The governor of Rhode Island called for marijuana legalization through a state-run program on Thursday, including the proposal in her fiscal year 2021 budget.
Gov. Gina Raimondo (D) said that adult-use cannabis shops should be operated by the government, which will source marijuana products through a contractor. While lawmakers in other states have floated the idea of a state-run program, none have ben enacted thus far.
“This legalization takes the form of a state-control model, similar to how liquor sales are regulated in New Hampshire and over a dozen states,” the budget states. “This regulatory approach will allow the state to control distribution, prevent youth consumption, and protect public health.”
Revenue from cannabis sales will be distributed between the state (61 percent), the contractor (29 percent) and municipalities (10 percent). The governor estimated that Rhode Island will take in $21.8 million in fiscal year 2020, $21.1 million in 2021 and $39.6 million in 2022, with revenue expected to grow by three percent each subsequent year.
“A State-control model for adult-use marijuana distribution would enhance the State’s ability to control the marketplace, deter over-consumption, and mitigate problematic, profit-driven practices.”
Under the plan, adults would be able to purchase up to one ounce of cannabis per visit and possess up to five ounces total. Home cultivation of recreational marijuana would be prohibited, according to WPRI.
The Office of Cannabis Regulation (OCR) would be responsible for regulating the market, as well as the state’s medical cannabis and industrial hemp programs.
The budget notes that OCR would work with the Division of Taxation to “ensure proper collection of marijuana excise and sales taxes,” license cannabis businesses and helps “local and state law enforcement in the proper enforcement of the state’s cannabis laws.” It would also partner with the Department of Public Health and the Department of Behavioral Healthcare, Developmental Disabilities and Hospitals to “address the prevention, treatment, and public health aspects of a legal cannabis market.”
This is a significant development in the Ocean State, as the governor had previously been reluctant to take a stance on legalization. But as more states in the region started pursuing the policy change, she said early last year that she was in favor of moving forward with reform.
Raimondo included a legalization proposal in her 2020 budget, but the plan was not adopted by the legislature.
She said in November that she’d again attempt to get legalization approved, calling it “the next logical step” after the growth of the state’s medical cannabis program. That came after Raimondo partnered with nearby states’ governors to discuss a regional approach to legalizing cannabis.
This is the first time her office has put forward a proposal to legalize through a state-run system.
Already, however, top lawmakers are pushing back against the budget plan as it concerns cannabis.
Senate President Dominick Ruggerio (D) said that he’s “disappointed that revenue from the proposed legalization of recreational marijuana was included in the budget proposal.”
“Seeing as the marijuana proposal is unlikely to pass, we effectively have a proposed budget that is out of balance to the tune of $21.8 million,” he said.
House Speaker Nicholas Mattiello (D) expressed a similar sentiment in a statement, saying that he’s “very concerned about her proposal to generate revenue from the sale of recreational marijuana when she was advised this would not be an acceptable policy to the General Assembly.”
“Over $20 million has been estimated, which is risky and short-sighted at best,” he said.
Liz Tanner, the director of the Department of Business Regulation, told WPRI that cannabis “is an industry that’s already around us whether we like it or not,” and she characterized the governor’s proposal as the “most restrictive and conservative adult-use plan by far.”
The idea of establishing a state-run market isn’t unheard of, however, as New Mexico’s House of Representatives approved a bill last year that called for the government to manage most sales in the cannabis market. It later died in the Senate, and a working group convened by the governor advised against the state-run model. In Pennsylvania, a lawmaker similarly introduced legislation last year to legalize and have the state operate marijuana shops.
As 2020 legislative sessions come online, a number of top state officials are paying attention to cannabis reform. The governor of New Mexico put legalization in her agenda for the year—and lawmakers filed a bill to accomplish that on Thursday. New York Gov. Andrew Cuomo (D) renewed his call for legalization in his State of the State address this month. And Virginia’s governor used his State of the Commonwealth speech to reaffirm his commitment to decriminalizing cannabis.
Photo courtesy of Mike Latimer.
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.