U.S. Attorney: Oregon has a major marijuana overproduction issue

PORTLAND — The black marketplace for marijuana is flourishing in Oregon and an oversupply of weed from growers is flowing to greater than two dozen states the place pot stays unlawful, a prime federal regulation enforcement official stated Friday.

U.S. Attorney Billy Williams stated the state has a “significant overproduction” drawback and that he would prioritize enforcement of overproduction, interstate trafficking, organized crime and instances involving underage marijuana use and environmental injury from illicit pot farms.

The feedback, which echoed these he made earlier this yr, have been included in a memo that outlines his plans for implementing federal drug legal guidelines in a state with legalized marijuana. Williams is the primary U.S. lawyer to issue such steerage after Attorney General Jeff Sessions rescinded the Obama administration’s steerage on pot-friendly states in January.

“As the primary law enforcement official in Oregon, I will not make broad proclamations of blanket immunity from prosecution to those who violate federal law,” he wrote.

Sessions requested federal prosecutors to find out marijuana insurance policies for his or her districts, prompting Williams to convene a summit in Portland earlier this yr to debate the state’s oversupply drawback. At the time, Williams additionally penned an editorial that described a glut of marijuana making its means out of the state illegally and referred to as for motion by native and state leaders.

Those within the marijuana business reacted with cautious optimism to the memo and stated it didn’t appear to vary federal marijuana coverage in Oregon.

The state at present has almost 1 million kilos of marijuana flower in stock, a staggering quantity for a state with a inhabitants of four.1 million individuals. That doesn’t embrace 350,000 kilos of marijuana edibles, tinctures and concentrates.

The retail worth for a gram of pot has fallen about 50 % since 2015, from $14 to $7, in line with a report by the Oregon Office of Economic Analysis. Legal growers and retailers alike have felt the sting.

The true quantity of marijuana leaving the state is tough to pin down, stated Beau Whitney, a senior economist at New Frontier Data, a nationwide hashish analytics agency.

The state has 21 million sq. ft of authorized marijuana rising and a $1 billion market statewide, he stated. Of that, about one-third — or about $300 million — is diverted to the unlawful market inside the state, however it isn’t clear how a lot is leaving Oregon, he added.

The quantity being grown legally is “more than enough to handle all of the demand in Oregon and so to me, it’s no wonder that there’s excess supply in the space. What people choose to do with it, it’s tough to estimate,” Whitney stated.

“They’re saying, ‘If you’re exporting, then we’re going to come down on you.’”

To that finish, Williams stated Oregon must do a higher job at gathering knowledge concerning the marijuana business and dedicate extra assets to enforcement and oversight. Federal prosecutors have finite assets in Oregon, he wrote, and they’ll “strategically consider” which instances to pursue, in some instances favoring asset forfeiture and different civil punishments over legal prosecutions.

Entrepreneurs who’ve efficiently navigated the oversupplied market stated they hoped Williams’ strategy wouldn’t jeopardize their state-legal companies. William Simpson, founding father of Chalice, will quickly open his seventh retail retailer in Oregon and is hoping to increase into California, Nevada and Canada.

“I’m fearful with this oversupply it basically puts a lot of people in a desperate situation … and it forces them to do illegal things. What that’s going to do is bring a microscope by the federal government over the state of Oregon,” he stated.

“It can put the whole thing in danger. I think we’re past that point, but we definitely don’t want to give them a reason to rethink that.”


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