NJ marijuana legalization clears first hurdle after legal weed vote

TRENTON — New Jersey is officially one step closer to legal weed after a committee of 26 legislators approved of a bill to regulate, tax and legalize marijuana.

The Senate budget committee approved the bill by a 7 to 4 vote, with two abstentions, largely along party lines. The Assembly budget committee cleared the bill with seven legislators voting in favor.

“This will stimulate the economy of New Jersey like nothing ever has before,” said bill sponsor Sen. Nicholas Scutari, D-Union. “We’re on the precipice of a historic event here, starting something and creating jobs like no other Legislature has done before. We have that opportunity.

He added: “We have to take our head out of the sand. We have to realize that what we tried to do simply isn’t working.”

The next step is floor votes in both chambers — which could come as soon as next month — followed by Gov. Phil Murphy signing it into law. 

Murphy, however, has yet to endorse the bill despite his general support for legalization. At an unrelated news conference Monday morning, the governor declined to comment on the specifics of the legislation, offering only that he was “encouraged that it’s moving in the right direction.”

“It’s too early to tell as it relates to exactly the elements that ultimately are written there,” said Murphy, who has been at odds with lawmakers over how to regulate the new industry and how much to tax it. “We’ll see, but happy to see the progress.”

It’s also not clear if the legal weed bill has enough votes in either the Senate or Assembly to pass. While the issue has largely been played out along party lines, a number of notable Democrats are against marijuana legalization.

“I knew this would be the beginning of a debate. It may not end the process but it will start the process,” said Sen. Paul Sarlo, D-Bergen, who abstained from a vote. “I just don’t believe we are there yet.”

Much of the Statehouse — from the meeting rooms and spilling into the hallways — was packed nearly wall-to-wall with activists who have marijuana on the mind.

“We stand on the verge a major change here in New Jersey,” said Assemblyman John Burzichelli, D-Gloucester, who chairs the Assembly Budget Committee. “It’s been a long road but today we’re on the verge of something very significant, and it’s not something that’s been done haplessly or recklessly. As we go through this bill, there’s a great deal of thought reflected.”

The USA TODAY NETWORK New Jersey will be live in Trenton covering the proceedings, so refresh this page or bookmark it for updates throughout the day.

Sen. Ronald Rice, D-Essex, has been a vocal opponent of legal weed since discussion around the issue first hit a fever pitch. He called the bill a “slap in the face to people of color” that failed to take into account any regular person living in an urban area.

“No one is actually going out to talk to the daycare and preschool parents. The people [in the Statehouse] are the people who have been talking over and over and over again,” Rice said. “The endgame of the legalization of recreational marijuana is making more money for white investors.”

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Rice has worked alongside New Jersey Responsible Approaches to Marijuana Policy, a state chapter of Smart Approaches to Marijuana, a national advocacy group protesting against marijuana legalization. Former U.S. Rep. Patrick Kennedy III, D-Rhode Island, also testified on the group’s behalf.

“How can it help us to have another drug on the market that’s going to be commercially promoted to get more people to use it,” Kennedy said in an interview. “I just think it’s bad public policy. I’m a father of five children and I don’t want this stuff actively promoted. It’s the new big tobacco.”

Ocean County Sheriff Michael Mastronardy said that New Jersey departments may have to search for potential officers over state lines, as it’s already hard to “get credible people into our law enforcement” ranks.

And Monmouth County Sheriff Shaun Golden said there were unforeseen costs, as local municipalities would have to hire more Drug Recognition Experts — specially-trained police officers dispatched to identify if a driver is under the influence of drugs — and assign officers to search through records by hand as part of the legislation’s overhaul of the expungement process.

“Money has to be addressed down at the law enforcement level, to allow us to train and hire staff,” Golden said. “All of your local municipalities will have to cover some of that cost. … It’s the closest thing we have to detection. This will incur costs for the local municipalities that we have to cover while officers are being trained.”

Here’s what you need to know going into the New Jersey legal weed committee hearings today: 

What’s in the bills?

There are three marijuana bills up for discussion before the budget committees on Monday. 

DIVE IN: An in-depth look at the marijuana bills up for a vote

All eyes will be on bill S-2703, which would make it legal to possess up to 1 ounce of marijuana and consume it at home or in specifically designated areas. It establishes a 12 percent tax rate on marijuana purchases, but municipalities could also impose a 2 percent tax of their own.

The bill also calls for an electronic expungement filing system for marijuana crimes that would now be considered legal.

A combined medical marijuana expansion bill would increase the monthly medical marijuana cap from 2 ounces to 3 ounces per patient, legalize edible forms of medical marijuana for adults and jump start the permitting process for new medical marijuana dispensaries, manufacturers and cultivators.

LOCAL: Brick vote on medical marijuana delayed til 2019

A third bill, S-3205, focuses solely on expungements. If signed into law, it would make more crimes eligible for expungement — including offenses involving controlled dangerous substances — and cut the wait time down to five years. It also includes a “clean slate” process that will wipe away all offenses at once for anyone who has a clean record for 10 years after their last offense. Many more serious crimes would not be eligible.

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What makes NJ stand out? 

If the marijuana legalization bill is signed into law as written, the Garden State would have one of the lowest effective tax rates in the country. Oregon, California, Michigan and Massachusetts all impose excise, sales or other taxes that add up to more than 15 percent. Other states, such as Washington, Nevada and Colorado have effective tax rates of at least 25 percent.

Dispensaries would also be allowed to open separate “consumption areas” where marijuana customers can consume the product, as long as the municipality approves them. This has been an area of concern in other legal weed states, where marijuana users are only allowed to consume the drug at home.

HIGH HOPES: The cannabis clubs and marijuana buses that make legal weed NJ’s next tourist trap

And New Jersey would be just the fourth state with legal weed delivery services, allowing dispensaries to invest in secure fleets of delivery vehicles or hire independent vendors.

The rules are strict, so this wouldn’t be the Lyft or DoorDash of marijuana.

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Angela Colandrea of Sayreville plans to enter the cannabis business with a delivery service called, ‘Weed on the Way’ Staff video by Bob Karp

What actually happens in a committee hearing?

First, the committee will hear from a litany of people who will offer a few minutes of testimony — usually reading a written statement — in support or opposition of the legal weed, medical marijuana and expungement bills. 

Those testimonies may be followed up with questions or comments from legislators. 

After everyone’s been heard — or the committee chairs rule they’ve heard enough — it will be time for a vote. Most legislators will offer a few minutes of reasoning before casting their vote, so we’ll know exactly why they’re voting for or against legal weed.

What’s left to figure out? 

There are two main sticking points, largely between the Legislature and Murphy’s office.

While legislators in favor of legal weed have agreed to 12 percent tax rate, Murphy’s administration expected a 25 percent tax rate in its initial 2018-19 state budget. It’s not clear if the governor would support a bill that includes a tax rate less than half the one his administration planned for.

MORE: Murphy, lawmakers hashing out marijuana legalization bills

The second issue is the creation of a Cannabis Regulatory Commission. According to the legal weed bill, this five-member panel would oversee cannabis in New Jersey, from sales to licenses to violations and regulations.

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According to Politico, Murphy’s office is against the creation of such a panel because it would take “power away from the [governor’s office] so they can control the industry.”

“I don’t think we’re on the same page with the administration,” Senate President Stephen Sweeney, D-Gloucester, said last week, adding that the two sides are “98 percent” there. “We’ve talked about this for too long, and we’re ready to start the process.”

What’s the status of marijuana legalization and what will it mean for your community? Join our Facebook group, Let’s Talk About Marijuana at fb.com/groups/WeedNJ to discuss what’s going on in your town, the world of cannabis and with the social justice issues at the center of it all.

Mike Davis; @byMikeDavis: 732-643-4223; mdavis@gannettnj.com

Nicholas Pugliese; pugliese@northjersey.com

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