Year: 2013

The initiative process may be the only way of accomplishing legalization in some states, but the ordinary process of legislation, where feasible, is likely to yield better outcomes. The bulk of the revenue of a legal cannabis industry, like the bulk of the revenue of the beer industry, will come from people with substance abuse disorder. Thus the commercial interest will be opposed to the public interest in minimizing the growth of the clinically impaired population. In the face of the lobbying power of the cannabis industry, it will be difficult to maintain high taxes or tight regulation. A state-monopoly system at retail might be preferable. The doctrine of “commercial free speech” makes the regulatory problem harder; one advantage of a state monopoly would be better consumer information. But the state lotteries demonstrate that a revenue-driven state monopoly can be just as ruthless as any private enterprise.