2015-12-27

Cato: Ohio’s Issue 3: The Runt of the Marijuana Crop

By nearly a 2 to 1 margin, Ohio’s Issue 3 has failed. It may be just as well. Jacob Sullum writes at Reason:

"[I]t’s not clear whether the rejection of Issue 3 reflects general resistance to legalization or opposition to the initiative’s most controversial feature: a cannabis cultivation cartel that would have limited commercial production to 10 sites controlled by the initiative’s financial backers. The ballot description highlighted that aspect of the initiative, saying Issue 3 “grants a monopoly for the commercial production and sale of marijuana for recreational and medicinal purposes” and would “endow exclusive rights for commercial marijuana growth, cultivation, and extraction to self-designated landowners who own ten predetermined parcels of land.”"

This is nothing like the model that prevailed in Colorado, and that seems to be working well so far.

Establishing a permanent commercial pot cartel has no clear public policy rationale. It appears rather to have been an instance of shameless self-dealing by individuals who hoped to extract rents based on the public’s anxiety about change. Even – and I don’t say this lightly – even a state monopoly on commercial sales might have been better, in that the rents would have gone to a public purpose, rather than to some well-connected speculators, who ought not to profit from a law written specifically to favor them. Indeed, such laws are not properly called laws at all; they are privileges – private laws, rather than public ones, and as such they come under grave suspicion.

Read more at http://www.cato.org/blog/ohios-issue-3-runt-marijuana-crop

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