Pot legalization seen as economic boon for state

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Responsible Growth Arkansas is made up of owners of the existing medical marijuana businesses that funded writing the proposed constitutional amendment and the successful effort to gather enough signatures to get it on the ballot in November. Eddie Armstrong, chair of the ballot question committee for Responsible Growth Arkansas, said Issue 4 would allow growth of an industry that would bring huge economic benefits to cities and the state while creating thousands of new jobs.

“I think this is a good business choice for Arkansas,” Armstrong said. “The cultivators in this industry understand it fully and well. The cultivators and dispensary owners saw there are opportunities to expand to adult recreational use in a way that is responsible and well-regulated. It will bring forth huge economic benefits to the city and state, will create thousands of new jobs, and will allow hiring more police officers to work on higher crimes like the fentanyl problem.”

Issue 4 would decriminalize possession of up to one ounce of cannabis by adults 21 and over. Possession of larger amounts, or possession by individuals under 21 years of age, would remain illegal. Responsible Growth Arkansas said that limiting the number of licensees to grow and sell cannabis to a total of 20 cultivators and 120 dispensaries statewide, including existing medical licensees, would help law enforcement keep cannabis out of the hands of minors and off the black market.

Opponents have alleged that Issue 4 was written to benefit the owners of existing medical marijuana businesses at the expense of a more competitive market. Medical marijuana has proven to be profitable in Arkansas with sales totaling $205 million in the first nine months of the year, according to Alcohol and Beverage Control.

Issue 4 would create no new large cultivation facilities but allow Tier 2 growers, limited to growing 250 plants. Armstrong said Tier 2 growers would be similar to craft beer breweries.

“We are hopeful our craft growers will have the opportunity for better yields, and better products in each zone of state,” Armstrong said.

Armstrong takes issue with the claim the legislation would create a monopoly.

“These are Arkansas folks – doctors, lawyers, accountants and businessmen – who currently have ownership in the medical marijuana industry,” Armstrong said. “They have worked with the Attorney General’s office, with state bureaucrats, and with Alcohol and Beverage Control looking at adult use in a responsible way. This is a way to create responsible adult-use recreational marijuana by Arkansans for Arkansans.”

Other states with legal medical or recreational marijuana programs have taken vastly different paths governing the industry. Some have limited licenses while others have encouraged broad competition. For example, Oklahoma has more than 2,000 dispensaries compared to a total of 33 currently allowed in Arkansas, not all of which have opened.

“People outside the cannabis industry might be surprised to learn that the most liberal medical marijuana market in the country isn’t California anymore,” according to mjbizdaily.com. “Nor is it Colorado, Oregon or another left-leaning blue states. It’s politically conservative Oklahoma.” Marijuanapacking.com reports that Oklahoma’s pricing averages $5-10 per gram, while Arkansas’s average hovers around $14 per gram.

Opponents of Oklahoma’s medical cannabis market claim that the state can’t possibly regulate that many dispensaries. Armstrong said the prices are cheaper there because the market is oversaturated.

Armstrong said the bottom line is the legalization of adult use of marijuana in Arkansas is an opportunity to do some good for the state. “It indeed brings forth real tax revenues such as an estimated $45 million a year for law enforcement and $30 million for cancer research,” he said. “It is creating more jobs.”

Armstrong also defended the amendment not providing expungement for people with prior convictions for marijuana offenses.

“It is bigger than expungement,” Armstrong said. “There is still much work to be done, but if we don’t regulate it, and suppress the black market, people who want to access cannabis will have to pay to get a medical card or purchase it on the black market. When you access cannabis on the black market, that opens you up to access to other illicit drugs like fentanyl and opiates. The crisis with fentanyl and opiate addictions and overdose deaths is a big deal.”

In the November election, five states have ballot initiatives to legalize cannabis for recreational use: Arkansas, North Dakota, South Dakota, Missouri and Maryland. More than half of the U.S. population lives in areas where either medical or recreational cannabis is legal. Armstrong attributes the influence of pro cannabis states to the decision by President Biden recently to expunge federal criminal records for marijuana possession.

Armstrong said polls show that a majority of people in Arkansas favor legal adult recreational cannabis use.

 “We should put that in a regulated environment that is not any different than buying a six pack of beer at the liquor store,” Armstrong said. “Why wouldn’t we regulate this in a responsible way that would try and do some good for our state?”