TRENTON, N.J. (AP) — New Jersey lawmakers on Thursday advanced legislation to establish a new recreational marijuana marketplace, which voters overwhelmingly approved on the ballot earlier this month.
The Assembly Appropriations Committee passed the measure on Thursday, and the Senate Budget Committee is set to take up the legislation later in the day.
Lawmakers have amended the measure since it stalled last week. Among the key changes in the bill are the addition of an excise tax, which applies to specific goods or services and which consumers ultimately pay. The bill calls for a tax of one-third of 1 percent on marijuana sales. The state's 6.625 percent sales tax will also apply.
The new, amended measure also allows the Cannabis Regulatory Commission to levy an optional additional excise tax. The proceeds would go toward "social equity" programs aimed at alleviating racial disparities, stemming from decades of Black residents being likelier to face marijuana-related charges than white people.
Such funding was explicitly sought by the state's Legislative Black Caucus and other advocates. Assemblymember Jamel Holley, a member of the caucus, said the measure gives some in New Jersey the chance for a clean slate.
"A key component of cannabis legalization is addressing social justice concerns," he said in as statement. "The fact that Black New Jerseyans are 3 or 4 times more likely to be arrested on cannabis charges has contributed to the disenfranchisement of (Black) communities."
But some advocates like the Rev. Charles Boyer, the pastor of Bethel AME Church in Woodbury, called on lawmakers to require the additional excise tax, instead of making it optional.
"Basically, it gives us a tremendous amount of beautiful window dressing," he said during Thursday's hearing, adding that the tax was not yet a guarantee.
It's not clear exactly when the marketplace will be up and running.
The legislation calls for lengthening the transitional period until a full, recreational marketplace is in place from 18 months to two years. The main significance of the period is that it caps the number of cultivator licenses at 37, up from 24 in an earlier version.
If the optional excise tax were applied, it will be tethered to the price per ounce of marijuana. If the price is $350 or more, the tax would be $10 per ounce, climbing in intervals to $60 an ounce if the price is under $200 an ounce.
The measure also calls for the regulatory commission to give priority to businesses owned by minorities, women and disabled vets who seek licenses.
The bill also changes the state's criminal laws, making it lawful to possess up to 1 ounce of marijuana. Public consumption would not be allowed under the measure.
If approved in committee, the measure would go next to the floors of the Democrat-led Assembly and Senate. Democratic Gov. Phil Murphy supports legalization, though it's unclear if he'd sign the measure currently before lawmakers.
"The Administration continues to engage in productive conversations with the Senate President and the Speaker to ensure that communities who have been disproportionately impacted by prohibition see the economic benefits of adult-use cannabis legalization," said Murphy spokesperson Jerrel Harvey.
New Jersey voters approved a constitutional amendment on Nov. 3 with about 67 percent voting to legalize recreational marijuana for those 21 years and older. The measure doesn't go into effect until Jan. 1, and the state attorney general has warned residents it's not yet legal to possess the drug.
