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Deal Imminent On New York Marijuana Legalization Bill As Governor Touts Progress

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Marijuana reform advocates are seeing a number of positive signals in the push to legalize marijuana in New York—with the governor saying a deal is “very close” and a new resolution from the Senate saying that a legalization bill “shall be passed outside of the budget process.”

While Gov. Andrew Cuomo (D) included his own legalization plan in his budget request, the final version is expected to more closely resemble a proposal sponsored by two key lawmakers, and it will be handled outside of the annual spending legislation. And if either side needed any further motivation to act, a new poll released on Monday confirms again that a majority of New Yorkers support the policy change.

The news about how the legislation will be handled moving forward is welcomed by advocates who feel that lawmakers’ Marijuana Regulation and Taxation Act (MRTA) more comprehensively addresses social equity issues compared to the governor’s proposal. However, the legislature is still working to resolve a number of provisions before the language is released.

Cuomo said on Monday that “passing marijuana reform and legalizing recreational marijuana” remains a priority and that he spent the weekend speaking with Assembly Majority Leader Crystal Peoples-Stokes (D), sponsor of the MRTA, “working through” the legislation. He said they are “very close on marijuana.”

“We’ve tried to do that for the past three years, we have to get it done this year,” he said. “There’s been too many young lives that have been ruined because of the marijuana laws.”

“This is not about getting in the red zone anymore,” he added, using a football metaphor. “We have to get over the goal line this time. We need the seven points.”

The governor previously insisted on enacting the reform through the budget process, but that doesn’t seem to be part of the plan anymore. A new Senate resolution responding to his executive budget that was released over the weekend states that the chamber’s revised spending legislation “omits the Cannabis Regulation and Taxation Act, which if enacted would have increased All Funds revenue by $20 million in SFY 2021-22, but fully supports the MRTA (S.854), which shall be passed outside of the budget process.”

While Cuomo’s legalization measure is being omitted, the Senate concurred with his proposal to provide $37.4 million in additional funding for the state Division of Alcoholic Beverage Control in order to “support the creation of an office to regulate adult use recreational cannabis,” a further signal that legislative action is imminent.

Speaker Carl Heastie (D) said at a press conference on Monday that a deal on legalization is close and that the issue would likely be handled outside of the budget.

The chamber’s proposal on spending legislation says it wants to “continue discussions with the Executive and the Senate to provide for the legalization and regulation of the cultivation, production, sale of cannabis and cannabis products for adult-use, expanding the existing medical cannabis program and address the collateral consequences of the criminalization of cannabis.”

“The Assembly supports the establishment of a centralized regulatory approach for the licensure and regulation of medical, adult-use and hemp-based cannabis and cannabis products and businesses through the creation of a regulatory body comprised of legislative and executive appointments, as well as ex-officio agency representation from agencies involved in implementation.

“The Assembly also supports provisions to: reduce criminal penalties attributed to future cannabis related activity; expand the ability of individuals to vacate or expunge certain lower level past cannabis convictions; protect legal rights in the workplace; ensure appropriate standards and protections are in place as it relates to public assistance, child care workers, foster parents and investigations of child abuse, neglect, and endangerment involving the use of cannabis ; provide access to business mentoring, application process assistance, incubators, capital and other social equity programs necessary to support the long-term success of social and economic equity applicants as part of a plan to award 50 percent of adult-use cannabis licenses to individuals in communities that have been disproportionately impacted by past criminalization of cannabis, communities of color, minority- and women-owned business, disadvantaged farmers and service-disabled veterans; establish a reasonable tax structure related to the sale of adult-use cannabis; provide for personal cultivation; ensure access to medical cannabis is maintained and expanded; recognize community priorities through local opt-out provisions from the adult-use market; and other priorities deemed necessary and appropriate.

“The Assembly maintains that it is critically important that revenue generated from legalization of cannabis be invested in communities that have been disproportionately impacted by past criminalization of cannabis, including creating a Community Grants Reinvestment Fund. Therefore, the Assembly will further continue discussions on how to direct revenue to ensure that funds will be used for: public education; job creation, skills development and training; social justice and reentry services for impacted communities; substance use disorder services and mental health services; community-based supportive services; expanded training for state and local law enforcement to maintain driver safety; and any other uses deemed necessary and appropriate.”

Before the legislation is finalized, lawmakers and the administration are reportedly working through a number of sticking points, including how many plants people can cultivate for personal use and what type of evidence that can be used in impaired driving cases.

According to NY1’s Zack Fink, once those provisions are settled, votes on the reform bill in both chambers could come next week.

The governor’s budget, unlike the plan put forth by lawmakers, did not allow people to legally grow their own marijuana at home.

Public defender and activist Eli Northrup said that he’s heard from sources that Cuomo is pushing to have the legislation make it so police could continue to justify stops and searches based on the odor of cannabis alone, regardless of its legalization. Advocates strongly oppose that policy.

Details of the final legislation might be pending, but polling shows that New Yorkers are ready for cannabis reform. A Siena College survey released on Monday found that 59 percent of residents support adult-use legalization, compared to 33 percent who are opposed.

“Today’s Siena poll confirms that New Yorkers across the board are overwhelmingly in favor of marijuana legalization,” Melissa Moore, New York state director for the Drug Policy Alliance, told Marijuana Moment. “Given this broad-based mandate, it is imperative that the absolute best marijuana reform bill becomes law.”

“We urge swift passage of the Marijuana Regulation and Taxation Act (S.854/A.1248) to secure justice, jobs, and equity for the millions of New Yorkers that have borne the brunt of marijuana criminalization and restitution for the communities most harmed by the war on drugs,” she said. “The time to act is now.”

According to Cuomo and the sponsors of the MRTA, Peoples-Stokes and Senate Finance Chairwoman Liz Krueger (D), there’s recognition of that need to act, and the process is moving along.

“We’ve been working on a marijuana bill. I’ve had a number of conversations with members,” the governor said last week. “We’ve been making good progress.”

Krueger also said that lawmakers were “working hard on a three-way agreed upon bill that could pass the legislature before we get to the budget.” She added: “I feel like we are 95 percent there. We have taken some big steps towards getting this done.”

Peoples-Stokes said last week that talks “are really good and really fruitful and I’m really encouraged.” In fact, “I’ve never felt this encouraged before.” That’s despite her saying just days earlier that talks with the governor’s office over the legalization legislation had become heated to the point of screaming.

A state budget spokesperson said that the “administration is working with all parties to pass a comprehensive regulatory structure for adult-use cannabis that prioritizes social equity, social justice, economic development, and the public health and safety of all New Yorkers.”

There’s been speculation that the growing number of sexual harassment allegations against the governor—in addition to controversy over the state’s handling of nursing home COVID-19 death data—would leave him with less political clout to negotiate on behalf of his proposal over that of the lawmakers. Peoples-Stokes said previously that she wanted the legislature to take up the MRTA first and then consult the governor’s office about his plan.

Cuomo proposed amendments to his legislation last month that he hoped would address certain concerns from lawmakers and advocates. The changes primarily concern that issues such as social equity funding and criminal penalties for underage marijuana possession.

Unlike the MRTA, the revised plan would continue to criminalize people who grow their own marijuana at home, and it wouldn’t provide for any additional social equity funding on top of his original plan.

Another factor working against Cuomo is that Democrats now have supermajority control over the legislature, which could empower them to override a potential veto if they were to pass the MRTA against the governor’s wishes.

New York lawmakers last month held the first public hearing of the year on proposals to legalize cannabis, specifically focusing on budget implications.

Legislators heard testimony during the joint session from two pro-legalization industry representatives and one opponent. Despite their ideological differences when it comes to legalization in general, all three panelists were critical of Cuomo’s reform proposal. The two reform advocates said they would prefer to advance the MRTA over his legislation.

Last month, Lt. Gov. Kathy Hochul (D)—who would become governor is Cuomo were to resign or be impeached—told Marijuana Moment in an interview that there would be room for revisions to the current governor’s plan, stating that “much of it is going to be negotiated with the legislature, and all these details can be resolved with their input as well.”

Cuomo said that the changes in his bill reflect “the conversations we’ve had, but I’m hopeful that we can come to an agreement and we can get it done. He added that he believes, “because I’ve seen this movie before, “if we don’t get it done by April 1, we won’t get it done.”

This is the third year in a row that Cuomo has included a legalization proposal in his budget plan. The last two times, negotiations with the legislature stalled amid disagreements over certain components such as the tax structure for the market and funding for social equity programs.

Regardless of which direction the legislature ultimately goes on this issue, there’s growing recognition in the state that legalization is an inevitability.

The top Republican in the New York Assembly said in December that he expects the legislature to legalize cannabis this coming session.

Senate Majority Leader Andrea Stewart-Cousins (D) said in November that she also anticipates that the reform will advance in 2021, though she noted that lawmakers will still have to decide on how tax revenue from marijuana sales is distributed.

Cuomo also said that month that the “pressure will be on” to legalize cannabis in the state and lawmakers will approve it “this year” to boost the economy amid the health crisis.

Wisconsin GOP Lawmakers File Bill To Decriminalize Marijuana, While Governor Pushes Full Legalization

Photo courtesy of Mike Latimer.

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Business

New House Bills Would Make Cannabis Businesses Eligible For Federal Small-Business Aid

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Lawmakers in the U.S. House of Representatives have introduced three new bills to make state-legal marijuana businesses eligible for federal small business services, including loans, disaster relief and grant programs.

The package of legislation is aimed at establishing parity for cannabis businesses, which are currently prohibited from receiving federal aid due to marijuana still being classified as a Schedule I controlled substance. The country’s legal cannabis industry nevertheless now supports nearly 320,000 full-time jobs in the U.S., according to industry estimates.

The measures are largely similar to legislation introduced by the lawmakers in 2019, with some small changes.

One bill, sponsored by House Small Business Committee Chairwoman Nydia Velázquez (D-NY), would allow marijuana businesses to access resources from the federal Small Business Administration (SBA). The Ensuring Safe Capital Access for All Small Businesses Act of 2021, which had not been assigned a bill number as of Tuesday afternoon, would expand access to services such as microloans, disaster assistance and the agency’s loan guaranty program.

“With more and more states pursuing legalization, including my home state of New York, there are a growing number of legitimate small businesses that are excluded from critical SBA programs,” Velázquez said in a statement, noting that much of the cannabis industry consists of small businesses.

Compared to Velázquez’s 2019 bill, the new version adds clauses meant to expand the availability of services. While the 2019 bill applied to SBA itself, provisions in the new legislation also prevent SBA intermediaries, private lenders and state and local development companies from declining to work with businesses simply because of their marijuana-related work.

Another new section deals with debentures—certain unsecured loan certificates—and clarifies that SBA may not decline to purchase or guarantee a debenture just because of a business’s involvement in cannabis. Nor can other small business investment companies decline to provide assistance to the cannabis sector.

“This legislation will spark growth by extending affordable capital to small firms in the cannabis space,” she continued. “Simultaneously, the bill acknowledges the structural disadvantages facing entrepreneurs of color and seeks to level the playing field.”

Another newly refiled measure, H.R. 2649, sponsored by Rep. Dwight Evans (D-PA), would establish a U.S. Small Business Administration (SBA) grant program to provide funding to state and local governments to help them navigate the licensing process for cannabis businesses. The bill, which also removes marijuana from the Controlled Substances Act, specifies that the grant money should be used to benefit communities disproportionately impacted by the drug war.

“My bill would act as a poverty-buster and help homegrown small businesses, which are the backbone of our economy and our neighborhoods. We need to make sure that the booming legal cannabis industry does not become consolidated in the hands of a few big companies,” Evans said.


Marijuana Moment is already tracking more than 1,000 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.

A third bill, H.R. 2649, from Rep. Jared Golden (D-ME), would prohibit SBA partners that provide guidance and training services from denying help to businesses solely because of involvement in cannabis. The changes would affect providers such as SBA’s Small Business Development Centers, Women’s Business Centers and the Veterans Business Outreach Centers, among others.

“Our continued economic recovery depends on the health of American small businesses of all kinds. Especially in this environment, no Maine small business owner should be turned away from crucial SBA programs that could help them create jobs and lift up the economy,” said Rep. Golden. “My bill would help address this problem by providing small business owners directly or indirectly associated with the cannabis industry with access to the services and resources they need to get their small businesses off the ground and grow.”

Meanwhile, federal lawmakers have been making headway on other cannabis-related proposals. The House passed a cannabis banking bill on Monday, and broader legislation to legalize cannabis at the federal level is expected to be introduced soon.

The banking legislation would ensure that financial institutions can take on cannabis business clients without facing federal penalties. Fear of sanctions has kept many banks and credit unions from working with the industry, forcing marijuana firms to operate on a cash basis that makes them targets of crime and creates complications for financial regulators. The full House passed the bill on a 321–101 vote.

“Even if you are opposed to the legalization of cannabis, you should support this bill,” sponsor Rep. Ed Perlmutter (D-CO) said on the House floor. “The fact is that people in states and localities across the country are voting to approve some level of cannabis use, and we need these cannabis businesses and employees to have access to checking accounts, payroll accounts, lines of credit, credit cards and more.

Other Democrats, including Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) are working on legislation that would end federal cannabis prohibition completely.

Schumer said last week that the long-awaited proposal would be introduced “shortly” and placed on the floor “soon.” Schumer has so far declined to discuss the bill’s specifics, though he’s stressed that it will prioritize small businesses and people most historically impacted by the drug war.

In an interview with Marijuana Moment this week, Schumer worried that passage of the House banking bill could actually undermine broader congressional cannabis reform this year.

On the House side, Judiciary Chairman Jerrold Nadler (D-NY) said recently that he plans to reintroduced his own legalization bill, the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which cleared the House in a landmark vote last year but did not advance in GOP-controlled the Senate.

Meanwhile, support for legalization among U.S. voters continues to grow. More than 9 in 10 Americans (91 percent) now support legalizing cannabis for either medical or adult use, according to a Pew Research Center poll released on Friday. Sixty percent of respondents said that cannabis should be legal for both medical and adult use. Thirty-one percent said it should be legalized for therapeutic purposes only, while just eight percent said it should continue to be criminalized across the board.

A majority of those in every age, race and political demographic included in the poll said they feel marijuana should be legal in some form, although many Republicans remain wary of adult-use legalization. Seventy-two percent of Democrats favored both medical and adult-use legalization compared to only 47 percent of Republicans.

Among the minority in opposition to federal legalization: President Joe Biden (D). White House Press Secretary Jen Psaki said last month that the president’s position on the issue “has not changed,” meaning he still opposes the reform. on Tuesday, Psaki refused to say whether Biden would sign or veto a cannabis legalization bill if passed by Congress.

The president instead backs modestly rescheduling the plant, decriminalizing possession, legalizing medical cannabis, expunging prior marijuana records and letting states set their own policies.

Read the full text of the new legislation below:

Ensuring Safe Capital Access for All Small Businesses Act of 2021 by Marijuana Moment on Scribd

Ensuring Access to Counseli… by Marijuana Moment

Homegrown Act by Marijuana Moment on Scribd

Schumer Worries Senate Marijuana Banking Vote Could Undermine Broader Legalization Push

 

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Politics

Biden Won’t Commit To Sign Marijuana Bill If Passed By Congress, Press Secretary Says

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White House Press Secretary Jen Psaki on Tuesday declined to say whether President Joe Biden would sign or veto a bill to federally legalize marijuana if it arrives on his desk, noting that his cannabis policy position is at odds with broader proposals that congressional Democratic leaders are working on.

She was also asked about his stance on marijuana banking reform, the disconnect between public opinion favoring legalization and the president’s opposition and whether Biden plans to revisit clemency applications for those facing federal sentences over cannabis.

The noncommittal response to the legalization question comes on the unofficial cannabis holiday 4/20—a day that has seen a wide range of politicians, including Senate Majority Leader Chuck Schumer (D-NY), voice support for comprehensive marijuana reform.

Psaki was pressed on the Senate leader’s remarks and asked whether Biden would support legislation to end federal cannabis prohibition if Congress approved it.

“The president supports leaving decisions regarding legalization for recreational use up to the states, rescheduling cannabis as a Schedule II drug so researchers can study its positive and negative impacts and, at the federal level, he supports decriminalizing marijuana use and automatically expunging any prior criminal records,” she said. “He also supports legalizing medicinal marijuana so that’s his point of view on the issue.”

Biden’s positions to that end are well known, but an outstanding question has been whether his opposition to adult-use legalization is so strong that he would reject a reform proposal such as those currently being drafted in the House and Senate.

Asked directly what action the president would take if a federal legalization bill was sent to his desk, Psaki signaled that he wouldn’t be inclined to sign it, stating “I just have outlined what his position is, which isn’t the same as what the House and Senate have proposed, but they have not yet passed a bill.”

The reporter followed up to ask about a separate cannabis pledge Biden made as a presidential candidate, when he said people incarcerated in federal prisons over non-violent marijuana offenses should be released.

Psaki said that would be addressed if cannabis was rescheduled to Schedule II—a dubious claim given that there are still serious penalties for offenses involving substances in that category as well. She also didn’t provide any insight into whether the president is proactively pushing for the modest scheduling change.

Later in the briefing, the press secretary was asked where Biden stands on legislation to protect banks that service state-legal marijuana businesses from being penalized by federal regulators. The House approved the Secure and Fair Enforcement (SAFE) Banking Act along bipartisan lines on Monday.

She said it was a “good question,” but she wasn’t sure and told the reporter she would follow up with a response later.

When pushed on Biden’s opposition to the legalization in the face of mounting, majority support among Americans, Psaki said that while he’s in favor of decriminalization and legalizing medical marijuana, he wants more research on the “positive and negative effects” of adult-use legalization.

“He’ll look at the research once that’s concluded,” she said. “Of course we understand the movement that’s happening toward it. I’m speaking for what his position is and what long, consistently has been his position. He wants to decriminalize, but again, he’ll look at the research of the positive and negative impacts.”

The press conference ended with a final question about cannabis policy—specifically whether the Biden administration plans to revisit requests for clemency for federal cannabis convictions. The reporter cited the case of Luke Scarmazzo, who was sentenced to 22 years in federal prison for operating a state-legal medical cannabis business in California, as an example.

“Given, as you’ve noted in the briefing, the president’s support for decriminalization, support for expunging exactly these types of offenses, are there any plans to revisit some of those bids for clemency?” the reporter asked.

“Well, I would just take it as an opportunity to reiterate that the president supports legalizing medicinal marijuana,” Psaki said. “It sounds like this would have been applicable in this case, and of course decriminalizing marijuana use and automatically expunging any prior criminal records. In terms of individual cases, I can’t get ahead of those obviously.”

These question come, of course, on 4/20. But they also come at a time when there’s a concerted push in both chambers of Congress to seize the opportunity they have with Democratic control to pass legalization legislation.

Schumer, Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) have been working on a bill on their side. The majority leader told Marijuana Moment on Monday that he’s working to push the president in a pro-legalization direction as they draft the measure.

Schumer said last week that the legislation will be introduced and placed on the floor “soon.”

On the House side, Judiciary Chairman Jerrold Nadler (D-NY) said recently that he plans to reintroduced his legalization bill, the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which cleared the chamber last year but did not advance in the Senate under GOP control.

Schumer Worries Senate Marijuana Banking Vote Could Undermine Broader Legalization Push

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Culture

How Politicians Are Celebrating The Marijuana Holiday 4/20 This Year

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The country has come a long way since the days of politicians dismissing or shying away from marijuana issues. And a good example of that shift is the ever-growing number of lawmakers who are leaning into the cannabis holiday 4/20 with calls for reform.

For example, to kick of Tuesday’s Senate session, Majority Leader Chuck Schumer (D-NY) spoke on the floor about the need to end federal marijuana prohibition, saying that “hopefully the next time this unofficial holiday 4/20 rolls around, our country will have made progress.”

Then there are the tweets—so many tweets—from state and congressional lawmakers, office seekers and regulators marking the occasion. It’s become a theme each year, and as more states pursue legalization, it seems more elected officials have grown comfortable embracing the holiday in their own ways.

Here’s what politicians are saying about cannabis this 4/20: 

Members of Congress

Congressional candidates

State officials and parties

Local officials

Former federal officials

International lawmakers

Meanwhile, dozens of brands and organizations are also celebrating 4/20 with a variety of promotions, events and calls to action.

Schumer Worries Senate Marijuana Banking Vote Could Undermine Broader Legalization Push

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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