Full Measure After Hours Episode: After Hours: Legalized Marijuana—Up in Smoke? Release Date: May 1, 2025 Host: Sharyl Attkisson

Introduction

In this episode of Full Measure After Hours, host Sharyl Attkisson delves deep into the complex landscape of legalized marijuana in the United States. With recreational use now legal in 24 states and Washington, D.C., and medical use permitted in a total of 39 states plus D.C., the podcast explores the multifaceted outcomes of this widespread legalization effort. Sharyl, a seasoned investigative journalist, examines both the successes and the unexpected challenges that have emerged over the past decade.

State of Legalization: A Complicated Success

Sharyl begins by outlining the current state of marijuana legalization, emphasizing that while the initial promise of dissolving the black market hasn't fully materialized, the experiment is far from straightforward. Marijuana remains illegal federally, creating a precarious environment for businesses operating legally at the state level. This dichotomy has led to significant challenges, including limited access to banking services and complicated tax implications under IRS rules.

Notable Quote:

"Marijuana is technically illegal. Still, even in all the states that say they've legalized it, it's illegal from a federal standpoint." — Sharyl Attkisson [00:09]

Interview with Mike Getlin: Industry Insights and Challenges

Sharyl interviews Mike Getlin, a key figure in Oregon's cannabis industry and PR specialist for Nectar Markets, the state's largest recreational cannabis dispensary chain. Mike provides an insider's perspective on the successes and pitfalls of Oregon's legalization efforts.

Oregon's Legalization Journey

Mike outlines the progression from one of the first medical marijuana programs to the rollout of adult use in 2016. He grades Oregon's efforts, highlighting strengths in market adoption, product quality, and public health safeguards, while pointing out weaknesses in the business climate and regulatory infrastructure.

Notable Quote:

"We definitely get an A for the best products around. The diversity and quality of product development in Oregon has been uniquely good across the country." — Mike Getlin [03:34]

Federal vs. State Conflict

A significant hurdle discussed is the federal illegality of marijuana, which forces businesses to operate primarily in cash due to banking restrictions. Mike explains how this impacts everything from securing loans to managing taxes, leading to a higher operational cost that stifles business growth.

Notable Quote:

"Our federal tax burden is infinitely higher than any other industry in America right now." — Mike Getlin [08:08]

Community and Consumer Experience

Despite these challenges, Mike highlights the positive community aspects, where consumers have access to high-quality products at competitive prices, fostering a safe and engaging consumer environment.

Notable Quote:

"We've created a world in which consumers feel safe. They have access to interesting and compelling products at price points that are unmatched in most of the rest of the country." — Mike Getlin [04:49]

Future Outlook

Looking ahead, Mike remains cautiously optimistic, suggesting that ongoing product improvements and consumer demand will drive the industry forward, even amidst federal uncertainty.

Notable Quote:

"We're just going to keep making better products and getting them in people's hands at better prices." — Mike Getlin [12:46]

Challenges Faced by Small Business: Interview with Myron Chatowitz

The episode also features Myron Chatowitz, founder of Essential Farms, a small organic marijuana farming operation in Oregon that ultimately failed due to regulatory pressures. Myron's story underscores the harsh realities many small businesses face in the cannabis industry.

Early Success and Regulatory Hurdles

Myron recounts the initial optimism and substantial sales growth, which were abruptly halted by new state regulations requiring stringent mold testing. This regulatory shift forced him out of business, even though the requirements were later rescinded.

Notable Quote:

"Misplaced regulation puts you out of business and the fear of future." — Myron Chatowitz [17:17]

The Cost of Compliance

He criticizes the regulatory environment, attributing the failure of small businesses to the high costs and uncertainty imposed by ever-changing laws. Myron argues that large corporations have the resources to navigate these challenges, effectively sidelining smaller operators.

Notable Quote:

"How am I going to compete with a company that's raising money on a $3.4 billion opportunity?" — Myron Chatowitz [19:01]

Future of the Industry

Myron predicts increased consolidation within the cannabis market, with big corporations eventually dominating due to their ability to absorb regulatory costs and leverage significant financial backing. He remains skeptical about the prospects of nationwide legalization in the near future.

Notable Quote:

"I don't see national legalization anytime soon. I just don't think it's going to happen." — Myron Chatowitz [25:19]

Regulatory Impact and Market Dynamics

Both Mike and Myron highlight how federal policies, particularly IRS Rule 280E, restrict marijuana businesses from deducting essential expenses, leading to unsustainable financial practices. This tax regulation, coupled with the lack of access to traditional banking, creates a bottleneck that only well-funded corporations can navigate successfully.

Notable Quote:

"The business failure rate and the type of economic damage that it has done to many of my friends and colleagues has been really tough to watch." — Mike Getlin [05:28]

Social and Moral Implications

The podcast also touches on the societal dilemmas posed by legalization, especially concerning youth consumption and community safety. Mike emphasizes the importance of responsible consumption and contrasts marijuana with alcohol, noting fewer associations with violent behavior.

Notable Quote:

"Nobody, you don't hear a lot of stories about people smoking a joint and then go getting in a knockdown, drag out, bar fight with a bunch of bikers." — Mike Getlin [15:00]

Conclusion and Final Thoughts

Sharyl wraps up the episode by reflecting on the duality of legalized marijuana as both a burgeoning industry and a source of unforeseen challenges. The interviews underscore a critical need for balanced regulation that supports business growth while ensuring consumer safety.

Closing Quote:

"It's a successful industry? I don't think so. I think there are people who are surviving, but not the way, if you're ever in regular business my whole life." — Dina Chatowitz [23:40]

Sharyl invites listeners to watch the full episode airing on May 4th and to engage with additional resources and content available on her website and YouTube channel.

Key Takeaways

• Regulatory Challenges: Federal illegality creates significant operational hurdles for state-legal businesses, including banking restrictions and prohibitive taxes.

• Business Viability: High failure rates among small cannabis businesses highlight the need for more supportive regulatory frameworks.

• Market Dynamics: Large corporations are increasingly positioning themselves to dominate the market, potentially squeezing out smaller operators.

• Consumer Impact: Despite challenges, consumers benefit from high-quality products and a safe purchasing environment.

• Future Outlook: The industry's trajectory remains uncertain, with potential for further consolidation and slow progress toward nationwide legalization.

For a more comprehensive exploration of the topic, including full interviews and visual content, tune in to Full Measure After Hours on Sunday, May 4th.