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Marijuana Tax Revenue Should Fund Subway Improvement, New York’s Cuomo And De Blasio Say

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Tax revenue from legal marijuana sales would help fund efforts to improve the Metropolitan Transportation Authority (MTA) in New York under a plan announced on Tuesday by Gov. Andrew Cuomo (D) and New York City Mayor Bill de Blasio (D).

As the state moves closer to legalizing cannabis, leading lawmakers are already seeing opportunities to use marijuana tax revenue for infrastructure projects. In this case, the governor and mayor agreed that some of those dollars should supplement revenue from a congestion pricing plan they’re proposing.

“Congestion pricing tolls would be supplemented with State and City revenue from a fixed amount of the new internet sales tax derived from sales in New York City, with a growth factor, and a percentage of the State and City revenue from the cannabis excise tax,” reads part of the plan.

Portions of state and city marijuana tax revenue “will be placed in a ‘lockbox’ to provide a funding source necessary to ensure the capital needs of the MTA can be met, with priority given to the subway system, new signaling, new subway cars, track and car repair, accessibility, buses and bus system improvements and further investments in expanding transit availability to areas in the outer boroughs that have limited mass transit options.”

It was unclear whether Cuomo would back earmarking marijuana funds for transit when the idea was floated in December. But its inclusion in his and de Blasio’s 10-point plan, which also calls for the consolidation of transportation entities and combating fare evasion, puts an end to that question.

A report from New York University’s Rudin Center for Transportation Policy and Management noted that the state can expect to generate as much as $677 million in tax revenue from marijuana sales in the first year and concluded that legalizing cannabis “should be considered in designing any policies to improve the mass transit and commuter rail systems under the control of the MTA.”

But not everyone is on board. Some drug policy reform advocates have pushed back against using marijuana revenue for subways, for example.

Cannabis revenue should not be directed “to entities like the MTA, NYCHA and Health and Hospitals, which have consistently propagated harm and been complicit in the arrest crusade by targeting people who have used marijuana by calling the police or taking black and Latina mothers away from their children after nonconsensual maternal drug tests,” Melissa Moore,  New York State deputy director of the Drug Policy Alliance, wrote in an editorial.

The money should instead go toward “marginalized communities, and the people first in line need to be the people who have been ravaged by overpolicing and impacted by other insidious criminalization,” she wrote.

Assembly Speaker Carl Heastie (D) also expressed concerns about the transit funding proposal on Tuesday.

But lawmakers who had led on marijuana legalization proposals in the legislature seem more open to the idea of putting at least some amount of revenue toward transportation projects.

“I don’t think we should collect all of the cannabis revenue and put it into the MTA,” Assembly Majority Leader Crystal Peoples-Stokes (D) told Politico. “I totally, adamantly disagree with that, but do I think there’s some opportunity to identify a level of resources that can go on a consistent basis that they can use to plan budgets and capital projects, absolutely.”

“There was always an assumption that some money would go to the general fund, and if the governor and mayor are saying mass transit…there’s nothing inconsistent with that and the work Crystal and I have been doing,” Sen. Liz Krueger (D) said.

Cuomo included marijuana legalization language in the annual budget he proposed to lawmakers last month, but it is not clear whether the idea will end up making it into final enacted fiscal legislation or, if so, what form it will take.

Cuomo and de Blasio both first endorsed legalizing cannabis for the first time in recent months.

New York Cannabis Clash: Should Marijuana Taxes Fund Subways Or Social Justice?

This story has been updated to include comments from Heastie, Peoples-Stokes and Krueger.

Photo courtesy of Wikimedia.

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.

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Three Federal Agencies Take Public Comments On Cannabis Topics

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Three federal agencies—the Food and Drug Administration (FDA), the Environmental Protection Agency (EPA) and the Drug Enforcement Administration (DEA)—are now accepting comments from the public on cannabis-related topics such as hemp pesticides and the legal classification of marijuana globally.

In a notice published in the Federal Register last month, FDA said that it is seeking input on potential changes to the status of marijuana under international treaties.

EPA invited comments on applications for pesticides to be used on hemp, which comes months after the crop was federally legalized.

Meanwhile, people have the chance to share their perspective on a proposal DEA released last week that calls for the cultivation of more than three million grams of cannabis for research purposes next year. That 3.2 million gram quota would be 30 percent higher than this year’s. At the same time, DEA said its quota for prescription painkillers such as fentanyl and oxycodone would be decreased next year by more than 50 percent.

The comment period opened last week, and 25 people have weighed in at this point. Submissions received so far are primarily focused on DEA’s proposed reduction opioid production, with several chronic pain patients arguing that they will be negatively impacted. People can send comments on the cannabis and other drug quotas through October 15.

FDA initially made its request for input on cannabis’s global treaty status in March, but it was closed because an expected United Nations (UN) vote on a proposal to remove marijuana from the most strictly regulated category was postponed.

Last month, FDA said it was reopening the comment period until September 30, in anticipation that the UN will make a decision on the possible changes in the coming months. So far, a total of about 3,000 comments have been received, including those posted since August 29. The vast majority voice support for legalization, with many sharing personal anecdotes about the plant’s therapeutic benefits.

“Please lift the ban and prohibition of marijuana. Marijuana isn’t ruining the lives of countless Americans… America’s drug laws are doing that all by themselves via mass incarceration,” Zach Fowler wrote.

“I am 30 years old and suffer from a progressive neurologically condition that leaves me in constant debilitating pain along with a host of other symptoms. Without cannabis, I could not function enough to work for even care for my children,” Amanda Wood-Devore said. “Cannabis calms my pain, eases corresponding anxiety, and helps my constant nausea and vomiting.”

Alex Rol said that the “current marijuana laws are more destructive than protective.”

“We have seen extensive reports that cannabis can be used for medical purposes and many find its effects increase the ease of life,” he said. “While I understand the concern of those less familiar with cannabis on its legalization it simply isn’t right to incarcerate people for possession of a generally harmless substance.”

“I agree with the [World Health Organization] that cannabis should be removed from the Schedule 1 classification,” Michael Ochipa wrote, referring to a recommendation WHO released in February urging the rescheduling of marijuana and descheduling of CBD.

“Most of the research to date indicates that cannabis has a very positive risk/reward profile,” he wrote. “Side effects are lower, and medicinal benefits are greater than many over the counter drugs. It can also be grown easily at home making it more economical.”

Though it’s not clear how much stock FDA will put into personal stories of individuals who’ve benefited from marijuana in shaping the Trump administration’s position on scheduling changes, the volume of comments and consistency of support for legalization is significant. While there has been a focus on the medical potential of cannabis, several others emphasized the consequences of prohibition, particularly for communities of color.

If the United Nations does decide to adopt WHO’s recommendations, it wouldn’t mean that member nations would be free to legalize marijuana without technically violating the treaties. However, even under its current strict status, Canada and Uruguay have moved forward with legalization models, with Mexico expected to follow suit as early as next month.

Over at EPA, there hasn’t been quite as much interest from the public in submitting comments on pesticides applications for hemp. The agency announced last month that it was accepting input on 10 existing applications and said it hoped “this transparent and public process will bring hemp farmers and researchers increased regulatory clarity in time for next growing season.”

EPA said it’s not required to take public comment on the applications but is doing so “because of the potential significant interest from the public in these initial applications and in furtherance of being completely transparent about these applications.”

There may be significant interest from the public on hemp legalization generally, particularly among stakeholders who are eagerly awaiting federal regulations to unlock the crop’s potential, but that isn’t being reflected on the Federal Register notice page yet when it comes to pesticides. Only five people have commented on the proposal.

One person noted that the 10 pesticides under review contain almost the same ingredients and said “it really limits the ability of producers to manage pests and diseases.”

“I highly recommend expanding the list of compounds available to producers to increase the ability to suppress pests and diseases,” the anonymous commenter wrote. “There are many more bio-pesticides on the market that are safe for humans that specifically target agricultural pests.”

Another individual who said he and his partner are making a transition from growing cannabis in California to hemp in North Carolina wrote in support of the proposed pesticides.

“We have used the products under discussion with great effectiveness, especially the biological controls,” the person said. “Because hemp can be so susceptible to mold, fungus, and pests, it is imperative to have these tools to ensure a healthy and plentiful product.”

Finally, there was one comment in opposition to allowing any pesticides on hemp because, they wrote, “IT WILL JUST TURN IT IN TO POISON.”

EPA’s public comment closes on September 23. The agency did not say when decisions would be made about the applications, but it did state that it planned to give hemp farmers approval to use the tools before the 2020 planting season.

The fact that three separate federal agencies are now accepting comments on separate cannabis issues is another sign that the public has more opportunity than ever before to influence the government’s position on marijuana policy.

DEA Wants 3.2 Million Grams Of Marijuana Legally Grown In 2020

Photo courtesy of Nicholas C. Morton.

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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Bipartisan Lawmakers Circulate Letter Urging FDA To Back Off CBD Companies

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A bipartisan pair of lawmakers are circulating a sign-on letter asking colleagues to join them in urging the Food and Drug Administration (FDA) to back off companies that are selling CBD products in a responsible manner.

The “Dear Colleague” letter, which is being led by Reps. Chellie Pingree (D-ME) and James Comer (R-KY), emphasizes that hemp and CBD were federally legalized under the 2018 Farm Bill and argues that the lack of regulations for such products is creating industry uncertainty that’s inhibiting economic opportunities.

The letter was first reported by the U.S. Hemp Roundtable, which is asking its supporters to encourage their representatives to sign on.

FDA has said it is in the process of developing rules for the non-intoxicating compound, including a potential alternative regulatory pathway allowing for CBD to be added to the food supply and as dietary supplements. That could take years, however, as former FDA Commissioner Scott Gottlieb has noted.

In the meantime, the agency is being selective about enforcement action against companies that make unsanctioned claims about their products while also maintaining that all businesses selling CBD food items are violating the law.

The lawmakers aren’t satisfied. They described FDA’s regulatory timeframe as “untenable,” particularly because the U.S. Department of Agriculture is expected to release its rules for hemp “any day now,” and an official revealed this month that its draft regulations are currently undergoing final White House and Department of Justice review.

The members of Congress added that FDA’s current approach to CBD has “created significant regulatory and legal uncertainty for participants in this quickly evolving industry.”

“Given the widespread availability of CBD products, growing consumer demand, and the expected surge in the hemp farming in the near future, it’s critical that FDA act quickly to provide legal and regulatory clarity to support this new economic opportunity,” they wrote.

“Please join us in signing this bipartisan letter to Acting FDA Commissioner Ned Sharpless urging the agency to adopt a risk-based policy of enforcement discretion that targets bad actors while eliminating uncertainty for responsible industry stakeholders and consumers. Additionally, we are requesting that FDA to issue an interim final rule to regulate CBD as a dietary supplement and food additive.”

In the letter to Sharpless that Pingree and Comer are asking fellow lawmakers to sign, they laid out two requests for FDA.

First, the agency should “promptly issue guidance announcing a policy of enforcement discretion that maintains FDA’s current risk-based enforcement approach towards hemp-derived CBD products.” And second, it should “consider issuing an interim final rule, pending issuance of a permanent final rule, to establish a clear regulatory framework for CBD as a dietary supplement and food additive.”

The lawmakers added that they appreciate that FDA has pursued “enforcement actions against the worst offenders,” but that “it can do so while eliminating regulatory uncertainty for farmers, retailers, and consumers.”

“Without a formal enforcement discretion policy, anyone participating in the growing marketplace for legal hemp-derived products will continue to face significant legal and regulatory uncertainty,” they wrote.

Though issuing guidance on a “policy of enforcement discretion” wouldn’t be a codified law allowing companies to market CBD in the food supply, it would demonstrate to the industry that some protections are in place while FDA continues to navigate the rulemaking process.

Lawmakers have until Tuesday to sign the letter to FDA.

Read the Dear Colleague invitation and CBD letter to FDA below:

Pingree Comer CBD Letter by Marijuana Moment on Scribd

GOP Senate Chair Says He Plans Marijuana Banking Vote

Photo by Kimzy Nanney.

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 Banking Bill Will Get A Full House Floor Vote This Month

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A bipartisan bill to protect banks that service marijuana businesses will get a House floor vote by the end of the month, the office of Majority Leader Steny Hoyer (D-MD) confirmed to Marijuana Moment on Friday.

House leadership announced the decision to Democratic lawmakers at a closed-door meeting on Thursday.

“Mr. Hoyer said at the Whip meeting yesterday that he intends to move it this month,” a Hoyer staffer said in an email. “We’re discussing it with Members, but it hasn’t been scheduled just yet.”

Prior to confirmation from Hoyer’s office, four sources initially described the development to Marijuana Moment, with some saying the vote would be made under suspension of the rules—a procedure that is generally reserved for non-controversial legislation.

Voting on suspension would require two-thirds of the chamber (290 members) to vote in favor of the Secure and Fair Enforcement (SAFE) Banking Act in order for it to pass. The bill, which cleared the House Financial Services Committee in March, currently has 206 cosponsors, including 26 Republicans.

No amendments would be allowed to be added on the floor under the suspension process.

Problems could arise if lawmakers aren’t able to rally additional votes from conservative members or if there’s pushback over the strategy from progressive lawmakers, though it is unlikely Democratic leadership would advance the bill if they didn’t believe they have the votes for passage.

While interest in resolving the banking issue is generally bipartisan, it’s within reason to assume that lawmakers on both sides of the aisle might have wanted the opportunity to offer provisions such as extending protections to hemp businesses or adding language promoting social equity policies. That said, it is possible that leadership could file an entirely new piece of legislation that is similar to the SAFE Banking Act but contains modified provisions negotiated with key members and use that as the vehicle for floor action.

Many expected cannabis banking legislation to receive a floor vote before the August recess, but that did not come to fruition.

In any case, the development comes as the Senate Banking Committee is also preparing to hold a vote on marijuana banking legislation, with Chairman Mike Crapo (R-ID) announcing on Thursday that his panel is “working to try to get a bill ready.” He didn’t offer a timeline, however, other than saying he hoped to advance the legislation by the end of the year.

While sources told Marijuana Moment that Hoyer made his decision to allow cannabis banking vote following an earlier Wednesday meeting on the issue, it is likely that building momentum in the GOP-controlled Senate added to pressure on the House to act so that Democrats wouldn’t be seen as lagging behind Republicans on cannabis reform, an issue the party has sought to take political ownership of.

Following Crapo’s statement on advancing the banking legislation, Rep. Ed Perlmutter (D-CO), chief sponsor of the SAFE Banking Act, told Marijuana Moment that he welcomes the senator’s “commitment to resolve the banking conflicts that have been created by the misalignment in state and federal law on the issue of cannabis.”

“I remain focused on passing the SAFE Banking Act out of the House and look forward to working with my colleagues in the Senate as they take up the SAFE Banking Act or work to develop and pass similar legislation,” he said.

Banking access is largely seen as one of the most achievable pieces of cannabis legislation that stands to pass this Congress. Advocates and reform-minded lawmakers view it as one of the first steps on the path toward ending federal marijuana prohibition.

“We are seeing the blueprint in action and moving forward on critical legislation to protect state legal cannabis banking,” Rep. Earl Blumenauer (D-OR) told Marijuana Moment, referring to a memo he sent to House leadership last year outlining a committee-by-committee process for passing incremental cannabis bills leading up to major legislation to end federal prohibition. “Earlier this summer, the House passed protections for state and tribal cannabis laws. In the most cannabis friendly Congress in history, we need to keep up this momentum. There is still much to be done.”

There has been some disagreement within advocacy circles about whether it’s prudent to pass legislation viewed as primarily favorable to the industry before advancing comprehensive legislation that deschedules cannabis and takes steps to repair the harms of prohibition enforcement.

“It is our hope that after the successful passage of the SAFE Banking Act in the House, we will be able to advance legislation that ends the federal criminalization of cannabis once and for all,” Justin Strekal, political director of NORML, told Marijuana Moment. “Now is our time to demonstrate that marijuana law reform is both good policy and good politics.”

“We will not stop until otherwise law-abiding Americans are no longer discriminated against or criminalized due to the past or future choice to consume cannabis,” he said.

Neal Levine, CEO of the Cannabis Trade Federation, told Marijuana Moment that the group is “delighted that the U.S. House of Representatives is on the brink of passing a landmark piece of cannabis policy legislation that modernizes our antiquated banking laws to reflect the will of the people.”

“This is welcomed and long overdue news for the over 200,000 employees that work in the industry, cannabis businesses, and for public safety in the communities in which we operate,” he said. “Once the SAFE Banking Act passes the U.S. House, we call on the U.S. Senate to move quickly to protect our businesses and our workers.”

Pressure has been building all year from stakeholders and policymakers alike to get the legislation passed. Endorsements aren’t just coming from reform groups, either; 50 state banking associations, the National Association of State Treasurers, the top financial regulators of 25 states, a majority of state attorneys general and bipartisan governors of 20 states have also voiced support for the SAFE Banking Act.

Earlier this month, the head of the American Bankers Association predicted that the bill would be passed in the House “as early as September.”

GOP Senate Chair Says He Plans Marijuana Banking Vote

This story was updated to add comment from Perlmutter and Hoyer’s office.

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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