BY MICHAEL OLOHAN
OF NORTHERN VALLEY PRESS
TRENTON, N.J.—Leading state Democrats backed off a push to legalize marijuana March 25, as support lacked to pass a new state law—but they vowed to renew the push at some point in the future.
With the postponement due to a lack of support in the New Jersey Senate, the state organization representing New Jersey’s 565 municipalities urged local mayors and officials to look closely at the proposed 175-page legalization bill “to assess what their course of action will be if and when legalization becomes a reality.”
So said State League of Municipalities President Colleen Mahr, Fanwood’s mayor, advising fellow mayors and local officials to use the time allowed by the bill’s delay to study it closely. The League took no official position on legalization.
The League offered an online review of the proposed bill, only released March 18, including local cannabis tax and transfer tax, local ordinances, zoning, and opt-in and opt-out provisions.
Local tax ‘essential’
“Our efforts championing a local tax option to adequately offset costs, safeguarding local planning and assuring social justice are essential for this legislation to advance,” said Mahr, who helped lead a statewide task force of mayors and public officials who reviewed legalization’s impact on New Jersey municipalities.
Although State Senate President Steve Sweeney postponed the vote March 25 due to a lack of 21 votes to pass the bill in the Senate—it apparently had more than 40 votes to pass in the 80-member Assembly—neither chamber voted on the bill as legislative leaders determined the bill would not be approved and able to advance to Gov. Phil Murphy for his approval.
Murphy campaigned on legalizing marijuana during the 2017 election campaign.
The legalization bill was voted out of the Assembly Appropriations Committee and Senate Judiciary Committee March 18 and since then, last-minute revisions, additions and vote-wrangling had occurred in both chambers before the proposed March 25 vote, which ultimately was postponed.
“I’m disappointed,” Sweeney said at a press briefing March 25. “I think we were making headway. I think we learned a few lessons about the way we approached it. If it was easy, every state would have done it this way.”
Sweeney said due to legislators needing to craft a state budget by July 1 and upcoming elections for the full Assembly this fall, it was uncertain when the next vote on possible legalization will occur.
Some published reports indicated that a vote might be forthcoming after budget negotiations wrap up in June—or if time allows—following the fall elections.
The scheduled March 25 vote came after years of lobbying by advocates who charged the state’s drug laws have unfairly targeted minority citizens. In an analysis of 2013 crime stats, the American Civil Liberties Union of New Jersey said that year black New Jerseyans were three times more likely to be arrested for marijuana possession than whites, despite similar usage rates.
The postponed bill included provisions to expedite expungement of marijuana offenses, including a criminal conviction for possession or distribution of up to five pounds.
Some hope state will be second
Had New Jersey approved the legalization bill, it would have become the 11th state to legalize adult-use marijuana, and only the second to do it legislatively.
Only Vermont has legalized marijuana via legislation; the other nine states legalized recreational cannabis via voter referendums.
Also included with the legalization bill were bills to expand the state’s medical marijuana program and reform the state’s expungement process. Both bills were also postponed, though legislators said they would be more likely to pass if separated from the legalization bill.
Assembly Speaker Craig Coughlin said there were more than enough votes for legalization to pass the Assembly—41 are needed in the 80-member Assembly—and noted “we moved closer to the goal than ever before.”
Coughlin said all three bills—legalization, expansion of medical marijuana and expedited expungement—were all postponed due to a lack of Senate votes.
Prior to Monday’s vote postponement, Pascack Press/Northern Valley Press reached out to area legislators, seeking comments and reactions to proposed legalization. Opposition, unanswered questions and uncertainty were much of what we found after reaching out to selected public officials.
Prior to Monday’s postponed vote, District 37 Assemblywoman Valerie Vainieri Huttle termed the legislation as “so many unanswered questions” and said the state should wait unit it can get medical marijuana right before attempting to legalize recreational marijuana.
District 39 Republican Assemblywoman Holly Schepisi joined with Democratic State Senator Ronald Rice in calling for a statewide referendum on legalization, which most legislative leaders, and Gov. Murphy, oppose.
Schepisi said the choice should be left to state residents, noting the extra time between now and November can be used to inform voters about impacts of legalization.
Following the legalization bill’s release, State Sen. Gerald Cardinale (R-Demarest) called out Gov. Murphy.
“Mark my words, you won’t be able to pull onto the turnpike without encountering a drugged driver…we need to think about these problems before rushing toward legalization,” said Cardinale in a statement.
‘Not a single mayor’
Alpine Mayor Paul Tomasko, president, Bergen County League of Municipalities, said that he cannot name any public official in Bergen County that supports local retail recreational marijuana sales.
“I don’t know of a single mayor in this area that favors this [legalization] and I would say that’s where we want to be,” said Tomasko.
3 percent local sales tax
Michael Cerra, assistant executive director, State League of Municipalities, called the proposed legalization “a marginal step in the right direction” in providing more revenues for towns wishing to host any of four cannabis enterprises, including growers, processors, wholesalers or retailers.
The legalization bill allows towns to adopt ordinances to impose a “transfer tax” on cannabis sales: 3 percent on each retail sale; 2 percent on each sale by a cannabis grower or processor; and 1 percent on each sale by a cannabis wholesaler.
Cerra said he did not feel a 3 percent local tax on retail sales is enough incentive to entice many municipalities to open a retail cannabis shop though some municipalities may consider hosting another non-retail type of facility in another area of town to boost tax revenues.
Cerra said many local officials were contacting him on March 25, wary of the bill’s passage and what the legislation contained due to last-minute changes.
“Now is the time to educate ourselves [towns] on this legislation before it gets approved,” he urged. “To a lot of people this all felt rushed because of all the last-minute changes,” Cerra said March 27.
Cerra said he expects towns “to take a look at the product in front of us, it’s a local decision” to opt-in or opt-out. He said he anticipates more towns may hold non-binding referendums to determine where residents stand on allowing various marijuana enterprises.
“I would not be surprised to see a lot more non-binding questions popping up across the state” to get local feedback before legalization occurs, Cerra said.
Even had legislators approved legalization March 25, the industry statewide was not likely to commence until early 2020, after the proposed industry regulatory commission sets statewide rules.
Cerra said representatives from the marijuana industry know certain locations will not be optimal for a marijuana facility, but the tax revenues may be attractive for some to zone specific areas for a future cannabis business.
“And just because you zone for it doesn’t mean it’s going to happen,” said Cerra.
‘Possible property tax relief’
Industry representative Scott Rudder, a lobbyist for New Jersey CannaBusiness Association, said that he anticipates the Legislature to approve legalization soon.
“Towns are going to have to relook at this again,” he said. “Here’s possible property tax relief from local tax revenues,” he noted.
Rudder said every type of cannabis enterprise offers local tax revenues, and towns hosting a business will be eligible for funding for police departments to train local drug recognition experts, which will help police in proving if impaired individuals are driving while under the influence of cannabis.
“You’re denying your residents property tax relief if you opt-out,” said Rudder.
He noted 70 percent of Colorado towns opted-out of hosting a cannabis business when pot was legalized.
Last year, he said, cannabis totaled $1.6 billion in sales in Colorado and those towns lost out on additional revenues that went to towns who opted-in.
The legalization bill authorizes possession of up to one ounce of cannabis by adults (21 and older) and makes possession of larger amounts subject to a disorderly persons offense.
In addition, it sets standards for a New Jersey cannabis industry, sets up a New Jersey Cannabis Regulatory Commission, and offers opportunities for minority owners and stores in so-called “impact zones” in Newark, Trenton and Camden.
The bill taxes cannabis at $42 per ounce to be paid by marijuana cultivators and passed on to consumers—funds to be dedicated for police officer DRE training courses and expedited expungement costs.
Also, the legislation provides for expedited expungement of past convictions for pot possession or distribution up to 5 pounds, and applies to individuals in prison, on parole, or in supervised programs.