McKee taking ‘wait and see’ approach on cannabis legislation

GOV. DANIEL J. MCKEE said at his press conference on Tuesday that he is adopting a wait and see approach regarding legislation for legalizing recreational marijuana. / PBN FILE PHOTO/MICHAEL SALERNO

PROVIDENCE – Gov. Daniel J. McKee said he is adopting a “wait and see” approach regarding recreational marijuana legislation that is sitting at a logjam in the R.I. General Assembly during his biweekly press conference at the Statehouse on Tuesday. McKee proposed his own legislation in his fiscal year 2022 budget.

The clock is ticking on lawmakers in crafting a unified piece of legislation to garner passage before the June 30 deadline, when the budget session ends.

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When asked about the legislation’s status, McKee was noncommittal, saying he was “very comfortable” with the legislation he proposed in his budget that calls for legalizing cannabis as a source of revenue for the state.

“I know conversations are going on right now, but multiple versions can develop late in the session, so I wouldn’t be surprised if this is something that maybe gets carried over to a fall session,” McKee said. “This is one I am comfortable in waiting for it to work itself out.”

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McKee said he doesn’t mind waiting because he wants to ensure that the legislation gets done right. “I think the plan that I put forward in the budget does get it right,” he said. “But if [legislation is introduced] that is different than that, I want the time to make sure that the due diligence is put in, so it does come out right.”

McKee also said the cannabis legislation should be entrepreneurial, not state-run, governed by the R.I. Department of Business Regulation, and that its “oversight should be well defined.”

Sen. Joshua Miller, D-Cranston, painted a slightly different picture of the status of the legislation in the General Assembly. Miller and Sen, Michael J. McCaffrey, D-Warwick, introduced legislation on March 9 aimed at legalizing marijuana at the behest of Senate President Dominick J. Ruggerio.

Miller said progress has been made regarding several key issues, or sticking points, through ongoing discussions with the governor’s administration, members of the House of Representatives, the attorney general’s office, the court system, and the R.I. Division of Taxation.

Despite that, Miller said it concerns him that the legislation would be pushed off until the fall for a special session. “Sooner is better than later,” he said. “It’s my preference to get it done sooner rather than later.”

Both McKee’s and the Senate’s legislation are based on an entrepreneurial model, a departure from a state-run model that former Governor Gina M. Raimondo had been pushing.

Miller said issues regarding the legislation that have come up have been resolved. “I think we will continue with that momentum,” he said. “When someone has brought forward an issue, we have been able to resolve it.”

Miller said those issues include expungements of marijuana-related convictions, revenue disbursement, and governance issues. He noted the few issues that remain involve oversight, and the amount of retail sales licenses.

McKee’s proposal calls for 25 retail sales licenses, while the Senate’s legislation stipulates a limit of one license per 10,000 residents in a city or town.

“There shouldn’t be a reason why we shouldn’t be able to resolve anything that is outstanding,” said Miller. “We feel the outstanding issues have diminished since we first started talking to them.”

At the same time, Rep. Scott A. Slater, D-Providence, introduced his own cannabis legislation in the House on May 27. The legislation, said Slater, would also be an entrepreneurial model, which would impose a 22% tax, including a 5% tax for cities and towns that allow recreational cannabis sales.

Miller’s legislation seeks a 20% tax that includes a 7% sales tax, 10% special tax and a 3% tax for municipalities that allow cannabis sales.

McKee’s plan calls for a 17% tax, which includes the state’s 7% sales tax and a special 10% excise tax. There is no tax for cities and towns.

Slater’s legislation would set aside five of 15 initial retail licenses geared toward social equity applicants, curbing other retailers from opening until 2025, while allowing for cities and towns to prohibit the sale of adult-use marijuana.

Miller said he did not know the specifics of Slater’s legislation, so it is not known what kind of hurdles it presents to unifying all three pieces of proposed legislation.

Miller also said he has not spoken to House Speaker K. Joseph Shekarchi about the legislation. Shekarchi has said there are other priorities to address and passage of marijuana legislation was not urgent for this legislative year.

“I have a different attitude,” said Miller. “If we don’t [pass] it we are missing a real opportunity, because the longer this takes the more people will potentially establish a relationship with the black market or with a Massachusetts retailer.”

Cassius Shuman is a PBN staff writer. Contact him at Shuman@PBN.com.

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