Comparing legal marijuana systems in
colorado and washington
Colorado
Legalization Vehicle Amendment 64
Passed 55.3 – 44.7, November 6, 2012
Rules required by July 2013, delivered
on time (Emergency rules promulgated
Timing on June 28, 2013; Permanent rules
promulgated Sept. 9, 2014), first stores
opened January 2014.
Means of Legal
Only by another constitutional amendment
Change
Administering Department of Revenue, Marijuana
Agency Enforcement Division (MED)
Age requirement for
21 and over
legal possession
Home grows Up to 6 plants, with 3 flowering at any
permitted? time
DUI 5 nanogram per milliliter limit for driving
Washington
Initiative 502
55.7 – 44.3, November 6, 2012
Rules due December 2013, promulgated
October 2013, but licensing process slower
than anticipated; first grower licenses
issued in March 2014, first stores licensed
and opening in July 2014.
Can be amended by normal legislative
action
Liquor Control Board
21 and over
Prohibited
5 nanogram per milliliter limit for driving
25 percent excise tax on sales from grower
to processor, processor to retailer, and
retailer to customer; plus normal local
taxes apply.
Average Market Rate for Flower: $1,876/
Yet to be seen, expected to be much
After-tax price of
pound. After tax cost depends on the
higher than still-unregulated medical
legal marijuana?
locality.
marijuana prices in the state.
Complicated allocation: first money goes
Marijuana Tax Cash Fund; Marijuana Cash
to fund administrative costs, various
Fund. Monies used to fund MED, school
research projects and prevention or
Where does construction, expanded education and
substance abuse programs; later money
tax revenue go? prevention efforts, law enforcement.
split between more marijuana-specific
Revenue sharing with local governments
programs, general healthcare spending,
that allow marijuana sales.
and the state’s general fund.
Growers, processors, and retailers must
Vertical Integration for first 9 mos.-2 yrs
(depending on locality). Grower/processor/ be licensed. No vertical integration
Licensing Regime retailer licensed by MED. Medical users
allowed: growers and processors cannot
be retailers, though joint grower-processor
must register through Department of
licensed issued.
Public Health and Environment.
Unregulated, largely untaxed medical
Builds on top of existing system, which
dispensaries remain in unresolved legal
Treatment of began to be regulated beginning in 2009
limbo, for now enjoy non-enforcement;
Pre-existing and which remains in place; privileges
legislature expected to provide some
Medical MJ System incumbents of the old system, who get
resolution or merger with I-502 system in
first access to new recreational market.
coming months.
Has same measures as CO, and high hopes
Seed to Sale Tracking System; Limits
that tight control over licensing and rather
on quantities purchased/possessed;
deliberate (i.e., slow) roll-out will allow
Diversion Prevention
Education campaigns; video surveillance
more effective prevention of cross-state
requirements.
diversion.
Controversial: preemption of local drug
Counties, municipalities can opt out. Local
laws, but some localities seeking to use
governments can regulate the number of
zoning laws to effectively exclude stores
grow operations and dispensaries. Local
were encouraged by non-binding State
Local control governments can assess additional taxes.
Attorney-General opinion. Legal battle
Local governments can issue zoning and
to follow. As of now, there is no revenueother ordinances regulating production
sharing with local governments, so many
and consumption.
cities may feel incentives are to opt out.
Extensive criminal background checks for
Extensive criminal background checks
all licensees; Seed to Sale tracking system;
Regulatory Features
of all licensees; extensive product safety
Vertical integration (initially); increasing
testing
product & potency testing
Yet to be seen, but only projected to be
As of 1/1/2014, there were licenses
Total size of legal
about a quarter of the total market for
distributed for 178 marijuana cultivation
market
marijuana in Washington after a year of
facilities and 136 retail dispensaries.
full-scale operation
State commissioned a survey of market
502 mandates cost-benefit analysis
demand. Separate revenue analyses/
conducted by Washington State Institute
projections conducted by the Department
Official Analysis
for Public Policy (WSIPP), with preliminary
of Revenue, Governor’s Office of State
report in 2015 and subsequent reports in
Planning and Budgeting, and the Colorado
2017, 2022, and 2032
Legislative Council
Slow implementation; low projected legal
supply when stores do open; frustration
Public use rules vague; homegrows
that medical dispensaries get no ability
Common Complaints creating additional local problems;
to make transition to legal recreational
paperwork delays at MED.
system; continued legal ambiguity for
medical marijuana
15% excise tax on cultivator; 10% special
Tax Structure sales tax; 2.9% standard sales tax;
additional local taxes can be levied.
May 2013 Brookings/WOLA comparison:
http://www.brookings.edu/research/papers/2013/05/21-legal-marijuanacolorado-washington
http://www.brookings.edu/~/media/research/files/papers/2013/05/21%20
legal%20marijuana%20colorado%20washington%20walsh/qa%20legal%20
marijuana%20in%20colorado%20and%20washington%20web.pdf
Chart by Philip Wallach & John Hudak