The governor of Rhode Island has again included a proposal to legalize marijuana as part of his annual budget plan—and this time he also added new language to provide for automatic cannabis expungements in the state.
Gov. Dan McKee (D) released his request for the 2023 fiscal year on Thursday, calling for adult-use legalization as lawmakers say they’re separately nearing a deal on enacting the reform. It appears that an outstanding disagreement between the governor and legislators concerning what body should regulate the program remains unresolved based on the new budget proposal, however.
In general, McKee’s plan would allow adults 21 and older to purchase and possess up to one ounce of cannabis, though it would not provide a home grow option. Adults could also store up to five ounces of marijuana in secured storage in their primary residence.
“The governor recommends creating a strictly regulated legal market for adult-use cannabis in the state,” an executive summary states. “This proposal would create a weight-based excise tax on marijuana cultivation, an additional retail excise tax of 10 percent, and also apply sales tax to cannabis transactions.”
Legislators have been in talks for months to reconcile competing legalization proposals that have been brought forward by the House, Senate and governor’s office previously. Now McKee is giving fresh details about what he hopes to see out of a potential policy change.
Under his plan, 25 percent of marijuana tax revenue and licensing fees would go to the “regulatory, public health, and public safety costs associated with adult-use cannabis.” Fifteen percent would go to local governments and 60 percent would go to the state general fund.
The executive summary says that the state’s sales tax revenue would be “boosted by the proposed introduction of adult-use cannabis tax revenue in FY 2023.” The state is estimating that it will collect $1.2 million in general revenue for the 2023 fiscal year and $16.9 “with a full year of sales in FY 2024.”
The revenue projections and provisions largely reflect what the governor proposed in his last budget request, with the exception of the new expungements language. Funding a process for expedited expungements is expected to cost the state about $400,000 for fiscal year 2023, the summary says.
“Prohibiting the possession, cultivation, and sale of cannabis to adults has proven to be an ineffective policy for the State of Rhode Island,” the findings section of the legislation itself says. “In the absence of a legal, tightly regulated market, an illicit cannabis industry has thrived, undermining the public health, safety and welfare of Rhode Islanders.”
“Regional and national shifts in cannabis policy have increased access to legal cannabis and marijuana products for Rhode Islanders in other states, the sale of which benefits the residents of the providing state while providing no funds to the State of Rhode Island to address…