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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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Congressional Committee Asks JUUL For Documents On Marijuana Partnerships

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Is the e-cigarette company JUUL planning on expanding its stake in the marijuana industry?

That’s one question the chair of a congressional subcommittee asked the company in a letter concerning JUUL’s role in the “youth e-cigarette epidemic” earlier this month.

Lawmakers have frequently criticized JUUL for making products—specifically flavored e-cigarette cartridges—that allegedly appeal to young people at a time when rates of cigarette use are steadily declining. But while JUUL was developed by the cannabis vaporizer company PAX, it hasn’t announced plans to further partner with marijuana companies.

Rep. Raja Krishnamoorthi (D-IL), who chairs the House Subcommittee on Economic and Consumer Policy, apparently sees the possibility on the horizon, though.

In a letter sent to JUUL on June 7, the congressman said his panel was investigating youth e-cigarette usage and, specifically, how the company’s marketing tactics might be exacerbating the issue. He requested documents on everything from clinical trials on how JUUL devices divert people away from traditional cigarettes to communications on the company’s rationale for the nicotine concentration of JUUL pods.

Tucked within the extensive request is a question about potential marijuana partnerships. Krishnamoorthi asked for:

“All documents, including memoranda and communications, referring or relating to proposals, plans, and/or intended partnerships or collaborations between JUUL and any cannabis-related companies, including but not limited to Cronos Group.”

It’s not clear where the Cronos-specific mention comes from, but the company has perviously caught the interest of the tobacco industry. The maker of Marlboro cigarettes, Altria Group, invested almost $2 billion in the Canada-based cannabis company in December. Two weeks later, Altria invested $13 billion in JUUL.

Marijuana Moment reached out to JUUL, Cronos and Krishnamoorthi’s office for comment, but representatives did not respond by the time of publication.

If a partnership does emerge, it would likely be met with some controversy, as opponents and proponents of marijuana reform alike have long expressed concern that the tobacco industry would take over the cannabis market and commercialize it in a way that mirrors how it peddled cigarettes.

Of course, given that tobacco use is declining and tobacco companies generally have the infrastructure that would make a pivot to cannabis relatively simple, such a partnership would not be especially surprising.

Senate Majority Leader Mitch McConnell (R-KY) has made the case several times that tobacco farmers in his state could leverage the federal legalization of industrial hemp and its derivatives by growing the crop to offset profit losses from declining tobacco sales.

Read Rep. Krishnamoorthi’s full letter to JUUL below:

2019-06-07.Krishnamoorthi t… by on Scribd

Americans Want CBD Available Over-The-Counter, Poll Finds

Photo courtesy of Wikimedia.

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New York Lawmakers Might Actually Vote On Marijuana Legalization This Week

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With just days left before the end of the legislative session, efforts to legalize marijuana in New York have been revived, with a possible vote this coming week.

Though momentum to pass a legalization measure seemed to largely die off after lawmakers in neighboring New Jersey announced they wouldn’t move forward with plans to end cannabis prohibition through the legislature, advocates are increasingly optimistic that a deal in the Empire State is imminent.

Democratic members in both the Senate and Assembly held conferences last week to discuss details of the legislation. Spectrum News reported that the meetings went well, with members indicating that there’s support for the measure.

That’s just one of several positive signs that a proposal many observers thought was dead for the year has new life.

On Saturday and Sunday, staff for legislative leaders from both chambers and Gov. Andrew Cuomo (D) met to negotiate provisions of a revised legalization plan.

On Wednesday, an earlier Senate version of the bill was assigned “same as” status in the Assembly version. That means the current proposals in each chamber lined up with identical language and is considered to be an indicator that the legislation could pass.

Assembly Speaker Carl Heastie (D) said on Friday that his party has yet to determine whether they’ll bring the bill to the floor, but he added that “I think there is support in the conference.”

He also characterized the window of time until the end of the session on Wednesday as “an eternity.”

Cuomo, who said late last month that passing legalization remains a top 10 priority, has said that lawmakers who fail to approve items on his agenda, including ending cannabis prohibition, “should all be primaried, because that is a failure of a basic progressive agenda.”

On the flip side, the chairman of New York’s Democratic Party said earlier this month that if the Senate approves the legalization bill, they run to risk of alienating voters in certain areas such as Long Island and upstate New York. But that argument neglects to account for recent polling that shows voters in those regions strongly support legalization.

Notably, the measure’s most vocal opponents with the anti-legalization Smart Approaches to Marijuana have been sending email blasts in recent days urging their supports to call senators and voice opposition to the bill, giving the impression that the group is anticipating a vote.

Assembly Majority Leader Crystal Peoples-Stokes (D), sponsor of the legalization legislation, seemed to confirm that suspicion on Friday, stating that after “conversations with my co-sponsor and colleague in the Senate, I am even more confident of a path for victory.”

But despite that confidence, the fate of legalization in New York remains murky. An analysis earlier this month found that legalization was two votes short of a needed majority in the Senate.

Meanwhile, a number of key elected officials are calling on the governor and lawmakers to not only push legalization over the finish line but to include certain key provisions in the final legislation.

State Attorney General Letitia James (D) sent a letter urging that the bill expunge prior cannabis records.

“Before we create a booming business for legal marijuana, we must provide relief to those individuals that have paid much more to society than what was due,” she wrote.

New York City Mayor Bill de Blasio (D), a 2020 presidential candidate, also pushed for expungements and said in a Twitter thread that legalization should “empower local business and not big corporations.”

And the Manhattan and Albany County district attorneys co-authored an op-ed calling leaders to “correct staggering inequities and promote public safety by passing” legalization.

 

The Buffalo News reported on Sunday afternoon that there were still a number of outstanding issues left to be settled between lawmakers, including whether or not home cultivation of cannabis would be allowed, how tax revenue would be allocated and whether localities would have to proactively opt in to allowing marijuana businesses or if there would instead be an opt out provision for those wanting to ban cannabis commerce.

The session ends on Wednesday, and so far no vote has been scheduled in either chamber.

Meanwhile, lawmakers early on Monday morning filed what appears to be backup legislation to expand the decriminalization of marijuana and to provide a process to expunge or vacate prior cannabis convictions. And others support putting legalization on the ballot through a referendum that voters can decide on.

The situation is very fluid, and over the next few days advocates will be stepping up the push for action in Albany. On Sunday, they held a rally outside Cuomo’s Manhattan office.

Bill Allowing Interstate Marijuana Commerce Heads To Oregon Governor’s Desk

This post has been updated to include the latest developments as well as comment from a number of elected officials.

Photo courtesy of Philip Steffan.

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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Texas Governor Signs Bill To Expand State’s Medical Marijuana Program

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The governor of Texas signed a bill into law on Friday that significantly expands the state’s medical cannabis program.

The legislation, which was overwhelmingly approved by lawmakers last month, adds multiple medical conditions to the list of disorders that qualify patients of low-THC marijuana. Currently only patients with intractable epilepsy qualify under the CBD-focused program.

New qualifying conditions include epilepsy, multiple sclerosis, terminal cancer, autism, spasticity and amyotrophic lateral sclerosis.

Gov. Greg Abbott (R) signed the bill with little fanfare.

Reform advocates said the legislation is a big step in the right direction, even though it doesn’t go as far as they’d hoped. A 0.5 THC cap on marijuana products remained in the bill, for example, and a section that would have established a research program to study the therapeutic potential of cannabis was removed.

“Cannabis is effective medicine for many patients suffering from debilitating medical conditions,” Heather Fazio, director of Texans for Responsible Marijuana Policy, told Marijuana Moment. “HB 3703 represents a positive step toward a functional medical cannabis program, but sadly, it still leaves behind millions of Texas families that could benefit from legal access.”

Also this legislative session, the House of Representatives approved bills to more comprehensively expand the medical cannabis program and to decriminalize marijuana possession, but they died in the Senate.

Abbott signed a hemp legalization bill earlier this week.

Bill Allowing Interstate Marijuana Commerce Heads To Oregon Governor’s Desk

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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