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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

Bernie Sanders Talks Marijuana With Killer Mike, Danny Glover And Ben & Jerry’s Founder

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Sen. Bernie Sanders (I-VT) led a panel during a presidential campaign stop in North Carolina on Friday where he and surrogates—rapper Killer Mike, actor Danny Glover and Ben & Jerry’s founder Ben Cohen—discussed marijuana reform.

At one point, Cohen said that he was arrested after being caught smoking cannabis while he was in school but the police only charged him for littering—a discretionary decision that he said he likely wouldn’t have been afforded if he was black. He speculated that without that privilege, the incident could have cost him loans that allowed him to build his ice cream empire.

Sanders, a 2020 Democratic presidential candidate, opened the conversation by asking Killer Mike to weigh in on the impact of the drug war, particularly on communities of color.

The artist said the “war on drugs, we now know from history, has been a tremendous failure” and that it “was never a war on drugs, it was a war on progressive white kids and black people.”

He discussed the racist origins of prohibition, the role cannabis criminalization has played in mass incarceration and emphasized the need to include restorative justice in a legal marijuana system.

“But we have a greater opportunity, and the greater opportunity is this: marijuana is going to be legal in our lifetime,” he said. “Beyond getting a little stoned in the morning, which I didn’t do this morning because I knew I had to come see you guys, marijuana provides through hemp paper, alternative to plastics, it provides jobs, resources, dispensaries.”

Watch the conversation about cannabis, starting at about 11:20 into the video below:

“We have an opportunity this time to take the people that are exiting jail, have expunged records and creating a pathway as wide as this aisle directly to legal marijuana and creating economic sustainability in the same communities that were robbed of that opportunity,” he said.

“As for me and my stoner friends, we’ll be buying Ben & Jerry’s and voting for Bernard Sanders.”

Glover joked that Mike’s plan is the “real green new deal that we need right here,” riffing off the name of climate change agenda backed by Rep. Alexandria Ocasio-Cortez (D-NY).

“What we’re talking about now is repairing the wrongs that were done on our communities, and we have a senator who’s going to be the president, who’s saying that we’re not only going to repair the wrongs of the war on drugs but we are going to bring back an era that we are organizing in our communities,” the actor said.

Cohen highlighted racial inequities in marijuana enforcement and broader societal structures, starting by noting that his parents were only able to enter the middle class with the help of a government program providing low-interest mortgages that black people were not entitled to. That program allowed him to go to a good school, he said, where he got busted for cannabis at one point.

“In the midst of getting my higher education, one summer I was smoking some pot with some friends on a beach and the cops caught us,” he said. “We were handcuffed and they took us to the station and they ended up giving us a ticket for littering a lighted cigarette butt on the ground.”

“But I am well aware that if I was black, I would’ve ended up with a criminal record that would have prevented me from getting the loans that we needed to start Ben & Jerry’s,” he said. “It’s really clear to me that if I was black, there wouldn’t have been a Ben & Jerry’s. I’m conscious of that, I think about that, and that’s one of the big reasons I’m supporting Bernie because he’s going to put an end to that system.”

Sanders closed the panel discussion by asking audience members to raise their hands if they knew someone arrested for marijuana, or were themselves arrested. He did a similar exercise at a campaign rally in South Carolina earlier this week.

After hands shot up, the senator said “this is what the war on drugs has done in this country.”

“It has criminalized so many people in this room. This is amazing,” he said. “The war on drugs has been incredibly destructive for millions and millions of people in this country and we’re going to end that war on drugs and we’re going to make marijuana legal.”

Cory Booker Pledges To Back Only Marijuana Bills With Justice Focus As Banking Vote Approaches

Photo courtesy of Facebook/Bernie Sanders.

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Former Federal Prosecutor’s Marijuana Legalization Measure Advances In South Dakota

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A measure to legalize marijuana in South Dakota—introduced by a former federal prosecutor and backed by a leading national cannabis advocacy group—was recently cleared for signature gathering.

Brendan Johnson, who served as the U.S. Attorney for the District of South Dakota and whose father represented the state in the U.S. Senate until 2015, filed the initiative in June. It received an official explanatory statement from the attorney general last month and its backers were given the green light to start collecting signatures last week.

“We are excited to move forward with these ballot initiative campaigns,” Johnson told Marijuana Moment. “South Dakota voters are ready to approve both medical marijuana and legalization at the ballot box next year.”

The Marijuana Policy Project (MPP) is supporting the proposed constitutional amendment, as well as a separate statutory initiative to legalize medical cannabis in the state that was approved for signature collection last month.

The former federal prosecutor’s measure, which is being steered by the committee South Dakotans for Better Marijuana Laws, would allow adults 21 and older to possess and distribute up to one ounce of marijuana. Individuals would also be allowed to cultivate up to three cannabis plants. The South Dakota Department of Revenue would be tasked with issuing licenses for manufacturers, testing facilities and retailers.

Sales would be taxed at 15 percent under the initiative, and revenue would be used to fund the program’s implementation, with additional monies going toward public education and the state general fund.

Beside legalizing marijuana, the amendment would also instruct the legislature to enact legislation to legalize hemp and medical cannabis. If the separate statutory medical marijuana legalization initiative, being coordinated by the group New Approach South Dakota, qualifies and passes as well, that latter requirement wouldn’t be necessary.

“The Marijuana Policy Project strongly supports the South Dakota campaign,” MPP Deputy Director Matthew Schweich, who led the organization’s efforts in support of previous legalization campaigns in Maine, Massachusetts and Michigan, told Marijuana Moment. “Across the country, and even in conservative states, voters are demanding marijuana policy reform. Our goal is simple: to effectuate the will of the people when elected officials choose to ignore it.”

Petitioners for the proposed constitutional amendment must collect 33,921 valid signatures from voters to qualify for the 2020 ballot. For statutory initiatives, 16,961 signatures are required. MPP’s involvement will likely bolster the campaign’s prospects of meeting that goal.

It’s already clear that marijuana reform measures are going to face resistance from certain quarters, with Gov. Kristi Noem (R) vetoing a hemp legalization bill in March and the state’s Republican party urging residents not to sign ballot petitions.

“Our campaign, South Dakotans for Better Marijuana Laws, will be working from now until Election Day 2020 to earn the support of South Dakotans from every corner of the state,” Johnson said.

California Lawmakers Use Cryptocurrency To Buy Marijuana From Dispensary

Photo courtesy of WeedPornDaily.

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Cory Booker Pledges To Back Only Marijuana Bills With Justice Focus As Banking Vote Approaches

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With a vote on marijuana banking issues imminent in the House, Sen. Cory Booker (D-NJ) emphasized on Friday that he will not support cannabis legislation that doesn’t include restorative justice components.

In a tweet that linked to an earlier Marijuana Moment article on his cannabis stance, the 2020 Democratic presidential candidate wrote that “any marijuana legislation moving through Congress must include restorative justice for those most harmed by the War on Drugs in order to get my vote.”

The statement comes at a critical moment in the marijuana reform movement. House leadership announced on Friday that the first full floor vote on a standalone piece of cannabis reform legislation—a bill to protect banks that service cannabis businesses from being penalized by federal regulators—will be held next week. But that development has also created controversy, with several advocacy groups arguing that a vote should be postponed until more wide-ranging reform legislation is passed.

Although Booker didn’t directly reference the banking bill his his tweet, its timing seemed to suggest that he sides with those groups—which include the ACLU, Human Rights Watch and Drug Policy Alliance—and that he wouldn’t support the Secure and Fair Enforcement (SAFE) Banking Act as written.

Booker’s Senate press secretary confirmed to Marijuana Moment in an email that his boss’s Twitter post was sent directly in reaction to the House banking news.

While some have made the case that the bill would help promote social equity by improving access to banking services for minority business owners, for example, others view the legislation as primarily benefiting large cannabis firms.

Throughout his campaign, the senator has emphasized the need for inclusive and comprehensive marijuana reform. He determined that a bill to protect state cannabis programs from federal intervention that he formerly cosponsored didn’t meet that standard and did not attach his name to the latest version.

“At this point it’s too obvious and urgent and unfair that we’re moving something on marijuana on the federal level and it doesn’t do something on restorative justice,” he told VICE in April. “I want that bill to have some acknowledgement of the savage injustices that the marijuana prohibition has done to communities.”

“I get very angry when people talk about legalizing marijuana and then give no light to how marijuana law enforcement was done in ways that fed upon poor communities—black and brown communities. This is a war on drugs that has not been a war on drugs—it’s been a war on people, and disproportionately poor people and disproportionately black and brown people.”

Booker also said that he wants to couple conversations about legalization with talk of expunging prior cannabis convictions “in the same breath.”

The senator’s potential future opposition to a House-passed cannabis banking bill could prove problematic as its supporters work to shepherd the legislation through a chamber where it already faces an uphill path under anti-marijuana Majority Leader Mitch McConnell (R-KY) and skepticism from other GOP lawmakers.

House Marijuana Banking Vote Officially Scheduled For Next Week, Leadership Announces

Photo courtesy of Senate Democrats.

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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