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New York Marijuana Legalization Bill Is Officially Released, With Votes Planned Within Days

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A new bill to legalize marijuana in New York was released on Saturday after lawmakers and the governor finalized a deal that has been negotiated for weeks. Votes in the legislature are now expected to take place in the coming week.

Details about the agreed-upon language started to circulate on Wednesday, but now the text of the legislation has been released—a significant development that comes after lengthy talks between the Senate, Assembly and Gov. Andrew Cuomo’s (D) office.

Sen. Liz Krueger (D), the lead Senate sponsor of the Marijuana Regulation and Taxation Act (MRTA), said in a press release that the newly revised version of her legislation will “legalize adult-use cannabis in a way that foregrounds racial justice, while balancing safety with economic growth, encouraging new small businesses, and significantly diminishing the illegal market.”

“My goal in carrying this legislation has always been to end the racially disparate enforcement of marijuana prohibition that has taken such a toll on communities of color across our state, and to use the economic windfall of legalization to help heal and repair those same communities,” she said. “I believe we have achieved that in this bill, as well as addressing the concerns and input of stakeholders across the board. When this bill becomes law, New York will be poised to implement a nation-leading model for what marijuana legalization can look like.”

Assembly Majority Leader Peoples-Stokes (D), who is carrying the bill in her chamber, said the negotiated legislation “provides long awaited marijuana justice for New Yorkers, and makes significant steps and investments to begin to address the generational devastation caused by marijuana prohibition and mass incarceration.”

Cuomo said that “for generations, too many New Yorkers have been unfairly penalized for the use and sale of adult-use cannabis, arbitrarily arrested and jailed with harsh mandatory minimum sentences.”

“After years of tireless advocacy and extraordinarily hard work, that time is coming to an end in New York State,” the governor said. “Legalizing adult-use cannabis isn’t just about creating a new market that will provide jobs and benefit the economy—it’s also about justice for long-marginalized communities and ensuring those who’ve been unfairly penalized in the past will now get a chance to benefit. I look forward to signing this legislation into law.”

Here’s a summary of the main components of the 128-page New York marijuana legalization bill: 

-Adults 21 and older would be able to possess and purchase marijuana products from licensed retailers, which are expected to launch sometime in 2022.

-Effective immediately, there would be no penalties for public possession of up to three ounces of cannabis or 24 grams of marijuana concentrates,

-Adults could also cultivate up to six plants for personal use, three of which could be mature. A maximum of 12 plants could be grown per household with more than one adult. Homegrow would not take effect until regulators set rules for it, and they would have a maximum of six months to do so for medical patients and must do so for adult-use consumers no later than 18 months after the first retail recreational sales begin. Once home cultivation becomes legal, people could store up to five pounds of cannabis at home.

-People with convictions for marijuana-related activity made legal under the legislation would have their records automatically expunged.

-Protections against discrimination in housing, educational access and parental rights would be instituted for people who consume cannabis or work in the marijuana industry.

-A system of licenses for commercial cultivators, processors, distributors, retailers, cooperatives and nurseries would be created, with a prohibition on vertical integration except for microbusinesses and existing medical cannabis operators.

-Social consumption sites and delivery services would be permitted.

-Individual jurisdictions would be allowed to opt out of allowing retailers or social consumption sites by the end of this year, but residents could seek to override such bans via a local referendum process.

-A new Office of Cannabis Management—an independent agency operating as part of the New York State Liquor Authority—would be responsible for regulating the recreational cannabis market as well as the existing medical marijuana and hemp programs and would be overseen by a five-member Cannabis Control Board. Three members would be appointed by the governor, and the Senate and Assembly would appoint one member each.

-The legislation sets a goal of having 50 percent of marijuana business licenses issued to social equity applicants, defined as people from “communities disproportionately impacted by the enforcement of cannabis prohibition” as well as minority- and women-owned businesses, disabled veterans and financially distressed farmers.

-Cannabis products would be subject to a state tax of nine percent, plus an additional four percent local tax that would be split between counties and cities/towns/villages, with 75 percent of the local earnings going to the municipalities and 25 percent to the counties. Marijuana distributors would also face a THC tax based on type of product, as follows: 0.5 cents per milligram for flower, 0.8 cents per milligram for concentrated cannabis and 3 cents per milligram for edibles.

-Tax revenue from marijuana sales would cover the costs of administering the program. After that, 40 percent of the remaining dollars would go to a community reinvestment fund, 40 percent would support the state’s public schools and 20 percent would fund drug treatment facilities and public education programs.

-Police could not use the odor of cannabis to justify searches.

-The State Department of Health would oversee a study of technologies for detecting cannabis-impaired driving, after which it could approve and certify the use of such a test. Additional funds for drug recognition experts also would be made available.

-Driving while impaired from marijuana would remain a misdemeanor despite early reports that lawmakers had settled on downgrading it to a violation.

-The state’s existing medical cannabis program would also be changed to expand the list of qualifying conditions and allow patients to smoke marijuana products. Patients could also obtain a 60-day, rather than 30-day, supply.

-Smokable hemp flower sales would be allowed.

-Current medical cannabis businesses could participate in the recreational market in exchange for licensing fees that will help to fund the social equity program.

“The legislature finds that existing marihuana laws have not been beneficial to the welfare of the general public,” the bill’s findings section states. “Existing laws have been ineffective in reducing or curbing marihuana use and have instead resulted in devastating collateral consequences including mass incarceration and other complex generational trauma, that inhibit an otherwise law abiding citizen’s ability to access housing, employment opportunities, and other vital services. Existing laws have also created an illicit market which represents a threat to public health and reduces the ability of the legislature to deter the accessing of marihuana by minors. Existing marihuana laws have disproportionately impacted African-American and Latinx communities.”


Marijuana Moment is already tracking more than 900 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.

Cuomo said on Wednesday that he and lawmakers were “inches” away from reaching a final deal on the legalization proposal, adding that enacting the reform is a “priority” this year to make the state the “progressive capital of the nation.”

The governor has made several concessions to the legislature that represent large differences from the legalization plan he proposed in his annual budget, accepting provisions allowing home cultivation and directing how to distribute cannabis tax revenue for social equity purposes.

Earlier, he also proposed amendments to his own legislation last month that he hoped would address certain concerns from lawmakers and advocates. Those changes primarily concerned that issues such as social equity funding and criminal penalties for underage marijuana possession.

Senate Majority Leader Andrea Stewart-Cousins (D) said in a press release on Saturday that “there were many important aspects of this legislation that needed to be addressed correctly—especially the racial disparities that have plagued our state’s response to marijuana use and distribution as well as ensuring public safety—and I am proud we have reached the finish line.”

Assembly Speaker Carl Heastie (D) said legalization “had to be done the right way—in a way that would help not harm our communities that have been devastated by the state’s drug laws.”

“The MRTA does not just legalize the adult use of marijuana,” he said, “but it rights decades of disproportionately targeting people of color, ensures they are included in the legal marijuana industry and reinvests in education and in communities that have been harmed.”

State Attorney General Letitia James (D) said legalization “is a racial and criminal justice imperative” and “a critical step towards a fairer and more just system in New York.”

Peoples-Stokes (D) said earlier this month that talks had been “really good and really fruitful and I’m really encouraged.” In fact, “I’ve never felt this encouraged before.” That’s despite her saying just days earlier that negotiations with the governor’s office over the legalization had become heated to the point of screaming.

In the late stages of the negotiations, lawmakers said that they had reached an “impasse” with the governor over provisions related to impaired driving.

But Stewart-Cousins (D) said on Tuesday that the legislature was “really, really, really close on marijuana” following talks with executive staff office over recent weeks. “We have gotten past the impasse of the impaired driving.”

The legislature has also made clear that, despite the governor’s prior longstanding push to pass legalization through the budget, the issue will be handled as a standalone bill outside of that process. The Senate majority leader confirmed on Tuesday that that’s still the plan.

Krueger said last week that she’s “feeling that there is impetus to get this done as quickly as possible, and I am prepared to do everything in my power to close this out, get this bill to both floors and get it signed by the governor.”

There’s been speculation that the growing number of sexual harassment allegations against the governor—in addition to controversy over the state’s handling of nursing home COVID-19 death data—would leave him with less political clout to negotiate on behalf of his proposal over that of the lawmakers.

Krueger said that “you can’t ignore the fact that there was an interest in getting the marijuana bill done” on the governor’s end as these allegations were raised. “That seemed to pop up at around the same time.” However, she caveated, “pick a day and another shoe was dropping for the Cuomo administration.”

Another factor working against Cuomo’s negotiating power is that Democrats now have supermajority control over the legislature, which could embolden them to override a potential veto if they were to pass a legalization bill that contained provisions the governor didn’t like.

“We’ve been working on a marijuana bill. I’ve had a number of conversations with members,” the governor said last week. “We’ve been making good progress.”

Legalization advocates are pleased with the new deal.

“At long last, marijuana reform is finally almost a reality in New York State,” Melissa Moore, New York State director of the Drug Policy Alliance and member of Start SMART NY Coalition, said in a press release. “Advancing legalization in New York also puts another nail in the coffin of the war on drugs that has devastated so many communities across the state. By comprehensively addressing the harms of past criminalization, this legislation will create one of the most ambitious marijuana legalization programs in the country. It is setting a national model for reform with community reinvestment, social equity, and justice front and center.”

The Legal Aid Society called the proposal “landmark legislation” that “brings justice to New York State by ending prohibition, expunging conviction records that have curtailed the opportunities of countless predominately young Black and Latinx New Yorkers, and delivers economic justice to ensure that communities who have suffered the brunt of aggressive and disparate marijuana enforcement are first in line to reap the economic gain.”

New York lawmakers last month held the first public hearing of the year on proposals to legalize cannabis, specifically focusing on budget implications.

Legislators heard testimony during the joint session from two pro-legalization industry representatives and one opponent. Despite their ideological differences when it comes to legalization in general, all three panelists were critical of Cuomo’s reform proposal. The two reform advocates said they would prefer to advance the MRTA over his legislation.

Lt. Gov. Kathy Hochul (D)—who would become governor is Cuomo were to resign or be impeached—told Marijuana Moment in a January interview that there would be room for revisions to the current governor’s budget plan, stating that “much of it is going to be negotiated with the legislature, and all these details can be resolved with their input as well.”

This is the third year in a row that Cuomo has included a legalization proposal in his budget plan. The last two times, negotiations with the legislature stalled amid disagreements over certain components such as the tax structure for the market and funding for social equity programs.

There’s growing recognition among lawmakers in the state that legalization is an inevitability.

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

Cuomo said in November that the “pressure will be on” to end cannabis prohibition in the state following New Jersey voters’ passage of a legalization referendum.

Read the full text of the New York marijuana legalization bill below:

New York Marijuana Legaliza… by Marijuana Moment

Virginia House Leaders Urge Governor To Legalize Marijuana Earlier Than Planned, Reversing Prior Stance On 2024 Date

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.

Business

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

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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

 

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Politics

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

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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.
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Culture

How Politicians Are Celebrating The Marijuana Holiday 4/20 This Year

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The country has come a long way since the days of politicians dismissing or shying away from marijuana issues. And a good example of that shift is the ever-growing number of lawmakers who are leaning into the cannabis holiday 4/20 with calls for reform.

For example, to kick of Tuesday’s Senate session, Majority Leader Chuck Schumer (D-NY) spoke on the floor about the need to end federal marijuana prohibition, saying that “hopefully the next time this unofficial holiday 4/20 rolls around, our country will have made progress.”

Then there are the tweets—so many tweets—from state and congressional lawmakers, office seekers and regulators marking the occasion. It’s become a theme each year, and as more states pursue legalization, it seems more elected officials have grown comfortable embracing the holiday in their own ways.

Here’s what politicians are saying about cannabis this 4/20: 

Members of Congress

Congressional candidates

State officials and parties

Local officials

Former federal officials

International lawmakers

Meanwhile, dozens of brands and organizations are also celebrating 4/20 with a variety of promotions, events and calls to action.

Schumer Worries Senate Marijuana Banking Vote Could Undermine Broader Legalization Push

Photo courtesy of Brian Shamblen.

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.
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