How to Regulate Cannabis A Practical Guide SECOND EDITION How to Regulate Cannabis A Practical Guide How to Regulate Cannabis A Practical Guide SECOND EDITION Updated October 2016 Transform Drug Policy Foundation Getting drugs under control Transform Drug Policy Foundation is an international, charitable think tank with staff in the UK and Mexico. We are working to get drugs under control by advocating for strict regulation of all aspects of the drug trade. We aim to equip policy makers and reform advocates with the tools they need to fundamentally change our current approach to drugs and create a healthier, safer world. Transform emerged in response to the increasingly apparent failings of current national and international drug policy. We draw attention to the fact that drug prohibition itself is the major cause of drug-related harm to individuals, communities and nations, and should be replaced by effective, just and humane government control and regulation. We provide evidence-based critiques of the war on drugs, new thinking on alternatives to the current enforcement-oriented regime of prohibition, and expertise on how to argue for reform. In addition to working with a broad range of media, civil society and professional groups globally, we advise national governments and multilateral organisations, and we hold ECOSOC special consultative status at the UN. www.tdpf.org.uk Our vision An end to the war on drugs and the establishment of an effective system of regulation that promotes health, peace and security, sustainable development and human rights Our mission We will inspire countries to explore and establish the legal regulation of drugs Transform Drug Policy Foundation is a UK-registered charity (#1100518) and limited company (#4862177) Contents How to Regulate Cannabis: Introduction 13 ­ • About this guide 15 Section 1 Foundations 17 • Political context 17 • Aims and principles of effective cannabis regulation 21 • How do we know regulations are fit for purpose? (box) 24 • A spectrum of policy options available 28 • Legal regulation of cannabis markets ˛ what it is and isn»t 31 • Summary of cannabis regulation models 32 • Learning from the successes and failings of alcohol and tobacco regulation 41 • Getting the balance right 43 • Moving forward given what we know, and what we don»t know 44 • Key conclusions and recommendations 46 Section 2 The practical detail of regulation 51 a Production 51 • Summary 51 • Licensing 54 • The Borland ‘Regulated Market Model’ (box) 5 7 • Quality control 59 • Security 61 • Production limits 63 • Smaller-scale production 64 • Spain»s cannabis social clubs (box) 65 • Home growing 68 • Production of cannabis for export 72 b Price 74 • Summary 74 A Practical Guide 7 • Price controls 76 • Impact of legal cannabis prices on the illegal market 80 • Displacement effects of relative price changes 83 c Tax 86 • Summary 86 • Tax options (box) 87 • Tax revenue research and estimates (box) 90 d Preparation and method of consumption 93 • Summary 93 • Preparations 96 • Methods of consumption 9 7 • Recommendations 104 e Strength/potency 114 • Summary 114 • Recommendations 121 f Packaging 125 • Summary 125 • Child resistant packaging 126 • Tamper-proofing 129 • Information on packaging, and packaging design 129 • Packaging information (box) 132 g Vendors 133 • Summary 133 • Socially responsible service training 135 • Shared responsibility between vendor and consumer 138 • Online vendors 139 8 How to Regulate Cannabis: h Purchasers 140 • Summary 140 • Age restrictions on sales 142 • Preventing underage sales 144 • The limitations of age controls 146 • Rationing sales 147 • Purchaser licences/membership schemes 148 • Proof of residency with purchase 150 • Permitted locations for use 150 i Outlets 151 • Summary 151 • Location and outlet density 153 • Appearance and signage 154 • Opening hours 157 • Sale of other drugs 157 • Responsibility for regulatory oversight 158 j Marketing 159 • Summary 159 • Lessons from the regulation of tobacco marketing 161 • Tobacco marketing 162 • Lessons from the regulation of alcohol marketing 164 • Article 13 of the Framework Convention on Tobacco Control 165 • Legal or political constraints on marketing controls 166 • Current cannabis advertising, promotion and sponsorship (CAPS) regulation around the world (box) 168 k Institutions for regulating cannabis markets 169 • International 171 • National government 172 • Local/municipal 174 A Practical Guide 9 Section 3 Key challenges 175 a Cannabis-impaired driving 175 • Summary 175 • Combined use of alcohol and cannabis (box) 179 • Defining and testing impairment 180 • Behavioural assessments 181 • Zero tolerance laws 182 • Fixed threshold limits 183 • Blood testing 186 • Drug testing ˛ different fluids, different results (box) 187 • DUIC and opposition to reform 190 • Recommendations 191 b The interaction of regulatory systems for medical and non-medical uses of cannabis 195 • Summary 195 • Discussion 195 c Synthetic cannabinoids 199 • Summary 199 • Risk profile 201 • Prevalance of use 202 • Regulatory response 203 d Cannabis tourism 205 • Summary 205 • Discussion 206 10 How to Regulate Cannabis: e Cannabis and the UN drug conventions 211 • Summary 211 • Introduction 215 • Background to international cannabis controls 216 • Lessons and ways forward 221 • Options for change 227 1. Treaty reform that applies to all signatory states, requiring consensus approval 231 2. Treaty reform that applies to all signatory states, requiring majority approval 234 3. Treaty reform that applies to a group of states 235 4. Treaty reform that applies to individual states 237 • Implementing cannabis regulation in situations of treaty non-compliance 241 • Side-stepping or denying issues of non-compliance 241 • Discussion and recommendations 246 • Further reading 250 Appendices 251 1 Cannabis regulation around the world 252 2 Further information and contacts 260 Acknowledgements 266 A Practical Guide 11 How to Regulate Cannabis: Introduction This is the second edition of our guide to regulating legal markets for the non-medical use of cannabis. It is for policy makers, drug policy reform advocates and affected communities all over the world who are seeing the question ‘Should we maintain cannabis prohibition?’ moving to ‘What will the regulation framework that replaces prohibition look like?’ This guide builds on Transform’s many years exploring and promoting effective regulation models as alternatives to prohibition. It arrives in a very different world from our landmark 2009 publication After the War on Drugs: Blueprint for Regulation. The cannabis regulation debate is now part of the political mainstream, with multiple jurisdictions at the city, state and country levels , considering, developing and implementing a range of regulated market models for cannabis. These include Spain’s non-profit ‘ cannabis social clubs, commercial enterprises in the US and the Netherlands, and Uruguay’s more government-controlled model. Since the first edition of this guide was published, cannabis reform around the world has continued to accelerate. Two more US states have legalised (and many more are poised to follow, notably including California), Jamaica has legalised cannabis for industrial, medical and religious purposes, and Canada has joined Uruguay in legalising at a national level. This second edition of the guide has a number of updates - including the latest information and analysis from these emerging cannabis policy innovations around the world. For a summary of key regulation models from around the globe see the table on p.252. Transform, working with other colleagues, has produced this guide to help those engaged in cannabis policy through the key practical challenges involved in developing and implementing an effective regulation approach A Practical Guide 13 aimed at achieving the safer, healthier world we all wish to see. A world the so-called ‘war on drugs’ has conspicuously failed to deliver. How to Regulate Cannabis: About this guide The social, political, economic and policy landscape of the many jurisdictions approaching this issue vary widely, and each will need to tailor their policy responses and regulatory models accordingly. So rather than lay out a prescriptive set of regulations detailing a ‘one-size-fits-all’ model, this guide explores the major issues that need to be considered, and the pros and cons of a range of models and responses. It makes broad recommendations that are flexible enough to help those interested in cannabis regulation to develop an approach appropriate to their local circumstances. • Section 1 provides the foundation for a regulatory approach, beginning with the changing political context and ending with some key conclusions and recommendations • Section 2 tackles the detail of how to regulate the various aspects of a cannabis market, including key challenges and broad recommendations for best practice • Section 3 focuses on specific cannabis-related issues that run parallel to wider market regulation questions, nationally and internationally • Appendices include a table comparing key models for cannabis regulation including Uruguay, California, Washington, Colorado, The Netherlands and Spain A Practical Guide 15 How to Regulate Cannabis: Section 1 Foundations Political context The debate around the legalisation and regulation of cannabis has rumbled on ever since the drug was first prohibited. But it is finally nearing its end point. Support for a punitive prohibitionist approach is waning rapidly, while