MARIJUANA

NJ marijuana legalization: Phil Murphy, legislators reach deal on legal weed industry bill

Mike Davis
Asbury Park Press

TRENTON - Gov. Phil Murphy and legislative leaders have reached a deal on bills that would establish a framework for a legal weed industry, setting up a key vote in the coming weeks. 

In a statement, Murphy, Senate President Stephen Sweeney, Assembly Speaker Craig Coughlin and bill sponsors Sen. Nick Scutari and Assemblywoman Annette Quijano announced the agreement Friday evening. 

“Last month, New Jerseyans voted overwhelmingly in support of the creation of a well-regulated adult-use cannabis market," the group said. "We’re proud to announce today that we’ve reached an agreement on legislation providing the framework for legalization, which is a critical step in reducing racial disparities and social inequities that have long plagued our criminal justice system.

Previously: NJ marijuana will stay illegal after Jan. 1 if lawmakers can't agree on legal weed rules

Marijuana decriminalization deal a 'step closer' to new industry

"This legislation will accomplish our shared goals of delivering restorative justice and ensuring that the communities most impacted by the War on Drugs see the economic benefits of the adult-use cannabis market," the group said. "While there is still much work ahead, we are one step closer to building a new, promising industry for our state."

During the 2020 election, New Jerseyans overwhelmingly voted to legalize weed for recreational purposes, allowing those over 21 years old to possess, use and purchase marijuana from licensed dispensaries. 

How we got here: Voters overwhelmingly pass legal weed ballot question

But while the ballot question changes the New Jersey State Constitution to allow for this, it requires legal weed to be regulated by a Cannabis Regulatory Commission and, in turn, the Legislature. 

Is weed decriminalized in NJ? More to come

For over one month, legislators and activists have sparred — often within their own groups — over what comes next for legal weed. 

The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act would essentially set the rules and framework for regulations for a legal cannabis industry. 

Who's who: With weed legalized, Gov. Phil Murphy names picks for Cannabis Regulatory Commission

That measure has gone through numerous changes within the last three weeks, mostly due to pushback by social justice activists and legislators who say it didn't go far enough to reverse the ills of the nation's long war on drugs.

The initial version of the bill only included the state sales tax of 6.625% on legal weed purchases, as noted on the ballot question. Revenue from that tax would go toward the state government and particularly to reimburse police departments for the costs of training new Drug Recognition Experts to determine if drivers are under the influence of drugs, including marijuana. 

After that pushback, Murphy and Senate President Stephen Sweeney, D-Gloucester, agreed to a deal that increases the sales tax to 7% and allowed the nascent Cannabis Regulatory Commission to institute a flat-fee excise tax on cannabis cultivators that would ensure revenue doesn't dip as the market grows and the price of cannabis falls. 

All revenue from the excise tax would go toward primarily Black communities and organizations serving them, as would 70% of the sales tax revenue. 

Another change in the Senate removed the cap on the number of licenses for cannabis cultivators. The Assembly version of the bill capped the number of growers' licenses at 37 in the first two years.

The other bill, A-1897, would remove all penalties from possession of up to 6 ounces of marijuana, the largest threshold for legal weed among the 15 states where the drug has been legalized.

Six ounces of weed!: NJ weed decriminalization bill takes big step forward

The bill would also provide for a written warning for a defendant's first offense of distribution for under 1 ounce of marijuana. 

The Senate passed the bill by a 29-to-4 vote, with seven other senators not voting on the bill. But it's been held up in the Assembly because of  the last-minute addition of language governing psychedelic mushrooms. 

The Assembly Judiciary Committee on Monday is scheduled to hear a bill that would just handle the mushrooms amendment, in the hopes that the more narrowly focused marijuana bill would secure enough votes for passage.

National weed news:House of Representatives passes marijuana legalization bill

Mike Davis has spent the last decade covering New Jersey local news, marijuana legalization, transportation and basically whatever else is going on at any given moment. Contact him at mdavis@gannettnj.com or @byMikeDavis on Twitter.