Drug Trafficking Could Increase Due to Oregon’s Legalized Marijuana

Thursday, August 20, 2015

Rebecca Randall, GoLocalPDX Contributor

Photo courtesy of Oregon HIDTA Program

The tension between severe federal treatment of cannabis and Oregon’s looser laws could be leading to drug trafficking, according to a federal drug report.

Legalization Might Facilitate Illicit Drug Trafficking

While methamphetamine and heroin top the threat list for the White House’s multi-agency High Intensity Drug Trafficking Areas (HIDTA) regional 2016 threat assessment, marijuana is third since it can easily be produced in Oregon and trafficked all over the U.S.

“More people will likely grow under the umbrella of legalization, and depending on how good they are they might end up with a whole lot more than they can use or give away… the more chance there will be for someone to pack it up and sell it to someone outside of the state of Oregon,” said Oregon HIDTA director Chris Gibson. “That’s a very simple scenario.”

The Oregon HIDTA region includes only 10 counties in Oregon where drug trafficking is most intense, as well as two counties in Idaho.

Marijuana has increased significantly in local production due to the medical marijuana program. In contrast, methamphetamine and heroin have much higher rates of violence and severe physical harm for users, according to the report. That’s really what concerns HIDTA the most, said Gibson. The agency is also focusing on cocaine and prescription drugs.

In a survey, 62 percent of local law enforcement officers consider methamphetamine—a drug categorized by the federal government as less dangerous than marijuana—to be the greatest threat. In the survey, 88 percent of officers said that methamphetamine is the drug that contributes the most to violent crime and 69 percent said it contributes the most to property crime.

Second to methamphetamine, heroin use and availability has been growing. Over half of law enforcement officers surveyed said that heroin availability has increased from 2014 to 2015. The number of people who admit to heroin use at prison intake has tripled since 2008, and the number of adults entering publicly funded treatment programs for heroin use has grown 55 percent since 2008.

According to the report, medical and recreational marijuana legalization has unintentionally pushed Mexico’s cannabis farmers to expand to heroin as more local grow programs have been established.

Since growing marijuana is legal in Oregon within certain perimeters, HIDTA’s goal “to eliminate domestic production, trafficking and use of… marijuana” is tricky in Oregon.

Though seizures of marijuana have dropped drastically in recent years, the report includes analysis linking out-of-compliance medical marijuana grows with the black market. Of the plants that were confiscated in 2014, 70 percent were connected to medical marijuana. The percent of seizures through the medical marijuana program has steadily grown to its peak in 2014.

Though there are limits to how much marijuana a patient is allowed to possess, caregivers can cultivate marijuana for an unlimited number of patients, meaning caregivers can possess thousands of plants and claim to be growing for legitimate patients.

Clackamas, Multnomah and Jackson counties are home to the most medical marijuana cardholders who have been suspects in DEA cases.

Oregon is central to marijuana trafficking—both as a pass-through state for pot from California or Washington and as a state of origin for marijuana sold in other states. Jackson, Josephine, Multnomah and Lane counties are most often the counties of origin for trafficked marijuana.

Shifting Attitudes

The HIDTA report reflects some uncertainty over what to expect as the retail market for recreational marijuana comes into full force next year. It attempts to apply lessons from Colorado and Washington, which have seen more drug trafficking out of state and more exploitation of the law for illicit growing, as well as increased public safety concerns, such as increased explosions at THC extraction labs and increased intoxicated driving.

That said, while HIDTA’s report reflects concern for drug trafficking, it shows a decrease in marijuana arrests and seizures in the last couple of years despite the high incidence of marijuana use in Oregon.

Another shift in tone from the federal government is the remarks made earlier this month by the federal Drug Enforcement Agency new acting administrator, Chuck Rosenberg, who told the press, “Heroin is clearly more dangerous than marijuana.”

In the current DEA classification system, marijuana is at the height of the list in Schedule I along with heroin and LSD. According to the Controlled Substances Act, drugs are categorized into five schedules according to potential for abuse, addiction and medical use. Ironically, the top priority for Oregon HIDTA—methamphetamine—is actually in the less severe category of Schedule II.

That said, shifting marijuana to another schedule doesn’t do a lot for the drug from the standpoint of HIDTA, which would still be concerned about interstate and international trafficking. It would, however, lessen penalties.

After Rosenberg’s remarks this month, Oregon Rep. Earl Blumenauer wrote a letter to U.S. Attorney General Loretta Lynch asking to support Rosenberg’s statement and reclassify marijuana under the Controlled Substances Act.

“We are in the midst of a revolution to reform and modernize marijuana policy in the United States. Four states and the District of Columbia have legalized adult use. Additionally, well over one million patients across the country now use medical marijuana at the recommendation of their physician to treat conditions ranging from seizures, glaucoma, anxiety, chronic pain and nausea. The federal government is woefully behind,” said Blumenauer.

Related Slideshow: Ten Things to Know About Marijuana Legalization in Oregon

Here are ten things you need to know now that pot is legal in Oregon.

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1) Drug testing will continue

Despite marijuana being as legally permissible as a pint of beer, many of the largest employers of Oregonians will continue to include marijuana in their employee drug screens.

Fred Meyer, one of the largest employers across the state, said the company plans to continue drug testing its Oregon employees regardless of the new law.

Melinda Merrill, Fred Meyer communications director, said the company employs truck drivers, heavy equipment operators and other positions that require drug screening.

“We have to make our employees safe,” Merrill said.

Companies that employ heavy equipment operators are required to buy insurance. Companies that employ workers who operate machinery while simultaneously employing workers who do not are sometimes offered a lower monthly deductible if they test all of their employees across the board, as opposed to only testing a portion.

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2) Your neighborhood dealer may be able to stay in business

The average price for marijuana in Oregon is among the lowest in the nation at sightly over $9 per gram, according to data collected by priceofweed.com.

The economy for recreational pot in Washington failed to gain the footing that was expected by some experts. The notion of Seattle being crowned as the new Amsterdam went up in smoke after consumers saw how the state’s taxes increased the price of marijuana - three joints can run a Washington customer $75, while a gram of the plant’s dried flowers cost around $30.

While the taxation in Oregon isn’t expected to bump prices that high, customers who have grown accustomed to the state’s high quality, low-price buds and hash oils may turn their noses up at even the slightest increase.

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3) Taxes on pot will be different than Washington and Colorado laws

Marijuana sold from licensed vendors in Oregon will carry taxes of $35 per ounce on marijuana flowers, $10 per ounce on all marijuana leaves and trimmings and a $5 tax on all immature plants or clones. The tax rates will be reevaluated every two years and adjusted for inflation. The revenue will be allocated to support government services - 40 percent will support public schools, 20 percent will support law enforcement, 20 percent will support mental health and 5 percent will support the Oregon Health Authority.

State-licensed vendors may still face obstacles, however, when it comes to their federal income taxes. Internal Revenue Section code 280E denies any tax deductions and credits for businesses that traffic any controlled substances that are prohibited under federal law.

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4) You can’t smoke up wherever you please

The law stipulates that use of marijuana, including injection, ingestion and inhalation of the drug is prohibited in public places. In other words, you won't constanty be seeing (or smelling) people lining sidewalks lighting up a joint.

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5) There are also restrictions on growing

No one is permitted to have more than four marijuana plants at a time - considerably less than the 12 plants that Washington residents are allowed to grow. The law also restricts plants being grown in public view.

Sorry, window-sill gardeners.

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6) Marijuana DUIs may be addressed in future legislation

Unlike the Washington law, which included attached regulations concerning driving impairment, Oregon’s law has more room for interpretation.

Driving under the influence of marijuana is classified as a class b traffic violation, which carries a presumptive fine of $260 and is not to exceed maximum fine of $2,000. The Oregon Liquor Control Commission has been tasked with researching the subject of drugged driving and presenting its finding to the Oregon Legislative Assembly no later than January 2017.

After reviewing the OLCC report, the state legislative assembly will decide whether passing more extensive driving regulations will be necessary.

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7) Legalization won't take effect until summer.

Anyone over 21 will be allowed to possess small amounts of marijuana for their personal use from July 1, 2015.

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8) Crossing the Columbia River with a state-licensed spliff will catch you a felony

Although marijuana is simultaneously legal in Oregon and Washington, it's illegal to transfer the drug between the two states.

Measure 91 is only applicable to Oregon and marijuana remains illegal under federal law. Even with a physician’s subscription, marijuana is classified as a Schedule I controlled substance - meaning that anyone transporting it across state lines is prosecutable by federal agencies.

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9) Legalization could mean big money for financial service startups

It’s not just the vendors whose businesses will grow under legalization - companies like Greenpay are expected to expand rapidly once the new legal market gets its footing. Greenpay would allow consumers to instantly purchase marijuana using their smartphones.

Greenpay is a wholly-owned subsidiary of MyEcheck - a publicly traded company whose shares typically trade for less than ten cents on the New York Stock Exchange. With legalization efforts gaining momentum around the country, companies providing auxiliary services for the marijuana industry may create an economic boom.