Oregon defies federal prohibition with proposed law to export surplus cannabis

A cannabusiness association, the Craft Cannabis Alliance, led by founder Adam Smith, is currently working with Oregon legislators to draft legislation that would allow the state to export its surplus cannabis to other states, an activity that is strictly forbidden under federal prohibition.

The situation on the Oregonais market

The state of Oregon's legal cannabis market (which began selling recreational cannabis in 2015) is could not be more chaotic. Overproduction far exceeds demand, and has caused prices to fall steadily in recent years. Since legalization, illegal production has flourished due to a lack of regulation, and overproduction in Orégon feeds the black market in neighboring states.

In other states, on the other hand, it's demand that's too high, and production that's not calibrated. Interstate trade could thus help to redress the balance, and the surplus cannabis from Oregon could be redistributed where it is lacking. This is the idea behind the the Craft Cannabis Alliance. The proposed law seeks to legalize the export of Oregon cannabis, but runs into a major problem: interstate cannabis trade is completely illegal under federal law.

Getting around prohibition

Although states have been given the right under Obama to legalize cannabis and its trade within their borders, interstate commerce remains a federal responsibility, and the current classification of cannabis as an illicit substance under schedule 1 (the most restrictive level of the list of controlled substances) prohibits this trade. Any trade in cannabis beyond the borders of states where it is legal is de facto considered to be drug trafficking.

The idea behind this proposed law is to circumvent federal prohibition by entering into pacts with the governors of other states where cannabis is legal. The problem is that by agreeing to such a pact, the associated states also expose themselves to federal persecution. According to Kevin Sabet, president of the anti-legalization group Smart Approaches to Marijuana: «I don't think any state will agree to partner with Oregon. It looks like a desperate attempt to wipe out the illegal production that has flourished in Oregon since legalization. The state should focus on ways to reduce demand and overall production.».

The proposal is likely to be presented to the Oregon congress this year. This isn't the first time an initiative of this kind has taken place in Oregon: a similar bill, Bill 1042, failed in 2017. Among those supporting the initiative are state senators Floyd Prozanski and D-Eugene. The latter has stated that he would like to take up certain elements of this proposal. The ambition is to allow exports in 2021. Perhaps by then federal laws will have moved. Time will tell. In the meantime, this bold proposal is unlikely to find takers, given the risks governors run by violating federal law.