Category Archives: Nevada

California researchers fear legalization of pot could create the next Big Tobacco

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An interesting story about a report put out by California State University, San Francisco (co-authored by anti-tobacco advocate Stanton Glantz) warning that legalized marijuana could become the next “Big Tobacco” because it would create a massive, wealthy and politically powerful economic behemoth.

Here is a copy of the 66-page report. , In reading the Sacramento Bee article about it, Glantz and the report are arguing that with legalized pot and the billions of revenue it would create would also create a very powerful marijuana lobby. A lobby that would likely throw its weight around politically and could ultimately become a subsidiary of the tobacco industry, possibly to the detriment of public health policy.

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From the article:

“Evidence from tobacco and alcohol control demonstrates that without a strong public health framework, a wealthy and politically powerful marijuana industry will develop and use its political clout to manipulate regulatory frameworks and thwart public health efforts to reduce use and profits,” the report states.

Glantz, in an interview added:

“The goal (should be) to legalize it so that nobody gets thrown in jail, but create a legal product that nobody wants,” he said.

He worries that a new marijuana industry would spend large sums of money to curry favor with lawmakers.

“I think a corporate takeover of the market … is very, very hard to stop,” he said, adding, “They are already a potent lobbyist in California.”

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I’m not necessarily agreeing with the report, and honestly, I found parts of it a bit alarmist. But, the concerns about marijuana monopolies and Big Tobacco involvement in the industry are valid. I have posted other articles about Big Tobacco eyeing the legalization of pot very carefully, with the very real potential of today’s tobacco companies swooping in and taking over the legalized pot industry. Keep in mind, this has already pretty much happened with e-cigarettes. RJ Reynolds bought out the No. 1 e-cigarette brand — Blu E-cigarettes, which controls about 40 percent of the E-cigarette market — and there are a number of other e-cig brands owned by tobacco companies. Big Tobacco isn’t in competition with e-cigs, not anymore. When in doubt, buy ’em out.

Tobacco is a dying product, especially in the West, while both e-cigarettes and marijuana are booming. Pot is likely to boom even more as it’s legalized in more states and Canada. If California legalizes pot in November, that state alone probably represents over 10 percent of the pot market in the U.S. Now tack onto that Washington, Oregon, Alaska, Colorado and perhaps a few other states (legalization seems likely in Nevada, soon), plus another 35 million people in Canada if Trudeau goes through with his promise to legalize pot nationwide. I just have to imagine the people at RJ Reynolds, British American Tobacco and Philip Morris are absolutely drooling over the prospects of getting into that market. That’s over 90 million people in North America living under legalized pot laws as early as 2017.

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One of the things I like about one of the California pot legalization measures is that it would allow people to legally grow up to six plants. I haven’t taken the time to research how many plants a person could legally grow in Washington, Oregon or Colorado, but I think it’s important that if pot is legalized that people still be allowed to grow a small amount of their own pot, so it doesn’t quickly and completely become a corporate-run industry. You want to keep RJ Reynolds and Philip Morris or some other monopoly out of the pot business? Let people grow their own pot, and take other steps to prohibit any corporation from getting more than a certain market share and make sure it stays in the hands of small businesspeople.

And there is a paranoid X-Files side of me that is convinced there are people within Big Tobacco that have thought about, dreamed about, maybe even started doing the work on … how to add nicotine to marijuana. Seriously,  think about it. Marijuana with arguably the most addictive substance on the planet added. It would be like Spice in “Dune.”

The report states that pot should be regulated much like tobacco. Instead, the California proposal calls for regulations similar to alcohol. From the article:

One of the (measure’s) proponents, Donald Lyman, a retired physician and a former state public health official, said the notion that marijuana must be regulated exactly like tobacco “represents an awkward minority opinion not widely shared within the public health community.”

I have to agree with Lyman here. For one, there’s some actual medical benefits to pot. I think the medical benefits of pot gets overstated by some pot proponents, but there’s legitimate medical uses as a painkiller and to control seizures. There is NO legitimate medical use for tobacco. While it can become habit-forming for some people, marijuana also is not physically addictive anything like tobacco, nor is there any evidence that marijuana causes lung cancer or even COPD. You simply can’t treat pot and tobacco like the same product. Probably the most similar product to pot would be beer or wine (and yes, there are rumours that not only is Big Tobacco drooling over legalized pot, the beer industry has interest in getting into the pot business as well).

One of the California measures would prohibit monopolies and large-scale pot licences for five years. Co-author of the report Rachel Barry, says five years isn’t enough. From the article:

“I am thinking more in 20 years what the industry will evolve into, not five years,” Barry said. “And that’s something we should be doing with the regulations.”

One marijuana legalization proponent sees some validity in some of the report’s concerns, but said that most of these issues are being dealt with in the language of the California measures.

From the article:

Abdi Soltani, executive director of the ACLU of Northern California and a member of the (Calif. Lt. Gov. Gavin) Newsom commission’s steering committee, said he agrees with some of the concerns raised in the report but ultimately believes the initiative protects the public.

“My middle school child will not walk into a corner store where tobacco and alcohol are marketed and see marijuana for sale,” Soltani said.

 

 

 

 

 

 

 

 

Nevada increases cigarette tax by $1 a pack

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Nevada isn’t a state where I would have expected this, but the state Legislature of the Silver State just passed a $1 a pack increase in its cigarette tax.

The bill, which as near as I can tell has yet to be signed by the governor, would increase Nevada’s cigarette tax from 80 cents a pack to a more reasonable $1.80 (According to the Campaign for Tobacco-Free Kids, the tax was Governor Brian Sandoval’s idea to begin with, so he is expected to sign it into law.) . 80 cents a pack is pretty low. The average state cigarette tax in the U.S. is around $1.50 a pack and state cigarette taxes range from a ridiculous 17 cents a pack in Missouri to a kinda ridiculous $4.35 a pack in New York.

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$1.80 a pack is a good spot for a cigarette tax. Studies have shown that cigarette taxes do provide an incentive for smokers to quit and helps to discourage kids from smoking; in fact, a recent study released a few weeks ago bolsters this argument. According to the Campaign for Tobacco-Free Kids: “Studies show that every 10 percent increase in the price of cigarettes reduces youth smoking by about 6.5 percent and overall cigarette consumption by about 4 percent.”

However, I think if you make the tax too high, like New York’s, I think you start encouraging a lot of people to buy black market cigarettes or to go to the trouble of driving out to an Indian reservation to buy their cigs. New York not coincidentally has a huge issue with black market cigarettes and cigarette smuggling, especially when nearby Virginia has a cigarette tax of only 30 cents a pack. Honestly, I could see smokers making a trip from New York to Virginia two or three times a year to stock up on cigarettes. You buy 10 cartons in Virginia, you save $700 over about three months (if you’re smoking roughly one pack a day) … and it’s only a 220-mile drive.

Anyway, I digress … I like doing math. The real solution to those problems is for states to have more uniform cigarette taxes, which I don’t see happening. Mostly of the really low cigaratte taxes are in the Deep South, which again not coincidentally have some the highest smoking rates in the country. Surprisingly, one of the lowest states in the country is California at 87 cents a pack. California has tried to raise its cigarette tax through voter initiatives, but those initiatives have failed. The California Assembly just needs to suck it up and pass a bill and quit screwing around with passing the buck to voter initiatives.