue, or the Director’s designee. c. The Director of the Division of Public Health, or the Director’s designee. d. The Director of the Division of Substance Abuse and Mental Health, or the Director’s designee. e. The Director of the Delaware Medical Marijuana Program, or the Director’s designee. f. The Chief Officer of the Division of Diversity and Inclusion, of the Chief Officer’s designee. g. The Director of the Small Business Division, or the Director’s designee. h. 1 member of the House of Representatives, appointed by the Speaker of the House of Representatives. i. 1 member of the Senate, appointed by the President Pro Tempore of the Senate. j. 1 marijuana advocate from each county appointed by the Speaker of the House of Representatives. k. 1 marijuana advocate from each county appointed by the President Pro Tempore of the Senate. (2) The members of the Oversight Committee shall serve at the pleasure of the appointing authority. (3) A quorum shall consist of a majority of the membership of the Oversight Committee. (4) The Oversight Committee shall select a chair and vice chair from among its members. (5) Staff support for the Oversight Committee shall be provided by the Division. (6) The Oversight Committee shall meet at least 2 times per year for the purpose of evaluating and making recommendations to the Governor, the General Assembly, and the Department regarding the following: a. The ability of consumers in all areas of the State to obtain legal marijuana. b. The sufficiency of the regulatory and security safeguards under this chapter and adopted by the Commissioner to ensure that access to and use of marijuana cultivated is provided only to individuals age 21 or over. Page 10 of 45 37 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. c. Any recommended additions or revisions to the Commissioner’s regulations or this chapter, including relating to security, safe handling, labeling, and nomenclature. d. Any research studies regarding health effects of using marijuana. e. The impact of the Delaware Marijuana Control Act on decreasing the illegal sales and production of marijuana. f. The impact of the Delaware Marijuana Control Act on other aspects of public safety, including the incidence of people driving under the influence, using marijuana in places or in a manner prohibited by this chapter, and the use of prescription opioids and illegal opioids. g. Any research and recommendations to implement current best practices for the development of a diverse workforce among marijuana establishments, including diversity among employees, licensees, and owners of marijuana establishments. (b) The Commissioner shall submit to the Governor and members of the General Assembly an annual report setting forth all matters of interest and all statistics concerning marijuana regulation and control in the State, including the following: (1) The number of licenses of each kind issued within the State and the number cancelled during the year. (2) The amount of marijuana and marijuana products sold within the State. (3) Statistics regarding diversity among marijuana establishments, including diversity of employees, licensees, and owners of marijuana establishments. (4) Outcomes and effectiveness of the issuance of social equity licenses which shall include all of the following: a. The number of and types of social equity licenses issued. b. The number of persons or entities receiving financial assistance, and from what source. c. The location of the social equity licenses. d. If applicable, the number of new jobs or other forms of economic output created as a result of the social equity licenses. (5) Other data as may make a complete report to the people of this State. (c) If marijuana is decriminalized under federal law, the Commissioner shall submit a report to the Governor and the General Assembly evaluating the state’s compliance with federal law and make recommendations as to any changes needed in this State’s marijuana law to be compliant with federal law. § 1316. Protections for conduct authorized by this chapter. Page 11 of 45 38 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (a) A public officer or employee of the State, including the members of any board, commission, conservation district or agency of the State, whether elected or appointed, and whether now or previously serving as such, and any contractor or volunteer performing work for the State, whose job functions include, assist, support, regulate, approve, or authorize any of the conduct authorized by this chapter are not subject to arrest, prosecution, or the denial of any right or privilege, including any criminal or civil penalty or disciplinary action by a court or occupational or professional licensing board or bureau where the conduct of the public officer or employee, contractor, or volunteer meets all of the following: (1) The conduct arises out of or relates to activities required or authorized by this chapter. (2) The conduct was carried out as authorized by this chapter or regulations authorized by this chapter. (3) The conduct was carried out in good faith. (b) A public officer or employee of the State, including the members of any board, commission, conservation district or agency of the State, whether elected or appointed, and whether now or previously serving as such, and any contractor or volunteer performing work for the State, whose job functions include, assist, support, regulate, approve, or authorize any of the conduct authorized by this chapter is entitled to the same rights and privileges set forth in § 3925 and § 4002 of Title 10. §§ 1317-1320. Reserved. Subchapter II. Marijuana Commissioner and Appeals Commission. § 1321. Marijuana Commissioner; Appeals Commission; qualifications; appointment; term; compensation. (a) The Commissioner must be a resident of this State and suitably educated and experienced to carry out the duties and responsibilities set forth in this chapter. (b) The Commissioner and the 3 members of the Appeals Commission, consisting of 1 member from each County, shall be appointed by the Governor and confirmed by a majority of the members elected to the Senate and shall serve at the pleasure of the Governor. The Governor shall make initial nominations for the Commissioner and the 3 members of the Appeals Commission within 90 days of [the effective date of this Act]. (c) The Commissioner may name a Deputy Commissioner. The Commissioner may, during an absence from the State, appoint the Deputy Commissioner to serve as Acting Commissioner during such absence. In the event of death, resignation, temporary incapacity, or removal of the Commissioner, and prior to the appointment of a successor, the Governor may appoint the Deputy Commissioner, or such other person as deemed qualified by the Governor, to serve as Acting Commissioner. The Acting Commissioner has all the powers and shall perform all the duties and functions of the Commissioner during the Commissioner's absence or incapacity or until a successor is qualified and appointed. (d) The Commissioner is to be compensated as provided for in the Annual Budget Act. Page 12 of 45 39 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (e) The members of the Appeals Commission are to be compensated at the rate of $150 per meeting together with the reasonable expenses for no more than 12 meetings per year. (f) The Appeals Commission shall meet and elect a chair who shall convene meetings of the Commission as frequently as needed to consider appeals of the Commissioner's decision. § 1322. Duties and powers of the Commissioner. (a) The Commissioner, in accordance with the Administrative Procedures Act, Chapter 101 of Title 29, shall do all of the following: (1) Adopt rules and regulations consistent with § 1331 of this title and other provisions of this chapter or of any other law of this State, and all such rules and regulations have the force and effect of law. A rule or regulation may not extend, modify, or conflict with any law of this State or the reasonable implications thereof. A rule or regulation adopted under this paragraph (a)(1) of this section must focus primarily on public safety and the best interests of the consumer and may not unduly restrict competition within the marijuana industry. (2) Maintain ongoing communication with the Department of Agriculture regarding the physical address where marijuana or hemp is cultivated. Prior to issuing any license for cultivation of marijuana, the Commissioner shall notify the Department of Agriculture of a proposed location of any marijuana cultivation establishment, and take into consideration any concerns by the Department of Agriculture as it relates to the indoor and outdoor cultivation of marijuana. (3) Establish rules and regulations for the effective control of the business of cultivation, manufacture, and sale of marijuana and marijuana products within the State, including the time, place, and manner in which marijuana and marijuana products may be sold and dispensed, not inconsistent with § 1331 of this title and other provisions of this chapter or with any other law of this State. (4) Establish health and safety regulations for the indoor and outdoor cultivation of marijuana by marijuana establishments under this chapter. Such rules and regulations under this section must be consistent with applicable rules and regulations established under the regulatory authority of the Department of Agriculture and the Department of Natural Resources and Environmental Control and may include all of the following: a. Prohibition of the use of pesticides that are neither organic nor federally approved for marijuana. b. Standards for the use of carbon dioxide. c. Standards for water use. d. Standards for disposal of waste. e. Standards for indoor and outdoor air quality. Page 13 of 45 40 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (5) Grant, refuse, suspend, or cancel licenses required by this chapter for the cultivation, manufacture, or sale of marijuana and marijuana products, or other licenses required by this chapter in regard thereto and to transfer any license granted. The Commissioner must provide the applicant or licensee with written communication regarding any decision to grant, refuse, suspend, or cancel licenses required by this chapter for the cultivation, manufacture, or sale of marijuana and marijuana products, or other licenses required by this chapter in regard thereto, and when transferring any license granted. (6) Hear complaints in regard to the conduct of business in any establishment where marijuana or marijuana products are licensed to be sold upon receipt of a petition signed by at least 10 individuals who are residents of the same neighborhood. Ten days' notice of such hearings, together with a recital of the complaint, must be sent by the Commissioner’s office by registered mail to the address of the holder of the license for the establishment. Like notice must be delivered at the establishment by affixing the notice addressed to the holder of the license to the outside of an entrance door to the establishment. The hearings must be public and conducted by the Commissioner. The Commissioner, for the purpose of such hearings, has the power to issue subpoenas, compel the attendance of witnesses, administer oaths, take testimony, and compel the production of pertinent books, payrolls, accounts, papers, records, and documents. In case any person summoned to testify or to produce any such written or printed evidence refuses, without reasonable cause, to be examined, to answer a legal and pertinent question, or to produce any such written or printed evidence, the Commissioner conducting the hearing may certify the fact of any such refusal to the Superior Court of the county in which such hearing is held and the court may proceed against the person so refusing as for a contempt and punish such person in the same manner as persons are punished for contempt of court. (7) Compel the attendance of witnesses and the production of contracts, papers, books, accounts, and other documents. Subpoenas issued must be signed by the Commissioner and may be served by any sheriff, deputy sheriff, constable, or any agent of the Division and return thereof made to the Commissioner. The Commissioner may enforce compliance with a subpoena issued under this subsection by filing a motion to compel in the Superior Court, which shall have jurisdiction over the matter. The court may award costs and attorney fees if it determines that noncompliance with a Commissioner subpoena was unjustified, intentional, or in bad faith. (8) Act, for purposes of this chapter, as the competent authority in connection with other matters pertinent thereto. (9) Provide such special seals, labels, and wrappers as deemed necessary for protection of the public against imitations, adulterations, and frauds, and prescribe the proper use of the seals, labels, and wrappers. Page 14 of 45 41 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (10) Provide such warning signs as may be required by this chapter and distribute such signs to license holders and promulgate regulations with respect to the posting of said signs. The Commissioner may charge a fee to cover printing, handling, and distribution costs. (11) Coordinate with the Division of Small Business, Development and Tourism to connect potential marijuana establishments licensed under this chapter with programs that support business development, including farms and programs that support small businesses owned by minorities, women, and veterans. (12) Establish rules and regulations for the effective collection of data regarding retail sales of marijuana and marijuana products by consumers to track compliance with possession limits. (13) Consult with the Division of Alcohol and Tobacco Enforcement before adopting or establishing any rules or regulations that concern enforcement. (b) The Commissioner's decision on any appeal or hearing under this chapter must be in writing and is final and conclusive unless a party to such hearing files an appeal within 30 days from the date of the postmark on the Commissioner’s decision by mailing notice of the appeal to the Commissioner's office. Upon receipt of the appeal, the Commissioner shall notify the chair of the Appeals Commission of the pending appeal and the chair shall convene the Appeals Commission with at least 20 days’ notice to all parties. The Appeals Commission shall hear the appeal and shall review the matter on the record; act in accordance with the Administrative Procedures Act, Chapter 101 of Title 29; and affirm, reverse, or modify the decision of the Commissioner. A decision of the Commissioner may only be reversed upon a finding of abuse of discretion. (c) The Commissioner may appear before the Appeals Commission for any appeal of a Commissioner's decision and may appeal any decision of the Appeals Commission or any decision of the Superior Court on appeal from the Appeals Commission. § 1323. Oath of Office of Commissioner and employees. The Commissioner, members of the Appeals Commission, and any hearing officer shall, on entering office, take the oath or affirmation set forth in Article XIV of the Constitution of this State. Any other employee may be required to take the oath or affirmation set forth in Article XIV of the Constitution of this State at the discretion of the Secretary of the Department of Safety and Homeland Security. § 1324. Conflict of interest. (a) The Commissioner, members of the Appeals Commission, and any hearing officer or such person's spouse, or such person’s parent, son, or daughter residing at such person's residence, may not have a financial interest in any entity Page 15 of 45 42 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. that sells, manufactures, cultivates, or uses marijuana; provided, however, such persons may invest in mutual funds or similar financial instruments that hold no more than a 10% interest in any such entity. (b) Neither the Commissioner nor any person employed in the office of the Commissioner shall receive any commission or profit whatsoever from, or have any interest whatsoever in a business licensed under this chapter to cultivate, manufacture, purchase, or sell marijuana or marijuana products; provided, however, that nothing in this section shall prevent the Commissioner, a member of the Appeals Commission, a hearing officer, or an employee from purchasing and keeping marijuana or marijuana products for the personal use of him or herself, or members of his or her family or his or her guests if such purchase is otherwise permitted by this chapter. (c) The Commissioner and the members of the Appeals Commission shall annually file the Financial Report required under § 5813 of Title 29 with the Public Integrity Commission. § 1325. Commissioner's statement of interest in marijuana business. When notified of appointment as Commissioner or to the Appeals Commission, the individual so notified shall furnish in duplicate and in writing to the Governor and to the President Pro Tempore of the Senate a statement of every interest, direct or indirect, and however small, held or owned by the individual as a member or as a stockholder in any partnership, corporation, or other association engaged in the sale or in the cultivation or manufacture of marijuana or marijuana products or in any undertaking, industry, or business in which marijuana or marijuana products are used or required. Prior to taking the oath of office, the Commissioner and members of the Appeals Commission must wholly and fully dispose of all interests, except those permitted by § 1324 of this chapter. One copy of the statement must be inserted in the permanent records of the office of the Commissioner open to public inspection. § 1326. Employees of the Division; Commissioner. The Department of Safety and Homeland Security shall appoint, employ, or dismiss every officer or employee, not appointed by the Governor, necessary for carrying out the work of the Division, Appeals Commission, and Commissioner; establish salaries, subject to the annual appropriation in the Budget Act; and assign official titles and duties. The Department may engage the services of experts and persons engaged in the practice of a relevant profession. At the discretion of the Secretary of the Department of Safety and Homeland Security, officers and employees of the Division shall have the police powers of constables and other police officers of the State, counties, and other subdivisions of the State; shall be conservators of the peace throughout the State; shall be eligible for certification by the Council on Police Training; and may suppress all acts of violence and enforce the provisions of this chapter. § 1327. Property and profits of the office of the Commissioner. All property owned by the office of the Commissioner and all associated profits are the property of the State. Page 16 of 45 43 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. §§ 1328-1330. Reserved. Subchapter III. Regulation and Licensure. § 1331. Regulations. (a) The Commissioner shall adopt regulations necessary for implementation of this chapter. The regulations may not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. Regulations and fees for marijuana cultivation facilities may be varied based on the size of the facility to ensure that the operation of smaller facilities is not made unreasonably impracticable. The Commissioner shall include all of the following in the regulations: (1) Procedures for the issuance, renewal, suspension, transfer, and revocation of a license to operate a marijuana establishment with all procedures subject to the Administrative Procedures Act, Chapter 101 of Title 29. (2) A competitive scoring process to determine which applicants may obtain licenses to operate each type of marijuana establishment if more qualified applicants apply than the Commissioner may license under this subchapter and that ensures applicants will follow best practices for community engagement, consumer protection, food safety, worker safety, family support jobs, diversity, public safety, and environmental stewardship. The competitive scoring process for retail marijuana stores must be varied to account for geographic distribution or population density, or both. (3) The criteria for the competitive scoring process for all license types must include the following: a. The applicants comprehensive business plan, including an annual budget and pro forma financial statements. b. The experience, training, and expertise of the applicant and managing officers. c. The applicant’s plans for safety, security, and the prevention of diversion. d. The applicant’s plans for operations, training, and staffing, including all of the following: 1. A social responsibility plan outlining diversity goals, including plans to recruit and hire people of color, women, and veterans and to support their ownership and promotion within the organization, as well as the percent of employees it plans to hire from within the respective city or region of the State. 2. A plan to provide a safe, healthy, and economically beneficial working environment with fair scheduling practices, family-supporting wages, and benefits for its employees. 3. Any criminal, civil, or regulatory history encountered by other entities the applicant and managing officers have previously controlled or managed. 4. The suitability of the proposed location for the facilities. 5. Any other criteria deemed appropriate by the Commissioner. Page 17 of 45 44 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (4) The criteria for the competitive scoring process for open license types must include the following: a. The applicant’s submission of an attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement with such bona fide labor organization. b. For applications for marijuana cultivation facility license and marijuana product manufacturing facility license only, an environment and sustainability plan, including efforts it will take to minimize the environmental impact, and resources needs of its facilities and other business operations, such as plans to minimize water usage, employing organic cultivation methods, and adoption of other sustainable business practices. (5) Except as provided in subpart B of this subchapter III of this chapter, a non-refundable $5,000 application fee for all marijuana establishments that the Commissioner may adjust annually for inflation. (6) Qualifications for licensure that are directly and demonstrably related to the operation of a marijuana establishment. (7) Procedures for how establishments licensed under this chapter must track marijuana from seed to sale. (8) Security requirements for marijuana establishments, including lighting, physical security, video, and alarm requirements. (9) Requirements for the transportation and storage of marijuana and marijuana products by marijuana establishments. (10) Employment and training requirements for licensees, employees, and agents of marijuana establishments, including the following: a. That each marijuana establishment create an identification badge for each employee or agent. b. That employees of retail marijuana store establishments be trained in recognizing valid identification cards. (11) Requirements to prevent the sale or diversion of marijuana and marijuana products to individuals under the age of 21. To protect individual privacy, the Commissioner may not require a consumer to provide a retail marijuana store with personal information other than government-issued identification to determine the consumer’s age and a retail marijuana store may not be required to acquire and record personal information about consumers. (12) Standards for marijuana product manufacturers to use so that consumers can determine the amount of marijuana in each product and compare the amount of marijuana in different products based upon the standard measurements, including a definition of the amount of delta-9 tetrahydrocannabinol that constitutes a single serving in a marijuana product. Page 18 of 45 45 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (13) Requirements for marijuana and marijuana products sold or distributed by marijuana establishments, including information for consumers and labeling requirements for marijuana products that include all of the following: a. The length of time it typically takes for a product to take effect. b. The amount of marijuana in the product using the standard established in this section, not to exceed 10 mg per serving. c. The serving size and the number of servings in each package, not to exceed 10 servings. d. Ingredients and possible allergens. e. A nutritional fact panel. f. The requirement that information on the packaging may not mislead consumers. g. The specific batch number of the product. h. Educational information for consumers to educate consumers, including evidence-based information about how to interpret the information on the label, health effects, and potential interactions with prescription and nonprescription medications. i. Opaque, resealable, and continually child-resistant packaging, which must be designed or constructed to be significantly difficult for children under 5 years of age to open and not difficult for an adult to use properly as defined by 16 C.F.R. § 1700.20. j. A standard symbol indicating edible marijuana products contain marijuana so that marijuana products are clearly identifiable. k. A warning label that explains evidence-based harms from consuming marijuana, including the impact on developing brains, the impact on an individual’s ability to operate machinery, the impact on pregnant and breastfeeding women, and any interference with prescription drugs. l. A label that indicates the product is not for children. m. All required information must be in typed, legible font that is easy to read, is unobstructed and conspicuous, and contrasts sufficiently with the background. The information must be in English, but may also include translations in additional languages. (14) Health and safety regulations and standards for the manufacture of marijuana products by marijuana establishments consistent with other State requirements for food, including all of the following: a. Prohibition of the manufacture of products that look like candy or cartoon characters. Page 19 of 45 46 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. b. Restrictions or prohibitions on additives to marijuana and marijuana-infused products, including additives that are toxic, designed to make the product more addictive, or designed to make the product more appealing to children, but not including common baking and cooking items. c. Standards for the safe manufacture of marijuana extracts and concentrates. d. Requirements for random sample testing, including the manner and frequency of testing, to ensure quality control, including by ensuring that marijuana and marijuana-infused products are accurately labeled for potency. The testing analysis must include testing for residual solvents, poisons, or toxins; harmful chemicals; dangerous molds or mildew; filth; harmful microbials such as E. Coli or salmonella; and pesticides. (15) Restrictions on the advertising, marketing, and signage of marijuana and marijuana products, including a prohibition on mass-market campaigns that have a high likelihood of reaching minors. (16) Restrictions on the display of marijuana and marijuana products, including requirements that marijuana and marijuana products may not be displayed in a manner that is visible to the general public from a public right-of- way. (17) Requirements governing visits to cultivation facilities and product manufacturers, including the requirement that these marijuana establishment log visitors. (18) Requirements that educational materials be disseminated to consumers who purchase marijuana-infused products. (19) Standards for the operation of marijuana testing facilities, including requirements for equipment and qualifications for personnel, which shall be based upon international standard ISO/IEC 17025. Marijuana testing facilities shall achieve and maintain accreditation to ISO/IEC 17025 by an International Laboratory Accreditation Corporation (ILAC) recognized accreditation body. The marijuana testing facilities shall achieve and maintain accreditation within the first applicable licensing period. (20) Civil penalties for the failure to comply with regulations made under this chapter. (21) Procedures for receiving and processing consumer complaints about marijuana establishments. Part A. Open Licenses. § 1332. Retail marijuana store licenses. (a) A retail marijuana store license may only be issued to a person selling retail marijuana or retail marijuana products under the terms and conditions of this chapter. A license issued under this section is valid for 2 years. Each application for a retail marijuana store license must contain all of the following: Page 20 of 45 47 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (1) The application materials required by the Commissioner, including the location where the retail marijuana store will operate. (2) The application fee in an amount determined by the Commissioner. (3) Materials required by § 1331(a)(3) and (4) of this chapter. (b) A retail marijuana store licensee shall pay the Commissioner $10,000 biennially for the retail marijuana store license. A retail marijuana store licensee must renew the license biennially by paying the fee required by this subsection and by providing documentation of a labor peace agreement. (c) A retail marijuana store may purchase retail marijuana from a licensed retail marijuana cultivation facility or may cultivate its own retail marijuana if it obtains a retail marijuana cultivation facility license under § 1334 of this chapter. (d) A retail marijuana store shall track all of its retail marijuana and retail marijuana products from the point that they are transferred from a retail marijuana cultivation facility or retail marijuana products manufacturer to the point of sale. (e)(1) A retail marijuana store licensee may also sell retail marijuana products that are prepackaged and labeled as required by this chapter. (2) A retail marijuana store licensee may transact with a retail marijuana products manufacturing licensee for the purchase of retail marijuana products upon a retail marijuana products manufacturing licensee's licensed premises or a retail marijuana store's licensed premises. (f)(1) A retail marijuana store may not sell more than a personal use quantity of marijuana, except for nonedible, nonpsychoactive retail marijuana products, including ointments, lotions, balms, and other nontransdermal topical products, during a single transaction to an individual. (2) Prior to initiating a sale to an individual, an employee of the retail marijuana store making the sale shall verify that the purchaser has a valid government-issued photo identification card showing that the individual is 21 years of age or older. If an individual under 21 years of age presents a fraudulent proof of age, any action relying on the fraudulent proof of age is not grounds for the revocation or suspension of any license issued under this section. a. If a retail marijuana store licensee or employee has reasonable cause to believe that an individual is under 21 years of age and is exhibiting fraudulent proof of age in an attempt to obtain any retail marijuana or marijuana product, the licensee or employee is authorized to confiscate such fraudulent proof of age, if possible, and shall, within 72 hours after the confiscation, remit it to a state or local law enforcement agency. The failure to confiscate such fraudulent proof of age or to remit to a state or local law enforcement agency within 72 hours after the confiscation does not constitute a criminal offense. Page 21 of 45 48 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. b. If a retail marijuana store licensee or employee believes that an individual is under 21 years of age and is exhibiting fraudulent proof of age in an attempt to obtain any retail marijuana or retail marijuana product, the licensee or employee, employee of the Division, or any law enforcement officer as defined in § 222 of Title 11, acting in good faith and upon reasonable grounds therefor, may detain and question such person in a reasonable manner for the purpose of ascertaining whether the person is guilty of any unlawful act regarding the purchase of retail marijuana. The questioning of an individual by an employee or a law enforcement officer does not render the licensee, the employee, or the law enforcement officer civilly or criminally liable for slander, false arrest, false imprisonment, malicious prosecution, or unlawful detention. (h) A retail marijuana store must provide a sample of its products to a facility that has a marijuana testing facility license for testing and research purposes as required by regulations adopted under this chapter. A retail marijuana store shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing. (i) All retail marijuana and retail marijuana products sold at a licensed retail marijuana store must be packaged and labeled as required by this chapter. (j) A retail marijuana store shall comply with all provisions of State and federal law in regard to individuals with disabilities. (k)(1) A retail marijuana store may only sell retail marijuana; retail marijuana products; marijuana accessories; nonconsumable products such as apparel; and marijuana related products, such as childproof packaging containers. A retail marijuana store is prohibited from selling or giving away any consumable product, including cigarettes or alcohol, or any edible product that does not contain marijuana, including sodas, candies, or baked goods. (2) A retail marijuana store may not sell any retail marijuana or retail marijuana products that contain nicotine or alcohol if the sale of the alcohol would require a license under this title. (3) A retail marijuana store may not sell retail marijuana or retail marijuana products over the Internet or deliver retail marijuana or retail marijuana products to a person not physically present in the retail marijuana store's licensed premises. (l) A display case containing marijuana concentrate must include the potency of the marijuana concentrate next to the name of the product using the standard established under this chapter. (m) A properly registered compassion center under § 4914A of Title 16 who is issued a retail marijuana store license issued under this subsection is considered a business registration separate and distinct from the registration issued under § 4914A of Title 16. Page 22 of 45 49 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (n) Marijuana or marijuana products may not be consumed on the premises of a retail marijuana store. § 1333. Marijuana testing facility licenses. (a) A marijuana testing facility license may be issued to a person who performs testing and research on retail marijuana under the terms and conditions of this chapter. A license issued under this section is valid for 2 years. Each application for a marijuana testing facility license must contain all of the following: (1) The application materials required by the Commissioner, including the location where the marijuana testing facility will operate. (2) The application fee in an amount determined by the Commissioner. (3) Materials required by § 1331(a)(3) and (4) of this chapter. (b) A marijuana testing facility licensee shall pay the Commissioner $10,000 biennially for the marijuana testing facility license. A marijuana testing facility licensee must renew the license biennially by paying the fee required by this subsection and by providing documentation of a labor peace agreement. (c) The Commissioner shall promulgate rules related to acceptable testing and research practices, including testing, standards; quality control analysis; equipment certification and calibration; chemical identification; identifying other substances; and other measurers used in bona fide research methods. (d) A person who has a financial interest in a marijuana testing facility license from the Commissioner for testing purposes may not have a financial interest in a registered compassion center, a marijuana cultivation facility, a marijuana products manufacturing facility, or a retail marijuana store. A person that has a financial interest in a registered compassion center, a marijuana cultivation facility, a marijuana products manufacturing facility, or a retail marijuana store may not have a financial interest in a facility that has a marijuana testing facility license or is a registered safety compliance facility. (e) Marijuana or marijuana products may not be consumed on the premises of a marijuana testing facility. § 1334. Marijuana cultivation facility licenses. (a) A marijuana cultivation facility license may be issued only to a person who cultivates retail marijuana for sale and distribution to licensed retail marijuana stores, marijuana products manufacturing licensees, or other marijuana cultivation facilities under the terms and conditions of this chapter. A license issued under this section is valid for 2 years. Each application for a marijuana cultivation facility license must contain all of the following: (1) The application materials required by the Commissioner, including the location where the marijuana cultivation facility will operate. (2) The application fee in an amount determined by the Commissioner. (3) Materials required by § 1331(a)(3) and (4) of this chapter. Page 23 of 45 50 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (b)(1) A marijuana cultivation facility shall pay the Commissioner biennially for a marijuana cultivation facility license as set forth in this subsection (b). A marijuana cultivation facility licensee must renew the license bienially by paying the fee set forth in this subsection (b) and by providing documentation of a labor peace agreement. (2) The license fee is based on the cannabis plant grow canopy area, which is calculated as follows: a. Square footage of a cannabis plant grow canopy area is measured horizontally starting from the outermost point of the furthest plant in a cannabis plant grow canopy area and continuing around the outside of all plants located within the cannabis plant grow canopy area. b. If a vertically tiered or shelving system is included in the cultivation area, the surface area of each tier or shelf must be included in calculating the cannabis plant grow canopy area. Vertical tiers or shelving systems may not exceed 24 feet in height. c. A cannabis plant grow canopy area is the total square feet in which a cannabis cultivator plants and grows cannabis plants, and does not include areas exclusively used for harvesting, drying, curing, packaging, labeling, or storing cannabis. (3) a. For an indoor facility with a cannabis plant grow canopy area less than or equal to 2,500 square feet or for an outdoor facility with a cannabis plant grow canopy area less than or equal to 1 acre, the fee is $2,500. b. For an indoor facility with a cannabis plant grow canopy area equal to or between 2,501 and 7,500 square feet or for an outdoor facility with a cannabis plant grow canopy area equal to or between 1.1 and 2.5 acres, the fee is $5,000. c. For an indoor facility with a cannabis plant grow canopy area between 7,501 and 10,000 square feet or for an outdoor facility with a cannabis plant grow canopy area equal to or between 2.6 and 5 acres, the fee is $7,500. d. For an indoor facility with a cannabis plant grow canopy area equal to or greater than 10,001 square feet or for an outdoor facility with a cannabis plant grow canopy area equal to or greater than 5.1 acres, the fee is $10,000. (c) A marijuana cultivation facility shall track the marijuana it cultivates from seed or immature plant to sale pursuant to subsection (a) of this section. (d) A marijuana cultivation facility must provide a sample of its products to a facility that has a marijuana testing facility license for testing and research purposes as required by regulations adopted under this chapter. A marijuana cultivation facility shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the testing results. Page 24 of 45 51 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (e) Marijuana or marijuana products may not be consumed on the premises of a marijuana cultivation facility. (f) No marijuana cultivation facility license may be issued for an indoor facility with a cannabis plant grow canopy area exceeding 12,500 square feet or for an outdoor facility with a cannabis plant grow canopy area exceeding 7.5 acres unless additional tiers are created by the Commissioner under subsection (h) of this section. (g) At the time of renewal under § 1334(b) of this chapter, a marijuana cultivation facility licensee may request a one tier increase in size each renewal period, as long as an updated safety, security and prevention of diversion plan is provided as required under § 1331(a)(3)c. of this chapter. (h) The Commissioner may create additional tiers under § 1334(b) of this chapter anytime 2 years after [the effective date of this Act] if demand requires additional tiers. § 1335. Marijuana product manufacturing facility license. (a) A marijuana product manufacturing facility license may be issued only to a person who manufactures and distributes marijuana products under the terms and conditions of this chapter. A license issued under this section is valid for 2 years. Each application for a marijuana product manufacturing facility license must contain all of the following: (1) The application materials required by the Commissioner, including the location where the marijuana product manufacturing facility will operate. (2) The application fee in an amount determined by the Commissioner. (3) Materials required by § 1331(a)(3) and (4) of this chapter. (b) A marijuana product manufacturing facility licensee shall pay the Commissioner $10,000 biennially for the marijuana product manufacturing facility license. A marijuana product manufacturing facility licensee must renew the license biennially by paying the fee required by this subsection and by providing documentation of a labor peace agreement. (c) A marijuana product manufacturing facility shall track all of its marijuana products from the point the marijuana is received from the retail marijuana cultivation facility until the products are transferred to a retail marijuana store. (d) A marijuana product manufacturing facility may not do any of the following: (1) Add any marijuana to a food product where the manufacturer of the food product holds a trademark to the food product's name; except that a manufacturer may use a trademarked food product if the manufacturer uses the product as a component or as part of a recipe and where the marijuana product manufacturer does not state or advertise to the consumer that the final retail marijuana product contains a trademarked food product. Page 25 of 45 52 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (2) Intentionally or knowingly label or package a retail marijuana product in a manner that would cause a reasonable consumer confusion as to whether the retail marijuana product was a trademarked food product. (3) Label or package a product in a manner that violates any federal trademark law or regulation. (e) Retail marijuana products shall be prepared in a marijuana product manufacturing facility that is used exclusively for the manufacture and preparation of retail marijuana or retail marijuana products and using equipment that is used exclusively for the manufacture and preparation of retail marijuana products. (f) All licensed premises on which retail marijuana products are manufactured must meet the sanitary standards for retail marijuana product preparation promulgated under this chapter and as applicable under all of the following: (1) Section 122(3)u of Title 16 and related regulations, the State of Delaware Food Code, § 4458 of Title 16 of the Delaware Administrative Code, and the Cottage Food Regulations, § 4458A of Title 16 of the Delaware Administrative Code. (2) Chapter 35 of Title 16. (3) Chapter 41 of Title 16. (4) Chapter 43 of Title 16. (g) All retail marijuana products must be shelf-stable and not require refrigeration to prevent spoilage. (h) A retail marijuana product must be sealed and conspicuously labeled in compliance with this chapter and any rules promulgated under this chapter. (1) A marijuana product manufacturing facility shall package and label each product manufactured as required by the rules established by the Commissioner, including the use of the standard symbol. (2) An edible retail marijuana product must list its ingredients and may list its compatibility with dietary practices. (3) The standard symbol requirements as established by the Commissioner do not apply to a multi-serving liquid retail marijuana product that is impracticable to mark if the product complies with all statutory and rule packaging requirements for multi-serving edibles and with all of the following enhanced requirements to reduce the risk of accidental ingestion: a. A multi-serving liquid is packaged in a structure that uses a single mechanism to achieve both child- resistance and accurate pouring measurement of each liquid serving in increments equal to or less than 10 milligrams of active THC per serving, with no more than 500 milligrams of active THC total per package. b. The measurement component is within the child-resistant cap or closure of the bottle and is not a separate component. Page 26 of 45 53 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (i) Retail marijuana or retail marijuana products may not be consumed on the premises of a marijuana product manufacturing facility. (j) A marijuana product manufacturing facility must provide a sample of its products to a facility that has a marijuana testing facility license for testing and research purposes as required by regulations adopted under this chapter. A marijuana product manufacturing facility shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing. Part B. Social Equity and Microbusiness Licenses. § 1336. Social equity applicant. A social equity applicant is a Delaware resident that meets one of the following criteria: (a) An applicant for any type of license with at least 51% ownership and control by 1 or more individuals who have resided for at least 5 of the preceding 10 years in a disproportionately impacted area. (b) An applicant for any type of license with at least 51% ownership and control by 1 or more individuals who meets one of the following criteria: (1) Was convicted of or adjudicated delinquent for any marijuana-related offense except any of the following: a. Delivery to a minor. b. Any marijuana offense with a Tier 3 quantity of marijuana as defined in § 4751(c) of Title 16. c. The functional equivalent of the offenses described in (b)(1)a. or b. of this section under the laws of the United States, any state or territory of the United States, or any other country. (2) Is married to or the child of a person who was convicted of or adjudicated delinquent for any marijuana- related offense. § 1337. Social equity application and fees. (a) A social equity license issued under Part B of this subchapter is valid for 2 years. Each application for a social equity license must contain all of the following: (1) The application materials required by the Commissioner. (2) The discounted application fee in the amount of $1,000. (3) Materials required by § 1331(a)(3) and (a)(4) of this chapter. (b) A social equity licensee shall pay the Commissioner biennially for the social equity license at a discounted rate of 40% of the applicable open license. A social equity licensee must renew the license biennially by paying the fee required by this subsection, providing confirmation that all of the criteria in § 1336 of this title are satisfied, and by providing documentation of a labor peace agreement. Page 27 of 45 54 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. § 1338. Technical assistance. The Commissioner shall develop a technical assistance program to aid social equity applicants in applying for a license and finding financial resources. The Commissioner may partner with the Division of Small Business to administer workshops to assist social equity applicants and licensees in applying for a license and operating a business. § 1339. Financial assistance. The Commissioner shall investigate opportunities for public and private sources of financial assistance that could support social equity applicants. §1340 Microbusiness license. A microbusiness applicant is an applicant for a marijuana cultivation facility license or a marijuana product manufacturing license who meets all the following criteria: (1) 51% ownership and control by 1 or more individuals who have resided in Delaware for at least 5 of the preceding 10 years. (2) Intends to employ no more than 10 employees. (3) Will not operate a facility with a cannabis plant grow canopy area greater than 2500 square feet. (4) Will not possess more than 1,000 marijuana plants each month. § 1341. Microbusiness application and fees. (a) A microbusiness license issued under Part B of this subchapter is valid for 2 years. Each application for a microbusiness license must contain all of the following: (1) The application materials required by the Commissioner. (2) The discounted application fee in the amount of $3,000. (3) Materials required § 1331(a)(3) and (a)(4) of this chapter. (b) A microbusiness licensee shall pay the Commissioner biennially for the microbusiness license at a discounted rate of 40% of the applicable open license. A microbusiness licensee must renew the license biennially by paying the fee required by this subsection and by providing confirmation that all of the criteria in § 1340 of this chapter are satisfied. § 1342. Conditional license. The Commissioner may grant a social equity or microbusiness applicant a conditional license under this section. Any applicant who receives a conditional license shall have 180 days from the date of the granting of the conditional license to identify a physical location for the location of the licensed premises. The proposed licensed premises must be approved by the Commissioner. If the applicant is unable to find a suitable physical address approved by the Commissioner within 180 days of issuance of the conditional license, the Commissioner may extend the period for finding a physical Page 28 of 45 55 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. address for another 180 days if the conditional licensee demonstrates concrete attempts to secure a location and a hardship to securing the location. If the Commissioner denies the extension of the conditional license or the licensee is unable to find a physical address approved by the Commissioner within the additional 180 days, the Commissioner shall rescind the conditional license. Part C. Issuance of All Licenses. § 1343. Licensing Process. (a) Beginning 13 months after [the effective date of this Act], the Commissioner shall begin accepting applications for all licenses, including open, social equity, and microbusiness licenses. (b) Beginning 14 months after [the effective date of this Act], the Commissioner shall begin issuing licenses. (c) Beginning 15 months after [the effective date of this Act], the Commissioner shall issue the following number of cultivation facility licenses provided a sufficient number of qualified applicants exist: (1) Indoor facility with a cannabis plant grow canopy area less than or equal to 2500 square feet or an outdoor facility with a cannabis plant grow canopy area less than or equal to 1 acre: a. 20 microbusiness licenses. b. 10 social equity licenses. (2) Indoor facility with a cannabis plant grow canopy area greater than 2500 square feet or an outdoor facility with a cannabis plant grow canopy area greater than 1 acre: a. 20 open licenses. b. 10 social equity licenses. (d) Beginning 16 months after [the effective date of this Act], the Commissioner shall issue the following number of product manufacturing facility licenses provided a sufficient number of qualified applicants exist: (1) 10 open licenses. (2) 10 social equity licenses. (3) 10 microbusiness licenses. (e) Beginning 19 months after [the effective date of this Act], the Commissioner shall issue the following number of licenses provided a sufficient number of qualified applicants exist: (1) Retail store licenses: a. 15 open licenses. b. 15 social equity licenses. (2) Testing facility licenses: Page 29 of 45 56 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. a. 3 open licenses. b. 2 social equity licenses. (f) Impossibility of performance because of opposition by localities or lack of qualified applications is a defense to any lawsuit brought against the Commissioner to comply with the issuance of the required number of licenses. (g) At any time 2 years after [the effective date of this Act], the Commissioner may accept applications for any type of license and issue licenses in excess of the numbers identified in this section for any of the following reasons: (1) The Commissioner determines that additional stores or facilities are needed. (2) The number of licenses for a particular type of license is less than the number permitted for that type of license in this section. §§ 1344-1350. Reserved. Subchapter IV. Determination of Applications. § 1351. Local control. (a) A municipality may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance or through an initiated or referred measure. (b) A municipality or county may enact ordinances or regulations that are not in conflict with this chapter or in conflict with regulations enacted by the Commissioner , governing the time, place, manner, and number of marijuana establishment operations. A municipality or county may establish civil penalties for violation of an ordinance or regulations governing the time, place, and manner that a marijuana establishment may operate in such municipality or county. § 1352. Procedural requirements governing Commissioner's action; hearing; appeal. (a) The Commissioner shall distribute and receive all of the applications for licensure under this chapter and shall refer an application to the Division for investigation. If it appears that any application should not be granted, the Commissioner shall timely notify the applicant stating the reason for denial. (b) Hearings on applications for licensure under this chapter. (1) If 10 or more persons who reside or own property within 1 mile of the premises where the license is to operate or in any incorporated areas located within 1 mile of the premises where the license is to operate file a protest against the issuance of the license with the Commissioner within 30 days from the filing of the application, then a hearing must be held to consider the application and protest and, specifically, the concerns of the members of the community within which the license is to operate. Page 30 of 45 57 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (2) The Commissioner may hold a hearing in the absence of a protest. (3) The Commissioner shall cause notice of the time and location of the hearing to be published in 2 consecutive issues of the same newspapers within which the applicant published notice of the applicant's application for the license. (4) The Commissioner shall send notice of the time and location of the hearing to the applicant and to each of the persons who signed the protest and provided a legible name and address; provided, however, that it is sufficient for the Commissioner to send notice to a legal agent representing a person. (5) The Commissioner shall conduct the hearing and shall make and keep a record of the hearing. The record must include the evidence, the Commissioner's findings of fact, the Commissioner's decision, and a brief statement of the reasons for the decision. (6) The Commissioner shall issue a written decision after the hearing. The Commissioner's decision must show the manner in which the Commissioner construed the law and applied it to the facts, must recite any objections presented by the community, and must show how and the extent to which the Commissioner took community concerns into account and gave them due consideration when making the decision. (c) The Commissioner's decision on an application must be in writing and is final and conclusive unless a party to such hearing files an appeal within 30 days from the date of the postmark on the Commissioner's decision by mailing notice of the appeal to the Commissioner’s office. Upon receipt of the appeal, the Commissioner shall notify the chair of the Appeals Commission of the pending appeal and the chair shall convene the Appeals Commission with at least 20 days' notice to all parties. The Appeals Commission shall hear the appeal and shall review the matter on the record; act in accordance with the Administrative Procedures Act, Chapter 101 of Title 29; and affirm, reverse, or modify the decision of the Commissioner. A decision of the Commissioner may only be reversed upon a finding of abuse of discretion. (d) A party who is aggrieved by a final decision of the Appeals Commission may file a written appeal with the Superior Court within 30 days of the date that the Appeals Commission's decision was mailed. The Superior Court's review of an appeal shall be on the record and in accordance with the Administrative Procedures Act, subchapter V of Chapter 101 of Title 29. The Superior Court's review shall take into account the experience and specialized competence of the Commissioner and the purpose under which the Commissioner acted. Further, the Superior Court's review, in the absence of fraud, shall be limited to whether the Commissioner's decision is supported by substantial evidence on the record and is free from legal error. § 1353. Decision upon application for renewal of license; time of making. Page 31 of 45 58 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. On or before the first day of the month preceding the biennial expiration date of a license, the Commissioner shall render a decision upon every application properly and completely made to it on or before the first day of the third month preceding the biennial expiration date of a license. § 1354. Grounds for refusal of license; transfer or extension of premises. (a) The Commissioner may not grant a license under this chapter in any county or subdivision thereof, if granting a license is contrary to the law of any municipality or county adopted under § 1351 of this chapter. (b) The Commissioner may refuse to license an applicant if the Commissioner has substantial evidence that would reasonably support a belief that any of the following apply: (1) There are sufficient licensed premises in the municipality or county, or the granting of a license in the municipality or county stated in the application is not otherwise demanded by public interest or convenience. (2) The applicant is financially irresponsible. (3) The applicant has made false statements to the Commissioner. (4) The applicant, including any of the applicant's directors or officers, or any of the applicant's shareholders who hold more than 10% of the outstanding issued shares, has been convicted of an offense that may impact the qualifications, functions, or duties of the business or profession for which the application is made, except that if the Commissioner determines that the applicant is otherwise suitable to be issued a license, and granting the license would not compromise public safety, the Commissioner shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant to be issued a license based on the evidence found through the review. In determining which offenses may impact the qualifications, functions, or duties of the business or profession for which the application is made, the Commissioner shall include the following: a. A violent Title 11 or Title 31 felony conviction as defined in §4201(c) of Title 11 or its functional equivalent under the laws of the United States, any state or territory of the United States, or any other country. b. Any Class A through C felony conviction as defined in Title 11 or its functional equivalent under the laws of the United States, any state or territory of the United States, or any other country. c. Any felony conviction regarding an offense against public administration as defined in Subchapter VI, Chapter 5, of Title 11 or its functional equivalent under the laws of the United States, any state or territory of the United States, or any other country. Page 32 of 45 59 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. d. A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor. e. Any felony conviction as defined in Chapter 47 of Title 16 or its equivalent under the laws of the United States, any state or territory of the United States, or any other country. f. Any felony conviction as defined in Chapter 5 of Title 30 or its equivalent under the laws of the United States, any state or territory of the United States, or any other country. (5) A substantial objection to the granting of the license has been presented by the community within which the license is to operate, or that the granting of such license is otherwise not in the public interest. For the purposes of this subsection, the term "substantial objection" includes 1 or more of the following: a. Any objection, or group of objections, presented to the Commissioner either individually or as a group, by persons who reside within 5 miles of where the licensee is to operate, sufficient to give the Commissioner reason to believe that a majority of the residents in that 5 mile radius within which the licensee is to operate oppose the issuance of the license. b. Any objection, or group of objections, presented to the Commissioner either individually or as a group, the content of which gives the Commissioner reason to believe the quality of life of the community within which the licensee is to operate will be adversely affected by the granting of the license. (c) Except as set forth in subsection (b) of this section, a prior conviction, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance may not be a ground for denial of a license. (d) The Commissioner may refuse to grant a license to sell marijuana, marijuana products, or marijuana accessories to any new establishment to be located in the vicinity of a church, school, college or substance abuse treatment facility as defined under § 2203 of Title 16. The Commissioner may issue a license to any establishment located in the vicinity of a church, school, or college when such establishment has been located in a place prior to the time any church, school, or college may thereafter be located in the vicinity of such establishment. (e) The Commissioner shall refuse to grant a license for the sale of marijuana, marijuana products, or marijuana accessories when there is an existing licensed establishment of the same type within 1200 feet by accessible public road or street in any incorporated city or town, or within 1 mile by accessible public road or street in any unincorporated or rural area. If there is an existing licensed establishment less than 1 mile but more than nine tenths of 1 mile by accessible public road or street in any unincorporated or rural area, the Commissioner may grant such license. This subsection does not apply to any of the following: Page 33 of 45 60 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (1) Any existing license or to the sale, transfer of ownership, or renewal of an existing license. (2) Any licensee who desires to move the location of the licensee’s license to a location within 500 feet thereof by accessible public road or street or any licensee located in a shopping center or shopping mall who desires to move the location of the licensee’s license any distance within the same shopping center or shopping mall, whether such center or mall consists of 1 or more than 1 separate buildings. (f) Any holder of an existing license who desires to move the location of the existing license due to the destruction of the building, loss of lease, diversion of highway traffic pattern, or other reason beyond the control of the licensee, shall have preference in the issuance of a new license provided that the application satisfies this section and all other requirements under this chapter. (g) The Commissioner may not grant a new license of any type and may not grant an extension of premises of an existing license of any type unless the application for said new license or for said extension is accompanied by a Certificate of Compliance from the appropriate political subdivision showing all of the following: (1) That the premises where the license is to be used are properly zoned for the applicant's intended use. (2) That all necessary permits have been approved. (3) That the applicant has complied with all other applicable licensing requirements of the appropriate political subdivision. (h) Subsection (g) of this section does not apply to any application for a temporary extension of premises as authorized by Commissioner rule if such application has not been objected to by the appropriate political subdivision and the political subdivision was provided with notice of the application by the applicant within 7 days of the date the application is filed with the Commissioner. § 1355. Finality of Commissioner's decision refusing license. If an application is not timely protested, but the Commissioner determines that the application should nevertheless be denied, the Commissioner shall render the decision promptly in writing. The Commissioner's decision shall be final and conclusive unless, within 30 days after notice thereof has been mailed by the Commissioner's office, the applicant files an appeal in the office of the Commissioner. The appeal shall follow the procedure outlined in § 1362 of this chapter. § 1356. Improvements to premises. The Commissioner may not require an applicant to make improvements to the premises before the issuance of a license; however, the Commissioner may issue a license to sell marijuana, marijuana products, or marijuana accessories upon the condition that certain improvements shall be made to the premises. Subchapter V. Cancellation or Suspension of License. Page 34 of 45 61 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. § 1361. Grounds for cancellation, suspension, or fines. (a) The Commissioner may cancel every license made use of on behalf of any person other than the one to whom or on behalf of whom it has been issued. (b) If the Commissioner has reasonable grounds to believe that a licensee has committed any of the violations in subsection (c) of this section, the Commissioner may do one or more of the following: (1) Suspend the licensee’s license. (2) Cancel the licensee’s license if the Commissioner determines the violations to be repeated and continuous, or egregious. (3) Fine the licensee. (c) It is a violation for a licensee to do any of the following: (1) Violate any provision of this chapter, any regulation of the Commissioner, or any applicable regulation of the Department of Health and Social Services. (2) Make any false representation or statement to the Commissioner in order to induce or prevent action by the Commissioner. (3) Not maintain an acceptable bond, if a bond is required. (4) Maintain a noisy, lewd, disorderly, or unsanitary establishment or supply impure or otherwise deleterious marijuana or marijuana products. (5) Habitually use dangerous or narcotic drugs, or habitually uses alcoholic beverages or marijuana to excess. (6) Sell marijuana or marijuana products to minors in contravention of § 1313 of this chapter. (7) Possess on the licensee's licensed premises or sell or offer for sale any marijuana or marijuana products not purchased or sold in compliance with this chapter. (8) Use any seal, labels, or wrapper not purchased from or through the Commissioner which are deceptively similar to those used by the Commissioner. (9) Be convicted of a felony or be convicted of violating any of the marijuana laws of this State, general or local, including the provisions of this chapter. (10) Admit guilt or be adjudged guilty of violations of local, municipal, county, or State regulations, ordinances, or codes related to the operation of a licensed premises. (11) Discipline, threaten, or otherwise penalize any person for refusing to violate or aiding the enforcement of the provisions of this chapter or the rules of the Commissioner. Page 35 of 45 62 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (d) Notwithstanding subsection (b) of this section, the Commissioner may cancel or suspend a license if there is any other reason which, in the opinion of the Commissioner, warrants cancelling or suspending the license. (e) The Commissioner may not cancel or suspend any license for the sale of marijuana products or impose any fine for an alleged violation of § 1307 or § 1313 of this chapter where the licensee or its employee has made a reasonable effort to determine the age of a purchaser of the marijuana products. For purposes of this subsection, a licensee or its employee is deemed to have made a reasonable effort to determine the age of a purchaser if, prior to any sale of marijuana products, the licensee or its employee requires the purchaser to display identification, with a photograph of the purchaser thereon affixed, which sets forth information that would lead a reasonable person to believe the purchaser to be 21 years of age or older. (f) The Commissioner may also suspend a license for any of the grounds for refusal of a license under § 1354 of this chapter. (g) The Commissioner may cancel any retail license if it has reasonable grounds to believe that the license was granted in violation of this chapter, or any regulation enacted pursuant to § 1331 of this chapter. § 1362. Public hearing and right of appeal. (a) The Commissioner may not cancel or suspend a license, or fine a licensee, before both of the following occur: (1) The licensee has been given a public hearing by the Commissioner at which time the licensee is entitled to legal representation and to present witnesses. (2) The ground for canceling or suspending a license is established by clear and convincing evidence. (b) The Commissioner shall keep a full and complete record of all proceedings incident to a hearing under subsection (a) of this section. The Commissioner shall record all testimony at such hearing, but need not have it transcribed unless an order of the Commissioner is appealed to the Superior Court under subsection (c) of this section. (c) An order of the Commissioner relative to suspension or cancellation of a license, or fining a licensee, becomes final 10 days after the licensee receives notice thereof, unless, within 10 days of the date of the postmark on the Commissioner's decision, a written appeal is filed in the Superior Court. No bond may be required for filing such appeal. (d) The appeal must state the grounds upon which a review is sought. After the appeal is filed, service shall be made by the Sheriff upon the Commissioner. The Commissioner shall certify and file with the court all documents and papers and a transcript of all testimony taken in the matter, together with the Commissioner's findings therein as soon as practicable but in no event later than 20 calendar days from the date of service of the appeal. The Superior Court's review of an appeal shall be on the record and the Superior Court shall take into account the experience and specialized competence of the Commissioner and the purpose under which the Commissioner acted. Further, the Superior Court's review, in the Page 36 of 45 63 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. absence of fraud, shall be limited to whether the Commissioner's decision is supported by substantial evidence on the record and is free from legal error. (e) An appeal without bond may be taken from the decision of the Superior Court to the Supreme Court in the same manner as is provided in civil cases. Upon the final determination of judicial proceedings, the Commissioner shall enter an order in accordance with such determination, or shall take such further or other action as the Court may order. A petition for Supreme Court review shall act as a supersedeas. § 1363. Effect of cancellation or surrender of license; notice. (a) The cancellation or acceptance of a surrender of a license entails the loss of the privilege conferred by the license and entails the acceptance of or the seizure by the Commissioner of any marijuana or marijuana products found in the possession of the licensee, except those which occur solely by reason of the death of the licensee. (b) Notice of the order of the cancellation or acceptance of the surrender of a license may be served by an officer designated by the Commissioner; by affixing a duplicate thereof to the outside of the entrance door of the licensed premises; by leaving a duplicate with the holder of the license, or with any member of the family of the holder over the age of 18 years at the residence of the holder; or otherwise as in the judgment of the Commissioner will give notice of such cancellation or acceptance of the surrender. All cancellations or acceptances of surrender of a license take effect as soon as the order is served. (c) The cancellation or acceptance of surrender of a license does not prevent the filing of any criminal proceedings for any offense against the licensee while the license was in force. No conviction obtained for any offense prevents the Commissioner from cancelling a license or from making at the same time a seizure of marijuana or marijuana products as provided in this title. (d) The Commissioner shall adopt regulations for seizure of marijuana and marijuana products that preserves and does not destroy the marijuana or marijuana products. § 1364. Payments to former licensee. The Commissioner shall, within 30 days of the date of the cancellation or acceptance of surrender of a license, remit to the former licensee a part of the license fee which has been paid and pertains to the unexpired term of the license. In addition, the Commissioner shall remit to the former licensee the amount originally received by the Commissioner from the former licensee in payment for such marijuana or marijuana products accepted or seized as remains in packages sealed by the Commissioner, after paying or deducting therefrom all reasonable costs and expenses incurred by the Commissioner by reason of the acceptance or seizure of the marijuana or marijuana products of the former licensee. When other legally acquired marijuana or marijuana products have been accepted or seized under this section, the fair market value thereof as Page 37 of 45 64 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. determined by the Commissioner must be remitted by the Commissioner to the former licensee, after paying or deducting therefrom all reasonable costs and expenses incurred by the Commissioner by reason of the acceptance or seizure of the marijuana or marijuana products of the former licensee. No payment may be made for illegally acquired marijuana or marijuana products that have been seized under this section. Subchapter VI. Transfer of License; Death of Licensee § 1366. Transfer of license. (a) The rights conferred by a license may be transferred by the Commissioner to any representative designated by the person to whom or on behalf of whom the license was originally granted, if such representative is a person approved by the Commissioner. In the case of death of a licensee, the Commissioner may transfer the license to a qualified person recommended by the executor or administrator of the estate of the deceased licensee. (b) In instances where the Commissioner has approved the transfer of a license, all matters concerning marijuana inventories must be handled directly between the transferor and the transferee and all payments must be made directly and not through the Commissioner. (c) A social equity or microbusiness license may not be transferred to a person who would not meet the criteria for the issuance of an original social equity or microbusiness license. § 1367. Death of licensee; payments to licensee's estate. If any licensee dies and no application is made for transfer of the license, or the Commissioner refuses to permit the transfer of the license to another person, the Commissioner shall return to the legal representative of such deceased licensee a share of the license fee received by the Department proportionate to the number of full calendar months of the unexpired term. If the marijuana or marijuana products in possession of the licensee at the time of the licensee's death are delivered to the Commissioner and the Commissioner ascertains that such marijuana or marijuana products have been received by the deceased licensee according to law, the Commissioner must pay to the legal representative the amount originally received by the Commissioner for such marijuana or marijuana products less 10% thereof, or the appraised value less 10% thereof. §§ 1368-1370. Reserved. Subchapter VII. Owner and Financial Interests of Licensee. § 1371. Commissioner approval. The commissioner may refuse approval of changes in the ownership, officers, or directors, financial interest, or lease in connection with any license. No such change shall be implemented until reported to and approved by the Commissioner. Page 38 of 45 65 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. § 1372. Change in ownership. (a) In order to change ownership of a license, all of the following must be filed with the Commissioner on behalf of the new owner or owners: (1) An application. (2) A financial statement of the new owner or owners. (3) Personal financial statements of all individuals, partners, or stockholders holding at least 10 percent of the corporate stock. (4) A copy of the agreement of the terms of the sale or other exchange of financial interest, including stock distribution. (5) Copy of all documents explaining interest and profit/loss distribution. (6) Any application fee required by the Commissioner. (7) Any other documents requested by the Commissioner. (b) A change in ownership includes a change in the entire ownership, change in the partial ownership, or the sale or exchange of shares of stock by stockholders. § 1374. Change in officers or directors. A person elected as an officer or director of a licensee must notify the Commissioner within 7 days of the election and provide all information requested by the Commissioner. § 1374. Changes in financial interest. No person may obtain a financial interest in a license or licensee without doing all of the following: (1) Notification to the Commissioner. (2) Providing all information and documents requested by the Commissioner. § 1375. Fees. If there is a change in ownership or financial interest more than 10%, a fee of $5,000 or 15% of the value of the transaction, whichever is higher, is required. Subchapter VIII. Marijuana Regulation Fund; Taxes. § 1381. Marijuana Regulation Fund; Justice Reinvestment Fund. (a) The Marijuana Regulation Fund is established as a special fund of the State consisting of fees collected, civil penalties imposed under this chapter, and a portion of taxes imposed under this subchapter. The Office of the State Treasurer shall administer the Fund. Page 39 of 45 66 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (b) The Justice Reinvestment Fund is established as a special fund of the State consisting of a portion of taxes imposed under this subchapter as set forth in § 1387 of this subchapter. § 1382. Levy and rate of marijuana tax; collection. (a) A tax is imposed on the retail sale of marijuana products under this chapter in this State. This tax is not imposed on the sale of medical marijuana products under Chapter 49A of Title 16. (b) The tax imposed under this section is at the rate of 15% of the retail sales price of the marijuana product. (c) If the tax imposed under this section does not equal an amount calculable to a whole cent, the tax shall be equal to the next higher whole cent. (d) The amount of tax shall be separately stated on an invoice, receipt, or other similar document, in the manner directed by the Director of Revenue, that the marijuana retailer provides to the consumer at the time the retail sale occurs. (e) A person may not knowingly sell, purchase, install, transfer, or possess electronic devices or software programs for the purposes of either of the following: (1) Hiding or removing records of retail sales of marijuana products. (2) Falsifying records of retail sales of marijuana products. (f) A marijuana retailer may not discount a marijuana item or offer a marijuana item for free if the retail sale of the marijuana item is made in conjunction with the retail sale of any other item. § 1383. Collection and administration of the marijuana tax; mandatory reports; preemption. (a) The marijuana tax imposed on the consumer under § 1382 of this chapter shall be collected at the point of sale and remitted by each retail marijuana store licensee that engages in the retail sale of marijuana products. The marijuana tax is considered a tax upon the retail marijuana store licensee that is required to collect the tax, and the retail marijuana store licensee is considered a taxpayer. (b) A retail marijuana store licensee shall file a monthly report to the Commissioner, the Division of Revenue, and the Division of Alcohol and Tobacco Enforcement. (c) A retail marijuana store licensee shall pay the marijuana tax to the Division of Revenue in the form and manner prescribed by the Director of Revenue, but not later than with each monthly report. (d) Except to the extent inconsistent with specific provisions of this chapter, the provisions of Chapter 5 of Title 30 shall govern the assessment, collection, review, and appeal of deficiencies of tax imposed by this title, and any interest and penalties thereon, and claims for refund of overpayment of taxes imposed by this chapter. Page 40 of 45 67 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (e) The fees, charges, and taxes imposed by the State under this chapter shall be in lieu of all county and municipal license fees and taxes upon the business of selling, growing, and manufacturing marijuana as such. Provided however, general occupational licenses fees and general taxes imposed uniformly on everyone within the class are not preempted. (f) Any information set forth or disclosed in any report or return required under or as a result of this section, including any information which is required to be attached or included on any report or return required under or as a result of this section, is subject to the provisions of § 368 of Title 30. § 1384. Retention of records by retail marijuana store licensee; penalties. (a) Each retail marijuana store licensee shall maintain and keep, for a period of 3 years, such records of marijuana products sold within this State by such retail marijuana store licensee, together with invoices, bills of lading, and other pertinent records and papers as may be required by the Commissioner for the reasonable administration of this chapter. (b) A person who violates this section is subject to a civil penalty of up to $1,000 and may be charged the costs of an enforcement action. § 1385. Discontinuance, sale, or transfer of business by retail marijuana store licensee; penalties. (a) Whenever a person ceases to engage in business as retail marijuana store licensee within this State, all taxes, penalties, and interest under this chapter not yet due and payable under the provisions of this chapter shall, notwithstanding such provisions, become due and payable concurrently with the discontinuance, sale, or transfer, and the retail marijuana store licensee shall concurrently with such discontinuance, sale, or transfer make a report and pay all such taxes, interest, and penalties. (b) If a retail marijuana store license is transferred under § 1366 of this chapter, the purchaser or transferee shall be liable to this State for the amount of all taxes, penalties, and interest under this chapter, accrued against any retail marijuana store licensee selling or transferring a business, on the date of such sale or transfer, but only to the extent of the value of the property and business thereby acquired from such distributor or retailer. (c) A person who violates this section is subject to a civil penalty of not less than $50 nor more than $500. § 1386. [Reserved] § 1387. Deposit of receipts. (a) All money received by the Division of Revenue under this chapter shall be allocated as follows: (1) All marijuana tax money and all money received through fees or other mechanisms must be deposited in accordance with § 6103(a) of Title 29 and credited to the Marijuana Regulation Fund. (2) Each month, 7% of total marijuana tax money received from the preceding month shall be withdrawn from the Marijuana Regulation Fund and credited to the Justice Reinvestment Fund. Page 41 of 45 68 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. (b) The State Treasurer shall invest the Funds consistent with the investment policies established by the Cash Management Policy Board. The State Treasurer shall credit interest to the Funds on a monthly basis consistent with the rate established by the Cash Management Policy Board. § 1388. Appropriation of revenue. (a) The funds in the Marijuana Regulation Fund in each fiscal year must be appropriated by the General Assembly as follows: (1) To the administrative costs and expenses of the Commissioner and the Division, including administrative expenses, including payroll and other employment costs. (2) To the administrative costs and expenses of the Criminal Justice Council incurred to administer the Justice Reinvestment Fund. (2) After the payment under paragraphs (a)(1) and (2) of this section, and the transfer to the Justice Reinvestment Fund set forth in § 1387(a)(2) of this title, any remainder may be appropriated as determined by the General Assembly. (b) The funds in the Justice Reinvestment Fund in each fiscal year shall be appropriated to the Criminal Justice Council to administer grants, contracts, services, or initiatives that focus on any of the following: (1) Restorative justice, jail diversion, workforce development, industry specific technical assistance or mentoring services for economically disadvantaged persons in disproportionately impacted areas. (2) Addressing the underlying causes of crime, reducing drug-related arrests, and reducing the prison population in this state. (3) Creating or developing technology to assist with the restoration of civil rights and expungement of criminal records. Any remainder in the Fund at the end of a fiscal year is not subject to reversion. § 1389. Financial statements of the Commissioner. The Commissioner shall render an account to the State Treasurer, in the manner and at the time required by the latter, of its receipts and disbursements, and of its assets and liabilities. The State Treasurer may not, however, require such reports to be rendered more often than quarterly. § 1390. Annual audit. The State Auditor of Accounts shall annually examine and audit the operation of the Office of the Commissioner. Section 5. Amend § 1903, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: Page 42 of 45 69 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. § 1903. Computation of taxable income. (a) The “entire net income” of a corporation for any income year means the amount of its federal taxable income for such year as computed for purposes of the federal income tax increased by: (1) Any interest income (including discount) on obligations issued by states of the United States or political subdivisions thereof other than this State and its subdivisions, and (2) The amount of any deduction allowed for purposes of the federal income tax pursuant to § 164 of the Internal Revenue Code (26 U.S.C. § 164) for taxes paid on, or according to or measured by, in whole or in part, such corporation’s net income or profits, to any state (including this State), territory, county or political subdivision thereof, or any tax paid in lieu of such income tax, and its federal taxable income shall be further adjusted by eliminating: j. An amount equal to the ordinary and necessary business expenses paid or incurred for the taxable year by a marijuana business operating pursuant to Chapter 13 of Title 4 or Chapter 49A of Title 16, which is disallowed as a deduction for federal purposes pursuant to § 280E of the Internal Revenue Code. Section 6. Amend Subchapter II, Chapter 16, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: § 1625. Special rules for certain tax deductions for pass-through entities. (a) Definitions. As used in this section: (1) “Qualified business” means a pass-through entity operating a marijuana establishment pursuant to Chapter 13 of Title 4 or Chapter 49A of Title 16. (2) “Qualified expenses” mean the ordinary and necessary business expenses paid or incurred for the taxable year in carrying on a qualified business, which are disallowed as a deduction for federal purposes pursuant to § 280E of the Internal Revenue Code (b) Deduction. A pass-through entity operating a qualified business may deduct its qualified expenses in computing its total income. Section 7. Amend § 581, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: § 581. Inspection of returns by federal, state and local officials. (b) Notwithstanding any other provision of this section or § 368 of this title, the Director is specifically authorized to enter into an agreement with the Department of Labor, the Office of the State Bank Commissioner, the Department of Natural Resources and Environmental Control, the Division of Motor Vehicles, the Division of Alcohol and Tobacco Enforcement, the Division of Medicaid and Medical Assistance, the Enhanced 911 Emergency Service Board, the Page 43 of 45 70 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. Marijuana Commissioner, or the Alcoholic Beverage Control Commissioner to provide for the inspection of any tax return filed under this title (other than Chapters 30, 51, and 52) or under Title 4; provided, however, that such inspection shall be pursuant to the Department of Labor’s duties under Title 19, the Office of the State Bank Commissioner’s duties under Title 5, the Department of Natural Resources and Environmental Control’s duties under Title 7, the Division of Motor Vehicles’ duties under Title 21, the Division of Alcohol and Tobacco Enforcement’s duties under Titles 4 and 11, the Division of Medicaid and Medical Assistance’s duties under Title 16, the Enhanced 911 Emergency Service Board’s duties under Title 16, the Marijuana Commissioner’s duties under Title 4, or the Alcoholic Beverage Control Commissioner’s duties under Title 4, and may be subject to such additional requirements as may be imposed by the Director. Section 8. Amend § 2901, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: § 2901. Definitions. As used in this chapter: (8) “Gross receipts”: a. In the case of a retailer, “gross receipts” includes total consideration received for all goods sold or services rendered within this State, but shall not include tobacco products taxes or motor fuel taxes paid or payable to the State under Part IV of this title title, marijuana products taxes paid or payable to the State under Title 4, or gasoline and special fuel taxes paid or payable to the federal government under Internal Revenue Code § 4041 [26 U.S.C. § 4041] or § 4081 [26 U.S.C. § 4081]; or receipts derived from the sale of petroleum products provided such products were sold to the retailer by a person who is licensed under this chapter and such sale is described in the definition of “gross receipts” with regard to such person. Section 9. Amend § 1448, Title 11 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: § 1448. Possession and purchase of deadly weapons by persons prohibited; penalties. (a) Except as otherwise provided in this section, the following persons are prohibited from purchasing, owning, possessing, or controlling a deadly weapon or ammunition for a firearm within the State: (9) Any person, if the deadly weapon is a semi-automatic or automatic firearm, or a handgun, who, at the same time, possesses a controlled substance in violation of § 4763, or § 4764 4763 of Title 16. Section 10. Amend § 501, Title 30 by making deletions as shown by strike through and insertions as shown by underline as follows: § 501. Application of this chapter. Page 44 of 45 71 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. For tax periods beginning on or after January 1, 1992, except where in conflict with a specific provision within another chapter of this title or, where applicable, a specific provision of Title 4 or Title 16 or a rule of the Delaware Alcoholic Beverage Control Commission, Commission or the Marijuana Commissioner, this chapter shall govern the administration, procedures and enforcement of the State revenue laws provided for under Parts II, III, IV (except Chapters 51 and 52), V, and VI of this title; subchapter VII of Chapter 5 and subchapter VII of Chapter 13 of Title 4; and Chapter 101 of Title 16. Section 11. The Commissioner, in consultation with the Oversight Committee shall provide the Chairs of the Joint Finance Committee of the General Assembly with a quarterly report, beginning January 1 after the enactment date of this Act and continuing for 2 years, regarding the progress towards implementation and any potential barriers towards timely issuance of licenses and commencement of retail sales. Section 12. If any provision of this Act or the application of this Act to any person or circumstance is held invalid, the provisions of this Act are severable if the invalidity does not affect the other provisions of this Act that can be given effect without the invalid provision or the application of this Act that can be given effect without the invalid application. Section 13. The regulations required by § 1331 of Title 4 must be adopted not later than 1 year after the effective date of this Act. Section 14. When funds have been appropriated for implementation of this Act, the Controller General shall provide notice to the Registrar of Regulations that the funds required to implement this Act have been appropriated. Section 15. This Act takes effect upon the later of the following: (a) Publication in the Register of Regulations of a notice by the Controller General that the funds required to implement this Act have been appropriated. (b) Upon enactment. Page 45 of 45 72 HD : KL : MAW : 2141520002 Released: 03/28/2023 04:39 PM LC : HVW : CBM : 5081520035

Item 3. IMPACT REPORT 2023-2024 Lessons Learned from State Marijuana Legalization 73 www.learnaboutsam.org

Item 3. IMPACT REPORT OUTLINE I. Data and policy background a. A snapshot b. Research on marijuana harms c. Key outcomes II. Commercialization: a growing concern a. High-potency marijuana b. Not only potency, but consumption levels: What do users look like today? c. State regulatory frameworks struggle to keep up with the number of licensed shops. III. Adverse health effects of marijuana a. Marijuana and pregnancy b. Marijuana and co-use with other substances i. Marijuana’s association with alcohol and other drugs ii. Marijuana vaping c. Emergency department and hospital admissions IV. Impact on youth V. Impact on young adults VI. Impact on communities of color and low-income populations VII. Impact on homelessness VIII. Impact on impaired driving IX. Impact on crime X. Impact on the illicit market XI. Tax revenue from legalization XII. Localities opt-out of retail marijuana XIII. “Legal” products are unsafe XIV. Impact on the environment XV. Canada XVI. Impact on pets XVII. References www.learnaboutsam.org 74

Item 3. DATA AND POLICY BACKGROUND Contrary to federal law, under which the possession and sale of marijuana are illegal (Controlled Substances Act, 1971), several states have legalized the cultivation, commercial sale, and use of marijuana, beginning in 2012. Despite this, dozens of states continue to reject the legalization of marijuana. The vast majority of localities in “legal” states also ban the production and retail sale of marijuana. Marijuana remains illegal at the federal level, although pro-marijuana lobbyists are actively working to undue this. Smart Approaches to Marijuana (SAM) compiled publicly available federal and state-level data, reports, investigatory findings, peer-reviewed studies, and government health surveys to assemble this report. We have attempted to be as transparent as possible in our evaluation so as to allow readers to trace our steps and further their own research. For example, in reviewing the Substance Abuse and Mental Health Services Administration (SAMHSA) data taken from the National Survey on Drug Use and Health (NSDUH), we included data from the District of Columbia in our assessment of “legal” jurisdictions. They have legalized marijuana to some degree, although their measures differ from traditional recreational marijuana programs because they continue to prohibit commercial sales. A note on 2020 and 2021 data: the data collected during 2020 and 2021 are unique because of the COVID-19 pandemic and the change in behaviors observed by many Americans. School-age children spent their time learning at home and were less influenced by peers, fewer drivers were on the road during peak crash times, but drivers overall were more reckless, many bars and restaurants were closed for long periods of time, and many employees worked from home. On the inverse, millions of Americans struggled with their mental health, overdose deaths skyrocketed, and many Americans missed healthcare appointments and postponed care. Because each state’s COVID-related regulations were different, national-level data is difficult to scrutinize. The data should be observed through this lens. If the data need additional qualifiers, we have noted that. POTENCY THE AVERAGE POTENCY OF MARIJUANA FLOWER INCREASED FROM 1995 3.75% THC 3.75% THC IN 1995 TO 15.80% IN 2018 ELSOHLY, 2019 2018 15.80% THC 0 5 10 15 20 1 75

Item 3. USE DATA 52.5 MILLION AMERICANS used marijuana in 2021 vs. 17.5 Million Americans used marijuana in 1992 NSDUH 2021 50 PAST YEAR PAST MONTH DAILY 43% USE IS INCREASING 40 ACROSS THE BOARD, BUT ESPECIALLY IN YOUNG 30 29% 29% ADULTS AGED 19-30: 29% reported past-month use in 2021 up from 17% in 2011; 11% 20 17% reported daily use, up from 8% in 11% 2011 10 8% MTF 2021 0 2011 2021 100 WHILE THE USE OF MARIJUANA IS STEADILY 80 78.6% 60 40 40.6% 21.6% INCREASING, THE 20 12.7% PERCEPTION OF HARM 0 1991 2021 1991 2021 FROM USING MARIJUANA OCCASIONAL USE REGULAR USE IS DECREASING, 12TH GRADERS PERCEPTION OF MARIJUANA’S HARM MONITORING THE FUTURE, 2022B ESPECIALLY AMONG HIGH SCHOOLERS 2 76

Item 3. 30% of marijuana users have some form of marijuana use disorder National Institute on Drug Abuse, 2019a USE BEFORE THE AGE OF 18 INCREASES THE LIKELIHOOD OF MARIJUANA USE DISORDER BY SEVEN FOLD National Institute on Drug Abuse, 2019a LEGALIZATION IS ASSOCIATED WITH A 25% INCREASE IN 25% MARIJUANA USE DISORDER AMONG 12–17-YEAR-OLDS CERDÁ ET AL., 2020 3 77

Item 3. VAPING MARIJUANA IS ALSO UP ACROSS THE BOARD, ESPECIALLY FOR YOUTH 30 17.9 20 MILLION 10.4 MILLION 10 3.2 2.4 MILLION 1.3 MILLION MILLION 0 IN 2020, 34.5 MILLION INDIVIDUALS 12 OR OLDER REPORTED VAPING NICOTINE IN THEIR LIFETIME; 17.9 MILLION OF THOSE WERE WITHIN THE PAST YEAR, AND 10.4 MILLION WERE WITHIN THE PAST MONTH. AMONG THOSE AGED 12–17, 3.2 MILLION REPORTED HAVING USED A NICOTINE VAPE BEFORE; 2.4 MILLION OF THOSE VAPED NICOTINE IN THE PAST YEAR, AND 1.3 MILLION DID SO IN THE PAST MONTH (WHICH IS NOTABLY HIGHER THAN ALL OTHER FORMS OF CONSUMING NICOTINE) SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION, 2020A Between 2017 and 2019, dabbing at least once increased by 47.8%, and dabbing usually increased by 178.6%. Vaping at least once increased by 70.0%, and vaping usually increased by 185.7% COLORADO DEPARTMENT OF PUBLIC HEALTH & ENVIRONMENT, 2021 2017 9.5% BETWEEN 2017 AND 2021, THE PERCENTAGE OF 12TH GRADERS WHO VAPED MARIJUANA IN THE PAST YEAR INCREASED FROM 2021 18.3% 9.5% TO 18.3% MONITORING THE FUTURE, 2022A 0 5 10 15 20 4 78

Item 3. PUBLIC HEALTH 1,000,000 804,285 IN THE UNITED STATES, 800,000 THERE WERE 804,285 MARIJUANA RELATED ,617 EMERGENCY DEPARTMENT 48 VISITS HAVE INCREASED 600,000 +3 SINCE 2011 400,000 2011 & 2021 DRUG ABUSE WARNING NETWORK 455,668 200,000 MARIJUANA USERS WERE NEARLY 25% MORE LIKELY THAN NON-USERS TO GO TO THE ER OR BE HOSPITALIZED LIKELIHOOD OF NEEDING EMERGENCY SERVICES VOZORIS ET AL., 2022 100% 80% “Colorado has reported a 46% increase in hospitalizations due to Cannabis 60% Hyperemesis cyclical vomiting in just five years after the legalization of recreational cannabis” 40% 22% G. S. WANG ET AL., 2021 20% 0% 0% 2,400 NON-USERS MARIJUANA 2,313 USERS 1,800 % 267 EMERGENCY DEPARTMENT VISITS + AND ADMISSIONS RELATED TO 1,200 MARIJUANA ABUSE IN CALIFORNIA IS UP 89% FOLLOWING LEGALIZATION 89% 600 630 CALIFORNIA OFFICE OF STATEWIDE HEALTH PLANNING ANDV DEVELOPMENT, 2019 0 MARIJUANA-RELATED 2012 2020 HOSPITALIZATIONS IN COLORADO PER 100,000 SINCE LEGALIZATION 148% MARIJUANA-INDUCED ER ADMISSIONS IN ARIZONA HAVE INCREASED 148% ARIZONA DEPARTMENT OF HEALTH SERVICES COLORADO DIVISION OF CRIMINAL JUSTICE, 2021 5 79

Item 3. 2500 2,473 NATIONALLY, THERE WERE 2000 2,473 IN-HOME THC EXPOSURES 1,375% INVOLVING CHILDREN YOUNGER 1500 THAN 12 IN 2020, UP FROM 598 IN 2018 1000 RUSSO, 2021 598 500 2018 2019 2020 586% INCIDENCE OF CANNABIS CALLS TO POISON CONTROL IN MASSACHUSETTS 1.1 Colorado 1.2 0.9 0 % FROM 2012 TO 2019, THERE WAS A PER 100,000 +14 0.6 586% INCREASE IN CALLS TO POISON CHILDREN CONTROL IN COLORADO FOR 0.3 MARIJUANA-RELATED INCIDENCES IN 0.4 CHILDREN BETWEEN 0-5 0 COLORADO DEPARTMENT OF PUBLIC SAFETY, 2021 2009-2012 2013-2016 (BEFORE MEDICAL (AFTER MEDICAL MARIJUANA MARIJUANA LEGALIZATION) LEGALIZATION) INCREASES IN LEGAL STATES 214.5% 72% FOR MARIJUANA-RELATED Washington Illinois POISON CONTROL CALLS: WASHINGTON POISON CENTER, 2019 EMERSON, 2022 6 80

Item 3. IMPAIRED DRIVING If marijuana were legalized nationwide, the U.S. would suffer an additional 6,800 excess fatal crashes every year KAMER ET AL., 2020 Among Colorado drivers who underwent confirmatory testing for Delta-9 THC between 2016 and 2019 Tested Tested positive for positive Tested a THC level for a THC 89.7% positive 33.7% 49.2% between level for THC 1.0 and 5.0 above 5.0 ng/ml ng/ml ROSENTHAL & REED, 2022 23.4% 2020 24.3% % 6 .7 +1 6.7% 14.8% 2013 0 20% 40% 60% 2004 2017 IN MICHIGAN AMONG THOSE FATAL IN 2020, 24.3% OF DRIVERS INVOLVED CRASHES WHERE CANNABIS WAS TESTED, IN TRAFFIC FATALITIES TESTED THE PROPORTION OF TESTS THAT WERE POSITIVE FOR MARIJUANA, UP FROM POSITIVE FOR CANNABINOIDS MORE 14.8% IN 2013 THAN TRIPLED OVER 13 YEARS (6.7% IN ROCKY MOUNTAIN HIGH INTENSITY DRUG TRAFFICKING 2004 TO 23.4% IN 2017). AREA, 2021 UNIVERSITY OF MICHIGAN INJURY PREVENTION CENTER, 2022, P. 12 7 81

Item 3. 1 IN 4 ROAD DEATHS IN COLORADO INVOLVE MARIJUANA COLORADO DIVISION OF CRIMINAL JUSTICE, 2020. OF TEEN DRIVERS WHO USE 48.8% MARIJUANA REPORT DRIVING UNDER THE INFLUENCE LI ET AL., 2020 131 IN COLORADO, THERE WERE 131 MARIJUANA- RELATED TRAFFIC FATALITIES IN 2020, UP FROM 20.1% 55 IN 2013––THE PERCENTAGE OF FATAL CRASHES THAT INVOLVED MARIJUANA NEARLY DOUBLED 55 OVER THAT TIME PERIOD, INCREASING FROM 11.4% 11.4% TO 20.1% ROCKY MOUNTAIN HIGH INTENSITY DRUG TRAFFICKING AREA, 2021 2013 2020 60% OF PAST 3-MONTH USERS IN VIRGINIA REPORTED DRIVING WHILE UNDER THE INFLUENCE IN THE LAST FEW MONTHS 26% REPORTED DRIVING UNDER THE INFLUENCE OF MARIJUANA AT LEAST ONCE A WEEK STRATACOMM, 2022 8 82

Item 3. ILLICIT MARKET 70-80% of marijuana sold in state-legal dispensaries in California was produced and grown illegally NBC NEWS, 2022 91 1,330,766 2 In 17.3 In 53.0 cr X ea cr ea X se se 11 76,753 5,260 2018 2020 2021 2020 2021 THE OREGON-IDAHO HIDTA SEIZED THE NUMBER OF CLANDESTINE 1,330,766 ILLICIT MARIJUANA PLANTS IN LABORATORIES SEIZED IN THE HIDTA 2021. THAT’S COMPARED TO 76,753 REGION INCREASED FROM 11 IN 2020 IN 2020 (17.3X INCREASE) AND 5,260 IN TO 91 IN 2021, WITH THE MAJORITY (90) 2018 (253.0X INCREASE) RELATED TO CANNABIS EXTRACTION OREGON-IDAHO HIGH INTENSITY DRUG TRAFFICKING AREA, FOR THE PURPOSE OF PRODUCING 2022B, P. 17 “BHO/HONEY OIL” OREGON-IDAHO HIGH INTENSITY DRUG TRAFFICKING AREA, 2022A, P. 11 85-90% of California-produced marijuana is exported FULLER, 2019 9 83

Item 3. TAX REVENUE Oregon Marijuana Taxes as 0.3% a Percent of FY21-22 State Budgets: 0.49% Alaska California Colorado 0.29% 0.09% ENVIRONMENTAL IMPACT OUTDOOR MARIJUANA INDOOR MARIJUANA MARIJUANA PRODUCTION IS GROW SITES CONSUME AN GROWS EMIT AS MUCH NEARLY FOUR TIMES MORE ESTIMATED 29.4 MILLION CO2 AS 3.3 MILLION CARS ENERGY INTENSIVE THAN GALLONS OF WATER PER COAL OR OIL PRODUCTION LARKIN & SWEENEY, 2022 YEAR IN CALIFORNIA MILLS, 2012 GRETA WENGART, INTEGRAL ECOLOGY RESEARCH CENTER CA 29.4 MILLION GALLONS MARIJUANA LOCALITIES ARE OPTING OUT 68% 60% 71% 71% CALIFORNIA COLORADO NEW YORK NEW JERSEY NIEVES, 2021 FUEGO, 2019 ROCKEFELLER INSTITUTE MJBIZDAILY, 2021 OF GOVERNMENT, 2022 A MAJORITY OF LOCALITIES IN “LEGAL” STATES HAVE OPTED OUT OF MARIJUANA SALES 10 84

Item 3. DATA AND POLICY BACKGROUND In 2013, the U.S. Department of Justice (DOJ) decided to take a hands-off approach toward legalization at the state level. Officially, the DOJ stated it would only get involved if any of eight requirements laid out in the “Cole Memo” (e.g., sales to minors, increased drugged driving) were violated. Unfortunately, the DOJ took no meaningful action as states routinely violated the “Cole Memo,” according to the U.S. Government Accountability Office (GAO). However, public health and safety departments and law enforcement agencies in “legal” states have produced primary data and impact reports that illustrate how current marijuana policies are failing to protect the health and safety of the general population (Alaska State Troopers, 2016; Financial Management, 2019; Grondel et al., 2018; Oregon Liquor Control Commission, 2018; Oregon Public Health Division, 2016; Oregon State Police Drug Enforcement Section, 2017; Oregon-Idaho High Intensity Drug Trafficking Area, 2018; Rocky Mountain High Intensity Drug Trafficking Area, 2019b). In 2018, the DOJ rescinded the “Cole Memo,” signaling an uncertain future for the marijuana industry. One thing is clear: by legalizing marijuana, states continue to violate federal laws. We now have more than ten years of data to show how these marijuana policy changes––and the industry they created––harm families and communities. This industry is chiefly driven by higher use rates and increased normalization, seeking to convert casual users and non-users into life-long customers. As we are only now beginning to address the far-reaching and devastating consequences of the addiction epidemic––driven largely, but not exclusively, by opioids––the rise of additional corporate promotion of drug use comes at an inopportune time. Following the transition to the Biden administration, Attorney General Merrick Garland signaled that the DOJ would not pursue the prosecution of individuals who use marijuana in accordance with their state’s respective marijuana laws. Garland has defended this position, in part, by arguing that, “Criminalizing the use of marijuana has contributed to mass incarceration and racial disparities in our criminal justice system” (Berman, 2021). Of note, the Biden administration fired would-be appointees who had previously used marijuana, highlighting the continued tension between federal and state-level marijuana laws (Berman, 2021). Additionally, in the administration’s Fiscal Year 2023 budget proposal, they again blocked Washington, DC, from legalizing marijuana sales, although voters had previously supported legalization as a ballot measure (Rawnsley, 2021). In October 2022, President Joe Biden issued a pardon for all individuals convicted under federal law for the simple possession of marijuana (Shear & Kanno-Youngs, 2022). He also urged governors across the nation to adopt a similar policy. While Biden’s announcement was commended by supporters of criminal justice reform, others pointed out that no one was in federal prison solely for the possession of marijuana. Thus, although his policy retroactively helped 6,500 individuals who were previously charged, it did not free a single person from prison. Many of the people affected by this action also likely pled down from other charges. In November 2022, Governor Kate Brown, of Oregon, followed President Biden’s steps, pardoning more than 40,000 individuals who had been charged for marijuana possession. In December 2022, President Biden signed the SAM-drafted Medical Marijuana and Cannabidiol Research Expansion Act (H.R. 8454) into law. This groundbreaking and bipartisan bill is the first stand-alone marijuana reform legislation to become law in United States history. 11 85

Item 3. RESEARCH ON to materialize fully. However, researchers do not need to wait that long to understand certain key MARIJUANA HARMS outcomes of commercialization. For example, the data in this report—and many others—show Scientific literature on the harms of marijuana states that legalized marijuana often have the use exists in abundance and will be discussed highest rates of marijuana use in the country. in this report. More than 20,000 peer-reviewed The data also show use is sharply increasing in research articles have linked marijuana use vulnerable demographics, including youth and to adverse mental health outcomes, ranging young adults whose brains are still developing. from depression to psychosis, as well as These states also have: consequences for physical health and even negative outcomes for neonates exposed in 1. Higher rates of marijuana-related utero. The connections between marijuana use driving fatalities. and negative consequences for mental and 2. Issues with “legally” sold but physical health, among other risks, are often contaminated marijuana vapes. lost in conversations surrounding legalization. 3. More marijuana-related emergency The distinction between medical and recreational department visits, hospitalizations, and marijuana has been deliberately blurred by an accidental exposures. industry with a heavy hand in both markets. 4. Expansive and lucrative criminal markets. A recent study found that despite evidence that lower THC dosage is more appropriate 5. Exacerbated racial disparities in marijuana for medical purposes, the medical marijuana industry participation and criminal justice products advertised in retail stores contained enforcement. around the same amount of THC as recreational 6. Increases in workplace problems, marijuana products, which generally contain including labor shortages and accidents. upwards of 15% THC (Cash et al., 2020). And a 2022 study suggests that the risk of developing COMMERCIALIZATION: a cannabis use disorder increases as marijuana’s THC level increases (Petrilli et al., 2022). Though A GROWING CONCERN there is potential for the medical use of certain The commercialization of marijuana results in components found within the marijuana plant, negative consequences for public health, social these components should be researched through justice, and public safety. Medical marijuana well-designed clinical studies and under the legalization gave way to recreational marijuana guidance of the Food and Drug Administration legalization in states across the country, and the (FDA). These are just a few examples of the industries maintaining both sectors have been conflict between data-driven research and the heavily capitalized. The result is the creation of a normalization of marijuana. The science is clear. new and powerful addiction-for-profit industry. Yet proponents of legalization continue to march forward, single-mindedly pursuing profits. More people are using marijuana while remaining largely ignorant of its negative consequences. KEY OUTCOMES Additionally, usage rates are surging across the United States after years of declines. More than Similar to the nation’s troubled past with tobacco 52.5 million people aged 12 or older reported past- and alcohol, the full consequences of the year marijuana use in the U.S. in 2021, a more than commercialization of marijuana will take decades 20% increase from 2018 (Substance Abuse and 12 86

Item 3. Mental Health Services Administration, 2018a, When kids also have underlying mental health 2021a, p. 1). More than 45% of all adults reported conditions, the impact of marijuana use can trying marijuana at least once in their lifetimes. also be more significant. And, so, I worry Senator And 34.7% of 12th graders reported that they used about the messages we may send that say this is marijuana in the past year (Miech et al., 2023). ‘utterly harmless’ and ‘there’s no problem here’. The United Nation’s World Drug Report noted We need to be responsible in how we teach our that there was a “General increase in cannabis kids about marijuana. I think how we talk to use, with a narrowing gender gap and a more families about marijuana use and I think health pronounced increase in frequent use among care providers also need to be empowered to young adults” following legalization (UN Office on have these conversations early on as well as Drugs and Crime, 2022). The alarming increase in teachers.” (The United States Senate Committee use among young people, in particular pregnant on Finance, 2022) women, prompted then-U.S. Surgeon General Dr. Jerome Adams to issue a first-of-its-kind advisory on marijuana use (Office of the Surgeon HIGH-POTENCY MARIJUANA General, 2019). Coinciding with increases in In the 1970s, “Woodstock Weed” contained use, the concentration of THC in marijuana has approximately 1–3% THC (ElSohly et al., 2000). Since steadily increased. Marijuana’s THC concentration then, products have become increasingly potent, tripled between 1995 and 2014, and concentrated driven in large part by industry-led innovation, products, such as waxes, now contain up to 99% market demand, and a shift in consumption THC (Office of the Surgeon General, 2019). methods. THC concentrates, such as shatter, budder, Though his advisory specifically addressed and waxes––as well as gummies and edibles––are significant increases in use among youth packed with more THC than joints ever were. Now, and pregnant women, he did not shy away even the marijuana plant itself is being genetically from cautioning against marijuana use more engineered to contain a higher percentage of THC. generally. At one congressional hearing, One study found that the average potency of the Adams told senators, “I don’t want anyone marijuana plant increased from 8.9% THC in 2008 to mistake what I’m saying as implying that to 17.1% THC in 2017. Concentrates, which contained these products are considered safe for general an average potency of 6.7% THC in 2008, contained adult usage” (Cornyn & Feinstein, 2019). In 2021, an average potency of 55.7% in 2017 (Chandra et Surgeon General Dr. Vivek Murthy made similar al., 2019). The National Institute on Drug Abuse comments in a Senate Finance Committee found that solvent-based products have been Hearing. Dr. Murthy warned: documented with an average of 54–69% THC and have been known to exceed 80% (National Institute “I worry that there is a perception that on Drug Abuse, 2020, p. 2). marijuana is completely harmless in The market for marijuana flower hybrids and children.” Surgeon General Dr. Vivek Murthy concentrates continues to rise with the increase in demand for products with higher THC potency “When it comes to youth, I worry that there levels. In Washington state, market share for is a perception that marijuana is completely flower products with 10–15% THC declined by harmless in children. Our data tells us otherwise. 60.4% between 2014 and 2017, while the market Our data tells that in fact a portion, a substantial share for flower products with more than 20% minority, of people who use marijuana will THC increased by 48.8% (Smart et al., 2017). In actually develop an addiction to marijuana. That 2020, amid the outbreak of the coronavirus number is significantly higher among youth. pandemic in Washington state, the retail sales 13 87

Item 3. anxiety while being more likely to report other share of recreational marijuana generally substance use (Chan et al., 2017). increased, with a 0.7% increase in edibles and a 3.5% increase in flower from Jan-March to Apr- Ultra-processed high-potency products are also May (502Data, 2021). more likely to contain residues and contaminates from production. This is not isolated to the illicit In Oregon, concentrates and extracts surpassed market. A study of 57 concentrates legally sold flower in sales and comprise an increasingly large for dabbing in California found that almost 72% proportion of all marijuana sales. In December of the samples contained residual solvents, 2019 alone, nearly 1 million units of concentrates including isopentane, butane, and propane. One and extracts were sold in the state, and the third of those samples also contained pesticide number of units of edibles sold exceeded the residues (Haggerty, 2020). pounds of flower marijuana sold (Oregon Liquor Control Commission, 2020). Retailers increasingly The lucrative cash potential of high-potency promote higher potency marijuana in order marijuana also emboldens illegal producers to drive profits––high-potency marijuana sells. of BHO. Its production involves forcing raw Additionally, sales surpassed $1 billion in 2020, marijuana and butane into a reaction chamber, increasing from $795 million in 2019 (Oregon which creates a highly combustible liquid that Liquor and Cannabis Commission, 2023), and the can easily explode when introduced to an ignition Oregon Liquor Control Commission anticipates source. This has implications not only for public that the supply of marijuana will further increase health but public safety as well. in coming years. Between 2012 and 2018, over 100 marijuana A leaked draft report from the Washington State extraction labs were seized in Oregon. More than Health Authority recommended enacting a 30 fires and explosions related to the production number of policies to curb the rapidly increasing of this kind of marijuana were reported in the THC potency of products. These recommendations state in that time period. The number of labs included an additional tax on products with more seized in the area reached a new high of 39 than 35% THC potency, raising the purchasing in 2017, and another new record of 91 in 2021 age of high-potency products to 25, prohibiting (Oregon-Idaho High Intensity Drug Trafficking marketing and advertising of high THC products, Area, 2019). high THC warning labels on high THC products, and required point-of-sale education about the In addition to these concerns, BHO explosions led risks of high THC products (Addictions, Drug & to an increasing number of BHO burn victims. The Alcohol Institute, 2022). Oregon-Idaho High Intensity Drug Trafficking Area found that 87 marijuana extraction burn The demand for stronger marijuana threatens victims were treated from 2015 to 2017 (Oregon- public health. The use of high-potency marijuana Idaho High Intensity Drug Trafficking Area, 2019, exacerbates many of the consequences of p. 34). Since 2013, treatment costs for marijuana marijuana use. Frequent marijuana users and extraction burn victims have totaled $15 million. users of high-potency marijuana are more likely than regular users to develop schizophrenia and Products with high amounts of THC proliferate psychosis (Forti et al., 2019). Users of Butane Hash with market demand and, as such, consequences Oil (BHO), a marijuana concentrate that yields a associated with high-potency marijuana become potency of between 70–99% THC, are more likely more apparent. to have lifetime diagnoses of depression and 14 88

Item 3. NOT ONLY POTENCY, BUT Starbucks locations combined (MJBizDaily, 2019). Colorado has about 1,010 registered retail and CONSUMPTION LEVELS: WHAT medical marijuana shops combined (Colorado DO USERS LOOK LIKE TODAY? Department of Revenue, 2023) compared with under 200 McDonald’s and around 100 Starbucks coffee stores. The overwhelming presence of The change in the typical marijuana user today marijuana stores promotes and further normalizes versus twenty years ago, according to Carnegie its use. A 2022 twin study found that use increases Mellon professor Jonathan Caulkins, is akin by about 20% after legalization (Zellers et al., to thinking about a typical caffeine drinker 2023). There is no question that the legalization consuming one 20-ounce cola worth of caffeine of marijuana is associated with increases in use versus about thirty 16-ounce cappuccinos today. and lower perceptions of risk. 20 Adding to the danger of marijuana commercialization is the increasing market demand for high-potency products created by the combination of aggressive 15 promotion and ever-increasing tolerance by heavy users. With innovation, the industry responded to meet the demand it had created, modifying marijuana to increase its potency further. The 10 commonly conceived “Woodstock weed” had between 1–3% THC, the psychoactive intoxicant responsible for the high; according to recent studies, today’s average marijuana flower––touted 5 by industry advocates as a harmless plant––contains approximately 17.1% THC. Independent studies in “legal” states have also found the percentage to be even higher, such as an average THC percentage 0 of 18.7% in plant material in Colorado (Colorado COLA CAPUCCINO Department of Public Health & Environment, 2020). Concentrates and edibles pack a more potent Ounces worth of caffeine punch, containing an average of 55.7% THC (Chandra et al., 2019). But increasingly common products can be even more potent, with many marijuana retailers promoting and profiting from It’s important to think about legalization as akin products containing up to 95–99% THC (Prince to commercialization—this is very different than & Conner, 2019). simply removing criminal penalties for personal possession. Case in point: As soon as a state legalizes, the industry moves to open up as many shops as possible. In states where marijuana is “legal,” retail and medical licenses outnumber popular food chains. For example, in Colorado, marijuana retail locations outnumber all McDonald’s and 15 89

Item 3. STATE REGULATORY images or appropriating the names of well- known commercial food products. For example, FRAMEWORKS STRUGGLE TO “Pop Tarts,” a widely consumed kid-friendly KEEP UP WITH THE NUMBER breakfast product, was used by one marijuana producer to market “Pot Tarts.” Unfortunately, OF LICENSED SHOPS these products are thought to contribute to the increased accidental marijuana exposures One significant problem with high-potency among children and others. Stemming from the products is the lack of regulation. Numerous wide array of consumption methods and ways studies have found that product regulation in that marijuana can be infused with products, “legal” states is limited (Lamy et al., 2016; Peace et the American Addiction Center updated its al., 2016; Yates & Speer, 2018), and internal audits definition of edibles in December 2022 to be “food conducted by state governments have exposed products that have been infused with marijuana,” holes in regulatory frameworks. In Oregon, for meaning a marijuana edible can essentially be example, the Liquor Control Commission found any consumable product (American Addiction that there is an average of one state inspector Centers, 2022). for every 83 marijuana licenses (OLCC, 2020). Public health advocates continue to advocate for THC potency caps. Vermont and Connecticut became the first states to cap the potency of concentrates at 60% (still 30 times the strength of just a few decades ago) and flower at 30%; Montana capped the potency of flower at 35% but did not place a comparable cap on concentrates. In all other states that have legalized medical or recreational marijuana, these sensible attempts have been quickly blocked by the marijuana industry (Vermont Cannabis Control Board, 2022). The mislabeling of products also plagues the “legal” market. Studies have found that the labeling of active ingredients in concentrates and edibles often misrepresents the actual ingredients in those products (Peace et al., These kinds of growth tactics by the marijuana 2016). Consumers are often unaware of the industry are not new. They largely mirror the contents of what they are smoking or ingesting, boom of Big Tobacco in the early 1900s––and potentially leading users to consume more of this did not occur by accident (Ayers et al., 2019; a psychoactive product than they intended to. Richter & Levy, 2014). Although operators in Furthermore, the adaptability of marijuana gives the marijuana industry claim to be up-and- way to mass-market products modeled after comers, they are now well-financed and advised popular consumer goods. Marijuana-infused by professionals from the tobacco industry. For “edibles” come in the form of cookies, candy, example, Altria, the corporate owner of Marlboro, ice cream, sodas, and other sweet treats that purchased a 35% stake in Juul shortly after are particularly appealing to children (O’Connor acquiring a 45% stake in Cronos, one of the & Méndez, 2016). Marketing tactics make use largest international distributors of marijuana of bright colors and catchy names, replicating (LaVito & Hirsch, 2018). The UK-based Imperial 16 90

Item 3. Brands invested around $123 million CAD (~$94M The investments of these big industry players USD) in Auxly, a Canadian marijuana company. coincide with more covert action taken to This partnership, which gave Imperial Brands a push legalization forward. In an investigative 20% stake in the company, will focus on utilizing report that examined marijuana interests in the Imperial Brand’s vaping technology to develop UK, journalist Jonathan Gornall linked several marijuana vaping products. commercial organizations with vested interests in the creation of a recreational marijuana market The marijuana industry has also caught the with individuals and activists pushing for more attention of Big Pharma and Big Alcohol. In access to medical marijuana. What’s more, he March 2022, Pfizer finalized a $6.7 billion deal found that several tobacco companies were with Arena Pharmaceuticals, a company that funding studies on medical marijuana, an activity develops cannabinoid-type therapeutics (Pfizer, that calls for questioning into the validity of that 2022). Former Purdue Pharma executive John research (BMJ, 2020). Stewart left the pharmaceutical industry to create his own marijuana company (Murphy, 2016). Teva These connections are unsurprising. Marijuana Pharmaceuticals signed an agreement to become commercialization presents addiction-for- a medical marijuana distributor in Israel (Helfand, profit industries, which have long been under 2016). And Sandoz, a subsidiary of Novartis, signed public scrutiny, with new and innovative an agreement with Tilray to distribute marijuana pathways to profits. products (R.T.T. News, 2018). Constellation Brands, the maker of Corona, ADVERSE HEALTH EFFECTS purchased a 9.9% stake in Canopy Growth for OF MARIJUANA $191 million, then upped the stake to 38% for $4 billion in 2018. The company has the option Contrary to popular belief, marijuana is a harmful to increase its investment and purchase up to drug. The main psychoactive ingredient in 139.7 million new shares at a price of up to $5 marijuana, THC, causes many different types billion more (Sheetz, 2018). Blue Moon has also of mental and physiological health problems–– made substantial investments in the marijuana especially in children, young adults, and pregnant industry (B. Miller, 2018). women. Its addictive properties exacerbate its potential harms as marijuana users become The full impact of these investments has been dependent on the drug. brought to light with the establishment of CPEAR, Altria and Constellation’s advocacy Researchers found that marijuana is an addictive organization funded to lobby for legalization at drug (Volkow et al., 2014). Brain scans of the federal and state levels (Coalition for Cannabis marijuana users show changes in the structure Policy, Education, and Regulation, 2023). In of the brain’s reward center to be consistent with March 2022, CPEAR issued a problematic paper addiction (Gilman et al., 2014), and up to 47% of purportedly revealing that youth use does not regular users experience withdrawal symptoms increase in legalized states. In reality, CPEAR when they cease use (Bahji et al., 2020; Hasin et made conclusions based on national-level al., 2008). The National Institute on Drug Abuse data trends, which of course include non-legal reports that approximately 30% of marijuana states, instead of only looking at state-level data users have marijuana use disorder and that for states with legal marijuana. Their analysis people who begin using marijuana before the did not mention any of the dozens of studies age of 18 are up to seven times more likely to showing increased use as a result of legalization. develop a marijuana use disorder compared (Davidson, 2022). with those who start later (National Institute 17 91

Item 3. on Drug Abuse, 2019a). One study found that “Compared with never users, participants marijuana vaping may support “conditioned who used high-potency cannabis daily had drug-seeking behavior,” which is a cause for 4x higher odds of psychosis in the concern as vaporized marijuana gains popularity whole sample.” (Di Forti et al., 2019). (Freels et al., 2020). A 2022 study found that youth who use e-cigarettes are significantly There was a 25% increase in cannabis use more likely to report marijuana use within one disorder (CUD) among 12–17-year-olds in “legal” year (Sun et al., 2022). states (Cerdá et al., 2020). This population is also more likely than adults to develop a cannabis Marijuana has also been found to cause use disorder if they begin using marijuana at severe consequences for mental health. that age (Cerdá et al., 2020). Marijuana is increasingly linked to the onset of psychosis and schizophrenia (Henquet et Chronic marijuana use increases the likelihood of al., 2005; Marconi et al., 2016; Mustonen et al., anxiety in adults in their late twenties and older, 2018; Niemi-Pynttäri et al., 2013) and shows a and those who met the criteria for CUD had a more modest association with depression and high risk of adverse mental health symptoms anxiety (Agrawal et al., 2017; Duperrouzel et across all ages (Leadbeater et al., 2019). al., 2018; Gobbi et al., 2019). In one of the most comprehensive studies to date on marijuana These studies are worth noting, particularly and psychosis, Di Forti et al found that daily as marijuana is being increasingly marketed marijuana use is associated with an increased as a solution for anxiety and other mental likelihood of developing psychosis. What’s health ailments. more, they reported a more than four-times odds of daily users of high-potency marijuana Frequency of marijuana use, as well as higher developing psychosis (Di Forti et al., 2019). THC potency, is associated with the most severe Additionally, a 2021 study found that cannabis impact on mental health, which is evidenced use disorder in Denmark has been increasingly by psychosis, suicidality, the reshaping of brain associated with schizophrenia; 2% of cases of matter, and addiction (Cinnamon Bidwell et schizophrenia were linked to cannabis use al., 2018; Fischer et al., 2017; Forti et al., 2019; disorder in 1995, but this increased to 8% in Pierre et al., 2016). The increasing demand for 2010 (Hjorthøj et al., 2021). high-potency marijuana products and the coinciding prevalence of CUD are indicative of a A randomized clinical trial published in 2022 future maelstrom with unknown consequences found that upon obtaining a medical marijuana for public health, especially as the industry card, patients suffered an “increased incidence engages in a concerted effort to undermine and severity of cannabis use disorder (CUD) scientifically proven risks of marijuana use. and resulted in no significant improvement The legalization of marijuana coincides with a in pain, anxiety, or depressive symptoms, but nationwide increase in CUD. According to the improved self-reported sleep quality” (Gilman Substance Abuse and Mental Health Services et al., 2022). Administration’s (SAMHSA) National Survey on Drug Use and Health (NSDUH), 16.3 million Americans reported having marijuana use disorder in 2021, nearly four times as many people compared to 2019 (Substance Abuse and Mental Health Services Administration, 2021d). Part of this increase is due to a change in methodology, but the overall upward trend 18 92

Item 3. of CUD is concerning and is no doubt because MARIJUANA of the normalization of marijuana. In addition to this alarming trend, more Americans who AND PREGNANCY report any or serious mental illness issues also reported past-year marijuana use. Co-occurring Government officials are increasingly sounding mental illness and substance use disorder was alarms on marijuana use during pregnancy after higher among past-year marijuana users than research and reports have revealed that more past-year opioid users (Substance Abuse and pregnant women are using the drug. In Alaska, Mental Health Services Administration, 2019b). for example, 9% of women who delivered a baby in 2017 reported having used marijuana during Commercialization advocates have also their pregnancy (Alaska Department of Health suggested that marijuana may help those and Social Services, 2020). In fact, in Colorado, with PTSD, a claim with particularly important researchers found that seven in 10 dispensaries implications for veterans. This may be a recommended marijuana to women posing as dangerous assumption. Two studies conducted pregnant women (Nedelman, 2018). on military personnel experiencing PTSD found an elevated risk for suicidal thoughts and Researchers at Boston University found that behaviors among those using marijuana (Allan marijuana use among men may double the et al., 2019; Gentes et al., 2016). risk of partner miscarriage––regardless of the woman’s use (McAlpine, 2019). Additionally, Marijuana is also linked to significant marijuana use during pregnancy is accompanied physical ailments. Researchers have found a by a host of risks for the baby. Use during connection between marijuana use and lung pregnancy may affect cognitive development by damage (Hancox et al., 2022), as well as serious increasing the risk of hyperactivity, impulsivity, cardiovascular problems, including hypertension, and inability to focus (Huizink & Mulder, 2006; myocardial infarction, cardiomyopathy, G. S. Wang et al., 2017). Prenatal exposure arrhythmias, stroke, and cardiac arrest (Bigay- to marijuana also predisposes offspring to Gamé et al., 2018; Hall & Lynskey, 2016; Pacher neuropsychiatric disorders (Frau et al., 2019). et al., 2018). The American Lung Association has A mother’s marijuana use during pregnancy highlighted the health impacts of marijuana, may also increase the risk of low birth weight, noting the specific risks associated with each preterm birth, neonatal intensive care unit way that it can be consumed, such as via pipes, placement, and developmental problems (Gunn bongs, and paper-wrapped joints (American et al., 2016; Kharbanda et al., 2020). Low birth Lung Association, 2022). weight and preterm birth increase the risk of short- and long-term complications for the Studies have found marijuana to be linked child (Clinic, 2017). to certain types of cancer (Liu et al., 2020), including testicular cancer (Ghasemiesfe et al., A 2022 retrospective cohort study in Colorado 2019; Gurney et al., 2015). found that “legal” recreational marijuana is associated with a two-fold increase in marijuana- related hospitalizations of pregnant women (G. S. Wang et al., 2022). Of course, the risk to mothers is not the only concern. A 2023 study found that prenatal exposure to THC has long-term effects and inhibits brain and neural development in babies (Peng et al., 2023). In 2022, the largest long-term study of 19 93

Item 3. brain development and health in children and related emergency department visits; however, teens in the US, the Adolescent Brain Cognitive the decline did not continue after the six-month Development Study, reported attention, social, mark, suggesting that marijuana users began and behavioral problems in children who were using opioids again (Drake et al., 2021). Researchers exposed to marijuana in the first trimester in 2022 found that legalization has contributed (National Institute on Drug Abuse, 2022). A to the opioid epidemic, and this was especially 2019 study found that parental marijuana use pronounced among Black Americans (Bleyer increases the likelihood of marijuana use among et al., 2022). children in the household, as well as increases their risk of tobacco and opioid use (Madras et Amid the third wave of the decades-long opioid al., 2019). crisis (Centers for Disease Control, 2019c) and in a population in which nearly 14.5 million people Dr. Nora Volkow, the director of the National are impacted by alcohol use disorder (National Institute on Drug Abuse, published a report Institute on Alcohol Abuse and Alcoholism, in response to this alarming trend developing 2020), the false assertions by the marijuana across the country and warned of the industry are harmful and not backed by science. detrimental health risks of in utero cannabis exposure (Volkow et al., 2017). Tragically, in 2019, A 2014 study (Bachhuber et al., 2014) suggested a newborn whose mother reportedly used medical marijuana legalization was associated marijuana while pregnant was found dead at with a decrease in opioid-related deaths until just 11 days old and doctors believe the cause 2010. However, a more recent study of that data was acute marijuana toxicity (Bao & Bao, 2019). showed the opposite. This 2019 study, which The trend in marijuana use during pregnancy now includes more years of data, found instead even prompted the U.S. Surgeon General to that marijuana legalization coincided with a issue an advisory that warned women not to use 23% increase in opioid-related deaths after marijuana to alleviate nausea during pregnancy 2010 (Shover et al., 2019). (However, the study (Office of the Surgeon General, 2019). notes that medical marijuana legalization, more likely than not, had no impact on opioid-related deaths.) Medical marijuana users, according MARIJUANA AND CO-USE to the findings of this study, represent 2.5% WITH OTHER SUBSTANCES of the U.S. population; consequently, the legalization of medical marijuana is likely Some industry proponents claimed that incapable of exerting a demonstrable impact legalizing marijuana would reduce the use of on opioid overdose deaths. Other studies other substances in the United States, such have supported this finding (Caputi, 2019). as alcohol and opioids. Common industry The positive correlation found in this study rhetoric holds that former alcohol users will is still worth further examination, given the switch to marijuana if it is made legal. They relationship between marijuana use and opioid also suggest that legalization will be “the exit misuse. A 2021 study found that marijuana use to the opioid crisis” (MadMoney, 2018) and cite a was 34% higher in study participants who also since-debunked and severely flawed study that misused prescription opioids as opposed to seemed to show a decrease in opioid overdoses those who did not misuse prescription opioids, in states that legalized medical marijuana. which undermines the premise of the possibility of marijuana being a solution to opioid misuse For instance, a 2021 study found that the (Arora et al., 2021). implementation of recreational marijuana laws in 2017 was associated with a decline in opioid- 20 94

Item 3. Studies have found a link between marijuana and Institute, 2019)––current state policies should opioid use, as well as marijuana and future use of be reconsidered. other drugs. In particular, marijuana exposure in adolescence seems to impact future opioid use A four-year prospective study in the highly (Ellgren et al., 2007). A large proportion (44.7%) respected journal The Lancet Public Health of lifetime marijuana users ultimately use other followed patients with chronic non-cancer pain drugs (Secades-Villa et al., 2015). A study by and found no evidence marijuana use mitigated Azagba and colleagues (Azagba et al., 2019) pain severity or interference or that marijuana found marijuana users were more likely than affected rates of opioid prescribing or opioid non-users to report prescription opioid misuse, discontinuation (Campbell et al., 2018). echoing an earlier study that demonstrated that participants who reported marijuana use MARIJUANA’S ASSOCIATION in the previous year were 2.6 times more likely to misuse non-prescription opioids (Olfson et WITH ALCOHOL AND al., 2018). A 2021 study also found an association OTHER DRUGS between the implementation of marijuana home cultivation and an increase in opioid-related Rising alcohol use is also an issue, and some have hospitalizations and emergency department suggested that marijuana may be a substitute visits (Jayawardhana & Fernandez, 2021). for alcohol use. However, a 2022 report found that alcohol consumption did not go down in A body of research shows early marijuana use states with legal marijuana; instead, legalization can more than double the likelihood of other resulted in an increase in the co-use of marijuana drug use later in life (Olfson et al., 2018; Secades- and alcohol (Gonçalves et al., 2022). According Villa et al., 2015). In fact, according to the National to a 2018 report, Washington state saw a 9% Survey on Drug Use and Health, 95–97% of increase in gallons of beer consumed since people who used cocaine or heroin started with legalization (Sauter, 2018). Since legalization in marijuana (Substance Abuse and Mental Health Colorado, state officials recorded a 7% increase Services Administration, 2019b). The scientifically in gallons of alcohol consumed (CO Department validated relationship between substance of Revenue, 2019). And according to America’s misuse and marijuana use is difficult to ignore. Health Rankings, 20.5% of adults in Colorado Marijuana is often lauded as a plausible reported binge drinking in 2021, compared substitute for opioids in the treatment of pain. to the national average of 17.3% (America’s But mounting evidence suggests that marijuana Health Rankings, 2022). Other studies showed use––particularly chronic use––is associated no meaningful decrease in alcohol use since with poor pain control (Salottolo et al., 2018). legalization (Haughwout et al., 2016). Further A 2022 meta-analysis found that marijuana analysis found that, “Allowing for changes in is no better than a placebo at relieving pain. the adult population over the period 2005–2017, (Gedin, 2022). A study found adults with pain are the data show a continuing increase in wine vulnerable to adverse marijuana use outcomes, servings alongside…legalization” (Pellechia, a finding that calls into question the prescribing 2018). Most recently, a 2023 study found that of marijuana as a pain reliever (Hasin et al., 2020). marijuana use was associated with the co-use Considering that severe pain continues to be of alchohol regardless of state- and national- one of the most common reasons for obtaining level marijuana policies. a medical marijuana card––93% of registered Rather than discouraging polysubstance use, cardholders in Colorado reported severe pain as which is the use of multiple drugs, marijuana the reason for marijuana use (Colorado Health 21 95

Item 3. legalization is associated with further use, misuse, MARIJUANA VAPING and dependence on other drugs. While the “gateway” effect of marijuana is sometimes The vaping of marijuana in THC oil pods and considered outdated, the association between cartridges is a relatively new yet rapidly exploding the use of marijuana and other drugs is supported marijuana-industry innovation. Vaping quickly by science. Marijuana use often predicts future delivers 70–90% THC concentrates to users drug use––ranging from tobacco and alcohol by heating extracted oils so that they can be use to opioid use. inhaled as vapor. No studies on consumer safety Marijuana use itself may be forecasted by other, were conducted prior to the mass marketing seemingly less harmful drugs, such as tobacco of vaporizers, which are also popular among and alcohol. Among high schoolers who first tobacco users. initiated alcohol use by 12th grade, subsequent Vaping is popular among youth because vapes marijuana use was more likely. Marijuana seems can be easily concealed and produce less (if to both impact––and be impacted by––tobacco any) odor, as compared to other consumption use in younger age groups (Keyes et al., 2019). methods. In 2022, 27.5% of 12th graders reported Moreover, a 2021 study found that “Respondents vaping marijuana in the last year (Miech et al., reporting at least one family member or peer 2023). Vaping has been normalized among using e-cigarettes were more likely to use youth, and many have transitioned from e-cigarettes” compared to respondents whose smoking marijuana to vaping it. Between 2017 family members did not use them, illustrating and 2022, the percentage of 12th graders who how one’s social environment influences his or vaped marijuana almost tripled from 9.5% to her drug use (Coleman et al., 2021). 27.5% (Miech et al., 2023). A study in Addiction A 2018 study published in the Journal of Studies found “cannabis vaping is increasing as the on Alcohol and Drugs found that, similar to most popular method of cannabis delivery tobacco and alcohol co-users, marijuana and among adolescents in the United States, and alcohol co-users were more likely than non- that frequent (six or more times per month) use marijuana alcohol users to overvalue alcohol, is increasing faster than occasional use.” The signaling a dependence on both drugs (Morris CDC’s 2019 Youth Risk Behavior Surveillance et al., 2018). Marijuana use is also associated with System found 50.1% of high school students an increased likelihood of alcohol use disorder had tried electronic vapes and 10.7% of high (Weinberger et al., 2016). In 2021, researchers schoolers used those products on 20 or more found co-users of alcohol and marijuana are over days in the past 30 days (Abuse, 2022c). three times more likely to suffer from alcohol In Michigan, the state’s regulatory agency was use disorder (Waddell, 2021). Another study in forced to issue a recall on vaping products sold at the same year from the CDC found that “During state-licensed dispensaries after it was revealed 2015–2019, one third (34.4%) of Colorado adults that several of them contained vitamin E. acetate who binge drank used marijuana compared with (Neavling, 2020). Another recall implicated one tenth (9.9%) of nondrinkers” (Crawford, 2021). 3,400 “legal” cartridges. In November 2021, the The commercialization of marijuana perpetuates Michigan Marijuana Regulatory Agency issued an understatement of the dangerous a marijuana product recall, impacting more consequences of marijuana use, adding to than 400 sales locations throughout the state, the social burden of addiction rather than citing “inaccurate and/or unreliable results” subtracting from it. (LeBlanc, 2021). 22 96

Item 3. In the spring of 2020, a whistleblower revealed In Colorado, the number of marijuana-related that Hawaii’s standards for medical vapes were emergency department visits increased 54% far below the standard of any other state, putting from 2013 to 2017. Yearly marijuana-related patients at risk. Almost half of vapes subjected to hospitalizations increased 101% in that same a blind test were found to contain ethanol levels period (Colorado Health Institute, 2019). Calls to so high that the cartridges would be illegal if the poison control center for marijuana exposures sold in states in the likes of California, Colorado, also increased. In 2013, 125 calls were made for and Washington (Blair, 2020). marijuana-related exposures. By 2018, that number jumped to 266, representing a 113% increase. Youth Legalization will not solve the problem of cases––instances of marijuana-related exposures contaminated products because standards of children aged 8 or younger—increased 126.2% will continue to be unmet; that comes with from 2013 to 2018. In 2018, youth cases represented potentially deadly implications for consumers more than half of all marijuana-related exposure and patients alike. calls to the Rocky Mountain Poison and Drug Center (Rocky Mountain High Intensity Drug EMERGENCY AND Trafficking Area, 2021). HOSPITAL ADMISSIONS A study by the Colorado Department of Public Health and Environment found that in 2018, over The widespread availability and accessibility of 23,000 homes in the state with children aged high-potency marijuana due to legalization has one to 14 years had marijuana products stored resulted in an increasing number of marijuana- in an unsafe manner (Colorado Department related poison control calls, hospitalizations, of Public Health & Environment, 2018). In and ER visits. 2018, 60% of youth (0-8 year old) marijuana exposures involved edibles, compared with A 2022 study published in Pediatrics found a just 18% in 2016 (Rocky Mountain High Intensity 1,375% increase in accidental edible marijuana Drug Trafficking Area, 2021, p. 28). Even when exposure in children under the age of 6 from packaging is compliant with Colorado’s 2017 to 2021 (Tweet et al., 2023). Additionally, a regulatory requirements, it often fails to 2022 study found that hospital discharges for discourage and prevent children from accessing marijuana-associated psychosis were higher in potent and dangerous marijuana. There has states with legal marijuana (Moran et al., 2022). also been a steep increase in youth marijuana These results are underlined by an earlier study exposures nationwide. There were 598 in-home that found the commercialization of recreational exposures involving children younger than 12 marijuana is associated with a 66–77% increase in 2018; in 2020, that number increased to 2,473 in marijuana exposures. State-specific data (Russo, 2021). shed greater light on this phenomenon (Shi & Liang, 2020). Researchers who studied the impact of medical marijuana legalization also found many pediatric A study published in March 2022 found that marijuana exposure cases in the state, despite after California legalized marijuana, there was childproof packaging and warning labels (Whitehill a significant increase in hospitalizations and et al., 2019). During the eight-year period studied, emergency room visits by children who had the Regional Center for Poison Control and some sort of marijuana exposure. Researchers Prevention (RPC) recorded a 140% increase in found that 43% of patients presented with single substance (marijuana) exposures, with 81.7% complaints of suicidal ideation (Harvey et of these calls regarding marijuana exposures of al., 2022). 15–19-year-olds. 23 97

Item 3. A study conducted in Washington state found al., 2019). This phenomenon was not reported that the rate of pediatric exposures to marijuana before 2004. among children aged 9 or younger was 2.3 times higher following legalization (A. A. Thomas et al., Additionally, there is mounting evidence 2019). Poison control center cases in Washington that marijuana users are more likely to be state have increased 103.2%. Cases for children hospitalized for serious adverse health events, aged 5 and younger increased by 176.5%. In 2018, including bodily injury (G. S. Wang et al., 2017), there were 497 calls––compared with 245 when falls (Workman et al., 2021), skeletal fractures legalization in the state began (Washington (Sophocleous et al., 2017), and acute trauma Poison Center, 2018). (Vozoris et al., 2022). In fact, a 2022 study found that marijuana users were nearly 25% more Following legalization in Illinois, hospitalizations likely than non-users to be hospitalized or go for children who accidentally consumed edibles to the emergency room (Vozoris et al., 2022). A spiked. In Cook County, three children were 2022 study “observed a higher proportion of hospitalized in 2017 for THC exposure, but in 2021, hospital discharges for psychosis associated 124 children in Cook County were hospitalized with cannabis use in areas with more liberal (Ponce, 2022). cannabis legalization laws” (Moran et al., 2022). In Alaska, in 2017, there were a total of 3,296 The dramatic increase in emergency cases inpatient discharges and 6,639 outpatient related to marijuana exposure highlights discharges related to marijuana (ADHSS, 2020). the danger of commercialization. In many In Illinois, just several days after legalization, instances, the danger impacts children or doctors reported a surge in emergency room people who mistakenly consume marijuana. visits and hospitalizations for marijuana, including Innocent, unwitting citizens are subjected several cases of marijuana-induced psychosis to the consequences of a situation that they (McCall, 2020). did not create. Though it is true that marijuana misuse does not result in the same kind of immediate IMPACT ON YOUTH overdose that other drugs may cause, cases of Cannabinoid Hyperemesis Syndrome (CHS)–– The legalization of marijuana has had a profound or sometimes Cannabis Vomiting Syndrome impact on rates of youth use, coinciding with (CVS)––have increased significantly since decreases in risk perception. legalization. CHS is a disease that presents as Years of playing catch-up to alcohol and tobacco episodes of screaming and vomiting, dubbed normalization have resulted in important “scromiting,” and the only effective treatment downward trends in youth alcohol and cigarette is the immediate stoppage of marijuana use. use. But a new wave of substance use among The disease primarily affects heavy, daily users children is appearing. Given the relationship of marijuana. between marijuana use, alcohol use, and From 2010 to 2014, researchers recorded a 46% cigarette use, it is important to note that usage increase in CHS cases in Colorado (Bhandari rates of all substances among youth may rise if et al., 2019). Another study of CHS in Colorado the dangers of youth marijuana use go ignored. found at least two deaths that were caused by While some marijuana industry proponents CHS and recorded a third death that CHS is have suggested that a strict legal marijuana believed to have contributed to (Nourbakhsh et market would limit youth use, marijuana use among youth is rapidly increasing concurrently 24 98

Item 3. with legalization––while perceptions of risk Youth use marijuana differently and are affected associated with use are decreasing. For instance, by marijuana differently. Developing brains are a 2022 analysis of a longitudinal cohort study particularly susceptible to both short- and long- of 21,863 individuals found that youth in states term negative repercussions. A 2022 study found with legal recreational marijuana were more that youth marijuana users are more likely to likely to use marijuana than youth in non-legal have severe CUD and are more likely to have states (Knopf, 2022). A 2021 study found that greater psychotic-like symptoms than adult 33% of 16–18-year-olds reported marijuana use marijuana users (Lawn et al., 2022). (Masonbrink et al., 2021). A 2022 study found that this demographic of users, aged 16-17, are Youth aged 12-17 have seen a 145% increase in more likely to have severe CUD than adult users rates of Cannabis Use Disorder from 2018 to 2021 (Lawn et al., 2022). (Substance Abuse and Mental Health Services Administration, 2018, 2021). Risk perception is directly related to use. A 2022 study found that in legal states, youth In Washington state, marijuana violations have have lower perceptions of risk of marijuana use remained high since legalization in 2014. As and higher rates of use compared to non-legal of December 2019, 3,220 violations have been states (Bhatia et al., 2022). The pro-legalization documented. Violations pertaining to the sale or Cato Institute also found, “All states that have service of marijuana to a minor, or for allowing legalized marijuana fall below the average U.S. a minor to frequent a restricted area, comprised risk perception” (Dills et al., 2021). 16.3% of all of these violations (Washington State Liquor and Cannabis Board, 2020). Compounding this problem are the increasing A study of youth in Seattle also found that rates of use by adults. The 2021 Monitoring the “nonmedical marijuana legalization predicted Future report found the highest instance of a higher likelihood of self-reported past-year marijuana use in young adults aged 19–30 since marijuana and alcohol use among youth” (Bailey 1988, with 43% of young adults reporting use in et al., 2020). the past year (University of Michigan Institute for Social Research, 2022, p. 56). Among 11th graders in Oregon who currently use marijuana, 67% reported obtaining marijuana In part, the ease of obtaining marijuana has from a friend (Oregon Health Authority, 2016). contributed to youth use in “legal” states. Furthermore, 37.2% of 8th and 49.5% of 11th Restrictions on selling to minors have not stopped graders reported being exposed to online state-sanctioned vendors from selling the drug marijuana advertisements in the past 30 days to underage consumers in “legal” states. In 2020, (Oregon Health Authority, 2017). A study found 41% of young people nationwide aged 12 to 17 that one in three youth living in a state where indicated that they perceived marijuana to be marijuana is “legal” engaged with marijuana easy or fairly easy to obtain (Substance Abuse and promotions on social media. The same study Mental Health Services Administration, 2020b). found that youth who engaged with marijuana In Washington state, where marijuana is “legal,” promotions were five times as likely to use this number is much higher, with 51% of 12th marijuana (Trangenstein et al., 2019). graders believing that marijuana was easy to obtain (Washington State Healthy Youth Survey, In Washington state, 44% of 8th graders believed 2021). Additionally, 38% of high school students there to be no or low risk from regular marijuana nationwide reported having used marijuana at use, while 40% of 10th and 12th graders reported some point in their lives (Centers for Disease no or low risk from regular marijuana use. 67% Control, 2019a). of 10th and 12th graders in the state reported 25 99

Item 3. no or low risk of trying marijuana once or twice over 167% from 2017 to 2022. An average of (WSHYS, 2021). 10% of teens reported past-month marijuana vaping in 2019. In 2019, MTF first recorded data Additionally, near-daily marijuana use–– on near-daily marijuana vaping and found as reported by the University of Michigan’s that 2.4% of this age group vaped marijuana Monitoring the Future (MTF) survey––increased almost every day. That number exceeds near- dramatically from 2018 to 2019; 6.4% of 12th daily cigarette and near-daily alcohol use graders, 4.8% of 10th graders, and 1.3% of 8th among this group. A 2021 study found that graders reported near-daily marijuana use in vaporized marijuana was among the most 2019. The increase in near-daily marijuana use socially acceptable modes of use among youth among 8th graders is particularly concerning: (Romm et al., 2021). near-daily usage rates jumped 85.7% from 2018 to 2019 (Miech et al., 2019). The University As marijuana legalization advocates have argued of Michigan also found that marijuana use in that youth marijuana use falls in conjunction the past 12 months and in the past 30 days with legalization, it is important to note trends in had reached the highest levels ever reported use in states that have legalized the drug. More since 1988 (Monitoring the Future, 2021, p. 2). young people use marijuana in “legal” states–– Notably, because of the implications of the and they use it more frequently. A recent study COVID-19 pandemic (e.g. parental supervision “suggests an increase in adolescent past-month as a result of remote learning environments), consumption of cannabis following legalization” youth use decreased from these highs in 2021 (Lachance et al., 2022). These trends are driven and 2022 (Miech et al., 2023). It remains to be by the decreased perception of risk as well as seen what will happen with these national the increased availability of marijuana that numbers as kids return to school and normal accompanies legalization. Nationally, fewer living and learning environments. people, especially youth, perceive a risk from smoking marijuana. This downward trend is Youth marijuana vaping has added to the already- driven by the relaxed approach to marijuana alarming trend of increasingly prevalent marijuana in states where it’s “legal.” use among young people amid widespread commercialization. Trends in youth vaping have A 2023 study found that not only do rates of given way to a countrywide epidemic (Centers for youth past-month marijuana use increase in Disease Control, 2019b) that presents implications legal states, but perception of harm decreases. for youth marijuana use. Youth vaping of any kind This study also found that despite higher use (tobacco or flavors) has been shown in several in youth and young adults, fewer people are studies to increase the likelihood of subsequent receiving treatment for CUD (Mennis et al., 2023). marijuana vaping or marijuana use generally Researchers were careful to note that lower (Chadi et al., 2019; Kowitt et al., 2019; Sun et CUD treatment utilization does not mean lower al., 2022). rates of CUD, but means more people need treatment and fewer are receiving it. Rates of Past-year youth vaping of marijuana has CUD are increasing as potency increases and increased dramatically since the MTF survey perception of harm decreases; in fact, 1 in 3 past began recording data on the subject in 2017. month users of marijuana in the U.S. meet the As reported by this survey (Miech et al., 2019), criteria for CUD diagnosis (Lehman, 2022). lifetime, annual, and past-month marijuana vaping among 8th, 10th, and 12th graders has Despite claims by the marijuana lobby that all dramatically increased in just one year. adolescent use is not higher in “legal” states, Past-month use among teenagers increased researchers using the Monitoring the Future 26 100

Item 3. study found increases in use following 2019a). According to 2018/2019 pre-pandemic, legalization in Washington state among 8th, state-specific data in the NSDUH, 12.4% of 10th, and 12th graders (Cerdá et al., 2017). This youth in non-legal states reported past-year was confirmed by University of Washington marijuana use and 6.6% of young people in those researchers, who published in the American states reported past-month use. Comparatively, Journal of Preventive Medicine and found use rates for 12–17-year-olds in “legal” states that marijuana legalization predicted a six-fold are several percentage points higher: 16.5% increase in self-reported past-year marijuana for past-year use and 9.2% for past-month use use among youth when controlling for birth (Substance Abuse and Mental Health Services cohort, sex, race, and parent education (Bailey Administration, 2019a). et al., 2020). The issue of marijuana use among youth in An average of 16.4% of 12–17-year-olds in “legal” “legal” states is further elucidated by data states reported past-year use in 2017/2018, taken on first-use rates––the percentage of and an average of 9.4% reported past-month young people initiating marijuana use in the use (Substance Abuse and Mental Health past year (Substance Abuse and Mental Health Services Administration, 2018b). In California, Services Administration, 2019a). The average Colorado, Massachusetts, and Nevada, past- rate of first use in “marijuana-legal” states was month marijuana use among young people 7.3% in 2018/2019. In states where marijuana jumped over 4% in each state from 2016/2017 to remains illegal, first-use among 12- to 17-year- 2017/2018. In Washington state, use increased olds in 2018/2019 was 5.6%. even more dramatically: 9.9% of young people reported past-month marijuana use, marking Marijuana commercialization––and the a near 11% increase in past-month use from subsequent normalization of marijuana 2016/2017. An independent report in Alaska use––plays an important role in the increased found that 22% of high schoolers in the state marijuana use of young people. A 2017 study reported past-month use in 2019 (Alaska Youth found that the longer duration of legalization Risk Behavior Survey, 2019). and higher dispensary density was associated with increased use of vaping and consumption A study found legalization “in California was of edibles by 14–18-year-olds (Borodovsky et al., associated with an increase in adolescent 2017). Marijuana dispensary density has been marijuana use in 2017–2018 and 2018–2019,” linked to more use among youth, with 16% of which is troubling because “increases observed 11th graders reporting marijuana use in areas in California may portend continued increases with less dispensary density compared to 24.3% in adolescent marijuana use in future years if of the same age group reporting use in more marijuana use becomes more popular among retail-dense areas (A. Hatch, 2017). And a 2020 legal age adults and more normative in California” study found that regular exposure to marijuana (Paschall et al., 2021). The study also found that advertising raises the likelihood of adolescents after California legalized, teens were 18% more using marijuana (Fiala, 2020). likely to consume marijuana at any point in their lives and 23% more likely to consume in the last A 2020 study by the University of Washington 30 days (Paschall et al., 2021). finds that marijuana legalization and commercialization may have begun a reversal of These nationwide increases far exceed marijuana previous downward trends in teen marijuana use use rates among youth aged 12 to 17 in states (Bailey et al., 2020). The study, which followed where marijuana remains illegal (Substance 230 teens and young adults, found that young Abuse and Mental Health Services Administration, people may be more likely to use marijuana 27 101

Item 3. after commercialization, due to normalization concentrate, often of unspecified potency that as a result of the oversaturation of stores, can reach up to 99% THC, and inhaling the advertisements, and rapidly rising adult use vapor. One study on dabbing found that the of the drug. process may deliver significant amounts of additional toxins, such as methacrolein and The commercialization of marijuana has benzene (Meehan-Atrash et al., 2017). A 2020 also adversely impacted schools and youth study found that adolescents who dabbed academic performance. According to Joe were six times more likely to continue using Zawodny, director of secondary education for concentrated forms of marijuana later in life the Anchorage School District, “Because it’s (Medzerian, 2020). legal in the community, I think, the stigma around marijuana use is decreasing. The data There are intense ramifications to marijuana would seem to say there is increasing use” use by youth. Developing brains are especially (Wohlforth, 2018). In Washington state, high susceptible to the negative effects of marijuana schoolers reporting marijuana use also reported use, and young users have demonstrated lower grades (more C’s, D’s, and F’s) than those changes in grey matter volume, indicating of their peers who did not smoke marijuana negative consequences for brain development (Washington State Healthy Youth Survey, 2021). (Orr et al., 2019). Young users are also at a greater risk for mental health problems, dependence In Alaska, the number of youths referred for on marijuana, and future substance misuse marijuana-related crimes jumped to a high of 302 (Coffey & Patton, 2016). Chronic adolescent (Alaska Department of Health and Social Services, marijuana use has been correlated with 2020). A study also found about 22% of students cognitive impairment and worsened academic in grades 9–12 reported that illegal drugs were or work performance (Arria et al., 2015; Meier et “offered, sold, or given to them on school property al., 2015; Salmore & Finn, 2016; Schuster et al., during the previous 12 months” (National Center 2018; Silins et al., 2014). Meier et al. found that for Education Statistics, 2021). “the most persistent adolescent-onset cannabis Marijuana use among youth in “legal” states users evidenced an average 8-point IQ decline also coincides with marijuana misuse and from childhood to adulthood” (Meier et al., 2012). substance use disorder. A 2022 study found that adolescent users A 2019 study (Cerdá et al., 2020) found that of marijuana lost an average of 5.5 IQ points recreational marijuana legalization was in adulthood, compared to an average loss followed by a 25% increase in adolescent of 0.7 points among lifelong non-users (Hill marijuana use disorder. & Hsu, 2022). This trend speaks to the prevalence of high- Youth marijuana use poses a significant risk for potency marijuana products. A 2021 Washington depression and suicide (Gobbi et al., 2019; Silins state survey revealed that 33% of 12th graders, et al., 2014). In Colorado, where teen suicides 36% of 10th graders, and 37% of 8th graders who have become the cause of one in five adolescent used marijuana reported that they dabbed it. deaths (Daley, 2019), youth suicide toxicology These numbers are up significantly from 2018 reports have demonstrated this devastating when 13% of 8th and 10th graders and 19% effect. In 2013, marijuana was present in 10.6% of of 12th graders reported dabbing marijuana suicide toxicology reports for young people aged (Washington State Healthy Youth Survey, 15 to 19 years; in 2017, marijuana was present in 2021). Dabbing involves heating marijuana over 30% (Colorado Department of Public Health 28 102

Item 3. & Environment, 2023). One study found that aged 18 to 25 reported lifetime, past-year, and marijuana was the most common substance past-month use in higher numbers compared found in post-mortem toxicologies of youth to other age groups at 49.9%, 35.4%, and 24.1%, suicide decedents (Choi et al., 2019). Additionally, respectively. Daily or near-daily marijuana use a 2021 study found that polysubstance use of rates of 19- to 30-year-olds reached a new high marijuana, alcohol, and tobacco was associated in 2021. In 2021, more than 42.6% of that group with depressive symptoms, anxiety, and lower reported marijuana use in the last year; 28.5% grade point averages (Crane et al., 2021). reported using in the last 30 days (University of Michigan Institute for Social Research, 2022, p. The efforts to legalize marijuana are playing 56). In 2021, the National Institute on Drug Abuse out with devastating effects on youth across found that marijuana use reached a historically the country, while public health agencies are high rate among college students, with 44% ill-equipped to mitigate the consequences. But reporting use in 2020 (National Institute on youth are not the only group at risk. Drug Abuse, 2021). Higher instances of marijuana use disorder IMPACT ON YOUNG ADULTS have been reported by people aged 18 to 25, Though the legal age for marijuana consumption coinciding with higher rates of marijuana use. in “legal” states is 21, marijuana use during young In 2021, 14.4% of adults aged 18–25 reported adulthood carries a host of adverse effects. marijuana use disorder, up 144% from 2018 Marijuana has a particularly strong impact on (Substance Abuse and Mental Health Services developing brains, which continue to develop Administration, 2021d, p. 5). through a person’s late twenties. Unfortunately, These trends in use are most dramatic marijuana use in this age group is higher than in states that have legalized marijuana that of any other. (Substance Abuse and Mental Health Services The low perception of risk associated with Administration, 2019a). The percentage of young marijuana use, as well as the highest use adults, aged 18 to 25, reporting past-year and rates of all age categories, makes marijuana past-month use in 2018/2019 was significantly an unexamined issue for many young adults. higher than young adults in legal states. An average of 44.5% of young adults in legal states According to the NSDUH (Substance Abuse and reported past-year use and 30.5% reported past- Mental Health Services Administration, 2021c, month use. In non-legal states, 33.4% of young p. 3), in 2021 young adults across the country adults reported past-year use and 21.2% reported had the lowest percentages of perception past-month use. Legalization has not reduced of risk associated with marijuana use. Only use; it has encouraged and accelerated it. 11.6% of young adults believed that smoking marijuana once a month was risky and only 15.2% Given what we know about marijuana’s perceived a great risk from smoking marijuana effects on the developing brain, young adults once or twice a week. This is far lower than the should be discouraged from using it, but the perception of risk of people aged 26 and up: commercialization of marijuana instead heavily 22.9% perceive great risk from smoking once promotes it––without providing any warnings a month and 27.3% perceive a great risk from about its risks. The same health risks faced by smoking once or twice a week. teen marijuana users affect young adult users. Although initiating marijuana use during the Young adult marijuana use outpaces other early teen years is thought to be associated with age groups in the United States. Young adults a greater risk of psychosis than if the use begins 29 103

Item 3. in young adulthood (Arseneault et al., 2002), this Marijuana legalization poses a significant threat does not mean continuing use through young to low-income and minority communities. adulthood is safe even for those who have not Though industry proponents suggest that yet exhibited marijuana-induced psychosis, nor marijuana legalization will alleviate injustices that commencing use is safe after age 20. Often, against socioeconomically disadvantaged marijuana-induced psychotic symptoms develop populations, disparities in use and criminal in young adulthood, with consolidation of those offense rates have persisted in states that symptoms into a chronic disorder occurring over legalized marijuana. a period of 8 or more years (Niemi-Pynttäri et al., 2013). The frequency of use and the potency While it is important to evaluate the impact of of the product have been found to be more incarceration within certain communities, it important than the age at which use began is also important to understand the impact for increasing the odds of a psychotic outcome of marijuana legalization on those same (Forti et al., 2019). Conversely, the cessation of communities. It is inappropriate to suggest that use is a protective factor (Gonzalez-Pinto et al., only through marijuana legalization will social 2011; Schoeler et al., 2016). justice be achieved or criminal justice inequity remedied. In fact, no such effect has been Co-use also presents a compounded harm to demonstrated in the states where marijuana young-adult users. As this age group goes off has been made “legal.” to college––where drinking, drug use, and other kinds of experimentation are prevalent–– Instead of addressing social justice disparities marijuana may be used in conjunction with other in one fell swoop, legalization exacerbates drugs, presenting a risk for future substance these problems in lower income and minority use disorder. Researchers from Oregon State communities. What’s more, the marijuana University found that college students who industry has identified them as an important were binge drinkers before the age of 21 saw new consumer base. relatively large increases in marijuana use after An early study of medical marijuana legalization (Kerr et al., 2017). implementation in California found that A 2023 study found that college students marijuana dispensaries were disproportionately who used marijuana and alcohol were at a located within areas where the demand for significantly higher risk of serious adverse marijuana was higher, where there were higher consequences (M. R. Hatch et al., 2023). A 2021 rates of poverty as well as a greater number study in JAMA Pediatrics also found that “Young of alcohol outlets (Morrison et al., 2014). In adults who reported co-use of alcohol and other words, when choosing where to locate marijuana or met criteria for alcohol use disorder dispensaries, owners followed the data to and/or marijuana use disorder accounted for low-income communities. Further studies of 82.9% of young adults with prescription drug marijuana dispensaries in Los Angeles found use disorder and 85.1% of those with illicit drug that the majority of dispensaries have opened use disorder” (McCabe et al., 2021). primarily in African American communities (C. Thomas & Freisthler, 2017). And an overlay of socioeconomic data with the geographic IMPACT ON COMMUNITIES location of pot shops in Denver shows marijuana OF COLOR AND LOW- stores are disproportionately located in disadvantaged neighborhoods (Hamm, 2016). INCOME POPULATIONS In Oregon, the state conducted an analysis on the distribution of state-sanctioned dispensaries 30 104

Item 3. and found that sites were concentrated among 17 was more prevalent among African Americans low-income and historically disenfranchised and AIAN youth. For example, nationally, 6.7% communities (McVey, 2017; P. Smith, 2017). of young people aged 12 to 17 reported past- A 2020 study found that racial minorities in month marijuana use, with 6.8% of Caucasian California were disproportionately exposed to youth using it in the past month. Comparatively, unlicensed marijuana sellers, which comes at 7.5% of African American youth and 9.4% of the cost of “potentially exacerbating health AIAN youth reported past-month marijuana disparities by selling unregulated products or use. Interestingly, past-month use was lower for selling to minors” (Unger et al., 2020). 12–17-year-olds identifying as Black or African American in both 2019 and 2020 than it was Even though dispensaries are often located for white 12–17-year-olds. White 12–17-year-olds in low-income communities of color, those appear to have reported the highest numbers communities do not reap the profits. in past-month usage. Past-year use was 17.3% for Black or African American 12–17-year-olds in In fact, fewer than 2% of marijuana business 2019, compared to 17.0% for white individuals, operators are Black (Gibson, 2021). Less than but was 11.3% in 2020 as compared to 14.9% 20% of business owners and founders are for white individuals in the same age group minorities (Koski, 2022). In Denver, 74.6% (Substance Abuse and Mental Health Services of dispensary licensees are white and only Administration, 2021b, p. 1). 12.7% are Hispanic (Levine, 2021). The decreased perception of risk associated As a result, the harms associated with marijuana with marijuana use during pregnancy dispensary locations (such as increased use and has a particularly damaging impact on misuse, normalization, hospitalizations, etc.) socioeconomically disadvantaged communities. are disproportionately concentrated within A study by the American College of Obstetricians particularly vulnerable communities while and Gynecologists reported that young, urban profits are raked in outside such communities. women from lower income levels have a 15– 28% rate of marijuana use during pregnancy The importance of this cannot be overstated. (American College of Obstetricians and Historically, disadvantaged communities lack Gynecologists, 2017). As previously stated, many of the resources needed to combat the marijuana use during pregnancy has a host of industry’s targeting and also often lack adequate dangerous consequences for neonates. A 2021 access to proper drug treatment facilities, study found that cannabis use or dependence thereby exposing community members to an is highest among pregnant women who are 25 increased likelihood of substance misuse with years old or younger, low-income, Medicaid- limited resources to combat the consequences insured, and receiving care at urban teaching (Kneebone & Allard, 2017). What the country has hospitals (Gesterling & Bradford, 2022). seen in the fallout of the opioid epidemic and the expansion of Big Tobacco (Truth Initiative, From an economic standpoint, advocates of 2018) is being replicated by Big Marijuana. the marijuana industry often argue that any detrimental effects of marijuana will be offset In 2021, past-year and past-month use by the cash potential of the drug. Proponents among minority young people was higher of legalization suggest that the new industry than the average, as reported by SAMHSA presents previously disenfranchised groups (Substance Abuse and Mental Health Services with new economic opportunities. In reality, Administration, 2021b, p. 1). Past-month and although some states have attempted to use past-year marijuana use among youth aged 12 to legislation to protect and provide for minority 31 105

Item 3. marijuana business owners, the industry is litigation complexities of our densely-populated, largely bereft of diversity. Nationally, fewer than metropolitan-bookended state—I fully oppose 2% of all marijuana businesses are owned by it” (Rice, 2019). minorities (Schoenberg, 2018). Legalization is not a blanket solution to social Massachusetts serves as a case study for this injustice. In fact, it may perpetuate it. phenomenon. As of 2021, only 10 of the 280 cannabis business licenses awarded in “Seeing firsthand how drugs eviscerate Massachusetts were awarded to Economic urban communities––and understanding Empowerment or Social Equity applicants (Cotter, how marijuana legalization will impact the 2021). The state requires all “Marijuana Agents,” health, education, economics, business, persons who work at marijuana businesses, to liability and litigation complexities of our densely-populated, metropolitan-bookended register with the state. Demographic analysis state––I fully oppose it.” (Rice, 2019). revealed that of 1,306 agents who applied in the city of Boston, 6% were Hispanic and 4% African American. This is unrepresentative of the city’s population (US Census Bureau, 2019). Indeed, IMPACT ON HOMELESSNESS an exposé by the Boston Globe revealed that a Though the extent to which a correlation handful of out-of-state marijuana corporations may exist between the increasing homeless had locked-in almost all of the licenses through population and the legalization of marijuana shell companies (Wallack & Adams, 2019). In 2021, is unclear, some trends in this area are notable. 72.4% of these “Marijuana Agents” identified as white, while only 7.6% identified as Hispanic and A 2022 comprehensive study from Clemson 6% identified as Black (T. Smith, 2021). University determined that data “strongly suggest that RCL [recreational cannabis In Chicago, Illinois, where not one of the 11 existing legalization] adoption may cause an increase growers licensed to sell recreational marijuana was in aggregate rates of homelessness” (Sanderson, African American, the city council’s Black Caucus 2022). Statistics from individual state data pushed back. Soon after the state legislature appear to support this claim. In Colorado, for legalized recreational marijuana, local African example, the homelessness rate appears to have American legislators took issue with the obvious increased with the expansion of recreational discrepancy (Koziarz, 2019). Still, Chicago Mayor marijuana. The U.S. Department of Housing and Lori Lightfoot, who received $123,000 from the Urban Development reported a 13% increase in marijuana industry in her contentious bid for Colorado’s homeless population from 2015 and mayor, suggested that those councilmembers 2016, while the national average decreased 3% take the issue up with the state legislators in (Burke & Acuna, 2017). Business owners and Springfield. Legalization was implemented on officials in Durango, Colorado, have testified that schedule. In 2022, there was only one minority- the resort town “suddenly became a haven for owned dispensary in Illinois (Vinicky, 2022). recreational pot users, drawing in transients, The late New Jersey State Senator Ron Rice panhandlers, and a large number of homeless was among the most vocal leaders against drug addicts” (Kolb, 2017). marijuana legalization. He wrote in an op- Youth homelessness is often negatively ed, “Seeing firsthand how drugs eviscerate impacted by marijuana use. A 2018 study urban communities—and understanding how found that daily marijuana use among young marijuana legalization will impact the health, men substantially increases the probability education, economics, business, liability, and of becoming homeless (McVicar et al., 2019). 32 106

Item 3. Additionally, a 2022 study found that the co-use normalization of marijuana in the United States. of marijuana and tobacco was common among In 2019, 14.8 million U.S. residents reported driving youth experiencing homelessness, with 85.4% under the influence of marijuana in the last 30 having reported marijuana usage in the past days, up from 12 million in 2018. (Gross, 2019). month (Glasser et al., 2022). This represents 6.5% of the driving population. Marijuana users who drive high are twice as A 2018 study, conducted by the Colorado likely to be involved in a crash (Gross, 2019). A Division of Criminal Justice, surveyed seven 2020 analysis of crash data in legal states found Colorado jail populations. It yielded results that if marijuana were legalized nationwide, the that further link homelessness and marijuana U.S. would suffer an additional 6,800 excess fatal use (Colorado Division of Criminal Justice, 2018). crashes every year (Kamer et al., 2020). The study, though small, found that 50.8% of respondents reported using marijuana 30 days The COVID-19 pandemic affected nearly every prior to their time in jail. Additionally, 54.9% of part of life, including driving. Fewer Americans respondents who were homeless prior to their drove during the early months of the pandemic jail time reported marijuana use 30 days prior and crashes went down in the first half of to it (compared with 36.1% reporting alcohol 2020 but spiked in the latter half of 2020 use). Of note, “The total number of marijuana (US Department of Transportation, 2022). In arrests decreased by 68% between 2012 and Colorado, fatal DUI crashes doubled during the 2019, from 13,225 to 4,290,” and “The total first half of 2020 and alcohol- and marijuana- number of marijuana-related court case filings related crashes were up 32% compared to the declined 55% between 2012 and 2019, driven first half of 2019 (Grewe, 2020). While data is still primarily by decreases in misdemeanors and forthcoming on the impact of the pandemic on petty offenses,” according to a 2021 press release driving in other states, according to the NHTSA, from the Colorado Division of Criminal Justice active THC was more prevalent among drivers (Colorado Division of Criminal Justice, 2021). during the COVID-19 pandemic than alcohol, with 32.7% testing positive for THC and 28.3% The study also found that of the respondents, testing positive for alcohol (US Department of 38.5% were Colorado natives and 61.5% were Transportation, 2020). not. Of the non-Colorado natives surveyed, 35.1% reported marijuana as his or her reason In Michigan, a survey found that 51% of medical for moving to Colorado after it was legalized in marijuana users admitted to driving while “a 2012 (Colorado Division of Criminal Justice, 2018). little high,” and one in five of those surveyed admitted to driving while very high (Rounds, Considering the impact of homelessness on 2019). A 2022 Virginia survey found that 60% of communities––and the resources required past 3-month users reported driving while under to help those impacted by it––it is worth the influence in the last few months and 26% further investigating the correlation between of past 3-month users reported driving under homelessness and legalization. the influence of marijuana at least once a week (Stratacomm, 2022). 48.8% of teen drivers who IMPACT ON currently use marijuana reported driving under the influence (Li et al., 2020). IMPAIRED DRIVING Legal states are chasing the science on in-field Driving while under the influence of marijuana THC testing and hoping science catches up has proven itself to be an increasingly damaging to policy, as opposed to allowing science to phenomenon due to the legalization and dictate policy. The science is clear: driving under 33 107

Item 3. the influence of marijuana is dangerous. The marijuana actually makes people safer drivers National Institute on Drug Abuse maintains (Stratacomm, 2022). that marijuana use impairs driving in a number of ways: by slowing reaction time, decreasing A survey conducted by AAA found that only 65% coordination, and impairing judgment of time of drivers perceived driving within an hour of and distance. According to a 2021 AAA study, using marijuana as extremely dangerous or very speeding on residential streets when co-using dangerous, compared with 94% who felt that alcohol and marijuana was 55% compared to driving under the influence of alcohol above 35% alcohol-only, and aggressive driving was the legal limit was extremely or very dangerous marked at 52% compared to 28% for alcohol- (AAA Foundation for Traffic Safety, 2022). The only (Gross, 2021). answers from younger drivers were even more alarming. Of respondents between the ages of A 2020 double-blind randomized clinical trial 19 and 24, only 63.1% believed that driving under to assess the impact of vaped marijuana on the influence of marijuana was extremely or driving found that THC impairs driving skills. very dangerous, but 100% of respondents in that Drivers who consumed THC had more difficulty age group said that driving while over the legal maintaining lane position for up to five hours limit for alcohol is extremely or very dangerous after consuming THC (Arkell et al., 2020). This (AAA Foundation for Traffic Safety, 2022). This study confirms previous findings: a 2010 study disconnect is concerning. The overall downward found THC use affects multitasking (Lenné et trend in perception of risk has coincided with al., 2010) and a 2013 study found that smoking an increased percentage of marijuana-impaired increases lane weaving, slows reaction times, drivers on the road. and hurts a driver’s ability to perform divided- attention tasks (Hartman & Huestis, 2013). According to the biological results of Washington’s Roadside Survey, “nearly one in Polysubstance use––using marijuana along five daytime drivers may be under the influence with alcohol or another drug––compounds of marijuana, up from less than one in 10 drivers the risk of a vehicle crash more than the drugs prior to the implementation of marijuana being used alone (National Institute on Drug retail sales” (Grondel et al., 2018). A 2021 study Abuse, 2019b). Drivers under the influence of found that 29.5% of cannabis users have driven marijuana and alcohol are more dangerous than under the influence of marijuana, and daily drivers who consume marijuana alone or alcohol cannabis users had a 57% predicted probability alone (Hartman & Huestis, 2013). Nevertheless, of driving under the influence (Salas-Wright et marijuana-impaired driving is rising while al., 2021). The Washington state Healthy Youth the perception of its negative consequences Survey found that in 2021, 9% of 12th graders is decreasing. drove after using marijuana and 15% rode with a driver who was using marijuana (Washington The reduced perception of risk and the State Healthy Youth Survey, 2021). In Alaska, prevalence of stoned drivers on the road bear one in 10 high school students had driven after consequences for road safety and raise questions using marijuana (Alaska Department of Health for legislators and law enforcement going and Social Services, 2020). forward. This false perception that marijuana makes people better drivers is growing, In Colorado, DUIDs (driving under the influence especially among frequent users. A 2022 Virginia of drugs) have risen in recent years and Colorado survey found that 68% of people who used traffic fatalities where the driver tested positive marijuana in the last 3 months claimed that for marijuana have been consistently rising (with a slight decrease in 2018) despite varying 34 108

Item 3. numbers of traffic fatalities annually (Rosenthal the state, marijuana-impaired drivers comprised & Reed, 2022). Now, 1 in 4 road deaths in Colorado around 8.8% of all drivers implicated in traffic involve marijuana (Colorado Division of Criminal fatalities. In the years following, the rate jumped Justice, 2020). Out of Colorado drivers who to around 18% (Stratton, 2020). AAA writes, were tested for drugs and alcohol in 2019, 47% “AAA opposes the legalization of marijuana of drivers tested positive for THC; 19% tested for recreational use because of its inherent positive for alcohol and THC; and 6% tested traffic safety risks and because of the difficulties positive for alcohol, THC, and a third substance in writing legislation that protects the public (Rosenthal & Reed, 2022). Additionally, there are and treats drivers fairly” (Stratton, 2020). AAA more intoxicated drivers who test positive for also reported that “drug use among nighttime THC and alcohol together than those who test weekend drivers has risen by 25 percent since positive for alcohol alone (Rosenthal & Reed, the previous survey in 2007, and driver use of 2022). In fact, 40% of Colorado drivers who are cannabis has spiked by 46% in that same period convicted for a DUI test positive for alcohol, THC, of time” (AAA Exchange, 2022). and at least one other substance (Rosenthal & Reed, 2022). After Canada legalized marijuana, trauma centers in British Columbia reported double In a 2022 Colorado report of DUID data, of all the number of moderately injured drivers who case filings where a cannabinoid screen was tested with a THC level of at least 2 ng per conducted after a driver was pulled over for milliliter (Brubacher et al., 2022). Research by demonstrating impaired driving, marijuana the Highway Loss Data Institute found that was detected in 2,848 of the cases, about 90% the legalization of recreational marijuana in of drivers who were tested. Of these positive Colorado, Oregon, and Washington coincided screens, 82.9% tested positive for 1.0 to 5.0+ with an increase in collision claims (Highway active THC (Rosenthal & Reed, 2022). What’s Loss Data Institute, 2018). more, 49.2% of those who tested positive for THC tested positive for extremely high levels Compounding the risk of an increasingly of the drug, with a THC level of 5.0 or higher. impaired driving population is the difficulty posed to law enforcement officers who attempt In Colorado, traffic fatalities have increased to stop and detain marijuana-impaired drivers. over 51% since 2013 (Colorado Department of The smell of marijuana in a suspected driver’s car Transportation, 2023). The rise in statewide is no longer enough to make an arrest in many traffic fatalities has coincided with a rise in states, including in states that have not legalized instances of traffic fatalities where the driver marijuana (Romo, 2019). Technology that can tested positive for THC. The number of traffic accurately determine THC levels is under- fatalities involving drivers who tested positive developed and lacks the certainty of traditional for marijuana in Colorado rose from 55 deaths breathalyzers. The quick metabolization of THC in 2013 to 115 deaths in 2018. In 2018, 18.2% of all renders it difficult to detect, requiring tests to traffic fatalities in Colorado involved a driver who be administered quickly in suspected cases. tested positive for marijuana (Rocky Mountain High Intensity Drug Trafficking Area, 2021). Additionally, many states have struggled to create a standard level of impairment when THC A recent report released by AAA found that is detected (Queally & Parvini, 2018). Studies the number of drivers who tested positive for are mixed on what level of THC constitutes marijuana after a fatal crash doubled after impairment. Recently, scientists found that legalization in Washington state. Researchers drivers may still be impaired from marijuana found that in the five years prior to legalization in use well after intoxication, demonstrating an 35 109

Item 3. increased likelihood of poor driving performance, Colorado Organized Crime Control Act that were increased accidents, and decreased rule- linked to a marijuana charge increased 643% following (Dahlgren et al., 2020). In response, from 2013 to 2017 (Colorado Department of Public 13 states, including Michigan, Arizona, and Safety, 2021). Further, crimes against society, such Pennsylvania, implemented a zero-tolerance as drug violations, have increased 44% since 2014 policy regarding driving under the influence (Denver Police Department). of any detectable amount of THC (Governors Highway Safety Association, 2021). Colorado’s crime rate in 2016 increased 11 times faster than the 30 largest cities in the nation Many of the “legal” states failed to establish since legalization (Mitchell, 2017). In 2018, data laws and guidance prior to legalizing marijuana, from the Colorado Bureau of Investigation leaving law enforcement officers in the dark as demonstrated a 14.2% increase in property crime legislators played catch-up to dangerous trends. since 2013––157,360 to 179,650––and a 36.5% As a result, road safety has been compromised. increase in violent crime since 2013––18,475 to 25,212 (Rocky Mountain High Intensity Drug Trafficking Area, 2019a, p. 52). TRENDS IN CRIME SINCE LEGALIZATION Though arrests for marijuana offenses had declined in the years prior to legalization in Marijuana legalization advocates have argued Colorado, they are increasing again. In 2013, that legalization will reduce overall crime. arrests for marijuana sales offenses were at a However, in “legal” states, marijuana crime low of 337, having decreased 52.1% since 2008. rates have risen at a faster rate than other states From 2013 to 2018, arrests for marijuana sales across the country. offenses increased 29.4%. Additionally, prior to legalization, from 2008 to 2013, arrests for all While it is difficult to say whether crime drug sales offenses declined 54.9%. In the years can be causally associated with marijuana following legalization, arrests for drug sales legalization, some studies shed light on a offenses have increased 11% (Federal Bureau of correlation. A 2019 study conducted in Denver Investigation, 2018). found that the prevalence of both recreational and medical marijuana dispensaries in Denver Overall, while increased crime has not been neighborhoods is significantly and positively definitively linked to marijuana legalization, associated with increased crime (Hughes et al., these upward trends in property crime and 2019). A 2021 study linked recreational marijuana violent crime––as well as crimes against legalization in Oregon to increased property society––warrant further investigation. crime and violent crime, although further research is needed (Wu et al., 2021). A 2022 study A THRIVING in Oregon “found that counties in [Oregon] have experienced increases in simple assault UNDERGROUND MARKET rate following legalization, relative to rates in the 19 non-legalized states” (Wu & Willits, 2022). Commercialization advocates have long argued that legalization will reduce black market Researchers found that Denver neighborhoods marijuana activity in “legal” states. They claim adjacent to marijuana businesses saw 84.8 more legalization will prevent the exporting of property crimes each year than those without marijuana to non-legal states, serve as a money- a marijuana shop nearby (Freisthler et al., 2017). maker for state budgets, bolster consumer The number of court filings charged with the safety, drive out Drug Trafficking Organizations 36 110

Item 3. (DTOs), and free up law enforcement time. many landowners have given up (LaMalfa, 2022; However, the legalization and commercialization St. John, 2022). of marijuana have led to greater black-market activity than ever before. States do not see a A report from NBC found that 70–80% of surplus in funds, consumer and environmental marijuana sold in state-legal dispensaries in protections prove meaningless, DTOs are California was produced and grown illegally operating in legal states and not trying to (NBC News, 2022). The illegal supply is also of hide it, but because of legalization, now law course being diverted to other states. Even enforcement officers have fewer tools to combat California Governor Gavin Newsom in 2016 illegal activity. admitted that 85–90% of California-produced marijuana was exported (Fuller, 2019). Instead The unchecked proliferation of the marijuana of solving that issue, now the Governor is industry has abetted some of these conceding and in September 2022 signed significant problems. The market saturation legislation to permit the exporting of California and overproduction permitted and written marijuana to other legal states, a clear violation into law by “legal” states have caused of constitutional interstate commerce powers tremendous problems for regulators and (Office of Governor Gavin Newsom, 2022). law enforcement. Illegal marijuana originating from “legal” states All legal states have failed to curtail the illicit is uncovered at increasingly high rates. In its 2019 market, but no state has fared as poorly as National Drug Threat Assessment report, the California. A bombshell Los Angeles Times DEA (Drug Enforcement Administration, 2019) series published in September 2022 found found that states with the highest marijuana the illegal marijuana market in California is removals came from states with major border much worse than the government wants to crossings or states with medical or recreational acknowledge. The LA Times calculated that marijuana markets. These states give cover to the illegal grows outnumber legal grows by illegal activity; black-market problems abound. as much as 10:1 (Twitter et al., 2022) but not all counties are equally equipped to deal with the Illicit activity has proliferated with marijuana illicit market. The 56% of CA counties that have legalization, much of it tied to “state-legal” opted-out of marijuana sales are prohibited marijuana. Many pro-marijuana figures have from using state government funds to combat suggested the black market causes problems illegal grows and instead rely on federal funds. because other states have not legalized marijuana. This misguided policy, in combination with the This is not true. The unfettered black market will lowering of criminal penalties for illegal grows, always be able to undercut the “legal” market. has lowered the cost of business for illicit actors Despite their widespread legality, cigarettes and emboldened their actions. are still one of the most trafficked commodities (Kilmer, B., et al., 2010; USA Today (Mar. 17, Not only do these illegal grows rely on trafficked 2014; Zinsmeister, J., 2015; Center for Public workers for labor, they also ignore environmental Integrity, 2009). regulations, including pesticide limits and water restrictions in the midst of California’s It is well documented that Oregon’s supply most severe water shortage in recent memory of marijuana far outweighs the demand for (St. John, 2022). These illegal grows set up shop the drug in the state’s legal market. Between on federal land or commandeer private land July 2015 and January 2018, 14,550 pounds of and engage in coercion and acts of violence; illegally trafficked Oregon marijuana, worth approximately $48 million, was seized en route 37 111

Item 3. to 37 different states (Oregon-Idaho High The proliferation of high-potency THC extracts Intensity Drug Trafficking Area, 2018). According has made smuggling logistically easier. The to a report from the Oregon Liquor Control Oregon-Idaho HIDTA seized 91 clandestine labs Commission, the supply of marijuana is twice in 2021; 90 of the labs were producing BHO/ the level of demand. Oregon’s overproduction honey oil, a marijuana extract (Oregon-Idaho issue is so vast, the state has enough marijuana High Intensity Drug Trafficking Area, 2022a). to meet the current demand for at least six years (Oregon Liquor Control Commission, 2019). Despite the dropping seizures of marijuana A 2019 audit by Oregon’s Secretary of State at the southern border, the supply of illicit found that the volume of marijuana produced marijuana has not decreased; on the contrary, in Oregon is nearly 7 times its local consumption it has boomed. The Oregon-Idaho HIDTA alone (Oregon Secretary of State, 2019). A 2021 report seized 875% more marijuana in FY22 in their found that this trend of supply outweighing region than was seized at the U.S. southern demand continued, even after Oregon saw a border during the same time period (Oregon- jump in demand amid the COVID-19 pandemic Idaho High Intensity Drug Trafficking Area, (Oregon Liquor Control Commission, 2021). 2022b). In 2020, the Central Valley California HIDTA, one of the 4 HIDTA regions in California, Adding to this issue, the same 2019 Oregon seized 662,063 kilograms of illicit marijuana audit found that black market marijuana (Central Valley California High-Intensity Drug fetches prices several times higher than “legal” Trafficking Area, 2021). In 2020, Colorado law marijuana. As the U.S. Attorney in Oregon enforcement seized 5,028 kilograms (5 metric reported in 2018, the state has “an identifiable tons) of bulk marijuana. Officials recorded and formidable marijuana overproduction 21 different states to which marijuana was and diversion problem” (Flaccus, 2018). Still, destined (Rocky Mountain High Intensity Drug marijuana proponents in numerous states seek Trafficking Area, 2021). faster license approvals and more marijuana licenses (Alfosni, 2019). The 2021 Recreational “Legal” states also have a proliferation of Marijuana Supply and Demand Report found illegally produced marijuana, even in their that since Oregon released its last report in state-licensed dispensaries. In “legal” states, 2019, production has increased by 78% and illegal grow operations have easily blended their cannabis sold has increased by 150% (Oregon production facilities with “legal” ones and have Liquor Control Commission, 2021). taken advantage of rural cover to hide from law enforcement. In Washington, Okanogan In 2018, Colorado law enforcement seized County Chief Criminal Deputy Steve Brown 12,150 pounds (6.1 tons) of bulk marijuana and told NPR reporters that prior to legalization, officials recorded 25 different states to which operations of the kind he continues to uncover marijuana was destined (Rocky Mountain were “hidden up in the hills.” Now, he finds some High Intensity Drug Trafficking Area, 2019b). In just off roads and within sight of neighbors. addition to physically moving marijuana out Other investigations have uncovered illegal of state in vehicles, much of it is sent via the operations run by people who were licensed U.S. Postal Service. In FY15, USPS apprehended in other “legal” states (Kaste, 2018). approximately 34,000 pounds of marijuana, but in FY19, USPS apprehended 93,651 pounds In California, according to recent reports, the of marijuana, a 175% increase in 5 years (Office black market outsells the “legal” marijuana of Inspector General, 2016). market at a rate of three to one. These illicit sellers have brazenly opened shops in cities across the state, hiding in plain sight and giving 38 112

Item 3. way to a perpetual game of “whack-a-mole,” quadrupled in some parts of the world over as one law enforcement officer described it. the last two decades, while the percentage of These companies also advertise on the popular adolescents who perceived the drug as harmful marijuana website, Weedmaps, blending in fell by as much as 40 per cent”––this has led with “legal” sellers. When the state warned to a 22% increase in worldwide drug use since Weedmaps to stop permitting illegal operators 2010, which drug trafficking organizations have to advertise, CEO Chris Beals complained that been working to supply (UN Office on Drugs the problem was not his company’s fault but and Crime, 2021). rather a result of the state prohibiting more retail marijuana licenses (Romero, 2019). The corruption permeates the state-legal market. The DEA reports that financial backing Local illicit actors are not the only beneficiaries for some state-legal marijuana businesses flows of “legal” marijuana. The proliferation of black- from illicit revenue and DTOs that illegally shelter market marijuana bolsters the businesses of profits from marijuana businesses and undercut well-financed international cartels, which extend tax revenues anticipated by state governments as far north as Alaska (Alaska State Troopers, (Drug Enforcement Administration, 2020). 2016). The DEA found that Asian drug trafficking organizations (DTOs) were operating grow The Drug Enforcement Administration concluded facilities across the state of Washington (Drug in their 2020 National Drug Threat Assessment: Enforcement Administration, 2020). “Domestic production and trafficking of marijuana will likely increase as more states adopt or change Cartel presence in California has only expanded current marijuana laws to establish medical or since legalization. In California, authorities recreational marijuana markets, allowing criminals suspect––based on phone records and wire to exploit state legality” (Drug Enforcement transfer activity, as well as figurines commonly Administration, 2020). associated with cartels, such as those depicting Jesus Malverde––that illegal marijuana activity is tied to the Sinaloa and La Familia Michoacana TAX REVENUE cartels (Magdaleno, 2018). In 2021, the Oregon- FROM LEGALIZATION Idaho High Intensity Drug Trafficking task force identified 136 DTOs with foreign and domestic Regulated marijuana has not been the revenue connections (Oregon-Idaho High Intensity Drug cash cow that industry advocates promised. Trafficking Area, 2022a). Despite having some of the highest marijuana taxes in the country, California has still not seen A 2022 report found the Sinaloa Cartel, previously a boom in tax revenue. California’s projected led by the Mexican drug trafficker Joaquín marijuana tax revenue by July 2019 was nearly “El Chapo” Guzmán who is now serving a life half of what was originally expected when sentence in U.S. federal prison, was lobbying the state permitted retail sales in 2018 (Blood, in favor of marijuana legalization in Mexico, 2019; Fuller, 2019). The FY21-22 marijuana tax presumably because cartels could find a “legal” revenue was only 0.49% of the state’s entire way to get into the drug business and launder budget (California Department of Tax and Fee money from other drugs as well (Chaparro, 2022). Administration, 2022). The legality of marijuana in some states In Alaska, marijuana tax revenue represented continues to boost the underground market. 0.29% of the state budget, in Oregon 0.30%, and Additionally, the United Nations’ 2021 World in Colorado, it represented nine tenths of one Drug Report found that “cannabis potency has percent of Colorado’s 2022 statewide budget 39 113

Item 3. (Smart Approaches to Marijuana, 2022). While by the citizens of marijuana-friendly states is marijuana’s supporters may point to the fact not accurate. that Colorado received $332 million (projected) in tax revenue in 2022 (Colorado Department Proposition 64, the marijuana ballot measure of Revenue, 2022), a study from Colorado in California, received just over 57% of the vote Christian University found that every $1 in tax when it appeared on the ballot in 2016. Yet 68% revenue resulted in approximately $4.50 in costs, of California localities have opted out of allowing ranging from additional healthcare costs to more marijuana shops to open (Nieves, 2021). This students dropping out of high school (Centennial means the “legal” shops will be concentrated Institute, 2018). in a handful of towns and communities. While California has 2.1 dispensaries for every 100,000 In 2022, California cut several marijuana-related residents, Alaska has a rate of 20.3 dispensaries taxes in hopes of saving “failing” marijuana for every 100,000 residents, Oregon has a rate of businesses (Yee, 2022). In reality, many state- 17.9, and Colorado has a rate of 14.2, as of October legal growers had already given up on the 2021 (Nieves, 2021). bureaucracy and had begun illegally (El Mahrer et al., 2022). Marijuana license holders complain What’s more, licensed operators have expressed that “legal” states are excessively regulated and frustration with the restrictive policies of the that taxes on the drug are too high (Alfosni, localities, prompting one legislator to craft a 2019). They go as far as to say that regulation and law that would require towns that opted out taxes are the reason the black market continues to permit at least one marijuana business for to dominate. As we have seen in California, that every four bars or restaurants. According to a contention is ill-founded for several reasons. The Los Angeles Times report, that would result in regulatory and compliance systems instituted nearly 2,200 new marijuana shops across the in the “legal” states were instituted with little state (McGreevy, 2019a). The legislation runs foresight. State compliance officials are left counter to what the citizenry was promised in on their heels while various regulatory and the ballot initiative. compliance issues become exposed. The Oregon The shocking discrepancy has been replicated Liquor Control Commission wrote in a 2018 across the country. When it comes to marijuana- report that, “due to the legally required rapid related ballot measures, voters may think the implementation of the recreational program, issue is very important. The picture changes OLCC has not been able to implement robust when legalization hits home. Voters choose to compliance monitoring and enforcement opt-out of marijuana in their communities in controls and processes for the recreational large numbers. This raises questions about the marijuana program” (Oregon Liquor Control political process of legalization. Commission, 2018). In Michigan, where recreational marijuana sales began in December 2019, more than 1,400 of LOCALITIES OPT-OUT OF the state’s 1,773 municipalities opted out of RETAIL MARIJUANA recreational marijuana––with 40 of 83 counties reporting none of their municipalities allowing Although marijuana legalization has been the sale of medical marijuana (WXYZ Detroit, passed by ballot measures in several states, 2019). That amounts to approximately 79% of the the picture at the local level is very different. state’s municipalities opting out of marijuana. The perception that legalization is welcomed In Colorado, another state thought to be marijuana-friendly, 64% of jurisdictions banned 40 114

Item 3. both recreational and medical marijuana sales samples purchased from licensed retailers in (Colorado Marijuana Enforcement Division). Southern California tested positive in labs for As a result, nearly 59% of licensed medical pesticides (Grover & Corral, 2019). A 2021 study and recreational marijuana locations are also found that medical marijuana is “prone to concentrated in four counties: Denver (345), contamination of metals, fungi, and pesticides El Paso (125), Boulder (68), and Pueblo (58) during manufacturing and storage processes” (Colorado Department of Revenue, 2019). (Dryburgh et al., 2018). States are ill-equipped to handle marijuana testing, and even states In New York, 58% of municipalities have opted with the most stringent regulatory requirements out of consumption sites (Rockefeller Institute have demonstrated significant lapses, which of Government, 2022). has allowed contaminated marijuana products Over 60% of municipalities and counties in to reach the market (Crombie, 2017). Licensed Oregon have opted out of marijuana sales. marijuana retailers are not incentivized to comply Although some of these jurisdictions voted after with the law and they benefit from that leeway shops set up in their cities, no new marijuana while continuing to point fingers at the black retail stores are permitted. As such, 50% of market when problems arise. As a result, the Oregon dispensaries are concentrated in three states themselves are blurring the lines between counties, with 196 of the total 666 dispensaries “legal” and illegal marijuana, by allowing “legal” located in the county of Multnomah (Oregon operators to skirt regulation. Liquor and Cannabis Commission, 2023). In “legal” states, illegal grow operations have In Illinois, similar debates are raging, with more easily blended their production facilities community mobilization than many legislators with “legal” ones and have taken advantage and community organizers have ever seen, of rural cover to hide from law enforcement. according to a report by the Chicago Tribune Additionally, illicit actors have taken advantage (McCoppin et al., 2019). The wave of anti- of federal hemp legalization. Because hemp marijuana sentiment surprised some, since and marijuana are only distinguishable through the measure passed fairly easily in the state laboratory testing, these illicit actors shield their legislature. That being said, an investigative illegal marijuana grows in legal hemp fields. report by Illinois-based newspapers found that–– (Drug Enforcement Administration, 2020). Even from January of 2017 to the spring of 2019–– legal hemp fields are not exempt from issues. marijuana companies, executives, and lobbyists The New York Times reported that sellers are donated over $630,000 to various politicians in now offering Delta 8 THC, which is derived from the state (Grace, 2019). hemp, to circumvent a law that prohibits Delta 9, the psychoactive ingredient in marijuana, While it may pay to gain the favor of legislators, from being sold (Richtel, 2021). localities are far less certain about “legal” marijuana taking over their hometowns. In a 60 Minutes story on marijuana in California, Sheriff Tom Allman took reporter Sharyn Alfonsi in a helicopter to survey an illegal grow site in “LEGAL” PRODUCTS the “Emerald Triangle”––an area of California ARE UNSAFE known for its illicit production of marijuana. He was not surprised that the operation wasn’t The lack of oversight also bears consequences for hidden. “Allman explained since Prop 64 and consumer safety. An independent investigation the legalization of marijuana, the black-market in San Diego found that nearly 30% of marijuana suppliers try to blend in with legal pot farmers sometimes on the same property” (Alfosni, 41 115

Item 3. 2019). In response, the three counties within the Furthermore, limited resources have prevented “Emerald Triangle” were given $1.5 million to law enforcement officials from investigating address the increasing rates of illegal marijuana illegal grow sites––which are often well disguised growth and crime (Barringer, 2022). on state and federally protected land. In 2017 alone, for example, 80,826 plants were seized Another major promise of marijuana proponents from Colorado public lands, compared to 4,980 was that a “legal” market would eliminate black in 2013 (CBS News, 2019). market weed and allow law enforcement officials to focus on other things. Allman laughed at Surrounding communities and ecosystems are the idea and told Alfonsi that he was “looking at stake. Marijuana facilities on federal land in forward to that day” (Alfosni, 2019). The very California are estimated to contain up to 731,000 creation of the “legal” marijuana market in pounds of solid fertilizer, 491,000 ounces of California has ushered in a more powerful illicit liquid fertilizer, and 200,000 pounds of toxic market than had ever existed before. What’s pesticides (Bernstein, 2017). These chemicals more, Allman believes that his department lacks threaten the surrounding environment and resources to combat the illegal operations. He have devastated local animal species. An illegal estimates that it only has the capacity to handle rodent poison has been associated with a rise in 10% of the illegal grows. According to a 2019 instances of death of the northern spotted owl, industry report, $8.7 billion of the revenues made a threatened species native to the northwest from marijuana sales in California’s massive (Franklin et al., 2018). cannabis market are illegal, compared to $3.1 billion in legal revenues (McGreevy, 2019b). In California, officials estimate that 70% of the illegal market is cultivated on public lands. According to one investigative report, nine out ENVIRONMENTAL IMPACT of every 10 illegal marijuana farms raided in 2018 contained traces of carbofuran, an extremely Conversations regarding the legalization of toxic and banned chemical. From 2012 to 2017, marijuana have largely ignored the threat that six times as many chemicals have been found at the industry poses to the environment. Given these operations. “These places are toxic garbage the lack of data, it is difficult to predict the full dumps. Food containers attract wildlife, and the extent of marijuana’s impact. However, early chemicals kill the animals long after the sites indications point to damaging consequences. are abandoned,” said Rich McIntyre, director of Research suggests that indoor marijuana grows the Cannabis Removal on Public Lands (CROP) emit as much CO2 as 3.3 million cars on the road Project, which is dedicated to restoring lands (Larkin & Sweeney, 2022). A 2021 report from the devastated by criminal grow sites on state and American Chemical Society identified six impact federal property in California (Weber, 2019). pathways from cannabis cultivation: land-cover “We think there’s a public health time bomb change, water use, pesticide use, energy use, ticking,” he said, because 60% of California’s air pollution, and water pollution (Wartenberg water comes from national forest land. The et al., 2021). reclamation of such illegal grow sites costs an The environment is at risk of pollution from average of $40,000 per site (Weber, 2019). both “legal” and illegal marijuana operations. As marijuana legalization expands, so too does Regulatory standards are lacking and the illicit market and the threat it poses to enforcement is low. The lack of clarity in the environment. But illegal marijuana is not regulation has blurred the line between “legal” the only culprit. Marijuana cultivation uses and illegal marijuana cultivation practices. and requires a significant amount of power. 42 116

Item 3. Indoor marijuana cultivation (which makes up market to increase by 86% by 2025 (Felbab- 80% of all growing) is highly inefficient. In fact, Brown, 2021). indoor marijuana cultivation consumes 709 kBtu/sq ft. A normal home or office building Additional studies have highlighted the need consumes just 40-50 kBtu/sq ft (Price, 2020). The for a better understanding of the consequences indoor cultivation of one kilogram of marijuana of marijuana cultivation. A 2016 study focused requires 5.2 megawatt hours of electricity and on marijuana production in Humboldt County, releases 4.5 metric tons of carbon dioxide California, found that 68% of the grow sites were emissions, comparable to that of a passenger less than 500 meters from developed roads, car in one year (Reitz, 2015; US Environmental introducing a risk of landscape fragmentation; Protection Agency, 2023). Indoor cultivation that 22% of grows were on steep slopes, posing in Massachusetts makes up 10% of the state’s a risk for erosion, sedimentation, and landslide; industrial electricity consumption (Young, 2021). and that 5% were less than 100 meters from Marijuana cultivation is so energy intensive that threatened fish habitats (Butsic & Brenner, its emissions are similar to levels caused by coal 2016). A subsequent study found that marijuana mining in Colorado (Summers & Quinn, 2021). farming has drastic impacts on its surrounding environment, an important observation as the Marijuana production is nearly four times more industry seeks to expand (I. J. Wang et al., 2017). energy intensive than coal or oil production (Mills, 2012). The Alliance to Save Energy found, From 2012–2016, the number of marijuana farms “Indoor cannabis cultivation is one of the in Northern California increased 58% and the most energy-intensive industries, spending total area under cultivation expanded 91%. an estimated $6 billion on energy annually. Expansion of these farms occurred in locations That’s a hefty electricity bill, matching that of of extreme environmental sensitivity. However, the federal government powering its facilities” budgetary accommodations for regulating (Reott, 2020). And energy consumption issues marijuana farm expansion were relatively low will only worsen. Research estimates that annual compared with other regulatory programs marijuana cultivation electricity demand will (Butsic et al., 2018). Additionally, a study from increase by 65% over the next ten years (T. Miller the University of California, Berkeley, found & Bischof, 2020). that “While California only has 8,000 permitted cannabis farms, scientists mapped 15,000 in A 2015 study on the impact of marijuana Humboldt County alone” (Dillis et al., 2021). cultivation on watersheds in California found that individual marijuana plants require 22.7 Legalization has thus far resulted in extreme liters of water daily. Production facilities range in environmental damage, and the consequences daily water demand from 523,144 liters to 724,016 may not be fully understood in time to prevent liters (Bauer et al., 2015). A 2021 article from the worse outcomes, as the industry further expands. Brookings Institution also found, “The scale of the problem is staggering: Even at the end of INCREASED DANGER 2020, illegal cannabis grows sucked up between 11.4 million and 36.3 million liters of water daily! TO PETS The widespread illegal cultivation contributes to water depletion and conflict over water and More pets are inadvertently eating marijuana has other bad environmental consequences” and marijuana-infused products, stemming (Felbab-Brown, 2021). Researchers expect the from the products being improperly stored total amount of water used by the legal cannabis in households. Dogs have more cannabinoid receptors in their brains than humans, which 43 117

Item 3. means marijuana side effects are much CANADA more pronounced in canines (Gollakner & Buzhardt, 2022). Canada was one of the first countries to legalize Pets are likely unable to differentiate edibles recreational marijuana, legalizing its possession from regular food or treats so accidental and use in 2018. Early data are indicative of ingestion is a concerning risk. The ASPCA’s problematic trends. Animal Poison Control Center reported the Canadian use rates have increased. Among number of these cases increased from 330 those 16 or older, past-year use increased in 2012 to 5,811 in 2021, representing a 1,660% from 22% in 2018, the year Canada legalized increase (N. Martin, personal communication, marijuana, to 27% in 2022 (Health Canada, October 18, 2022). In 2021, the Pet Poison Hotline 2022b). Furthermore, past-month use increased reported a 450% increase in accidental marijuana from 15% in 2018 to 19% in 2022, indicating that ingestion (Nationwide, 2023). According to these same users are using the drug more the ASPCA, “Signs pets commonly show after frequently. Among 16–19-year-olds, past-month ingesting marijuana or marijuana products use increased from 23% in 2018 to 25%; among include unsteadiness on the feet, depression, 20–24-year-olds, it increased from 30% to 36%. dilated eyes, dribbling urine, sensitivity to sound Daily use among those 16 or older has remained and touch, slow heart rate and even low body largely unchanged, going from 25% of past- temperature” (ASPCA, 2018). year users in 2018 to 26% in 2021 and back to A Colorado study found that the consumption 25% in 2022. of “medical grade tetrahydrocannabinol butter” Marijuana use among youth in Canada is resulted in the death of two dogs (Meola et al., high. Past-year use among people aged 16 to 2012). In 2019, the American Veterinary Medical 19 increased more than 22% from 2018, when Association warned, “Even if you don’t bring marijuana was legalized, to 2019 (Health Canada, marijuana into your house, legalization could 2019). In 2019, 16% of Canadians aged 16 to 19 increase the chances of your dog coming upon reported using marijuana almost every day, or a discarded joint or edible while outdoors” every day (Health Canada, 2019). According to (American Veterinary Medical Association, 2019). Canada’s youth drug survey, 18% of young people This trend is likely to worsen as more states in middle school and high school reported past- legalize marijuana and more individuals begin year marijuana use (Health Canada, 2022a). Over using marijuana more frequently. 19% of young people in grades 7–9 and nearly The industry has also heavily marketed 30% of young people in grades 10–12 reported unproven, unregulated marijuana products to dabbing marijuana when they used it (Health pet owners, claiming it can help calm anxious Canada, 2022a). 17% of young people in grades pets and help relieve pain. Some claim CBD can 7–12 reported using both alcohol and marijuana even cure dog cancer (Coile, 2021). Studies on (Health Canada, 2022a). THC or CBD use in pets are limited; even if THC Marijuana-impaired driving is on the rise. A is legal in a state, it is only legal for adult human 2022 study found that after legalization, the consumption, not legal for pet consumption. rate of drivers who tested positive for THC in One of the few things that is known about CBD British Columbia doubled (Brubacher et al., consumption in dogs is that it can inhibit the 2022). Additionally, 7% of drivers in Canada effectiveness of medication (Coile, 2021). reported driving after using marijuana in 2019, a jump of over 112% just one year after legalization (Woods-Fry et al., 2019). And 20% of those who 44 118

Item 3. reported driving while high reported co-using 7. Admissions to treatment and counseling marijuana with alcohol (Health Canada, 2019). intervention programs. The black market continues to dominate 8. Cost of implementing legalization from in Canada. Reports suggest that the legal law enforcement to regulators. market comprises just a third of the market for 9. Cost of mental health and addiction marijuana in Canada (Miller, 2020), and 40% of treatment related to increased users in Canada reported that they had obtained marijuana use. marijuana illegally since it was legalized (Turvill, 10. Cost of needing, but not 2020). An investigation by Radio-Canada found receiving, treatment. connections to organized crime in the Canadian legal marijuana market (Denis, 2018). 11. Effect on the market for alcohol and other drugs. After Canada expanded the sales of THC 12. Cost to workplace and employers, products, emergency department visits and including impact on employee productivity. hospitalizations of children exposed to marijuana increased nine-fold (Neustaeter & Favare, 2022). 13. Effect on minority communities, including arrests, placement of marijuana establishments, and quality of life indicators. RECOMMENDATIONS 14. Effect on the environment, including Policy makers and the public need real-time data water and power usage. on both the consequences of legalization and related monetary costs. Meanwhile, we should pause future legalization efforts and implement public health measures such as potency caps in places that have legalized. In addition, the industry’s influence on policy should be significantly curtailed. SAM recommends research efforts and data collection focus on the following categories: 1. Emergency room and hospital admissions related to marijuana. 2. Marijuana potency and price trends in the “legal” and illegal markets. 3. School incidents related to marijuana, including studies involving representative datasets. 4. Extent of marijuana advertising toward youth and its impact. 5. Marijuana-related car crashes, including THC levels even when testing positive for alcohol. 6. Mental health effects of marijuana. 45 119

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Item 3. Bigay-Gamé, L., Bota, S., Greillier, L., Monnet, I., Butsic, V., & Brenner, J. C. (2016). Cannabis Madroszyk, A., Corre, R., Mastroianni, B., Falchero, (Cannabis sativa or C. indica) agriculture and the L., Mazières, J., Colineaux, H., Lepage, B., Chouaid, environment: A systemat- ic, spatially-explicit C., & Investigators, G. F. P. C. (2018). Characteristics survey and potential impacts. Environmental of lung cancer in patients younger than 40 years: Research Letters, 11(4), 044023. A prospective multicenter analysis in France. Oncology, 95(6), 337–343. Butsic, V., Carah, J. K., Baumann, M., Stephens, C., & Brenner, J. C. (2018). The emergence of Blair, A. (2020, June). State-regulated cannabis agriculture frontiers as environmental marijuana vape cartridges aren’t safe, doctor and threats. Environmental Research Letters, 13(12), whistleblower say. Https://Www.Hawaiinewsnow. 124017. Com. https://www.hawaiinewsnow. com/2020/06/03/state-regulated-marijuana-vape- California Department of Tax and Fee cartridges-arent-safe-doctor-whistleblower-say/ Administration. (2022). Cannabis Tax Revenues. https://www.cdtfa.ca.gov/dataportal/dataset. Bleyer, A., Barnes, B., & Finn, K. (2022). United htm?url=CannabisTaxRevenues States marijuana legalization and opioid mortality epidemic during 2010–2020 and pandemic California High Intensity Drug Trafficking implications. Journal of the National Medical Areas Report. (2020). Marijuana’s Impact on Association, 114(4), 412–425. https://doi.org/10.1016/j. California. https://www.thenmi.org/wp-content/ jnma.2022.03.004 uploads/2020/12/CA-MJ-IMPACT-REPORT-2020- FINAL-.pdf Blood, M. R. (2019). Weaker-than-expected marijuana sales ding California budget. U.S. Campbell, G., Hall, W. D., Peacock, A., Lintzeris, News and World Report. https://apnews.com/ N., Bruno, R., Larance, B., Nielsen, S., Cohen, M., article/386c3cdd97094e3794f4c38bab1f8004 Chan, G., Mattick, R. P., Blyth, F., Shanahan, M., Dobbins, T., Farrell, M., & Degenhardt, L. (2018). BMJ. (2020). Concern over industry support Effect of cannabis use in people with chronic non- for wider access to medical cannabis. BMJ Open. cancer pain prescribed opioids: Findings from https://www.bmj.com/company/newsroom/ a 4-year prospective cohort study. The Lancet concern-over-industry-support-for-wider-access- Public Health, 3(7), 341–350. to-medical-cannabis/ Caputi, T. L. (2019). Medical marijuana, not Borodovsky, J. T., Lee, D. C., Crosier, B. S., miracle marijuana: Some well-publicized studies Gabrielli, J. L., Sargent, J. D., & Budney, A. J. (2017). about medical marijuana do not pass a reality U.S. cannabis legalization and use of vaping and check. Addiction, 114(6), 1128–1129. edible products among youth. Drug and Alcohol Dependence, 177, 299–306. Cash, M. C., Cunnane, K., Fan, C., & Romero- Sandoval, E. A. (2020). Mapping cannabis potency Brubacher, J. R., Chan, H., Erdelyi, S., in medical and recreational programs in the Staples, J. A., Asbridge, M., & Mann, R. E. (2022). United States. https://journals.plos.org/plosone/ Cannabis Legalization and Detection of article?id=10.1371/journal.pone.0230167 Tetrahydrocannabinol in Injured Drivers. The New England Journal of Medicine, 386(2), 148–156. CBS Colorado. (2019, May). Pot Poisonings Up, https://doi.org/10.1056/NEJMsa2109371 Colorado Health Department Urges Responsibility. https://www.cbsnews.com/colorado/news/pot- Burke, K. D., & Acuna, A. (2017). Colorado poisonings-up-colorado-health-department- tries to fight homeless problem that may have responsibility/ been triggered by pot law. Fox News. https:// www.foxnews.com/us/colorado-tries-to-fight- homeless-problem-that-may-have-been- triggered-by-pot-law 48 122

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Item 3. Neustaeter, B., & Favare, A. (2022). Cannabis opioid use disorder in the United States. American poisoning in Ont. kids “more frequent and severe” Journal of Psychiatry, 175(1), 47–53. since legalization: Study. In CTVNews. https:// www.ctvnews.ca/health/cannabis-poisoning- Oregon Health Authority. (2016). Marijuana use, in-ont-kids-more-frequent-and-severe-since- attitudes and health effects in Oregon. https:// legalization-study-1.5730591 www.oregon.gov/oha/ph/PreventionWellness/ marijuana/Documents/oha-8509-marijuana- Niemi-Pynttäri, J. A., Sund, R., Putkonen, H., report.pdf Vorma, H., Wahlbeck, K., & Pirkola, S. P. (2013). Substance-induced psychoses converting into Oregon Health Authority. (2017). Oregon schizophrenia: A register-based study of 18,478 healthy teens survey. https://www.oregon.gov/ Finnish inpatient cases. Journal of Clinical oha/PH/BIRTHDEATHCERTIFICATES/SURVEYS/ Psychiatry, 74(1), 94–99. OREGONHEALTHYTEENS/Pages/2017.aspx Nieves, A. (2021). California’s legal weed industry Oregon Liquor and Cannabis Commission. can’t compete with illicit market. In POLITICO. (2023). Harvest, Price, & Sales Market Data. https://www.politico.com/news/2021/10/23/ https://www.oregon.gov/olcc/marijuana/Pages/ california-legal-illicit-weed-market-516868 Marijuana-Market-Data.aspx Nourbakhsh, M., Miller, A., Gofton, J., Jones, G., Oregon Liquor Control Commission. (2018). & Adeagbo, B. (2019). Cannabinoid hyperemesis Cannabis information systems properly syndrome: Reports of fatal cases. Journal of functioning but monitoring and security Forensic Sciences, 64(1), 270–274. enhancements are needed. https://sos.oregon.gov/ audits/documents/2018-07.pdf O’Connor, S., & Méndez, S. (2016). Concerning Cannabis-Infused Edibles: Factors that Attract Oregon Liquor Control Commission. (2019). Children to Foods. https://lcb.wa.gov/publications/ 2019 Recreational Marijuana Supply and Marijuana/Concerning-MJ-Infused-Edibles- Demand Legislative Report. http://opb-imgserve- Factors-That-Attract-Children.pdf production.s3-website-us-west-2.amazonaws.com/ original/2019_supply_and_demand_legislative_ Office of Governor Gavin Newsom. (2022). report_final_for_legislators_1548964723484.pdf Governor Newsom Signs Legislation to Strengthen California’s Cannabis Laws. Oregon Liquor Control Commission. (2020, In California Governor. https://www.gov. September). Data extracted from the Metrc ca.gov/2022/09/18/governor-newsom-signs- cannabis tracking system on. https://digital.osl. legislation-to-strengthen-californias-cannabis- state.or.us/islandora/object/osl:368017 laws/ Oregon Liquor Control Commission. (2021). Office of Inspector General. (2016). Packages Recreational Marijuana Supply and Demand Suspected of Containing Marijuana: Audit REport. Legislative Report. https://www.oregon.gov/olcc/ https://www.oversight.gov/sites/default/files/oig- Docs/Legislative_docs/2021-Supply-and-Demand- reports/HR-AR-17-001_Redacted.pdf Report.pdf Office of the Surgeon General. (2019). U.S. Oregon Poison Center. (2019). Cannabis Surgeon General’s Advisory: Marijuana Use and Report 2014-2018. https://www.ohsu.edu/sites/ the Developing Brain. In HHS.gov. https://www. default/files/2018-11/Cannabis-report-FINAL%20 hhs.gov/surgeongeneral/reports-and-publications/ november%2018%20PDF.pdf addiction-and-substance-misuse/advisory-on- Oregon Public Health Division. (2016). marijuana-use-and-developing-brain/index.html Marijuana report: Marijuana use, attitudes and Olfson, M., Wall, M. M., Liu, S.-M., & Blanco, health effects in Oregon. https://www.oregon. C. (2018). Cannabis use and risk of prescription 60 134

Item 3. gov/oha/ph/PreventionWellness/marijuana/ Büchel, C., Quinlan, E. B., Conrod, P., Desrivières, Documents/oha-8509-marijuana-report.pdf S., Flor, H., Frouin, V., Gowland, P., Heinz, A., & Garavan, H. (2019). Grey matter volume differences Oregon Secretary of State. (2019). Oregon’s associated with extremely low levels of cannabis framework for regulating maijuana should be use in adolescence. Journal of Neuroscience, strengthened to better mitigate diversion risk and 39(10), 1817–1827. improve laboratory testing. https://sos.oregon.gov/ audits/Documents/2019-04.pdf Pacher, P., Steffens, S., Haskó, G., Schindler, T. H., & Kunos, G. (2018). Cardiovascular effects of Oregon State Police Drug Enforcement marijuana and synthetic cannabinoids: The good, Section. (2017). A baseline evaluation of cannabis the bad, and the ugly. Nature Reviews Cardiology, enforcement priorities in Oregon. https:// 15(3), 151–166. mass-cannabis-control.com/wp-content/ uploads/2017/12/A-Baseline-Evaluation-of- Paschall, M. J., García-Ramírez, G., & Grube, J. Cannabis-Enforcement-Priorities-in-Oregon_.pdf W. (2021). Recreational Marijuana Legalization and Use Among California Adolescents: Findings From Oregon-Idaho High Intensity Drug a Statewide Survey. Journal of Studies on Alcohol Trafficking Area. (2018). An Initial Assessmnet and Drugs, 82(1), 103–111. https://doi.org/10.15288/ of Cannabis Production, Distribution, and jsad.2021.82.103 Consumption in Oregon 2018—An Insight Report. https://static1.squarespace.com/ Peace, M. R., Butler, K. E., Wolf, C. E., Poklis, J. L., static/579bd717c534a564c72ea7bf/t/5b6 & Poklis, A. (2016). Evaluation of two commercially 9d694f950b7f0399c4bfe/1533662876506/ available cannabidiol formulations for use in An+Initial+Assessment+of+Cannabis+Production+ electronic cigarettes. Frontiers in Pharmacology, Distribution+and+Consumption+in+ 7. https://www.frontiersin.org/articles/10.3389/ Oregon+2018_OR-ID+HIDTA_8-6-18.pdf fphar.2016.00279/full Oregon-Idaho High Intensity Drug Pellechia, T. (2018). Does legalizing marijuana Trafficking Area. (2019). 2020 Drug Treat threaten wine (and beer) consumption? Assessment. https://static1.squarespace.com/ Forbes. https://www.forbes.com/sites/ static/579bd717c534a564c72ea7bf/t/5d08088507d thomaspellechia/2018/02/12/does-legalizing- b5c0001e3f21/1560807567416/ PY+2020+OREGON- marijuana-threaten-wine-and-beer-consumption/ IDAHO+HIDTA+Threat+Assessment_ FINAL_061719.pdf Peng, H., Li, H., Wei, Y., Zhang, R., Chang, X., Meng, L., Wang, K., He, Q., & Duan, T. (2023). Effects Oregon-Idaho High Intensity Drug Trafficking of prenatal exposure to THC on hippocampal Area. (2022a). 2021 Oregon-Idaho HIDTA neural development in offspring. Toxicology Annual Report. https://static1.squarespace. Letters, 374, 48–56. https://doi.org/10.1016/j. com/static/579bd717c534a564c72ea7bf/t/6 toxlet.2022.12.007 2c87c5433577102914f6841/1657306214508/ OR+ID+HIDTA+Annual+Report+2021+-+Final.pdf Petrilli, K., Ofori, S., Hines, L., Taylor, G., Adams, S., & Freeman, T. P. (2022). Association of cannabis Oregon-Idaho High Intensity Drug potency with mental ill health and addiction: Trafficking Area. (2022b). 2023 Drug Threat A systematic review. The Lancet Psychiatry, Assessment. https://static1.squarespace. 9(9), 736–750. https://doi.org/10.1016/S2215- com/static/579bd717c534a564c72ea7bf/t/6 0366(22)00161-4 2acea7b18bb1f1d6c6d8eb7/1655499393650/ OR+ID+HIDTA+2023+TA_FINAL.pdf Pfizer. (2022). Pfizer Completes Acquisition of Arena Pharmaceuticals. https://www.pfizer.com/ Orr, C., Spechler, P., Cao, Z., Albaugh, M., news/press-release/press-release-detail/pfizer- Chaarani, B., Mackey, S., D’Souza, D., Allgaier, N., completes-acquisition-arena-pharmaceuticals Banaschewski, T., Bokde, A. L. W., Bromberg, U., 61 135

Item 3. Pierre, J. M., Gandal, M., & Son, M. (2016). stop-social-injustice-in-the-black-and-brown- Cannabis-induced psychosis associated with community.html high potency “wax dabs. Schizophrenia Research, 172(1–3), 211–212. Richter, K. P., & Levy, S. (2014). Big marijuana: Lessons from big tobacco. New England Journal Ponce, A. (2022). Growing number of children of Medicine, 371(5), 399–401. in Illinois being hospitalized after consuming edibles. In FOX 32 Chicago. https://www. Rockefeller Institute of Government. (2022). fox32chicago.com/news/growing-number-of- Marijuana Opt-Out Tracker. In Rockefeller Institute children-in-illinois-being-hospitalized-after- of Government. https://rockinst.org/issue-areas/ consuming-edibles state-local-government/municipal-opt-out- tracker/ Price, S. (2020). A resource-efficient cannabis industry starts with benchmarking. In Health Rocky Mountain High Intensity Drug Trafficking Europa. https://www.healtheuropa.com/a- Area. (2019a). The Legalization of Marijuana in resource-efficient-cannabis-industry-starts-with- Colorado: The Impact (October 2020). https:// benchmarking/103049/ www.thenmi.org/wp-content/uploads/2020/10/ RMHIDTA-Marijuana-Report-2020-2.pdf Prince, M. A., & Conner, B. T. (2019). Examining links between cannabis potency and mental and Rocky Mountain High Intensity Drug Trafficking physical health outcomes. Behaviour Research Area. (2019b). The legalization of marijuana in and Therapy, 115, 111–120. Colorado: The impact (September 2019). https:// www.ncbi.nlm.nih.gov/pmc/articles/PMC6913861/ Queally, J., & Parvini, S. (2018). For police, catching stoned drivers isn’t so easy. Los Angeles Rocky Mountain High Intensity Drug Times. https://www.latimes.com/local/lanow/la- Trafficking Area. (2021). The Legalization of me-ln-marijuana-dui-20180322-story.html Marijuana in Colorado: The Impact (September 2021) (p. 8). https://www.thenmi.org/wp- Rawnsley, S. B., Asawin Suebsaeng, Adam. content/uploads/2021/09/RMHIDTA-Marijuana- (2021). Biden White House Sandbags Staffers, Report-2021.pdf Sidelines Dozens for Pot Use. The Daily Beast. https://www.thedailybeast.com/biden-white- Romero, D. (2019). California’s cannabis black house-sandbags-staffers-sidelines-dozens-for- market is eclipsing its legal one. NBC News. pot-use https://www.nbcnews.com/news/us-news/ california-s-cannabis-black-market-has-eclipsed- Reitz, K. C. (2015). An Environmental its-legal-one-n1053856 Argument for a Consistent Federal Policy on Marijuana. Arizona Law Review, 57(1085). https:// Romm, K. F., West, C. D., & Berg, C. J. (2021). arizonalawreview.org/an-environmental-argument- Mode of Marijuana Use among Young Adults: for-a-consistent-federal-policy-on-marijuana/ Perceptions, Use Profiles, and Future Use. Substance Use & Misuse, 56(12), 1765–1775. https:// Reott, J. (2020). Legal Cannabis Presents doi.org/10.1080/10826084.2021.1949724 Challenges for Utilities, Opportunities for Energy Efficiency. In Alliance to Save Energy. https://www. Romo, V. (2019). Maryland court rules ase.org/blog/legal-cannabis-presents-challenges- marijuana odor not enough to search a person. utilities-opportunities-energy-efficiency https://www.npr.org/2019/08/16/751783763/ maryland-court-rules-marijuana-odor-not- Rice, R. (2019). Sen. Rice: Legalizing pot won’t enough-to-search-a-person stop social injustice in the black and brown community. NJ.Com. https://www.nj.com/ Rosenthal, A., & Reed, J. K. (2022). Driving opinion/2019/10/sen-rice-legalizing-pot-wont- Under the Influence of Drugs and Alcohol. https:// 62 136

Item 3. cdpsdocs.state.co.us/ors/docs/reports/2021-DUI_ Schoeler, T., Monk, A., Sami, M. B., Klamerus, E., HB17-1315_r.pdf Foglia, E., Brown, R., Camuri, G., Altamura, A. C., Murray, R., & Bhattacharyya, S. (2016). Continued Rounds, C. B. S. M. (2019). Police struggle versus discontinued cannabis use in patients with to address driving while high on marijuana. psychosis: A systematic review and meta-analysis. https://learnaboutsam.org/wp-content/ The Lancet Psychiatry, 3(3), 215–225. https://doi. uploads/2020/12/2020-Impact-Report1.pdf org/10.1016/S2215-0366(15)00363-6 R.T.T. News. (2018). TLRY Teams Up With Schoenberg, S. (2018). Boston grapples with Novartis, TLSA To Report Data In Q2, RARX diversity in marijuana industry. https://www. Marches Ahead. Nasdaq. https://www.nasdaq. masslive.com/politics/2018/12/boston_grapples_ com/articles/tlry-teams-novartis-tlsa-report-data- with_lack_of_d.html q2-rarx-marches-ahead-2018-12-18 Schroyer, J. (2021, March 25). Marijuana foes Russo, M. (2021). I-Team: NYC Area seek to impose THC potency caps to curb Pediatricians See Sharp Rise in Kids Ingesting industry’s growth. MJBizDaily. https://mjbizdaily. Marijuana Edibles. In NBC New York. https:// com/marijuana-foes-seek-to-impose-thc-potency- www.nbcnewyork.com/investigations/i-team- caps-to-curb-industrys-growth/ pediatricians-see-sharp-rise-in-kids-ingesting- marijuana-edibles-at-toxic-levels/3175893/ Schuster, R. M., Gilman, J., Schoenfeld, D., Evenden, J., Hareli, M., Ulysse, C., Nip, E., Hanly, Salas-Wright, C. P., Cano, M., Hai, A. H., Oh, S., A., Zhang, H., & Evins, A. E. (2018). One month of & Vaughn, M. G. (2021). Prevalence and Correlates cannabis abstinence in adolescents and young of Driving Under the Influence of Cannabis adults is associated with improved memory. in the U.S. American Journal of Preventive Journal of Clinical Psychiatry, 79(6). https:// Medicine, 60(6), e251–e260. https://doi.org/10.1016/j. pubmed.ncbi.nlm.nih.gov/30408351/ amepre.2021.01.021 Secades-Villa, R., Garcia-Rodríguez, O., Jin, Salmore, R., & Finn, K. (2016). The hidden costs C. J., Wang, S., & Blanco, C. (2015). Probability of marijuana use in Colorado: One emergency and predictors of the cannabis gateway effect: department’s experience. Journal of Global Drug A national study. International Journal of Drug Policy and Practice, 10(Summer), 1–2. Policy, 26(2), 135–142. Salottolo, K., Peck, L., Tanner Ii, A., Carrick, M. M., Shear, M. D., & Kanno-Youngs, Z. (2022). Biden Madayag, R., McGuire, E., & Bar-Or, D. (2018). The Pardons Thousands Convicted of Marijuana grass is not always greener: A multi-institutional Possession Under Federal Law. The New York pilot study of marijuana use and acute pain Times. https://www.nytimes.com/2022/10/06/us/ management following traumatic injury. Patient politics/biden-marijuana-pardon.html Safety in Surgery, 12, 16. https://doi.org/10.1186/ s13037-018-0163-3 Sheetz, M. (2018). Corona beer maker Constellation ups bet on cannabis with $4 billion Sanderson, J. A. (2022). Recreational Cannabis investment in Canopy Growth. https://www.cnbc. Legalization and Homelessness in hte US: A com/2018/08/15/corona-maker-constellation-ups- Quasi-Experimental Natinoal Policy Analysis bet-on-cannabis-with-4-billion-investm.html [Clemson University]. https://tigerprints.clemson. edu/all_theses/3750 Shi, Y., & Liang, D. (2020). The association between recreational cannabis commercialization Sauter, M. (2018). Which state’s residents drink and cannabis exposures reported to the US the most beer? Brews news you can use for your National Poison Data System. Addiction. https:// next bar bet. https://www.usatoday.com/story/ pubmed.ncbi.nlm.nih.gov/32080937/ money/personalfinance/2018/05/02/which-states- residents-drink-most-beer/569430002/ 63 137

Item 3. Shover, C. L., Davis, C. S., Gordon, S. C., & Stratacomm. (2022). Virginia Statewide Humphreys, K. (2019). Association between medical Impaired Driving Survey. https://web.archive.org/ cannabis laws and opioid overdose mortality has web/20221211151015/https://www.cannabis.virginia. reversed over time. Proceedings of the National gov/media/governorvirginiagov/cannabis/cca- Academy of Sciences, 116(26), 12624–12626. stratacomm-safe-driving-report-public-221025.pdf Silins, E., Horwood, L. J., Patton, G. C., Stratton, J. (2020). Fatal crashes involving Fergusson, D. M., Olsson, C. A., Hutchinson, D. M., drivers who test positive for marijuana increase Spry, E., Toumbourou, J. W., Degenhardt, L., Swift, after state legalizes drug. AAA NewsRoom. W., Coffey, C., Tait, R. J., Letcher, P., Copeland, J., https://newsroom.aaa.com/2020/01/fatal-crashes- & Mattick, R. P. (2014). Young adult sequelae of involving-drivers-who-test-positive-for-marijuana- adolescent cannabis use: An integrative analysis. increase-after-state-legalizes-drug/ The 75 Lancet Psychiatry, 1(4), 286–293. Substance Abuse and Mental Health Services Smart Approaches to Marijuana. (2022). Administration. (2018a). 2018 NSDUH Detailed Revenues vs Reality. https://learnaboutsam. Tables. https://www.samhsa.gov/data/report/2018- org/wp-content/uploads/2022/02/Revenues-vs- nsduh-detailed-tables Reality.pdf Substance Abuse and Mental Health Services Smart, R., Caulkins, J. P., Kilmer, B., Davenport, Administration. (2018b). State Data Tables and S., & Midgette, G. (2017). Variation in cannabis Reports From the 2017-2018 NSDUH. https:// potency and prices in a newly legal market: www.samhsa.gov/data/nsduh/state-reports- Evidence from 30 million cannabis sales in NSDUH-2018 Washington state; Legal cannabis potency and price variation. Addiction, 112(12), 2167–2177. Substance Abuse and Mental Health Services Administration. (2019a). 2018-2019 Smith, P. (2017). Why are so many pot shops National Survey on Drug Use and Health: in poor neighborhoods? https://www.salon. Model-Based Prevalence Estimates. https:// com/2017/08/19/why-are-so-many-pot-shops-in- www.samhsa.gov/data/sites/default/files/ poor-neighborhoods_partner/ reports/ rpt32805/2019NSDUHsaeExcelPercents/ 2019NSDUHsaeExcelPercents/ Smith, T. (2021). Massachusetts Marijuana 2019NSDUHsaePercents.pdf Establishments Surpass $2 Billion in Gross Sales. In Cannabis Control Commission Massachusetts. Substance Abuse and Mental Health Services https://masscannabiscontrol.com/2021/09/ Administration. (2019b). National Survey on Drug massachusetts-marijuana-establishments- Use and Health 2018. https://www.datafiles. surpass-2-billion-in-gross-sales/ samhsa.gov/dataset/national-survey-drug-use- and-health-2018-nsduh-2018-ds0001 Sophocleous, A., Robertson, R., Ferreira, N. B., McKenzie, J., Fraser, W. D., & Ralston, S. H. Substance Abuse and Mental Health Services (2017). Heavy Cannabis Use Is Associated With Administration. (2020a). 2020 NSDUH Detailed Low Bone Mineral Density and an Increased Tables. https://www.samhsa.gov/data/report/2020- Risk of Fractures. The American Journal of nsduh-detailed-tables Medicine, 130(2), 214–221. https://doi.org/10.1016/j. amjmed.2016.07.034 Substance Abuse and Mental Health Services Administration. (2020b). NSDUH Table 3.1A-B. St. John, P. (2022). The reality of legal weed https://www.samhsa.gov/data/sites/default/files/ in California: Huge illegal grows, violence, reports/rpt35323/NSDUHDetailedTabs2020/ worker exploitation and deaths. In Los Angeles NSDUHDetailedTabs2020/NSDUHDetTabs3- Times. https://www.latimes.com/california/ 1pe2020.pdf story/2022-09-08/reality-of-legal-weed-in- california-illegal-grows-deaths 64 138

Item 3. Substance Abuse and Mental Health Services www.finance.senate.gov/hearings/protecting- Administration. (2021a). Highlights for the 2021 youth-mental-health-part-i_-an-advisory-and-call- National Survey on Drug Use and Health. https:// to-action www.samhsa.gov/data/sites/default/files/2022- 12/2021NSDUHFFRHighlights092722.pdf Thomas, A. A., Derau, K., Bradford, M. C., Moser, E., Garrard, A., & Mazor, S. (2019). Unintentional Substance Abuse and Mental Health Services pediatric marijuana exposures prior to and Administration. (2021b). Section 1 PE Tables – after legalization and commercial availability Results from the 2021 National Survey on Drug of recreational marijuana in Washington State. Use and Health: Detailed Tables, SAMHSA, CBHSQ. Journal of Emergency Medicine, 56(4), 398–404. https://www.samhsa.gov/data/sites/default/ files/reports/rpt39441/NSDUHDetailedTabs2021/ Thomas, C., & Freisthler, B. (2017). Evaluating NSDUHDetailedTabs2021/ the change in medical marijuana dispensary NSDUHDetTabsSect1pe2021.htm locations in Los Angeles following the passage of local legislation. Journal of Primary Prevention, Substance Abuse and Mental Health Services 38(3), 265–277. Administration. (2021c). Section 3 PE Tables – Results from the 2021 National Survey on Drug Trangenstein, P. J., Whitehill, J. M., Jenkins, M. Use and Health: Detailed Tables, SAMHSA, CBHSQ. C., Jernigan, D. H., & Moreno, M. A. (2019). Active https://www.samhsa.gov/data/sites/default/ cannabis marketing and adolescent past-year files/reports/rpt39441/NSDUHDetailedTabs2021/ cannabis use. Drug and Alcohol Dependence, NSDUHDetailedTabs2021/ 204, 107548. NSDUHDetTabsSect3pe2021.htm Trela, H. (2021). To Opt In or Opt Out—That Substance Abuse and Mental Health Services is the Question for NYS Municipalities. In Administration. (2021d). Section 5 PE Tables – Rockefeller Institute of Government. https:// Results from the 2021 National Survey on Drug rockinst.org/blog/to-opt-in-or-opt-out-that-is- Use and Health: Detailed Tables, SAMHSA, CBHSQ. the-question-for-nys-municipalities/ https://www.samhsa.gov/data/sites/default/ Truth Initiative. (2018). Worth More’ campaign files/reports/rpt39441/NSDUHDetailedTabs2021/ exposes Big Tobacco for its manipulation NSDUHDetailedTabs2021/ of lower-income communities. https:// NSDUHDetTabsSect5pe2021.htm truthinitiative.org/research-resources/targeted- Summers, H., & Quinn, J. (2021). Growing communities/worth-more-campaign-exposes- cannabis indoors produces a lot of greenhouse big-tobacco-its-manipulation gases – just how much depends on where it’s Turvill, W. (2020, March 18). “The legal stuff is grown. In SOURCE. https://source.colostate.edu/ garbage”: Why Canada’s cannabis black market growing-cannabis-indoors-produces-a-lot-of- keeps thriving. The Guardian. https://www. greenhouse-gases-just-how-much-depends-on- theguardian.com/society/2020/mar/18/cannabis- where-its-grown/ canada-legal-recreational-business Sun, R., Mendez, D., & Warner, K. E. (2022). Tweet, M. S., Nemanich, A., & Wahl, M. (2023). Use of Electronic Cigarettes Among Cannabis- Pediatric Edible Cannabis Exposures and Acute Naive Adolescents and Its Association Toxicity: 2017–2021. Pediatrics, e2022057761. With Future Cannabis Use. JAMA Network https://doi.org/10.1542/peds.2022-057761 Open, 5(7), e2223277. https://doi.org/10.1001/ jamanetworkopen.2022.23277 Twitter, Instagram, Email, & Facebook. (2022). Nobody knows how widespread illegal cannabis The United States Senate Committee on grows are in California. So we mapped them. In Finance. (2022). Protecting Youth Mental Health: Los Angeles Times. https://www.latimes.com/ Part I - An Advisory and Call to Action. https:// 65 139

Item 3. california/story/2022-09-08/how-we-mapped- Vermont Cannabis Control Board. (2022). illegal-cannabis-farms-in-california Report to the General Assembly. https:// legislature.vermont.gov/assets/Legislative- UN Office on Drugs and Crime. (2021). World Reports/2022-Act-158-Sec.-22-Cannabis-Solid- Drug Report 2021. In United Nations: Office on Concentrates-Report.pdf Drugs and Crime. //www.unodc.org/unodc/en/ data-and-analysis/wdr2021.html Vinicky, A. (2022). While a Black-Owned Cannabis Dispensary Opens in Chicago, Critics UN Office on Drugs and Crime. (2022). Booklet Say State’s Equity Work Still Falling Short. In 3—Drug market trends of Cannabis and Opioids. WTTW News. https://news.wttw.com/2022/12/08/ In United Nations: Office on Drugs and Crime. // while-black-owned-cannabis-dispensary-opens- www.unodc.org/unodc/en/data-and-analysis/wdr- chicago-critics-say-state-s-equity-work-still 2022_booklet-3.html Volkow, N. D., Baler, R. D., Compton, W. M., & Unger, J. B., Vos, R. O., Wu, J. S., Hardaway, K., Weiss, S. R. B. (2014). Adverse health effects of Sarain, A. Y. L., Soto, D. W., Rogers, C., & Steinberg, marijuana use. New England Journal of Medicine, J. (2020). Locations of licensed and unlicensed 370(23), 2219–2227. cannabis retailers in California: A threat to health equity? Preventive Medicine Reports, 19, 101165. Volkow, N. D., Han, B., Compton, W. M., & https://doi.org/10.1016/j.pmedr.2020.101165 Blanco, C. (2017). Marijuana use during stages of pregnancy in the United States. Annals of Internal University of Michigan Injury Prevention Medicine, 166(10), 763–764. Center. (2022). Impact of Recreational Cannabis Legalization in Michigan: A Baseline Report. Vozoris, N. T., Zhu, J., Ryan, C. M., Chow, C.-W., & https://thenmi.org/reports/2020_IPC_Cannabis_ To, T. (2022). Cannabis use and risks of respiratory Report_Michigan.pdf and all-cause morbidity and mortality: A population-based, data-linkage, cohort study. BMJ University of Michigan Institute for Social Open Respiratory Research, 9(1), e001216. https:// Research. (2022). Monitoring the Future doi.org/10.1136/bmjresp-2022-001216 Panel Study Annual Report. https://www. drugsandalcohol.ie/36848/ Waddell, J. T. (2021). Between- and within- group effects of alcohol and cannabis co-use on US Census Bureau. (2019). QuickFacts: Boston AUD/CUD in the NSDUH 2002–2019. Drug and city, Massachusetts. Boston city. https://www. Alcohol Dependence, 225, 108768. https://doi. census.gov/quickfacts/bostoncitymassachusetts org/10.1016/j.drugalcdep.2021.108768 US Department of Transportation. (2020). Wallack, T., & Adams, D. (2019). Massachusetts Drug and Alcohol Prevalence in Seriously and marijuana regulators investigating whether Fatally Injured Road Users Before and During the companies violated license limits. https:// COVID-19 Public Health Emergency. https://rosap. www.bostonglobe.com/metro/2019/03/27/ ntl.bts.gov/pdfjs/web/viewer.html?file=https:// massachusetts-marijuana-regulators- rosap.ntl.bts.gov/view/dot/50941/dot_50941_DS1.pdf investigating-whether-companies-violating- ownership-limits/jshf4znu16AaNxD3P1NdBK/story. US Department of Transportation. (2022). Early html Estimate of Motor Vehicle Traffic Fatalities in 2021. https://crashstats.nhtsa.dot.gov/Api/Public/ Wang, G. S., Buttorff, C., Wilks, A., Schwam, ViewPublication/813283 D., Metz, T. D., Tung, G., & Pacula, R. L. (2022). Cannabis legalization and cannabis-involved US Environmental Protection Agency. (2023). pregnancy hospitalizations in Colorado. Preventive Green vehicle guide. Medicine, 156, 106993. https://doi.org/10.1016/j. https://www.epa.gov/greenvehicles ypmed.2022.106993 66 140

Item 3. Wang, G. S., Buttorff, C., Wilks, A., Schwam, farm-leaves-toxic-garbage-dump-in-northern- D., Tung, G., & Pacula, R. L. (2021). Changes in california-national-forest.html Emergency Department Encounters for Vomiting After Cannabis Legalization in Colorado. JAMA Weinberger, A. H., Platt, J., & Goodwin, R. Network Open, 4(9), e2125063. https://doi. D. (2016). Is cannabis use associated with an org/10.1001/jamanetworkopen.2021.25063 increased risk of onset and persistence of alcohol use disorders? A three-year prospective study Wang, G. S., Hall, K., Vigil, D., Banerji, S., Monte, among adults in the United States. Drug and A., & VanDyke, M. (2017). Marijuana and acute Alcohol Dependence, 161, 363–367. health care contacts in Colorado. Preventive Medicine, 104, 24–30. Whitehill, J. M., Harrington, C., Lang, C. J., Chary, M., Bhutta, W. A., & Burns, M. M. (2019). Incidence Wang, I. J., Brenner, J. C., & Butsic, V. (2017). of pediatric cannabis exposure among children Cannabis, an emerging agricultural crop, leads and teenagers aged 0 to 19 years before and after to deforestation and fragmentation. Frontiers in medical marijuana legalization in Massachusetts. Ecology and the Environment, 15(9), 495–501. JAMA Network Open, 2(8), 199456. Wartenberg, A. C., Holden, P. A., Bodwitch, H., Wohlforth, C. (2018). Marijuana school Parker-Shames, P., Novotny, T., Harmon, T. C., Hart, suspensions more than doubled after legalization. S. C., Beutel, M., Gilmore, M., Hoh, E., & Butsic, Anchorage Daily News. https://www.adn.com/ V. (2021). Cannabis and the Environment: What opinions/2018/01/11/marijuana-school-suspensions- Science Tells Us and What We Still Need to Know. more-than-doubled-after-legalization/ Environmental Science & Technology Letters, 8(2), 98–107. https://doi.org/10.1021/acs.estlett.0c00844 Woods-Fry, H., Vanlaar, W. G. M., Brown, S., & Robertson, R. D. (2019). Road Safety Monitor 2019 Washington Poison Center. (2014). Toxic Trends Trends in Marijuana Use Among Canadian Drivers. Report: Cannabis. https://www.wapc.org/wp- Traffic Injury Research Foundation. https://tirf.ca/ content/uploads/WAPC-Toxic-Trends-Report- wp-content/uploads/2019/11/RSM-2019-Trends-in- Cannabis-August-1.pdf Marijuana-Use-among-Canadian-Drivers-9.pdf Washington Poison Center. (2018). Cannabis Workman, C. D., Fietsam, A. C., Sosnoff, J., data reports. https://www.wapc.org/data/data- & Rudroff, T. (2021). Increased Likelihood of reports/cannabis-data-report/ Falling in Older Cannabis Users vs. Non-Users. Brain Sciences, 11(2), 134. https://doi.org/10.3390/ Washington Poison Center. (2019). 2018 Annual brainsci11020134 Data Report: Cannabis. https://www.wapc.org/wp- content/uploads/2018-Cannabis.pdf Wu, G., Wen, M., & Wilson, F. A. (2021). Impact of recreational marijuana legalization on crime: Washington State Healthy Youth Survey. (2021). Evidence from Oregon. Journal of Criminal Healthy Youth Survey. https://doh.wa.gov/data- Justice, 72, 101742. https://doi.org/10.1016/j. statistical-reports/data-systems/healthy-youth-survey jcrimjus.2020.101742 Washington State Liquor and Cannabis Board. Wu, G., & Willits, D. W. (2022). The Impact of (2020). Violations dataset. https://lcb.wa.gov/sites/ Recreational Marijuana Legalization on Simple default/files/publications/Public_Records/2019/ Assault in Oregon. Journal of Interpersonal Public_MJ_Dashboard_Violations.xls Violence, 37(23–24), NP23180–NP23201. https://doi. org/10.1177/08862605221076169 Weber, C. (2019). Illegal pot farm leaves ‘toxic garbage dump’ in northern California national forest. OregonLive/The Oregonian. https:// www.oregonlive.com/nation/2019/11/illegal-pot- 67 141

Item 3. WXYZ Detroit. (2019). Here’s a list of the 1,400+ communities that have opted out of recreational marijuana. https://www.wxyz.com/news/heres-a- list-of-the-1-300-communities-that-have-opted- out-of-recreational-marijuana Yates, D., & Speer, J. (2018). Over and under- regulation in the Colorado Cannabis industry: A data-analytic perspective. International Journal of Drug Policy, 59, 63–66. Yee, G. (2022). California is cutting cannabis taxes in hopes of saving struggling pot businesses. In Los Angeles Times. https://www. latimes.com/california/story/2022-07-06/cannabis- tax-cuts-industry-reform-california Young, C. A. (2021). Mass. Indoor cannabis grow centers responsible for 10% of electricity consumption. In Masslive. https://www.masslive. com/cannabis/2021/06/indoor-cannabis-grow- centers-responsible-for-10-of-industrial-electricity- consumption-in-massachusetts.html Zellers, S. M., Ross, J. M., Saunders, G. R. B., Ellingson, J. M., Anderson, J. E., Corley, R. P., Iacono, W., Hewitt, J. K., Hopfer, C. J., McGue, M. K., & Vrieze, S. (2023). Impacts of recreational cannabis legalization on cannabis use: A longitudinal discordant twin study. Addiction, 118(1), 110–118. https://doi.org/10.1111/add.16016 107 S. West Street, Suite 757 Alexandria, VA 22314 | http://www.learnaboutsam.org 68 142

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