A new study from the University of Iowa suggests businesses do better in states that legalize medicinal marijuana.

Professor Tong Yao says it’s not likely the result of offices full of potheads helping their employers be more productive. Mr. Yao, a professor of finance, said legalizing medical marijuana instead sends a signal about the state’s culture that attracts creative and productive people to live and work there.

“In addition to providing a host of medical benefits, legalizing marijuana can also give the state a ‘cool image,'” Mr. Yao said, in a Tippie College of Business blog post. “Highly skilled and creative human capital is especially appreciative of open, new, and divergent policies, such as legalized medical marijuana, and that can potentially help states retain and attract more productive and creative workers.”

Mr. Yao said the study looked only at states that legalized marijuana for medical use and not for recreational use.

Mr. Yao is the Keith L. Cook Professor of Finance at the University of Iowa’s Tippie College of Business.

The Study

Mr. Yao looked at the financial results of more than 13,000 publicly traded companies between 2001 and 2022 and found that when states legalized medical marijuana:

• Corporate valuation increased in 21 of 38 states. * Gross profit per employee and gross sales per employee each increased by more than $8,000.
• Patents increased by 10.4% across all 38 states, and the economic value of those patents increased by 22%, as states with legalized medical marijuana were more likely to retain existing inventors and attract new inventors from other states who are productive and create more value.

He said party politics seemed to play little role in the results, as the findings applied to states regardless of whether they had a Democrat or Republican governor.

Mr. Yao said that California, the first state to legalize medical marijuana in 1996, had a burst of creativity and business growth in the years that followed. The effect has become weaker over time, however. As more states legalize weed for medical purposes, the benefits are less dramatic.

Mr. Yao’s study, “Do firms get high? The impact of medical marijuana legalization on firm performance and corporate innovation,” was published in the journal Financial Management. His co-authors are Jue Wang, a former Tippie doctoral student now at Nankai University in China, and Shagun Pant of the University of Illinois.

Abstract

“We find that state-level medical marijuana legalization has a positive financial impact on firms, likely by affecting firms’ human capital. Firms headquartered in marijuana-legalizing states receive higher market valuations, improve employee productivity, and increase innovation. Exploiting inventor mobility data, we directly test the human capital channel and find that states legalizing marijuana are able to retain inventors who become more productive and recruit more innovative talents from out of state.”

The Last in Blue, like it's cousin, the Avation, had a good flourall flavor to it. It was a toss up between my wife and I which one we prefer.

• 1.5 oz gin
• 0.25 oz creme de violette
• 0.75 oz lemon juice
• 0.5 oz simple syrup
• 3 drops orange flower water
• Blue curacao, to layer
• Garnish with flowers (or in my case orange wheel)

Add the gin, creme de violette, lemon juice, simple syrup, and orange flower water to a shaker with ice; shake until chilled and pour into a coupe. Layer it with blue curacao. Garnish with flower petals if you got them.

This was not only a pretty drink, it tasted really good. I wish the pear would have been more forward then subtle but it was still really tasty. I'm going to have to make this more.

• 1.5 oz gin
• 1 oz lemon juice
• 0.75 oz pear syrup
• 1 egg white
• Garnish with a star anise

To make the pear syrup I cut up a pear into 1inch chunks and crushed them into juice using a garlic press. I got almost exactly 1.5 oz doing this, enough for two drinks, I then added a splash of simple syrup to bring it up to 2x 0.75 oz. (Next time I'll put more effort into this step and boil down the pear juice to get more flavor and naturally sweeten it.) I then poured everything together and shook for a full minute then added ice and shook until cold. Topped it off with a star anise. It was a hit with the wife as well.

• 2 oz. Bourbon.
• 1/2 oz. Cynar.
• 3 dashes Angostura Bitters.
• 1/2 oz. Clove and Cardamom Simple Syrup.
• Garnished with Star Anise

I made the clove and cardamom simple syrup by grinding up 6 cloves and equal pay cardamom seeds powder, adding 1/2 oz. sugar and 1/2 (ish) oz boiling water, then letting it cool. This maybe excessive for some on the spices.

This was a really good drink, the spices went well with the fire we had going. My wife thought it was a bit strong, but I thought it was perfect.

In the Thanksgiving spirit I put this drink together, it was pretty good, mostly just a slightly spiced white Russian. 2 oz. Vodka, 1 oz. Kahlua, 2 oz. of pumpkin spiced whipped cream (it was fairly runny and liquidly), Cinnamon powder.

Poured vodka, coffee liquor, and the spiced pumpkin whip cream over ice and stirred to get the whipped cream to mix. Topped with some more pumpkin spice whipped cream and garnished with cinnamon powder.

2 oz. Gin, 1/2 oz. Lemon juice, 1/2 oz. Like juice, 1/2 oz. Simple syrup, 3 dashes of Orange bitters, 1 oz. Cream, 1 egg white, 2 oz. Soda water. Lime peel. Shake all the ingredients expect the soda water, for while a minute. Then add ice and shake again until chilled. Strain into a glass and add the soda water and garnish with a lime peel. Didn't worry about dropping the peel in, it will just sit on the now semi-solid top.

I made this for my wife and one for me. She loved it, but it wasn't for me, to much lemon and lime. The cream, egg white, and soda water made the top half of the drink semi-solid and was fun to drink. Definitely a cool drink to make and try.

CALHOUN COUNTY, Iowa —

A single, brand-new, ambulance sits outside of the Calhoun County EMS building in Rockwell City. Once it gets the registration from the state, it'll be up and running. Though, most days, Calhoun County only has the staff to provide a single ambulance for the entire county.

"Our community is stressed, really stressed, really pulled to the max to cover what is needed," said Luke Winkelman, interim director.

Some days another one-person crew serves as a backup and can respond when the other ambulance crew is on another call. Though, that one-person crew needs a driver to take someone to a local hospital.

Winkelman says the county hasn't missed any EMS calls, but there are times when people are put on hold waiting for an ambulance.

"The people that are still left [working] are going for broke, emotionally and physically," Winkelman said, describing long shifts and extra overtime for the five workers still serving.

Last year, KCCI Investigates traveled to Calhoun County after some workers left because of a change in pay. Now, the number of employees is basically half what it was a year ago.

The county is actively looking for people who want to become EMS workers, Winkelman says they'll pay for training.

"We're looking for strong applicants that have a strong desire to care for their community and help where it is needed most," he said.

Voters in Calhoun County turned down a chance to deem EMS "essential" and raise taxes to better fund the service. Calhoun County was one of three in the state who turned it down, voters in five others approved the move.

Calhoun County is one of three to receive a $50,000 grant to test a new state pilot program that treats EMS like Uber. The app, once implemented, will send the closest staff member to respond to an emergency before and ambulance can arrive. Winkelman just hopes he has the staff.

"I would be lying if I said I wasn't struggling to get the Iowa United First State off the ground, as well as meet the needs of EMS," he said.

KCCI Investigates has spent more than a year uncovering problems with Iowa's Emergency Medical Services. To watch an eight-part series, click here.

FAYETTE COUNTY, Iowa (KCRG) - As part of a month-long investigation into drug trafficking, the Fayette County Sheriff’s Office and West Union Police Department have executed 10 drug narcotic search warrants and arrested 13 individuals.

On July 11th, 2023, officials arrested 29-year-old Ryan Smith for operating his vehicle while intoxicated. A drug canine and search warrant was requested, and after gaining approval, officials located and seized distribution amounts of methamphetamine, multiple grams of marijuana, and a scale. An additional search warrant was executed at his residence. More methamphetamine, marijuana, and paraphernalia were found. 61-year-old Bryon Smith was also arrested and charged.

On July 12th, officials conducted two more drug-related search warrants where they found heroin, morphine, meth, THC wax/marijuana, ledgers, scales, loaded syringes, pill crushers, baggies, and other paraphernalia. 51-year-old Jeff Blue, 23-year-old Drake Duffield, 38-year-old Nathan Slaughter, and 45-year-old Misty Cook were all arrested.

On July 14th, multiple law enforcement agencies worked together to execute five more drug narcotic warrants relating to the above investigation. Seven more individuals, all from West Union, were arrested on drug-related charges.

In total, the following 13 people were arrested and charged with:

Ryan Smith - Operating While Intoxicated, Possession of Methamphetamine with Intent to Deliver, Possession of Marijuana with Intent to Deliver, 2 counts of Possession of a Controlled Substance, and Possession of Drug Paraphernalia.
Byron Smith - Possession of Methamphetamine 1st Offense, Possession of Marijuana 1st Offense, and Possession of Drug Paraphernalia
Jeff Blue - Possession with Intent to Deliver Methamphetamine, Possession with Intent to Deliver Morphine, Possession of Heroin, Possession with Intent to Deliver Marijuana, 3 counts of Possession of a Controlled Substance - 3rd Offense, and Possession of Drug Paraphernalia.
Drake Duffield - Sex Offender Registry Violation, Possession of Methamphetamine and Marijuana - 1st Offense, and Possession of Drug Paraphernalia.
Nathan Slaughter - Possession of Methamphetamine and Marijuana - 3rd Offense, and Possession of Drug Paraphernalia
Misty Cook - Possession of Methamphetamine and Marijuana - 3rd Offense, and Possession of Drug Paraphernalia
Warren Harvey - Possession of Methamphetamine - 3rd Offense, Possession of Marijuana - 3rd Offense, Gathering Where Controlled Substances are Used (Methamphetamine), Gathering Where Controlled Substances are Used (Marijuana), and Possession of Drug Paraphernalia.
Ashley Murphy - Gathering Where Controlled Substances are Used (Methamphetamine), Possession of Methamphetamine - 1st Offense, Possession of Marijuana - 1st Offense, Gathering Where Controlled Substances are Used (Marijuana), and Possession of Drug Paraphernalia.
Jodie Wakeford - Gathering where Controlled Substances are Used (Methamphetamine). Possession of Methamphetamine - 2nd Offense, and Possession of Drug Paraphernalia.
Rachel Latham - Gathering Where Controlled Substances are Used (Methamphetamine), Possession of Methamphetamine - 1st Offense, and Possession of Drug Paraphernalia.
Roger Nichols - Possession of Controlled Substance 3rd Offense (Methamphetamine), Possession of controlled substance 3rd Offense (Marijuana), and Possession of Drug Paraphernalia.
Kaben Schmelzer - Possession of Controlled Substance 2nd Offense (Methamphetamine), Possession of Controlled Substance - 2nd Offense (Marijuana), and Possession of Drug Paraphernalia.
Madison Williams - Possession of Controlled Substance - 2nd Offense (Methamphetamine), Possession of Controlled Substance - 2nd Offense (Marijuana), and Possession of Drug Paraphernalia.

Officials say that more arrests and more charges are expected to be made in connection to the investigation.

DES MOINES, Iowa —

The city of Des Moines is taking an embattled Ingersoll bar to court.

The city says Zora Bar and Rooftop is a public safety nuisance. The lawsuit, filed last week, describes a long list of police calls and incidents at Zora in the last eight months. Those police calls include a homicide that happened in the bar's parking lot last November. The lawsuit states that police have been called to Zora and the surrounding area 54 times for disturbing the peace and quiet.

Last week, shots were fired around bar close.

The bar's owner, Edwin Allen, is demanding a jury trial.

“The city filed to abate the nuisance and has asked for such remedial action as the Court deems reasonable to abate the nuisance," Des Moines City Manager Scott Sanders said in a statement to KCCI.

The lawsuit uses a new state law that allows cities to sue bar owners and their establishments and request remedial action by a judge. That action, according to the new law, can be a temporary closure of the establishment, revocation of a liquor license for a period of time, change in business practice or posting of bond.

The city says a public safety nuisance exists because of multiple riots and the use of a weapon at Zora. Riots, according to state law, are where three or more people are together causing violence or property damage. The lawsuit says, by those standards, a riot in the parking lot happened on April 2, February 26 and July 9.

KCCI was scheduled to do an interview with Allen. Though on Monday he said the timeframe didn't match up to his schedule. He disputes virtually all of the complaints made by the city in the lawsuit and says he's tried to work with police proactively to curb violence.

Des Moines Police Sgt. Paul Parizek says police have increased patrols in the neighborhood.

"Those have actually resulted in the recovery of illegal drugs, and at least five illegally possessed firearms just since March," Sgt. Parizek said. "So, our efforts are there, and they're very successful."

Zora is currently up for sale.

The public nuisance law also states that once it is filed, a bar owner will be notified to stop serving alcohol at 10 p.m. The Iowa Alcoholic Beverages Division says Zora has been notified to stop serving by 10 p.m.

CEDAR RAPIDS, Iowa (KCRG) - The number of ways to consume legal THC in Iowa is growing. Bars and liquor stores are now offering drinks infused with THC, the main psychoactive compound in marijuana and hemp.

Michael Williams said he’s a regular at Old Neighborhood Pub in Cedar Rapids. When the bar started carrying drinks infused with THC, he gave them a try.

“My review of it is, in and of itself, [it] is a little on the relaxing side,” said Williams.

That was after he took a sip; before there was some uncertainty about what he was trying.

“I asked quite a few questions, you know, to get an educated understanding of what [the drinks] were,” he added.

In 2019, Governor Reynolds signed into law the Iowa Hemp Act, which was then approved by the USDA in 2020. With that law, hemp plants are no longer controlled substances and products derived from hemp are legal. According to the Department of Agriculture and Land Stewardship, hemp plants must have THC levels of 0.3% or less or be destroyed.

In January, Climbing Kites registered as a business in Iowa. The company proclaims it is “Iowa’s first cannabis-infused social beverage.” It also appears to have opened the floodgates.

“We actually got [THC drinks] before we were able to put them on our shelf. But we were able to get our permit, I think it was three weeks ago. We’ve actually had two orders go through already,” said Andrea Van Hoeck, owner of Old Neighborhood Pub.

Jason Wilkerson, owner of Local Craft Cellar, said the products have proven “extremely popular.”

“Collectively, I would say that Climbing Kites brand is outperforming 90% of our craft beer brands,” said Wilkerson. “And we sell a lot of craft beer.”

Recreational marijuana is still illegal in the state of Iowa, but Williams and Van Hoeck hoped THC drinks were indicators of change.

“Everybody around us right now is legal except for Iowa,” said Van Hoeck, adding, “Nebraska is working on it.”

Williams said the drinks were “baby steps” toward marijuana legalization. “Our state is so behind on what most of the country is doing at this point in time.”

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