THIS PROGRAM IS MADE BY MPT TO ENRICH THE DIVERSE COMMUNITIES THROUGHOUT OUR STATE AND IS MADE POSSIBLE BY THE GENEROUS SUPPORT OF OUR MEMBERS.

THANK YOU.

>> Jeff: EXPANDING BROADBAND INTERNET COVERAGE.

>> THERE IS A DIVIDE IT'S ONE THING TO HAVE ACCESS AND ANOTHER THING TO UTILIZE THE INTERNET.

>> Jeff: AN ELECTRIC SHOCK.

>> THE RETAIL SUPPLIERS ARE CHARGING MARYLAND FAMILIES IN EXCESS OF $200 MILLION ABOVE WHAT THEY WOULD BE PAYING TO COMPLETELY ELIMIT THEY THE RETAIL SUPPLIERS AND THEIR ABILITY TO COMPETE WITH THE MONOPOLIES.

AGAIN IT'S GOING TO COST OUR DRIVE UP ELECTRICITY COSTS.

>> Jeff: AND FAST GROWTH FOR THE CANNABIS INDUSTRY.

>> EVERY PRODUCT THAT IS SOLD WITHIN A LICENSED DISPENSARY HAS UNDERGONE LABORATORY TESTING.

>> Announcer: CONNECTING MARYLANDERS TO THEIR GOVERNMENT THIS IS "STATE CIRCLE".

>> Jeff: GNGS.

THE BIG STORY AROUND "STATE CIRCLE" THIS WEEK IS THE MONEY CRUNCH.

AFTER YEARS OF SURPLUSES, LAWMAKERS WERE TOLD YESTERDAY THAT REVENUES WILL NOT HIT PROJECTIONS FOR THIS YEAR OR NEXT.

NANCY AMATA LOOKS AT SOME OF THE PROPOSALS TO CLOSE THE GAP.

STATE TREASURER DEREK DAVIS ANNOUNCED THE MARYLAND BOARD OF REVENUE ESTIMATES VOTED TO LOWER STATE REVENUE PROJECTIONS FOR 2024 AND 2005 BY 2025 BY $250 MILLION.

DESPITE A PROJECTED BUDGET SHORTFALL NEXT FISCAL YEAR OF $1.1 BILLION, GOVERNOR MOORE'S BUDGET DOES NOT INCLUDE TAX HIKES BUT REVENUE NEEDS TO BE RAISED TO FUND KEY PROJECTS IN THE FUTURE.

>> THERE IS A DESIRE TO FUND THREE THINGS.

BIG FUNDING NEEDS FOR.

THE BLUEPRINT AND THE TRANSPORTATION DEFICIT AND SURE, IF WE CAN DO THINGS TO IMPLEMENT THE CLIMATE SOLUTIONS ACT THAT MOST OF US SUPPORT.

>> THE DELEGATE THE CHAIR OF THE ENVIRONMENT AND TRANSPORTATION COMMITTEE SAYS LAWMAKERS ARE EXPLORING ALL POSSIBILITIES.

>> LAST NIGHT, THE ENVIRONMENT SUBCOMMITTEE TALKED ABOUT A BILL FROM DELEGATE STEIN RELATED TO FEES ON GAS AND COAL BEING TRANSPORTED IN THE STATE A NOVEL PROPOSAL.

OBVIOUSLY A LOT OF DETAILS TO WORKOUT THERE.

LAST WEEK WE HAD LEGISLATION RELATED TO TOLLS AND FOLLOWING OTHER STATES AND YOU KNOW LEVERAGING OUR TOLL FACILITIES FOR OTHER TRANSPORTATION NEEDS.

THE SECRET ABOUT THE TOLLS IS THEY HAVE TO GO UP NO MATTER WHAT BECAUSE THEY HAVE NOT DONE UP IN A DECADE.

>> ANOTHER BILL WOULD GIVE COUNTIES THE ABILITY TO RAISE PROPERTY TAXES FOR SPECIFIC TRANSPORTATION PROJECTS AND EDUCATION NEEDS.

SOME ARE PUSHING FOR HIGHER TAXES FOR LARGE CORPORATIONS IN THE STATE'S HIGHEST INCOME EARNERS OTHERS SAY IT'S TIME TO MAKE EVERYDAY CONSUMERS PAY MORE.

ONE BILL CALLS FOR A 50 CENT FEE TACKED TO EVERY ON-LINE PURCHASE THAT GETS DELIVERED AND UBER OR LYFT AND RIDE AND EVERY FOOD ORDER THAT ARRIVES AT YOUR DOOR.

>> PEOPLE DON'T WANT ANYTHING TO DO WITH IT ANOTHER THING THAT IS PUTTING THAT FEE WILL GO BACK TO THE CUSTOMER, THE CUSTOMERS WILL PAY MORE AS A RESULT OF THAT AND RIGHT NOW, ONE OF THE GOOD THINGS ABOUT THE DELIVERIES AT YOUR HOME YOU ARE USING THE ROADS LESS.

YOU ARE NOT OUT THERE AS MUCH.

SO IT JUST SEEMS TO BE ANYWAY TO RAISE MONEY DOWN HERE PEOPLE ARE THINKING ABOUT BUT A LOT ARE NOT GOOD IDEAS.

>> DESPITE THE WARNINGS ABOUT THE STATE'S FINANCIAL PICTURE AND WHAT IS AT STAKE, THE SENATOR THE CHAIR OF THE BUDGET AND TAXATION COMMITTEE SAYS MARYLANDERS CAN REST ASSURED.

>> WE ARE SET FOR THIS YEAR.

WE HAVE A BALANCED BUDGET IT IS STILL PROTECTS THE VALUES THAT I THINK WE ALL BELIEVE IN.

THE BLUEPRINT IS FUNDED FOR THIS YEAR.

WE ARE MOVING FORWARD.

>> I'M NANCY AMATA FOR "STATE CIRCLE".

>> Jeff: 25 YEARS AGO, THE LEGISLATURE APPROVED UTILITY DEREGULATION THAT CREATED A LIGHTLY REGULATED MARKET FOR COMPANIES TO SELL THEIR BRAND OF ELECTRICITY AND NATURAL GAS TO CONSUMERS.

AS SALES ABUSES HAVE PILED UP, THOUGH, LAWMAKERS ARE NOW LOOKING AT REINING IN THAT INDUSTRY AS SUE COPPIN REPORTS.

>> PRINCE GEORGE'S SENATOR AUGUST 16 SAYS HIS BILL SENATE BILL 1 IS INTENDED TO MAKE CERTAIN CONSUMERS DO NOT PAY MORE THAN THEY SHOULD FOR ELECTRIC OR IT WAS.

>> RIGHT NOW THERE ARE 300,000 MARYLAND FAMILIES, CUSTOMERS WHO GET THEIR ENERGY, THE ENERGY FROM RETAIL SUPPLIERS.

THOSE RETAIL SUPPLIERS ARE CHARGING THOSE MARYLAND FAMILIES IN EXCESS OF $200 MILLION ABOVE WHAT THEY WOULD OTHERWISE BE PAYING IF THEY SIGNED UP FOR YOUR ENERGY ON THE DEFAULT FROM THE UTILITIES THEMSELVES.

THAT IS WHAT THIS BILL IS ABOUT.

>> THE PROVISIONS IN THE LEGISLATION WHICH HAS A COMPANION HOUSE BILL INCLUDE CREATING AN ENERGY SALES PERSON LICENSE.

ALLOWING INVESTOR OWNED UTILITIES TO MARKET THEIR DEFAULT ELECTRIC SERVICE.

REFERRED TO AS SOS OR STANDARD OFFER SERVICE.

SETS REQUIREMENTS FOR ELECTRICITY SUPPLIER CONTRACTS.

SETS NEW REPORTING REQUIREMENTS FOR ELECTRIC COMPANIES AND REQUIREMENTS FOR GREEN POWER MARKETING BY ELECTRICITY SUPPLIERS.

IN THE SENATE THIS WEEK.

>> HAS EVERYONE RECORDED THEIR VOTE?

>> A SERIES OF AMENDMENTS WERE OFFERED TO THE BILL INCLUDING ONE TO INSURE THAT ALL UTILITY CUSTOMERS COULD GET AUTOMATIC CONTRACT RENEWALS.

>> EVERY KIND OF SERVICE IN MARYLAND WE HAVE AUTO RENEWALS FOR AND YOU CAN STOP IT WHEN YOU ARE READY TO STOP IT.

AND THIS BILL RIGHT NOW AS WRITTEN WOULD SAY THAT GREEN RETAIL ENERGY SERVICES IS THE ONLY SERVICE YOU CAN'T AUTO RENEW.

THIS WOULD ALLOW GREEN PRODUCT CUSTOMERS TO GIVE THEIR AFFIRMATIVE CONSENT TO BE AUTO RENEWED AND FOR NO LONGER THAN THE ORIGINAL CONTRACT LENGTH.

>> BUT THE SPONSOR ARGUED PROHIBITING AUTO PARTICULAR RENEWALS WAS IN THE CONSUMERS' BEST INTEREST.

>> ONE OF THE PROTECTIONS WE WANTED TO MAKE SURE WE INCORPORATED INTO THE NEW GREEN MARKET, WAS THAT WE MADE SURE THAT INDIVIDUALS WOULD HAVE TO BECAUSE THERE'S NOT THE PRICE CEILING ON IT THAT THEY WOULD HAVE TO REGULARLY BE ABLE TO REVIEW THE PRICING THAT THEY GOT.

AND A WAY TO DO THAT WAS TO MAKE SURE THAT THERE WERE NOT AUTO RENEWALS.

>> STEVE HERSHEY WARNED THE LEGISLATION WOULD ONLY CHASE BUSINESSES AWAY AND DRIVE UP THE COST OF ENERGY.

>> WE DO RECOGNIZE THAT OVER THE YEARS, YES, THERE HAVE BEEN SOME BAD PLAYERS AND THAT'S BEEN IDENTIFIED AND I THINK THIS BILL DOES HAVE THINGS THAT WILL HELP MAKE SURE THAT DOESN'T HAPPEN ANYMORE.

BUT TO COMPLETELY ELIMIT NATURED THE RETAIL SUPPLIERS AND COMPETED WITH THE MONOPOLIES IS GOING TO DRIVE UP ELECTRICITY COSTS.

>> THE SENATOR SAYS THE LEGISLATION IS INTENDED TO MAKE SURE THAT CONSUMERS ARE NOT BEING TAKEN ADVANTAGE OF.

>> IF THE BUSINESSES THAT ARE DRIVEN AWAY WERE OUT THERE TAKING ADVANTAGE OF MARYLANDERS I AM OKAY WITH THAT.

AS I SAID BEFORE, IF YOU HAVE A PRODUCT AND YOU CAN MAKE MONEY AT IT AND IT'S LESS THAN THAT DEFAULT SERVICE WE WANT YOU TO DO THAT.

THAT WAS PREMISE OF THIS IN 1999.

>> ANNAPOLIS I'M SUE COPPIN FOR "STATE CIRCLE".

>> Jeff: ANOTHER UTILITY IN THE NEWS BROADBAND INTERNET.

CHARLES ROBINSON REPORTS HOW STATE BROADBAND DIRECTOR HAMMOND IS NARROWING THE DIGITAL DIVIDE.

>> ACROSS THE NATION WE KNOW THERE IS A DIVIDE.

IT'S ONE THING TO HAVE ACCESS AND ANOTHER THING TO BE ABLE TO UTILIZE THE INTERNET NOT ENOUGH JUST TO HAVE THE ACCESS TO UTILIZE THAT ACCESS.

AND WE WILL DO THAT THROUGH OUR DIGITAL EQUITY FUND.

>> HIS JOB IS MAKE SURE THERE IS' INFRASTRUCTURE AND DIGITAL EQUITY IN THE DIGITAL SPACE, INTERNET.

DURING THE COVID PANDEMIC THIS SERVICE BECAME INDISPENSABLE.

THE FEDERAL GOVERNMENT STEPPED IN PROVIDING FINANCIAL ASSISTANCE TO MARYLAND THROUGH ARPA FUNDS.

>> SO WHERE DO THE ARPA FUNDS GO?

WELL, IN MARYLAND THEY WENT TO BUILD INFRASTRUCTURE AS WELL AS PRO SIDE SUBSIDIES.

>> HOW CAN WE SUSTAIN A SUBSIDY WHEN IT COMES TO THE INTERNET?

ONE OF THE GREAT THINGS THAT FEDERAL GOVERNMENT HAS PROVIDED NOT JUST THROUGH THE FUNDING WHEN IT COMES TO THE INFRASTRUCTURE DEPLOYMENT BUT WHAT THEY'VE DONE WITH ACP.

ALLOW HOUSEHOLDS THAT COULD NOT AFFORD THE INTERNET AND NOW AFFORD THE INTERNET THROUGH A SUBSIDY.

>> THE STATE KICKED IN $15 A MONTH TO EASE FINANCIAL CONCERNS BUT ALL OF THAT WILL END IN APRIL.

THERE'S 280,000 HOUSEHOLDS WHO GET STATE SUBSIDIES THESE ARE TRYING TO BALANCE WHAT TO PAY AND WHEN TO PAY THEM.

HAMMOND REMINDS US DECIDING WHAT IS AFFORDABLE AND CONSIDERING AN ADOPTION PLAN AND DEVICE ACCESS IS INDIFFERENCE PENCEABLE.

>> WE HAVE TO TACKLE MULTIFACETED APPROACHES EVERY HOUSE HOLD THAT ARE IN THE DIGITAL DIVIDE THEY REALLY HAVE UNIQUE SITUATIONS.

AND SO ONE HOUSEHOLD MAY HAVE A DIGITAL SKILLS CONCERN AND ANOTHER IS AN AFFORDABILITY CONCERN.

SO WHAT WE'VE DONE IN THE PAST USING ARPA FUNDS IS REALLY IMPLEMENT PILOT PROGRAMS TO SEE ENGAGE WITHIN OUR COMMUNITY PARTNER WITH OUR STAKEHOLDERS, OUR LOCAL JURISDICTIONS AND SOME OF THE NONPROFITS IN OUR COMMUNITIES DOING THIS WORK.

WHAT KIND OF FUNDING IS NEEDED, WHAT IS REQUIRED FROM THE STATE TO SUPPORT THEIR INITIATIVES TO HELP CLOSE THE DIVIDE WE'RE SEEING IN OUR STATE.

>> APPEALING TO COMMUNITIES TO SUBSIDIZE THOSE WHO NEED ASSISTANCE IS A TOUGH ASK, BUT HAMMOND BELIEVES IT IS DOABLE.

I'M CHARLES ROBINSON FOR "STATE CIRCLE".

>> A PUSH AT THE STATE HOUSE TO GET THE EQUAL RIGHTS AMENDMENT OVER THE FINISH LINE.

>> FORWARD TOGETHER BACKWARD NEVER.

>> THE ERA WAS APPROVED BY CONGRESS IN 1972 WITH A SEVEN-YEAR DEADLINE TO BE RATIFIED BY THE STATES THERE IS NO RATIFICATION DEADLINE IN THE CONSTITUTION.

MARYLAND WAS AMONG THE FIRST OF THE 38 STATES TO APPROVE THE ERA, VIRGINIA, THE LAST IN 2020.

THE SENATOR IS SPONSORING A RESOLUTION CALLING ON CONGRESS AND THE PRESIDENT TO RECOGNIZE THAT THE REQUIREMENTS HAVE BEEN MET TO ENACT THE PROPOSED CONSTITUTIONAL AMENDMENT.

>> IT'S REALLY IMPORTANT THAT THE STATE OF MARYLAND SEND THE MESSAGE THAT ALONG WITH OUR PEER STATES THAT RATIFIED THE EQUAL RIGHTS AMENDMENT WE'RE SUPPORTIVE AND AMOUNT WE NEED IS FOR CONGRESS TO ACT.

>> Jeff: THE SENATE HAS APPROVED THE RESOLUTION HEARING IN THE HOUSE OF DELEGATES IS SCHEDULED FOR NEXT WEEK.

>> OUR NEWSMAKER IS WILL TILBURG DIRECTOR OF THE MARYLAND CANNABIS ADMINISTRATION.

SIR, THANK YOU FOR JOINING US.

TELL US FIRST WHAT THE CANNABIS ADMINISTRATION DOES?

>> JEFF, THANKS FOR HAVING ME.

THE CANNABIS ADMINISTRATION IS THE NEW STATE REGULATORY BODY THAT HAS BEEN PUT IN CHARGE OF LICENSING AND REGULATING THE LEGAL ADULT USE CANNABIS MARKETPLACE IN MARYLAND.

>> Jeff: AND THAT'S BEEN IN EXISTENCE SINCE LAST JULY, I BELIEVE.

HOW HAS IT GONE?

WHAT'S THE VOLUME OF SALES LIKE?

>> SURE, YEAH.

THE CANNABIS ADMINISTRATION WAS CREATED IN MAY THROUGH THE CANNABIS REFORM ACT AND EMERGENCY LEGISLATION PASSED BY THE GENERAL ASSEMBLY AND THE NEW MARKETPLACE INITIATED ON JULY FIRST.

QUICK TURN AROUND TIME FOR A NEW AGENCY TO STAND UP A NEW INDUSTRY BUT IT'S BEEN VERY SMOOTH.

IF ANYONE IS FAMILIAR WITH LEGAL CANNABIS ACROSS THE COUNTRY STATES HAVE HAD CHALLENGES WITH GETTING THINGS OFF THE GROUND AND IN COMPARISON MARYLAND HAS HAD A SUCCESSFUL ROLL OUT FIRST IN TERMS OF LEGAL SALES.

SO FROM JULY FIRST THROUGH THE END OF CALENDAR YEAR 23, THERE WERE 330 MILLION IN RETAIL SALES OF ADULT USE ONLY.

220 FOR MEDICAL SO.

550 MILLION TOTAL SALES.

TO PUT THAT INTO PERSPECTIVE THE DEPARTMENT OF LEGISLATIVE SERVICES DURING THE 23 SESSION ESTIMATED YEAR ONE WOULD BE ABOUT $400 MILLION IN TOTAL ADULT USE SALES.

THROUGH THE FIRST SIX MONTHS WE ALMOST ECLIPSED THAT THE MARKET IS SIGNIFICANTLY STRONGER THAN I THINK MOST FOLKS ANTICIPATED.

>> Jeff: HOW MUCH DO WE TAX THAT?

ASSUMING WE PROBABLY DON'T TAX THE MEDICAL STUFF.

BUT THE RECREATIONAL SALES?

>> YOU'RE CORRECT THAT WE DON'T TAX MEDICAL SALES.

THAT'S ALWAYS BEEN THE CASE.

RIGHT NOW THE BREAKDOWN IS 60/40% ADULT USE.

THE TAX IS AT THE REGISTER IT IS A 9% TAX ASSESSED ON ALL ADULT SALES.

THROUGH AGAIN, THE FIRST SIX MONTHS OF ADULT USE WE SAW ABOUT $30 MILLION COME INTO THE STATE THROUGH THOSE SALES.

>> Jeff: NOW, WHEN THIS STARTED, THE WAY YOU STARTED UP SO QUICKLY WAS THE EXISTING DISPENSARIES LICENSED FOR MEDICAL SALES WERE AUTHORIZED TO DO RECREATIONAL SALES.

YOU'RE EXPANDING THAT IN THE PROCESS OF EXPANDING IT NOW.

TELL US HOW THAT WORKS AND THE FOCUS NOW IS ON IMPROVING DIVERSITY, RIGHT?

>> EXACTLY CORRECT.

AS YOU MENTIONED THE INITIAL MARKETPLACE WAS FILLED WITH MEDICAL OPERATORS THAT CONVERTED PAID A CONVERSION FEE 8% OF GROSS REVENUE TO OPERATE IN THE EXPANDED MARKETPLACE.

WE GOT TO WORK ON THE FIRST OF THREE LICENSING ROUNDS CON STEM PLATED PLATED IN STATUTE.

AND THE FIRST ROUND IS EXCLUSIVE TO SOCIAL EQUITY APPLICANTS THE FIRST IN THE NATION.

SOCIAL EQUITY APPLICANT IN MARYLAND IS AN INDIVIDUAL WHO LIVED OR WENTZ TO PUBLIC SCHOOL IN DISPROPORTIONATELY IMPACTED AREAS.

AREAS IN THE STATE THAT HAVE HIGHER THAN AVERAGE ARREST CHARGES FOR CANNABIS OVER A CERTAIN PERIOD OF TIME.

SO MARYLAND IS LEADING ON THE SOCIAL EQUITY FRONT.

WE PERFORMED AN APPLICATION ROUND IN THE FALL OF 2023 AND THE GOOD NEWS IS WE GOT 1700 APPLICANTS OUTSTANDING FOR ONLY 179 LICENSES THAT CAN BE AWARDED.

AND OUR STAFF WERE HARD AT WORK IN REVIEWING THOSE ON A PASS FAIL BASIS FOR ENTER INTO A LOTTERY N FEBRUARY WE NOTIFIED ALL APPLICANTS WHETHER THEY HAD PASSED OR FAILED.

AND WILL BE SCHEDULING A LOTTERY TARGETING THE MIDDLE OF MARCH JUST AROUND THE CORNER.

HOLDING THE LOTTERY AND GETTING AWARDS OUT THE DOOR SO THE NEW SOCIAL EQUITY BUSINESSES CAN GET UP AND RUNNING.

>> Jeff: IS THERE ANYTHING PENDING IN THE LEGISLATURE, ANY BILLS THAT YOUR OFFICE HAS A POSITION ON?

I KNOW THERE'S A MOVE BY COUNTIES TO TRY TO GET MORE CONTROL OF WHERE THESE DISPENSARIES CAN BE LOCATED.

>> SURE.

I WAS PROMISED A QUIET LEGISLATIVE SESSION IN CANNABIS WITH HAVING 115 PAGE PASSING LAST APRIL BUT THERE'S ALWAYS TWEAKS AND ONE OF THE PRIORITY ISSUES THAT WE'RE WORKING WITH THE LEGISLATURE ON IS WHAT YOU TOUCHED ON RELATES TO LOCAL ZONING.

THE STATE AND THE GENERAL STEM ARE SEEKING TO BALANCE THE ABILITY OF LOCAL COMMUNITIES TO CONTROL WHERE DISPENSARIES MAY SITE.

BUT WANTING TO ENSURE THAT THE NEW SOCIAL EQUITY BUSINESSES THAT THE STATE HAS INVESTED SO MUCH TIME, ENERGY, RESOURCES IN ARE ABLE TO ACTUALLY SITE AND GET OPERATIONAL AND CONTINUE TO EXPAND AND IMPROVE THE MARKETPLACE.

THOSE ARE ONGOING DISCUSSIONS OF HOW YOU STRIKE THAT BALANCE OF PROTECTING THE COMMUNITY AND ENSURING THE BUSINESSES CAN OPERATE.

>> Jeff: DID I READ CORRECTLY THAT THE STATE IS PROVIDING FINANCIAL ASSISTANCE TO SOME OF THE SELLERS?

I DON'T KNOW IF IT'S THE EXISTING ONES OR THE WINNERS OF THE NEW SOCIAL EQUITY ROUND BECAUSE, I WONDER ABOUT THAT BECAUSE A LICENSE TO SELL CANNABI WOULD SEEM LIKE A LICENSE TO PRINT MONEY AND IF THAT'S THE CASE WHY WOULD THEY NEED FINANCIAL SUPPORT?

>> YEAH.

THE REFORM ACT ESTABLISHED A CANNABIS BUSINESS ASSISTANCE FUND AND THAT IS TARGETED PRIMARILY AT NEW SOCIAL EQUITY OPERATORS THAT WILL BE AWARDED IN THE NEXT ROUND AND COMING ON-LINE.

WHAT YOU HIT ON IS A COMMON MISCONCEPTION THAT CANNABIS LICENSES ARE A GOLDEN TICKET OR A LICENSE TO PRINT MONEY.

GIVEN THE CONTINUED FEDERAL I WILL LEGALITY OF CANNABIS, THERE ARE SIGNIFICANT FINANCIAL DRAWBACKS.

TO THE MOST PRIMARY ONES ARE FROM THE TAX CODE.

THE I.R.S.

SAYS YOU CANNOT DEDUCT NORMAL TAXES THAT A TYPICAL BUSINESS COULD.

A LOT OF THE CANNABIS BUSINESSES PAY A TAX RATE OF 60%.

THEY ARE ABLE TO EARN LESS THAN TYPICAL BUSINESSES.

AND THE SECOND PIECE IS BANKS CAN'T LEND.

SO ACCESS TO CAPITAL IS EXTREMELY LIMITED THE LARGE BANKS WE HAVE IN THE U.S. ARE FEDERALLY RESTRICTED FROM GETTING LOANS TO CANNABIS BUSINESSES.

THOSE BUSINESSES HAVE TO SEEK OTHER MEANS OF CAPITALIZING THEIR OPERATIONS.

>> Jeff: YOU MENTIONED THAT MARYLAND LEARNED A LOT FROM OTHER STATES THAT HAVE DONE THIS.

I KNOW SOME STATES HAVE HAD A PROBLEM WITH A LOT OF THE BUSINESS STAYING WITH THE TRADITIONAL MAKE WHICH IS THE ILLICIT MARKET AS OPPOSED TO GOING THE LEGIT ROUTE.

DO WE HAVE ANY IDEA WHAT WE'RE SEEING IN MARYLAND?

>> FIRST, THAT IS A CRITICAL ISSUE AND PART OF THE REASON THAT THE GENERAL ASSEMBLY ALLOWED THE EXISTING MEDICAL OPERATORS TO CONVERT.

THEY MADE THE DECISION IF THIS IS TO BE LEGAL FOR INDIVIDUALS 21 OR OVER TO POSSESS AND USE, THE STATE HAS TO PROVIDE LEGAL ACCESS POINTS.

AND WE'VE SEEN THAT JURISDICTIONS THAT HAVEN'T HAD THAT IS A PROLIFERATION OF THE ILLICIT MARKET.

HAVING 100 DISPENSARIES MARYLAND WAS ABLE TO AVOID THAT.

TO YOUR BIGGER QUESTION ABOUT THE MARKET SHARE OF LEGAL VERSUS ILLICIT WE DON'T HAVE THE DATA YET.

SOMETHING THAT THE CANNABIS ADMINISTRATION IS TASKED TO SUBMITTING A REPORT.

AFTER THIS FULL YEAR OF SALES WE WILL BE ASSESSING THE PERCENTAGE.

MARKET THAT IS LEGAL COMING THROUGH THE LICENSED DISPENSARIES IN THE STATE VERSUS ILLICIT OPERATORS THAT COULD BE UNLICENSED IN BRICK AND MORTAR STORES ON STREET DEALERS.

>> Jeff: BEFORE WE GO I WOULD LIKE TO MAKE CLEAR WITH THE EXCITEMENT ABOUT THE NEW BUSINESSES OPENING, THIS STUFF IS NOT WITHOUT MEDICAL RISKS.

THERE'S RECENT STUDIES POINTING TO HEART DISEASE, PSYCHIATRIC CONCERNS.

BUT CLEARLY, THE RISK TO SOMEBODY USING IT IS LOWER IF THEY ARE GETTING THE PRODUCT FROM A REGULATED BUSINESS BECAUSE SOMETIMES WHAT THEY MIGHT GET IN THE ILLICIT MARKET IS GOING TO BE CUT WITH WHO KNOWS WHAT?

>> YEAH.

THE ONE OF THE DRIVING FACTORS FOR LEGALIZATION IS PROVIDING ACCESS TO LEGAL, SAFER, TESTED CANNABIS PRODUCTS.

EVERY PRODUCT THAT IS SOLD WITHIN A LICENSED DISPENSARY HAS UNDERGONE COMPREHENSIVE LABORATORY TESTING TO DETERMINE WHAT IS IN THE PRODUCT, THC, CBS SO CONSUMERS ARE AWARE OF WHAT THEY ARE CONSUMING AND ENSURING THERE'S NOT CONTAMINANTS LIKE METALS THAT ARE PRESENT IN THE PRODUCTS.

THAT IS SOMETHING WE DO SEE IN THE ILLICIT MARKETPLACE IS ADDITIVES.

SO TO THAT END, THE STATE ACTUALLY THE GENERAL ASSEMBLY MANDATED AT THAT TIME THE CANNABIS ADMINISTRATION ESTABLISH A STATE REFERENCE LABORATORY TO CHECK ON THE INDEPENDENT LABS THAT ARE THE ONES TO DO THE TESTING FOR THE PRODUCTS.

SO I'M THRILLED TO ANNOUNCE THAT THAT LAB GOT STOOD UP THIS WEEK.

AND WE WILL BEGIN COMPLIANCE HERE ON THE INDEPENDENT LABS AND ESTABLISHING LAB METHODOLOGIES AND STANDARDIZING PROCESSES AND TESTING MOVING FORWARD WHICH IS GREAT.

THIS IS THE FIRST LAB REFERENCE LAB IN THE NATION THAT IS LED BY A CANNABIS REGULATORY AGENCY.

WE'RE EXCITED TO BE PART OF MOVING THE RESEARCH, THE SCIENCE AND THE SAFETY ON THIS PRODUCT FORWARD.

>> Jeff: WILL TILBURG IS THE DIRECTOR OF THE CANNABIS ADMINISTRATION.

WE APPRECIATE YOUR TIME.

THANK YOU.

>> THANK YOU SO MUCH.

>> Jeff: NOW FOR THE POLITICAL ROUNDTABLE.

MPT'S SUE COPPIN IS JOINED BY PAMELA WOOD OF THE BALTIMORE BANNER.

THANK YOU FOR BEING WITH US.

THE STORY WAS THE BOARD OF REVENUE ESTIMATES AND THE CHANGE IN THE STATE'S FINANCES.

A COUPLE HUNDRED MILLION DOLLARS IN TOTAL.

AND, PAM, THE REACTION HAS BEEN DIFFERENT EVEN AMONG DEMOCRATS.

THE LEADERSHIP OF THE HOUSE AND SENATE.

>> YES, THAT'S RIGHT.

REMEMBER DEMOCRATS HAVE THE MAJORITY IN BOTH CHAMBERS.

BUT THEY ARE NOT UNITED ON THIS FRONT.

THE HOUSE OF DELEGATES IS MORE OPEN TO RAISING TAXES OR OTHER REVENUES TO CLOSE THIS SLIGHTLY LARGER BUDGET GAP.

THE STATE SENATE MEANWHILE, DEMOCRATIC LEADERS SAY NO WAY, NOT THIS YEAR.

WE CAN HANDLE IT THIS YEAR WITHOUT HAVING TO HAVE THAT CONVERSATION YET.

>> Jeff: WHERE DOES THE BUDGET ITSELF STAND?

>> RIGHT NOW, INITIALLY BEING UNDER REVIEW AND ACTUALLY SUPPOSED TO PASS OUT TODAY FROM THE BUDGET AND TAXATION COMMITTEE.

IT WILL GO TO THE FLOOR NEXT WEEK IN THE SENATE.

AND EVENTUALLY BACK TO THE HOUSE.

BUT AS YOU KNOW IN ANNAPOLIS THE HOUSE IS WORK ON THE BUDGET IS WELL UNDERWAY.

>> Jeff: AND THE OTHER PLAYER WHEN IT COMES TO A BIG DECISION ON DO WE HAVE A GENERAL INCREASE IN TAXES THIS YEAR OR MAYBE NEXT YEAR OR MAYBE NEVER IS THE GOVERNOR WHO HAS NOT EXPRESSED A LOT OF ENTHUSIASM TO THIS POINT FOR RAISING TAXES.

>> YEAH, THAT'S RIGHT.

WHAT THE GOVERNOR HAS TOLD US MULTIPLE TIMES THIS SESSION HE HAS QUOTE A VERY HIGH BAR FOR ANY NEW OR EXPANDED TAXES.

HE SAYS THAT HASN'T CHANGED AS THE SESSION HAS GONE ON.

SO THAT'S ANOTHER ONE IN THE CAMP OF NO NEW TAXES THIS YEAR.

>> Jeff: SUE, WHAT HAPPENED WITH THE SECURITY SITUATION AT THE STATE HOUSE?

IT'S BASKETBALL A WEEK SINCE WE HAD THE LOCKDOWN AND A PHONED IN THREAT.

DO YOU NOTICE ANY CHANGES THERE?

>> NOT REALLY AT THIS POINT IN TIME.

I KNOW THAT THE SENATE PRESIDENT AND HOUSE SPEAKER LET EVERYBODY KNOW THEY HAD BEEN IN DISCUSSIONS AND THERE IS A SYSTEM UNDER TESTING RIGHT NOW.

I KNOW PAM WAS IN THE PRESSROOM IN THE BASEMENT OF THE STATE HOUSE AT THE TIME THAT THIS WENT DOWN.

I DON'T KNOW IF YOU'VE NOTICED ANYTHING DIFFERENT.

I HAVE NOT PERCEIVED ANYTHING BUT SOMETHING IS SUPPOSED TO BE IMPLEMENTED SOON.

>> YEAH, WHAT IS IN THE WORKS JUST A COUPLE DAYS BEFORE HOUSE SPEAKER JONES AND THE SENATE PRESIDENT SIGNED A CONTRACT FOR I ATTENTION ALERT SYSTEM GEOFENCED AROUND THE STATE HOUSE COMPLEX IN THE EVENT OF AN EMERGENCY THE CELLPHONES WOULD GET A PING.

THEY HOPE TO ROLL IT OUT SOON THERE WAS A LACK OF INFORMATION ABOUT WHAT WAS GOING ON TO THE PEOPLE WHO WERE AFFECTED BY IT.

>> Jeff: TELL US ABOUT THE ACCESS TO CARE ACT, WHICH PASSED THE SENATE TODAY, I BELIEVE.

>> IT DID.

I BELIEVE THE HOUSE BILL STILL PENDING AT THIS POINT IN TIME.

BUT IT WILL ALLOW THOSE WHO ARE UNDOCUMENTED BUT LIVING HERE TO BUY INTO THE STATE'S HEALTHCARE EXCHANGE.

AND THERE WAS SOME DEBATE ON THE SENATE FLOOR EARLIER TODAY ABOUT INDIVIDUALS OBVIOUSLY SENATORS WHO WERE NOT TERRIBLY HAPPY ABOUT THAT TYPE OF THING.

PAM YOU WERE ON THE FLOOR?

>> YES, THE SENATE PASSED THEIR VERSION OF THE ACCESS TO CARE ACT TODAY THE HOUSE PASSED THEIR VERSION A COUPLE WEEKS AGO.

AND WHAT IS IMPORTANT TO KNOW HERE IS THAT FOLKS UNDOCUMENTED WOULD BE ABLE TO USE THE HEALTH EXCHANGE TO BUY A PLAN BUT THEY WON'T GET SUBSIDIES OR HELP FOR THE GOVERNMENT.

IT'S ALL ON THEIR COST.

THERE IS A PHILOSOPHICAL DIFFERENCE HERE BETWEEN FOLKS ABOUT WHETHER THAT IS THE APPROPRIATE THING TO DO.

SOME IN THE SENATE TODAY REPUBLICANS SAID THIS ENCOURAGES ILLEGAL IMMIGRATION HERE AND DEMOCRATS SAID MORE PEOPLE WITH INSURANCE MEANS LOWER COSTS FOR ALL OF US.

>> Jeff: WE HAVE TO LEAVE IT THERE.

THANK YOU VERY MUCH.

HAVE A GREAT WEEKEND.

>> YOU TOO, JEFF.

>> Jeff: AND YOU CAN READ PAM'S REPORTS AT THE BALTIMORE BANNER.COM.

AND THAT IS "STATE CIRCLE" FOR THIS WEEK.

THANK YOU FOR WATCHING.

WE'LL SEE YOU BACK HERE MONDAY EVENING AT 7:00 P.M. FOR "DIRECT CONNECTION".

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