The governors of Connecticut and Illinois both said on Wednesday that legalizing marijuana should be a part of plans to generate revenue for their cash-strapped states.
Illinois Gov. J.B. Pritzker (D), who campaigned last year on a pro-legalization platform, said that the state needed to “embrace some near term reasonable—and realistic—new revenue” in a speech detailing his budget proposal.
“Let’s begin with this: By legalizing and regulating adult-use cannabis in this legislative session, we will create jobs and bring in $170 million in licensing and other fees in this fiscal year 2020,” he said.
✅ Let’s legalize and regulate adult-use cannabis.
✅ Let’s legalize and tax sports betting.
✅ Let’s enact a tax on insurance companies to help cover the costs of the state’s Medicaid program.
— Governor JB Pritzker (@GovPritzker) February 20, 2019
While the move would bring economic benefits for the state, Pritzker added, “I have noted many times that I don’t view this issue through a purely financial lens.”
“I think we should take this action for our state because of the beneficial criminal and social justice implications and the jobs that it will create. And let’s be honest, like it or not, cannabis is readily available right now. I would rather the state tax it and regulate it than deny the reality of its use and accessibility.”
Watch Pritzker’s marijuana legalization comments at about 32:25 into the video below:
Pritzker’s budget plan would provide for the licensing of more than 2,000 cannabis cultivators, which would “accelerate more than $200 million in future cannabis tax revenue” through a licensing and tax credit system.
Overall, “it is estimated that $170 million will be realized in fiscal year 2020,” the budget proposal states. “Initial license fees would be the same price as the current medical cannabis renewal fee of $100,000. Credits against future cannabis taxes would be equal to 1/5th of 90 percent of the license fee, reducing the economic cost of the licenses to a value closer to the fees in other states.”
Last year, New Jersey Gov. Phil Murphy (D) proposed a similar budget plan that included marijuana legalization. But so far, the plan hasn’t played out, as lawmakers continue to weigh legalization legislation.
Connecticut Gov. Ned Lamont (D) also unveiled his two-year budget proposal on Wednesday and, while he isn’t counting on revenue from the possible future legalization of cannabis in his recommendations to lawmakers, he emphasized during a speech that ending prohibition could represent an additional new revenue source for the state.
Lamont, who said that cannabis reform would be one of his “priorities” after he was elected last year, argued that it is important to develop “new sources of revenue” beyond his budget proposals.
That includes “legalized recreational marijuana like our neighbors, that will be carefully regulated for a safer market, with tax,” he said during the speech.
Even though Lamont’s budget document doesn’t include legal marijuana revenue, it does call for the establishment of a state-licensed industrial hemp program. The governor proposed providing the state Department of Agriculture with $136,000 in funding to “develop and regulate a state industrial hemp program.”
“This is an economic development opportunity for agricultural producers in Connecticut, a sector that represents $4 billion in economic impact to the state each year, and employs about 22,000 people,” the proposal states. “Governor Lamont is solidifying his commitment to economic development and agriculture by investing in this new opportunity.”
Connecticut remains one of the states where legalization is most likely to pass in 2019, regardless of its exclusion from the budget plan. A House bill to tax and regulate marijuana sales that was filed last month has 40 cosponsors—more than a quarter of the chamber’s members.
Elsewhere in the U.S., Wisconsin Gov. Tony Evers (D) said this week that his budget proposal, which is set to be released later this month, will include plans to legalize medical marijuana and eliminate penalties for low-level cannabis possession, manufacturing and distribution. Individuals with prior marijuana convictions could also apply to have their records cleared under his plan.
Evers said his proposal calls for decriminalization instead of legalization because the administration is “starting with places that we feel we can win.”
In Rhode Island, Gov. Gina Raimondo (D) included legislative language to accomplish marijuana legalization in her budget proposal last month. According to the plan, legal sales will bring in about $22 million in tax revenue annually.
And New York Gov. Andrew Cuomo (D) also proposed legalization legislation in his budget plan this year.
Photo courtesy of ABC 20.
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.