Is the Smoke Shop Near Me Now The Best Place To Get Legal Bud?

Is the Smoke Shop near me the best place to get legal bud?

Cannabis legalization activists have been fighting for access to the plant since the early 1990s. These polarizing battles that started as a local movement in some of the most progressive cities in the US, at a time when most Americans were against legalization and stoner stigma still strong. The battle began with colorful disruptors such as Brownie Mary, Jack Herer, and Dennis Peron advocating for medical pot during the AIDS crisis at the end of the last century. The slow rollout from initial medical legalization to the first adult-use state cannabis laws took roughly 20 years and has been well chronicled in local and state governments, with every initiative painstakingly scrutinized by local and national press. The three decades long campaign by marijuana advocates has worked to undo previous decades of failed drug war rhetoric and false narratives about the effects of weed, and those who consume it. A 2024 PEW research poll found an overwhelming share of U.S. adults (88%) say marijuana should be legal for medical or recreational use, while nearly six-in-ten Americans (57%) say that marijuana should be legal for medical and recreational purposes. As of July 2024, cannabis is legal for medical use in 38 states and for recreational use in 24 states, plus Washington D.C. However it still remains illegal at the federal level. Or is it?

Legalization activists Brownie Mary and Dennis Peron share a joint in 1993

The 2018 Farm Bill, while not explicitly legalizing cannabis, has paved the way for what many argue is a de facto federal legalization of intoxicating cannabinoid products. Without fanfare or activism, the Farm Bill’s updated the definition of “hemp”. This opened the door for folks in every State in the US, to walk to their local smoke shop or gas station and pick up some gummies that produce similar effects as the THC products sold at the State licensed dispensaries…which conversely took decades to manifest through the blood, sweat, and tears of legendary cannabis martyrs.

By defining “hemp” as cannabis containing less than 0.3% delta-9 THC and legalizing its cultivation and sale, the Farm Bill created an opportunity to produce and distribute psychoactive cannabinoids derived from hemp. These products, including THCA, delta-8 THC, delta-10 THC, and various other THC isomers and analogs, offer effects similar to those of traditional cannabis products sold in state-licensed dispensaries. The widespread availability of these federally legal, hemp-derived intoxicants in stores and online, coupled with their ability to be shipped across state lines, has effectively created a national market for cannabis-like products. This situation frankly challenges the notion that cannabis remains federally illegal, as consumers can now legally purchase and use substances that produce comparable psychoactive effects to those of state-regulated cannabis. The proliferation of these products in gas stations, bodegas, vape shops, smoke shops, and online, has blurred the lines between “hemp” and “marijuana”, potentially rendering the traditional federal prohibition on cannabis as not just ineffective and outdated- but also moot.

Lets take a deeper look at differences and similarities, pros vs cons from multiple perspectives.

Smoke shop vs dispensary products for sale

All this is confusing to politicians and experts, let alone the millions of American consumers that would like to understand the differences between weed and hemp. Here’s an overview:

State-regulated cannabis:

States with legal cannabis have established regulatory bodies to oversee cultivation, processing, testing, and sales. These regulations often include:

• Significant Licensing requirements and fees for businesses; controls on production, distribution, and sale
• Strict security and surveillance measures
• Seed-to-sale tracking systems similar to METRC
• Mandatory lab testing for potency and contaminants
• Packaging and labeling disclosure requirements
• Severe marketing restrictions
• Regulated at the state level, illegal at the federal level
• Contains high levels of THC (the main psychoactive compound)
• Sold through licensed medical and recreational dispensaries and delivery where legal
• Subject to strict state Subject to layers of taxes for both State and City including- cultivation, sales, excise
• Not legal to transport across state lines

Regulated cannabis businesses are overtaxed:

State-regulated cannabis taxes are much more onerous than alcohol taxation. While beer, wine, and spirits are typically subject to excise taxes based on volume or alcohol content, plus standard sales taxes, cannabis taxation is generally more complex and burdensome. Most states with legal cannabis impose multiple layers of taxation, including cultivation taxes based on weight, processing taxes, and retail excise taxes based on sale price, in addition to standard sales taxes. These cannabis-specific taxes are often substantially higher than those on alcohol, with effective tax rates frequently exceeding 30% of the retail price, compared to typical alcohol tax rates of 10-15%. For example, in some states, the combined tax rate on cannabis can reach 40% or more, while the highest alcohol taxes rarely surpass 20-25% for spirits, and are usually much lower for beer and wine. Policymakers view cannabis taxes as a way to generate significant revenue for state programs as a means to keep prices high enough to discourage excessive consumption, and offset perceived societal costs. However there is no data suggesting that legal cannabis will “cost” society 2X more than Alcohol, or 4X more than beer.

California, the Country’s largest, most mature and innovative legal market has had an alarming decline in Sales. Per the DCC, golden state cannabis generated $4.9B in 2022, and was on pace to do far less in 2023. So far in 2024 Cannabis sales have declined for six consecutive months, down 8.5% through June this year (per Headset), and on pace for only $3.8B. Earlier this year the unthinkable happened- Michigan surpassed California as the U.S. leader in cannabis sales, not because Michigan is a quarter the size, but because California is woven into cannabis culture and genetics worldwide- many social clubs in Barcelona and Coffee Shops in Amsterdam list “Cali flower and hash” on dedicated menus. And of course California’s legendary Emerald Triangle consisting of Humboldt, Mendocino, and Trinity Counties has been the predominant source of illicit weed flowing to Chicago, Atlanta, Houson, and New York for over three decades. California is positioned to be a global powerhouse, yet a punitive tax structure is strangling operators and keeping the Golden State from becoming the Golden Goose.

A California Golden Bear threatens a California Golden Goose outside a dispensary

And how sustainable is over-taxing a promising Industry? By 2021 legal weed accounted for more annual excise taxes than Alcohol in 7 states including California, Illinois, and Massachusetts, while seemingly projecting substantially more social cost for cannabis relative to alcohol, with little to no supporting data. Excessive taxes have only resulted in one thing conclusively- driving consumers to a still-thriving illicit market that continues to dwarf legal weed, while undermining the goals of legalization.

State-compliant operators have difficulties Banking while generating millions in excise taxes:

Due to federal illegality, many cannabis businesses struggle to access banking services, often operating on a cash-only basis. Ahead of rescheduling, complaint business also are burdened with with a nasty little subsection of the tax code called 280-e, a law intended for drug traffickers, which prohibits licensed operators (who pay exorbitant fees and taxes) from deducting normal business expenses, such as marketing/advertising expenses, rent, insurance and many other deductions seen as very standard in other industries. Alcohol, Tobacco, and Pharmaceutical businesses have no such restrictions while each is directly associated with thousands of deaths each year.

"Alcohol, Tobacco, and Pharmaceutical businesses have no such restrictions while each is directly associated with thousands of deaths each year."

Product safety is a concern even with onerous testing requirements in regulated States:

A recent expose in the LA times uncovered a staggering 60% of California regulated cannabis products randomly tested were found to contain pesticide levels above the allowable limits under either State or Federal guidelines. The article has set off a round of lawsuits involving licensed product manufacturers and testing labs, all of which is a bad look for State regulators, and both alarming and confusing to consumers.

Federally legal intoxicating hemp products offer similar effects and more availability

• Legal at the federal level due to the 2018 Farm Bill
• Derived from hemp (cannabis with less than 0.3% THC by dry weight, which for instance means hemp-derived gummies are a bit larger in volume to accommodate the desired dosage in THC milligrams to stay under .3% of dry weight)
• Often contain delta-8, delta-9, delta-10 THC, THCA, HHC, or other THC isomers
• Less regulated distribution, often available in convenience stores, smoke shops, and online
• Lack of potency, dosage, and labeling controls
• Can be transported across state lines (where not prohibited by state law)
• The key differences lie in their legal status, THC content, regulation, and availability. State-regulated cannabis is more tightly controlled but illegal federally, while hemp-derived intoxicants exist with less oversight.

How hemp derived cannabinoid products are made

Also known as alt-noids (alternative cannabinoids) these naturally occurring compounds are often created through chemical processes converting CBD extracted from hemp, raising concerns about production safety and purity given lack of specific research.

Regulation gap and health concerns

The FDA has not approved these products for safe use, leading to inconsistent quality and potency across brands, with no standardized dosage. The long-term effects of these novel cannabinoids are not well understood, leading to calls for more research and regulation. However hemp advocates point to similar issues with long term cannabis consumption, given the lack of research due to prohibition.

State responses to intoxicating hemp:

Some states have moved to ban or regulate these products, while others have embraced them as a legal alternative to cannabis, and already legislated a simplified tax, labeling, and distribution structure.

Massive demand for hemp derived products:

The U.S. market for Delta-8 THC and other hemp-derived cannabinoids has increased a whopping 1,283% in just three years, growing from $200.5 million in sales 2020 to nearly $2.8 billion in 2023, according to cannabis data and analytics firm Brightfield Group. This demand had gotten the attention of multi-state cannabis operators such as Curaleaf, Kiva, and Cookies who have all launched hemp-derived product lines through smoke shops and direct to consumer websites.

The most popular among hemp derived cannabinoids is Delta-8 THC, a naturally occurring cannabinoid known to provide a similar but muted effect to that of Delta-9 THC, the better know cannabinoid mainly responsible for the “high” one feels after smoking, vaping or eating weed products. Consumers report that delta-8 provides a more mellow, clear-headed high compared to the sometimes overpowering effects of delta-9 THC. This appeals to consumers looking for a lighter psychoactive experience.

Market impact of hemp derived products on legal markets:

Alt-noid products available at local smoke shops and online, have created competition for state-licensed cannabis businesses, potentially impacting tax revenues and regulatory frameworks. Conversely they have also given millions of Americans access to legal THC, always the intent of legalization. The rapid evolution of the hemp-derived intoxicants market has created a complex legal and regulatory landscape, with state and federal laws often in conflict and consumers confused.

To address the public health concerns associated with hemp-derived intoxicating cannabinoids, some legislators have suggested several regulatory measures, including:

1. Standardized testing and quality control: Implement mandatory, standardized testing protocols for all hemp-derived products to ensure consistency, purity, and accurate labeling of cannabinoid content.
2. Manufacturing standards: Establish Good Manufacturing Practice (GMP) standards specifically for hemp-derived cannabinoids to ensure safe production methods and prevent contamination.
3. Age restrictions: Implement and enforce strict age verification requirements for purchasing these products, similar to those in place for alcohol and state-regulated cannabis.
4. Potency limits: Set maximum potency levels for individual cannabinoids and total cannabinoid content in products to reduce risks associated with overconsumption.
5. Packaging and labeling requirements: Mandate clear, standardized labeling that includes accurate ingredient lists, potency information, serving sizes, and prominent health warnings.
6. Marketing restrictions: Prohibit marketing that appeals to minors or makes unsubstantiated health claims, and regulate advertising channels to limit exposure to vulnerable populations.
7. Product registration: Require manufacturers to register their products with a regulatory body, providing detailed information on ingredients, production methods, and safety data.
8. Licensing system: Implement a licensing system for manufacturers, distributors, and retailers of hemp-derived cannabinoid products to ensure compliance with regulations.
9. Education and awareness campaigns: Fund public education initiatives to inform consumers about the potential risks and responsible use of these products.
10. Research funding: Allocate resources for comprehensive research on the short-term and long-term health effects of these novel cannabinoids.
11. Dosage guidelines: Develop and mandate the inclusion of clear dosage guidelines and usage instructions on product packaging.
12. Track-and-trace systems: Implement seed-to-sale tracking systems similar to those used in state-regulated cannabis markets to ensure product safety and facilitate recalls if necessary.
13. Impaired driving laws: Update impaired driving laws and testing procedures to account for these new cannabinoids and their effects on driving ability.
14. Inter-agency cooperation: Establish clear jurisdictions and cooperation protocols between federal agencies (e.g., FDA, DEA, USDA) and state regulators to ensure comprehensive oversight.
15. Product recall procedures: Develop and implement clear procedures for recalling products that are found to be unsafe or non-compliant with regulations.
16. Restricted sales locations: Limit the sale of these products to specialized stores or dispensaries, rather than allowing widespread availability in convenience stores and gas stations.
17. Online sales regulations: Implement stricter controls on online sales, including age verification processes and restrictions on interstate commerce where appropriate.
18. Consumer reporting system: Establish a system for consumers and healthcare providers to report adverse effects, facilitating rapid response to emerging health concerns.
19. Environmental regulations: Develop and enforce environmental standards for the cultivation and processing of hemp used in these products.
20. Regular regulatory review: Establish a process for regular review and updating of regulations to keep pace with new product developments and emerging scientific evidence.

Given the demand and economic impact of hemp derived products, some legislators believe Implementing these measures would require coordination between federal, state, and local authorities, as well as cooperation from industry stakeholders. The goal would be to create a regulatory framework that balances consumer access with public health and safety concerns, while also providing clarity for businesses operating in this space.

However state-compliant operators who’ve toiled in painfully over-regulated cannabis markets don't want to hear about more regulation. “Over 80% of the business we co-packed for were out of business in less than 3 years,” reports Mitchell Wagner, co-founder of Wagner Dimas Ag Tech, who was a partner in a licensed cannabis business based in Oakland California which co-packed and distributed prerolls from 2016-2020. “Between taxes, fees, and break-ins, operating profitably was literally not possible…and now competing with hemp products sold at random CBD stores, smoke shops and online is just not sustainable.” Wagner has no reservations about leaving regulated cannabis to focus on selling processing and preroll equipment, and consulting with licensed operators, “We were market leader in our segment, manufactured products for several brands ranked in the top 10 in the State (and) ran a pretty tight ship, but still couldn't sustain. You couldn't pay me anything to run a cannabis business in California…exiting the regulated market here has proven to be a good decision for us bottom line.”

For now I’ll continue to google smoke shop near me or online smoke shop to get roughly the same product at fair prices.