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Two More Governors Call For Marijuana Legalization During Budget Speeches

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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.

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.

Via Illinois Governor’s Office.

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.

Wisconsin Governor Announces Marijuana Reform Plan Details

Photo courtesy of ABC 20.

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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California Governor Signs Marijuana Tax Fairness Bill But Vetoes Cannabis In Hospitals

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California Gov. Gavin Newsom (D) announced on Saturday that he signed several marijuana-related bills into law—including one that will let legal businesses take advantage of more tax deductions—but also vetoed another measure that would have allowed some patients to use medical cannabis in health care facilities.

Under a section of current federal law known as 280E, marijuana growers, processors and sellers are unable to deduct expenses from their taxes that businesses in any other sector would be able to write off. Until now, California policy simply mirrored the federal approach.

Please visit Forbes to read the rest of this piece.

(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)

Photo courtesy of Carlos Gracia.

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Former FDA Head Floats Federal Marijuana Regulation ‘Compromise’ To Address Vaping Issue

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Former Food and Drug Administration (FDA) Commissioner Scott Gottlieb seems to propose changing the scheduling status of marijuana under federal law as a “compromise” to provide limited regulations and promote research.

In an op-ed published in The Wall Street Journal on Friday, Gottlieb said the recent spike in vaping-related lung injuries involving contaminated THC cartridges demonstrates the need for federal regulations.

While he expressed frustration over the “federal government’s decade-long refusal to challenge state laws legalizing pot,” he also recognized that enforcing prohibition in legal states isn’t politically practical and floated a “feasible compromise” that would “require Congress to take marijuana out of the existing paradigm for drug scheduling, especially if Congress wants to allow carefully regulated access for uses that fall outside FDA-approved drug indications.”

That language leaves room for interpretation, but he goes on to say that the “ship has probably sailed on legalization for recreational use” and that “regulation of the potency of THC compounds, the forms they take, how they’re manufactured, and who can make purchases ought to be possible.”

Gottlieb stopped short of explicitly backing descheduling, which would represent a formal end to federal prohibition. Still, his recommendation that the government control aspects of legal marijuana markets like THC potency is a more concrete position than he’s taken in recent weeks, where he’s repeatedly bemoaned the lack of regulations and the gap between state and federal cannabis laws as contributing to vaping issues without endorsing a specific policy to correct it.

It’s clear in the editorial that the former commissioner feels Congress has missed its opportunity to prevent the proliferation of state-legal cannabis programs. And he criticized the Obama administration for issuing guidance that offered states some assurances that the Justice Department wouldn’t interfere in their markets, as well as congressional riders barring the department from using its funds to enforce prohibition against medical cannabis patients and providers following state laws.

“The result is an impasse,” he wrote. “Federal agencies exert little oversight, and regulation is left to a patchwork of inadequate state agencies. The weak state bodies sanction the adoption of unsafe practices such as vaping concentrates, while allowing an illegal market in cannabis to flourish.”

One area where FDA might be able to exercise its regulatory authority in this grey space would involve oversight of vaping hardware. Because the agency is able to regulate the “components and parts” of vapes for tobacco use—and because companies generally market those products as being intended for the use of vaporizing herbs and concentrates generally—it could be argued that FDA has jurisdiction over regulating the devices. However, that would still prove challenging “without clear laws and firm political support,” Gottlieb said.

“THC is currently illegal under federal law,” he said. “Right now there’s no middle ground allowing federal agencies to scrutinize these compounds for their manufacturing, marketing and safety.”

Again, it’s not exactly clear what kind of federal regulation Gottlieb is proposing to Congress. He spends part of his op-ed noting the difficulties scientists face in obtaining high quality cannabis for research purposes—an issue that policymakers have indicated rescheduling could resolve—but he also said the government should ensure that any reform move is “backed up with oversight and vigorous enforcement to keep a black market from continuing to flourish and causing these lung injuries.”

That’s led some to assume he’s talking about descheduling and providing for broad regulations, as regulating the market is largely viewed as a primary means of disrupting the illicit market and enforcing safety standards for marijuana products. But the continued ambiguity of his position raises questions about whether he’s actually proposing Congress should go that far.

“The protracted hand-wringing over federal cannabis policy must stop,” he said. “The tragic spate of fatalities related to vaping of pot concentrates means the time has come for Congress and the White House to stop blowing smoke and clear the air.”

Leading Civil Rights Group Calls On Lawmakers To Support Comprehensive Marijuana Legalization Bill

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Mexican Senate Committees Will Introduce Marijuana Legalization Bill Next Week

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Mexican Senate committees will introduce an updated proposal to legalize marijuana for adult use within days.

During a meeting on Thursday, members of the Health, Justice, Public Security and Legislative Studies Committees announced that they would remain in permanent session as they go through various legalization bills that lawmakers have already filed and present a comprehensive new piece of legislation on Thursday.

Sen. Miguel Ángel Navarro Quintero of the ruling MORENA party, who is a cosponsor of one existing reform bill, said the development “is a positive step to regulate—it is definitely a positive step,” according to TV Aztecha.

The primary focus of the committees will be on legislation introduced by Interior Secretary Olga Sánchez Cordero last year, senators said. However, there are about a dozen other legalization bills on the table, including one to have the federal government control the marijuana market, and they said provisions of each proposal would be taken into consideration.

The panels will also look at public input and expert testimony—including a panel led by a former White House drug czar—that were gathered as part of a weeks-long series of cannabis events that the Senate organized.

“It is a backbone that we are taking into account,” Sen. Julio Menchaca of the MORENA party said of Sánchez Cordero’s bill, which the cabinet member filed while previously serving as a senator, adding that “each of the initiatives that different senators have presented are also very important.”

Quintero said “if we are committing an open parliament, all opinions must be taken into account, because if not, we would be simulating a process.”

If the committees are successful in advancing the legislation, that would put the chamber one key step closer to meeting a deadline imposed by the Supreme Court last year. After ruling that the country’s ban on possession and cultivation of cannabis by adults is unconstitutional, it gave lawmakers until the end of October to change federal drug policy.

The leader of the MORENA party in the Senate, Sen. Ricardo Monreal, said earlier this month that the chamber was on track to vote on a legalization bill ahead of that deadline.

Separately, the chairman of the Senate’s Agriculture Committee, Sen. José Narro Céspedes, said on Thursday that legalization will be an economic boon for farmers and must be implemented in a way that disrupts the illicit market.

Mexican Cabinet Member Accepts Lawmaker’s Marijuana Gift During Legislative Meeting

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.
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