A story grows in Arizona. The state’s legal landscape shifted
drastically in 2010, when voters marginally succeeded in legalizing the Arizona
Medical Marijuana Act (Prop 203, commonly). According to CNN reports at the
time, the Arizona ballot measure—to legalize the consumption of medical
marijuana—passed with only 50.13 percent of the vote. Prop 203 was effectively the
only ballot to eke through the citizens-initiative process. Marijuana, however,
was no stranger to the AZ ballot four years ago. In the mid-to-late 1990s,
voters twice attempted to pass initiatives. Technical errors with wording
resulted in the laws’ inability to protect patients from arrest. Then, in 2002,
the legalization of small quantities of marijuana was refused. When things changed
in 2010, Arizona became fertile soil for potentially leading other American
states in cannabis cultivation.
I interviewed a
close friend who works deep inside Arizona’s medical marijuana industry and
spearheads the marijuana revolution. First, he addressed the nationwide shift
in the legal landscape of medical marijuana, deeming it “inevitable.” Coupled
with great timing, the design of Arizona’s prop system allowed voters to pass
what friend labeled a “loosely, and frankly poorly written Prop 203.” He noted
that legislatures in other states have since fought to tighten limitations on products
and facilities (“concentrates,” “edibles,” the size of grows, etc.). My source
also broached the “inability to go back and change the proposition,” as the
reason for Arizona being locked “in a loose system, with marginal oversight.” This
legal status lends itself to the foreseeable longevity of cannabis, and the future
marijuana industry, within Arizona. Of course, there always exists the
possibility that the federal government will make marijuana (in its entirety) a
states’ rights issue. Incidentally, this seems the direction favored by many
marijuana exponents. Should something of that magnitude blossom, then Arizona
already plays a pivotal role in pruning that historic outgrowth.
Thanks to Prop 203’s passing in 2010, Arizona’s newest
medical marijuana measures include many alleged freedoms for patients. The
terminally, or seriously ill, may use marijuana with a doctor’s approval. They
are also supposed to have protection from legal prosecution, or arrest, which
they would otherwise risk by simply taking their physician-advised medicine.
With strictly regulated and controlled clinics, patients and caregivers may use
qualifying permits to purchase their medicine safely, rather than seeking
products from illicit sources. Additionally, if patients/caregivers do not have
access to a medical marijuana clinic within 25 miles, they may cultivate
marijuana for medicinal use. Of course, as far as the general public is
concerned, commonsense limitations and prohibitions on public consumption
remain intact. What is more, registration measures are to help ensure that law
enforcement can easily distinguish legitimate patients from fraudulent users.
Nonetheless, federal limitations still play their part.
One major
economic byproduct of Prop 203 legislation has been the physical and productive
proof that Arizona is the frontier of
American cannabis. According to my source, Arizona houses a 400,000 square-foot
green house, which grows medical marijuana in the southern part of the state.
He claimed this facility arguably houses the “biggest known grow in America.”
Colorado, for one, certainly poses an obstacle to Arizona’s maverick position
in pioneering marijuana’s future; however, my source was quick to cite the
strict rules and limitations in place in Colorado. He explained that growing
year-round is not the most lucrative option. “They obviously grow indoors all
year,” he said, “but growing indoors is expensive, and the yields are less.” He
predicted that facilities in Arizona will most likely outpace production in
Colorado for this selfsame reason. Climate differences make a sizable
difference on such epic scales. In Arizona, argued my source, interested
parties could “use more of the product for the research and development of new
products.” Such a boon to research and development would only boost Arizona’s
countrywide cannabis competitiveness.
There are many other factors to consider when looking at the
future of cannabis, and Arizona’s particular potential. Facilities are
expensive to build, for one, and securing outside financing proves next to
impossible. My source reported that Arizona will become an industry “powerhouse”
within five years—especially after “prop legalization in 2016.” Voters
statewide already anticipate marijuana on the 2016 ballot. Of course, Arizona’s
state legislature could draft a legalization bill all their own, and altogether
hijack control of the industry beforehand. My source bluntly observed that although
this could transpire, Arizona is simply “too backwards for it to happen.”
Yet another compelling part of this revolutionary epoch in
cannabis history is the isolation of current key players, and those who might
contribute to the marijuana frontier in the future. “Experienced businesses
know how to hide their involvement with other businesses through subsidiaries,”
said my source. Major businesses, he explained, may not themselves be directly
involved in current cannabis products, but they do take a serious interest and
ramp-up in the meantime. He cited the likelihood of some major corporations having
“teams of researchers and scientists” already on the job. Firms such as
Budweiser, Monsanto, Phillip Morris, he noted, all have the money to become
what my source described as “overnight players.” There are also European
entities hoping to gain easy and immediate entry to the medical marijuana
market, too. Hell, the US government alone holds the official patent
on cannabinoids—a most valuable plant
element. It would seem that even the token ‘powers that be’ are interested in
marijuana.
Larger economic forces are obviously at work. The informal
economy, which can prove an obstacle to the profitability of any regulated
industry, also continues to strongly affect the future of cannabis. Arizona
itself sits geographically close to many illicit organizations, which are well accustomed
to the serious profitability of illicit marijuana sales. My source explained
how the black market will stay strong until large, regulated firms can boost
production to a scale that will drive costs down significantly. For now, medical
and legalized marijuana remains a looming specter, which haunts the future of
illicit revenue. Cartels might certainly augment their production to stay
competitive, but even within the confines of regulated markets, there are already
reports that substitute products (like alcohol) have experienced major
backslides in sales since legalization in Colorado. It goes without saying: a
lot of money is at stake for all interested parties—legal or other.
My source projected that a healthy legal industry worth a few
billion dollars will snowball into a robust market worth tens of billions more.
He identified that, while there are undeniable medical benefits to cannabis,
there are always negative consequences for anything that can make way for vice.
Some of those who currently profit from medical marijuana sales also deliberate
whether or not marijuana should be made readily available for recreational consumption.
Currently, what transpired in Arizona vis-à-vis medical marijuana in 2010 has rendered
negative effects for cartels. My friend explained that “they make a majority of
their profit on illicit marijuana sales,” noting that the legalization of
medical marijuana has “forced them to improve quality without changing or
lowering the price, and reduced overall demand.” Thousands of tons of
medically-grown marijuana, he claimed, also get “pushed out the backdoor and
into traditional illicit markets.” This, however, is a national issue that goes
well beyond the scope of Arizona. Moreover, full, nationwide legalization could
bring Arizona’s obvious momentum to a grinding halt. California, a potential competitor
for Arizona and one of the world’s largest economies, already grows a substantial
majority of the fruits, vegetables, and nuts consumed in America. Massive grows
of cannabis would prove much more effective in California’s valleys than in the
Arizona deserts. The economic upside from added-value to better, larger
California grows seems obvious enough. And without current federal
restrictions, California could easily become the alpha and omega of the marijuana
industry. For now, though, Arizona green-lights its ambitious fecundity for the
future of American cannabis.
Mateo Pimentel is a sixth-generation
denizen of the Mexican-United States borderland, and writes for many
alternative news sources, political newsletters and academic journals.
© Copyright 2014 by AxisofLogic.com
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