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Democrats in Wisconsin renew call for cannabis legalization after Minnesota
recreational law takes effect
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Presented By
alert featured top story
MARIJUANA | CALLS FOR LEGALIZATION
DEMOCRATS IN WISCONSIN RENEW CALL FOR CANNABIS LEGALIZATION AFTER MINNESOTA
RECREATIONAL LAW TAKES EFFECT
* Margot Amouyal , Abbey Machtig , Alexander Shur | Wisconsin State Journal
* Aug 6, 2023
* 3 hrs ago
* 3
JIM MONE, ASSOCIATED PRESS
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Margot Amouyal , Abbey Machtig , Alexander Shur | Wisconsin State Journal
The legalization of marijuana for recreational purposes in Minnesota has some
Democratic Wisconsinites again confronting the state’s drug policies — and
recognizing the amount of tax revenue Wisconsin may be missing out on.
With marijuana legalized in Minnesota as of Aug. 1, Wisconsin is now entirely
surrounded by states that allow cannabis consumption in some form. Michigan, the
first Midwestern state to legalize, in 2018, Illinois and now Minnesota allow
recreational marijuana use. Iowa permits medical consumption.
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According to Neptune Beach police, the cannabis rolled in with the tide on
Saturday.
Analysis from the Minnesota Department of Revenue estimates marijuana sales
could bring in about $110 million in tax revenue by 2027.
In Illinois, dispensaries made more than $1.5 billion in cannabis sales during
2022. About 15% of those sales came from dispensaries in counties bordering
Wisconsin. Analysis from the Legislative Fiscal Bureau estimates half of those
sales came from out-of-state residents. The analysis also found Wisconsinites
contributed around $36 million to the $462 million Illinois received in tax
revenue from cannabis sales in fiscal year 2022.
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“Knowing that Wisconsinites are getting in their cars, taking time out of their
lives to drive to these states and spending their hard-earned dollars in these
states and invigorating a tax base and the economy in other communities — I know
Wisconsinites would prefer to spend their money here,” said Senate Minority
Leader Melissa Agard, D-Madison, one of the staunchest supporters of cannabis
legalization in the Legislature.
STARTING SLOWLY
It might be a while before Wisconsinites start making frequent trips to
Minnesota to buy cannabis. Dispensaries can’t open in Minnesota until the state
figures out a licensing system for the businesses. That could take until 2025,
according to reporting from Minnesota-based news outlets.
But Minnesota’s tribal governments don’t have to wait for the state’s licensing
system to open dispensaries. Red Lake Nation opened the first recreational
marijuana dispensary in north-central Minnesota on Aug. 1.
Half of Wisconsinites above the age of 21 live within a 75-minute drive to a
recreational dispensary, according to a study issued in February by the
Wisconsin Policy Forum, a nonpartisan, independent research organization. This
percentage will likely increase with the Minnesota decision, said Ari Brown, a
senior research associate at the forum.
“It’s going to depend on how and how fast implementation happens,” Brown said.
REVENUE STREAMS
In Michigan, dispensaries popped up quickly, providing the state with a rush of
funds. Sales of recreational marijuana in Michigan increased by a factor of 30
in the first three years after dispensaries opened, according to the report.
In 2022 alone, over $2 billion worth of recreational marijuana products were
purchased in Michigan by both in- and out-of-state residents, four times the
amount in 2020. The state has used this money to fund K-12 education programs
and infrastructure.
Michigan’s marijuana revenue is produced by a 10% excise tax and a 6% sales tax.
In Illinois, this rate is even higher, with some cannabis products taxed at more
than 20%. Minnesota’s tax rate sits at 10%, according to the Minnesota
Department of Revenue.
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420 sales for marijuana industry lowest in last 5 years, report says
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A new sales report from April shows weed transactions from this year's 4/20 were
at their worst in the last five years.
THE LEGISLATURE
Republican legislative leaders have long opposed legalizing recreational
marijuana, though they’ve recently expressed support for a narrow medical
cannabis program.
Democratic Gov. Tony Evers has sought to legalize medical and recreational
cannabis in each of the three budgets he has introduced. Republicans scrapped
the proposals each time.
But legislative Republicans granted a public hearing last year for a medical
marijuana proposal — the first time such a thing has happened under a GOP
Wisconsin Legislature. The bill would have permitted use of the substance by
Wisconsinites dealing with serious medical conditions. But the public hearing
came after the Legislature wrapped up its activity for the year, so the proposal
never received a floor vote.
Republicans have said they’ll reintroduce the measure with some modifications
this year, and GOP legislative leaders have said recently that both chambers
would support some version of medical marijuana.
So far, there haven’t been any GOP medical cannabis proposals this session.
“Nothing has come to fruition,” Agard said.
The lead author of last year’s proposal, Sen. Mary Felzkowski, R-Irma, didn’t
immediately respond to a request for comment about whether she would reintroduce
her medical cannabis proposal.
“The Assembly is crafting a proposal that we hope to bring forward this fall,”
Assembly Speaker Robin Vos, R-Rochester, said in a statement Thursday.
POPULAR SUPPORT
One reason cannabis remains illegal in Wisconsin is that Republicans’
gerrymander of the legislative maps give them a disproportionate legislative
majority that doesn’t allow many Wisconsinites’ voices to be heard, Agard said.
WHAT TO KNOW AS RECREATIONAL MARIJUANA BECOMES LEGAL IN MINNESOTA ON AUG. 1
Minnesotans can legally possess and grow their own marijuana for recreational
purposes starting Tuesday, Aug. 1, subject to limits meant to keep a lid on
things while the state sets up a full-blown legal cannabis industry. The
Democratic-controlled Minnesota Legislature approved a massive legalization bill
and Gov. Tim Walz signed it in May. At least one Minnesota tribe, the Red Lake
Nation, plans to take advantage of its sovereignty and allow sales right away.
But the state is projecting that most legal retail sales probably won’t begin
until early 2025 because it will take time to put the licensing system and other
regulations in place.
Under the current legislative maps, Wisconsin Republicans — who largely denounce
marijuana on the basis of the health consequences they say it poses, especially
to young people — have a near-supermajority in the Legislature.
Agard said she’s hopeful a recently filed lawsuit seeking to redraw the state’s
political maps could help resolve the matter.
Most Wisconsinites support legalizing cannabis. An October 2022 Marquette Law
School Poll found 64% of registered voters in Wisconsin, including 43% of
Republicans, want marijuana to be fully legalized. A 2019 Marquette Law School
Poll found 83% of Wisconsinites said medical marijuana with a doctor’s
prescription should be legal.
> Half of Wisconsinites above the age of 21 live within a 75-minute drive to a
> recreational dispensary.
>
> -- NO TITLE --
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MARGOT AMOUYAL
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