The History of Cannabis Prohibition in the U.S.
Connect with us

Sponsored

The History of Cannabis Prohibition in the U.S.

Published

on

History of US Cannabis Prohibition Part 1 of 5
The World's largest cannabis markets Part 2 of 5
A guide to cannabis in the US Part 3 of 5
Spotlight on Colorado's Cannabis Market 4 of 5
Legal vs. Illegal: an overview of the cannabis market Part 5 of 5

The following content is sponsored by Tenacious Labs.

cannabis

The History of Cannabis Prohibition in the U.S.

The legal status of cannabis in the U.S. isn’t always clear. At the federal level, it is an illegal Schedule I drug. However, individual states have the ability to determine their own laws around cannabis sales and usage.

But cannabis was not always illegal at the top level. It was only in the last 100 years that cannabis faced a prohibition similar to the alcohol prohibition of the early 1920s.

In this infographic from Tenacious Labs, we explore the fascinating history of cannabis prohibition in the U.S. dating all the way back to the 1900s.

The Early History of Cannabis Legality

The earliest laws surrounding the cannabis plant in the U.S. were drafted before the country was even founded. In 1619, a law was passed in the colony of Virginia which required every single farm to grow cannabis and produce hemp, an important commodity at the time.

Over time, marijuana from the cannabis plant started to be used for medicinal purposes. Early recreational use was first introduced by Mexican immigrants in the early 1900s.

Flash forward to the 1930s, when the country was struggling financially during the Great Depression. To encourage economic growth, alcohol prohibition was lifted, and those who had supported teetotalling began to target marijuana instead. At the time, cannabis was consumed largely in black and Mexican communities, and racist attitudes began to shape an association between crime, lewd behavior, immorality, and marijuana.

Legal Changes

The 1930s marked the beginning of America’s war against marijuana. Here’s a glance at some of the most famous laws around cannabis prohibition:

  • The Marihuana Tax Act (1937)
  • The Boggs Act (1952)
  • The Narcotics Control Act (1956)
  • The Controlled Substances Act (1971)

In 1937, the Marihuana Tax Act was enforced, prohibiting marijuana federally but still allowing medical use. Prior to that, 29 states had already outlawed marijuana on their own.

But by the 1950s, a counterculture movement had begun, with young people using marijuana recreationally much more than previous generations.

Eventually, the Boggs Act (1952) and Narcotics Control Act (1956) were put in place to combat the counterculture. These laws set mandatory sentences for drug-related offenses, including marijuana. A first-offense marijuana possession conviction could result in a minimum sentence of 2-10 years with a fine of up to $20,000.

In 1970, cannabis was classified as a Schedule I drug—the same category as heroin—under the Controlled Substances Act. However, the 70s also saw an opposing shift, with a number of states beginning to decriminalize marijuana.

ℹ️ Decriminalization means that although possessing marijuana remains illegal, one is not subject to prosecution or jail time for possessing certain amounts.

After decriminalization, commercial businesses began to capitalize and started to market marijuana-related products. Some products were marketed towards children, which, in tandem with the intensive hippie culture from the 70s, sparked a war against marijuana led by parents and supported by president Ronald Reagan.

The Modern Era

During the 1990s, five states passed laws to allow the medical usage of marijuana—between 2010 and 2020, 16 states passed medical marijuana laws.

StateState Level Legal Status Of Cannabis
AlabamaLegal for medical use
AlaskaLegal
ArizonaLegal
ArkansasLegal for medical use
CaliforniaLegal
ColoradoLegal
ConnecticutLegal
DelawareLegal for medical use
FloridaLegal for medical use
GeorgiaLegal for medical use
HawaiiLegal for medical use
IdahoIllegal
IllinoisLegal
IndianaLegal for medical use
IowaLegal for medical use
KansasIllegal
KentuckyIllegal
LouisianaLegal for medical use
MaineLegal
MarylandLegal for medical use
MassachusettsLegal
MichiganLegal
MinnesotaLegal for medical use
MississippiLegal for medical use
MissouriLegal for medical use
MontanaLegal
NebraskaIllegal, decriminalized
NevadaLegal
New HampshireLegal for medical use
New JerseyLegal
New MexicoLegal
New YorkLegal
North CarolinaLegal for medical use
North DakotaLegal for medical use
OhioLegal for medical use
OklahomaLegal for medical use
OregonLegal
PennsylvaniaLegal for medical use
Rhode IslandLegal for medical use
South CarolinaLegal for medical use
South DakotaLegal for medical use
TennesseeLegal for medical use (Limited)
TexasLegal for medical use (Limited)
UtahLegal for medical use
VermontLegal
VirginiaLegal
WashingtonLegal
Washington, DCLegal
West VirginiaLegal for medical use
WisconsinIllegal
WyomingIllegal

In 2021, a total of 18 states have fully legalized cannabis, while another 26 have allowed marijuana usage for medicinal purposes in some capacity. Furthermore, the MORE Act—a bill to legalize marijuana federally—was reintroduced in the House of Representatives in May 2021.

If passed, the MORE Act (the Marijuana Opportunity Reinvestment and Expungement Act) would essentially remove cannabis from its classification as a Schedule I drug under the Controlled Substances Act. It would also work towards the expungement of criminals who were charged with crimes related to marijuana.

While the U.S. government has gone back and forth with cannabis legalization over the years, it appears that in the 21st century, the path only leads one way: towards federal legalization.

Support the Future of Data Storytelling

Sorry to interrupt your reading, but we have a favor to ask. At Visual Capitalist we believe in a world where data can be understood by everyone. That’s why we want to build the VC App - the first app of its kind combining verifiable and transparent data with beautiful, memorable visuals. All available for free.

As a small, independent media company we don’t have the expertise in-house or the funds to build an app like this. So we’re asking our community to help us raise funds on Kickstarter.

If you believe in data-driven storytelling, join the movement and back us on Kickstarter!

Thank you.

Support the future of data storytelling, back us on Kickstarter
Click for Comments

Sponsored

ESG Data: The Four Motivations Driving Usage

ESG controversies can damage a company’s value, but ESG data may be able to help manage this risk. What are other reasons for using ESG data?

Published

on

ESG Data: The Four Motivations Driving Usage

Data is key to the environmental, social, and governance (ESG) revolution. Access to granular ESG data can help boost transparency for market participants. Unfortunately, 63% of U.S. and European asset managers say a lack of quantitative data inhibits their ESG implementation.

Being clear on the potential application of this data is equally important.

  • Investors and banks can use ESG data for risk assessment, to spot opportunities, and to push companies for change.
  • Companies can publish their own ESG data, quantify progress on their ESG goals, and use data to inform decisions.
  • Policymakers can use ESG data to inform regulatory frameworks and measure policy effectiveness.

This graphic from ICE, the second in a three part series on the ESG toolkit, explores four primary motivations of ESG data users.

1. Right Thing

The objective: Having a positive social or environmental impact.

For investors, this can involve screening out companies that conflict with their values and selecting companies that align with their ESG objectives.

As another example, it can involve comparing the social impact of municipal bonds. One way investors can measure social impact is through scores that quantify the potential socioeconomic need of an area, using metrics like poverty and education levels. Here are the social impact scores for three actual municipal bonds issued in Florida.

StateBond IssuerSocial Impact Score
(Higher = larger potential impact)
FloridaIssuer #176.5
FloridaIssuer #266.6
FloridaIssuer #343.2

Issuer #1’s bond is projected to have a community impact that is nearly twice as high/positive as Issuer #3’s bond.

For companies, doing the right thing can include assessing their progress on ESG goals and benchmarking themselves to peers. For example, gender and racial representation is a growing area of focus.

2. Risk

The objective: Managing ESG risks, such as climate and reputational risks.

For investors, this can involve back-testing or analysis around specific risk events before they materialize. Here are the risk profiles of two actual municipal bonds in California. The shown bonds are practically identical in many ways, except their wildlife score.

 Issuer #1Issuer #2
Current Coupon Rate5.0%5.0%
Maturity DateAug 01, 2048August 01, 2048
S&P RatingAAAA
Price to Date (Call Date)Aug 01, 2027Aug 01, 2027
Price122.0122.0
Yield1.0%1.0%
Wildfire Score (Higher = more risk)3.62.7

Managing ESG risk can also involve analyzing a company’s policies and governance for weaknesses. This is important as an ESG controversy can have long-lasting effects on the valuation of a company.

In one study, companies with ESG controversies dropped more than 10% in value relative to the S&P 500. They hadn’t fully recovered a year after the incident.

3. Revenue

The objective: Targeting outperformance through ESG analysis.

Selecting companies with strong ESG data can align with long-term growth trends and may help boost performance. For heavy emitting industries, research indicates that European companies with lower emissions trade at much higher valuations. The chart below shows companies’ price-to-book ratio relative to the Stoxx 600* sector median.

 UtilitiesEnergyMaterials
Above Median Emission Intensity (Bad)1.91.12.0
Below Median Emissions Intensity (Good)2.71.92.1

*The Stoxx 600 Index represents large, mid and small capitalization companies across 17 countries of the European region: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

Energy companies with low emissions trade at a valuation nearly two times higher than energy companies with high emissions.

4. Regulation

The objective: Understanding and complying with relevant ESG regulation.

The International Sustainability Standards Board has announced a global reporting proposal aligned with the Task Force on Climate-related Financial Disclosures (TCFD). In addition, a growing number of jurisdictions will require organizational reporting that aligns with the TCFD.

  • Brazil
  • European Union
  • Hong Kong
  • Japan
  • New Zealand
  • Singapore
  • Switzerland
  • UK

Not only that, a European Union regulation known as Sustainable Finance Disclosure Regulation (SFDR) came into effect in 2021. It seeks greater transparency in disclosures from firms marketing investment products. Even firms located outside the EU could be impacted if they serve EU customers. In total, the market cap of these non-EU companies exposed to SFDR amounts to $3.2 trillion.

Matching ESG Data with Motivation

There will be growing demand for transparent data as ESG investing flourishes. To remain competitive, investors, policymakers, and companies need access to ESG data that meets their unique objectives.

In Part 3 of the ESG Toolkit series sponsored by ICE, we’ll look at key sustainability index types.

Continue Reading

Sponsored

The Hierarchy of Zero Waste

In a world that generates 2 billion tonnes of waste every year, waste management has become a global concern. Here are some strategies to help guide zero waste policies.

Published

on

How-to-achieve-zero-waste

The Hierarchy of Zero Waste

Many cities have set ambitious zero waste targets in the upcoming decades.

The idea is to have communities where waste generation is avoided, and products are shared, reused, or refurbished.

This graphic, sponsored by Northstar Clean Technologies, shows the main strategies and hierarchy to guide zero waste policies.

What is Zero Waste?

In a world that generates approximately 2 billion tons of waste every year, waste management has become a global concern. Thus, countries and cities are increasing efforts to reduce or even eliminate waste when possible.

The Zero Waste International Alliance defines zero waste as “the conservation of all resources  by means of responsible production, consumption, reuse, and recovery of products, packaging, and materials without burning and with no discharges to land, water, or air that threaten the environment or human health.”

Becoming a zero waste community, however, is a complex task.

Currently, Sweden recycles 99% of locally-produced waste and is considered the best country in the world when it comes to recycling and reusing waste. However, such results only came after almost 40 years of recycling and reuse policies.

In line with this, here are seven commonly accepted steps you can use to achieve zero waste:

1. Rethink, Redesign Products

The global population consumes 110 billion tons of materials each year, but only 8.6% is reused or recycled. In a zero waste society, single-use products are avoided and products are designed with sustainable practices and materials.

2. Reduce

Consumption must be planned carefully to reduce the unnecessary use of materials. Consumers must choose products that maximize the usable lifespan and opportunities for continuous reuse. Companies must minimize the quantity and toxicity of materials used.

3. Reuse

The value of products is maintained by reusing, repairing, or refurbishing for alternative uses.

4. Recycle

Products are diverted from waste streams and recirculated into use. Resilient local markets are developed, allowing the highest and best use of materials.

5. Material Recovery

Component materials like cement, metals, or asphalt are recovered from mixed waste and collected for other applications.

In the U.S. alone, around 12 million tons of asphalt shingle tear-off waste and installation scrap are generated from roof installation each year. Currently, more than 90% of this is discarded in landfills. This material can be repurposed to create new products like liquid asphalt, fiber, and aggregate.

6. Residuals Management

Waste is biologically stabilized and sent to responsibly managed landfills.

7. Unacceptable

The production of materials that are not recoverable and can negatively impact the environment must be avoided.

Reducing our Climate Impact

Reducing, recycling, and recovering materials can be a key part of a climate change strategy to reduce our greenhouse gas emissions.

According to the U.S. Environmental Protection Agency, about 42% of all greenhouse gas emissions are caused by the production and use of goods, including food, products, and packaging.

Even though 100% zero waste may sound difficult to achieve in the near future, a zero waste approach is essential to reduce our impact on the environment.

Northstar Clean Technologies aims to become the leading recovery and reprocessing company for asphalt shingles in North America.

Continue Reading

Subscribe

Popular