A 21st Century Approach to Regulating Cannabis.

1. Niall Neligan, Barrister-at-Law
Lecturer, Technological University, Dublin
Changing perceptions to change the law
A 21st Century Approach
to Regulating Cannabis
CBD
CBND
CBT
CBC
THC
CBN
CBL
CBE

2. Research Profile
Niall Neligan, Barrister-at-Law
Lecturer, School of Law, Languages, & Social Sciences, Technological University, Dublin
Visiting Lecturer, Smurfit Graduate School of Business, University College Dublin
Research and publications
Neligan, “Medical Cannabis and the Law in Ireland – A critical evaluation of Doctor -
Patient access under existing licensing rules and the Government’s proposed enhanced
access scheme.” Medico-Legal Journal of Ireland(Thomson Reuters) Autumn 2018
edition.
Neligan, “A 21st Century Approach To Regulating Cannabis.” Public Policy Document.
(June 2018)
Controlled Drugs & Harm Reduction Bill 2017 (Seanad Eireann)
Neligan, “Legal Controls on the Production, Supply & Sale of Controlled Substances in a
Post-Prohibition Era (Bar Review) 2019
Ph.D Research Proposal - “Federal Prohibition of Marijuana in the United States under the
Controlled Substances Act 1970 and Deconstruction at the State Level, a critical
evaluation”

3. You can only delay
the inevitable…
…delay has a cost

5. Public outrage in the U.K. following the confiscation of Billy
Caldwell’s medication, sparked a national conversation which
ultimately led to the British Government announcing that
specialist doctors could prescribe medical cannabis for a limited
number of conditions.

6. Minister of Justice and Constitutional Development and
Others v Prince [2018] ZACC 30.
On the 18th September 2018, the South African Supreme
Court of Appeal upheld an earlier High Court decision which
declared that certain provisions of the Drugs Act that prohibits
the use and cultivation of cannabis by an adult in private for
personal consumption was declared as unconstitutional. The
provision in the Medicines Act that criminalises the use and
possession of cannabis by an adult in private for personal
consumption was also declared as unconstitutional.
Adults are now permitted to permitted to use, possess and
cultivate cannabis in private and for personal consumption
only. The judgment makes it clear that “In private” is not
confined to ones “home” or private dwelling.

7. October 17th 2018, Canada becomes the 2nd Country to Regulate
cannabis for adult use after the Cannabis Act 2018 comes into force

8. Mexico - 31st October 2018
The Mexican Supreme Court ruled that the
prohibition of cannabis was unconstitutional - as it
violated the ‘fundamental right to the free
development of the personality’. As the fifth such
judgement, under Mexican law, this now means that
it is binding on all judges nationally - effectively (de
facto) legalising the personal use, possession,
private cultivation, and sharing of cannabis amongst
adults.

9. Michigan 6th November 2018
Michigan became the 10th state in the U.S.
regulate cannabis since 2012 when voters adopted
Proposal 1 which will come into force once the
ballot is certified at the beginning of December.
Separately voters in Utah and Missouri voted in
favour of regulating medical cannabis making them
the 32nd and 33rd states respectively to do so

10. Comparative
Analysis
…a legal and economic evaluation of regulation in
Colorado and the continuing cost of prohibition in Ireland

11. Colorado

12. 2012
November 6th 2012, Colorado & Washington State become the first two
jurisdictions to legalise cannabis for adult use in the world

14. IRELAND COLORADO
Population 4,773,000 5,607,154
GDP $304 Billion $323 Billion
Illicit Market 2009 $700 Million $700 Million *
Illicit Market 2018 $1 Billion $0

15. 2013
Dail Eireann rejects the Regulation of Cannabis Bill by 111-8
The Regulation of Cannabis Bill 2013 was based on Initiative 502 Washington State 2012

16. $1,157,781,963
Total value of cannabis sales in Colorado in 2018 Jan -Sept
Source - Colorado Department of Revenue 2018 (updated November 2018

17. $5,651,802,649
Total cannabis sales in Colorado since regulation commenced in 2014
Source - Colorado Department of Revenue April 2018 (updated November 2018)

18. Calendar Year Total Sales Total Sales to date
2014 $683,523,739 $683,523,739
2015 $995,591,255 $1,679,114,994
2016 $1,307,203,473 $2,986,318,467
2017 $1,507,702,219 $4,494,020,686
2018
(Jan - Sep) Q3
$1,157,781,963 $5,651,802,649
Source - Colorado Department of Revenue (updated November 2018

19. $862,279,113
Revenue generated by Colorado State Government from Regulation 2014-2018
Source - Colorado Department of Revenue to 2018 Q1

20. Calendar Year Total Revenue Total
2014 $67,594,323
2015 $130,411,173
2016 $193,604,810
2017 $247,368,473 $683,978,779
2018 (Jan - May) $109,002,969 $792,981,748
Cannabis Tax Data
Source - Colorado Department of Revenue

21. €0.00
Revenue generated by the Irish State from cannabis prohibition

22. $225 Million
The amount which Colorado has given to Public Education programmes between 2015-18
Source - Colorado Department of Revenue

23. Source - Colorado Department of Revenue

24. Cannabis Revenue by State
Source - Drug Policy Alliance - Status Report on Marijuana Legalisation

25. 230,000
The number of people working in full-time and part-time work in the regulated
cannabis markets in the United States
Source: The Drug Policy Alliance

26. 18,500
The number of people working in full-time employment
in the regulated cannabis market in Colorado in 2018
Source: The Drug Policy Alliance

27. Cannabis Industry Employment Colorado 2015
Induced Jobs
2,581
Indirect Jobs
2,896
Direct Jobs
12,591
Source: MPG - The Economic Impact of Marijuana Legalisation in Colorado, October 2016

28. World Cannabis Price Index price per gram in €
Source: Seedo World Cannabis Price Index 2018

29. Cannabis price per gram in €

30. 2017 IRELAND COLORADO
Sales $1 Billion - Illicit $1.5 Billion - Legal
Tax Revenue $0 * $247,368,473 (+)
Price per gram $21.63 USD $7.79 USD
Jobs 0* 18,500 +

31. Legal Authorities for Medical and Licensed Marijuana
Businesses
Medical
Colorado Constitution: Article XVIII, §14
Colorado Revised Statutes: 12‐43.3‐101 et seq.
Code of Colorado Regulations (MED Rules) 1 CCR 212‐1
Retail
Colorado Constitution: Article XVIII, §16
Colorado Revised Statutes: 12‐43.4‐101 et seq.
Code of Colorado Regulations (MED Rules) 1 CCR 212‐2
Colorado Laws

32. In 2012, Colorado voters adopted Section 16 of Article XVIII of the
state Constitution ("constitutional amendment") regulating the sale and
use of marijuana by persons 21 years of age and older in the same
manner as the sale and use of alcohol.
The constitutional amendment permits persons 21 years of age and
older to possess up to one ounce (28 grammes) of marijuana and up to
six plants, only three of which may be flowering. As of 1st January
2018, all residences will be limited to a maximum of 12 plants unless
certain requirements are met. The constitutional amendment specifically
states that it does not affect the legal provisions regarding medical
marijuana.
Cultivation, sale, and possession of marijuana for adults age 21 and
older is still illegal under federal law. As a result, prosecution of
marijuana crimes may shift to the Colorado federal courts within the
available resources of the U.S. Attorney's office. That prosecution could
include possession or use of marijuana and operating marijuana
businesses made legal by Amendment 64.

33. 15% excise tax on wholesale retail marijuana:
$40 million to school construction
Remainder to Public School Fund
15% sales tax on retail marijuana:
10%: Local government
90%: State government (beginning 2018-2019) will be split three
ways: (1) $30 million off-the-top to the Public School Fund; (2) 28.15%
to the General Fund; and (3) 71.85% to the Marijuana Tax Cash Fund
Regular 2.9% state sales tax on medical marijuana
Marijuana Tax Cash Fund, which funds health care, monitoring health
effects of marijuana, substance abuse prevention, treatment, etc.
Cannabis Taxes Colorado

35. Current State of Regulation
North America

36. Federal v State
• Cannabis is still a Scheduled 1 Drug Prohibited under
The Controlled Substances Act in the United States.
Its cultivation, distribution and possession is
prohibited under 21.U.S.C. § et seq
• Ogden Memo 19th October 2009 - declared medical
cannabis sales in states that have legalised it to be a
low priority for law enforcement and prosecutors.
• Cole Memo 29th August, 2013 - set out the Obama
administrations prospective
• Prevent the distribution to minors
• Prevent revenue from the sales going Organised
Criminal Gangs and Cartels.
• Prevent the diversion of cannabis from states where it
is legal under stats law going to others where it is not.
• Prevent state-authorised cannabis activity from being
used as a cover or pretext for trafficking of other
illegal drugs or other ilea activity

37. Federal v State
• Preventing violence and the use of firearms in the
cultivation and distribution of cannabis
• Preventing drugged driving and the exacerbation of
other adverse public health consequences
associated with cannabis use.
• Preventing the growing of cannabis on public lands
and the attendant public safety and environmental
dangers posed by cannabis production on public
lands.
• Preventing cannabis possession or use on federal
property.
• After the memo was issued, most federal
prosecutions were halted unless they met the listed
criteria.
• Cole 2 Memorandum - 14th February 2014
• US Attorney General Jeff Sessions rescinded the
Cole Memo on the 4th January 2018

38. • The withdrawal of the Cole Memo gives federal authorities the authority to prosecute individuals and businesses that grow,
distribute, and sell marijuana for recreational purposes, and those who assist them or manage their money in states that have
legalised those activities.
• The Rohrabacher-Blumenauer Amendment, which has been part of the federal budget since 2014, still prohibits the DOJ from
spending any funds to interfere with the implementation of state medical marijuana laws.
• The DOJ unlikely to begin prosecuting marijuana growers and distributors who are operating in compliance with state law.
• The DOJ will likely prosecute the most egregious violators of state law which means that the stakes are higher for those
individuals and companies.
• Federal Criminal Prosecution and Asset Forfeiture - 21 U.S.C. § 841
• Standalone Civil Asset Forfeiture - 21 U.S.C. § 881. Federal civil laws allow the federal government, if it satisfies an evidentiary
burden lower than what is required in a criminal case, to forfeit any real estate or personal property (including equipment,
cash, cars, etc.) that constitutes proceeds of marijuana sales or that was used to facilitate the marijuana-related activity.
• Warning Letters: Close or Else: Another less severe enforcement action that DOJ could resurrect for a less egregious violator
is its practice of sending a warning letter to pressure a marijuana business to close
• Risks to Third Parties: Landlords, Financial Institutions, Software Companies
What this means?

39. Share of U.S. Population with Legal Cannabis
Medical & Adult
Use Cannabis
Medical
Cannabis
No Legal
Cannabis

42. Canadian Laws
• Bill C-45 “An Act respecting cannabis and
to amend the Controlled Drugs and
Substances Act, the Criminal Code and
other Acts
• Introduced to the House of Commons 13th
April 2017
• Passed by the House of Commons 27th
November 2017.
• Passed by the Senate June 19th 2018
• Received the Royal Assent June 21st 2018
• Due to come into force on the 1st July 2018
• Trudeau Government has not revealed how
it plans to stay in compliance with UN
Conventions. Most likely, it will ignore them.

46. –Johnny Appleseed
“Type a quote here.”
Regulated Nations North & South America 2018

47. California LawProposition 64 - Adult Use of Marijuana Act
Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)

49. California
UK
France
India
Canada
Ireland
0 Trillion 0.75 Trillion 1.5 Trillion 2.25 Trillion 3 Trillion
0.294
US$1.76
US$2.26
US$2.47
US$2.62
US$2.63
California is the 5th largest economy in the world with a GDP of $2.63 Trillion USD
Source: IMF

50. Estimated value of sales of medical and recreational cannabis in 2019
California
Canada
0Billion 1.5Billion 3Billion 4.5Billion 6Billion
US$3.87 Billion
US$5.58 Billion
Sources: Deloitte - “Recreational Marijuana Insights and opportunities”

51. California Laws
Proposition 64 - The Adult Use of Marijuana Act
Under this law, adults 21 and over may purchase, possess, and consume up to 28.5 grams of
cannabis in their private residence or in an establishment licensed for cannabis consumption. While
most criminal sanctions for cannabis were lifted immediately after the general election, licensing to
legally sell and produce recreational Cannabis began in January 2018. There are also new cannabis
taxes: a 15% excise and a cultivation tax.
The Medicinal and Adult-Use Cannabis Regulation and Safety Act
The Medicinal and Adult-Use Cannabis Regulation and Safety Act provides the general framework for
the regulation of commercial cannabis activity in California. This law requires anyone engaged in
commercial cannabis activity to be licensed, and allows local governments to control what activities
are permitted in their jurisdiction. As the lead agency in developing regulations for medical and adult-
use cannabis in California, the Bureau of Cannabis Control (BCC) is responsible for licensing
retailers, distributors, testing labs and microbusinesses. The BCC provides an online licensing
system where people can apply for a license, search for a license, or file a complaint. While the new
law requires medical cannabis dispensaries to obtain a new license, it generally leaves the existing
medical cannabis laws intact. One change to medical cannabis laws is that certain medical marijuana
sales are exempt from sales and use tax

53. Statute(s) Business & Professions Code Sections 26000, et seq.
Health & Safety Code Sections 11000, et seq.; 11357, et seq.; 11362.7, et seq.
Possession • Those 21 and over may possess up to 28.5 grams of cannabis, or up to 8 grams of concentrated cannabis.
It's an infraction for those under 21.
• Those 18 and over who possess more than 28.5 grams of cannabis, or more than 8 grams of concentrated
cannabis may be imprisoned in county jail for up to 6 months and/or fined up to $500.
Sale • Sale by someone who does not possess a license to sell cannabis is a misdemeanor, which can result in up
to 6 months in jail and/or fines up to $500.
• A person who engages in commercial cannabis activity without a license will be subject to civil penalties of
up to three times the amount of the license fee for each violation, with each day of operation constituting a
separate violation.
Additional
Limitations
There are additional limitations placed on smoking and possessing cannabis even if a person is over 21. The
limitations include (but are not limited to) smoking or ingesting cannabis in public, (except in accordance with §
26200 of the Business & Professions Code), smoking/ingesting while operating a vehicle, and possessing an
open container while operating or riding as a passenger in a vehicle.

54. Europe

59. “Incrementalism is
regulation for slow
learners….”
…delay has a cost

60. 16,626
Number of Controlled Drug Offences in Ireland 2017-18
Source: Central Statistics Office to Q1 2018

61. 73%
Of all controlled drug offences prosecuted in Ireland
are for possession for personal use only under S 3 Misuse of Drugs Act 1977

62. Source: Central Statistics Office
Drug Offences Ireland 2018
Other
4%
Possession
73%
Supply
23%
Supply Possession Other

63. 77%
Of all possession offences in Ireland
are for possession of cannabis for personal use only

64. Possession Offences 2018
MDMA
2%Heroin
5%
Amphetamines
5%
Cocaine
10%
Cannabis
77%
Source: European Drug Report 2017: Trends and Developments (EMCDDA)

65. 9,310
Approximate number of offences in Ireland in 2017 for
possession of Cannabis for personal use either as
a standalone offence or together with other recorded offences
Source: Central Statistics Office 2017

66. 56%
Of all controlled drug offences prosecuted in Ireland are for
possession of cannabis for personal use only
Source: Central Statistics Office 2018

67. Source: Central Statistics Office
Controlled Drug Offences
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
0.00 6,000.00 12,000.00 18,000.00 24,000.00
Controlled Drugs Cannabis Possession

68. Controlled Drug Offences 2017
56%
44%
Other Controlled Offences Section 3 MDA 1977-2017 Prosecutions of Cannabis for personal use

69. 11%
Of Ireland’s GDP is the Shadow Economy, 2016
Source: Leibniz Institute for Economic Research at the University of Munich, 2016

70. $700 Million
The estimated value of Ireland’s illicit market in cannabis in 2009
Source: Estimate based on value of seizures and current street prices in 2009

71. $1Billion
Estimated value of illicit market for cannabis in Ireland 2018
Source: Fweed 2018: Based on estimates of cannabis seized in 2017, Eurostat: Shadow Economy as a % of GDP and current street price index

73. Route Forward
Introduction of a new Regulation of Cannabis (Medical & Adult
Use) Bill - 2018-2019
Signed into law by April 20th 2020
Licenses issued by April 20th 2021
Regulated market operational by October 1st 2021
Strict rules governing license applications
- Restricted membership and ownership of Designated Activity
Companies with strict vetting procedures in place.
- Vetting procedures for Directors and Company Officers.
- Regular Compliance Audits.
- Annual Audits by the Revenue.

74. €1.5 Billion
Estimated value of the regulated market for cannabis in Ireland 2025

75. 15,000
Estimated direct jobs in the regulated cannabis economy in Ireland by 2025

76. €300,000,000 +
Estimated revenue for the state in a regulated market for cannabis in
Ireland by 2025

77. –George Canning
“Indecision and delay are
the parents of failure”

78. Delay has a cost

79. Niall Neligan
Barrister-at-Law