Two New England states may be following the lead of Colorado and Washington in the wake of the historic success of two initiatives that legalized marijuana in the two Western states. Two legislators have introduced measures to legalize marijuana in Rhode Island and Maine. Representatives Edith Ajello of Rhode Island and Diane Russell of Maine have both proposed legislation that would tax and regulate marijuana in their states for those over the age of 21—Russell’s bill will send the issue of legalization to a 2014 voter referendum.
The proposals set a possession limit of one ounce in Rhode Island and 2.5 ounces in Maine. In addition to state and local sales tax, each proposal imposes an additional excise tax of $50 per ounce—the revenues of which, could give a much-needed boost to state coffers in a tough fiscal environment.
Russell has projected that her bill will generate about $13 million in revenue based on a 2010 study by the Cato Institute. In Rhode Island, according to 2008 SAMHSA data, the marijuana usage rate for the over 26 population is 10.33 percent, even higher than Maine’s usage rate of 6.69 percent; thus, legalization policy could generate even higher annual per capita revenues in Rhode Island.
In its investigation, the Cato institute estimated an additional $14 million in savings from reduced enforcement costs. Marijuana is already decriminalized in Maine as well as Rhode Island, where a bill decriminalizing possession of less than one ounce of marijuana passed just last year. According to the Maine Department of Public Safety, in 2011 Maine police arrested 2,663 people for marijuana possession—this accounted for 47% of all drug arrests and 5% of total arrests.
Russell spoke on her proposal at a State House press conference. "It is time we let business owners - Maine business owners - who card their consumers, to earn the profits and not let the drug dealers or the drug cartels earn those profits." Similarly, sponsor of the senate version of Ajello’s Rhode Island bill, Donna Nesselbush, said in a General Assembly press release, “Taxing and regulating the sale of marijuana will rob drug dealers of one of their reasons for being. It will likely reduce crime, weaken gangs and cartels and allow our hard-working law enforcement officials to focus on serious and/or violent crime. Taxing and regulating would also create the potential for much-needed state revenue that could be used for treatment and education about the consequences of drug use and the promise of healthful living.”
Rhode Island bill, H 5274, has four co-sponsors, including Republican House Minority Leader, Brian Newberry. Ajello herself is chair of the House Judiciary Committee, which will preside over a public hearing on the bill this Wednesday February 27th. The Maine bill has bipartisan support as well. Republican Representative, Aaron Libby, has agreed to co-sponsor Russell’s bill.
Legalization measures were introduced in both Rhode Island and Maine last session, but the Rhode Island bill died in committee. Russell’s previous bill failed 107 to 39 with 4 abstentions after receiving an unfavorable report from the House Public Safety Committee.
Rhode Island has a larger coalition in the legislature supporting legalization than Russell has in Maine. Seven of the thirty-eight Senators, over 18 percent, are previous or current sponsors of the legalization bills, and in the House, nine out of seventy-five Representatives, 12 percent, have the same record.
Whatever the history of legalization efforts in the state, the debate over legalization is likely to take on a new tone this year. Because of the landmark legalization initiatives in Colorado and Washington and the introduction of federal legislation, H.R. 499, that would decriminalize marijuana at the federal level and end marijuana prohibition, policy-makers on both sides of the aisle are more likely to consider policies to legalize and regulate marijuana given the possible fiscal and social benefits. As Representative Aaron Libby put it, "As a fiscal conservative, I see great potential for economic growth of removing the prohibition, also the huge amount of state savings that could be then accumulated."
The proposals set a possession limit of one ounce in Rhode Island and 2.5 ounces in Maine. In addition to state and local sales tax, each proposal imposes an additional excise tax of $50 per ounce—the revenues of which, could give a much-needed boost to state coffers in a tough fiscal environment.
Russell has projected that her bill will generate about $13 million in revenue based on a 2010 study by the Cato Institute. In Rhode Island, according to 2008 SAMHSA data, the marijuana usage rate for the over 26 population is 10.33 percent, even higher than Maine’s usage rate of 6.69 percent; thus, legalization policy could generate even higher annual per capita revenues in Rhode Island.
In its investigation, the Cato institute estimated an additional $14 million in savings from reduced enforcement costs. Marijuana is already decriminalized in Maine as well as Rhode Island, where a bill decriminalizing possession of less than one ounce of marijuana passed just last year. According to the Maine Department of Public Safety, in 2011 Maine police arrested 2,663 people for marijuana possession—this accounted for 47% of all drug arrests and 5% of total arrests.
Russell spoke on her proposal at a State House press conference. "It is time we let business owners - Maine business owners - who card their consumers, to earn the profits and not let the drug dealers or the drug cartels earn those profits." Similarly, sponsor of the senate version of Ajello’s Rhode Island bill, Donna Nesselbush, said in a General Assembly press release, “Taxing and regulating the sale of marijuana will rob drug dealers of one of their reasons for being. It will likely reduce crime, weaken gangs and cartels and allow our hard-working law enforcement officials to focus on serious and/or violent crime. Taxing and regulating would also create the potential for much-needed state revenue that could be used for treatment and education about the consequences of drug use and the promise of healthful living.”
Rhode Island bill, H 5274, has four co-sponsors, including Republican House Minority Leader, Brian Newberry. Ajello herself is chair of the House Judiciary Committee, which will preside over a public hearing on the bill this Wednesday February 27th. The Maine bill has bipartisan support as well. Republican Representative, Aaron Libby, has agreed to co-sponsor Russell’s bill.
Legalization measures were introduced in both Rhode Island and Maine last session, but the Rhode Island bill died in committee. Russell’s previous bill failed 107 to 39 with 4 abstentions after receiving an unfavorable report from the House Public Safety Committee.
Rhode Island has a larger coalition in the legislature supporting legalization than Russell has in Maine. Seven of the thirty-eight Senators, over 18 percent, are previous or current sponsors of the legalization bills, and in the House, nine out of seventy-five Representatives, 12 percent, have the same record.
Whatever the history of legalization efforts in the state, the debate over legalization is likely to take on a new tone this year. Because of the landmark legalization initiatives in Colorado and Washington and the introduction of federal legislation, H.R. 499, that would decriminalize marijuana at the federal level and end marijuana prohibition, policy-makers on both sides of the aisle are more likely to consider policies to legalize and regulate marijuana given the possible fiscal and social benefits. As Representative Aaron Libby put it, "As a fiscal conservative, I see great potential for economic growth of removing the prohibition, also the huge amount of state savings that could be then accumulated."