Comptroller Seeks End to Wholesale Arrests of Minority Youth;
Generate More Than $400 Million Annually for Higher Education
City Comptroller John C. Liu today proposed regulating and taxing the sale of marijuana for personal use by adults in New York City. In a report released today, the Comptroller’s office argued that the change would curb the significant social damage caused by prohibiting the substance and generate more than $400 million annually for higher education.
“New
York City’s misguided war on marijuana has failed, and its enforcement
has damaged far too many lives, especially in minority communities,”
said Comptroller Liu. “It’s time for us to implement a responsible
alternative. Regulating marijuana would keep thousands of New Yorkers
out of the criminal justice system, offer relief to those suffering from
a wide range of painful medical conditions, and
make our streets safer by sapping the dangerous underground market that
targets our children. As if that weren't enough, it would also boost
our bottom line.”
Liu proposed that the City use the
revenues generated by the regulation of marijuana to reduce CUNY tuition
by as much as 50 percent for New York City residents. “In this way,
we’ll invest in young people’s futures, instead of
ruining them,” he said. “By regulating marijuana like alcohol, New York
City can minimize teens’ access to marijuana, while at the same time
reducing their exposure to more dangerous drugs and taking sales out of
the hands of criminals.”
Under
Liu’s proposal, adults age 21 and over could possess up to one ounce of
marijuana, which would be grown, processed, and sold by
government-licensed
businesses for recreational or medicinal purposes. A strict driving
under the influence enforcement policy would be implemented
concurrently, and marijuana use in public would be prohibited.
To
study issues related to regulation, Liu called for the creation of an
interagency task force comprised of the NYPD, Administration for
Children’s
Services, Department of Education, Department of Health and Mental
Hygiene, District Attorneys, and Department of Consumer Affairs. The
task force would work with the New York State Senate and Assembly in
order to pass the appropriate legislation authorizing
the full implementation of the plan.
New
York City’s current market for marijuana is estimated to be around
$1.65 billion annually. Basing its calculations on average consumption
rates and the approximate number of users among New York City residents
and commuters, the Comptroller’s office estimated that taxing the sale
of marijuana would generate approximately $400 million annually, of
which roughly $69 million would go to the State
and MTA in the form of higher sales taxes. The office calculated that
the City could save another $31 million by reallocating time and
resources expended by law enforcement and the judicial system on
marijuana-related arrests. It did not analyze other economic
benefits, such as the reduction in associated incarceration, costs of
those arrested, and potential tourist-generated tax revenue. For a
detailed explanation of the estimation and methodology, please view
Regulating and Taxing Marijuana: The Fiscal Impact on NYC.
But
the social arguments for legalizing marijuana are even more compelling,
the study found. Because of stop and frisk, minority communities
disproportionately bear the consequences of marijuana arrests in New
York City — especially the long-term damage to opportunities for
employment, post-secondary education, and housing. Combined, blacks and
Hispanics make up 45 percent of marijuana users in
New York City, but account for 86 percent of possession arrests. By
contrast, whites and Asians constitute 55 percent of users but only 14
percent of arrests. In 2012, 1 out of 627 white New Yorkers was arrested
for misdemeanor marijuana possession, compared
to 1 out of 175 Hispanics and 1 out of 94 African-Americans.
More
than half (56 percent) of marijuana possession arrests in New York City
are of those age 25 and under — a group for whom the negative
effects of an arrest or criminal record is especially acute.
Convictions can affect people’s eligibility for federal student loans
and NYCHA housing, and a history of arrest can bar them from many jobs.
Low-level
marijuana arrests have skyrocketed during Mayor Bloomberg’s
Administration and are directly related to the NYPD’s stop-and-frisk
strategy. Since Mayor Bloomberg took office in 2002, there have been
almost 460,000 misdemeanor marijuana arrests. The number of these
arrests is on track to reach 37,000 in 2013 alone.
Liu’s
proposal comes on the heels of U.S. Attorney General Eric Holder’s
announcement that the Administration was overhauling federal sentencing
guidelines to eliminate mandatory minimum sentences for non-violent
drug offenders. Liu hailed the Holder move as “a solid step forward” but
said the plan did not represent enough real progress for New Yorkers
because it did not address the need to decriminalize
marijuana or the growing conflict between state and federal laws in
this area.
