New York Gov. Andrew Cuomo (D), who only recently flipped from calling marijuana a “gateway drug” to endorsing its legalization, released details on Tuesday that shed light on exactly how he wants to end cannabis prohibition in 2019.
“Legalize adult-use cannabis,” Cuomo said in his State of the State speech. “Stop the disproportionate impact on communities of color and let’s create an industry that empowers the poor communities that paid the price and not the rich corporations who come in to make a profit.”
Under the plan, which the governor is including in his annual budget request to lawmakers, marijuana would be legal for adults over the age of 21.
Cuomo is proposing a 20 percent state tax and 2 percent county tax on marijuana transfers from wholesalers to retailers, in addition to a $1 per gram tax on dry flower for cultivators, along with a $0.25 per gram tax on trim.
The governor said that legalization “will create the good union jobs that we need.”
Here it is: Gov. Cuomo’s plan to legalize recreational use of marijuana for adults. pic.twitter.com/2eRnLEGYnw
— WXXI News (@WXXINews) January 15, 2019
His administration estimates that the move will eventually generate roughly $300 million in annual tax revenue, though counties and large cities would be allowed to opt out of legal sales—something that could potentially impact revenue.
Speaking of revenue, funds would be earmarked for a state traffic safety committee, small business development, substance abuse services and other programs.
The proposal would create a new Office of Cannabis Management to regulate the marijuana industry and would prohibit cultivation license holders from also operating retail outlets.
The plan would also create a process to review and seal prior marijuana conviction records.
The governor is proposing to ban home cultivation of marijuana by recreational consumers, though the plan would allow medical cannabis patients and their caregivers to grow their own medicine.
Cuomo formally endorsed legalizing cannabis for the first time in a December speech in which he laid out his priorities for New York’s 2019 legislative session. It was the culmination of his evolution on cannabis issues over the course of the past year or so.
Earlier, in August, during the course of a contentious primary race with the pro-legalization actress Cynthia Nixon, the governor formed a working group to draft a legalization bill after a state Department of Health report, which he commissioned, found that the benefits of legal cannabis outweigh its potential consequences.
Today Cuomo announces his plan to legalize marijuana in NY.
Here’s what I’ll be looking for:
A plan to ensure the economic benefits go to communities harmed by the War on Drugs – not rich white men looking to make $$ off a product that’s sent thousands of POC to prison.
— Cynthia Nixon (@CynthiaNixon) January 15, 2019
Earlier this month, Cuomo reiterated the promise to enact legalization during his inaugural address at the start of his third term as governor.
The prospects for legalization are believed to have gotten a significant boost from the fact that Democrats took control of the state Senate in November’s midterm elections after years of being in the minority.
Senate Republicans, for their part, seem poised to accept the fact that legalization is on the way and are taking steps to focus their efforts on arguing how cannabis tax revenue is earmarked rather than trying to oppose the end of prohibition.
“If New York State legalizes marijuana, we will propose that all tax revenues from marijuana sales go to tax relief – not to fuel more spending,” the caucus wrote in a budget document of their own on Tuesday.
The Cuomo administration, for its part, released several lengthy documents outlining the governor’s marijuana proposal.
See below for excerpts of explanatory documents from the governor’s office:
“Enact the Cannabis Regulation and Taxation Act. The Executive Budget proposes to regulate and control the manufacture, wholesale, and retail production, distribution, transportation, and sale of cannabis, cannabis related products, medical cannabis, and hemp cannabis within the State of New York, for the purposes of fostering and promoting temperance in their consumption, to properly protect the public health, safety, and welfare, and to promote social equality.
“This bill would impose three taxes on the adult-use of marijuana. The first tax is imposed on the cultivation of cannabis at the rate of $1 per dry weight gram of cannabis flower and $0.25 per dry weight gram of cannabis trim. The second tax is imposed on the sale by a wholesaler to a retail dispensary at the rate of 20 percent of the invoice price. The third tax is imposed on the same sale by a wholesaler to a retail dispensary at the rate of 2 percent of the invoice price, but collected in trust for and on account of the county in which the retail dispensary is located.
“Revenues from the State cannabis taxes will be expended for the following purposes: administration of the regulated cannabis program, data gathering, monitoring and reporting, the governor’s traffic safety committee, small business development and loans, substance abuse, harm reduction and mental health treatment and prevention, public health education and intervention, research on cannabis uses and applications, program evaluation and improvements, and any other identified purpose recommended by the director of the Office of Cannabis Management and approved by the Director of the Budget.”
New York Marijuana Plan by on Scribd
More New York Marijuana Plan by on Scribd
The full legislative language is available here.
Congressional Committee Asks JUUL For Documents On Marijuana Partnerships
Is the e-cigarette company JUUL planning on expanding its stake in the marijuana industry?
That’s one question the chair of a congressional subcommittee asked the company in a letter concerning JUUL’s role in the “youth e-cigarette epidemic” earlier this month.
Lawmakers have frequently criticized JUUL for making products—specifically flavored e-cigarette cartridges—that allegedly appeal to young people at a time when rates of cigarette use are steadily declining. But while JUUL was developed by the cannabis vaporizer company PAX, it hasn’t announced plans to further partner with marijuana companies.
Rep. Raja Krishnamoorthi (D-IL), who chairs the House Subcommittee on Economic and Consumer Policy, apparently sees the possibility on the horizon, though.
In a letter sent to JUUL on June 7, the congressman said his panel was investigating youth e-cigarette usage and, specifically, how the company’s marketing tactics might be exacerbating the issue. He requested documents on everything from clinical trials on how JUUL devices divert people away from traditional cigarettes to communications on the company’s rationale for the nicotine concentration of JUUL pods.
Tucked within the extensive request is a question about potential marijuana partnerships. Krishnamoorthi asked for:
“All documents, including memoranda and communications, referring or relating to proposals, plans, and/or intended partnerships or collaborations between JUUL and any cannabis-related companies, including but not limited to Cronos Group.”
It’s not clear where the Cronos-specific mention comes from, but the company has perviously caught the interest of the tobacco industry. The maker of Marlboro cigarettes, Altria Group, invested almost $2 billion in the Canada-based cannabis company in December. Two weeks later, Altria invested $13 billion in JUUL.
Marijuana Moment reached out to JUUL, Cronos and Krishnamoorthi’s office for comment, but representatives did not respond by the time of publication.
If a partnership does emerge, it would likely be met with some controversy, as opponents and proponents of marijuana reform alike have long expressed concern that the tobacco industry would take over the cannabis market and commercialize it in a way that mirrors how it peddled cigarettes.
Of course, given that tobacco use is declining and tobacco companies generally have the infrastructure that would make a pivot to cannabis relatively simple, such a partnership would not be especially surprising.
Senate Majority Leader Mitch McConnell (R-KY) has made the case several times that tobacco farmers in his state could leverage the federal legalization of industrial hemp and its derivatives by growing the crop to offset profit losses from declining tobacco sales.
Read Rep. Krishnamoorthi’s full letter to JUUL below:
2019-06-07.Krishnamoorthi t… by on Scribd
Photo courtesy of Wikimedia.
New York Lawmakers Might Actually Vote On Marijuana Legalization This Week
With just days left before the end of the legislative session, efforts to legalize marijuana in New York have been revived, with a possible vote this coming week.
Though momentum to pass a legalization measure seemed to largely die off after lawmakers in neighboring New Jersey announced they wouldn’t move forward with plans to end cannabis prohibition through the legislature, advocates are increasingly optimistic that a deal in the Empire State is imminent.
Democratic members in both the Senate and Assembly held conferences last week to discuss details of the legislation. Spectrum News reported that the meetings went well, with members indicating that there’s support for the measure.
That’s just one of several positive signs that a proposal many observers thought was dead for the year has new life.
On Saturday and Sunday, staff for legislative leaders from both chambers and Gov. Andrew Cuomo (D) met to negotiate provisions of a revised legalization plan.
Source says three way talks on marijuana taking place today in Albany among staff of two legislative leaders and @NYGovCuomo
Final bill expected to be posted Sunday night
— Zack Fink (@ZackFinkNews) June 15, 2019
On Wednesday, an earlier Senate version of the bill was assigned “same as” status in the Assembly version. That means the current proposals in each chamber lined up with identical language and is considered to be an indicator that the legislation could pass.
— Mike Baggerman (@MikeBaggerman) June 14, 2019
Assembly Speaker Carl Heastie (D) said on Friday that his party has yet to determine whether they’ll bring the bill to the floor, but he added that “I think there is support in the conference.”
Assembly Speaker Carl Heastie told reporters his conference hasn't made a decision yet on whether to put a bill legalizing marijuana on the floor for a vote.
"We haven't made a final decision yet, but I think there is support in the conference," he said.
— Jon Campbell (@JonCampbellGAN) June 14, 2019
He also characterized the window of time until the end of the session on Wednesday as “an eternity.”
Assembly Speaker Carl Heastie says there is no final determination on a marijuana legalization bill, but notes there is “an eternity” between now and the end of session on Wednesday.
— Nick Reisman (@NickReisman) June 14, 2019
Cuomo, who said late last month that passing legalization remains a top 10 priority, has said that lawmakers who fail to approve items on his agenda, including ending cannabis prohibition, “should all be primaried, because that is a failure of a basic progressive agenda.”
On the flip side, the chairman of New York’s Democratic Party said earlier this month that if the Senate approves the legalization bill, they run to risk of alienating voters in certain areas such as Long Island and upstate New York. But that argument neglects to account for recent polling that shows voters in those regions strongly support legalization.
Notably, the measure’s most vocal opponents with the anti-legalization Smart Approaches to Marijuana have been sending email blasts in recent days urging their supports to call senators and voice opposition to the bill, giving the impression that the group is anticipating a vote.
Assembly Majority Leader Crystal Peoples-Stokes (D), sponsor of the legalization legislation, seemed to confirm that suspicion on Friday, stating that after “conversations with my co-sponsor and colleague in the Senate, I am even more confident of a path for victory.”
.@CPeoplesStokes on status of marijuana legislation: "After conversations with my co-sponsor and colleague in the Senate, I am even more confident of a path for victory."
— Yancey Roy (@YanceyRoy) June 14, 2019
But despite that confidence, the fate of legalization in New York remains murky. An analysis earlier this month found that legalization was two votes short of a needed majority in the Senate.
Meanwhile, a number of key elected officials are calling on the governor and lawmakers to not only push legalization over the finish line but to include certain key provisions in the final legislation.
State Attorney General Letitia James (D) sent a letter urging that the bill expunge prior cannabis records.
“Before we create a booming business for legal marijuana, we must provide relief to those individuals that have paid much more to society than what was due,” she wrote.
Legalizing marijuana is a racial & criminal justice imperative. If we truly want a more fair system, we must ensure that those who were unjustly harmed be given a clean slate.
That means providing full expungement for those convicted for non-violent marijuana offenses. https://t.co/jt8lEkrnz7
— NY AG James (@NewYorkStateAG) June 16, 2019
New York City Mayor Bill de Blasio (D), a 2020 presidential candidate, also pushed for expungements and said in a Twitter thread that legalization should “empower local business and not big corporations.”
With only a few days left this session in Albany, we have a small window to legalize marijuana the RIGHT way.
— Mayor Bill de Blasio (@NYCMayor) June 16, 2019
We can right the wrongs of the past. We can bring fairness to communities of color. We can empower local business and not big corporations.
We have to keep the focus and bring this home.
— Mayor Bill de Blasio (@NYCMayor) June 16, 2019
And the Manhattan and Albany County district attorneys co-authored an op-ed calling leaders to “correct staggering inequities and promote public safety by passing” legalization.
DA Vance, @AlbanyCountyDA: "In the final days of session, Gov. Cuomo and state legislators must correct staggering inequities and promote public safety by passing the Marijuana Revenue and Taxation Act." #MarijuanaJustice ⚖️ @DrugPolicyOrg https://t.co/ESuMjAR03q
— Cyrus Vance, Jr. (@ManhattanDA) June 14, 2019
The Buffalo News reported on Sunday afternoon that there were still a number of outstanding issues left to be settled between lawmakers, including whether or not home cultivation of cannabis would be allowed, how tax revenue would be allocated and whether localities would have to proactively opt in to allowing marijuana businesses or if there would instead be an opt out provision for those wanting to ban cannabis commerce.
Marijuana Update: Talks continue in Albany at this hour, with one insider describing it’s chances as “50/50.”
At issue is where the revenue from legalization would go.
Source says @NYGovCuomo and legislature disagree on who is most in need.
Others say Cuomo wants his bill only.
— Zack Fink (@ZackFinkNews) June 17, 2019
The session ends on Wednesday, and so far no vote has been scheduled in either chamber.
Meanwhile, lawmakers early on Monday morning filed what appears to be backup legislation to expand the decriminalization of marijuana and to provide a process to expunge or vacate prior cannabis convictions. And others support putting legalization on the ballot through a referendum that voters can decide on.
The situation is very fluid, and over the next few days advocates will be stepping up the push for action in Albany. On Sunday, they held a rally outside Cuomo’s Manhattan office.
How many NY dads have been criminalized & separated from kids bc of broken pot laws?
— VOCAL-NY (@VOCALNewYork) June 16, 2019
This post has been updated to include the latest developments as well as comment from a number of elected officials.
Photo courtesy of Philip Steffan.
Texas Governor Signs Bill To Expand State’s Medical Marijuana Program
The governor of Texas signed a bill into law on Friday that significantly expands the state’s medical cannabis program.
The legislation, which was overwhelmingly approved by lawmakers last month, adds multiple medical conditions to the list of disorders that qualify patients of low-THC marijuana. Currently only patients with intractable epilepsy qualify under the CBD-focused program.
New qualifying conditions include epilepsy, multiple sclerosis, terminal cancer, autism, spasticity and amyotrophic lateral sclerosis.
Gov. Greg Abbott (R) signed the bill with little fanfare.
Reform advocates said the legislation is a big step in the right direction, even though it doesn’t go as far as they’d hoped. A 0.5 THC cap on marijuana products remained in the bill, for example, and a section that would have established a research program to study the therapeutic potential of cannabis was removed.
“Cannabis is effective medicine for many patients suffering from debilitating medical conditions,” Heather Fazio, director of Texans for Responsible Marijuana Policy, told Marijuana Moment. “HB 3703 represents a positive step toward a functional medical cannabis program, but sadly, it still leaves behind millions of Texas families that could benefit from legal access.”
Also this legislative session, the House of Representatives approved bills to more comprehensively expand the medical cannabis program and to decriminalize marijuana possession, but they died in the Senate.
Abbott signed a hemp legalization bill earlier this week.
Photo courtesy of Brian Shamblen.