New York took the first step Tuesday toward creating the nation’s second-largest market for legal marijuana when the state Senate passed legislation that would impose special pot taxes and allow the licensing of dispensaries.
The measure (S.854A /A.1248A) would allow cannabis storefronts to open as soon as next year, and would let home growers start cultivating their own pot. It would limit the number of licenses for large corporations, and impose sales and excise taxes that are estimated to eventually bring in about US$350 million a year.
The legislation would set in motion automatic expungement of records for people with previous convictions for activities that would no longer be criminalized when marijuana is legalized for use by adults 21 and older.
The Senate voted for the measure 40-23. The Assembly is to vote later in the day.
“There were many important aspects of this legislation that needed to be addressed correctly — especially the racial disparities that have plagued our state’s response to marijuana use and distribution as well as ensuring public safety — and I am proud that through strong collaboration, we have reached the finish line,” state Senate Majority Leader Andrea Stewart-Cousins (D) said in a news release.
Governor Andrew Cuomo (D) has said he will sign the bill, which he negotiated with lawmakers in a handshake deal last week.
Once New York’s program is fully rolled out, it’s anticipated to generate tens of thousands of jobs and about US$4.2 billion in sales, surpassing Washington state and trailing only California, which had about US$4.4 billion in sales last year.
‘A Liability’
Several lawmakers in both houses, mainly Republicans, brought up concerns with people under the influence of marijuana driving or going to work and using heavy machinery.
“This legislation will be a liability,” said state Sen. Mario R. Mattera (R). “Our contractors are against this, the building trades are against this.”
Mattera, who voted “no” on the bill, also expressed concern over the dangers of drug use, particularly for youth. He described experiencing this problem in his own family, and called marijuana a “gateway” drug.
“This is a disaster waiting to happen,” he said.
Taxes, Revenue
The legislation includes two kinds of new taxes: a 13 per cent sales tax, with the money raised divided between the state (9 per cent) and localities (4 per cent), plus a distributor excise tax of as much as 3 cents per milligram of THC, the active ingredient in cannabis, using a sliding scale based on the type of product and its potency.
Tax revenue would be used to run and oversee the state cannabis program, with the remaining money divided between programs that try to help people rebuild their lives after marijuana possession arrests, as well as their communities. The revenue would also go to education and drug treatment in the state.
Cities, towns, and villages would have until the end of this year to opt out from having dispensaries and pot cafes in their communities.
Delivery, Pot Cafes
Up to 3 ounces of cannabis and 24 grams of cannabis concentrate would be legally permitted for personal possession outside of the home. Up to 5 pounds of cannabis will be allowed in a private residence, as long as it’s in a secure location out of the reach of those under age 21, according to the…
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