New Jersey Recreational Marijuana Bill Headed Towards Gov. Phil Murphy

A New Jersey bill that could set up the legal recreational marijuana industry in the state in the new year made progress through the state legislation system Monday. The Democrat-led Senate Judiciary Committee will send the bill to the floor later this week for a vote, where it’s likely the Democrat-led Assembly will approve the measure and send it to Gov. Phil Murphy’s desk, NBC10 reported. The bill is up for a vote Thursday, along with a separate bill that decriminalizes possession of up to 6 ounces of marijuana.

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On December 17, 2020, the New Jersey Assembly and Senate voted in favor of legislation that allows regulating and launching an adult-use marijuana market for 2021, making it one of the largest markets on the East Coast. Projections of sales will approach $1 billion in a few years.

Assembly members voted 49-24-6 for the legislation, while the Senate voted 23-17 in favor of adult-use marijuana.

Senate President Steve Sweeney, Senate Judiciary Committee Chair Nicholas Scutari and Senator Teresa Ruiz state that the tax revenue will be dedicated to repairing heavily impacted communities. If the bill is signed into law, the legal marijuana framework law would establish two taxes, including a 7% sales tax.

About 30 percent of recreational marijuana sales tax revenue would support the operations of the Cannabis Regulatory Commission. The remaining 70 percent of the sales tax revenue would assist the communities that were hurt most by marijuana laws.

However, the decriminalization bill does not lower the penalties for growing cannabis, even as medical marijuana patient advocates demand a program to allow patients to grow up to six plants.

The tax bill will place a cap on the number of cannabis cultivator licenses at 37 during the first two years. This can raise a concern as many activists believe that it will increase competition and price out local entrepreneurs.

Legislative leaders realized they will most likely have to pass additional bills in the new future in order to solidify unclear language or add new sections to the bills

The bill will now go to Gov. Phil Murphy for his signature in order to become law.