Tag Archives: Portland

Oregon: Debate Shows Flaws in Measure 91

Measure 91 would tax and regulate marijuana in Oregon.   A problem — acknowledged by both No on 91 and Yes on 91 in last’s night “Great Pot Debate” at Portland State University — is that the measure doesn’t allow cities to tax.  To test the  theory that a “weed” can be taxed and regulated, those who crafted 91 wanted taxes to be lower than in Washington and in Oregon.

Problems with the marijuana edibles in Colorado were discussed. Today Dr. Ron Schwerzler admitted he was wrong about 5 children dying from the edibles.  He may have confused facts about the edibles with three toddlers who died from neglect while parents smoked weed.  Added to the two adults who died, there are 5 non-traffic fatalities in Colorado caused directly or indirectly by marijuana. (So far 13 children have been hospitalized for ingesting edibles, 7 of them in IC Units.)   Dr. Schwertzler was correct, however, in asserting that you don’t treat one addiction with another addictive substance.

No one who was debating had the faintest idea how edibles would be regulated in Oregon.    The debate was live streamed October 21 and will repeat on  KATU TV station, Sunday, October 26, 9 a.m.

Measure 91 could set up turf battles between cities and the state over the right to tax.  In last night’s debate, Clatsop County District Attorney Josh Marquis, suggested that it’s not the people, state, or the cities who would benefit, but lawyers who would fight for all sides.   Marquis sounded critical of the state’s aversion to a sales tax. Oregon has no sales tax and Washington, home of Microsoft, Amazon, Starbucks, doesn’t have a state income tax.  So instead of looking for easy solutions to raise revenues, both states have posed the idea of legalizing marijuana and using the tax for drug prevention education and other services.  Thus far, marijuana businesses have resisted regulations in Colorado.

Joshua Marquis
Photo of Clatsop County DA,  Joshua “Josh” Marquis                   Photo: Courtesy of Doug Crouch Photography.

Oregon’s law would allow individual possession of marijuana that is much more than either Colorado or Washington.

Oregon decriminalized marijuana in 1973.  There are about 2,000 + arrests per year for marijuana, but only 70 or so  currently in jail for marijuana violations alone.  Marquis pointed out that the crimes they committed, such as distributing or selling to children,  would still be illegal if Measure 91 passes.

Portland Pre-empts Marijuana Taxes

Last Wednesday Portland city council voted to for a 10% sales tax on recreational marijuana — to be applied if Amendment 91 passes. Votes are counted on November 4.   This action highlights one of the many flaws in Measure 91, which prohibits cities from taxing pot.  Cities like Portland would like a slice of the marijuana pie, since they will need a lot of money to regulate the industry.

Many cities — Hillsboro, Beaverton, Forest Grove– have passed a tax on marijuana, or are considering the action,  in advance of November 4.   Although Measure 91 gives the state  sole authority to tax marijuana, attorneys for some Oregon cities argue that municipal pot taxes will be grandfathered if passed before the election.  Supporters of Measure 91 argue otherwise.

 

Photo on top is DA Joshua "Josh" Marquis of Clatsop County. Photo: Courtesy of Doug Crouch Photography.  Oregon is known for hiking, biking, Mt. Hood and Multnomah Falls. Why change.  P
Oregon is known for hiking, biking, Mt. Hood and Multnomah Falls. Why change ?

A few local leaders think the pre-emptive taxes are a way to justify the marijuana businesses in cities without residents’ approval.   If this happens, Oregon will have the same political battles that have plagued Colorado and Washington.

While Oregon is counting on enacting a lower rate than Colorado and  Washington, estimates vary as to how much money can be collected.  A Portland firm, hired by the sponsors of Measure 91, estimated first-year taxes for the state to be 38.5 million.  A committee made up of state  economists estimated the figure to be about $9.3 million the first year.

Supporters of recreational marijuana propose that by creating a commercialized industry, marijuana can be taxed and regulated.  When governments introduce vice to raise revenues, they risk doing harm to significant numbers of the population.

Back to the Debate

In questions after the debate, supporters of Measure 91 objected to being “criminals,” as they consider themselves under current law, despite the fact Oregon decriminalized marijuana in 1973.  Inge Fryklund, a former prosecutor, argued that legalizing pot can keep marijuana away from children through regulation.  Her debate partner for Yes on 91 was Richard Harris.

No one discussed the possibility of an increase in explosions caused by hash oil extraction, already a problem in Oregon.  This problem increased threefold in Colorado by May of this year.

During the debate,  the idea that legalizing and regulating pot could take profits away from cartels and put them out of business was mentioned.   However, a Washington Post article earlier this year traced the business of cartels leaving Colorado to Central America, where they have introduced poppy cultivation.  There was general acknowledgement that Washington and Colorado still have black markets.   Why does Oregon think it could be different?

(Here’s our first story about Oregon’s Measure 91.)

Out-of-State Money Funds Marijuana in Oregon

Congressman Earl Blumenauer isn’t voicing objections to the $1.5 million of out-of-state money to finance Measure 91,  the ballot to legalize marijuana in Oregon.   However, he supports a constitutional amendment to overturn the Supreme Court’s Citizens United ruling of 2010, which prevents limits on campaign contributions from corporations and associations.   Like so many politicians, his inconsistency is puzzling.  It can only be understood if we imagine that he’s under the thumb of the marijuana industry.

Instead of complaining  of the out-of-state billionaires, the Congressman from Portland takes on the small-time public servants and volunteers.  These are people who would have presented the latest educational information on marijuana and other drugs,  to the smaller towns and cities in Oregon.  If Blumenauer had adequately looked into the studies of youth marijuana usage and other illicit drug usage of his state, he would have known that drug education is needed.   07_nonmedical use pain relievers past yearOregon ranks very high in all illicit drug usage, compared to other states.  (These maps were published late last year, using statistics from 2010-11)   Regarding the current heroin epidemic, and deaths from overdose,  it’s wise to ask why all alcohol and drug prevention programs get 48% less in federal funds than they received 10 years ago!

The money in question was $15,000.  A non-profit prevention group that receives federal funds was going to use the money to put on a summit in Madras, Oregon, followed by a tour.

Voters should have much more of an issue with more than $1.5 million — 100 x the amount provided for the summit —  that outsiders have spent to legalize marijuana in their state.

Rep. Blumenauer has called for a federal investigation into whether taxpayer dollars are being improperly spent on marijuana education events that he said appear to be aimed at influencing voters to oppose the November ballot measure that would legalize the drug.    Kevin Sabet of Project SAM was to be a speaker at 12 localities around the state, just as he had been educating in Oregon years before.  At this time, the program has now been reduced substantially, although a district attorney has been raising funds. This particular summit is a continuation of educational events that takes place every two years in that community and has been going on for over a decade.  Oregon does not have a state-sponsored program of drug education that provides education to the counties.  Local prevention coordinators must do that job.

Blumenauer had taken aim at Mandi Puckett who left her job at Best Care Treatment Services in Madras, to become coordinator of Vote No on 91-Oregon campaign.  Puckett explained in a Press Release on Friday: “My job was to help apply for State and Federal grants and work with the local coalition to use that money to educate people about the dangers of using addictive substances.”  Prevention education efforts, like the Madras Summit, are often a required component of grant applications.  The educational summit in Madras, followed by the tour of Oregon cities was planned between Fall of 2012 to Spring of 2014,  before Measure 91 was on the ballot. There were various stages for approval of the tour, before the state granted final approval in writing from the Oregon Health Authority.  “Later, when it was announced the measure would be on the November ballot, we took extra steps to include in our work plan and advise presenters to not speak about the ballot measure. Our goal was to educate, not lobby,” said Puckett.

Rep. Earl Blumenauer, D-Ore., talks with reporters September 5 about a series of marijuana education events. (Jeff Mapes/The Oregonian)
Rep. Earl Blumenauer, D-Ore., talks with reporters September 5 about a series of marijuana education events. (Jeff Mapes/The Oregonian)

So as it appears, prevention coordinators were required in their “federally-approved work plans” to educate about alcohol and drugs, including marijuana.  The state, via Oregon Health Authority, was involved in that process and granted approval for the Summit and the tour, which was in planning long before Measure 91 was on the ballot.  Then in August, when advocates in favor of Measure 91 learned of the approved educational events, is when the problem occurred.  According to documents provided by the Oregonian, representatives of Measure 91 and a member of Congress, who is a supporter of Measure 91, lodged false accusations against prevention educators funded to do the very work they were approved to do.

Not Tiny Grants, but Big-time Marijuana Money from the PACs

As one of Congress’ leading advocates for the marijuana industry, Blumenauer isn’t questioning the use of huge donors with no connection to his Congressional district or state.  New Approach Oregon, the group sponsoring Measure 91, plans to spend $2.3 on television ads, while the opposition has no money to advertise.  Here’s the group’s financial status:

PAC Amount raised Amount spent
New Approach Oregon 2014 $599,455.82 $599,455.82
New Approach Oregon $950,168.16 $912,890.50
Drug Policy Action of Oregon $0.00 $0.00
Total $1,549,623.98 $1,512,346.32

Private, out-of-funds state funds donated earlier this year are:                            Peter Lewis & his family                      $350,000                                       George Soros                                              $160,000

Soros is connected to the Drug Policy Action PAC.  Because not all donors to PACs are made public, it is a bit difficult to sort the information.  None of the big donors appears to be from Oregon.

According to Ballotpedia, as of July 30, 2014, the No on 91 group had zero money, but Measure 91 had received more than $1.5 million.   The top 5 contributors were:

New Approach PAC $250,000
Drug Policy Action $200,000
Drug Policy Action Fund for Oregon $150,000
Philip Harvey $100,000
Henry van Ameringen $100,000

 

Soros lives in New York.  Peter Lewis was a Florida resident when he died in November, and his sons have continued to contribute to the campaign.   Philip Harvey is from Washington, DC, and Henry van Ameringen lives in New York.  They serve on the New Approach Oregon Committee, along with Cari Tuna, wife of a Facebook co-founder.

How Marijuana Money Controlled the Oregon Election in 2012

In Oregon, the marijuana lobby succeeded in determining the outcome of the 2012 race for Attorney General.   The winning candidate in the Democratic primary for Attorney General had received the largest portion of her campaign money from marijuana industry supporters.  These donations came from: Drug Policy Action committee,  $80,000; Arizona resident John Sperling, $70,000, and Citizens for Sensible Law Enforcement, which spent $53,000 on radio ads.  (The largest non-marijuana donation was $25,000)  There were to be no Republican candidates running in the primary or general election.  Since it was a ballot by mail and only 25% of the Democrats voted,  marijuana advocates got out their vote.

Other voters were led to think the main issue was that the opponent, interim US Attorney General Dwight Holton, had not been a resident of Oregon very long.   In reality, Holton had taken a tough stance on drugs, allowing some federal raids on marijuana producers in violation of law.  He had called the state’s medical marijuana program a “train wreck.”   Medical marijuana came to Oregon after a ballot vote in 1998, but it didn’t come under state regulations until this year.

Winner Ellen Rosenbaum had promised not to prosecute medical marijuana.  John Sperling, also a big marijuana donor, was the founder of the University of Phoenix.  At the time, Oregon’s Justice department was part of a multi-state investigation into his school and other for-profit universities.  Only 25% of the Democrats voted, so it is clear that radio commercials sponsored by pro-pot groups, in addition to Rosenblum’s campaign ads, got out the “weed vote.”   Rosenblum won by 64% to 36%, and the marijuana groups  bragged about their victory.

Two years ago the big out-of-state donors financed marijuana legalization campaigns in Washington and Colorado, but they did not donate to Measure 80,  Oregon’s failed legalization initiative of November 2012.   However, by June 2012, BIG MARIJUANA had already funded and controlled the race for Attorney General that year, which promised that medical marijuana in the state would — relatively speaking — continue unregulated.

 Key Components of Measure 91

This year’s initiative,  Measure 91, would place marijuana regulation under the state liquor board.  The premises of Measure 91 are that legalization would 1) Eliminate 12,800 arrests (The number of marijuana arrests was actually around 2700, politifact.com found.   2) Regulation would do a better job at keeping it away from children (only with good prevention education!) and 3) It would eliminate drug cartels and give profits to the state instead of criminals (highly speculative, with no concrete evidence).

New Approach Oregon hired ECONorthwest, a Portland firm,  to estimate the potential tax revenues of a legalized marijuana industry, if this measure is approved. The estimate of $38.5 million for the first year was to be based on a Colorado’s figures, from the viewpoint of cost/benefit analysis.  Currently, Colorado is taking in much lower taxes than they originally planned.

Although the tax rate would be lower than Colorado’s tax, the experience in Colorado and Washington shows that black markets don’t end with legalization.  Marijuana has been decriminalized in Oregon since 1973, and medical marijuana was approved in 1998. The Oregon Medical Association does not recommend marijuana for medical reasons, or otherwise.  After 15 years, Oregon only began regulating medical marijuana this year, after passage of House Bill 3460.

Why BIG MARIJUANA won in Colorado

The Marijuana industry targeted Colorado for legalization because its largest city, Denver, is in the center of the state.  The Denver – Colorado Springs television market is the only place in the state with a sizable population.   Television ads could target the Denver region, while other parts of the state  were less likely to know marijuana was on the ballot. The Marijuana Industry may have hoped the same thing could happen in Oregon this year.  Possibly they took issue with Madras summit because voters in outlying areas would be getting more factual information about marijuana.  As in Colorado, voting in Oregon is done by mail in the weeks leading up to the election date.

Oregon compares well to Colorado, because both states have a high number of pain pill abusers and other drug abusers.  States with medical marijuana tend to have higher percentages abuse, dependence and teen marijuana usage.  It’s not clear if the difference reflects medical marijuana or the low perception of risk from using pot.  An exception is Maine, which has had medical marijuana since 1998, but its percentage  of youth marijuana use and all drug  use is significantly lower than in nearby states and it can be attributed to good prevention education programs and staff.

States that have high amount of illicit drug usage tend be the states where the highest percentage of teens begin using marijuana at a young age, Oregon included. There’s good reason to believe the Summit in Madras and the entire 12-city tour is very much needed

We ask Representative Blumenauer and other politicians to stop pandering to the marijuana industry and caving to their lobbyists.