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Connecticut Lawmakers Discuss Using Marijuana Tax Revenue For Community Reinvestment

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A key Connecticut legislative committee heard testimony on Monday about a bill that would dictate how tax revenue from marijuana sales would be allocated if the state legalizes cannabis for adult use.

SB 1138 wouldn’t legalize marijuana itself; rather, it’s part of a three-bill cannabis reform package that’s working through the legislature, with the goal of later combining the legislation into a single proposal for floor action. For now, each piece of legislation is being considered in committees that have jurisdiction over the areas touched on by the individual bills.

A proposal to legalize cannabis for adult use, which would also expunge the records of those with prior marijuana possession convictions, was approved by the Senate Judiciary Committee earlier this month. Another part of the legalization package was approved by the legislature’s General Law Committee last month.

The separate legislation taken up by the Finance, Revenue and Bonding Committee on Monday would impose a 6.35 percent tax on retail marijuana sales. A three percent local tax could be imposed in jurisdictions that allow cannabis businesses to operate. And there would also be a $35 per ounce tax on marijuana transfers from growers.

Tax revenue (except from the local tax) would be specifically designated for community reinvestments in areas that are socioeconomically disadvantaged. Each “distressed community” would have a non-profit community development corporation that would be responsible for providing certain programs and services meant to support residents.

Those services include free or low-cost early childhood education, vocational programs, restoring public spaces like playgrounds or libraries, supporting home ownership through home buyer education and expanding community centers.

“SB 1138 is a groundbreaking approach to community reinvestment,” Jason Ortiz, executive director of the advocacy group CURE CT, told Marijuana Moment. “By ensuring the funds go directly to community-based organizations, we can create real opportunity to address our needs and with our own hands.”

The bill would also establish an oversight council responsible for identifying communities that are eligible under the reinvestment provisions and ensuring that the community development corporations are properly funded and using that money to support the legislation’s core goals.

Finally, the bill calls for some tax revenue to be used to support literacy education, funding the state’s reading instruction program and statewide early reading initiatives.

Monday’s hearing featured testimony from several witnesses, including Matt Simon, New England political director for the Marijuana Policy Project, and members of the anti-legalization group Smart Approaches to Marijuana.

“The goal of regulating and taxing cannabis is not merely to produce tax revenue. Far from it,” Simon said at the hearing. “Instead this issue presents an opportunity to scrap a policy that has failed the people of Connecticut and replace it with a system that will divert hundreds of millions of dollars each year out of this illicit market and into a thoughtfully regulated market, where cannabis is sold by law abiding businesses that create jobs, pay taxes and follow rules and regulations that have been put into place to protect public health and safety.”

“Regulating and taxing cannabis sales will generate significant new revenue for our state and local governments,” said Kebra Smith-Bolden, codirector of the Connecticut Coalition to Regulate Marijuana, said in a press release.

“Under the proposed plan, virtually all of the funds will be directed to the communities that have been most devastated by cannabis prohibition,” she said. “For decades, minority and low-income individuals have been disproportionately affected by marijuana enforcement and the war on drugs. It is fitting that they be the ones who benefit from cannabis tax revenue following legalization.”

The panel has not yet scheduled a vote on the bill, but pending legislative deadlines mean that action would have to come soon in order for the proposal to advance.

House Speaker Joe Aresimowicz (D) supports legalization and said that lawmakers may decide on the issue in a special session if they are unable to pass legislation before the current session ends on June 5. However, he voiced concerns about the community reinvestment bill that the finance committee debated. The speaker said he’s generally opposed to earmarking revenue, arguing that doing so can put lawmakers in a bind later on.

“Things change, and we need to adjust midstream. So that’s why we’ve been opposed to earmarks,” he told The Hartford Courant. “That’s why I just don’t like earmarks because they’re really hard to live up to in a changing economy and a changing budget process.”

Elsewhere in the region, lawmakers discussed a legalization bill at a Pennsylvania Democratic House-Senate joint hearing on Monday, and a New Hampshire Senate committee debated House-passed cannabis legalization legislation last week.

Marijuana Legalization Debated At Pennsylvania Joint Policy Hearing

This story has been updated to include additional information about testimony offered at Monday’s hearing. 

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.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

Politics

DC Activists Have A New Plan To Get Psychedelics Decriminalization On The Ballot Despite Coronavirus

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Activists in Washington, D.C. are considering a new strategy to get a measure to decriminalize psychedelics on the November ballot, with the coronavirus outbreak having forced them to suspend in-person signature gathering.

While Decriminalize Nature D.C. hoped that officials would pass emergency legislation allowing the digital collection of signatures, they aren’t actively considering that option. And the District Council’s chairman said he would not simply place the initiative on the ballot for voters to decide regardless of the signature count.

That’s left the group in a challenging position. But they’re not out of ideas yet.

Now the campaign is exploring the possibility of conducting “micro-scale petition signature collection” to make the ballot. The plan would involve having petitions mailed to supporters, who would circulate it and collect signatures from “registered DC voters in their immediate vicinity, such as family, roommates, friends and close-by neighbors” and then return the signed petitions to the campaign headquarters.

They’ve launched an online survey to determine the feasibility of the option. It asks prospective volunteers to estimate how many signatures they could theoretically collect under that limited scope and provide their mailing information should the campaign decide to move forward with the plan.

This is one of the last remaining options for the 2020 effort, which is working to make a wide range of psychedelics among the district’s lowest law enforcement priorities.

Council Chairman Phil Mendelson (D) said during a press conference on Friday that he “would not say that we’re looking for legislative action to put [the initiative] on the ballot” outside of the conventional process.

Board of Elections Chairman Michael Bennett also took a question about the prospect of allow electronic signature collection. He said his panel is not considering the possibility “at this point.”

Watch the comments below, starting around 22:15:

Decriminalize Nature D.C. is one of numerous groups working to change local and state drug policy laws. And it’s not alone in its struggle amid the current pandemic.

A California campaign to legalize psilocybin mushrooms is struggling and asking for electronic signature gathering to qualify for the ballot.

In Oregon, advocates for a measure to decriminalize drug possession and a separate initiative to legalize psilocybin for therapeutic purposes have suspended in-person campaign events amid the pandemic.

Activists in California recently released a video asking California officials to allow digital signatures for a petition to revise the state’s adult-use marijuana program. An effort to legalize medical cannabis in Nebraska is facing similar signature gathering challenges. A campaign to legalize cannabis in Missouri is also in jeopardy.

Arizona activists shared some more positive news last week, however, announcing that they have collected more than enough signatures to qualify for the state’s November ballot—though they have not yet been submitted to or verified by the state.

Marijuana Legalization Left Out Of New York Budget, According To Draft Summary Document

Photo elements courtesy of carlosemmaskype and Apollo.

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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Marijuana Legalization Left Out Of New York Budget, According To Draft Summary Document

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The New York legislature seems poised to eliminate a proposal to legalize marijuana through the budget this year, according to an unverified document outlining the policies included in the spending legislation currently under final negotiations ahead of a vote this week.

The draft budget report, which was shared with Marijuana Moment, includes a line stating that the “Adopted Budget omits the Executive proposal to legalize adult use cannabis.”

It also “eliminates $34.31 million in funding for the Office for Cannabis Management,” a government body that would have been responsible for regulating the marijuana market.

The apparent exclusion of Gov. Andrew Cuomo’s (D) legalization proposal, while disappointing to reform advocates, is not entirely surprising in the context of the coronavirus outbreak. While the governor repeatedly stressed that the policy change should be enacted through the budget, he and top lawmakers have tried to temper expectations in recent weeks as legislative priorities have shifted during the pandemic.

But to some, the draft adopted budget report isn’t necessarily a death knell for the reform move, and they hope lawmakers can still accomplish legalization this year through separate legislation.

“We are disappointed adult use is not in the budget since it would have been a huge economic benefit to New York farmers and small businesses,” Allan Gandelman, president of the NY Cannabis Growers & Processors Association, told Marijuana Moment. “We hope to continue working with the governor and the legislature to get this done as soon as possible.”

The legislature must still vote on the final budget, but there’s little time left to hash out a deal on comprehensive reform ahead of a Wednesday deadline. Sen. Liz Krueger (D) filed a revised standalone legalization bill earlier this month, language of which could have theoretically been inserted into the budget, but it’s not clear that option remains on the table.

Marijuana Moment reached out to Senate and Assembly leadership for comment about the draft budget summary, but representatives were not immediately available. The document, which according to its metadata was last modified on Sunday afternoon, contains highlighted sections for issues that are “still open” for negotiation, but that is not the case for the cannabis items.

This is the second year in a row that Cuomo has pitched legalization as part of his spending plan. Last year, months of negotiation between his office and lawmakers failed to produce a passable bill—with disagreements centering on issues such as how tax revenue would be allocated—and so the effort carried over to this year.

The governor seemed confident that 2020 would be the year for legal cannabis in New York, and he included the proposal in his State of the State address in January. As recently as last week, he indicated the effort was still alive, though he also recognized that it may prove too complicated an issue to ultimately deliver through the budget this round.

“We will pass a budget and address the policy items that we laid out and we discussed because it’s not just about passing a budget and the numbers,” he said. “There are many policy initiatives that I laid out back in January, and we’re going to pursue all of them.”

“The only caveat was if you have a really complex issue that normally would require weeks of nuanced, detailed negotiation to do it right, that we won’t do. Because I don’t want to pass any bills that are not really intelligent that I then have to come back and deal with again next year,” he continued. “If it’s a highly complex issue, I get it and then let’s put it off because we don’t want to do something sloppy.”

Another part of the governor’s legalization plan originally involved visiting legal cannabis states to learn from their experiences and take lessons back home. However, Cuomo said that trip was also impacted by the COVID-19 outbreak.

Meanwhile, drug policy reform efforts across the country are struggling amid the pandemic.

Activists in California recently released a video asking California officials to allow digital signatures for a petition to revise the state’s adult-use marijuana program. In Washington, D.C., advocates for a measure to decriminalize psychedelics similarly wrote to the mayor and local lawmakers, imploring them to accept online signatures for their ballot petition.

Another California campaign to legalize psilocybin mushrooms is struggling and asking for electronic signature gathering to qualify for the ballot. An effort to legalize medical cannabis in Nebraska is facing similar signature gathering challenges. A campaign to legalize cannabis in Missouri is also in jeopardy.

In Oregon, advocates for a measure to decriminalize drug possession and a separate initiative to legalize psilocybin for therapeutic purposes have suspended in-person campaign events amid the pandemic.

Arizona activists shared some more positive news last week, however, announcing that they have collected more than enough signatures to qualify for the state’s November ballot—though they have not yet been submitted to or verified by the state.

Senate Housing Bill Would Prevent Evictions For State-Legal Marijuana Extraction

Photo courtesy of Philip Steffan.

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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Senate Housing Bill Would Prevent Evictions For State-Legal Marijuana Extraction

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A new congressional bill designed to promote affordable housing in the U.S. includes a provision that would prevent landlords from evicting people over manufacturing marijuana extracts if they have a license to do so.

Under the legislation, filed earlier this month by Sen. Jeff Merkley (D-OR), there’s a list of “just causes for eviction” such as failure to pay rent or causing significant damage to a property.

The “manufacture of a cannabinoid extract” is another cause for eviction, “unless the tenant holds a license to manufacture the cannabinoid extract under Federal, State, or Tribal law.”

Curiously, however, the bill lacks any additional protections for other state-legal cannabis activities, including simple possession. It’s possible that a drafting error is to blame, but Merkley’s office did not respond to Marijuana Moment’s request for comment.

Just above the manufacturing provision is another that states that “the unlawful manufacture, delivery, or possession of a controlled substance” is ground for eviction, though it contains no caveat exempting state-legal activity as cause for eviction.

Despite the growing number of states moving to allow cannabis for medical or recreational use, it remains “unlawful” under the federal Controlled Substances Act.

While advocates would likely applaud the inclusion of state-legal protection language, it’s also the case that eviction proceedings are handled at the state level, and so some courts would presumably defer to state law when it comes to cannabis-related eviction cases.

Also, when it comes to the manufacturing provision, states generally do not provide licenses that would specifically allow individuals to produce marijuana extracts in their residences, so it’s unclear how impactful that policy would be in practice if enacted into law.

Of course, the cannabis provision is just one notable part of a comprehensive housing bill, which aims to “address the shortcomings of our current housing policies and funding levels by holistically addressing disparities and systematic obstacles and ensuring an equitable outcome for the most vulnerable Americans.”

Rep. Alexandria Ocasio-Cortez (D-NY) and Sen. Kamala Harris (D-CA) rolled out a different kind of housing reform bill last year that would protect people with low-level drug convictions from being denied access to or being evicted from public housing.

Letting VA Doctors Recommend Medical Marijuana To Veterans Won’t Cost Anything, Congressional Analysts Say

Photo courtesy of Mike Latimer.

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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