Vermont’s governor is apparently open to legalizing, taxing and regulating marijuana sales in the state—a significant shift from his earlier position.
While the legislature legalized low-level possession and home cultivation in 2018, the current law doesn’t allow for sales, and Gov. Phil Scott (R) has said in the past that he’s wary about allowing such commercial cannabis activity, citing concerns about impaired driving.
But the 2020 session could be different, as Scott is reportedly eyeing tax-and-regulate legislation and considers it a potential source of revenue to support an after-school program he’s pushing. The governor still wants to ensure any reform legislation includes provisions to prevent driving under the influence.
“If we do end up there, this might be a good use of any revenues from there,” Administration Secretary Susan Young told Vermont Public Radio in an interview released on Wednesday. “That’s not exclusively how we plan to fund it, but we’re going to have to be creative and looking like we did with clean water to find a source.”
Listen to Young’s comments in the audio clip below:
Another state official, Cynthia Seivwright, director of the state Department of Health’s Alcohol and Drug Abuse Programs, said in a radio interview last month that legalizing marijuana sales would better protect public health than current policy does.
“Without the regulation, we don’t know what’s in it,” she said. “We can’t control the potency of it. We can’t control the access, and we definitely don’t want children and adolescents to have access to it.”
According to top lawmakers in the state, the legislature is positioned to advance a cannabis commerce bill, with most members in favor of the reform move.
House Speaker Mitzi Johnson (D) said last month that she believes “there is a solid tri-partisan majority in the House that would like to see tax and regulate pass this year.” While she has expressed reluctance about the legislation in the past, the speaker now says she won’t block her chamber from passing it.
Last week, Senate Judiciary Committee Chairman Richard Sears (D) and House Government Operations Committee Chairwoman Sarah Copeland-Hanzas (D) said in a press conference that the time is right to act on marijuana legalization.
“We are shipping tax dollars out of state and fueling the economy in those states in this industry in another state,” Sears said. “It makes no sense whatsoever.”
“We look forward to working with our House counterparts in a conference committee to arrive at a bill that is supported by most members of the legislature, the governor and the general public,” he added.
Copeland-Hanzas said adults in Vermont “need to have safe and legal access to cannabis.”
“This is an opportunity—and a very unique opportunity—to stand up a new industry and to create jobs and to fill some of our vacant manufacturing and warehouse facilities in Vermont,” she said.
Matt Simon, New England political director of the Marijuana Policy Project, agreed.
“It seems clear to me in the year 2020 there is no state in the U.S. that is more ready to regulate cannabis sales than Vermont,” he said.
Other political observers in the state seem to think that Scott is coming around to legalizing sales despite his earlier reluctance.
“The governor already seems to be counting those chickens that are going to be hatched from whatever tax-and-regulate system we have as it relates to revenue that’s going to be generated by a retail marijuana market,” Pete Hirschfeld of Vermont Public Radio said in a recent TV appearance. “If we read the tea leaves we can see that Governor Phil Scott has essentially resigned himself that this is an eventuality and is counting on using legal marijuana tax dollars to fund his priorities.”
Watch Hirschfeld’s comments, about 17:10 into the video below:
While it remains to be seen whether the governor will ultimately back a tax-and-regulate bill, such as legislation that was approved by the Senate last year—a proposal discussed again by the body’s Judiciary Committee on Wednesday—advocates are optimistic this legislative session will be a success.
The Senate-passed bill, which is still alive for 2020, has already been approved by one House committee. At the press conference last week, Sears expressed some frustration about how long it is taking for House committees and leadership to deal with legislation, saying he wants to get finalized legislation through a bicameral conference committee and to the governor’s desk by early March.
Scott could feel additional pressure to support a commercial marijuana model given that he’s facing a reelection challenge this year from Lt. Gov. David Zuckerman (Vermont Progressive Party), who is strongly in favor of taxing and regulating the state’s cannabis market.
It’s official: I’m running for Governor. For the past 25 years, I've worked with you to make our state better. Now, I'm asking for your support. Let's go.#vtpoli #vt #ZuckermanforVT pic.twitter.com/l6VfUJZGiG
— David Zuckerman (@zuckermanforvt) January 13, 2020
“I think every year we go by not doing it, we are perpetuating the underground, unregulated, unjust system that we have today while other states are moving forward,” Zuckerman said in 2018.
Over in neighboring New Hampshire, lawmakers have decided to take a lesson from Vermont and pursue non-commercial cannabis legalization this session—a move that was described to Marijuana Moment as an incremental, albeit important, step toward eventual commercialization.
Photo courtesy of WeedPornDaily.
Lindsey Graham Challenger Jaime Harrison Backs Legalizing Marijuana
The Democrat mounting a well-funded bid to oust Senate Judiciary Committee Chairman Lindsey Graham (R-SC) says he supports legalizing marijuana.
“I think we should legalize, regulate and tax marijuana like we do alcohol and tobacco,” Jaime Harrison argued this week. “There is simply no medical reason to lock people up over this issue. In essence, this is about common sense.”
The former South Carolina Democratic Party chairman said that the issue is also a matter of criminal justice reform.
“We know that marijuana arrests, including those for simple possession, account for a large number of drug arrests. The racial disparities in marijuana enforcement—black men and white men smoke marijuana the same rates, but black men are much more likely to be arrested for marijuana possession—is just unacceptable,” he said in an interview with CNBC. “Across the country, we are finding that states are legalizing marijuana and medical marijuana, and it’s just time for South Carolina to lead on this issue.”
Federal campaign finance disclosures filed on Wednesday show that Harrison, who also served as an aide to Rep. Jim Clyburn (D-SC) and a lobbyist with the Podesta Group, outraised Graham for the second quarter in a row.
The state Democratic party, on Harrison’s last day in office as chair in 2017, approved a resolution endorsing a pending medical cannabis bill in the South Carolina legislature.
“Caregivers and patients are searching for treatment options for unmet medical needs, particularly for epilepsy, Alzheimer’s disease, cancers, and the effects of chemotherapy,” the measure said. “The cannabis plant in various forms including oils, creams, drops and liquids has shown some promise in treating these medical conditions.”
A South Carolina Senate committee advanced a medical marijuana bill last year but it never ended up advancing to a floor vote.
In 2018, the state’s Democratic primary voters approved an advisory medical cannabis ballot question by an 82 percent to 18 percent margin.
Graham, for his part, opposes marijuana legalization and hasn’t brought any pending cannabis legislation up for hearings or votes in his panel, which handles criminal justice issues.
That said, he has cosponsored a handful of reform bills in past years. For example, in 2016 he signed onto legislation to protect medical marijuana states from federal interference and reschedule cannabis, and in 2017 he cosponsored a bill to remove CBD from the list of federally banned substances.
He has a mixed record when it comes to votes on cannabis amendments.
In 2015, Graham voted against an Appropriations Committee amendment that would have allowed the U.S. Department of Veterans Affairs to recommend medical cannabis to patients; but the next year he reversed himself and supported a similar measure. Also in 2016, he backed an amendment to prevent the Department of Justice from spending money to interfere with state medical cannabis laws.
Shortly after it was announced he would be taking over the Judiciary panel’s gavel, Sen. Cory Booker (D-NJ) joked that he would be sending marijuana-infused brownies to congratulate Graham, a quip that the incoming chairman seemed to appreciate.
While South Carolina typically isn’t seen as a state where Democrats are likely to pick up a U.S. Senate seat, this year’s contest between Harrison and Graham is attracting attention from national political observers due to the outsized funding haul the challenger has been able to bring in so far.
Photo courtesy of Max Pixel.
GOP Congressman Withdraws Amendment To Block D.C. Psychedelics Decriminalization
A GOP congressman filed an amendment to a spending bill on Wednesday, seeking to undermine a local Washington, D.C. ballot initiative to deprioritize enforcement of laws against a broad class of psychedelics.
But while Rep. Andy Harris (R-MD) made the case that his proposed measure represented a reasonable compromise—making it so only psilocybin mushrooms would be low police priorities and only if a doctor recommended them for medical reasons—he ultimately withdrew the amendment rather than force a vote.
“This amendment deals with Initiative 81…which would make the use of hallucinogenic drugs a low priority for enforcement in the District of Columbia,” Harris said in his opening remarks before the House Appropriations Committee.
The congressman added that he’s particularly concerned about the scope of the ballot measure, acknowledging that “there is limited data that psilocybin may be useful in some circumstances” but asserting that the same can’t be said of the other entheogenic substances such as mescaline that would be covered under the activist-driven initiative.
Watch the debate over Harris’s D.C. psychedelics amendment below:
It should be noted that while activists behind the initiative submitted their signatures last week and believe they have more than enough to qualify for the November ballot in the nation’s capital, the Board of Elections has yet to certify them. Harris acknowledged that but said “I suspect it might be [qualified for the ballot] by the time” the spending bill goes to a bicameral House and Senate conference committee that will finalize the Fiscal Year 2021 Financial Services and General Government bill for delivery to the president’s desk later this year.
It’s not clear if he was signaling that he planned to reintroduce his amendment, which also stipulates that driving under the influence of psychedelics would be prosecutable, on the House floor or if he plans to work to get a senator to tack it onto that chamber’s version of the legislation, which deals with funding for D.C.
“I think the District of Columbia is different from other cities because we have people coming in from all over the country—and we certainly, I would hope, don’t want to be known as the drug capital of the world,” he said.
There was some debate on the measure by the panel. House Appropriations Financial Services and General Government Subcommittee Chairman Mike Quigley (D-IL) and Rep. Betty McCollum (D-MN) voiced opposition while the subcommittee ranking member, Rep. Tom Graves (R-GA), and Rep. Robert Aderholt (R-AL) spoke in favor of the proposal.
“If the district residents want to make mushrooms a lower priority and focus limited law enforcement resources on other issues, that is their prerogative,” Quigley said. “Congress has allowed jurisdictions in California and Colorado to exercise their sovereign right to set policy on mushrooms, the District of Columbia too should be allowed to use their local funds to support their local needs and their priorities.”
Graves argued that “we all can agree that policies that increase the availability of psychedelic drugs in our nation’s capital, that’s dangerous.”
“As the nation’s capital, the District of Columbia, it should be a place where Americans come to see their government at work, for history, maybe go to a Braves-Nats game—it shouldn’t be a destination for illegal drugs,” he said.
McCollum said the amendment serves as another example of Congress attempting to impose excess regulations on D.C. and argued in favor of statehood for the district.
“Now we’re not even allowing the District of Columbia to move forward and decide whether or not this is a good idea,” she said. “I oppose the amendment.”
Rep. Eleanor Holmes Norton (D-DC) celebrated the amendment’s withdrawal with a taunt on Twitter, saying, “Regular #homerule offender @RepAndyHarrisMD tried to bar DC from using its own funds to enact a proposed ballot initiative on entheogenic plants + fungi or any similar law, but then withdrew it before the committee could defeat it.”
That prompted Harris to reply that the “process of educating Congress about how dangerous this initiative is has begun. DC has enough of a drug abuse problem without becoming the drug capital of the country.”
The process of educating Congress about how dangerous this initiative is has begun. DC has enough of a drug abuse problem without becoming the drug capital of the country. "Warrioronthehill" should be fighting AGAINST drug use, not FOR it.
— Rep. Andy Harris, MD (@RepAndyHarrisMD) July 15, 2020
Harris’s office didn’t respond to Marijuana Moment’s request for comment about whether he withdrew the amendment because he sensed he didn’t have the votes to pass it in committee.
In his closing remarks at the markup, the congressman said that his measure “is more than just mushrooms. That’s my whole point.”
“Mushrooms is psilocybin—that has a medical use. This includes mescaline, peyote, three other substances [that] have no medical use at all,” he said.
Melissa Lavasani, who proposed the D.C. ballot measure and is part of the Decriminalize Nature D.C. group working to pass it, said in a press release that “our campaign is about helping D.C. residents by enacting common sense reforms to police priorities that ensure that those using healing plant and fungi medicines are not law enforcement targets.”
This isn’t Harris’s first go at pushing for legislation that leverages Congress’s control over the D.C. budget to interfere in local drug policy issues.
Harris has been a consistent opponent of cannabis reform, repeatedly backing a long-standing congressional rider that bars D.C. from using its tax dollars to implement a legal marijuana marketplace. Last year, however, it was not included in the annual spending bill as introduced by House Democratic leaders and the congressmen didn’t attempt to introduce an amendment to reinsert it. It was included in the Senate version and was included in the final enacted bill following conference committee negotiations, however.
The Drug Policy Alliance sent a letter to committee leadership in advance of Wednesday’s hearing, urging them to oppose any attempts to interfere in D.C.’s ability to vote on the psychedelics reform initiative.
Photo courtesy of Wikimedia/Mushroom Observer.
Colorado Marijuana Regulators Propose ‘Franchise’ Business Model For Equity Applicants
Colorado marijuana regulators are looking for feedback on a proposal to create a franchise cannabis business model to promote equitable participation in the industry by people from communities harmed by the war on drugs.
When legislators initially approved a bill to create an accelerator program for marijuana businesses, it was only designed to give eligible entrepreneurs an opportunity to share a cannabis facility with an existing company. But following stakeholder meetings, regulators laid out a proposal to let those entrepreneurs functionally serve as franchises of current larger marijuana businesses, operating out of separate facilities but sharing branding, advertising and intellectual property under certain conditions.
“The Division contemplates certain components of this alternative ‘separate premises’ model will be similar to a franchisor-franchisee business relationship,” the state’s Marijuana Enforcement Division said in a notice last month.
In order to participate under the new model, the division said it would require a series of disclosures, including initial investments from both parties, terms of any financial arrangements and obligations for the licensee such as non-compete requirements.
Additional requirements could still be developed. For example, the department is considering whether franchisees should be offered reduced or waived rent to use facilities owned by existing businesses that agree to be “endorsement holders.” Regulators are also contemplating limitations for the amount of money a franchise can charge an accelerator licensee as a fee for use of their facilities, as well as liability rules.
“Available incentives for accelerator-endorsed licensees to support the ‘separate premises’ model may also include fee reductions resulting from increased financial assistance and no-cost rent arrangements, and reduced accelerator-endorsed licensee liability,” the division said.
Beyond potentially collecting fees from licensees, the benefit of becoming an endorsement holder under this separate premises model seems to be that they get to indirectly expand their business and exposure while supporting entrepreneurs who might not have the immediate resources to break into the industry.
That said, some advocates are weary of the proposed based on past experience.
“While accelerator programs sound good on paper, they so often create terrible long term power dynamics for smaller businesses that we can not endorse this approach,” Jason Ortiz, president of the Minority Cannabis Business Association, told Marijuana Moment.
“Any relationship that puts a small business owner at the whim of a larger conglomerate makes us concerned that the power dynamic there does not favor the smaller business, who will now have their operation tied to the success of the larger entity,” he said. “We instead encourage any business to invest in grant based programs that allow for smaller businesses to operate on their own premises and to run their business how they see fit.”
At the same time, Morgan Fox, media relations director for the National Cannabis Industry Association, told Marijuana Moment that the proposal “looks like it could create a lot of opportunities for people to get into the industry without having large amounts of capital and could generally lower the barriers of entry significantly.”
“Judging from the comments in the feedback solicitation, it appears that the possibility of predatory or unfair franchise relationships is at the front of the Marijuana Enforcement Division’s priorities and it intends to make it very difficult for endorsement licensees to exploit accelerator licensees,” he said. “However, we’ve learned from the shortcomings and abuses in other equity programs around the country that it is important to continually monitor and assess these programs to ensure their effectiveness.”
Stakeholders can fill out an online form to submit input on the proposal. A hearing to finalize the rulemaking is tentatively set for July 30.
At the same time, the division is also working on the implementation of a bill that defines who qualifies as a social equity cannabis business applicant for the accelerator program. Gov. Jared Polis (D) signed that legislation, which also gives him authority to streamline pardons for prior marijuana convictions, last month.
The division is scheduled to hold a separate hearing on implementing the new bill on July 28.
Photo courtesy of Kimberly Lawson.