Thursday, December 3, 2015

So there's a marijuana industry?

Of course there has always been - but now that it is legal in a couple states and likely in more very soon, it is now legal. And it is becoming increasingly sophisticated and powerful.

The following text from the story discussed in the previous post - click here for it - illustrates some items we covered in class when we discussed interest groups, iron triangles and the revolving door. It also hints at what types of factors make for stronger interest groups. The public policy related groups seem to losing out to the industry groups. This makes sense given who makes more money and the relative incentives that exist to support each type of group. We looked at a variety of stories over the semester that pointed out that groups that promote private benefits tend to be much stronger than those that promote public benefits.

Here's an illustration:

. . . it's in the industry's interest to fight stricter regulations — and especially proposals that don't let for-profit pot businesses take root.
Even last year, it seemed like both sides were getting their fair share of attention as Colorado and Washington state worked through regulations for their newly legal pot industries. But today, even legalization advocates acknowledge that the industry will play a significant role moving forward — and might even take over entirely after 2016.
Already there are some strong links between the marijuana industry and movement. For example, at least five of 10 people on MPP's board of directors have direct ties to the industry: Troy Dayton is the CEO of the ArcView Group, which invests in marijuana businesses. Joby Pritzker, whose family started and owns Hyatt Hotels, invests in pot businesses. Tripp Keber is the CEO of Dixie Elixirs, which produces pot edibles. James Slatic is CEO of MedWest, which produces marijuana concentrates. And Rob Kampia, executive director of MPP, is a board member and the treasurer of the National Cannabis Industry Association, the lobbying arm of the pot industry.
Among lower-level staffers, Riffle said it's also common for many to move from the legalization movement to cushy jobs in the industry — something Riffle tried himself, acting as a lawyer for the industry in California, before he moved back into advocacy. This revolving door may create a financial incentive for those in the movement to support commercial legalization, since it may provide more lucrative job opportunities.
Still, many MPP board members and staffers were involved with legalization before they were involved in the industry — and before there even was a legal industry. As MPP spokesperson Mason Tvert told me, legalization is a deeply personal, genuine issue for many people in the movement. "Those of us working at MPP got into this because we strongly believe that marijuana prohibition is bad public policy that is needlessly causing significant harm to society," Tvert said, citing multiple examples of him and other MPP members having run-ins with the law because of marijuana when they were younger. "We have all forgone potentially more lucrative careers (either within the marijuana industry or in other fields) to work on this issue because we feel so strongly about it."
Tvert also argued that MPP still gets few contributions from the industry: In 2015, for instance, $420,000 out of its $4.2 million budget will come from marijuana businesses, according to internal estimates.
But ties between the marijuana movement and industry are expected to strengthen as time goes on. As legalization expands, the industry will likely play a much bigger role in shaping and funding ballot initiatives, which can be very costly. Big Marijuana could also build the clout to sway lawmakers with campaign donations and lobbying if, instead of ballot measures, legalization takes the legislative route in some states.
Ethan Nadelmann, the executive director of the pro-legalization Drug Policy Alliance, said he has long expected the pot industry to grow and become a bigger part of the drug policy reform movement as legalization spread. "On some level, we have always known that," he told me. "And I think 2016 may be the last year in which drug policy reform organizations, driven primarily by concerns of civil liberties and civil rights and other good public policy motivations, will be able to significantly shape the legislation. And I assume that as the years progress, various industry forces will loom ever larger."