Connect with us

Politics

New Mexico Lawmakers Will Work To Unify Conflicting Marijuana Proposals This Week Following House Passage

Published

on

One day after New Mexico’s House of Representatives passed legislation to legalize marijuana for adults 21 and older, a Senate panel held a Saturday hearing to take initial testimony on three competing legalization bills introduced in that chamber.

The committee did not vote on any of the measures, instead using the hearing to compare the various Senate proposals to one another as well as to the House-passed legislation, HB 12. “I think we’re just trying to get a feel for these four bills,” said Senate Tax, Business and Transportation Committee Chairman Benny Shendo Jr. (D), who led the hearing.

The bills’ sponsors will now work to combine elements of the various Senate proposals before returning to the committee for a possible vote next Saturday. Despite overlap on some issues, major disagreements remain over the structure of the commercial cannabis market, how tax revenue will be allocated and the makeup of a state oversight board that would regulate the new industry.

“In the next week, basically, the sponsors of these four bills need to see if we can get to one bill,” Senate Majority Leader Peter Wirth (D) said at the hearing, “and make a decision in this committee so that we don’t end up in a situation where there’s just multiple moving pieces.”

If backers can’t do that, Wirth added, “there’s a good chance we end up with nothing” by the time the legislative session ends on March 20.

Sen. Jacob Candelaria’s (D) SB 363 is the most closely aligned with the House measure, although Republican members of the Senate panel said they prefer SB 288, introduced by GOP Sen. Cliff Pirtle, who said he brought the measure “because I felt like something as important as legalizing the sale of recreational cannabis really needed to have a bipartisan approach.”

Sen. Craig Brandt (R), a member of the Senate panel, indicated he’s open to legalization depending on how it’s done.

“I think I can support this issue with the right pieces,” he said at the end of Saturday’s hearing, adding that SB 288 is “very close” to what he’d like to see in marijuana legislation. “There are certain things that I cannot and will not support in the House bill.”

The third bill in the Senate, SB 13, is a pared-down version of the other legalization proposals and is seen as a comparative outlier. The industry-backed bill’s House companion, HB 17, sponsored by Rep. Tara Lujan (D), was defeated in a House committee earlier this month as lawmakers proceeded with HB 12.

Lujan spoke in favor of SB 13 at the Senate hearing on behalf of the bill’s sponsor, Sen. Daniel Ivey-Soto (D), warning the panel against adopting an overly complex bill.

“There is a lot of stuff going on here,” Lujan said, “and I’ve seen cannabis legislation fail because it’s too complicated.”

But Rep. Javier Martínez (D), lead sponsor for HB 12, seemed to dismiss that criticism later in the hearing, stressing that it’s important the new law be comprehensive.


Marijuana Moment is already tracking more than 700 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.

“This is a big deal,” he said. “This is a big industry that we’re about to create, and we get a chance to design what the industry will look like ahead of time. That hasn’t happened with the other big industries in New Mexico.”

Martínez’s bill, passed Friday by House lawmakers in a 39–21 vote, would set up an extensive system of licensing and regulation for the cannabis industry. Rules for the new market would need to be implemented by January 2022. Small businesses and existing medical marijuana companies could begin selling products that same month, with other businesses set to open in September 2022.

The bill would allow adults to possess “at least” two ounces of cannabis (regulators could set limits beyond that) and grow up to six mature and six immature plants for personal use.

Martínez said SB 363 was the most similar to the House bill of all the Senate measures, calling it “very, very aligned to what we’re doing.”

Much of Saturday’s committee hearing focused on proposed limits on business licenses and how many plants licensed producers could grow. Not only will those rules determine how easily people can enter the new market, but they’ll also likely affect available supply—a big determinant of product prices.

Both HB 12 and SB 363 would allow businesses with cultivation licenses to grow an unlimited number of plants and create a separate category of small, so-called microbusinesses that could grow a small number of plants and then process and sell marijuana products directly. Those businesses would have a lower barrier to entry in terms of licensing and fees, aimed at ensuring wider access to the industry.

SB 288, meanwhile, wouldn’t create separate license categories but would set a per-plant fee on licensing in an effort to allow a lower point of entry for small growers.

One important difference between HB 12 and SB 363, Candelaria pointed out to the panel, is that his Senate bill would allow standalone businesses to establish cannabis consumption areas, designated zones where marijuana could be used openly. The areas would be regulated by the same board that would oversee the commercial industry.

The House-passed bill would allow social consumption, too, but would limit consumption licenses to businesses engaged in other elements of the industry, such as retail marijuana stores.

Pirtle, the sponsor of SB 288, said his bill approaches legalization with the aim of ending underground sales, not necessarily raising revenue. “The first goal when legalizing cannabis,” he said at the beginning of his testimony, “is to put the illicit market out of business.”

While there’s some disagreement over how to model tax projections, estimates of how much revenue the market could raise range between $13 million and $25 million for the first year of legal sales and as much as $150 million by year five.

SB 288 would raise less money due to its comparatively lower taxes, which Pirtle said would help make legal sales more competitive with the illicit market. His measure would route virtually all of the money back to municipal governments where the cannabis transactions take place. “Those are the communities that are going to be impacted,” Pirtle said, “so they can add more police officers or cop cars.”

Candelaria, for his part, said taxes rates aren’t the way to ensure legal businesses are competitive with the illicit market. Ensuring adequate supply, such as through allowing unlimited cultivation under SB 363 and HB 12, would do far more to ensure legal products can compete on price.

“As the result of New Mexico’s plant cap” on existing medical marijuana businesses, he said, “one gram of medical cannabis costs approximately on average $10 in New Mexico. It costs $8.15 a gram in Arizona and $5.96 in Colorado.”

Those prices in Arizona and Colorado, he added, include tax.

The three Senate bills also differ on how they would address social equity and racial justice. While those issues were raised only in passing at Friday’s hearing, drug reform advocates have said they prefer HB 12’s equity provisions over any of the Senate bills.

“HB 12 legalizes cannabis in an equitable way that begins to repair the harms that have disproportionately impacted Hispanic/Latinx, Black, Native and Indigenous people in New Mexico,” Emily Kaltenbach, senior director of resident States and New Mexico for the Drug Policy Alliance, told Marijuana Moment after Friday’s vote in the House. “New Mexicans are absolutely ready to see marijuana legalization become a reality in the state, but they have made it clear that repairing the damage done by the drug war is non-negotiable.”

The House measure would establish a fund to reinvest in communities most impacted by the war on drugs, especially Black and brown communities, and includes provisions to automatically expunge prior convictions.

SB 363 includes expungement and release provisions that “mimic” those in HB 12, Candelaria told the committee, noting that his bill would also criminal reduce penalties for possession all controlled substances, not just marijuana. Simple possession of a controlled substance would become a misdemeanor under SB 363 rather than a fourth-degree felony.

Candelaria proposed that his bill, SB 363, be the main vehicle to reconcile with the House measure. “What I think makes the most sense,” he told the committee chairman, “is because the House bill has already gone through the process, is that…my bill is basically merged into House Bill 12. I think they are the most similar, both in values and their approach.”

He added that he and Pirtle “already have plans to have lunch on Monday,” to discuss how to incorporate SB 288.

If all goes well, lawmakers will have whittled down the number of bills by the committee’s scheduled meeting on the measures this coming Saturday.

“I think the message was pretty loud and clear to the sponsors,” Shendo, the panel’s chairman, said at the end of this weekend’s hearing. “They’ve got a lot of work ahead of them, and I hope I get invited to one of those lunches.”

Meanwhile, New Mexico Gov. Michelle Lujan Grisham (D) has repeatedly described legalization as a means to boost the economy, especially amid the coronavirus pandemic. She said during a State of the State address in January that “a crisis like the one we’ve experienced last year can be viewed as a loss or as an invitation to rethink the status quo—to be ambitious and creative and bold.”

The governor also included cannabis legalization as part of her 2021 legislative agenda and said in a recent interview that she’s “still really optimistic about cannabis” this session.

Additional pressure to end cannabis prohibition this year is coming from neighboring Arizona, where voters approved legalization in November and where sales officially launched in January. New Mexico shares another border with Colorado, one of the first states to legalize for adult use.

Cannabis is also expected to be legalized across the southern border, in Mexico, with lawmakers facing a Supreme Court mandate to end prohibition by April.

Last year in New Mexico, a Senate panel passed a bill to legalize cannabis for adult use passed one New Mexico Senate committee —a measure promptly rejected in another committee before the end of the 30-day legislative session.

In 2019, the House approved a legalization bill that included provisions to put marijuana sales mostly in state-run stores, but it died in the Senate. Later that year, Gov. Lujan Grisham created a working group to study cannabis legalization and issue recommendations.

Polling indicates that voters are ready for the policy change. A survey released in October found that a strong majority of New Mexico residents are in favor of legalization with social equity provisions in place, and about half support decriminalizing drug possession more broadly.

Last May, the governor signaled that she was considering actively campaigning against lawmakers who blocked her legalization bill in 2020. She also said that she’s open to letting voters decide on the policy change via a ballot referendum if lawmakers can’t send a legalization bill to her desk.

Washington, D.C. Could Allow Marijuana Sales Under Mayor’s New Bill And Democratic Control Of Congress

Photo courtesy of Kimberly Lawson

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.

Ben Adlin is a Seattle-based writer and editor. He has covered cannabis as a journalist since 2011, most recently as a senior news editor for Leafly.

Politics

Another Poll Shows Majority Of Americans Support Marijuana Legalization And Expungements

Published

on

Another poll has found that a majority of Americans support legalizing marijuana and clearing the records of those with prior cannabis convictions.

This one—commissioned by CBS News and released on the unofficial marijuana holiday 4/20—shows that 55 percent of respondents said recreational cannabis should be legal in their own state, compared to 42 percent who said it should be illegal.

While still a sizable majority, that’s notably lower than several other recent surveys, including those released by Quinnipiac University and the Pew Research Center this month. Those polls found that 69 percent and 60 percent of Americans back broad legalization, respectively.

Unique to this poll, however, is that participants were also asked about related cannabis issues. For example, 59 percent of adults said that people with non-violent marijuana convictions in states that have legalized should have their records cleared, versus 37 percent who said the conviction shouldn’t be expunged.

Among those who were surveyed and live in a legal marijuana state, 60 percent said they favor the policy. And 53 percent of those living in states where prohibition is still on the books said cannabis should be legalized.

Via CBS News.

Twenty-three percent of respondents said legalizing cannabis would increase crime and 19 percent said it would decrease crime—but the majority (54 percent) said it would have “no effect.”

Via CBS News.

CBS also asked respondents whether they felt legalizing marijuana would lead people to use other drugs. Most people (45 percent) said the reform would have “not much effect” to that end, while 33 percent said they felt more people would seek out other substances and 17 percent said it would make people less likely to try other drugs.

Via CBS News.

Nearly half of Americans (48 percent) said legalization would boost local economies, while 14 percent said it would have a negative economic impact and 35 percent said it wouldn’t have much of an effect at all.

Via CBS News.

Interestingly, while most people backed legalization in the poll, 53 percent said that openly using marijuana socially is “unacceptable,” compared to 43 percent who said it was “acceptable”—perhaps more a reflection of respondents’ perception of other people’s views than their own.

The poll involved interviews with 1,004 adults from March 9-14 and has a margin of error of plus or minus 3.7 percentage points.

Despite this latest example of polling showing that Americans favor ending prohibition, President Joe Biden is still not on board with extending that policy to the federal level, as confirmed again by the White House press secretary on Tuesday.

While the president says he supports allowing states to set their own policies, he feels it should only be decriminalized and rescheduled federally and wants more research to be done if he’s to change his position on broader reform.

This poll comes 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.

Senate Majority Leader Chuck Schumer (D-NY), 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.

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

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.
Continue Reading

Business

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

Published

on

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

 

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.
Continue Reading

Politics

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

Published

on

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

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.
Continue Reading
Advertisement

Marijuana News In Your Inbox

Support Marijuana Moment

Marijuana News In Your Inbox

Marijuana Moment