Teens aren’t more likely to use cannabis despite legalization

TEEN USE
Survey shows teen cannabis use decreased

What happened: New data from the Center for Disease Control and Prevention (CDC) shows  that cannabis use among US high school students has declined since 2013. 

The 2023 Youth Risk Behavior Survey found that 17% of high schoolers reported using marijuana in the past month — compared to 23% in 2013. 

The decline was more pronounced among male students, dropping from 25% in 2013 to 15% in 2023. Female students saw a smaller decrease, from 22% to 19%. 

Although there appears to be a slight 1% uptick in use from 2021 to 2023, the CDC described this change as statistically insignificant and instead says there has been “no change” between 2021 and 2023. 

It is important to note, however, that marijuana was the most commonly used illicit drug among Americans. 

Twenty-two percent of Americans aged 12 or older (61.8 million people) used it in the past year, according to the National Survey on Drug Use and Health, a yearly survey conducted by the Substance Abuse and Mental Health Services Administration (SAMHSA), a federal agency tasked with making substance use and mental disorder information, services, and research more accessible. 

Why it matters: These data undercut concerns that states legalizing cannabis would increase teen use, an argument often cited by anti-legalization groups.

In fact, cannabis use among teens has decreased as more and more states are legalizing both medical and recreational cannabis. 

What they’re saying: “Do not let fear-mongering fool you. The facts are clear. In study after study, we’re seeing teen marijuana use decline when states legalize recreational adult use marijuana,” Morgan Hill, a spokesperson of the pro-legalization Smart & Safe Florida said. “These studies are proof that the growing trend of legalization is in fact coming in tandem with declined use among young people across the country.”

Smart Approaches to Marijuana (SAM), an anti-legalization group, said the fact that tobacco use declined while cannabis use increased in the NSDUH survey is the “next public health crisis.” 

“We have entered the phase of Big Tobacco 2.0, with the legalization of marijuana and the ensuing emergence of the profit-driven marijuana industry,” the group said, though it didn’t address the decrease in teen use in the Youth Risk Behavior Survey.

“Sensational claims that adult-use legalization laws are linked with greater marijuana use by teens are simply not backed by reliable data,” Paul Armentano, deputy director of the pro-legalization National Organization for the Reform of Marijuana Laws (NORML), said. 

“These government findings ought to reassure lawmakers that cannabis access can be legally regulated in a manner that is safe, effective, and that does not inadvertently impact young people’s habits.”

Our take: Correlation does not always equal causation. The Youth Behavior Risk Survey also indicated reductions in other substance use, besides cannabis — including alcohol and illicit drugs — among high school students. 

There may be larger social trends at play other than states legalizing cannabis. But a big takeaway from the survey is that legalizing cannabis hasn’t, at least so far, caused more teens to use the drug. 

That’s an argument we’re ready to put to bed. 😴

-CB

“As we legalize it, I start to agree a lot more because, you know, it’s being legalized all over the country,” Former President Donald Trump said at a press conference at his Florida residence, when asked about his adopted home state’s push to legalize cannabis.

“Whether that’s a good thing or a bad thing — it’s awfully hard to have people… in jail right now for something that’s legal. So I think obviously there’s a lot of sentiment to doing that.”

Trump might be paying attention to the polls on how popular legalization is among Americans. Is cannabis reform the unlikely partisan unifier?

SHORT REPORT
Despite rumors, Citadel isn’t shorting cannabis stocks

What happened: After hedge fund billionaire Ken Griffin pledged millions to defeat cannabis legalization in Florida, rumors started to bubble up on social media that his firm, Citadel, held a short position — essentially a bet that the stock would fall — in AdvisorShares’ MSOS, an exchange-traded fund (ETF) that tracks US cannabis companies.

A spokesperson for the company clarified that the shares are held by Citadel Securities, a separate market-making entity from Citadel the hedge fund, and do not reflect a deliberate short position in MSOS. 

Though founded by Griffin, Citadel Securities holds stock for clients to trade, and doesn't trade itself. The spokesperson said that Citadel Securities holds both puts and calls in MSOS to allow their clients to bet the stock will increase (calls) or fall (puts), and that the hedge fund side doesn’t own any shares of MSOS or other cannabis stocks.

What they’re saying: “Anyone who believes Ken’s genuine concerns for Florida’s families and future are connected to an ETF is clearly stoned,” the spokesperson said. 

Why it matters: Griffin backing the anti-legalization campaign in Florida is likely an extension of his other donations to Republican-aligned and other conservative causes, rather than financially motivated. 

-JB

FROM THE OUTLAW REPORT*
Maryland smokes 44 tons of cannabis bud in six months

Driving the news: Maryland’s cannabis market is ablaze, with consumers demonstrating an insatiable appetite for the newly legalized adult-use plant. A staggering 44 tons of cannabis flower, equivalent to approximately 88,000 pounds, has been consumed by Maryland residents in just the first six months of 2024.

Why it matters? This voracious consumption has fueled a booming industry, generating a substantial $377 million in adult-use sales alone during this period. An additional $180.2 million was generated in medical sales, but the medical market continues to be dwarfed by the new adult-use market.

What they’re saying:  "Our new adult-use cannabis market isn't only generating extraordinary economic activity – it's also helping us build new pathways to work, wages, and wealth for all," Gov. Moore said in a July press release.

What’s next? While these numbers paint a picture of a thriving industry, it's important to note that this is just the beginning. As the market matures and consumer preferences evolve, it is likely that we will see even more dramatic growth in the coming years. However, with this rapid expansion comes a host of challenges, including the need for robust regulations, infrastructure development, and social equity initiatives to ensure that the benefits of legalization are shared equitably across the state.

Read the full story and get subscribed to The Outlaw Report.

*Each week, Cultivated will bring you the most important and timely stories from Maryland, D.C., and Virginia in partnership with The Outlaw Report.

Another bumper crop of cannabis earnings for you today:

• Cresco Labs reported a $51 million net loss on $184 million of revenue, 51% gross margin — a measure of how much of each dollar of revenue is turned into profit. 

• The Cannabis Company (formerly Columbia Care) reported a $13 million net loss on $125 million of revenue, with a 38.5% profit margin. 

• Canadian cannabis firm Cronos Group reported an $8.7 million net loss on $27.8 million of revenue — up 46% year-over-year. 

Quick take: Green Thumb won the week, followed by Trulieve. More next week.

Maine’s unusual snitch 💡
Maine’s Versant Power proposed a controversial measure to report suspected illegal cannabis grow operations — which often incur unusually high electricity usage — directly to law enforcement. This proposal intended to combat transnational crime, but faces criticism for potentially infringing on customer privacy and overstepping utility roles. Read more. 

Hemp crackdown continues 🥵
A coalition of anti-drug, law enforcement, and health groups urged Congress to ban hemp-derived cannabinoids, like delta-8 THC, via an amendment to the 2024 Farm Bill. This amendment would tighten the definition of legal hemp to only include naturally occurring cannabinoids, not those created in a lab. Read more. 

Michigan sets the rules 🔨
The Cannabis Regulatory Agency in Michigan published a “disciplinary schedule” outlining specific fines and penalties for marijuana businesses that violate state regulations, in response to industry complaints about inconsistent enforcement. Read more. 

Colorado 🔫’s and 🌿
A Colorado initiative to protect the Second Amendment rights of cannabis consumers failed to make it to the November ballot due to insufficient signature collection. The initiative aimed to prevent the denial of concealed handgun permits based on legal cannabis use under state law. Read more. 

Nasdaq-listed medical cannabis firm Bright Green raised $3.5 million and said it partnered with an investment bank to seek $15 million of debt financing. 

The percentage of high school students who used cannabis has declined over the past ten years, according to the federal Youth Risk Behavior Survey.

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Delaware officials will start accepting adult-use marijuana license applications ahead of schedule this month | Marijuana Moment