As Vermont’s legislature resumes following last week’s recess, key committees and lawmakers are putting renewed focus on legislation to tax and regulate marijuana sales for adults.
The state Senate gave veto-proof approval to S. 54 earlier this month. Now the proposal goes to the House for consideration, but the larger legislative body isn’t going to rush into a floor vote right away; it still has other bills to evaluate before it can take up legislation “crossing over” from the Senate.
“The House has a tendency to go through things with a fine-tooth comb,” Rep. Sam Young (D) of Glover told Marijuana Moment in an interview. “It’s just the nature of the House. We’ve never taken testimony on tax and regulate either.”
“The Senate’s done it several times, but not in the House,” he said. “I believe the support is there, we’ve just got to do the work and fine-tune some stuff.”
The Senate-passed legislation would impose a 16 percent excise tax on sales along with a two percent local option tax for towns that levee the fee. The bill provides for the creation of a three-person Cannabis Control Board that would issue licenses and regulate the marijuana economy. Officials have projected a range of $3.8 million to $7.4 million in revenue in the first fiscal year, with the expected haul rising to as much as $16.6 million by 2024.
The bill has not yet been assigned to a committee by House Speaker Mitzi Johnson (D), though Rep. Sarah Copeland-Hanzas (D) of Bradford said it is likely to come before the House Committee on Government Operations, which she chairs.
“It could reside in my committee the entire time and I could ask for input from the Judiciary, Agriculture, General and probably the Human Services committees as well,” she said.
Copeland-Hanzas said she’ll also likely end up needing additional panels to consult on the bill.
Under the legislation as it stands, licenses for cultivators and testing labs would be issued between September and October of 2020. Retailers would receive licenses in spring 2021.
Vermont became the first state to legalize marijuana by legislative action—as opposed to via a voter initiative—in 2018, but it left out any provision to allow its sale. The Senate has passed legislation to legalize and regulate cannabis sales multiple times in the past, but the larger House, where S. 54 sits now, has failed to adopt similar proposals.
While the current bill’s path through the House remains to be seen, proponents say newly expanded Democratic and Progressive majorities in both chambers will play to their favor.
“The fact that we have separated the question of whether or not we have marijuana legal for adult consumption from the question of whether or not we have retail sales does make a difference to a lot of people,” Copeland-Hanzas said.
Dave Silberman, an attorney and pro bono drug policy reform advocate from Middlebury, said he was looking forward to hearing testimony in the House.
“My sense is the reason that tax and regulate votes have failed in the House in the past is because there have been no substantive committee hearings on tax and regulate,” he said. “In order to get big policy done, a lot of people just feel like the process is very important and folks who are sympathetic toward tax and regulate, who are supportive of tax and regulate, have held back because of that lack of process.”
“What’s different this year is that the speaker has publicly stated that we are going to get multiple committees involved with the process this year, and I think that’s a huge step this year,” he added. “It’s something I’ve been begging for for the past three years.”
Although she has committed to holding hearings on the issue, House Speaker Mitzi Johnson (D) has also said she’s unconvinced the state is ready for taxed and regulated sales.
“You know, I’m honestly really torn on it,” she told Vermont Public Radio in January.
The House’s Committee on General, Housing and Military Affairs is holding on to H. 196, a separate tax and regulate bill, authored and introduced by Young and cosponsored by more than a third of the House’s membership. In his legislation, existing dispensaries, which currently only serve patients on the state’s medical marijuana registry, could pay a $75,000 fee to start recreational sales to the public next year.
Those collected funds would be used to offset the costs of setting up the Cannabis Control Board. Senate leaders opted to not include a similar measure in their bill, saying it would create an unfair advantage for the current providers.
“I think it could be helpful in front-loading some of the revenue that we need,” Copeland-Hanzas said. “This is really all about consumer protection, and it’s hard to imagine where in a small state we’re going to find a bunch of budgetary dollars to do that.”
Other details the House will have to grapple with include the rate at which sales are taxed, funds for education and prevention efforts and the number of positions on the Cannabis Control Board— which had dropped from five to three positions in the final version of the Senate’s bill.
Gov. Phil Scott (R), who reluctantly signed legislation to legalize low-level marijuana possession and home cultivation last year, has said he would be unwilling to sign a bill to tax and regulate sales unless public safety initiatives, including roadside testing, are funded as well.
“To be very direct: There must be comprehensive and convincing plans completed in these areas before I will begin to consider the wisdom of implementing a commercial ‘tax and regulate’ system for an adult marijuana market,” he said last year prior to signing the previous bill.
Young said he’s aware of Scott’s demands.
“We need to work it out with the governor because we’re going to need a signature,” he said. “Without it, all the effort is for nothing.”
Photo courtesy of Philip Steffan.
Kentucky GOP Congressman Touts ‘High Hemp IQ’ Of His Constituents
Rep. James Comer (R-KY) says that he proved his political advisors wrong when he decided to champion hemp legalization.
When he served as Kentucky’s Agriculture Commissioner before joining Congress and first contemplated “making hemp a reality,” he was told that people would conflate the crop with marijuana and he’d face a backlash, Comer said during an interview that aired this week.
“They said the people of Kentucky will never know the difference. They’ll think you’re talking about marijuana and you’re done,” he said during the Kentucky Educational Television appearance. “You can’t be a Republican and do this.”
“But people in Kentucky are smarter than some people give us credit for, and the people in Kentucky knew the history of hemp,” he said, noting that his own grandparents cultivated the crop.
“We have a high hemp IQ in Kentucky, and people across America are now learning the difference between hemp and marijuana.”
One of the areas that Comer said he hopes to see expanded is the use of hemp fibers to create products such as furniture and car parts. He mentioned one example of a Kentucky company that’s creating hardwood flooring out of hemp, and House Agriculture Committee Chair Collin Peterson (D-MN) is going to tour that facility with him soon.
Shortly before becoming the panel’s chair, Peterson said he was considering growing hemp on his own farm.
Most of the existing hemp facilities in Kentucky are producing CBD oil, which Comer said he also takes to treat minor pain.
While hemp and its derivatives were federally legalized under the 2018 Farm Bill, businesses are still awaiting guidelines from the U.S. Department of Agriculture (USDA) and the Food and Drug Administration (FDA). And that regulatory uncertainty has led some financial institutions to deny credit lines to hemp companies.
To that end, Comer said he and Senate Majority Leader Mitch McConnell (R-KY) are working closely to resolve the problem. That includes pushing for the Secure And Fair Enforcement (SAFE) Banking Act, which would protect banks that service state-legal cannabis businesses from being penalized by federal financial regulators.
“We teamed up with the marijuana people in the states,” Comer said.
Watch Comer’s hemp comments, starting around 5:30 into the video below:
“They’ve legalized marijuana. They’re selling marijuana. They’re not allowed to deposit the cash. They’re not allowed to take credit card transactions at those marijuana stores,” he said. “We have worked with them to try to create a system where you can have financial transparency, and that bill is making its way through Congress now.”
The SAFE Banking Act was approved by the House Financial Services Committee in March. And on Tuesday, the Senate Banking Committee took advocates by surprise after it announced that it would hold a hearing on marijuana banking issues next week, with just days left before the August recess.
Separately, the Senate Agriculture Committee will meet to discuss hemp production two days later.
McConnell has been an especially vocal advocate for hemp and CBD. For example, he led the head of USDA on a tour of a Kentucky hemp facility that produces CBD oil earlier this month.
Comer also claimed in the new interview that large pharmaceutical companies feel threatened by hemp-derived CBD as more consumers gravitate toward it as a “natural supplement” that could be a substitute for prescription painkillers.
“Now what you are having up here in Washington as we speak, the big drug companies are like, ‘Wow, people are buying this CBD oil and not buying our drug,'” the congressman said. “So they’re demanding that the FDA regulate it.”
He and McConnell are working to “keep the FDA off the backs of people,” Comer said.
While former FDA Commissioner Scott Gottlieb stressed that creating a regulatory pathway that allows for the lawful marketing of CBD as a food item or dietary supplement would take years without congressional action, the agency recently said that it is speeding up the rulemaking process and will issue a progress report by early fall.
USDA similarly recognized the intense interest from lawmakers and stakeholders in developing regulations for the crop, and it plans to issue an interim final rule for the crop in August.
Photo courtesy of KET.
Psychedelics Decriminalization Moves Forward In Cities Around The U.S.
Activists in Berkeley, California and Port Townsend, Washington took steps this week to get psilocybin mushrooms and other psychedelics decriminalized, following in the footsteps of successful similar efforts in Denver and Oakland.
In Berkeley, a decriminalization resolution advanced in a City Council committee on Wednesday, and organizers in Port Townsend spoke about their proposal at a county public health board meeting on Thursday, with plans to formally present it to the City and County Council.
The Berkeley measure would prohibit city departments and law enforcement from using any funds to enforce laws against possession, propagation and consumption of psychedelics by individuals 21 or older. Members of the City Council Public Safety committee unanimously voted to send the resolution to the body’s Public Health Committee for further consideration.
If that panel approves the measure, the full Council will schedule a hearing and vote on final passage. Decriminalize Nature, the group behind this resolution as well as the successful passage of neighboring Oakland’s psychedelics decriminalization effort last month, said they hope the Council will act on the measure by early November.
Separately, activists in Port Townsend announced that they delivered a speech about their psychedelics decriminalization proposal during a meeting of the Jefferson County Board of Health.
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Today we gave our speech to the Port Townsend County Board of Public Health! We are overwhelmed by the support of our community. Our group of supporters filled up half the audience. We are currently making plans to speak with the county health officer to talk about next steps in presenting in front of city and county council. Much gratitude 🙏 free the plants 🌱✨💖 #freetheplants #plantmedicine #mushrooms #ayahuasca #peyote #heal #pnw #porttownsend #endwarondrugs
Beyond prohibiting the use of government funds to criminalize adults for using and possessing the substances, the local Washington resolution also calls on the city administrator to “instruct the City’s state and federal lobbyists to work in support of decriminalizing all Entheogenic Plants and plant-based compounds that are listed on the Federal Controlled Substances Schedule 1.”
“We are overwhelmed by the support of our community. Our group of supporters filled up half the audience,” the Port Townsend Psychedelic Society said in an Instagram post. “We are currently making plans to speak with the county health officer to talk about next steps in presenting in front of city and county council.”
Alex Williams, who is leading the decriminalization effort in Berkeley, told Marijuana Moment that Wednesday’s Council committee meeting there “went better than I had anticipated” and that he feels “there is an excellent chance of the resolution passing.”
Watch the Berkeley Public Safety Committee discuss psychedelics, starting at about 42:00:
While Williams said two members of the committee seemed to be under the impression that the resolution is singularly geared toward recreational use and meant to “capitalize on a new market,” Decriminalize Nature plans to address those misconceptions, emphasizing that the measure would not provide for commercial manufacturing or sales and that “this process is very important to allowing safe, equitable access to marginalized communities.”
“It is essential that entheogenic substances be treats as sacred spiritual practices and healers,” he added.
The resolution defines entheogenic substances as “plants and natural sources such as mushrooms, cacti, iboga containing plants and/or extracted combinations of plants similar to ayahuasca; and limited to those containing the following types of compounds: indoleamines, tryptamines, phenethylamines.”
Two Councilmembers, Rigel Robinson and Cheryl Davila, are sponsoring the measure.
“You can imagine a day where, years from now, doctors working with patients with serious depression or veterans dealing with PTSD could actually offer them a more realistic and comprehensive suite of potential treatments, which may include some of these plants as the research over the last several decades has indicated,” Robinson said at the meeting.
While Berkeley might seem like an obvious target for psychedelics reform given the city’s decades-long close association with counterculture, the movement to remove criminal penalties is gaining steam nationally. Decriminalize Nature is maintaining a map of jurisdictions throughout the country where activists have expressed interest in pursuing a similar model.
Time to update the outreach board! Close to 100 locations have reached out now, some already speaking with their City Councilmembers. Great job everyone! #DecriminalizeNature #yourcity #DNUSA pic.twitter.com/D7lbCpdi3c
— Decriminalize Nature (@DecrimNature) July 16, 2019
Also this week, a resident spoke at a Columbia, Missouri City Council meeting, asking the body to consider a resolution to decriminalize psychedelics. At least one councilmember expressed interest in following through, and he called the therapeutic potential of the natural substances “very promising.”
Individuals from nearly 100 cities have reached out to the organization for assistance advancing their own decriminalization efforts.
Voters in Denver kicked things off by approving the nation’s first-ever ballot measure to decriminalize psilocybin mushrooms in May.
Activists are currently pursuing efforts to place psilocybin-focused measures on statewide ballots in California and Oregon for next year.
Photo courtesy of Wikimedia/Mushroom Observer.
Top Democratic Party Leader Flops With Attempted Joke About Trump Smoking Hemp
The chairman of the Democratic National Committee (DNC) apparently thinks that hemp gets you high—and that getting high makes you dumb.
In an attempted dig at President Donald Trump, who said last week that farmers struggling amid a trade war were “over the hump,” DNC Chair Tom Perez said he thought the president “was smoking some hemp when he said they were over the hump.”
“If you smoke some hemp, I guess that would stimulate certain farm economies here,” he added during his remarks at a press conference in Wisconsin.
Watch Perez’s hemp comment at about 6:45 into the video below:
Because hemp contains only trace amounts of THC, the main psychoactive ingredient in marijuana, it wouldn’t get you high, as Perez implied. But legalization advocates say it’s especially problematic that a party leader is treating marijuana as a laughing matter in the first place.
“I would need to be smoking something a hell of a lot stronger than hemp to find Tom Perez’s weak attempt at a marijuana joke funny,” Erik Altieri, executive director of NORML, told Marijuana Moment.
“At a time when over 600,000 overwhelmingly black and brown Americans are still being arrested every year for simple possession, our failed and racist prohibition is no laughing matter,” he said. “While we have made great progress in winning elected officials nationwide to our cause, Perez illustrated that we have a lot of work left to do when it comes educating them about the issue and still a bit of a road to go down before we can stop dealing with dad jokes and bad weed puns.”
Don Murphy, director of federal policies for the Marijuana Policy Project, echoed that point.
“We need more leadership and action at the federal level, not more stupid jokes, puns and inaccurate comments about hemp’s ability to get you high,” he told Marijuana Moment. “Luckily that is something that many of his party’s presidential candidates understand,” he said. “Sadly, Mr. Perez does not.”
Perez’s position on cannabis policy isn’t quite clear, as he’s remained largely silent on the issue. In contrast, many 2020 Democratic presidential candidates are campaigning on broad marijuana reform proposals.
The DNC chair made his attempted hemp quip during a press availability in Milwaukee, where he is meeting donors and coordinating preparation for next year’s Democratic National Convention.
Photo courtesy of Flickr/Gage Skidmore.