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Rhode Island Governor Puts Marijuana Legalization Plan In Budget, Days After Lawmakers File Competing Plan

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The governor of Rhode Island on Thursday unveiled his budget proposal for the 2022 fiscal year, and it includes a plan to legalize marijuana in the state.

The move comes two days after legislative leaders introduced their own bill to tax and regulate cannabis sales. While there are a number of differences, the lawmakers and administrative officials signaled that they intend to work together as they move through the process.

Gov. Dan McKee’s (D) proposal calls for 25 marijuana retailers to be licensed each year for the first three years of implementation. Those would be awarded on a lottery basis, but five would be specifically given to minority-owned businesses, a category that also includes firms run by women. Additional licenses would be issued in the future based on demand.

Sales would begin in April 2022.

The plan calls for a “strictly regulated legal market for adult-use marijuana” that is “anchored in principles of equity and public health and safety,” an executive summary of the budget proposal says.

“Prohibiting the possession, cultivation, and sale of cannabis to adults has proven to be an ineffective policy for the State of Rhode Island,” the text of the legislation itself states. “In the absence of a legal, tightly regulated market, an illicit cannabis industry has thrived, undermining the public health, safety and welfare of Rhode Islanders. Regional and national shifts in cannabis policy have increased access to legal cannabis and marijuana products for Rhode Islanders in other states, the sale of which benefits the residents of the providing state while providing no funds to the State of Rhode Island to address the public health, safety and welfare externalities that come with increased access to cannabis, including marijuana.”

Cannabis sales would be taxed at 17 percent, which includes the state’s seven percent sales tax and a special excise tax of 10 percent. An administration official said on Thursday that a wholesale tax would also be applied and they estimate it would amount to three percent. The governor also included a call to create a “weight-based excise tax on marijuana cultivation.”

That’s similar to the tax plan put forward by Senate Majority Leader Michael McCaffrey (D) and Health & Human Services Chairman Joshua Miller (D), though their measure calls for concrete 20 percent tax that includes the 10 percent special tax, seven percent sales tax and a three percent tax for jurisdictions that allow cannabis firms to operate in their area.

According to a fiscal analysis of the governor’s plan, the state stands to generate $1.7 million in marijuana tax revenue in the 2022 fiscal year, rising to $16.9 million in 2023.

Sixty percent of tax revenue would go to the state general fund, 25 percent would cover administrative costs—as well as “public health and public safety costs associated with adult-use marijuana”—and the remaining 15 percent would go to local governments. However, for the first year of implementation, 70 percent of revenue would fund the administrative and regulatory costs.


Marijuana Moment is already tracking more than 800 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 revenue supports various public health and safety needs, including a $1.1 million investment dedicated to substance abuse education in health equity zones, $0.5 million in funding for local police, and $0.3 million to help the state oversee prevention and treatment programs,” the executive summary says.

Part of that police funding would involve using cannabis tax dollars to finance three out of 28 people enrolled in the state’s trooper training academy.

Shaleen Title, a former commissioner with the Massachusetts Cannabis Control Commission who has championed the need to center equity in legalization plans, told Marijuana Moment that she noticed “there are very specific numbers for cops” when it comes to revenue allocation under McKee’s proposal, but when it comes to small businesses, there are simply recommendations. “Speaks for itself,” she said.

Unlike the lawmakers’ proposed legislation, McKee’s plan would not create a new independent commission to regulate the market. Instead, the state’s existing Department of Business Regulation (DBR) Office of Cannabis Regulation would hold that responsibility.

Both plans allow adults 21 and older to purchase and possess up to one ounce of marijuana. However, only the lawmakers’ bill provides a home grow option, with the governor’s stipulating a series of fines and penalties for personal cultivation of any number of plants.

In terms of social equity, the governor’s proposal would establish a “Cannabis Reinvestment Task Force,” tasked with studying and making recommendations on the most effective way to allocate tax revenue to support programs “in the specific areas of job training, access to capital for small businesses, affordable housing, health equity and community development.”

The competing Senate bill would similarly create an equity fund from license and application fees to provide “technical assistance and grants” to promote industry participation from “disproportionately impacted areas.” It does not contain provisions giving licensing priority to equity applicants, however.

Liz Tanner, director of DBR, said at a press conference that the governor’s office and her department are “reviewing the Senate proposal,” but she stressed that the senators “have clearly put a tremendous amount of thought and effort into their proposal, and we look forward to the opportunity to dialogue with them and the whole General Assembly, on their efforts.”

Both plans are notably different than the proposal that former Gov. Gina Raimondo (D) had included in her budget last year. Prior to leaving office to join the Biden administration as commerce secretary, she called for legalization through a state-run model.

“This is a market-based proposal—not the the state-run proposal proposed by the previous administration,” Jonathan Womer, director of the state Office of Management and Budget, said at the press briefing.

McKee gave initial insights into his perspective on the reform in January, saying that “it’s time that [legalization] happens” and that he’s “more leaning towards an entrepreneurial strategy there to let that roll that way.”

House Speaker Joseph Shekarchi (D), meanwhile, has said he’s “absolutely” open to the idea of cannabis legalization but also leans toward privatization.

Late last year, the Senate Finance Committee began preliminary consideration of legalization in preparation for the 2021 session, with lawmakers generally accepting the reform as an inevitability. “I certainly do think we’ll act on the issue, whether it’s more private or more state,” Sen. Ryan Pearson (D) said at the time.

The growing momentum in Rhode Island also comes as lawmakers in neighboring Connecticut are also moving toward legalizing marijuana this year. Gov. Ned Lamont (D) included a cannabis legalization plan in his budget request last month, though advocates have been critical of several provisions, particularly as they concern social equity and home cultivation.

Meanwhile in Rhode Island, the Senate approved a bill last month that would allow safe consumption sites where people could use illicit drugs under medical supervision and receive resources to enter treatment. Harm reduction advocates say this would prevent overdose deaths and help de-stigmatize substance misuse.

Read the full text of the governor’s marijuana bill below:

Rhode Island Governor Marij… by Marijuana Moment

Key Congressional Chairman Plans To Refile Federal Marijuana Legalization Bill This Year

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.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

Politics

Texas Lawmakers Approve Marijuana Decriminalization Bill In Committee

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A bill to decriminalize marijuana possession in Texas—as well as a separate proposal to reduce penalties for possessing cannabis concentrates—advanced out of a key House committee on Friday.

These are the latest developments that have come after a week where Texas lawmakers have considered a medley of marijuana reform measures. But arguably the most significant piece of cannabis legislation to move out of committee would make possession of up to an ounce of marijuana a class C misdemeanor that carries a fine but no threat of jail time.

The full House of Representatives approved a cannabis decriminalization bill in 2019, but it did not advance in the Senate that session.

This time around, the House Criminal Jurisprudence Committee approved the decriminalization bill, which would also prevent law enforcement from making arrests over low-level possession. Other decriminalization proposals that were under consideration by the panel this week would not prohibit that enforcement action, which is key because police are currently able to incarcerate people who are arrested for class C misdemeanors even though the charge itself does not carry the risk of jail time in sentencing.

The advancing legislation, HB 441, sponsored by Rep. Erin Zwiener (D), would also prevent the loss of a driver’s license or the creation of a criminal record for possession of up to one ounce.

Separately, the committee advanced legislation to make possession of up to two ounces of cannabis concentrates a class B misdemeanor.

Both bills were among the subjects a lengthy hearing the panel held on Tuesday.

“Marijuana bills are moving through the committee process at record speed this session,” Heather Fazio, director of Texans for Responsible Marijuana Policy, told Marijuana Moment. “There’s good reason to be optimistic about the upcoming votes and the House and advocates will be doubling down their efforts to influence senators.”

This action comes one day after the House Public Health Committee unanimously approved a bill to significantly expand the state’s medical marijuana program.

Sponsored by Chairwoman Stephanie Klick (R), the bill would add cancer, chronic pain and post-traumatic stress disorder (for veterans only) as conditions that could qualify people for the state’s limited medical cannabis program.

It would further allow the Department of State Health Services to add more qualifying conditions via administrative rulemaking. And it would also raise the THC cap for medical marijuana products from 0.5 percent to five percent.


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.

On Thursday, the House Agriculture and Livestock Committee also discussed legislation that would make certain changes to the state’s hemp program, including imposing rules related to the transportation and testing of consumable hemp products.

While the Texas legislature has historically resisted most cannabis reforms, there are signs that this session may be different.

House Speaker Dade Phelan (R) said during a Texas Young Republicans event last month that while he wouldn’t be able to distinguish marijuana from oregano, he said, “I understand the issue.”

The speaker said that he voted for a limited medical cannabis legalization bill during his freshman year in the legislature, and his support for the reform is partly based on the fact that he has a “sister with severe epilepsy, and small amounts of CBD oil makes a big difference in people’s lives.”

Phelan also noted that he was a “joint author—no pun intended” of cannabis decriminalization legislation last session.

“I was able to go back home and explain it, and it wasn’t a big deal,” he said. “To me, it’s a reasonable criminal justice reform issue.”

Texans’ support for legalizing marijuana has grown significantly over the past decade, according to a poll released last month.

Sixty percent of state voters now back making cannabis legal “for any use,” the University of Texas and Texas Tribune survey found. That compares to just 42 percent who said the same back in 2010.

Leaders in both chambers of the legislature have recently indicated that they anticipate more modest proposals to be taken up and potentially approved this session, particularly as it concerns expanding the state’s limited medical cannabis program.

Phelan said he thinks “the House will look at” reform measures this year, including bills to legalize for adult use. He said the lawmakers will likely “review those again, and some will get traction, some will not.” However, the Senate remains an obstacle for comprehensive reform.

Legislators in the state prefiled more than a dozen pieces of cannabis legislation ahead of the new session. That includes bills that would legalize recreational marijuana, allow high-THC cannabis for medical use and decriminalize low-level possession of marijuana.

That said, Lt. Gov. Dan Patrick (R), who presides over the Senate, has killed prior efforts to enact reform in the state, raising questions about the prospects of far-reaching changes advancing in the chamber.

Nevada Lawmakers Approve Marijuana Bill To Allow On-Site Consumption Lounges

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Nevada Lawmakers Approve Marijuana Bill To Allow On-Site Consumption Lounges

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A bill to allow on-site marijuana consumption lounges advanced through a Nevada Assembly committee on Friday. The panel separately passed a measure making it so the concentration of THC in a person’s blood cannot be singularly used to determine impairment while driving.

The social use legislation, sponsored by Speaker Pro Tempore Steve Yeager (D), would create two new licensing categories for cannabis businesses in the state. One would be for “retail cannabis consumption lounges” and the other would be an “independent cannabis consumption lounge.”

Existing retailers could apply for the former license and sell products that could be consumed on-site by adults 21 and older. Independent lounges would not be permitted to sell cannabis on their own, but would need to have marijuana products delivered to consumers from another source.

That said, independent licensees could submit a request to regulators to sell cannabis that they produce or to enter into a contract with an adult-use retailer to sell their products.

The state’s Cannabis Compliance Board would also be responsible for creating regulations for on-site facilities and setting fees for license applicants. Businesses that qualify as social equity applicants would have a reduced fee.

Under the legislation, a person “who has been adversely affected by provisions of previous laws which criminalized activity relating to cannabis, including, without limitation, adverse effects on an owner, officer or board member of the applicant or on the geographic area in which the applicant will operate” is considered a social equity applicant.


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.

Yeager proposed a large-scale amendment to the proposal before it was approved by the Assembly Judiciary Committee. It builds on the definition and scoring system for social equity applicants, revises public safety requirements for lounges and ensures that products purchased at lounges cannot be removed from the facility, among other changes.

The Las Vegas City Council in 2019 approved an ordinance allowing for social consumption sites within city limits.

That year, Alaska became the first state to enact regulations that provide for the on-site use option at dispensaries. Colorado followed suit with legislation approved that legalized cannabis “tasting rooms” and “marijuana hospitality establishments” where adults could freely use cannabis. Social consumption sites are also provided for in New York’s recently enacted marijuana legalization law.

In Nevada, adding new license types and giving consumers this option—especially in the tourist-centric state—could further boost marijuana and other tax revenues. And Gov. Steve Sisolak (D) has had a particular interest in ensuring that those tax dollars support public education, which he talked about during a State of the State address in January.

Sisolak has also committed to promoting equity and justice in the state’s marijuana law. Last year, for example, he pardoned more than 15,000 people who were convicted for low-level cannabis possession.

That action was made possible under a resolution the governor introduced that was unanimously approved by the state’s Board of Pardons Commissioners.

Under the impaired driving bill that separately cleared the committee on Friday, the per se blood test for THC would no longer be used in determining impairment.

Advocates have argued that the limit is arbitrary and there’s a lack of scientific evidence demonstrating a link between the amount of THC metabolites present in the blood and active impairment.

New Mexico Governor Sends Marijuana Bill Sponsors A ‘Save The Date’ For Expected Legalization Bill Signing

Photo courtesy of Martin Alonso.

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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Biden Gets Yet Another Congressional Letter Blasting Marijuana-Related White House Firings

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President Joe Biden has received yet another letter from a lawmaker demanding answers about his administration’s practice of firing or otherwise punishing staffers for prior marijuana use.

Rep. Angie Craig (D-MN) noted the national push to end prohibition and how the White House’s actions reveal a troubling disconnect.

“Cannabis is legal for either medical or adult use in 36 states, with numerous states pursuing efforts to further legalize for adult use,” the congresswoman wrote. “In Minnesota, our state legislature is expected to vote on measures to legalize cannabis in the coming months following years of political and community organizing by activists throughout the state.”

“Minnesotans and the American people are demanding change to our harsh and unequally applied cannabis laws,” she wrote. “I look forward to seeing your Administration reverse course on this harmful and unnecessary hurdle to hiring diverse and talented public servants.”

Craig also mentioned efforts to legalize marijuana at the federal level and commented on Biden’s prior statements on more modest reforms.

“I stand ready to work with you as we revisit our country’s drug laws, including the descheduling of cannabis as a Class 1 drug at the federal level,” she said. “You have previously expressed your commitment to decriminalizing cannabis in acknowledgement that a cannabis conviction or even the stigma of cannabis use can ruin lives and prevent people from voting, gaining employment and contributing to society.”

This is the third letter from lawmakers that Biden has been sent regarding the federal marijuana employment controversy.

A coalition of 30 members of Congress sent a letter last month that sharply criticizes the administration for terminating or punishing multiple White House staffers who disclosed their prior cannabis use. They pointed out that Vice President Kamala Harris and at least one one other Cabinet member are on record about their own marijuana use experiences.

Prior to that, Rep. David Joyce (R-OH) sent a similar message to the president condemning news of the marijuana-related firings for people who were honest about their history with cannabis on a federal form that’s required as part of the background check process.

“Simply put, in a nation where the truth is considered malleable, we need to demonstrate to our young public servants that telling the truth is an honorable trait, not one to be punished,” the congressman wrote. “I respectfully request that your administration discontinue punishment of staff for being honest about their prior cannabis use and reinstate otherwise qualified individuals to their posts.”

White House Press Secretary Jen Psaki addressed the controversy last month, saying during a press briefing that while Biden could theoretically end the policy of firing staff over prior marijuana use himself, that’s not happening as long as cannabis is federally illegal.

She later said that the president’s stance on marijuana legalization “has not changed,” meaning he’s still opposed to the comprehensive reform.

Psaki has previously attempted to minimize the fallout over the cannabis firings, with not much success, and so her office released a statement last month stipulating that nobody was fired for “marijuana usage from years ago,” nor has anyone been terminated “due to casual or infrequent use during the prior 12 months.”

Read the new letter to Biden on White House marijuana employment policy below: 

Letter to Biden Regarding C… by Marijuana Moment

New Mexico Governor Sends Marijuana Bill Sponsors A ‘Save The Date’ For Expected Legalization Bill Signing

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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