About the … “State” of Marijuana

On November 8, the portion of Americans who will legally be able to use marijuana recreationally rose to more than one-fifth.  Out of the five proposed state initiatives to legalize the recreational use of marijuana, three passed — California, Massachusetts and Nevada.    In Maine, the ballot results were so close that initiative opponents called for a recount, but the passage of Maine’s Question 1 is expected to prevail.  Arizona’s initiative failed.

Voters in all four states, with medical marijuana ballots, Arkansas, Florida, Montana and North Dakota, passed the initiatives, granting an additional 24 million Americans access to medical marijuana.  That brings the total to 28 states and Washington D.C. that permit some form of medical marijuana use and means more than half of America’s population lives in a state that has approved medical marijuana.

So beyond the electoral outcomes, what are other takeaways?  We should keep our eye on the big picture and the context it brings to employers in today AND tomorrow’s workforce.

Follow the Money

What may have started as a civil liberties and medical support platform has clearly and unabashedly morphed into a commercialization movement.

For example, let’s look at the spending behind the campaigns for November’s marijuana initiatives as reported by Drug-Free Action Alliance.  These examples remind us that “wins” cost a lot of dollars.

And why is there so much money spent to further this issue?  It’s anticipated to be major, big business.  Forbes reports that ArcView Market research is releasing its fourth edition of The State of Legal Marijuana Markets with a prediction of $21.8 billion annual sales in 2020 (up from $5.4 billion in 2015).

The kicker, of course, is that all this activity and fervor is happening while marijuana is still banned at the federal level.  This leads to a number of additional, constraining federal provisions that complicate the marijuana industry including interstate commerce, banking, transportation, the use of airwaves, postal system, gun control and much more.

Supporters of marijuana are hopeful the recent decisions by voters this November will put political pressure on Congress, the Drug Enforcement Agency (DEA) and the Food and Drug Administration (FDA) to reconsider the federal law and stance.

Don’t Forget the Costs

As we are hearing about the popularity, legal progress and projected revenues of the marijuana industry we need to realistically ask, “Yes, and what will be the costs?”  Obviously, there will be costs associated with establishing safety and accountability controls for the new industry.  But there will also be societal costs.  For example, according to the U.S. Office of National Drug Control Policy, the total cost of substance abuse including productivity, health and crime-related costs exceeds $600 billion annually and includes approximately

• $235 billion for alcohol
• $193 billion for tobacco
• $181 billion for illicit drugs

And although we don’t have knowledge of what the marijuana-specific costs might translate to yet, we do have measurement with alcohol and tobacco.  The facts demonstrate that for every $1.00 generated by the commercial sale of alcohol and tobacco, the cost to society is $10.00. That’s a 1:10 ratio.

Many of the costs connected with the commercialized marijuana industry will be directly tied to workplaces including accidents and lost productivity.  Legalized marijuana increases use and associated workplace-related consequences:

• Businesses that require pre-employment drug tests will find a smaller pool of potential hires.
• Small businesses that do not drug test will end up with more employees who use marijuana, affecting job performance and liability issues.
• Marijuana use impairs driving ability and will lead to more traffic accidents, serious injury, deaths and higher insurance rates for businesses (e.g., according to the Colorado Department of Transportation, drivers who tested positive for marijuana in fatal car crashes DOUBLED between 2006 and 2010.)

Bottom line, increased marijuana use, will generally increase the cost of doing business even if some employers take a prohibition position in their individual operations.

Besides impacting the cost of doing business, another dynamic for business is that marijuana laws impact decisions about using marijuana, both by our employees and the citizenry at large from which we pull employment candidates.  A study from Yale University revealed that

• 25% percent of those polled said they would never use marijuana, regardless of its legal status,
• another 20% reported they will use the drug even if it is banned in their state, and
• of the remaining 55%, factors such as government tracking of purchases, rising cost and drug-free workplace regulations all play a part in their decision, and
  • specifically, 20% in this group said they would use cannabis if it didn’t violate drug-free workplace standards.

Currently, in most states, employers have prevailed in keeping their right to maintain drug-free workplace operations that prohibit marijuana.  However, this movement expands the possibilities for an employer who is interested in allowing state-legal use.

Future of Marijuana on Steady Ground?

As background, state marijuana laws are divided into three classifications.  The first, legalization, permits the possession or use of cannabis, while the second, decriminalization, lowers criminal punishment to civil penalties for possession or use of negligible quantities of marijuana. The third category is medical marijuana, which permits users to argue against criminal charges for possessing the drug if they can mount a sufficient case for using it for medical purposes under state statute.

The most enacted classification is currently legalized medical marijuana with the activity fast-moving and based on what virtually everyone accepts is a severe lack of sound research.  As recently as August, the DEA refused for the fifth time to reclassify marijuana, which is listed as a Schedule I drug, characterized as having no currently accepted medical use and a high potential for abuse.   There is research that supports this.

For example, as reported by Michael A. Taffe, Ph.D., at the Scripps Center for Cannabis Addiction Neurobiology and the TSRI Committee on the Neurobiology of Addictive Disorders funded by the  National Institute on Drug Abuse, studies on the cognitive effects on the brain from drugs used recreationally have resulted in strong positions that

1. Marijuana acutely impairs cognitive and other behavioral functions.
2. Marijuana is addictive.
3. Marijuana addiction is as real as any other addiction and marked with symptoms of withdrawal. (Check out the Marijuana Misperceptions section of Working Partners® Marijuana Resource Center for a long and a short version of a brochure on marijuana myths.)

Our nation’s attitudinal and legal chasm around the commercialization of marijuana is especially subject to political influences.  What will happen with the administrative change at the federal level?  Early signals have entrepreneurs, investors and business operators attentive.  President-elect Trump has indicated his choice for Attorney General is Alabama Senator Jeff Sessions (R) who has been a vocal opponent of legalization in any form.

Bottom Line

Ultimately, there are many layers and many shades of gray for all of us to consider regarding the legalized commercialization of marijuana.  Even if the issues don’t directly tie to employer concerns about workforce operations and futures, the decisions made and actions taken will have a direct impact on all employers.

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