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California Grant Program Uses Marijuana Tax Revenue To Help People Harmed By War On Drugs

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California announced this week that grant applications are now available to promote public health and economic justice for communities disproportionately impacted by the war on drugs. And those grants are being funded by legal marijuana tax revenue.

The Governor’s Office of Business and Economic Development said the California Community Reinvestment Grants (CalCRG) program is meant to give eligible health departments and community-based nonprofit organizations resources to support “job placement, mental health treatment, substance use disorder treatment, system navigation services, legal services to address barriers to reentry, and linkages to medical care for communities disproportionately affected by past federal and state drug policies, also known as the War on Drugs (WoD).”

“The mission of the CalCRG program is to advance health, wellness, and economic justice for populations and communities harmed by the WoD,” the solicitation says.

The state also described the guiding principles of the grant program: 

-Responsive to and focused on populations and communities disproportionately impacted by the war on drugs.

-Grounded in science and data, while being receptive to emerging and innovative approaches.

-Advancing whole person, trauma-informed care.

-Accountable to taxpayers and stakeholders.

Marijuana excise and cultivation taxes are funding the program. For the 2020-2021 fiscal year, $30 million in grants will be made available. That will increase to $40 million for 2021-2022 and then $50 million for 2022-2023. It will remain at $50 million for subsequent years. Last year, the program made its first round of awards, amounting to $9.6 million in support for 69 separate grantees.

The online portal to submit an application for this year’s grant round will open September 28 and close November 2.

The drug war “has disproportionately impacted communities of color, particularly low income African American/Black and Latino/Hispanic populations,” the solicitation says, detailing how people use and sell cannabis at similar rates across racial lines but that “African American/Black and Latino/Hispanic individuals have historically been arrested more frequently for marijuana violations.”

“Harsh federal and state drug policies enacted during the WoD led to the mass incarceration of people of color, decreased access to social services, loss of educational attainment due to diminished federal financial aid eligibility, prohibitions on the use of public housing and other public assistance, and the separation of families,” the document says. “Individuals from populations and communities in California that were disproportionately impacted by the WoD represent the CalCRG program priority populations. The CalCRG program aims to be a resource to address and repair the multi-generational impacts of the WoD.”

The same office behind this grant program also announced in April that it would be providing $30 million in funding for cannabis entrepreneurs from communities disproportionately impacted by the drug war.

As more states legalize cannabis, there’s been increased interest in ensuring that tax revenue from the market helps promote social equity for people from communities targeted by prohibition’s enforcement.

In May, for example, Illinois announced that it was distributing $31.5 million in restorative justice grants funded by marijuana taxes. The funds are designated for community assessment and planning initiatives as well as service delivery for those in economically distressed areas.

Meanwhile, local jurisdictions are also considering ways to revise where cannabis tax dollars should go.

A new budget proposal released in King County, Washington this week would shift $4.6 million in cannabis tax revenue away from the sheriff’s department and instead use the funds to vacate prior convictions for marijuana, among other programs.

In June, the Portland City Council approved an amendment to a proposed budget that would divest cannabis funds from the city’s police department.

Where Presidential Candidate Joe Biden Stands On Marijuana

Photo courtesy of Brian Shamblen.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

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Montana Governor Signs Marijuana Legalization Implementation Bill

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The legislation makes some changes to the voter-approved cannabis measure but is closer to the ballot initiative than some plans lawmakers floated this session.

By Arren Kimbel-Sannit, Daily Montanan

Montana Gov. Greg Gianforte (R) on Tuesday signed House Bill 701, landmark legislation that implements and regulates the recreational marijuana program that voters approved in a ballot initiative last year and funds a substance abuse prevention program that the new governor has championed since his first days in office.

The bill, sponsored by Rep. Mike Hopkins, R-Missoula, followed a long and bumpy path to the governor’s desk, emerging among a slew of other proposals in the back half of the session. Even on the 67th Legislature’s final day, the Senate considered an ultimately failed proposal to alter HB701’s carefully negotiated taxation and revenue allocation structure and significantly tighten medical card requirements.

Under HB701, retail sails of recreational marijuana for adults 21 and older will begin in January of next year. The half of Montana counties that voted for I-190, the ballot initiative legalizing adult-use cannabis, will have recreational in their borders by default, while voters in the the other half of counties will have to take an affirmative action to bring recreational marijuana in their boundaries if so desired. Recreational pot will be taxed at 20 percent, while medical marijuana will retain a 5 percent tax. The bill also moves operation and regulation of the state’s marijuana program from the Department of Public Health and Human Services to the Department of Revenue.

And it creates a special drug court to handle the review and possible resentencing or expungement of past marijuana-related convictions, a key goal of criminal justice advocates for the marijuana program.

The new marijuana law also uses tax revenues from the sale of the product—which could reach tens of millions of dollars a year, depending on the estimate—to help finance the HEART Fund, a drug treatment program that would dole out state money to local organizations and non-profits to fill gaps in the continuum of substance abuse care and prevention services, Gianforte’s office said.

With marijuana revenues, federal Medicaid match dollars and an infusion of tobacco settlement funds, the governor’s office estimated that the HEART Fund—short for Healing and Ending Addiction through Recovery and Treatment—could invest $25 million a year in substance abuse treatment.

“From the start, I’ve been clear that we need to bring more resources to bear to combat the drug epidemic that’s devastating our communities,” Gianforte said in his statement. “Funding a full continuum of substance abuse prevention and treatment programs for communities, the HEART Fund will offer new supports to Montanans who want to get clean, sober, and healthy.”

How much to tax pot and what to do with the money formed the core of debate over HB701. I-190 laid out a plan for revenues from a 20 percent tax to fund veterans services, park and trail maintenance and the acquisition of conservation easements through Habitat Montana. But the initiative, which passed with a healthy 57 percent of the vote, was quickly challenged in court, as only the Legislature has the constitutional authority to appropriate state funds. The suit is still ongoing.

So lawmakers this session set about drafting plans to spend or save the money themselves. Some conservatives favored a plan to lower the tax on recreational pot, fearing that a 20 percent levy would drive consumers to the black market, and put revenues in an interest-bearing trust fund that could be used to defray negative effects of legalization further down the line. Democrats wanted to hew as close to I-190 as possible, arguing that anything else disregarded the will of the voters and the pro-public lands ethos that underlies much of Montana politics.

Initially, HB701 made minor investments in parks, trails and non-game wildlife, paid into the HEART Fund at a rate of $6 million a year and left the rest to the general fund. But regular agitation from conservation groups and a deal struck in the Senate restored part of I-190’s funding structure, albeit on a delayed schedule, and revived many of its other provisions, earning support from initiative backers and authors who had been hesitant to embrace any legislative changes to I-190 earlier in the session.

“Since January, we’ve been focused on implementing the will of Montana voters in a safe, responsible, and appropriately regulated manner. House Bill 701 accomplishes this,” Gianforte said in a press statement sent out after he signed the bill May 18.

This piece was first published by Daily Montanan.

Louisiana Marijuana Legalization Effort Stalls After House Rejects Complementary Tax Proposal

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Louisiana Marijuana Legalization Effort Stalls After House Rejects Complementary Tax Proposal

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An effort to legalize marijuana in Louisiana appeared to reach a dead end on Tuesday, with the House of Representatives rejecting a complementary measure to impose taxes on cannabis sales ahead of a scheduled vote on the broader proposal.

Advocates have been closely monitoring the legislature this session as numerous cannabis reform proposals move through the traditionally conservative state—including bills to decriminalize marijuana possession and legalize the smoking of cannabis flower by medical patients.

The recreational legalization bill from Rep. Richard Nelson (R) represented the most comprehensive piece of marijuana legislation to advance. But with the House voting against the related tax bill, it appears likely that the main measure would face a similar fate if the sponsor insisted on a floor vote. The legalization measure, along with another companion bill setting licensing fees for cannabis businesses, were scheduled for floor consideration on Tuesday but Nelson moved to have them set aside.

The overall plan would have allowed adults 21 and older to purchase and possess marijuana from licensed retailers. Possession of up to two and a half pounds of cannabis would have been lawful.

Under one version of the bill, regulators would have been tasked with creating a permit for adults to grow up to six plants for personal use, but Nelson was prepared to remove that provision with an amendment he filed in an effort to build support from colleagues. The sponsor also floated a change that would have delayed legalization’s taking effect until cannabis is federally rescheduled.

The complementary bill that would have levied a 15 percent sales tax on cannabis products, in addition to state and local taxes. It would also have divided tax revenue between the state general fund and the local local jurisdictions where sales take place. It lost in a vote of 47-48, while 70 votes were needed to meet the two-thirds threshold for passage of tax legislation.

The separate fee measure from Nelson would have established a $2,500 annual fee for cannabis business licenses and a $100 annual fee for a personal cultivation permit.

Legalization’s stalling comes on the heels of a new poll showing that constituents in some of the most firmly Republican districts in the state support the policy change.

This also comes after the governor of another traditionally conservative state, Alabama, signed a bill to legalize medical cannabis.


Marijuana Moment is already tracking more than 1,100 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

The developments on the Louisiana legalization legislation and the connected bills comes as several other cannabis reform measures are advancing. Here’s a breakdown of where those pieces of legislation stand:

HB 652: Decriminalize possession of up to 14 grams of marijuana, making it punishable by a $100 fine without the threat of jail time. Status: The legislation cleared the House last week and has been referred to the Senate Judiciary Committee.

HB 391: Allow medical marijuana patients to access smokable, whole-flower cannabis products. Status: The bill passed the House and one Senate committee this month. It is now on the Senate floor.

HB 514: Impose taxes on flower medical marijuana products if they are legalized. Status: The measure was approved in the House last month and also advanced through the committee process in the Senate, where it now awaits a floor vote.

HB 243: Remove criminal penalties for marijuana if it is legalized. Status: This proposal cleared the House Administration of Criminal Justice Committee last month and is awaiting scheduling for a House floor vote.

HB 709: Establish certain regulations for a marijuana market if legalized, including provisions meant to promote social equity in the industry. Status: The bill was approved on second reading in the House on Monday as a substitute for a prior measure that advanced out of committee.

HB 640: Align Louisiana’s hemp regulations with federal rules that were finalized and took effect in March. Status: The House approved the measure last week and the Senate Agriculture, Forestry, Aquaculture, and Rural Development Committee lightly amended and approved it on Tuesday.

HB 567: Repeal a current law that requires illicit cannabis sellers to purchase tax stamps for their products. Status: The bill was approved by the House Ways and Means Committee last week and is scheduled for floor debate on Tuesday.

When it comes to broader legalization, while advocates generally expected resistance from Gov. John Bel Edwards (D), who has repeatedly expressed opposition to the reform, he did say last month that he has “great interest” in the legalization proposal, and he pledged to take a serious look at its various provisions.

Last year, the legislature significantly expanded the state’s medical marijuana program by passing a bill that allows physicians to recommend cannabis to patients for any debilitating condition that they deem fit instead of from the limited list of maladies that’s used under current law.

Edwards signed the measure in June 2020 and it took effect weeks later.

Two other recent polls—including one personally commissioned by a top Republican lawmaker—have found that a majority of voters are in favor of legalizing cannabis for adult use.

Mississippi Voters Want To Impeach Justices Who Overturned Medical Marijuana, Poll Shows

Photo courtesy of Brian Shamblen.

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Connecticut Lawmakers Hold Marijuana Meeting With Governor’s Office As New Poll Shows Majority Support For Legalization

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Legislative leaders will meet with the office of Connecticut Gov. Ned Lamont (D) on Tuesday to continue negotiating a plan to legalize marijuana in the state—a development that comes as a new poll shows majority support for the policy change among voters.

With the legislative session ending on June 9, there’s a sense of urgency to enact the reform, which has long been a goal of the Lamont administration and top lawmakers. They’ve held several meetings to reach an agreement about what a legal cannabis market should look like, but there are still some sticking points that need to be resolved.

House Majority Leader Jason Rojas (D) said negotiations are currently centering on who would qualify as a social equity applicant. Getting that designation would come with benefits in the cannabis business licensing process.

“We’re working with the administration. We have a meeting lined up for this evening. We’ve certainly gotten some edits from the administration that we were able to consider,” he said during a press briefing on Tuesday.

“We’re really finalizing on getting down to the definition of an equity applicant. I think that’s been the primary goal for folks on both sides of the discussion,” he said. “We do have a definition that we’ll share with the administration so that we can move forward from there.”

Given the tight deadline legislators are facing—in addition to the progress being made in negotiations—House Speaker Matt Ritter (D) said earlier this month that the legislature would be open to taking up the issue in a special session to resolve differences between the legalization bills that have been put forward by lawmakers and Lamont.

The governor’s chief of staff said that administration officials have been “meeting with legislative negotiators,” and they’re “waiting for them to provide us a revised draft” of a reform bill. It appears that lawmakers are making some progress toward that goal with Rojas saying they will present the governor’s office with a new equity definition on Tuesday evening.

Advocates are pleased to see the high-level discussions reaching the point of nailing down what kind of cannabis business constitutes an equity applicant.

“Defining equity has always been at the heart of the legalization conversation and I’m encouraged that our legislative champions are laser focused on getting this right,” Jason Ortiz, the policy director for the pro-legalization advocacy group CURE CT and a member of a legalization working group assembled by Lamont that issued recommendations on social equity. “This is the hard part, but getting here is a strong sign we are close to final language and that’s incredibly exciting.”

According to a new poll, Connecticut voters are done waiting for legalization to happen.

Sixty-four percent of residents in the state favor legalizing cannabis for adult use, the survey from Sacred Heart University that was released on Tuesday found.

Further, 76 percent of respondents said that marijuana has the same or fewer effects compared to alcohol. And 62 percent said they favor expunging prior cannabis convictions.

They survey involved interviews with 1,000 residents from April 20-26. And the results are consistent with past polling on the subject.

A bill to legalize marijuana for adult use that the governor proposed as part of his budget cleared the Judiciary Committee last month after being amended by the panel. But if a legalization measure isn’t enacted this year, Lamont said earlier this month that he anticipates that the issue could go before voters.

“Marijuana is sort of interesting to me. When it goes to a vote of the people through some sort of a referendum, it passes overwhelmingly. When it goes through a legislature and a lot of telephone calls are made, it’s slim or doesn’t pass,” the governor said. “We’re trying to do it through the legislature. Folks are elected to make a decision, and we’ll see where it goes. If it doesn’t, we’ll probably end up in a referendum.”

Ritter similarly said last year that if the legislature isn’t able to pass a legalization bill, he will move to put a question on the state’s 2022 ballot that would leave the matter to voters.

A competing legalization measure from Rep. Robyn Porter (D), which is favored by many legalization advocates for its focus on social equity, was approved in the Labor and Public Employees Committee in March.

Lamont, who convened an informal work group in recent months to make recommendations on the policy change, initially described his legalization plan as a “comprehensive framework for the cultivation, manufacture, sale, possession, use, and taxation of cannabis that prioritizes public health, public safety, and social justice.”

But while advocates have strongly criticized the governor’s plan as inadequate when it comes to equity provisions, Ritter said in March that “optimism abounds” as lawmakers work to merge proposals into a final legalization bill.

Rojas also said that “in principle, equity is important to both the administration and the legislature, and we’re going to work through those details.”

To that end, the majority leader said that working groups have been formed in the Democratic caucuses of the legislature to go through the governor’s proposal and the committee-approved reform bill.

In February, a Lamont administration official stressed during a hearing in the House Judiciary Committee that Lamont’s proposal it is “not a final bill,” and they want activists “at the table” to further inform the legislation.

The legislature has considered legalization proposals on several occasions in recent years, including a bill that Democrats introduced last year on the governor’s behalf. Those bills stalled, however.

Lamont reiterated his support for legalizing marijuana during his annual State of the State address in January, stating that he would be working with the legislature to advance the reform this session.

Ritter said in November that legalization in the state is “inevitable.” He added later that month that “I think it’s got a 50–50 chance of passing [in 2021], and I think you should have a vote regardless.” The governor said in an interview earlier this year that he puts the odds of his legislation passing at “60-40 percent chance.”

The governor has compared the need for regional coordination on marijuana policy to the coronavirus response, stating that officials have “got to think regionally when it comes to how we deal with the pandemic—and I think we have to think regionally when it comes to marijuana, as well.”

He also said that legalization in Connecticut could potentially reduce the spread of COVID-19 by limiting out-of-state trips to purchase legal cannabis in neighboring states such as Massachusetts and New Jersey.

Mississippi Voters Want To Impeach Justices Who Overturned Medical Marijuana, Poll Shows

Photo courtesy of Brian Shamblen.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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