Smoke Signals

U.S. Rep. Earl Blumenauer (D-Ore.) is greeting legal recreational pot with a bold prediction.

"You are going to change national policy," Blumenauer declared Nov. 4, less than an hour after the ballot box closed in Oregon. "The marijuana-legalization train has left the station."

Our crystal ball isn't that focused. But since voters approved Measure 91, most people have learned the answers to three basic questions: No, marijuana isn't actually legal until July 2015. No, you will not be allowed to smoke in public. And no, medical marijuana will not cease to exist—at least not anytime soon.

But the more interesting questions are still being decided by the Oregon Liquor Control Commission, which has until Jan. 1, 2016, to set the rules for selling recreational pot. Here are four truths about where Oregon's weed train is going.

People from outside Oregon are going to get rich. 

Washington and Colorado have a residency requirement for those who want to invest in growing, processing or retail operations. That's designed to keep money in-state and allow state officials to keep a closer eye on operators. Oregon, which has long been an economic colony for out-of-state investors, has no such restriction. Anthony Johnson, chief petitioner for Measure 91, says the idea was to avoid legal challenges and to mimic Oregon's alcoholic beverage industry, which allows investment from anywhere. "People with capital can get around restrictions in any case," Johnson says.

Oregon's marijuana law is more progressive than our alcohol law. 

Since Prohibition ended, Oregon has separated the production of alcohol from its distribution, a system that distributors love but retailers do not. Measure 91 allows for vertical integration, which means a farmer can grow weed and also sell it, cutting out the middleman. In Washington, there have been supply problems, leaving retailers at the mercy of producers and contributing to high prices. "We look at it like a brewery or winery that has a retail outlet," Johnson says. "It helps business provide an affordable product."

Driving while under the influence of marijuana in Oregon is probably going to be a flash point. 

In Colorado and Washington, state officials established objective limits for how much marijuana a driver can ingest before being arrested for driving under the influence. Not here. "There's a huge difference between us and Washington and Colorado," says Clatsop County District Attorney Josh Marquis. "In Washington, there is a presumption of intoxication at a certain level. We don't have that."

It pays to wait. 

In Oregon, you may grow your own marijuana starting July 2015. Home cultivation is not allowed in Washington. Oregonians may also legally possess far more marijuana—8 ounces to just 1 in Washington. And taxes are significantly lower here. Up north, the state takes a 25 percent bite each time weed changes hands. With a sales tax on top, the effective rate is about 44 percent. In Oregon, the state only gets one bite, $35 per ounce at the producer level, which Johnson says will equate to a 12.5 percent tax rate. "That allows the regulated market to compete with the illicit market," Johnson says.

WWeek 2015