Speaker Says Marijuana “Might Not Get Done This Year” and Talks Budget, IGT, and More
Tuesday, April 27, 2021
Rhode Island Speaker of the House Joseph Shekarchi said that legalizing marijuana "might not get done this year," in an interview with GoLocalProv.
GoLocal discussed the most important pending pieces of legislation and their prospects in 2021.
Shekarchi's remarks come as the House Finance Committee is scheduled to consider the legalization of marijuana in Governor Dan McKee's Fiscal Year 2022 budget proposal this week,
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"As far as marijuana goes, I want to be steady and slow. I want to study it more, and take a deliberative approach," said Shekarchi who represents District 23 (Warwick). "It's very possible it might not get done this year. I'm not in a rush to do it."
In a wide-ranging interview with GoLocal, Shekarchi discussed how he anticipates the state will address the nearly $2 billion in the latest round of COVID federal stimulus funding it is due to receive; the proposed IGT-Twin River contract extension with the state that he says he wants to see a "better deal" for Rhode Island, and more.
Marijuana in Focus
McKee’s proposed FY2022 budget estimates legalized marijuana will only generate $1.7 million in net revenue to the state in its first year due to what the budget office calls “substantial startup costs.” In later years, the annual revenue is expected to generate $17 million.
"A lot of the info I have — when I look at other states — there hasn’t been a big revenue enhancer that was purported to be," said Shekarchi of legalization. "Our job is to make sure we do it right. I want to make sure we’re going to favor the taxpayer of Rhode Island."
Shekarchi noted that the lottery for the expansion of state medical marijuana facilities has been delayed, adding another uncertainty to the regulatory landscape.
"I’d rather go slow; I want to make sure there is equity around it. And I want to make sure it's safe -- it is a drug, even if it’s recreational," he added. "So we'll hold the hearing and listen to the community."
Concerns About IGT-Twin River Legislation
In March, representatives from Twin River and IGT made the case during House Finance Committee hearings for a 20-year lottery contract with the state of Rhode Island. READ MORE HERE.
On Monday, Shekarchi said he wants a "better deal" for Rhode Island -- but would not specify what terms he wants to still negotiate.
"I’m not satisfied with the current deal. I want more money upfront," said Shekarchi, who said he has been in talks with the two companies. "I’d prefer not to negotiate in public."
Shekarchi said he expects the House to consider the proposal as a stand-alone piece of legislation -- not in the budget -- and that he anticipates there will be more hearings.
Influx of Federal Funds
With Rhode Island expected to receive $1.78 billion in the latest round of federal COVID stimulus under the Biden Administration, Shekarchi noted how the spending -- and its consideration -- will be markedly different than the CARES Act funds unilaterally disbursed under former Rhode Island Governor Gina Raimondo's administration.
"All of these funds will go through the normal General Assembly process, which the House and Senate will vote on," said Shekarchi. "We're in session -- when [Raimondo distributed prior federal COVID funds], that was during the pandemic. We'll hold public hearings on the process. As I've said, this money should not be spent -- but invested."
Shekarchi noted that states are still waiting for further federal guidance as to how the funds can be utilized.
"I don’t know if they’ll be in this year’s budget process — we’re waiting for guidance," said Shekarchi of the latest round of federal funds. "We’ll listen to all the stakeholders. The General Assembly will be the ones who authorize the use of funds."
"And remember, when people say Rhode Island gets X amount of dollars, that’s for things including unemployment, and funds set aside for cities and towns. The federal government has earmarks," he added. "Right now, we’re moving forward with the budget from McKee. I would guess it would be after May 17 [we'll get more on federal guidlelines] and we’ll have our own revenue estimating."
State's Role in Proposed Hospital Merger
Shekarchi addressed where the state -- and federal government -- is at in reviewing the proposed Care New England-Lifespan merger.
Specifically, Shekarchi noted that officials in the state have had discussions about what they might do if the merger is rejected by the Federal Trade Commission due to the new entity having a near-monopoly in the marketplace.
"Everything is on the table," said Shekarchi, of state review -- versus federal review -- of the merger. "Patient safety is my number one concern, and jobs, number two."
Shekarchi spoke to how the creation of a state oversight board could usurp any rejection by the FTC, but that he's "not sold on the idea yet."
"Right now, it's under federal review," said Shekarchi. "If the state were to undertake a state review, [consumer costs] would be part of the equation."
Charging Cities and Towns for Legal Notices -- With Money Going to Out of State Company
When asked, Shekarchi discussed the Rhode Island statute mandating that the state and municipalities spend millions of dollars posting legal notices to the "paper of record" -- which currently has fewer than 30,000 subscribers and is owned by an out-of-state company.
"[That's a] compelling point," said Shekarchi, of why the state and cities are still burdened with the legal notice publication costs -- when legal notices could be posted to a state website for free. "If anyone came forward with a proposal, we'd certainly consider it."
It is estimated that the cost to the state and city and towns to pay for legal notices is $1.5 million. The Providence Journal now has a circulation of less than 30,000 or 3% of the state's population, but yet is able to claim it is the "newspaper of record" due to a 1950s law.
"If the bill came to the floor I would vote for it," said Shekarchi of repealing the statute.
Sugary Drink Tax, Charter Schools, Nursing Home Staffing
Shekarchi also addressed a number of other issues, including the battle by parents pushing back against legislators who want to rescind charter school seats approved by the Board of Education; the fight over raising pay for nursing home staff, and whether or not the state should consider a sugary drink tax to fund programs to combat obesity -- and hunger.
"Many of those [charter school] parents who testified before the House Finance Committee, I hear their passion and point of view," said Shekarchi. "We’re still a long way off from making any decision — I’m talking to the advocates who want the bill and looking to see if there’s any potential compromise could be had."
The Speaker also said that he is looking at the proposed sugary drink tax, which is aimed at raising revenue to provide healthy eating options to Rhode Islanders in need.
"I know that this is [Representative Jean-Philippe] Barros' bill and he’s been a strong proponent. I also know the [beverage] industry has been a strong opponent," said Shekarchi. "There are pluses and minuses, and we’ll consider it in due course. I can see the benefits of limited sugary drink tax, I’m just not sure what that is."
Shekarchi also talked about how nursing home worker advocates are calling for increased pay for those in the field, while nursing homes say they cannot absorb the increased costs.
"Legislation been proposed, and we have been working on it, and I convened a working group of stakeholders," said Shekarchi. "I expect an amended bill in the near future."
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