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Virginia Cannabis Legalization Will Now Take Effect July 1, 2021

Virginia Cannabis Legalization Will Now Take Effect July 1, 2021

by | Apr 9, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Legalization, Politics

Virginia cannabis legalization has been moved forward by a new provision

Following today’s legislative approval of Democratic Governor Ralph Northam’s amendments to Senate Bill 1406 and House Bill 2312, Virginia becomes the first southern state to legalize the possession and use of marijuana by adults. 

Senate Bill 1406, introduced by Senator Adam Ebbin (D-30) and Senate President Pro Tempore Senator Louise Lucas (D-18), and House Bill 2312, patroned by House Majority Leader Delegate Charniele Herring (D-46), establish a statutory timeline for the legalization of the commercial marijuana market in Virginia. The measure also permits for the personal possession and cultivation of cannabis by those ages 21 or older.

Last week, Gov. Northam recommended changes to the legislation to permit the personal use provisions of the law to take effect on July 1, 2021 rather than on January 1, 2024 — the enactment date initially approved by lawmakers. Today, a majority of the legislature concurred with that change.

Therefore, beginning July 1, 2021, adults will be permitted to possess up to one ounce of marijuana and to cultivate up to four cannabis plants per household without penalty.

The timeline by which state regulators have to enact provisions licensing commercial cannabis production and sales remains July 1, 2024.

Commenting on the final passage, NORML Development Director Jenn Michelle Pedini, who also serves as the Executive Director of Virginia NORML, said: “This is an incredible victory for Virginia. Legalization will bring an end to the thousands of low-level marijuana infractions occurring annually in the Commonwealth — ending a discriminatory practice that far too often targets Virginians who are young, poor, and people of color.” 

Majority Leader Charniele Herring added: “It is a huge day for equity in the Commonwealth. Virginia is now the first state in the South to legalize recreational marijuana use, and I am so proud to have been able to carry this monumental legislation. I am ever grateful for the commitment and advocacy from NORML on this topic. Getting Virginia to this day would not have been possible without their hard work and dedication to the cause.”

Senator Adam Ebbin said: “The passage of SB1406 caps off years of struggle to reform our broken and outdated marijuana laws and begins the deliberate steps to repeal the harms of the failed prohibition. I am thankful to NORML, the Governor, and my colleagues for moving this 283 bill from inception to passage over the last four months, and look forward to continuing to partner with them to establish a regulated, equity focused, adult-use marketplace in the coming years.”

Newly released statewide polling data finds that 68 percent of registered voters in Virginia, including majorities of Democrats and Republicans, support legalizing marijuana for adults.

“Virginians were very clear that they are ready for legalization this year, sending over 8,800 emails in support of these measures,” Pedini added.

Full Story From NORML

What Would New York Cannabis Legalization Look Like?

What Would New York Cannabis Legalization Look Like?

by | Mar 30, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Legalization, Politics

New York cannabis legalization is being voted on today

The vote on New York cannabis legalization could happen today. What does that mean for the industry, and the country?

After reaching a landmark deal that aims to integrate a recreational cannabis industry into New York’s current medical cannabis program, the state legislature could be voting as soon as today on whether or not New York cannabis legalization will pass. The bill’s passing would be a massive decision with even bigger ramifications for the legal cannabis industry at large.

But how would a cannabis industry in New York theoretically look? One thing is for sure; the industry would be huge.

What’s in the bill

The bill potentially on its way to Governor Andrew Cuomo’s desk would allow adults in the state to buy cannabis in retail stores, and also sample it in tasting rooms similar to wine tasting venues. They would also be able to grow a limited number of marijuana plants at home – six per person and up to 12 per household.

If passed, the New York cannabis legalization law would not go into effect until late 2022, which means businesses like dispensaries may not open until after that period.

Fifty percent of the licenses to grow and sell marijuana would be set aside for what’s known as equity businesses, which includes people from disproportionately impacted communities and small farmers. They would have access to loans, grants, and incubator programs.

The funds for this program will come from a 13 percent sales tax to be charged on the sale of marijuana. State revenues could reach $350 million dollars a year and the money would be split between the community reinvestment fund, public education, and efforts to combat drug addiction.

The legislation further decriminalizes possession of marijuana, eliminating penalties for having 3 ounces or less of cannabis, or storing up to 5 pounds at home. It also would expunge the records for people with previous convictions for amounts that are no longer criminalized.

How it could impact the industry

If New York cannabis legalization passes, the state would become the 15th state to legalize cannabis, and the second largest to legalize behind California. Ranking barely third behind Texas in state GDP, the economy of New York is already massive, which would all but guarantee an equally massive legal cannabis industry.

Similar to California, New York also has a thriving illicit market already in operation in the state. Cannabis delivery services are very popular in New York City where anyone can ride their bike across the city to deliver cannabis products. While few other states allow cannabis delivery in their recreational cannabis programs, New York cannabis legalization would likely allow for delivery services to continue, if not thrive under new legal regulation.

California sold the most cannabis in 2020 at $4.4 Billion worth. However in combination with its relatively small medical cannabis industry which generated around $50 million in 2020, a New York legal cannabis industry would generate over $1 Billion by 2024. That would put New York in the top five cannabis markets in just two years of operation.

To say that New York cannabis legalization would make the state a major player with influence on the direction of the industry would be an understatement.

How it could impact the country

California alone generated over twice as much sales revenue in 2020 than all of Canada where cannabis is federally legal. With the addition of a massive industry after New York cannabis legalization, that number could easily double again, making the United States a legal cannabis behemoth despite federal law.

The massive profits will likely draw the attention of more politicians who will see the potential benefits of legalizing in their own states, or even federally. In states where cannabis is legal, opinions on legalization generally improve over time after those against it see the benefits it brings. In a massive state like New York, a sway in public opinion on legalization could create waves that reach across the east coast and even the country.

Nearly 70% of Americans already support federal cannabis legalization, with 90% supporting federally legal medical cannabis. With New York’s population the number will rise making it nearly impossible for legislators on the federal level to keep ignoring. Of course when it comes to politics, nothing is a guarantee.

A whole new world awaits

The reality is that if New York cannabis legalization passes, the entire industry is likely to change. Entrepreneurs and corporate cannabis entities will flock to New York to capitalize on the new, fresh industry. And with such a massive economy, there will be no shortage of opportunity.

A legal cannabis industry in New York is likely to jump start movement across the east coast, with Pennsylvania and Maryland likely to follow should the industry show promise. Florida has already surpassed $1 Billion in sales with medical marijuana alone, and a full recreational industry would likely explode there as well.

The dominoes of cannabis legalization have been slowly falling state after state, and New York is one BIG domino that could change everything. But just like California, New York could also fall short.

Despite its massive revenue generation and thriving cannabis industry, California has suffered immensely due to its changing regulations with lack of communication or leniency, exorbitant licensing and square footage fees that punish small farmers, and a thriving illicit market that the state can’t quash.

New York must tread lightly or risk facing a similar fate to their west coast cousin, which could have an inverse effect on the future of cannabis legalization across the country. Only the future will tell.

NY Legislators Reach Deal to Fast Track Legalization

NY Legislators Reach Deal to Fast Track Legalization

by | Mar 25, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Legalization, Politics

New York cannabis legalization is on the fast track to being signed into law

New York is ready to legalize recreational marijuana.

The state would impose special pot taxes and prepare to license dispensaries under an agreement reached by Gov. Andrew Cuomo and legislative leaders.

“It is my understanding that the three-way agreement has been reached and that bill drafting is in the process of finishing a bill that we all have said we support,” state Senate Finance Committee Chair Liz Krueger told Bloomberg Government on Wednesday.

 
 

The deal that legislative leaders brokered with Cuomo (D) would legalize cannabis use for adults 21 years old and up, and includes a 13% sales tax, 9% of which would go to the state and 4% to the localities, Krueger said. Distributors additionally would collect an excise tax of as much as 3 cents per milligram of THC, the active ingredient in cannabis, with a sliding scale based on the type of product and its potency.

No changes would be made to the taxes already imposed on marijuana sold for medical purposes, Krueger said.

The governor’s office estimates that a legal cannabis program could pull in about $350 million a year once fully implemented.

Sales could begin as soon as one year after enactment, said Krueger, who sponsored legislation (A.1248/S.854) with Assembly Majority Leader Crystal Peoples-Stokes (D) that was a starting point for the negotiations.

With New Jersey legalizing marijuana earlier this year, “we are literally surrounded geographically by other states that are doing it. We just need to stay ahead of the times,” Peoples-Stokes said in an interview. “Because we’re New Yorkers, we can walk and chew gum at the same time. We can speed this up.”

Cuomo earlier Wednesday said an agreement was close, and that it’s one of his budget priorities. Krueger said she expects lawmakers to vote on stand-alone legislation as soon as next week.

Legislative leaders want to separate the marijuana and budget debates, a strategy that gives them the upper hand on determining pot policy.

Neighborhood Programs

The proposed recreational marijuana tax structure is similar to the one levied on alcohol, Krueger said.

Tax revenue would first go to covering cannabis-related expenses at state agencies overseeing the regulation of cannabis, with the rest divided among programs to help people rebuild their lives after marijuana possession arrests; to help neighborhoods; education; and drug treatment.

“We understand the ramifications of decades of incarceration of a people that actually ends up costing us, as a government, money,” Peoples-Stokes said. “This community reinvestment could reverse that whole dynamic. We could reinvest in people’s lives.”

Putting those programs into the legalization law will mean that Cuomo wouldn’t be able to count on that burst of new revenue to close a $2.5 billion budget hole anticipated in the next fiscal year.

Read the Full Story from Bloomberg

New Mexico legalization bill moves into the Senate

New Mexico legalization bill moves into the Senate

by | Mar 3, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Legalization, Politics

Will New Mexico legalization happen in 2021?

“It being exactly 4:20 (p.m.), we go to House Bill 12,” Rep. Daymon Ely, D-Corrales, quipped Friday, Feb. 26, to begin the debate over legalization of marijuana.

Hours later, the New Mexico House of Representatives passed marijuana legalization for the second consecutive time in a 60-day session. HB 12 passed on a 39-31 vote Friday, a wider margin than the two-vote victory in 2019.

It now moves to the Senate, which will have more than three weeks left in the session to consider the bill. The 2019 bill reached the Senate Finance Committee with two days left in the session, but never made it to a vote of the full Senate.

New Mexico legalization bill

HB 12 would legalize the sale and possession of marijuana to those age 21 and older. It is estimated that by the third year, sales would produce more than $44 million in state revenue and nearly $24 million in local revenue.

A new state agency called the Cannabis Control Division would be created to regulate the new industry. It would also take over management of the existing medical marijuana program and establish cannabis education and training programs that are required under the bill.

The law would allow consumers to purchase up to two ounces of cannabis plant and up to 16 grams of extract each day. They would also be allowed to grow their own plants. There would be a limit on how many mature plants a private person could have, but no limit on commercial growers.

Local governments would be able to regulate conditions, such as hours of operation or store location, but would not be allowed to pass a local ban. There would be an 8 percent excise tax that would go to the state, and local governments would have the option of an additional tax up to 4 percent.

There is also a provision in the bill for expungement of past criminal convictions for offenses that would be legal under the new law. But there would be new penalties for those selling to or employing anybody under the age of 21.

Revitalizing local economies

In the fiscal impact report on the bill, the state Economic Development Department estimates that nearly 1,600 new jobs would be created if the bill becomes law. But it also notes that many of the provisions of the bill are in direct violation of existing federal law.

“We are embarking on the creation of a brand new multi-million-dollar industry,” sponsor Rep. Javier Martinez, D-Albuquerque, said. He described marijuana legalization as a snowball rolling downhill, with 14 states now included and more joining every year.

But Martinez said his motivation was not the money that could potentially be made in both tax revenue and tourism, but rather stopping the harm that has been done to minority communities by the enforcement of marijuana laws, both in the Albuquerque neighborhood where he grew up and along the southern border.

“When you get to the core of why I’m doing this, it’s because I have seen the faces of the people who have most been impacted by this fake and terrible and un-winnable war on drugs,” he said.

Martinez said HB 12 would protect the existing medical marijuana program, ensure equity and diversity in the new industry and set tax and licensing rates that would generate new revenue but still allow local entrepreneurs to participate.

Read Full Story from Las Cruces Bulletin

Virginia Becomes 16th State to Legalize Cannabis

Virginia Becomes 16th State to Legalize Cannabis

by | Mar 1, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Legalization, Politics

Virginia legalized cannabis marijuana joining 15 other states in the United States

The Virginia Legislature approved adult-use marijuana legalization Saturday in a historic vote marking the first state in the Old South to embrace full legalization.

The House passed the measure in a 48-43 vote, and the Senate approved it in a 20-19 vote. Not a single Republican voted for the bill in either chamber.

 

“This, to me, is a justice bill,” Del. Charniele Herring, a sponsor of the legalization bill and the Democratic majority leader said on the floor. “While it has its flaws and it’s not the perfect bill…I think this moves us a step in the right direction.

The vote came after a conference committee struck a deal on Saturday to reconcile different versions of the bill that passed in both chambers earlier this month.

The impact: Virginia is the 16th U.S. state to pass an adult-use marijuana legalization law, though sales would not start until 2024. Only two other states — Illinois and Vermont — have passed legislation to legalize, tax and regulate recreational marijuana through the legislature.

The move puts pressure on neighboring states such as Maryland, where an adult-use legalization bill got its first hearing this month. New Jersey also recently enacted legalization, after voters overwhelmingly backed a referendum in November.

What’s next: Democratic Gov. Ralph Northam has championed legalization as a racial justice issue.

Under the compromise legislation, marijuana possession would not become legal until January 2024, when regulated sales are scheduled to start. The state would start setting up a marijuana regulatory agency this July.

The

Read the Full Story from Politico