The Hard Work Of Creating A Marijuana Business Cartel
Commercial pot about to become big business here; valuable turf in play
The Michigan House of Representatives passed a bill on April 17 to essentially prohibit any extensions of a key deadline for businesses that operate in the medical marijuana industry, effective June 1. The recreational marijuana ballot initiative Michigan voters approved in 2018 imposes a comprehensive and costly licensing regime on marijuana businesses, including retail shops. But the transition from a less regulated system of so-called medical marijuana dispensaries to a new regime has not been smooth.
Specifically, only recently have licensing authorities caught up on processing a backlog of license applicants, with delays due to what those in the cannabis industry say are overbearing licensing requirements.
“The creation of the medical marijuana business program was a highly politicized legislative battle that took several two-year legislative sessions to complete,” said Rick Thompson, an industry advocate with the Michigan chapter of the National Organization for the Reform of Marijuana Laws.
“Special interests from business and law enforcement groups gained the inclusion of many unnecessary requirements and regulations in the program,” Thompson continued. “These extensive financial and background checks, exhaustive cannabis testing and transport procedures, seed-to-sale tracking and compliance protocols have extended the time needed to approve candidates for one of these businesses.”
Many people have pointed to a previous medical marijuana licensing board as a major source of the problem. The board was created as part of a “seed to sale” regulatory regime originally created for medical marijuana by a 2016 law, one of the legislative battles referred to by Thompson. Lawmakers were aware then that a recreational marijuana initiative was in the works, so the law they enacted included provisions to include it. Voters approved that initiative in November 2018, and it imposes its own comprehensive licensure regime.
In March, Gov. Gretchen Whitmer issued an executive order abolishing the medical marijuana board and transferring its license processing duties to a new agency that has regulatory oversight over both medical and recreational marijuana. The agency will be housed within the state Department of Licensing and Regulatory Affairs and staffed by its employees.
In a phone conversation, Dave Harns, a spokesperson at the licensing agency, pointed to the reforms as a step in the right direction for streamlining policy and approvals. “We were once months behind, then weeks behind. Currently, we are not behind. We are now opening applications as they come in,” Harns said, crediting the improvement to process changes the department developed internally.
Thompson said he expects the process of licensing adult-use (recreational) cannabis businesses to go a lot smoother when the agency issues “emergency guidance” by this summer.
The bill that recently passed the House was sponsored by Rep. Jim Lilly, R-Park Township, and it would establish that unlicensed medical cannabis businesses still in operation would be barred from getting a license for one year starting June 1.
Thompson, despite many challenges ahead, says he is still optimistic.
“Michigan has evolved away from questioning the medical necessity of cannabis, yet still struggles to accept cannabis-based businesses in many communities.” He added, “The future looks very bright for our industry.”
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Wealth and Freedom are the Best Means of Protecting Species
Earth Day organizers have other ideas
The 2019 Earth Day website warns that human activity is causing extinction on a grander scale than has been experienced in the planet’s recent history, and suggests that our impacts must be minimized at all costs. But that warning misses the fact that nature doesn’t give away anything for free. Humans — like every other species on the planet — are a part of an environment that we must change to survive.
Earth Day organizers mirror the concerns of New York Rep. Alexandria Ocasio-Cortez, who ominously warned that “The world is gonna end in 12 years if we don’t address climate change.” They claim that “Human beings have irrevocably upset the balance of nature and, as a result, the world is facing the greatest rate of extinction since we lost the dinosaurs more than 60 million years ago.” They continue by pointing to an “unprecedented” level of “global destruction” ostensibly brought on by lax government and business attitudes toward sustainable development. Their solution? “We need to do more!”
“More!” has been the rallying cry of the end-timers since at least the late 18th century, when Thomas Malthus penned his “Essay on the Principle of Population.” He argued that “The power of population is indefinitely greater than the power in the earth to produce subsistence for man. Population, when unchecked, increases in a geometrical ratio. Subsistence increases only in an arithmetical ratio.” Translation: Human populations grow far faster than our food supplies and we’ll soon run out of food. But human ingenuity has repeatedly proved him wrong.
Others, like Stanford biologist Paul Ehrlich, regularly revisit his error. Ehrlich opened his 1968 book, “The Population Bomb,” with a hyperbolic prediction: “The battle to feed all of humanity is over. In the 1970s hundreds of millions of people will starve to death in spite of any crash programs embarked upon now. At this late date nothing can prevent a substantial increase in the world death rate.”
In 1989, Noel Brown, the director of the New York office of the U.N. Environment Program expressed similarly dire concerns. He argued that if global warming were not stopped, by the year 2000, entire countries “could be wiped off the face of the Earth by rising sea levels.”
We’re still on dry ground, and the UN Population Division reports that, globally, death rates have dropped from 13.5 deaths per 1,000 people in 1970 to 7.7 in 2015. Regarding Ehrlich’s starvation predictions, HumanProgress.org reports that worldwide food supplies, per person, per day have increased from 2,253 calories in 1961 to 2,853 calories in 2013.
Despite improvements in food security and environmental conditions, the Malthusian outlook still demands that humans stop doing those things that help us live better, more comfortable, safer, and longer lives. For example, the Green New Deal would impose as much as $93 trillion in costs, while also mandating strict restrictions on our energy and food sources, as well as our ability to travel. It has been promoted as the sure way to rescue the environment from assured destruction, but the proposal would actually squander funds that could be used to protect natural areas or to develop cleaner and more efficient energy. Even Democrat heavyweights like Speaker of the House Nancy Pelosi, have thrown “some serious shade” at the plan, by referring to it as “The green dream, or whatever they call it.”
One can certainly hand it to Rep. Ocasio-Cortez and the Earth Day organizers. They clearly understand how to pitch the issue with just the right mix of sandwich board-style, “the end is near,” pathos. But, while their threats of the coming apocalypse do scare children to the point of tears, they gloss over the fact that nature is not, and never has been, a warm, protective, and “balanced” cocoon.
Nature both helps and harms all species. And only by using our brains and technology can we rise above the level of scratching a nasty, brutish, and short existence out of the mud before succumbing to disease, inclement weather, or the claws and teeth of a more adept competitor.
Humans protect and steward the earth and its resources because it is in our own long-term interest to do so. But we can best protected and steward the earth when we mix our ingenuity with free markets to create wealth. Together, freedom and wealth give us the financial well-being to protect the environment in a manner that best provides for the needs of both humanity and the thousands of species with which we share this world.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
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