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2012 Colorado Amendment 64
View on WikipediaNovember 6, 2012
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Use and Regulation of Marijuana | ||||||||||||||||||||||
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County results
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Colorado Amendment 64 was a successful popular initiative ballot measure to amend the Constitution of the State of Colorado, outlining a statewide drug policy for cannabis. The measure passed on November 6, 2012, and along with a similar measure in Washington state, marked "an electoral first not only for America but for the world."[2]
Enacted as Article 18, section 16 of the state constitution, the law addresses "personal use and regulation of marijuana" for adults 21 and over, as well as commercial cultivation, manufacture, and sale: regulating marijuana in a manner similar to alcohol,[3] namely for recreational use. Possession and cultivation of marijuana became legal on December 10, 2012, after governor John Hickenlooper issued an executive action adding Amendment 64 to the state constitution.[4] The commercial sale of marijuana to the general public began on January 1, 2014, at establishments licensed under the regulatory framework.[5]
As of April 2017, 176 of Colorado's 272 municipalities have opted to prohibit retail marijuana activity within their boundaries.[6] While Colorado's second most populous city, Colorado Springs in El Paso county, has prohibited the sale of recreational marijuana, the city has permitted medical marijuana dispensaries.[7]
Ballot summary
[edit]| Elections in Colorado |
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Proposed initiative 2011/12 #30 was submitted on January 4 and found sufficient by the Secretary of State on February 27 to appear on the general ballot for the November election.[1]
Personal use
[edit]Adults 21 or older can grow up to three immature and three mature marijuana plants privately in a locked space, legally possess all marijuana from the plants they grow (as long as it stays where it was grown),[8] legally possess up to one ounce of marijuana while traveling,[9] and give as a gift up to one ounce to other citizens 21 years of age or older.[10] Consumption is permitted in a manner similar to alcohol, with equivalent offenses prescribed for driving under the influence.[11]
The new legislation does not apply to medical marijuana.[12]
Commercial regulation
[edit]The legislation defines industrial hemp as any part of the cannabis plant, growing or not, "with a delta-9-tetrahydrocannabinol (THC) concentration that does not exceed three tenths percent (0.3%) on a dry weight basis."[13] The amendment declares that industrial hemp should be regulated separately from marijuana with higher THC concentrations, and requires the Colorado General Assembly to "enact legislation governing the cultivation, processing, and sale of industrial hemp" by no later than July 1, 2014.[14]
The amendment provides for licensing of cultivation facilities, product manufacturing facilities, testing facilities, and retail stores.[15] Local governments can now regulate or prohibit such facilities. This amendment requires the general assembly to enact an excise tax to be levied upon wholesale sales of marijuana, requiring that the first $40 million in revenue raised annually by such tax be credited to the public school capital construction assistance fund, known as the Building Excellent Schools today (B.E.S.T.) program. The B.E.S.T. program assists in renovation, repairs, and new school construction needs for Colorado public schools. B.E.S.T. receives funding from state land tax proceeds, lottery proceeds, interest tax proceeds, and marijuana sales tax proceeds via Amendment 64.[16] The Colorado Department of Education annual B.E.S.T. reports suggest that Amendment 64 has provided a visible increase in funding to this program. Since implementation of Amendment 64, the Colorado B.E.S.T. program has seen a decrease in overall annual applications numbers, an increase in overall granted applications numbers, and an increase in cash granted amounts since implementation of Amendment 64 in 2014.[17]
Support and opposition
[edit]The largest survey for the amendment, conducted October 23, 2012 by Public Policy Polling, indicated that 53% of voters intended to support it, with 46% opposed.[18] On December 9, 2013, more than a year after the passing of Amendment 64, a Public Policy Polling poll showed that the majority of Coloradans still support legal marijuana. With 53% support versus 38% opposition, the survey of 928 Colorado voters showed little change in support for legal marijuana a year on from the amendment vote.[19]
Since the amendment passed there has been concern over its conflict with federal substance prohibition laws.[20] The outcome is nevertheless expected to have broad impacts south of the border,[21] including in Mexico where less than a week after the U.S. vote Mexican senators submitted a proposal to legalize marijuana in their country.[22]
Support
[edit]Though support for liberalizing drug policy has traditionally been considered a liberal or libertarian cause,[23] Amendment 64 garnered a number of high-profile conservative endorsements, including, most notably, an endorsement from former U.S. Representative and 2008 Republican Presidential Candidate Tom Tancredo, who claimed, "Throughout my career in public policy and in public office, I have fought to reform or eliminate wasteful and ineffective government programs. There is no government program or policy I can think of that has failed in such a unique way as marijuana prohibition."[24] Similarly, Temple Emmanuel's Rabbi, Steven Foster, endorsed Amendment 64 because, "as clergy, we have the responsibility to talk about what policies serve our community best. You do not have to use marijuana—or even approve of marijuana—to see that our current laws are not working."[25] Many supporters of Amendment 64 did so because they wanted to improve the efficiency and effectiveness of the state's law enforcement resources. Proponents believe that permitting recreational use will allow officers to focus on prevention of violent crime and that it will remove some of the burden on the state's prosecutors and courts.[26]
Other justifications for support include: increasing the state's revenue (much of the additional revenue is required to be used to fund primary education),[26] subjecting otherwise illicit substances to health and safety regulations for the protections of users,[27] enhancing individual freedom,[27] eliminating a black market (black markets tend to result in crime regardless of the goods sold because market participants are already criminals, and therefore have less to lose by committing additional crimes),[28] and providing empirical evidence for studying the effects of legalization to identify whether the harms associated with drugs are actually caused by the policy of prohibition.[28]
Yet another argument favoring Amendment 64 is that regulation of marijuana may actually reduce marijuana usage by teens: According to Regulate Marijuana Like Alcohol, the organization responsible for much of the campaigning in support of Amendment 64, marijuana use by teens is likely to go down because commercial access would be limited to persons 21 and older. The campaign also points out that teens who currently seek marijuana have to turn to criminals for their supply and that these criminals may expose teens to other, potentially more dangerous drugs like heroin, meth, or cocaine.[29] Supporters also point out that Colorado's experience with medical marijuana supports their conclusion:[30] The CDC's Youth Risk Behavior Surveillance System monitors a number of statistics for America's youth.[31] The CDC study suggests that marijuana use among Colorado's youths fell by 2.8 percent from 2009 (24.8 percent) to 2011 (22 percent), while the national rate of youth use increased by 2.3 percent from 2009 (20.8 percent) to 2011 (23.1 percent).[30] Furthermore, the CDC found that the availability of drugs on school grounds in Colorado fell 5 percent from 2009 (22.7 percent) to 2011 (17.2 percent), while the national rate increased by 3.1 percent over the same time.[30]
Opposition
[edit]The group "No on 64" objected to Amendment 64 chiefly because it claimed the amendment would lead to increased use of marijuana, a consequence the group considers harmful. In particular, the group sees marijuana as addictive and as damaging to children because they believe it "permanently affects brain development, impairs learning ability and contributes to depression."[32]
On October 14, The Denver Post's editorial board announced its opposition to Amendment 64. The board began by saying, "We believe possession and use of marijuana should be legal," but ultimately encouraged readers to vote against the amendments because "Drug policy simply has no business being in the state constitution."[33]
Implementation
[edit]The policies took effect when the Governor ratified the ballots, which was to happen within 30 days of the election.[34] Governor John Hickenlooper officially added the law to the state's constitution on Monday December 10, 2012 making the private consumption of marijuana legal in Colorado. The first stores officially opened on January 1, 2014.[5]
Shortly after its passing Colorado Gov. John Hickenlooper stated "This will be a complicated process, but we intend to follow through. That said, federal law still says marijuana is an illegal drug, so don't break out the Cheetos or Goldfish too quickly."[35] On December 10, 2012 Governor Hickenlooper signed Executive Order B 2012-004 to create the Task Force on the Implementation of Amendment 64 to "consider and resolve a number of policy, legal and procedural issues".[36] On March 13, 2013, the task force issued 58 recommendations on how recreational pot should be grown, sold and taxed in the state.[37] On May 28, 2013, Governor Hickenlooper signed several bills into law implementing the task force's recommendations.[38][39][40] On September 9, 2013, the Colorado Department of Revenue adopted final regulations for recreational marijuana establishments, implementing the Colorado Retail Marijuana Code (HB 13-1317).[41] On September 16, 2013, the Denver City Council adopted an ordinance for retail marijuana establishments.[42] These local licensing requirements are in addition to the state licensing requirements.
Proposition AA
[edit]On May 28, 2013 the government also proposed Proposition AA, a 15% excise tax on the "average market rate" and a 10-15% sales tax on retail sales (on top of the 2.9% state sales tax and any local government sales taxes).[43] The Colorado chapter of NORML opposed the measure, supporting the 15% excise tax but opposing the 10% sales tax as unreasonable and unnecessary, arguing that the proposed marijuana taxes could amount to an effective tax rate of 30-40% and would be more than twice the equivalent taxes on alcohol, that there would be adequate funds to effectively regulate recreational marijuana if the measure failed, and that excessive taxation would have the potential effect of keeping a black market alive.[44] The Denver Post disagreed, citing the insufficiency of licensing fees to previously regulate medical marijuana and rejecting the notion that the taxes would drive pot back to the black market.[45] On November 5, Proposition AA was approved by a wide margin, as were similar local taxes such as a 3.5% Denver marijuana sales tax which is on top of the 3.62% Denver sales tax.[46][47]
"Local Option" legal challenge
[edit]Although Colorado voters approved the constitutional amendment legalizing retail sales of marijuana for recreational purposes, the amendment and enabling legislation also provided that localities could limit or ban retail outlets within a city or unincorporated portion of a county through a "local option". The provisions of Amendment 64 concerning personal use are not affected by the local bans on retail sales, so that growing and possession of small quantities of "personal" pot are legal statewide under state (but not federal) law. Most localities have chosen to ban retail stores, at least temporarily.[48]
A locality may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance or through an initiated or referred measure; provided, any initiated or referred measure to prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores must appear on a general election ballot during an even numbered year.
— Amendment 64 [49]
Colorado Springs and vicinity
[edit]Colorado Springs is the county seat of El Paso county, the second most populous county in the state. A tiny majority of El Paso county voters approved the statewide Amendment 64 with an original margin of only 10 votes.[50] In Colorado Springs the measure won by just 2% favored by only 5,000 out of more than 200,000 ballots cast.[51] Relying on the local option clause in the amendment, the city council then voted 5-4 not to permit retail shops in the city. Some council members expressed concern over the effect pot shops would have on existing businesses, as well as on local military bases.[52] Current mayor John Suthers, elected in May 2015, supports the ban on pot shops; his opponent in the mayoral election supported recreational pot shops as a way to increase city tax collections. Suthers, a former Colorado Attorney General, has long been an outspoken opponent of legalized marijuana.[53]
Retail marijuana outlets are also banned in unincorporated areas of El Paso County. As of 2016, the only area in El Paso County to permit retail recreational marijuana outlets is the city of Manitou Springs, which adjoins Colorado Springs to the west, and has two retail recreational pot shops, the maximum number allowed by city ordinance.[54]
Medical marijuana outlets continue to operate in Colorado Springs although current regulations prevent any new stores from opening.[55] As of 2015, there were 91 medical marijuana clinics in the city, which reported sales of $59.6 million in 2014, up 11 percent from the previous year.[56]
Pueblo county
[edit]In Pueblo County in 2013 the commissioners adopted laws governing the recreational marijuana industry. The laws allows for the establishment of recreational marijuana grows, manufacturing, testing and retail facilities. The county currently limits the industry to 15 retail marijuana stores which produced more than one half million dollars in taxes in their first year.[57] In 2014 the citizens adopted a tax measure designed to fund college scholarships.[58] In April 2016 a citizen group, operating under Amendment 64's local option, is threatening to bring the issue to ballot with the potential outcome that if adopted the established industry would be forced to shut down anywhere it operates within the unincorporated county.[59] County Commissioner Sal Pace said if this ban were to pass it would hurt the county. In 2015 the county generated a net revenue of $1.75 million from recreational marijuana sales.[59]
Tax revenue
[edit]In February 2015, the state of Colorado reported that tax collection figures for 2014, the first year of legal commercial sales, reached a total of $44 million from recreational marijuana with a further $32 million collected from fees on the industry and pre-existing taxes on medical marijuana.[60] The projected revenue before legalization was $60 million. These sales and excise tax figures do not include the corporate and personal income taxes generated by businesses and employees working in the state's marijuana industry.[61] The state Department of Revenue reported that official sales of recreational and medical marijuana from dispensaries reached over $996 million in 2015; a $297 million increase from the $699 million sold in 2014. The 2015 sales alone generated $135 million of tax revenue, $35 million of which are being used for the Education Center construction projects.[62]
Results
[edit]Colorado has experienced significant financial benefit as a result of legalization, with marijuana tax, license and fee revenue surpassing $1 billion as of 2019.[63] This revenue has been used to finance youth, education and health programs; the first $40 million of annual fee revenue is used to repair and upgrade local elementary schools and education facilities.[64]
Colorado has seen an 8% rise in homelessness since legalization, which has fueled speculation as to whether increased marijuana use is partially to blame; however, this rise is likely attributed to migration into the state as a result of legalization, including those who were already homeless.[65] The number of teenagers sent to emergency rooms with THC-positive substance screens more than quadrupled after marijuana was legalized.[66] The state also saw a 3% increase in car collision claims after legalization.[67]
Interstate lawsuit
[edit]In 2015, Nebraska and Oklahoma attempted to file suit in federal court to stop the implementation of Amendment 64, claiming that Colorado cannabis was harming their localities, and should be preempted by federal law. Sheriffs in Kansas joined the suit.[68] If their effort prevailed, it could have "potentially [led] to all state-level legalization laws being struck down".[69] The United States Solicitor General filed an amicus brief urging the bill of complaint not to be heard,[70] in layman's terms "urging the court to stay out of the case".[71] On March 21, 2016, the United States Supreme Court denied Nebraska and Oklahoma's motion, leaving Amendment 64 and other states' legalization laws in effect.[71][72]
See also
[edit]References
[edit]- ^ a b Gessler, Scott (February 27, 2012). "Statement of Sufficiency" (PDF). Proposed Initiative 2011–12 #30. Department of State, State of Colorado. Retrieved 19 June 2012.
- ^ "Ballot Measures: A Liberal Drift". The Economist. 10 November 2012. Retrieved 12 November 2012.
- ^ Ingold, John (11 June 2012). "Colorado marijuana measure's backers, foes buoyed by out-of-state support". The Denver Post. Retrieved 19 June 2012.
- ^ "Governor signs Amendment 64, marijuana officially legal in Colorado | FOX31 Denver". November 30, 2020. Archived from the original on 2020-11-30.
- ^ a b Healy, Jack (1 January 2014). "Colorado Stores Throw Open Their Doors to Pot Buyers". The New York Times.
- ^ "Municipal Retail Marijuana Status". Colorado Municipal League. April 2017. Archived from the original on 2018-01-24. Retrieved 2018-01-23.
- ^ Jon Murray and John Aguilar The Denver Post (28 December 2014). "Colorado cities and towns take diverging paths on recreational pot".
- ^ Amendment 64: (3).b
- ^ Amendment 64: (3).a
- ^ Amendment 64: (3).a, 64:(3).b, and 64:(3).c
- ^ Amendment 64: (1).b-III and 64:(6).b
- ^ Amendment 64: (7)
- ^ Amendment 64: (2).d
- ^ Amendment 64: (1).c and 64:(5).j
- ^ Amendment 64: (4)
- ^ "Archived copy". Archived from the original on 2018-05-01. Retrieved 2018-04-30.
{{cite web}}: CS1 maint: archived copy as title (link) - ^ http://www.cde.state.co.us/cdefinance/ccasummarybookfy17-18 Archived 2018-05-01 at the Wayback Machine, http://www.cde.state.co.us/cdefinance/ccasummarybookfy16-17, http://www.cde.state.co.us/cdefinance/ccasummarybookfy15-16, http://www.cde.state.co.us/cdefinance/ccabestfy14-15summary, http://www.cde.state.co.us/cdefinance/ccabestfy13-14summary
- ^ Obama leads by 4 in Colorado. October 25, 2012.
- ^ "Polling Results" (PDF). Public Policy Polling. 9 December 2013.
- ^ Scott Bomboy (2013-01-05). "Pot luck? States push Obama for legal cannabis ruling". Blog.constitutioncenter.org. Retrieved 2013-05-06.
- ^ "The Will of the Voters | Washington Office on Latin America". Wola.org. 2012-11-13. Retrieved 2013-05-06.
- ^ "El Congreso mexicano recibe una iniciativa para legalizar la marihuana - Nacional - CNNMéxico.com". Mexico.cnn.com. 15 November 2012. Retrieved 2013-05-06.
- ^ Miron, J. 2004. Liberal Versus Libertarian Views on Drug Legalization. The New Prohibition: Voices of Dissent Challenge the Drug War. (Sheriff Bill Masters, Ed.).: Accurate Press
- ^ "POINT/COUNTERPOINT: Marijuana legalization amendment". Gazette.com. 2012-09-21. Archived from the original on 2013-01-27. Retrieved 2013-05-06.
- ^ Roberts, Michael (2012-10-17). "Marijuana: Amendment 64 supported, attacked by religious leaders in ongoing endorsement war - Denver - News - The Latest Word". Blogs.westword.com. Archived from the original on 2013-05-09. Retrieved 2013-05-06.
- ^ a b "Bolster Colorado's Economy | Yes on Amendment 64: The Colorado Campaign to Regulate Marijuana Like Alcohol". Regulatemarijuana.org. Archived from the original on 2013-05-04. Retrieved 2013-05-06.
- ^ a b Section 16. Personal use and regulation of marijuana. June 3, 2011.
- ^ a b "Miron, J. 2004. The Economics of Illicit Drugs: Harm from Prohibition versus Harm from Drugs. Economics Uncut: A Complete Guide to Life,Death, and Misadventure. (Simon Bowmaker, Ed.).: Edward Elgar".
- ^ "Regulating Marijuana Works! | Yes on Amendment 64: The Colorado Campaign to Regulate Marijuana Like Alcohol". Regulatemarijuana.org. Archived from the original on 2013-05-04. Retrieved 2013-05-06.
- ^ a b c Ferner, Matt (7 September 2012). "Marijuana Usage Down Among Colorado Teens, Up Nationally: Study Shows". Huffingtonpost.com. Retrieved 2013-05-06.
- ^ "CDC - YRBSS - Youth Risk Behavior Surveillance System - Adolescent and School Health". Cdc.gov. Retrieved 2013-05-06.
- ^ "Vote No on 64 Fact Sheet" (PDF). Archived from the original (PDF) on October 30, 2012. Retrieved October 24, 2012.
- ^ "Editorial: Amendment 64 is the wrong way to legalize marijuana". Denver Post. October 15, 2012. Retrieved November 17, 2012.
- ^ Amendment 64: (9)
- ^ Blog Post. "Colorado governor to potheads: 'Don't break out the Cheetos' - U.S. News". Usnews.nbcnews.com. Retrieved 2013-05-06.
- ^ Gov. Hickenlooper signs Amendment 64 proclamation, creates task force to recommend needed legislative actions, Governor of Colorado, December 10, 2012, archived from the original on February 16, 2013, retrieved February 25, 2013
- ^ Lopez, Tyler (March 13, 2013). "Colorado marijuana task force issues 58 recommendations on how pot should be grown, sold and taxed". 7 News. KMGH-TV. Archived from the original on 2014-01-02.
- ^ Flatow, Nicole (28 May 2013). "Six Ways Colorado Will Regulate Marijuana Like Alcohol". Think Progress.
- ^ "Gov. Signs Marijuana Bills Into Law". KKTV. AP. 29 May 2013. Archived from the original on 21 September 2013.
- ^ HB 13-1317 Implement Amendment 64 Majority Recommendation; HB 13-1318 Retail Marijuana Taxes; SB 13-283 Implement Amendment 64 Consensus Recommendations; HB 13-1325 Inferences For Marijuana And Driving Offenses; SB 13-250 Drug Sentencing Changes
- ^ Ingold, John (10 September 2013). "Colorado first state in country to finalize rules for recreational pot". The Denver Post.
- ^ Meyer, Jeremy P. (17 September 2013). "Denver council passes historic retail marijuana rules and regulations". The Denver Post.
- ^ Kall, David M. (28 May 2013). "Legislature approves historic marijuana sales and excise taxes in Colorado". Archived from the original on 12 November 2013. Retrieved 21 June 2013.
- ^ Roberts, Michael (13 September 2013). "Marijuana: Colorado NORML board opposes recreational pot tax measure". Westword. Archived from the original on 21 September 2013. Retrieved 19 September 2013.
- ^ The Denver Post Editorial Board (18 September 2013). "NORML needs to get on board on Colorado pot taxes". The Denver Post.
- ^ Meyer, Jeremy P. (5 November 2013). "Denver voters backing 3.5 percent tax on pot". The Denver Post.
- ^ "Sales Tax Rates Denver Treasury Division". Archived from the original on 11 September 2013. Retrieved 19 September 2013.
- ^ "Colorado Localities Make Own Rules Before Final Decision on Marijuana Sales". The New York Times. 13 June 2013.
- ^ "Amendment 64 - Use and Regulation of Marijuana" (PDF).
- ^ "Amendment 64 passes in El Paso County". Colorado Springs Gazette. Archived from the original on 2016-04-20. Retrieved 2016-04-02.
- ^ "Colorado Springs Election 2015: Readers wants to know stance on recreational marijuana sales". Colorado Springs Gazette. March 2015.
- ^ "Pot may be legal in Colorado, but it can’t be purchased in most large cities," Archived 2016-04-10 at the Wayback Machine Tacoma News Tribune, 16 March 2016.
- ^ Thomas E. Cronin and Robert D. Loevy, "John Suthers moves from pot law to potholes," Colorado Springs Gazette, 30 May 2015.
- ^ Colorado Springs Convention and Visitors Bureau, Recreational marijuana, accessed 31 Mar. 2016.
- ^ "Colorado Springs council approves moratoriums on cannabis clubs, medical marijuana". Colorado Springs Gazette. 13 October 2015.
- ^ "Medical marijuana industry still growing in Colorado," Colorado Springs Gazette, 25 March 2015.
- ^ "Marijuana money set for county coffers". The Pueblo Chieftain. 8 February 2015.
- ^ Lena Howland (27 August 2015). "Marijuana tax could fund Pueblo scholarships". Archived from the original on 12 April 2016. Retrieved 2 April 2016.
- ^ a b KKTV. "Ban On Retail Marijuana In Pueblo County?". Archived from the original on 2016-04-04. Retrieved 2016-04-02.
- ^ "Colorado collects $44 million in recreational marijuana taxes for 2014, below projections". Star Tribune. February 10, 2015. Archived from the original on February 11, 2015. Retrieved February 11, 2015.
- ^ "Colorado Marijuana Tax Data". Colorado Department of Revenue. February 2015. Archived from the original on April 4, 2016. Retrieved March 7, 2015.
- ^ "Colorado marijuana sales skyrocket to more than $996 million in 2015". The Cannabist. February 9, 2016. Retrieved April 28, 2016.
- ^ "Colorado surpasses $1 billion in marijuana tax revenue". 12 June 2019.
- ^ ""Where's all that marijuana money?" Colorado's pot dollars help schools, but maybe not as much as you think". 27 December 2018.
- ^ "Is Colorado's homeless surge tied to marijuana legalization?". TheGuardian.com. 27 February 2017.
- ^ "More teens are showing up in a Denver ER after using marijuana". NBC News. 5 May 2017.
- ^ "Study: Colorado sees car crash claim rates increase after legalization of marijuana". 22 June 2017.
- ^ Niraj Chokshi (5 March 2015). "Colorado gets sued by a third group over marijuana legalization". Washington Post.
- ^ Keegan Hamilton (August 25, 2015), "How America's Legal Weed Is Changing the Black Market and Influencing Mexican Cartels", Vice
- ^ Donald B. Verrilli, Jr.; et al. (December 16, 2015), States of Nebraska and Oklahoma, plaintiffs v. State of Colorado - on motion for leave to file a bill of complaint brief for the United States as amicus curiae (PDF), United States Department of Justice
- ^ a b Richard Wolf; Trevor Hughes (March 21, 2016), "Justices won't hear Nebraska, Oklahoma marijuana dispute with Colorado", USA Today
- ^ "Nebraska and Oklahoma v. Colorado Motion for leave to file a bill of complaint denied on March 21, 2016.", SCOTUSblog
- HUDAK, J. (2015) COLORADO'S ROLLOUT OF LEGAL MARIJUANA IS SUCCEEDING: A REPORT ON THE STATE'S IMPLEMENTATION OF LEGALIZATION. Case Western Reserve Law Review. 65, 3, 649-687, 2015. ISSN 0008-7262
- Blake, D., & Finlaw, J. (2014). Marijuana Legalization in Colorado: Learned Lessons. Harvard Law & Policy Review, 8(2), 1.
External links
[edit]2012 Colorado Amendment 64
View on GrokipediaBackground and Provisions
Historical Context
Prior to the passage of Amendment 64 in 2012, cannabis was classified as a Schedule I controlled substance under the federal Controlled Substances Act of 1970, which deemed it to have high abuse potential and no accepted medical use, subjecting possession and distribution to strict penalties nationwide.[11] At the state level, Colorado aligned with federal prohibitions after the Marijuana Tax Act of 1937 effectively criminalized non-medical use, though initial restrictions dated to 1917 with limited enforcement until the federal push.[12] By the 1970s, amid national decriminalization debates, Colorado reduced penalties for small-scale possession in 1975, treating up to one ounce as a petty offense rather than a felony, reflecting early critiques of prohibition's inefficacy.[13] In 2000, Colorado voters approved Amendment 20 by a 54% to 46% margin, amending the state constitution to permit the medical use of cannabis for patients with qualifying debilitating conditions, such as cancer or glaucoma, upon a physician's recommendation; this shielded qualifying patients and caregivers from state-level prosecution for possession up to two ounces or cultivation of six plants, making Colorado the ninth state to enact such protections.[9] Initially, participation remained low, with fewer than 150 registered patients by 2008, as the amendment lacked a regulated distribution system and relied on informal caregiver networks.[14] A 2009 U.S. Department of Justice memo under the Obama administration signaled non-interference with state medical programs, spurring rapid expansion: dispensaries proliferated to over 800 by 2010, and the patient registry swelled to over 120,000, amid reports of loose qualifying standards and physician recommendations resembling de facto recreational access.[10] This medical regime's unregulated growth fueled black-market persistence, enforcement challenges, and calls for reform, exemplified by the failure of Amendment 44 in 2006, which sought to decriminalize possession of up to one ounce for adults but garnered only 41% support.[15] Rising public support for broader access, driven by empirical data on prohibition's high enforcement costs—estimated at $40 million annually in Colorado alone—and disproportionate impacts on minority communities, set the stage for Amendment 64's recreational framework, aiming to impose taxation, licensing, and age restrictions absent in the medical system.[16][13]Core Provisions and Legal Changes
Amendment 64, enacted as Article XVIII, Section 16 of the Colorado Constitution, legalized the personal use, possession, and limited cultivation of marijuana by adults aged 21 and older, while mandating a state-regulated commercial framework modeled after alcohol regulation.[2][3] The amendment removed state criminal and civil penalties for compliant personal activities, such as possessing up to one ounce of marijuana or its equivalent in concentrate (up to eight grams), and cultivating up to six plants (with no more than three mature at a time) in an enclosed, locked space not visible to the public.[2] Transfers of up to one ounce without remuneration were permitted among adults 21 and older, provided they occurred out of public view and did not involve compensation or advertising.[2] These provisions took effect upon the governor's proclamation certifying the election results on December 10, 2012, though commercial sales required subsequent legislative implementation.[3] The amendment directed the Colorado Department of Revenue to license and oversee marijuana cultivation facilities, product manufacturing facilities, testing facilities, and retail stores, with regulations to be adopted by July 1, 2013, covering security, health and safety standards, potency testing, and restrictions on sales to minors.[2][3] Local governments retained authority to enact ordinances regulating or prohibiting these establishments, subject to voter approval via ballot measures in even-numbered year general elections for bans.[2] License applications were to commence on October 1, 2013, with issuance timelines of 45 to 90 days upon compliance verification.[2] The general assembly was required to legislate implementation details, including separate regulation of industrial hemp by July 1, 2014.[2] Taxation changes included a mandate for the general assembly to impose an excise tax on wholesale marijuana transfers, capped at 15% until January 1, 2017, with the first $40 million in annual revenue allocated to the public school capital construction assistance fund.[2][3] Sales taxes could apply at retail, but the amendment preserved exemptions for medical marijuana and emphasized that revenues would support public purposes like education and enforcement.[3] Federally, marijuana remained a Schedule I controlled substance under the Controlled Substances Act, creating ongoing conflicts where state-legal activities could still trigger federal penalties, though the U.S. Department of Justice issued enforcement guidance in 2013 prioritizing certain priorities over routine state-compliant operations.[3] The amendment's purpose clause cited efficient law enforcement resource allocation, revenue generation for public purposes, and adult personal freedom as rationales, superseding prior conflicting state laws while leaving medical marijuana provisions intact.[2]Campaign and Voter Approval
Pro-Legalization Arguments
Proponents of Amendment 64, led by the Campaign to Regulate Marijuana Like Alcohol, argued that legalizing and regulating marijuana possession, cultivation, and sale for adults over 21 would mirror the successful post-Prohibition model for alcohol, thereby depriving criminal organizations of a major revenue source estimated at billions nationally while enabling state oversight of quality and potency.[17][18] This regulatory framework, they contended, would implement age restrictions, licensing for commercial operations, and testing to prevent contaminated products, potentially reducing health risks from unregulated street marijuana more effectively than prohibition, which had failed to curb supply despite decades of enforcement.[17] Advocates emphasized economic benefits, projecting that taxation—such as sales and excise levies on legal sales—would generate substantial revenue for public education and infrastructure, with early estimates suggesting hundreds of millions annually in Colorado once the market matured, alongside job creation in cultivation, retail, and ancillary industries.[17]) They further claimed legalization would alleviate burdens on the criminal justice system, noting that in 2010, Colorado law enforcement made approximately 10,000 marijuana possession arrests, costing taxpayers over $40 million in processing and incarceration, resources that could redirect toward violent crimes.[17] Comparisons to alcohol underscored claims of relative safety, with proponents asserting marijuana is less addictive, less toxic to the body, and less associated with violence or overdose deaths than alcohol, which causes tens of thousands of U.S. fatalities yearly despite regulation; they argued treating marijuana analogously would prioritize adult liberty over ineffective bans, as evidenced by alcohol's legalization after Prohibition's repeal in 1933 ended widespread organized crime dominance in that market.[17][18] Additionally, regulation was positioned to better protect youth by removing the allure of forbidden fruit and enabling tracked distribution, contrasting with medical marijuana states where teen usage rates had not surged post-legalization.[17]Anti-Legalization Arguments
Opponents of Amendment 64, including Governor John Hickenlooper, numerous law enforcement officials, and the University of Colorado Board of Regents, argued that legalizing recreational marijuana would exacerbate public safety risks by increasing impaired driving and crime.[19][20][21] Hickenlooper expressed concerns that the measure's unknowns could lead to higher rates of marijuana use among youth and adults, straining public resources without proven benefits.[19] Law enforcement leaders, such as Denver District Attorney Mitch Morrissey, contended that legalization would complicate enforcement efforts, as marijuana's federal illegality under the Controlled Substances Act would create conflicting oaths for officers tasked with upholding both state and federal laws.[21] Health and developmental risks to adolescents were central to opposition claims, with critics highlighting marijuana's impairment of coordination, reasoning, and brain development in individuals under 25.[3] The Colorado Blue Book, an official voter guide, summarized arguments that greater accessibility would elevate addiction rates, underage consumption, and related health issues, including potential long-term cognitive deficits.[3] Religious leaders and coalitions like No on 64 echoed these points, asserting that normalization via legalization would undermine community standards and increase exposure for children.[22] Legal and regulatory critiques emphasized conflicts with federal law, where marijuana's Schedule I status exposed participants to prosecution, asset forfeiture, and banking restrictions, potentially destabilizing state finances and businesses.[3] Opponents warned of a "slippery slope" toward broader drug deregulation, arguing that distinguishing marijuana from harder substances lacked empirical grounding and could invite further erosions of prohibition.[23] Additionally, the amendment's entrenchment in the state constitution was faulted for limiting legislative adaptability, as it deferred key regulations to future lawmakers without sufficient safeguards against black market persistence or interstate spillover.[3] These positions were bolstered by endorsements from over 100 law enforcement agencies statewide, who predicted heightened trafficking and enforcement burdens.[21]Election Outcome and Immediate Aftermath
On November 6, 2012, Colorado voters approved Amendment 64, with 1,383,140 votes in favor (55.32 percent) and 1,116,894 votes opposed (44.68 percent), from a total of 2,500,034 ballots cast statewide.[24] The measure received majority support in urban and suburban counties, including Denver County where approval exceeded 70 percent, while rural areas showed stronger opposition.) Governor John Hickenlooper, who had publicly opposed the initiative during the campaign, issued a proclamation on December 10, 2012, certifying the election results and incorporating Amendment 64 into the state constitution, thereby legalizing possession of up to one ounce of marijuana and limited home cultivation for adults 21 and older effective that date.[25] On the same day, Hickenlooper signed Executive Order B 2012-004, creating the Amendment 64 Implementation Task Force to advise on regulatory frameworks for commercial production, distribution, and sales, which the amendment required the state to establish by October 1, 2013.[26] The federal response was measured, with the Obama administration indicating no immediate plans for heightened enforcement against state-sanctioned activities, though emphasizing that marijuana remained illegal under the Controlled Substances Act; this stance deferred direct conflict pending further review.[27] Local governments began debating opt-out options for commercial operations permitted under the amendment, while public health officials and law enforcement expressed concerns over potential increases in youth access and impaired driving, prompting early calls for interim enforcement guidelines.[28]Regulatory Implementation
Proposition AA and Tax Framework
Proposition AA, referred to the ballot by the Colorado General Assembly in May 2013, authorized specific taxes on recreational marijuana sales to implement the fiscal provisions of Amendment 64 while complying with the state constitution's Taxpayer's Bill of Rights (TABOR), which requires voter approval for new or increased taxes. The measure imposed a 15% excise tax on the wholesale transfer of unprocessed retail marijuana from cultivation facilities to retail stores or product manufacturers, collected at the point of first sale.[29] Revenues from this excise tax were allocated to the public school capital construction assistance fund, directly fulfilling Amendment 64's mandate that the first $40 million collected annually support school building projects, with any excess directed to the state's building excellent schools today fund or general purposes thereafter. In addition to the excise tax, Proposition AA established a dedicated 15% state sales tax on retail sales of recreational marijuana and marijuana products by licensed stores, applied to the retail purchase price and collected at the point of sale.[30] This sales tax revenue is distributed directly to local governments where the sales occur, providing them with funds for general purposes without state restrictions. Unlike recreational sales, medical marijuana transactions are exempt from both the 15% excise tax and the 15% dedicated sales tax, subjecting them only to the state's standard 2.9% sales tax plus applicable local taxes.[30] Local jurisdictions may also impose their own sales taxes on top of the state rate, typically adding 3-8% depending on the county or city. Voters approved Proposition AA on November 5, 2013, with 65.08% in favor and 34.92% opposed, generating an estimated initial annual revenue increase of $70 million.[31] The tax framework took effect upon recreational marijuana sales commencing on January 1, 2014, resulting in a combined state tax burden of approximately 30% on recreational purchases before local add-ons.[32] This structure incentivized vertical integration among businesses to minimize wholesale excise tax exposure but has been critiqued for creating competitive disadvantages for non-integrated operations due to the double taxation on value added.[33] Subsequent legislative adjustments, such as temporary reductions in the sales tax rate to 10% in early years to encourage market stability, have not altered the core 15% caps authorized by the proposition.[31]State Licensing and Oversight
The Colorado Department of Revenue's Marijuana Enforcement Division (MED), initially formed in 2010 to oversee medical marijuana, assumed primary responsibility for licensing and regulating recreational marijuana operations after Amendment 64's passage on November 6, 2012.[34][35] Amendment 64 mandated the creation of a state-regulated commercial framework, prompting the legislature to enact House Bill 13-1317 in May 2013, which authorized the MED to issue licenses for cultivation, manufacturing, retail sales, and testing while prohibiting public consumption and advertising to minors.[36][37] Licensing applications required applicants to submit detailed plans for facility security, employee background checks via the Colorado Bureau of Investigation, financial disclosures, and compliance with zoning restrictions, with initial fees ranging from $5,000 for retail stores to $7,500 for cultivation centers.[38] Temporary rules took effect May 28, 2013, allowing priority applications from existing medical marijuana licensees; permanent rules were adopted October 1, 2013, after public rulemaking hearings.[39] The first 348 retail licenses were issued December 5, 2013, enabling sales to commence January 1, 2014, at 165 stores statewide.[39] Licenses are renewed annually, with ongoing requirements for financial reporting and adherence to potency limits, such as no more than 1,000 milligrams of THC per serving in edibles.[38][40] Oversight mechanisms include mandatory integration with the state's Marijuana Enforcement Tracking Reporting and Compliance (METRC) system, implemented in 2017 for comprehensive seed-to-sale tracking to prevent diversion and ensure accurate taxation.[41] The MED conducts unannounced inspections, audits inventory, and enforces compliance through fines, suspensions, or revocations; for instance, in 2014, over 200 violations were cited in the first year of retail operations, primarily for record-keeping failures.[41][42] Interagency coordination involves the Department of Public Health and Environment for product testing standards and local law enforcement for underage sales stings, with the MED maintaining a database of over 2,500 active licenses by 2017.[43][42] Despite these controls, early implementation faced criticism for insufficient staffing, leading to delayed application processing times exceeding six months in 2014.[42]Local Government Responses and Bans
Amendment 64 granted local governments in Colorado the authority to prohibit or regulate commercial marijuana establishments, including retail stores, cultivation facilities, and manufacturing operations, while preserving statewide protections for personal adult use and home cultivation.[44] This "local control" provision, outlined in Section 16(5)(d), enabled jurisdictions to opt out of the commercial market without conflicting with the amendment's core legalization framework.[44] Following the amendment's passage on November 6, 2012, a significant number of municipalities and counties enacted bans on commercial activities. As of June 2017, approximately 65% of Colorado's 320 jurisdictions—encompassing cities, towns, and counties—had prohibited both medical and recreational marijuana stores.[32] Among counties, policies varied: an analysis of 53 of Colorado's 64 counties found that 38.8% (about 21 counties) banned all types of marijuana facilities, while 40.8% permitted all facility types.[45] By 2018, only 25 of 64 counties allowed any recreational cannabis businesses, indicating that 39 counties effectively banned commercial operations in unincorporated areas.[46] Urban and rural responses differed, with many conservative-leaning areas citing concerns over federal law conflicts, public safety, and community standards. Colorado Springs, the state's second-largest city, opted out shortly after legalization, prohibiting retail recreational sales through 2024 and maintaining a ban on commercial establishments to align with its military presence and family-oriented image.[47] Similarly, Montrose County banned sales in 2013, reflecting voter opposition in areas where Amendment 64 passed narrowly or failed.[48] Other examples include Grand Junction and Mesa County, which imposed bans on retail operations.[49] These prohibitions applied to licensing and land use, preventing state-licensed businesses from operating locally despite statewide authorization.[45] Over time, some jurisdictions revisited bans amid economic pressures, but as of 2019, nearly half of Colorado counties still prohibited recreational facilities, underscoring persistent local resistance.[45] Bans did not extend to personal possession, which remained legal across the state, but they limited tax revenue sharing and industry expansion in opting-out areas.[32]Legal Challenges and Conflicts
Federal Supremacy Issues
The enactment of Amendment 64 in 2012 created a direct conflict with the federal Controlled Substances Act (CSA) of 1970, which classifies marijuana as a Schedule I controlled substance with no accepted medical use and high abuse potential, rendering its possession, distribution, and cultivation illegal under federal law regardless of state authorization. Under the Supremacy Clause of the U.S. Constitution (Article VI, Clause 2), federal law preempts conflicting state laws, potentially invalidating state-sanctioned marijuana activities as facilitation of federal crimes. However, the U.S. Department of Justice (DOJ) exercised prosecutorial discretion rather than pursuing direct preemption challenges, recognizing limited federal resources amid shifting state policies.[50] In response to Amendment 64 and similar measures in Washington state, Deputy Attorney General James M. Cole issued the Cole Memorandum on August 29, 2013, outlining enforcement priorities that deprioritized prosecution of state-compliant marijuana activities meeting eight specific criteria, including prevention of distribution to minors, diversion to illicit markets or other states, and use on federal property.[50] This policy did not alter the CSA's legal status or concede federal supremacy but guided U.S. Attorneys to focus on core threats like cartel activity and youth access, effectively allowing Colorado's regulatory framework to operate without routine federal interference.[50] The memorandum was rescinded by Attorney General Jeff Sessions on January 4, 2018, via a new directive deferring to local U.S. Attorneys' discretion, yet federal non-enforcement persisted in practice, with no widespread raids or prosecutions of state-licensed operations in Colorado. Legal challenges invoking federal supremacy largely failed to halt implementation. In December 2014, Nebraska and Oklahoma filed an original jurisdiction suit against Colorado at the U.S. Supreme Court, alleging that Amendment 64 created a public nuisance by subsidizing illegal interstate trafficking and undermining federal drug laws in their jurisdictions. The federal government, through the Solicitor General, urged dismissal in December 2015, arguing that states lack standing to compel federal enforcement or challenge another state's non-prosecution of federal violations.[51] On March 21, 2016, the Supreme Court denied the petition without oral argument, effectively rejecting the supremacy-based claim and affirming that enforcement responsibility lies with federal authorities, not neighboring states. A separate 2015 federal lawsuit by Colorado sheriffs invoking the Supremacy Clause to invalidate Amendment 64 was dismissed for lack of standing, as local officials could not demonstrate direct injury from state policy.[52] These outcomes underscored that while theoretical preemption exists, practical federal deference has sustained Colorado's regime absent congressional action to reschedule or deschedule marijuana.Interstate Transport Lawsuits
In December 2014, the states of Nebraska and Oklahoma filed an original jurisdiction lawsuit against Colorado in the U.S. Supreme Court, alleging that Amendment 64's legalization of recreational marijuana facilitated illegal interstate transport of the substance into their jurisdictions, thereby undermining federal drug enforcement under the Controlled Substances Act. The plaintiffs contended that Colorado's regulated marijuana industry created a "dangerous gap" in the federal prohibition regime by producing large quantities of cannabis—over 200,000 pounds commercially in 2014 alone—that inevitably spilled across state lines via black market channels, as evidenced by increased highway seizures in Nebraska, which rose from an average of 242 annually pre-2013 to 336 post-legalization.[53] [54] They invoked the Supremacy Clause, arguing that Colorado's failure to prevent such diversion constituted state complicity in violating federal law, which prohibits interstate commerce in Schedule I substances like marijuana.[55] Colorado countered that Amendment 64 explicitly prohibits out-of-state transport and sales, with state law imposing penalties for exportation, and that enforcement of federal prohibitions remains the executive branch's prerogative rather than a state obligation.[56] The U.S. Department of Justice, under the Obama administration, filed a statement of interest supporting Colorado, asserting that the federal government retained discretion over enforcement priorities via the 2013 Cole Memorandum, which deferred prosecution of state-compliant marijuana activities, and that the lawsuit did not present a justiciable controversy absent direct state authorization of interstate trafficking.[53] [57] Nebraska and Oklahoma's claims were bolstered by reports of heightened border interdictions, including Nebraska State Patrol data showing marijuana seizures tripling after 2012, but critics noted that such diversion predated legalization and stemmed from broader federal non-enforcement rather than Colorado's policies alone.[58] A parallel challenge emerged in March 2015 when sheriffs from multiple Colorado counties, alongside counterparts in Nebraska and Oklahoma, filed a federal lawsuit in the U.S. District Court for the District of Colorado under the Supremacy Clause, seeking to enjoin Amendment 64's implementation on grounds that it encouraged interstate smuggling by normalizing production and possession.[52] The suit highlighted empirical increases in cross-border arrests and seizures, such as Oklahoma's reported uptick in marijuana trafficking cases linked to Colorado sources post-2012, but was dismissed by the district court in February 2016 for lack of standing, as the plaintiffs could not demonstrate direct injury traceable to state policy rather than individual actors or federal inaction.[59] The Supreme Court dismissed Nebraska and Oklahoma's suit on March 21, 2016, without reaching the merits, ruling 8-0 (with Justice Thomas dissenting on justiciability grounds) that the case failed to establish a cognizable injury, as Colorado neither legalized nor affirmatively promoted out-of-state transport, and any federal law violations were matters for congressional or executive resolution rather than interstate litigation.[55] This outcome preserved Colorado's regulatory framework but underscored ongoing tensions, with post-dismissal data indicating persistent diversion—Nebraska seized over 1,000 pounds of Colorado-origin marijuana in 2016 alone—prompting calls for enhanced federal intervention that did not materialize under subsequent administrations.[60] The decisions reinforced that state legalization does not compel federal enforcement against ancillary interstate effects, though empirical evidence of smuggling persisted, challenging claims of contained legalization impacts.[61]Fiscal and Economic Effects
Tax Revenue and Allocation
Amendment 64 authorized the Colorado General Assembly to impose a 15 percent excise tax on wholesale transfers of retail marijuana, calculated on the total sales price or average market price per unit, whichever is greater. In November 2013, voters approved Proposition AA, which enacted a 15 percent specific sales tax on retail marijuana purchases, in addition to the state's standard 2.9 percent sales tax and any applicable local taxes. These taxes took effect with the start of recreational sales on January 1, 2014, generating revenue primarily through licensed sales tracked by the Colorado Department of Revenue.[62] Of the 15 percent retail sales tax revenue, 10 percent is distributed monthly to local governments based on the proportion of marijuana sales tax collected in each jurisdiction, while the remaining 90 percent goes to the state.[63] The state's portion is allocated as follows: 85 percent to the Marijuana Tax Cash Fund (MTCF), with the balance split between the General Fund and other priorities; recent legislative adjustments, such as those in 2025, have modified shares to prioritize MTCF and related funds over local distributions.[64] The MTCF supports public school capital construction, behavioral health programs, youth substance use prevention, and regulatory enforcement, with expenditures required in the fiscal year following collection. Excise tax revenue is directed first to cover up to $40 million annually for the Public School Capital Construction Assistance Fund, with excess transferred to MTCF or, in fiscal years like 2024-2025, fully to school construction funds per statutory changes.[65] Cumulative tax and fee collections from recreational marijuana exceeded $3 billion from 2014 through August 2025, peaking at approximately $425 million in fiscal year 2020-2021 before declining to $282 million in the subsequent fiscal year amid market saturation and illicit competition.[66] Annual revenue reports from the Department of Revenue show steady growth through 2019, followed by variability tied to sales volume, which reached $2.2 billion in 2023 but has since softened.[67]Industry Expansion and Employment
Following the implementation of recreational marijuana sales on January 1, 2014, the number of licensed cannabis businesses in Colorado expanded rapidly from an initial base of 649 active licenses (156 recreational retail stores and 493 medical marijuana stores). By late 2016, active licenses approached 3,000, reflecting a more than 70% increase driven by new entrants in cultivation, manufacturing, and retail sectors under the Marijuana Enforcement Division (MED) oversight. This growth corresponded to surging sales, with total medical and recreational marijuana sales exceeding $15 billion cumulatively from 2014 through August 2023, peaking at over $2.5 billion annually in recent years before moderating. However, by 2024, the total number of licenses had declined more than 16% year-over-year amid market saturation, interstate competition, and oversupply, reducing active businesses to around 2,700.[67][32] Employment in the regulated cannabis industry mirrored this trajectory, with occupational licenses serving as a direct measure of workforce participation. As of September 2016, Colorado had issued 28,847 valid occupational licenses for marijuana-related jobs, encompassing roles in cultivation, processing, retail, and testing. By July 2023, the state had issued 36,209 employee badges, indicating a workforce peak that represented approximately 0.7% of total state employment based on active licenses. Between 2014 and 2017 alone, around 38,000 occupational licenses were granted, contributing to net job additions that accounted for about 3% of Colorado's overall employment growth from 2018 to 2022. Recent data shows contraction, with an estimated 10,500 jobs cut from February 2022 to February 2023, reducing the workforce to roughly 27,856 amid business closures and operational efficiencies.[68][69][70]| Year/Period | Approximate Active Licenses | Estimated Employment (Occupational Licenses/Badges) |
|---|---|---|
| January 2014 | 649 | Minimal (pre-recreational rollout) |
| September 2016 | ~3,000 | 28,847 |
| 2014–2017 | N/A | ~38,000 issued |
| July 2023 | ~2,700 | 36,209 |
| 2022–2023 | Decline of 16% | Down to ~27,856 (net loss of 10,500) |