NJ marijuana ‘framework’ bill heads to full legislative vote this week
TRENTON – A bill to establish the NJ marijuana framework has cleared one of its last hurdles and will head to a full legislative vote on Thursday.
The Assembly Appropriations Committee on Tuesday approved the Cannabis Regulatory, Enforcement Assistance, & Marketplace Modernization Act by a 7 to 4 vote along party lines. With Democrats voting in favor and Republicans voting against.
That bill, along with a decriminalization bill that would eliminate all penalties for possession of up to 6 ounces of weed, is required to be enacted in order for the ballot question and constitutional amendment overwhelmingly approved by New Jersey voters to take effect on Jan. 1.
The Senate and Assembly have scheduled full legislative sessions on Thursday. By then, both marijuana legalization bills should pass.
If passed, they will head to Gov. Phil Murphy’s desk for signature.
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“We are participating in a moment that will mark a moment in time as society continues to evolve,” said Assemblyman John Burzichelli, D-Salem, committee chairman. “What we’re moving today and what it would do marries with what the people of New Jersey want.”
If signed into law, the NJ marijuana framework law would establish two taxes on legal weed. Further, including a 7% sales tax. Seventy percent of the revenue from the sales tax would go to municipalities with predominantly Black and brown populations. Areas with disproportionate enforcement of marijuana laws.
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According to an analysis of arrest data by the American Civil Liberties Union of New Jersey, Black people have been more than 3.5 times more likely to be arrested for marijuana possession than white people, despite similar usage rates.
An additional excise tax would be levied on cannabis cultivators and fluctuate depending on the price of cannabis.
If the average price-per-ounce is $350 or more, the bill levies a $10 tax. A $30 tax is levied when the average price-per-ounce is $250 to $350. As well as a $40 tax on ounces between $200 and $250.
If the price drops below $200, the state would levy a $60 tax.
All of the tax revenue from the excise tax would go to those Black and brown communities most affected by the war on drugs.
Social Justice Concerns
But social justice activists remain concerned that while language in the bill is too soft. For example, the Cannabis Regulatory Commission is tasked with allocating legal weed tax revenue to municipalities and recommending how it be spent. Although leaving the final decision up to local governments.
Instead, activists have called for the CRC itself to make specific revenue decisions. As the body will be subject to state transparency requirements.
“We hope to see accountability in the allocation (of legal weed tax revenue) through the budget process,” said Ami Kachalia, a campaign strategist for the American Civil Liberties Union of New Jersey. “Language in the bill allows for hearings through the CRC and we hope to see a more participatory framework going forward.”
And there is still concern that the market for legal weed licenses will be too expensive for Black and brown people. Especially those from the black market, to compete with larger multistate cannabis companies.
Activists such as Nafeesah Goldsmith, of the prisoner advocacy group New Jersey Prison Justice Watch. They have called for some licenses to be set-aside for such “equity applicants.”
“Those with an equity applicant status should receive a myriad of resources and benefits. Including but not limited to business training, grants, low or no interest loans, waived application fees and phased-in licensure fees. This is done to ensure they can access the industry in a way that allows for success,” Goldsmith said.
Posted by Mike Davis Asbury Park Press from app.com on December 15, 2020.
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