Montana lawmakers have rejected a request from the state’s Department of Revenue for money to fund the the voter-approved marijuana legalization program, a move that threatens to delay the launch of legal cannabis sales and slow the inflow of tax revenue to state coffers. Meanwhile, the governor is proposing to shift eventual tax revenue from sales to programs that are different than the ones spelled out in the initiative that voters approved in November.
The ballot measure passed by a roughly 57–43 percent margin. Under its provisions, the state officials are supposed to begin accepting marijuana business license applications by January 2022, with the first licensed sales expected to begin later that year or in early 2023.
To oversee the state’s marijuana licensing and regulatory system, Department of Revenue officials had requested $1.35 million, which, according to a January 5 memo from the department, would pay to hire 20 staffers and cover administrative costs, such as office space and equipment.
On Wednesday, however, the House Appropriations Committee denied that request, voting 23–2 to adopt an amendment that eliminates the program funding, which had been included in a House spending bill introduced last month.
Meanwhile, the provisions of the ballot measure to legalize personal marijuana possession and home cultivation took effect on January 1.
Bill Mercer (R), a former U.S. attorney, introduced the amendment to gut the regulatory funding, criticizing the state’s request “a huge tranche of money.”
“I think the challenge for us is there are a number of different ideas people are beginning to think through in terms of how we need to take what the voter approved and decide how that’s actually going to work in terms of public policy,” Mercer said, according to The Missoulian.
Kurt Alme, budget director for newly elected Gov. Greg Gianforte (R), reportedly said earlier in the week that the money was a “needed” expense in order for the state to meet marijuana deadlines laid out in the voter-approved marijuana legalization initiative.
Mercer, however, said he wanted more time to think about costs, noting that the state voter guide ahead of November’s election didn’t say anything about the marijuana measure “expanding state government.”
Legalization in Montana is expected to bring in far more than the $1.35 million in oversight costs. In the months leading up to the election, economists at the University of Montana estimated that a licensed marijuana industry could create $52 million in annual tax revenue once the market is up and running.
Under the ballot measure, half of that revenue would fund environmental conservation programs, with smaller portions going to veterans services, health care, local governments and the state’s general fund.
But under a budget proposal for the 2023 biennium unveiled by Gianforte on Thursday, millions of dollars in marijuana revenue would be directed toward expanding drug treatment services. Combined with money from a tobacco-related settlement, the plan would put $23.5 million per year into “substance abuse prevention and treatment programs,” the governor’s office said.
At a press conference on Thursday, Gianforte said he plans to “recognize the voters’ wishes” in passing legalization, but then explained his decision to spend the resulting funds differently than under the provisions of the ballot measure.
“I believe that our Constitution reserves appropriation of funds to the state legislature,” he said. “What we are requesting in this budget is that revenues from the legalization of marijuana be prioritized for two things. One is addiction recovery, and secondly, economic development. So that is different than what was in the initiative, but that right is reserved to the legislature. We’re asking them to prioritize those two things with any funds that are raised from the legalization of marijuana.”
A spokesperson for the Revenue Department, for its part, told The Missoulian this week that officials are “committed to implementing the laws that are passed by the Legislature.”
Meanwhile, in nearby South Dakota, where voters also legalized marijuana at the ballot box in November, officials have requested more than $4 million to get that state’s industry up and running. Legalization there has been projected to bring South Dakota $10.7 million in tax revenue during the 2022 budget year, rising to more than $29 million in fiscal 2024.
South Dakota Gov. Kristi Noem (R) has been critical of voters’ decision to legalize, calling it “the wrong choice for South Dakota’s communities” and saying, “I’ve never met anyone who got smarter from smoking pot.” Noem’s budget proposal last month contained $136,000 over three years to cover staffing and administrative costs related to cannabis—a little over three percent of what officials now say they need.
“This funding would go toward staff, technology, consultants and other costs, until revenues from the program are enough to sustain it,” Noem said. “But there will also be several other collateral costs, like safety, training and enforcement, among many others.”
The same person behind the Montana lawsuit, auto dealership owner Steve Zabawa, also filed a campaign finance complaint against a major funder of the legalization effort, the advocacy group North Fund, which contributed more than $4.7 million to the campaign.
Top Pennsylvania Official Restores Marijuana Flag After GOP Lawmakers Allegedly Got It Removed
Lt. Gov. John Fetterman’s (D) marijuana and LGBTQ flags are waving again at his Capitol office after state officials removed them Monday night, allegedly at the behest of certain GOP lawmakers who feel strongly about the activist decor.
The day after their removal, the lieutenant governor proudly announced on Twitter that he’d restored the flags—one rainbow-themed and the other displaying cannabis leaves.
“I really can’t emphasize this enough, my issue isn’t with the individuals that came to take them down. They’re kind of caught in the middle of it so it’s not them,” Fetterman told Marijuana Moment. “But the Pennsylvania GOP exerted enough pressure and made enough drama so they felt that they needed to do something and they took them down. When I realized that, I just put them back up.”
I even had to rehang this one. 🙄 pic.twitter.com/NPuADtb1Lt
— John Fetterman (@JohnFetterman) January 26, 2021
The flags have been an unusual source of controversy for some members of the legislature. In November, Republican lawmakers passed budget legislation that included a provision targeting his cannabis-themed office decor, making it so only the American flag, the Pennsylvania flag and those honoring missing soldiers could be displayed at the Capitol building.
It’s kinda flattering that they changed Pennsylvania law just for me. 🥺👉👈
Speaking of changing laws…
I’ll take them down when we get:
LEGAL WEED 🟩 FOR PA + EQUAL PROTECTION UNDER THE LAW for LGBTQIA+ community in PA.
— John Fetterman (@JohnFetterman) November 20, 2020
“There’s one great way to get them down for good and we can end this,” the lieutenant governor said. And that’s by enacting legislative reform.
“It shouldn’t have to be this way. These are not controversial things. These are very fundamentally American things. It’s freedom-related. It’s individuality-related. It’s jobs. It’s revenue,” he said. “These are not controversial, but these flags are. For the party that thinks it’s A-OK to talk about how an election that was secure was rigged, they sure have a real thin skin when it comes to free speech.”
A spokesperson for the state Department of General Services confirmed to Marijuana Moment that it was tasked with removing the flags and did so “in order to comply with section 1724-E of the fiscal code.” Asked whether lawmakers from the legislature’s Republican majority influenced the recent action, the representative repeated: “All I can say is the Department of General Services removed the flag in order to comply with section 1724-E of the fiscal code.”
Marijuana Moment reached out to the offices of the Senate majority leader and House speaker for comment, but representatives did not respond by the time of publication.
Defying the flag order is par for the course for Fetterman, a longtime marijuana reform advocate who is weighing a run for the U.S. Senate. His enthusiastic embrace of the issue has often put him in the spotlight, and he said he’d take that advocacy to Congress if he ultimately decides to enter the race and is elected.
“I’m the only person that’s actually called out my own party for its failure to embrace it when it is appropriate,” he said, referring to his repeated criticism of the Democratic National Committee’s rejection of a pro-legalization platform. “There has never been—or would ever be—a more committed advocate to ending this awful superstition over a plant for the United States.”
🚨🚨 PENNSYLVANIA *AND* DNC IS BEING LAPPED ON LEGAL WEED BY THE DAKOTAS NOW
— John Fetterman (@JohnFetterman) January 26, 2021
On his campaign website, the lieutenant governor touts his role in leading a listening tour across the state to solicit public input on the policy change. He noted that, following his efforts, Gov. Tom Wolf (D) “announced his support for legalization for the first time.”
It remains to be seen when legalization will happen in Pennsylvania, however. Despite Fetterman and Wolf’s support for legalization and the pressure they’re applying on lawmakers, convincing Republican legislative leaders to go along with the plan remains a challenge.
Fetterman previously told Marijuana Moment that pursuing reform through the governor’s budget request is a possibility. But in the meantime the administration is exploring the constitutionality of issuing “wholesale pardons for certain marijuana convictions and charges.”
Since adopting a pro-legalization position in 2019, Wolf has repeatedly called on the legislature to enact the policy change. He’s stressed that stressed that marijuana reform could generate tax revenue to support the state’s economic recovery from the coronavirus pandemic and that ending criminalization is necessary for social justice.
In September, he took a dig at the Republican-controlled legislature for failing to act on reform in the previous session. And in August, he suggested that the state itself could potentially control marijuana sales rather than just license private retailers as other legalized jurisdictions have done.
Fetterman previously said that farmers in his state can grow better marijuana than people in New Jersey—where voters approved a legalization referendum in November—and that’s one reason why Pennsylvania should expeditiously reform its cannabis laws.
He also hosted a virtual forum where he got advice on how to effectively implement a cannabis system from the lieutenant governors of Illinois and Michigan, which have enacted legalization.
Shortly after the governor announced that he was embracing the policy change, a lawmaker filed a bill to legalize marijuana through a state-run model.
A majority of Senate Democrats sent Wolf a letter in July arguing that legislators should pursue the policy change in order to generate revenue to make up for losses resulting from the COVID-19 pandemic.
Photo courtesy of Twitter/John Fetterman.
Hawaii Could Legalize Psychedelic Mushroom Therapy Under New Senate Bill
Hawaii could legalize the use of psychedelic mushrooms for therapy under a newly filed bill in the state legislature.
The measure, if approved, would direct the state Department of Health to “establish designated treatment centers for the therapeutic administration of psilocybin and psilocyn,” two psychoactive substances produced by certain fungi.
It would also remove the two compounds from the state’s list of Schedule I controlled substances and create a seven-person psilocybin review panel to assess the impacts of the policy change.
Few other specifics are provided in the bill, SB 738, introduced in the state Senate on Friday. It doesn’t specify who would qualify for the therapy, for example, or how precisely the drugs—which remain federally illegal—would be administered. The legislation simply says the Department of Health “shall adopt rules” in accordance with state law.
The new legislation comes less than a year after Hawaii lawmakers introduced bills to begin studying the therapeutic use of psychedelic mushrooms with the goal of eventually legalizing them, though those measures did not advance.
Entheogens—including other substances like ayahuasca and ibogaine—have emerged as a promising treatment for severe depression, anxiety and other conditions, although research remains ongoing.
In November, voters in Oregon approved a ballot measure to legalize psilocybin therapy that the state is now in the process of implementing.
The new Hawaii bill was introduced by Sens. Stanley Chang, Laura Clint Acasio, Les Ihara Jr. and Maile Shimabukuro, all Democrats. It has not yet been scheduled for a hearing, according to the state legislature’s website.
Marijuana Moment is already tracking more than 400 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 Hawaii proposal is one of a growing number of broader reform bills to have been introduced across the country this year as the debate on drug policy moves beyond marijuana. A measure introduced in New York earlier this month would remove criminal penalties for possessing small amounts of any controlled substance, instead imposing a $50 fine. Similar measures are expected to be introduced in California and Washington State this year.
A Florida lawmaker recently announced plans to introduce legislation to legalize psilocybin for therapeutic purposes in the state.
Lawmakers in New Jersey last month sent a bill to Gov. Phil Murphy (D) that would reduce criminal charges for the possession of psilocybin, but so far Murphy hasn’t signed the measure.
Voters, meanwhile, have been broadly supportive of drug reform measures in recent years. In addition to the psilocybin. measure, Oregon voters in November also approved an initiative to decriminalize possession of all drugs. Washington, D.C. voters overwhelmingly enacted a proposal to decriminalize the possession of psychedelics.
Despite the growing discussion of drug reform at statehouses across the country, some high-profile advocates are setting their sights on the 2022 election. Dr. Bronner’s CEO David Bronner, a key financial backer of successful reform efforts in Oregon, told Marijuana Moment last month that he’s expecting both Washington state and Colorado voters will see decriminalization or psilocybin therapy on their 2022 ballots.
Meanwhile, a new advocacy group is pushing Congress to allocate $100 million to support research into the therapeutic potential of psychedelics.
Photo courtesy of Wikimedia/Workman
Minnesota Governor Urges Lawmakers To Pursue Marijuana Legalization Amid Budget Talks
The governor of Minnesota on Tuesday implored the legislature to look into legalizing marijuana as a means to boost the economy and promote racial justice.
During a briefing focused on his budget proposal for the 2022-23 biennium, Gov. Tim Walz (D) was asked whether he is open to allowing sports betting in the state to generate tax revenue. He replied he wasn’t closing the door on that proposal, but said he is more interested in seeing lawmakers “take a look at recreational cannabis.”
Not only would tax revenue from adult-use marijuana “dwarf” those collected through sports betting, he said, but legalization would also help address “the equity issue and, quite honestly, the racial impact of our cannabis laws.”
Watch the governor discuss marijuana legalization below:
“I will say this, I will certainly leave open that possibility. Our neighboring states have done both of those things,” Walz said of legalizing sports gambling and cannabis. “I obviously recognize that that’s not a 100 percent slam dunk for people, and they realize that there’s cost associated with both. But my message would be is, I don’t think this is the time for me to say I’m shutting the door on anything.”
The Minnesota governor did say in 2019, however, that he was directing state agencies to prepare to implement reform in anticipation of legalization passing.
Earlier this month, the House majority leader said he would again introduce a bill to legalize marijuana in the new session. And if Senate Republicans don’t go along with the reform, he said he hopes they will at least let voters decide on cannabis as a 2022 ballot measure.
Heading into the 2020 election, Democrats believed they had a shot of taking control of the Senate, but that didn’t happen. The result appears to be partly due to the fact that candidates from marijuana-focused parties in the state earned a sizable share of votes that may have otherwise gone to Democrats, perhaps inadvertently hurting the chances of reform passing.
House Speaker Melissa Hortman (D) said this month that “Senate Republicans remain the biggest obstacle to progress on this issue.”
“Minnesota’s current cannabis laws are doing more harm than good,” she told The Center Square. “By creating a regulatory framework we can address the harms caused by cannabis and establish a more sensible set of laws to improve our health care and criminal justice systems and ensure better outcomes for communities,” she said.
Senate Majority Leader Paul Gazelka (R), for his part, said that while he would be “open to expanding medical use or hearing criminal justice reforms,” he doesn’t “believe fully legalized marijuana is right for the state.”
“Other states that have legalized marijuana are having issues with public safety,” he argued, “and we are concerned that we haven’t fully seen how this works with employment issues, education outcomes and mental health.”
Last month, the Minnesota House Select Committee On Racial Justice adopted a report that broadly details race-based disparities in criminal enforcement and recommends a series of policy changes, including marijuana decriminalization and expungements.
Another factor that might add pressure on lawmakers to enact the reform is the November vote in neighboring South Dakota to legalize adult-use cannabis.
Also next door, Wisconsin Gov. Tony Evers (D) is pushing lawmakers to enact marijuana reform and recently said that he is considering putting legalization in his upcoming budget request.
Photo courtesy of Philip Steffan.