CANNABIS REGULATION AND LITIGATION LANDSCAPE

CD: Could you describe the evolution of the legal cannabis market in the US, and provide an overview of its growth in recent years?

Sleeper: The sale and use of cannabis legally in the US became popular in about the mid-19th century, largely from a medicinal and therapeutic standpoint. However, by the 1930s, attitudes changed significantly, and most states had banned the use of cannabis except for some medicinal uses followed by the federal government via the 1937 Marihuana Tax Act and 1970 Controlled Substances Act (CSA). By the 1980s, attitudes once again changed in the US, with grassroots organisations pushing for greater decriminalisation of marijuana offences. In recent years, growth of the cannabis market can largely be summed up in one word: meteoric. Forty-four percent of American adults now have state access to legal adult use cannabis. That encompasses almost 250 million Americans living in states where cannabis is legal medically and roughly 150 million American adults live in states where cannabis is legal on a recreational basis. Usage rates, as self-reported, have correspondingly risen sharply since Washington and Colorado opened the doors beginning in 2012 to other states permitting the recreational use of cannabis. IBIS World has reported that between 2016 and 2021, medical and recreational cannabis cultivation and retail businesses in the US in terms of revenues, profits, jobs and wages grew between 20 to 30 percent. Sales in the US increased this past year alone by 40 percent to $24bn, eclipsing North American sales of Starbucks coffee, and projections show expected sales to grow to more than $70bn within just the next four years, eclipsing the market for craft beers.

Maiolo: Marijuana made its way to North America via Jamestown settlers in 1611. For generations, hemp was used to make necessities and was so valuable it was considered legal tender. In 1906, through the Pure Food and Drug Act, cannabis was first labelled an “addictive and dangerous” drug. Then, through misinformation and propaganda, cannabis was effectively banned via the 1937 Marihuana Tax Act. In 1996, California became the first state to legalise medical marijuana. Between 1998 and 2012, 20 states had medical marijuana programmes.

Jul-Sep 2022 issue

Ansell Grimm & Aaron, PC

Barton LLP

Carr Maloney P.C.