Gov. Phil Murphy and fellow Democratic leaders in New Jersey announced Tuesday they have reached a deal to legalize recreational marijuana and expunge low-level pot offenses.
Under the legislation, the state would collect an excise tax of $42 for an ounce of the drug, and cities and towns would receive tax revenue for hosting cultivators, wholesalers and retailers.
“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,” Mr. Murphy said.
The bill also calls for setting up a process that would prevent some marijuana offenses from being considered for certain housing, education and occupational licensing purposes.
The governor’s budget estimates that legalization would generate $60 million in state tax revenue for the first six months of 2020, not including $21 million in anticipated administrative costs. The revenue would be dedicated to the state’s general fund.
The deal caps months of haggling among Mr. Murphy and state Senate President Steve Sweeney and Assembly Speaker Craig Coughlin. The governor made it a priority during his first year in office last year, but lawmakers were unable to advance the legislation.
“Getting to this point wasn’t easy,” Mr. Coughlin said. “We negotiated in good faith.”
The legislation also establishes a new commission to regulate the drug. Mr. Murphy would appoint five commission members, two of whom would be recommended by Messers. Coughlin and Sweeney.
While Democrats control the state legislature, it isn’t clear if they have enough votes to pass the bill. Mr. Murphy said at an unrelated news conference that he is working to get it passed through both chambers. “I’m all in to get this over the goal line,” he said.
Kevin Sabet, co-founder of Smart Approaches to Marijuana, a group that opposes legalizing recreational pot, said the legislation is a wrong step for the state.
“Leadership has said repeatedly that they have been caught up with small disagreements over minor details of the bill, but in reality, They still don’t have the votes,” he said. “New Jerseyans don’t want to see the increases in drugged driving, youth exposure and thriving black markets that come with legalization.”
Mr. Sweeney said legalization would help reverse decades of discriminatory enforcement of drug laws that have affected African-American and Hispanic communities.
“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,” he said.