BY MICHAEL OLOHAN
OF NORTHERN VALLEY PRESS
Both chambers of the state Legislature advanced a bill Nov. 26 to legalize possession of small amounts of marijuana for adults, while regulating and taxing its sale.
Critics—including a vocal group of local mayors and the New Jersey League of Municipalities—worry small towns will bear the costs of legalization.
Other statehouse measures also advanced last week, one to make more drug-related crimes eligible for expungement, and another to expand the state’s medical marijuana program.
The bill to legalize marijuana could get a full vote on Dec. 17, though sponsors were uncertain whether it had enough support to pass. Before Gov. Phil Murphy can fulfill his pledge to sign a legalization bill, it must be approved by the 40-member state Senate and 80-member state Assembly.
Political squabbles over state tax rates on new marijuana businesses have dominated the debate this year, along with debates over social justice issues such as expungement of criminal records for past low-level possession convictions.
Also at stake are efforts to carve out opportunities for undeserved communities, including minorities and veterans, in future statewide cannabis enterprises.
Local officials say any successful legalization bill should include safeguards for local taxpayers, including: an increase of municipal excise tax from 2 percent to 5 percent on marijuana enterprises; funding for training of police Drug Recognition Experts to enforce safe driving rules; plus directing state tax revenues to local police, health, and safety needs.
A 2 percent local excise tax is insufficient for local officials, the New Jersey State League of Municipalities said in a memo to mayors. The league is advocating for an excise tax of up to 5 percent.
Meanwhile, state leaders have sparred over the bill’s 12 percent state tax rate, which Murphy originally wanted to incrementally reach 25 percent.
Murphy has declined to indicate whether he will support a bill with a less than 25 percent state tax rate, according to media reports. State Senate President Steve Sweeney said he will not post any legalization bill for a vote without Murphy’s support.
While marijuana legalization is expected to be a financial windfall for the state, municipalities worry it could mean another unfunded mandate.
“We have a very strong overarching concern with whether revenues to local governments will offset all the costs involved,” said Michael Cerra, assistant executive director of the state League of Municipalities. “But what you see right now may not be what you get—stay tuned.”
Growing public support, an unclear social impact, and disproportionate enforcement
A late October Rutgers University statewide poll of 1,006 adults showed that 58 percent of residents supported legalization, while 37 percent opposed legalization.
As for being a host for a marijuana business, 64 percent said they “would not be bothered if a store selling marijuana opened in their town.”
Currently, no local communities have expressed an interest in accepting or zoning for a cannabis-related enterprise.
Various estimates on potential annual state tax revenues from legalization range up to $200 million from an industry that some also estimate could top $1 billion in cannabis-related revenues annually.
While the American Civil Liberties Union of New Jersey said black residents are three times more likely to be arrested for marijuana possession than white residents—despite similar usage rates—others are arguing that marijuana is simply unsafe.
State Sen. Gerald Cardinale (R-Demarest) testified last week that legalization of marijuana will have unintended consequences on New Jersey’s youngest residents and its culture at large.
“Reliable scientific studies have determined, and repeatedly confirmed, that of those who merely experiment with marijuana for the first time, 9 percent will become addicted,” Cardinale said. “Research also shows that 25 to 50 percent of daily marijuana users will also develop an addiction to the drug.”
One local mayor wondered what type of message this effort sends to impressionable young residents.
“We spend time telling our kids what to avoid and then they see legislators coming up with plans to legalize what we’ve been telling them to avoid for all these years,” said Harrington Park Mayor Paul Hoelscher.
Another local mayor said he was very conflicted on the issue, and worried that the increased revenues may also come with increased costs.
“We’re not thinking whether this is a positive for society,” said Tenafly Mayor Peter Rustin. “I question its benefits.”
Hillsdale Mayor John Ruocco said his borough is among the many considering preemptively prohibiting recreational marijuana within its borders.
“I don’t think Hillsdale residents want their town to become a center for this type of drug use,” Ruocco said.
While many understand that medical marijuana is increasingly being shown to have legitimate uses, many local officials are drawing the line at adult recreational use, said Alpine Mayor Paul Tomasko.
In Massachusetts, which recently legalized marijuana, communities there saw long-lines of customers disrupting neighborhoods and traffic flow and catching local police off guard when stores recently opened for the first time, news reports said.
“They took the plunge…and it’s unpredictable what types of situations will occur once this happens,” said Tomasko.
Tomasko said that while there are harmful effects of marijuana, if the legislation passes it’s important to ensure low-level possession convictions can be expunged.
State Sen. Ronald Rice (D-Essex) put in stark terms how legalization is viewed by his constituents during the state house debate.
“It’s not about social justice, it’s about money for white investors,” said Rice, calling the bill “a slap in the face to people like me and people of color.”
The American Civil Liberties Union has reported that New Jersey arrested 24,067 people for marijuana possession in the year 2013—a 26 percent increase from 2000, when the state arrested 19,607 people. During that time frame, 280,000 total people were arrested.
“New Jersey wastes more than $143 million per year to enforce our marijuana possession laws,” the ACLU-NJ said. “Adding up the cost of police, courts, and corrections, New Jersey expends tremendous resources to implement and enforce marijuana prohibition. Indeed, throughout the past decade, New Jersey has spent more than $1 billion to enforce these laws. These are resources that could be invested in treatment, education, prevention, or other community needs.”