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New York Governor Says Budget Uses Marijuana Revenue For Social Equity, With Details Forthcoming

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New York Gov. Andrew Cuomo (D) on Tuesday previewed expected revenue from a legal marijuana program he’s proposing through his annual budget, with more detailed legislative language set to be released later in the day.

The governor has repeatedly argued that taxing and regulating cannabis will help fill a historic, $15 billion budget deficit. And while the projected $350 million in annual revenue from marijuana taxes won’t resolve the problem on its own, it represents one opportunity to boost an economy that has suffered amid the coronavirus pandemic.

“We also propose legalizing adult-use cannabis, which would raise about $350 million,” Cuomo said in his budget speech, adding that “$100 million would go to a social equity fund. That would still give us $250 million towards the budget and our needs.”

A briefing book for the governor’s budget states that legalization should be enacted “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.”

Watch Cuomo discuss his marijuana legalization proposal below:

While it’s not immediately clear what that social equity fund would entail, it’s a notable component that advocates are closely monitoring. An outline of his budget plan similarly said the proposal will “correct past harms by investing in areas that have disproportionally been impacted by the war on drugs.”

In the briefing book, the governor calls for three types of taxes on recreational cannabis products: one based on THC content to be applied at the wholesale level, a 10.25 percent surcharge tax at the point of purchase by consumers and applicable state and local sales taxes.

The THC potency tax is intended to “more accurately capture both the true market value and the potential public health risks associated with the final cannabis product,” the governor’s office said, and it will be applied as follows:

“Cannabis flower/pre-roll/shake products are taxed at a rate of 0.7 cent per milligram of THC content. Cannabis concentrates/oil products are taxed at a rate of 1 cent per milligram of THC content, while cannabis infused/edible products are taxed at a rate of 4 cents per milligram of THC content.”

“Of the THC-based tax, retail surcharge, and any license fees, the first $10 million in FY 2023, $20 million in FY 2024, $30 million in FY 2025, $40 million in FY 2026, and $50 million annually thereafter are directed for social equity purposes, with the remainder directed to the newly established New York State Cannabis Revenue Fund,” it states.

A press release from the governor’s office clarifies that $100 million equity figure Cuomo mentioned in his speech is the aggregate funding over the first four years. “These monies will be used to support individuals and communities that have been the most harmed by decades of cannabis prohibition,” it says.

New York Budget Director Robert Mujica similarly said during a follow-up briefing on Tuesday that the social equity effort will support “communities that have been harmed by the nation’s policies with relation to cannabis.”

“As far as the cannabis and social equity fund, that is in the statute—we would have a permanent funding going program,” he said. “So as the program ramps up, a portion of the funding will go $100 million, and then there’ll be an ongoing fund once it ramps up to continue those investments.”

Further, the governor’s briefing book notes that the existing medical cannabis excise tax will continue, as well as “the current revenue distributions for an additional seven years and directing the currently undistributed 45 percent of tax revenue to the newly established New York State Cannabis Revenue Fund.”

The administration also estimates that the equivalent of 208 full-time jobs will be added to the Division of Alcoholic Beverage Control to support the new Office of Cannabis Management, which will be charged with regulating and issuing licenses for the new recreational marijuana market as well as those for medical cannabis and hemp.

Cuomo has twice pitched legalization through the budget, but reform legislation has stalled in part because of disagreements about how to allocate tax revenue. The governor has generally favored putting the monies in the state’s general fund, while leading legislators and activists have pushed for a more targeted distribution centering communities most impacted by the drug war.

If the outline and this latest speech are any indication, it seems Cuomo may be coming around to the latter proposal. But again, the full details of the plan will come when actual legislative language is released later on Tuesday.

In any case, the legislature will have more influence this year after Senate Democrats secured a supermajority in the November election. If the governor were to veto any bill over details he didn’t like, they could potentially have enough votes to override him.

There’s growing recognition within the legislature about the seeming inevitability of marijuana reform this year, regardless of differing opinions on the specifics.

The top Republican in the New York Assembly said last month that he expects the legislature to legalize cannabis this coming session.

Senate Majority Leader Andrea Stewart-Cousins (D) said in November that she also anticipates that the reform will advance next year, though she noted that lawmakers will still have to decide on how tax revenue from marijuana sales is distributed.

Cuomo also said that month that the “pressure will be on” to legalize cannabis in the state and lawmakers will approve it “this year” to boost the economy amid the health crisis.

The push to legalize in New York could also be bolstered by the fact that voters in neighboring New Jersey approved a legalization referendum in November.

Legislators prefiled a bill to legalize cannabis in New York earlier this month. The legislation, introduced in the Senate by Sen. Liz Krueger (D) and 18 other lawmakers, is identical to a version she filed last year that did not advance.

Separately, several other bills that focus on medical marijuana were recently prefiled in New York, and they touch on a wide range of topics—from tenants’ rights for medical cannabis patients to health insurance coverage for marijuana products.

This story has been updated to include comments from the budget director and details about the legalization proposal outlined in the briefing book.

New Virginia Senate Marijuana Committee Holds First Hearing On Legalization Bill

Photo elements courtesy of Metropolitan Transportation Authority and Carlos Gracia.

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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Louisiana House Approves Marijuana Decriminalization Bill As Other Reforms Advance

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The Louisiana House of Representatives on Tuesday approved a bill to decriminalize marijuana possession, while a committee advanced separate legislation to impose taxes on cannabis sales if the state ends up enacting broader legalization.

Meanwhile, a measure to legalize marijuana sales is scheduled for a vote on the House floor on Wednesday after being delayed from earlier consideration while the sponsor has worked to build support.

Tuesday’s action on the narrower decriminalization bill is the latest example of marijuana reform advancing in the traditionally conservative legislature this session.

The proposal, sponsored by Rep. Cedric Glover (D), has gone through several changes since its introduction.

Originally it would have made it so possession of up to 14 grams of cannabis punishable by a $50 fine and no jail time. And while it was gutted in committee last week to maintain a penalty of $300 and/or 15 days in jail, a floor amendment was approved on Tuesday that again removed the threat of incarceration and set the fine at $100.

Members approved the revised bill in a 67-25 vote.

“This bill is about common ground,” Glover said prior to the vote. “You know there are all different iterations of us in here today, black, white, male, female, big, small, conservative, progressive—and many of us who may not agree on as much as 90 plus percent of any given topic, especially when it comes to something as controversial as marijuana.”

“The possession of a small amount of marijuana should no longer result in two things,” he said. “One is setting out a result, and a path, that leads you to becoming a convicted felon. And neither should it set you on a path to go to prison.”


Marijuana Moment is already tracking more than 1,100 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.

In the House Ways and Means Committee, legislation to impose taxes on cannabis sales if Louisiana ends prohibition passed by a voice vote.

As amended by the committee, adults would pay a 15 percent sales tax on cannabis products, in addition to state and local taxes. The resulting revenues would be split between the state general fund and the local local jurisdictions where sales take place, with a chunk of the latter going to support law enforcement. The panel also advanced separate legislation to repeal a current law that requires illicit cannabis sellers to purchase tax stamps for their products. It would only take effect if legalization passes.

Meanwhile, the House approved a bill from Speaker Clay Schexnayder (R) on Monday that is meant to align Louisiana’s hemp program with U.S. Department of Agriculture rules for the crop that were finalized and took effect in March.

Additionally, a Senate committee advanced a bill on Monday that would impose taxes on raw marijuana flower if those smokeable products are legalized for medical use under another measure that cleared the House last week.

Advocates are closely monitoring each of these developments, but the adult-use legalization bill from Rep. Richard Nelson (R) is receiving the most attention.

It would allow adults 21 and older to purchase and possess marijuana from licensed retailers. Possession of up to two and a half pounds of cannabis would be lawful. Regulators would be tasked with creating a permit for adults to grow up to six plants for personal use.

The measure has twice been rescheduled for House floor action at the request of Nelson, who has worked on amendments intended to increase support in what is expected to be a close vote. One proposal that has been posted would remove the home cultivation provisions to address concerns that have been raised by law enforcement.

A separate measure from Nelson that the chamber is set to consider this week would establish a $2,500 annual fee for cannabis business licenses and a $100 annual fee for a personal cultivation permit.

There is an additional decriminalization bill moving through the legislature as well.

That legislation, sponsored by Rep. Candace Newell (D), would simply remove the existing criminal penalties for possession, distribution and dispensing of cannabis “if the legislature provides for a statutory regulatory system for the legal sale and distribution of marijuana and establishes a sales tax on those sales.”

When it comes to broader legalization, while advocates have generally expected resistance from the governor, who has repeatedly expressed opposition to the reform, he did say last month that he has “great interest” in the legalization proposal, and he pledged to take a serious look at its various provisions.

Last year, the legislature significantly expanded the state’s medical marijuana program by passing a bill that allows physicians to recommend cannabis to patients for any debilitating condition that they deem fit instead of from the limited list of maladies that’s used under current law.

Gov. John Bel Edwards (D) signed the measure in June 2020 and it took effect weeks later.

As state lawmakers have continued to advance these marijuana reform bills, two recent polls—including one personally commissioned by a top Republican lawmaker—show that a majority of voters are in favor of legalizing cannabis for adult use.

Top Connecticut Lawmaker Says Marijuana Legalization Bill Could Get Bumped To Special Session

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Schumer Reiterates That Marijuana Legalization Must Pass Before Cannabis Banking Reform

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With Democrats in control of the Senate this session, Majority Leader Chuck Schumer (D-NY) doesn’t plan to jeopardize a marijuana legalization bill he’s working on by advancing a more modest cannabis banking measure first.

In an interview with The Ringer that was released on Tuesday, the senator reiterated that he and his colleagues will be “introducing our bill shortly” to end cannabis prohibition—and he said banking reform legislation that’s been filed will have to wait because “we’re not going to bargain against ourselves.”

Schumer made a similar point in an interview with Marijuana Moment last month, arguing that passing a measure that protects banks that service state-legal cannabis businesses first could jeopardize the chances of advancing comprehensive reform. The thinking is that Republicans and moderate Democrats who are on the fence about a bolder policy change might be less inclined to vote for it if they have an opportunity to pass a more modest bill like the Secure and Fair Enforcement (SAFE) Banking Act instead.

The House has already approved the marijuana banking bill this session along largely bipartisan lines.

“We want a strong, comprehensive bill. We’ll introduce it,” the leader told podcast host Bakari Sellers, adding that “there’s huge support” for legalization, including in conservative states like South Dakota where voters approved a reform initiative last year.

“We’re going to get some support from the right on this as well we hope, and we’re going to push it,” Schumer said. “It’s going to take a little while. We’re going to need a mass campaign. But there’s real excitement in the country to do this.”

Schumer has been working with Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) to draft a legalization bill over the course of the past few months. He’s been making the case for reform everywhere from the Senate floor to a cannabis rally in New York City.

Beyond ending prohibition, Schumer said the proposal he and his colleagues are working on will “ensure restorative justice, public health and implement responsible taxes and regulations,” similar to what New York lawmakers sought to accomplish in a legalization bill that the governor signed into law late last month.

The senator also said last month that the legalization bill they’re working on will be brought to the floor of his chamber “soon.”

He, Wyden and Booker formally started their reform efforts by holding a meeting earlier this year with representatives from a variety of advocacy groups to gain feedback on the best approach to the reform.

Schumer made a point in March to say that it will specifically seek to restrict the ability of large alcohol and tobacco companies to overtake the industry.

Instead, it will prioritize small businesses, particularly those owned by people from communities most impacted by prohibition, and focus on “justice, justice, justice—as well as freedom,” he said.

He also urged voters to reach out to their congressional representatives and tell them that “this is long overdue.”

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.

Top Connecticut Lawmaker Says Marijuana Legalization Bill Could Get Bumped To Special Session

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Top Connecticut Lawmaker Says Marijuana Legalization Bill Could Get Bumped To Special Session

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Facing a tight deadline, a top Connecticut lawmaker said on Tuesday that a bill to legalize marijuana may be taken up in a special session after the legislature completes its regular business for the year.

With the June 9 end of the legislative session less than a month away, House Majority Leader Jason Rojas (D) was asked about the prospects of passing legislation to end cannabis criminalization in 2021—and he said lawmakers have been having “great conversations” with Gov. Ned Lamont’s (D) administration as they work through competing reform proposals.

“It’s just one of those issues that we’re working through some of the details that were of concern to everyone over the past couple months, but we’re making progress,” Rojas told a reporter from CT News Junkie during a press conference.

House Speaker Matt Ritter (D) chimed in to say that “if we can find a path to a deal, it’s the kind of thing that I think you could always go into overtime if you had to,” adding that “we’d all be comfortable coming to special session for that issue.”

Watch the Connecticut lawmakers discuss marijuana legalization, starting around 24:40 into the video below:

But while some progress has been made in reconciling competing reform proposals from the governor and the legislature, it’s not clear how close lawmakers are to reaching a deal and moving a proposal to floor votes—and Lamont is still waiting to review updated legalization legislation that’s in the process of being drafted, he said on Monday.

“I can tell you that [administration staff has] put together a very complete law for consideration by the legislature,” the governor said, referring to his own legalization proposal. “It’s sitting on their desk, and we’re ready for some decisions.”

Lamont’s chief of staff added that administration officials have been “meeting with legislative negotiators,” and they’re “waiting for them to provide us a revised draft” of a reform bill.

A bill to legalize marijuana for adult use that the governor is backing cleared the Judiciary Committee last month after being amended by the panel. But if a legalization measure isn’t enacted this year, Lamont said that he anticipates that the issue could go before voters.

“Marijuana is sort of interesting to me. When it goes to a vote of the people through some sort of a referendum, it passes overwhelmingly. When it goes through a legislature and a lot of telephone calls are made, it’s slim or doesn’t pass,” Lamont said. “We’re trying to do it through the legislature. Folks are elected to make a decision, and we’ll see where it goes. If it doesn’t, we’ll probably end up in a referendum.”

Ritter similarly said last year that if the legislature isn’t able to pass a legalization bill, he will move to put a question on the state’s 2022 ballot that would leave the matter to voters.

A competing legalization measure from Rep. Robyn Porter (D), which is favored by many legalization advocates for its focus on social equity, was approved in the Labor and Public Employees Committee in March.


Marijuana Moment is already tracking more than 1,100 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 survey from Sacred Heart University (SHU) that was released last month found that about 66 percent of people in the state favor legalizing cannabis for adult use, while 27 percent are opposed.

Lamont, who convened an informal work group in recent months to make recommendations on the policy change, initially described his legalization plan as a “comprehensive framework for the cultivation, manufacture, sale, possession, use, and taxation of cannabis that prioritizes public health, public safety, and social justice.”

But while advocates have strongly criticized the governor’s plan as inadequate when it comes to equity provisions, Ritter said in March that “optimism abounds” as lawmakers work to merge proposals into a final legalization bill.

Rojas also said that “in principle, equity is important to both the administration and the legislature, and we’re going to work through those details.”

To that end, the majority leader said that working groups have been formed in the Democratic caucuses of the legislature to go through the governor’s proposal and the committee-approved reform bill.

In February, a Lamont administration official stressed during a hearing in the House Judiciary Committee that Lamont’s proposal it is “not a final bill,” and they want activists “at the table” to further inform the legislation.

The legislature has considered legalization proposals on several occasions in recent years, including a bill that Democrats introduced last year on the governor’s behalf. Those bills stalled, however.

Lamont reiterated his support for legalizing marijuana during his annual State of the State address in January, stating that he would be working with the legislature to advance the reform this session.

Ritter said in November that legalization in the state is “inevitable.” He added later that month that “I think it’s got a 50–50 chance of passing [in 2021], and I think you should have a vote regardless.” The governor said in an interview earlier this year that he puts the odds of his legislation passing at “60-40 percent chance.”

The governor has compared the need for regional coordination on marijuana policy to the coronavirus response, stating that officials have “got to think regionally when it comes to how we deal with the pandemic—and I think we have to think regionally when it comes to marijuana, as well.”

He also said that legalization in Connecticut could potentially reduce the spread of COVID-19 by limiting out-of-state trips to purchase legal cannabis in neighboring states such as Massachusetts and New Jersey.

CBD Company’s Appeal Could Let Marijuana And Psychedelics Companies Trademark Businesses Pre-Legalization

Photo courtesy of Mike Latimer.

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