After months of debate over the nuances of marijuana legalization legislation, New Jersey Gov. Phil Murphy (D) and leaders in the legislature have reached a broad agreement.
In a press release on Tuesday, the governor, Senate President Steve Sweeney (D), Assembly Speaker Craig Coughlin (D), Sen. Nicholas Scutari (D) and Assemblywoman Annette Quijano (D) announced the agreement and said that text of a bill to legalize cannabis for adult use will be released “in the coming days.”
That’s a welcome development for advocates, who had the benefit of a pro-legalization governor but worried that his concerns about aspects of legalization such as the tax rates and regulatory structures might derail the reform effort.
“Legalizing adult-use marijuana is a monumental step to reducing disparities in our criminal justice system,” Murphy said. “After months of hard work and thoughtful negotiations, I’m thrilled to announce an agreement with my partners in the Legislature on the broad outlines of adult-use marijuana legislation.”
I’m thrilled to announce an agreement with my partners in the Legislature – @NJSenatePres, @SpeakerCoughlin, @SenatorScutari and @AnnetteQuijano – on the broad outlines of legislation to legalize adult-use marijuana.
— Governor Phil Murphy (@GovMurphy) March 12, 2019
“I believe that this legislation will establish an industry that brings fairness and economic opportunity to all of our communities, while promoting public safety by ensuring a safe product and allowing law enforcement to focus their resources on serious crimes,” he said.
While Murphy initially called for a much steeper tax rate than his counterparts in the legislature, a compromise was reached to tax cannabis by weight, rather than by price. Under the agreement, there will be a $42 per ounce excise tax as well as additional local taxes for municipalities that opt to allow manufacturers, wholesalers or retailers.
In his annual budget proposal last week, the governor estimated that the state would collect $60 million in marijuana tax revenue for the 2020 fiscal year.
The agreement today on legalizing adult-use marijuana:
• Reduces disparities in our criminal justice system.
• Establishes an industry that brings opportunity to all communities
• Ensures a safe product
• Allows law enforcement to focus resources on serious crimes
— Governor Phil Murphy (@GovMurphy) March 12, 2019
“This plan will allow for the adult use of cannabis in a responsible way,” Sweeney said of the new deal. “It will create a strictly regulated system that permits adults to purchase limited amounts of marijuana for personal use. It will bring marijuana out of the underground market so that it can be controlled, regulated and taxed, just as alcohol has been since the end of Prohibition. This plan will also advance important social justice reforms to help reverse the discriminatory impact that drug laws have had on diverse communities.”
We’ve come to an agreement on the legalization of marijuana which marks a historic day in New Jersey and a historic day in the struggle to mitigate the impact of the war on drugs. Read more here: https://t.co/STYdK8dJ50
— Steve Sweeney (@NJSenatePres) March 12, 2019
Social equity will be a major feature of the legalization bill, the lawmakers emphasized. The legislation will establish a system to expedite the clearing of records for prior low-level cannabis convictions and also create a “virtual expungement process” that would prevent marijuana offenses from affecting things like education, house and occupational licensing.
“As much as we would want this to be automatic, it is functionally not possible,” Murphy said in response to questions about expungements at a press conference on unrelated gun issues on Tuesday. “You have an affirmative action an individual has to take, or in the absence of that a virtual expungement, meaning until that person takes that action, that crime cannot impair their ability—just as race, gender, religion cannot impair your ability—to get a job, to get an education, to get a license, et cetera.”
“It will address enormous social injustice in our system. And while that appears to be under the justice category, it has enormous implications for both the individuals who are finally freed from this prior charge but also for the rest of us. The economic impact, the societal impact, not just on those individuals, but on the rest of us, is potentially enormous.”
The joint announcement from Murphy and lawmakers said that “there are a number of provisions that aim to ensure broad-based participation in the industry for Minority and Women-Owned Business Enterprises (M/WBEs), low- and middle-income individuals, and disadvantaged communities across the state.”
“The agreement reached to legalize adult-use cannabis is the result of incredibly hard work by many people over many months,” Coughlin said. “Getting to this point wasn’t easy. We talked and we negotiated in good faith, but most importantly, we listened.”
“I want to thank Governor Murphy and Senate President Sweeney for their tireless efforts and willingness to compromise so we could put forth the most responsible legislation possible,” he said. “I believe this new, regulated industry will help boost our economy, but I’m particularly proud of the critical social justice components included in the bill.”
The statement from Murphy and the lawmakers doesn’t mention whether allowing people to grow their own marijuana at home is part of the deal.
Under the agreement, the state’s legal marijuana program would be regulated by a five-member Cannabis Regulatory Commission. Three of the members will be appointed by the governor without being subject to Senate confirmation, and two would be recommended by Sweeney and Coughlin.
“The prohibition on marijuana has long been a failed policy,” Scutari said. “This plan will bring an end to the adverse effects our outdated drug laws have had on the residents of our state.”
“As a regulated product legalized marijuana will be safe and controlled,” he said. “It is time to legalize adult use marijuana in New Jersey and this is a well crafted legal reform that will advance social policy in a fair and effective way.”
More details and actual legislative language are still to come, but the announcement offers the clearest look yet at how New Jersey’s legal cannabis system could take shape.
“This was not easy. We’re standing up an entire new industry, so not surprisingly, it took time,” Murphy said at the press conference. “I got there via the notion that in the yawning gaps of social injustice in our state, particularly among peoples who are incarcerated across racial lines.”
Coughlin predicted that a vote on a legalization bill could come on March 25.
— David Cruz (@CruzNJTV) March 11, 2019
Murphy, meanwhile, predicted that legal cannabis sales would be an “early next year reality.” He said it’s “too early for me to tell” whether there’s enough support to pass legalization in either chamber, but “I’m all in to help them get this over the goal line.
“We have to get the votes now. The Senate president, the speaker, myself, their teams—we have to collectively get the votes we need both in the Senate and the Assembly,” he said. “We’ll be working on this jointly.”
The news of a deal in New Jersey comes one day after Gov. Andrew Cuomo (D) of neighboring New York announced that he is not optimistic about the chances of including marijuana legalization in his state’s annual budget this year, as he initially proposed. He and lawmakers are saying that they still plan to pursue the issue in separate legislation, however.
Photo courtesy of Phil Murphy.
Congressional Committee Asks JUUL For Documents On Marijuana Partnerships
Is the e-cigarette company JUUL planning on expanding its stake in the marijuana industry?
That’s one question the chair of a congressional subcommittee asked the company in a letter concerning JUUL’s role in the “youth e-cigarette epidemic” earlier this month.
Lawmakers have frequently criticized JUUL for making products—specifically flavored e-cigarette cartridges—that allegedly appeal to young people at a time when rates of cigarette use are steadily declining. But while JUUL was developed by the cannabis vaporizer company PAX, it hasn’t announced plans to further partner with marijuana companies.
Rep. Raja Krishnamoorthi (D-IL), who chairs the House Subcommittee on Economic and Consumer Policy, apparently sees the possibility on the horizon, though.
In a letter sent to JUUL on June 7, the congressman said his panel was investigating youth e-cigarette usage and, specifically, how the company’s marketing tactics might be exacerbating the issue. He requested documents on everything from clinical trials on how JUUL devices divert people away from traditional cigarettes to communications on the company’s rationale for the nicotine concentration of JUUL pods.
Tucked within the extensive request is a question about potential marijuana partnerships. Krishnamoorthi asked for:
“All documents, including memoranda and communications, referring or relating to proposals, plans, and/or intended partnerships or collaborations between JUUL and any cannabis-related companies, including but not limited to Cronos Group.”
It’s not clear where the Cronos-specific mention comes from, but the company has perviously caught the interest of the tobacco industry. The maker of Marlboro cigarettes, Altria Group, invested almost $2 billion in the Canada-based cannabis company in December. Two weeks later, Altria invested $13 billion in JUUL.
Marijuana Moment reached out to JUUL, Cronos and Krishnamoorthi’s office for comment, but representatives did not respond by the time of publication.
If a partnership does emerge, it would likely be met with some controversy, as opponents and proponents of marijuana reform alike have long expressed concern that the tobacco industry would take over the cannabis market and commercialize it in a way that mirrors how it peddled cigarettes.
Of course, given that tobacco use is declining and tobacco companies generally have the infrastructure that would make a pivot to cannabis relatively simple, such a partnership would not be especially surprising.
Senate Majority Leader Mitch McConnell (R-KY) has made the case several times that tobacco farmers in his state could leverage the federal legalization of industrial hemp and its derivatives by growing the crop to offset profit losses from declining tobacco sales.
Read Rep. Krishnamoorthi’s full letter to JUUL below:
2019-06-07.Krishnamoorthi t… by on Scribd
Photo courtesy of Wikimedia.
New York Lawmakers Might Actually Vote On Marijuana Legalization This Week
With just days left before the end of the legislative session, efforts to legalize marijuana in New York have been revived, with a possible vote this coming week.
Though momentum to pass a legalization measure seemed to largely die off after lawmakers in neighboring New Jersey announced they wouldn’t move forward with plans to end cannabis prohibition through the legislature, advocates are increasingly optimistic that a deal in the Empire State is imminent.
Democratic members in both the Senate and Assembly held conferences last week to discuss details of the legislation. Spectrum News reported that the meetings went well, with members indicating that there’s support for the measure.
That’s just one of several positive signs that a proposal many observers thought was dead for the year has new life.
On Saturday and Sunday, staff for legislative leaders from both chambers and Gov. Andrew Cuomo (D) met to negotiate provisions of a revised legalization plan.
Source says three way talks on marijuana taking place today in Albany among staff of two legislative leaders and @NYGovCuomo
Final bill expected to be posted Sunday night
— Zack Fink (@ZackFinkNews) June 15, 2019
On Wednesday, an earlier Senate version of the bill was assigned “same as” status in the Assembly version. That means the current proposals in each chamber lined up with identical language and is considered to be an indicator that the legislation could pass.
— Mike Baggerman (@MikeBaggerman) June 14, 2019
Assembly Speaker Carl Heastie (D) said on Friday that his party has yet to determine whether they’ll bring the bill to the floor, but he added that “I think there is support in the conference.”
Assembly Speaker Carl Heastie told reporters his conference hasn't made a decision yet on whether to put a bill legalizing marijuana on the floor for a vote.
"We haven't made a final decision yet, but I think there is support in the conference," he said.
— Jon Campbell (@JonCampbellGAN) June 14, 2019
He also characterized the window of time until the end of the session on Wednesday as “an eternity.”
Assembly Speaker Carl Heastie says there is no final determination on a marijuana legalization bill, but notes there is “an eternity” between now and the end of session on Wednesday.
— Nick Reisman (@NickReisman) June 14, 2019
Cuomo, who said late last month that passing legalization remains a top 10 priority, has said that lawmakers who fail to approve items on his agenda, including ending cannabis prohibition, “should all be primaried, because that is a failure of a basic progressive agenda.”
On the flip side, the chairman of New York’s Democratic Party said earlier this month that if the Senate approves the legalization bill, they run to risk of alienating voters in certain areas such as Long Island and upstate New York. But that argument neglects to account for recent polling that shows voters in those regions strongly support legalization.
Notably, the measure’s most vocal opponents with the anti-legalization Smart Approaches to Marijuana have been sending email blasts in recent days urging their supports to call senators and voice opposition to the bill, giving the impression that the group is anticipating a vote.
Assembly Majority Leader Crystal Peoples-Stokes (D), sponsor of the legalization legislation, seemed to confirm that suspicion on Friday, stating that after “conversations with my co-sponsor and colleague in the Senate, I am even more confident of a path for victory.”
.@CPeoplesStokes on status of marijuana legislation: "After conversations with my co-sponsor and colleague in the Senate, I am even more confident of a path for victory."
— Yancey Roy (@YanceyRoy) June 14, 2019
But despite that confidence, the fate of legalization in New York remains murky. An analysis earlier this month found that legalization was two votes short of a needed majority in the Senate.
Meanwhile, a number of key elected officials are calling on the governor and lawmakers to not only push legalization over the finish line but to include certain key provisions in the final legislation.
State Attorney General Letitia James (D) sent a letter urging that the bill expunge prior cannabis records.
“Before we create a booming business for legal marijuana, we must provide relief to those individuals that have paid much more to society than what was due,” she wrote.
Legalizing marijuana is a racial & criminal justice imperative. If we truly want a more fair system, we must ensure that those who were unjustly harmed be given a clean slate.
That means providing full expungement for those convicted for non-violent marijuana offenses. https://t.co/jt8lEkrnz7
— NY AG James (@NewYorkStateAG) June 16, 2019
New York City Mayor Bill de Blasio (D), a 2020 presidential candidate, also pushed for expungements and said in a Twitter thread that legalization should “empower local business and not big corporations.”
With only a few days left this session in Albany, we have a small window to legalize marijuana the RIGHT way.
— Mayor Bill de Blasio (@NYCMayor) June 16, 2019
We can right the wrongs of the past. We can bring fairness to communities of color. We can empower local business and not big corporations.
We have to keep the focus and bring this home.
— Mayor Bill de Blasio (@NYCMayor) June 16, 2019
And the Manhattan and Albany County district attorneys co-authored an op-ed calling leaders to “correct staggering inequities and promote public safety by passing” legalization.
DA Vance, @AlbanyCountyDA: "In the final days of session, Gov. Cuomo and state legislators must correct staggering inequities and promote public safety by passing the Marijuana Revenue and Taxation Act." #MarijuanaJustice ⚖️ @DrugPolicyOrg https://t.co/ESuMjAR03q
— Cyrus Vance, Jr. (@ManhattanDA) June 14, 2019
The Buffalo News reported on Sunday afternoon that there were still a number of outstanding issues left to be settled between lawmakers, including whether or not home cultivation of cannabis would be allowed, how tax revenue would be allocated and whether localities would have to proactively opt in to allowing marijuana businesses or if there would instead be an opt out provision for those wanting to ban cannabis commerce.
Marijuana Update: Talks continue in Albany at this hour, with one insider describing it’s chances as “50/50.”
At issue is where the revenue from legalization would go.
Source says @NYGovCuomo and legislature disagree on who is most in need.
Others say Cuomo wants his bill only.
— Zack Fink (@ZackFinkNews) June 17, 2019
The session ends on Wednesday, and so far no vote has been scheduled in either chamber.
Meanwhile, lawmakers early on Monday morning filed what appears to be backup legislation to expand the decriminalization of marijuana and to provide a process to expunge or vacate prior cannabis convictions. And others support putting legalization on the ballot through a referendum that voters can decide on.
The situation is very fluid, and over the next few days advocates will be stepping up the push for action in Albany. On Sunday, they held a rally outside Cuomo’s Manhattan office.
How many NY dads have been criminalized & separated from kids bc of broken pot laws?
— VOCAL-NY (@VOCALNewYork) June 16, 2019
This post has been updated to include the latest developments as well as comment from a number of elected officials.
Photo courtesy of Philip Steffan.
Texas Governor Signs Bill To Expand State’s Medical Marijuana Program
The governor of Texas signed a bill into law on Friday that significantly expands the state’s medical cannabis program.
The legislation, which was overwhelmingly approved by lawmakers last month, adds multiple medical conditions to the list of disorders that qualify patients of low-THC marijuana. Currently only patients with intractable epilepsy qualify under the CBD-focused program.
New qualifying conditions include epilepsy, multiple sclerosis, terminal cancer, autism, spasticity and amyotrophic lateral sclerosis.
Gov. Greg Abbott (R) signed the bill with little fanfare.
Reform advocates said the legislation is a big step in the right direction, even though it doesn’t go as far as they’d hoped. A 0.5 THC cap on marijuana products remained in the bill, for example, and a section that would have established a research program to study the therapeutic potential of cannabis was removed.
“Cannabis is effective medicine for many patients suffering from debilitating medical conditions,” Heather Fazio, director of Texans for Responsible Marijuana Policy, told Marijuana Moment. “HB 3703 represents a positive step toward a functional medical cannabis program, but sadly, it still leaves behind millions of Texas families that could benefit from legal access.”
Also this legislative session, the House of Representatives approved bills to more comprehensively expand the medical cannabis program and to decriminalize marijuana possession, but they died in the Senate.
Abbott signed a hemp legalization bill earlier this week.
Photo courtesy of Brian Shamblen.