New York Gov. Andrew Cuomo (D) included marijuana legalization in his budget proposal on Tuesday, setting the stage for another reform push in the legislature as the 2020 session gets underway. The move comes as a new poll shows that voter support for ending cannabis prohibition is at its highest level ever in the state.
While Cuomo put a similar plan in his budget last year, he ultimately dropped it as it became clear that lawmakers could not come to an agreement on the finer points of legalization ahead of legislative deadlines. His administration is optimistic that this year will be different.
According to the new proposal, New York stands to receive $20 million in revenue for the 2021 fiscal year and $63 million in 2022, according to the governor’s projections. By 2025, the amount is expected to rise to $188 million.
Watch Cuomo discuss marijuana during his budget speech in the video below:
“Legalize adult use cannabis,” Cuomo said during his budget speech. “I believe it is best done in the budget. I said that last year. I believe the budget is the opportunity, frankly, to make some tough decisions and work through tough issues that without the budget can often languish, and I suggest that we get it done in the budget.”
“This year Governor Cuomo is proposing a comprehensive regulatory approach to legalize cannabis, creating a new Office of Cannabis Management to specialize in cannabis regulation—overseeing the medical, adult-use and hemp programs,” his office said in a press release. “The proposal will administer social equity licensing opportunities, develop an egalitarian adult-use market structure and facilitate market entry through access to capital, technical assistance and incubation of equity entrepreneurs.”
“The proposal will also correct past harms to individuals and communities that have disproportionally been impacted by prohibition. To safeguard public health, the proposal limits the sale of cannabis products to adults 21 and over and establishes stringent quality and safety controls including oversight over the packaging, labeling, advertising and testing of all cannabis products. These efforts will be done in coordination with neighboring states Connecticut, New Jersey and Pennsylvania. The Governor will also propose creating a first of its kind Global Cannabis and Hemp Center for Science, Research and Education with SUNY and other expert partners.”
Under the proposal, there would be three levels of taxes. A 20 percent tax would be imposed on cannabis sold by any entity to a retailer. Cultivators would be taxed at $1 per dry weight gram for flower, trim would be taxed at $0.25 per dry weight gram and wet cannabis would be taxed at $0.14 per gram. Local jurisdictions with a population of at least one million people that allow marijuana businesses to operate would receive revenue from a separate, two percent tax.
“The Budget regulates and controls the production, distribution, transportation, and sale of cannabis, cannabis related products and medical cannabis within the NYS, for the purposes of fostering and promoting temperance in their consumption, to properly protect the public health, safety, and welfare and to promote social equity,” the proposal states.
The budget also calls for workforce increases at certain state agencies, including bolstering resources at the Division of Alcohol Beverage Control “to support the new Office of Cannabis Management (OCM).”
OCM will oversee a “first-in-nation comprehensive cannabis regulatory framework” that “centralizes all the licensing, enforcement and economic development functions in one entity.” It will “administer all licensing, production, and distribution of cannabis products in the adult-use, industrial, and medical cannabis markets,” according to the plan.
New York’s hemp regulators would also benefit from the budget proposal, with Cuomo calling for $1.1 million in “resources to support nine additional hemp oversight and inspection related staff.”
Cannabis reform has become a major issue for Cuomo, who only came to embrace legalization at the end of 2018 after he previously described marijuana as a “gateway drug.” Since then, he’s spent months negotiating with lawmakers about the specifics of an adult-use legalization bill, and he’s also helped arrange meetings with governors in the region to develop a plan for coordinated marijuana regulations.
While legalization didn’t come together last year, Cuomo did sign legislation expanding the state’s cannabis decriminalization policy and providing for expungements for those with prior marijuana convictions.
In his State of the State address earlier this month, the governor reiterated his commitment to legalizing marijuana in the Empire State, though he emphasized that the economic benefits “would be a hollow victory” if a legal system didn’t include social equity and restorative justice provisions.
The budget proposal aims to create a three-tier market structure—similar to how alcohol is distributed now— for the marijuana industry, and would generally prohibit vertical integration of businesses. That, along with licensing limits and supply management, are intended to “control market concentration and encourage social equity applicant participation,” the governor’s office said.
Technical assistance, training, loans and mentoring would be offered to marijuana business applicants that qualify under social and economic equity criteria.
Tax revenue would go toward implementation costs, traffic safety efforts and the social and economic equity plan, as well as substance misuse, harm reduction and mental health treatment and prevention programs, among other things.
Counties and cities with a population of 100,000 or more would be able to opt-out of allowing cannabis businesses in their jurisdictions.
Home cultivation of medical cannabis would be allowed, up to four plants per household, but recreational consumers would not be able to legally grow their own marijuana.
Cuomo’s proposal, or at least the idea of legalization in general, benefits from majority public support in the state, according to a poll that was released on Tuesday. The institute found that 58 percent of New Yorkers favor the policy change—the highest percentage reported in the state.
New York is one of several states where broad cannabis reform is expected to be taken up this year. In the Northeast alone, Rhode Island’s governor called for a state-run cannabis model in her budget plan, New Hampshire lawmakers plan to pursue non-commercial legalization and in New Jersey, the legislature approved a referendum to put the question of recreational legalization before voters during the November election.
This story has been updated with further details about Cuomo’s proposal.
New York Legal Marijuana Push ‘Effectively Over’ For 2020, Governor Says
New York Gov. Andrew Cuomo (D) conceded on Saturday that it’s unlikely marijuana will be legalized in the state this year.
“Marijuana and the gig economy were two of the more complicated initiatives that we wanted to work through that we didn’t get a chance to do,” he said in response to a question about which policy issues he would’ve liked to tackle in the annual budget bill that passed this week.
“Is the session effectively over? It’s up to the legislature, but I think it’s fair to say it’s effectively over,” he added, noting that several state lawmakers have been infected with coronavirus.
(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)
Congresswoman Wants Ban On DC Marijuana Sales Lifted Through Coronavirus Legislation
A congresswoman is calling on the government to end a policy prohibiting Washington, D.C. from legal marijuana sales, arguing that the jurisdiction is in particular need of tax revenue from cannabis commerce due to the coronavirus outbreak.
Rep. Eleanor Holmes Norton (D-DC) has repeatedly condemned the congressional rider barring the District of Columbia from allowing retail sales that has been extended each year since 2014, shortly after local voters approved a ballot measure to legalize low-level possession and home cultivation. But given the need for resources to combat the pandemic, she said a reversal of the provision should be included in the next COVID-related relief bill.
“At this moment of unparalleled need, D.C. should be able to collect tax revenue from all available sources, like every other jurisdiction, including from recreational marijuana, which is believed to be widely used in the District,” the congresswoman said in a press release on Friday, adding that D.C. was shorted in the last stimulus because Congress treated it as a territory rather than a state.
“While I am working for a retroactive fix in the next coronavirus bill, it is imperative that Congress also repeal the D.C. recreational marijuana commercialization rider in the next bill to help D.C. shore up its finances,” she said. “It is beyond unreasonable that congressional interference keeps only the District from commercializing recreational marijuana, while all other jurisdictions are free to do so.”
— Eleanor Holmes Norton (@EleanorNorton) April 3, 2020
“Bringing the District in line with other jurisdictions would create a critical source of tax revenue in our time of need.”
Last year, the House approved an appropriations bill that excluded the D.C. rider, but it was included in the Senate version and ultimately made its way into the final package that the president signed. The cannabis commerce ban was also included in President Trump’s budget proposal earlier this year.
“True to form, Representative Eleanor Holmes Norton continues to be one of the best allies to the cannabis reform movement,” Justin Strekal, political director for NORML, told Marijuana Moment. “During this unprecedented COVID-19 outbreak, it is critical that lawmakers analyze and reform any and every aspect of public policy to mitigate the health crisis and build a foundation for a strong recovery.”
“As the majority of states that regulate cannabis have deemed the industry essential to the continued functioning of their jurisdictions, the continued congressional prohibition of the District of Columbia enacting it’s own adult-use program becomes even more ridiculous,” he added.
Norton, in an interview about her push, said that the congressionally mandated prohibition on sales doesn’t prevent people from accessing cannabis but does block the city from collecting tax revenue.
“You can buy two ounces but, by the way you’ve got to do that on the black market,” she told WUSA-TV. “But there’s nobody to tax it. And I’m simply trying to get the taxes the District is due for merchandise, in this case marijuana that’s being consumed readily in the District of Columbia.”
🟢🟢 LEGALIZING COMMERCIAL MARIJUANA IN D.C. 🟢🟢
I spoke to D.C.'s Delegate @EleanorNorton
She's pushing for fully legal commercial marijuana sales in the District in a 4th Congressional stimulus package.
The District needs the money.
And people are smoking weed anyway. pic.twitter.com/PL9yoDKlrj
— Adam Longo (@adamlongoTV) April 3, 2020
Legislative priorities for Congress have shifted significantly as lawmakers attempt to address the outbreak, and that’s meant putting some reform efforts on hold. However, the issue isn’t being ignored entirely, and it’s possible that other members may look to attach modest marijuana proposals to additional coronavirus legislation.
For example, Rep. Katherine Clark (D-MA) said this week that U.S. Department of Veterans Affairs policy preventing its doctors from recommending medical cannabis in legal states puts service members at risk in Massachusetts because the state is shuttering recreational shops (but not medical dispensaries) and some veterans fear registering as patients out of concern that they could lose federal benefits.
Eleven senators wrote a letter to Appropriations Committee leadership asking that they allow small cannabis businesses to access federal loans and disaster relief programs. While the lawmakers said it should be enacted through an annual spending bill, advocates have argued that the policy change should be pursued through coronavirus legislation since these businesses are facing challenges just like those experienced by many other companies during the pandemic.
Photo courtesy of WeedPornDaily.
North Dakota Activists Say Marijuana Legalization Initiative Unlikely In 2020 Due To Coronavirus
North Dakota activists announced on Thursday that they are suspending their campaign put marijuana legalization on the November ballot due to the coronavirus outbreak.
In a Facebook post, Legalize ND said “we are going to have to face a few hard realities going forward” as businesses are shuttering, public events are being cancelled and individuals are encouraged to shelter in place. The pandemic means in-person signature gathering can’t take place, and the state does not allow for alternative signing options such as by mail or online.
“Due to the virus all of our major avenues for signature collection have been cancelled or indefinitely postponed, and going door to door is not safe for both those knocking and those getting knocked,” the group said. “Businesses will continue to collect, but we don’t want to create another vector for the coronavirus. As a result, at this time if something major doesn’t change we will not be able to make the 2020 ballot.”
Legalize ND said there’s no way for state policies related to signature gathering to be changed ahead of the November election. They needed to collect 13,452 valid signatures from voters before July 6 in order to qualify. In all likelihood, the campaign said it would have to shift its focus to the July 2022 primary election.
“This isn’t the solution we want, but given the situation it is what will have to happen,” the post states. “Stay safe, and hopefully we can make a major push when the quarantine ends.”
The proposed initiative would allow individuals to purchase and possess up to two ounces of cannabis. Unlike a much more far-reaching measure the same group pushed in 2018 that included no possession or cultivation limits, which voters rejected, this version would prohibit home growing, impose a 10 percent excise tax and establish a regulatory body to approve licenses for marijuana businesses.
North Dakota voters approved a medical cannabis initiative in 2016.
The coronavirus outbreak has dealt several blows to drug policy reform efforts in recent weeks.
Likewise in Washington, D.C., advocates for a measure to decriminalize psychedelics asked the mayor and local lawmakers to accept online signatures for their ballot petition.
In Oregon, advocates for a measure to decriminalize drug possession and a separate initiative to legalize psilocybin for therapeutic purposes have suspended in-person campaign events amid the pandemic.
In New York, Gov. Andrew Cuomo (D) recently conceded that legalization was “not likely” going to happen through the budget, as he hoped. Coronavirus shifted legislative priorities, and comprehensive cannabis reform seems to have proved too complicated an issue in the short-term.
Idaho activists announced on Thursday that they are suspending their campaign, though they are still “focusing on distributing petitions through online download at IdahoCann.co and encouraging every volunteer who has downloaded a petition to get them turned in to their county clerk’s office by mail, regardless of how many signatures they have collected.”
Finally, in Arizona, a legalization campaign is petitioning the state Supreme Court to instruct the secretary of state to allow individuals to sign ballot petitions digitally using an existing electronic system that is reserved for individual individual candidates seeking public office.
Photo courtesy of Philip Steffan.