MARIJUANA VOTE

Ahead of state election, Norman business owners, experts forecast increased entrepreneurship, tax funds

TAYLOR JONES taylor.p.jones-1@ou.edu he legalization of marijuana was nothing but a pipe dream in 2016 when Ward 7 Norman City Councilmember Stephen Holman faced seven drug charges, including a felony.

But in October, Gov. Kevin Stitt set a state election for March 7, 2023, for Oklahomans to vote on legalizing recreational marijuana for people 21 and older, which Norman business owners and a cannabis business expert say would increase state revenue and local businesses.

If State Question 820 passes, marijuana sales would be subjected to a 15 percent excise tax on top of the standard sales tax. All revenue generated would go toward funding local municipalities, the courts system, public schools, drug addiction treatment programs and the state’s general revenue fund, according to Stitt’s executive proclamation.

Before State Question 778 legalized medical marijuana in Oklahoma in 2018, Norman headshop business owners faced opposition. Holman recounted the massive controversy between the Norman Police Department and the Friendly Market, a Norman store that, at the time, only sold glass pipes and non-cannabis material.

Holman, who has managed Friendly Market since fall 2015, said he and store owner Robert

Cox were charged with multiple counts of misdemeanor paraphernalia possession and a felony for acquiring “drug money,” after NPD raided their store twice due to a complaint that the store’s glass pipes were drug paraphernalia.

Local donations kept the store open for six months following the two raids near the end of 2015, Holman said.

“People came to Friendly Market just to buy stuff and to be supportive,” Holman said. “It was right around Christmas, and … the community just felt it was so absurd.”

When medical marijuana was legalized, Holman said Cox created two separate legal entities for Friendly Market — a dispensary and a gift shop — so anyone could go into the store to purchase items that did not require a medical card.

“We didn’t want to be in a situation where we’re telling our customers, ‘OK, starting tomorrow, if you don’t have a medical card, you can’t come in anymore to Friendly Market to get other things that aren’t cannabis,’” Holman said.

Holman said the dispensary business is separate from the rest of the shop, allowing Friendly Market to retain previous customers and accommodate new ones in accordance with state laws.

He said State Question 820 will likely alter how the store conducts business but is unsure if it will increase foot traffic.

After the ensuing legal battle, the Oklahoma Supreme Court ruled in favor of Friendly Market in 2017, returning items valued at $15,000.

“A basic assumption by many might be that if it’s legalized recreationally, there’ll be more business. There’ll be more people consuming cannabis,” Holman said. “I’m not necessarily convinced that’s true because of the low threshold to get a medical card in Oklahoma. My assumption is a vast majority of people in Oklahoma that consume cannabis or are interested in consuming cannabis have a medical card.” business degree program, said the excise tax increase proposed by State Question 820 would match Colorado’s marijuana revenue.

Goolsby said revenue generated from the Colorado excise tax goes toward school repairs and law enforcement, especially for youth.

In addition to the increased revenue provided by the proposed 15 percent excise tax on recreational marijuana, Goolsby said State Question 820 could open more opportunities for businesses across Oklahoma.

“Individuals who might decide to go into a more retail market will find they don’t need medical as much, and they can stay with the retail market,” Goolsby said. “You might see an uptick, initially, with individuals trying to look at what their opportunities are, still, in the medical field. Then, as time progresses, they might switch into the retail market field.”

Holman also said the revenue generated by the proposed increase in excise tax would be good for the state, especially in towns like Norman.

In Oklahoma, the sales and use tax is the largest source of revenue, according to the Oklahoma Policy

Since July 2021, Oklahoma has collected over $111 million in marijuana sales tax revenue, which goes to entities like the Oklahoma Medical Marijuana Authority for operating costs, the state’s general revenue fund for education, and a drug and alcohol rehabilitation fund, according to the Sales Tax Handbook.

Applications for medical cannabis permits from patients and commercial vendors have generated $18.2 million in combined revenue, according to the Oklahoma Medical Marijuana Authority.

“Any new business that a main street in a small town in Oklahoma can get, it’s going to be good for them,” Holman said.

Goolsby said the creation of future developments is another benefit of increasing the marijuana market, like improved manufacturing practices, which will not only benefit the cannabis industry, but also other industries across the state.

Since State Question 820 proposes that only currently licensed medical stores are eligible for retail sales of marijuana, Goolsby said dispensaries in Oklahoma should not be concerned about a change in their customer base.

Chelsea Cossey, owner of The Grateful Bud Dispensary in Norman, said although she thinks legalizing State Question 820 will be beneficial for business and public opinion on marijuana, she doesn’t plan on immediately expanding into a recreational market.

“(Medical marijuana) is where my heart is,” Cossey said. “I’m not saying that I wouldn’t, because I definitely think that could help sales, but my passion in it is the medical side.”

Cossey said she and her family became involved in the medical marijuana market when her 5-year-old nephew was diagnosed with seizures. Since using CBD, Cossey said her nephew is now seizure-free and off all other pharmaceuticals.

The Food and Drug Administration approved one CBD product, a prescription drug used to treat seizures associated with LennoxGastaut syndrome, Dravet syndrome and tuberous sclerosis complex in individuals 1 year or older, according to its website. According to the FDA, there are many unanswered questions about the science, safety and quality of products containing CBD.

Little is known about the long-term impact of marijuana use by people with health and age-related vulnerabilities, including older adults or people with cancer, AIDS, cardiovascular disease, multiple sclerosis or other neurodegenerative diseases, according to the National Insitute on Drug Abuse.

Holman said his main concern about State Question 820 is the negative stigmas surrounding marijuana.

“I expect a negative campaign against it just to get people’s fear about it riled up,” Holman said. “In the end, what I’ve witnessed is that medical marijuana has generated over 10,000 new businesses in the state of Oklahoma since it was created.”

According to the Oklahoma Medical Marijuana Authority, there are 12,009 licensed cannabis businesses in Oklahoma. Holman said the number of jobs the cannabis market provides in Oklahoma proves expanding marijuana sales would be beneficial to the state.

Holman also said many Friendly Market customers expressed they are more open to marijuana due to its legality.

Gemma Ohlemacher, Washington state resident and Seattle Film Institute student, said legalizing recreational and medical marijuana in the states she has lived in has positively impacted how people view marijuana.

“There’s a lot of fear with people who see marijuana as something you do when you’re getting wasted in college or whatever,” Ohlemacher said. “It’s not that different from alcohol. I think that once people recognize that it’s actually safer than alcohol in a lot of ways, then I think people stop worrying about it.”

The Centers for Disease Control and Prevention reports that nearly 88,000 alcohol-related overdose deaths occur each year. According to the American Addiction Centers website, the number of deaths caused by marijuana is almost zero, although it is not safe to use either substance while driving or pregnant.

Ohlemacher has lived in both Washington and Michigan, where she worked at a dispensary called People’s Choice. Ohlemacher said before recreational marijuana was legalized in Michigan, medical marijuana card and license regulations made it difficult to buy or sell, but not much safer in terms of health.

“Once recreational (marijuana) was legalized, suddenly everybody’s aware of it and it becomes much more normalized,” Ohlemacher said.

Holman said while reviewing marijuana laws, the state should also consider the cases of people currently incarcerated for cannabis possession before it was legalized.

Approximately 4,500 adults were arrested in Oklahoma for possession of marijuana in 2020, according to an Oklahoma State Bureau of Investigation crime report. Overall, about 1,079 of 100,000 Oklahoma residents are incarcerated, according to a Prison Policy Initiative study.

“It’s borderline unethical that we have a multibillion-dollar industry in the state of Oklahoma now and all these new businesses — it’s great, but people are locked up for selling small amounts before it was legal,” Holman

Holman said one benefit of passing State Question 820 might be turning attention to these marijuana-related convictions and criminal justice reform in Oklahoma.

Cossey said she is eager to see how legalizing recreational marijuana will help the cannabis market.

“The more people normalize cannabis, the less stigma there will be,” Cossey said. “It’s a lot safer. It’s not a miracle or anything, but it’s very effective seeing how much it’s helped my patients.”

Goolsby said legalizing recreational marijuana would not only improve state revenue, but it would also positively impact business owners.

“Increasing or creating a recreational market creates better leaders,” Goolsby said. “It creates not only individuals who might have better economic opportunities that result from this … but it also creates individuals who are going to take this product they’re attached to or they have a particular drive to and learn things.”

Early voting for the March 7 election will begin March 2-3 from 8 a.m. to 6 p.m. Polls will open again March 7 from 7 a.m. to 7 p.m.

This story was edited by Jillian Taylor, said. “They broke the law then, and they were arrested and incarcerated for it, but now it’s not illegal. What is the benefit to us to keep them locked up?”

According to a report by the United States Sentencing Commission, between 1992 and 2021, 6,577 U.S. citizens were convicted of marijuana possession at the federal level. As of January 2021, none of them remain in federal custody.