New Jersey Voters Approve Recreational Marijuana Legalization

In a landmark decision, New Jersey voters have given their nod to a constitutional amendment legalizing cannabis, sparking interest from neighboring states such as New York.

After numerous legislative setbacks, New Jersey residents endorsed the recreational use of marijuana on Tuesday, highlighting concerns over the disproportionate number of arrests among minority communities.

The ballot measure, as anticipated, passed with a significant majority, based on initial reports from The Associated Press.

This approval paves the way for New Jersey authorities to embark on the intricate task of formulating regulations for cannabis regulation, testing, and licensing. This includes determining the allocation of licenses and recipients.

Furthermore, it places added pressure on neighboring states like New York and Pennsylvania, urging legalization supporters within their legislative bodies to act swiftly to avoid falling behind New Jersey in what is projected to be one of the nation’s largest marijuana markets.

State Senator Liz Krueger of New York, sponsor of a legalization bill awaiting action in Albany, views the “yes” vote as a potential catalyst for Governor Andrew M. Cuomo and lawmakers to overcome years of deadlock.

“I’m rooting for New Jersey,” said Ms. Krueger, a Manhattan Democrat, “and hoping it spurs us into action.”

Arizona and Montana also passed measures to legalize recreational marijuana, while South Dakota voters faced a similar decision on Tuesday. Should these initiatives succeed, one-third of the nation will soon reside in areas where non-medical marijuana use is legal, eight years after Colorado and Washington led the way.

The approved New Jersey question proposes a 6.625 percent state tax on marijuana sales to individuals aged 21 and above, with municipalities authorized to levy an additional 2 percent tax. However, most implementation specifics must be hashed out by the Legislature and a newly-formed Cannabis Regulatory Commission, which currently has one appointed member.

Massachusetts, for instance, required two years from voter approval of non-medical marijuana use to the opening of its first legal dispensaries.

The potential for increased tax revenue and job creation may serve as powerful incentives for expedited action in New Jersey, a state grappling with pandemic-induced budget shortfalls. Once operational, the measure is forecasted to generate approximately $126 million annually.

State Senator Nicholas Scutari, a vocal advocate for marijuana legalization, is finalizing a bill to allow the state’s nine existing medical marijuana providers to sell surplus cannabis to recreational consumers.

“We anticipate swift progress with enabling legislation, permitting medical marijuana dispensaries to cater to the general public immediately,” said Mr. Scutari, a Democrat representing Union County. “We’re extending a warm invitation to New York residents.”

Proponents of the measure cite stark differences in arrest rates as a primary justification for amending drug laws. In New Jersey, Black individuals are over three times more likely than their white counterparts to face marijuana possession charges, despite similar usage rates—a discrepancy termed a “colossal waste of resources and lives” by Mr. Scutari.

Eleven other states and Washington, D.C. already allow recreational marijuana use, with governors from New Jersey, New York, Pennsylvania, and Connecticut meeting last year to coordinate marijuana policies.

Governor Cuomo, who previously referred to marijuana as a “gateway drug,” identified legalization as a priority even before the pandemic exacerbated fiscal challenges, heightening the need for additional taxable products.

Beyond financial considerations, the debate over marijuana legalization now encompasses issues of racial equity. What was once primarily a discussion on the economic benefits of regulating a widely used product has evolved into a discourse on addressing systemic racial disparities in drug law enforcement.

Large-scale protests during the summer underscored the importance of reducing police stops stemming from drug-related offenses to mitigate violent confrontations, a central tenet of the pro-legalization movement.

“This victory resonates loudly. We emphasized racial justice in our messaging, and we’ve proven its effectiveness,” remarked Amol Sinha, executive director of the A.C.L.U.-New Jersey, a leading advocate for legalization. “We’re now on the path to a fairer future for New Jersey.”

The decision to present the question to voters followed unsuccessful attempts to pass marijuana legalization laws, a key campaign promise of Governor Philip D. Murphy, a self-professed progressive Democrat.

Last Wednesday, at 4:20 p.m., Governor Murphy tweeted urging support for legalization, a nod to a number significant in cannabis culture.

Opponents of legalization argued that a separate bill in the Legislature to decriminalize possession and distribution of up to a pound of marijuana would rectify enforcement disparities without normalizing drug use, which critics argue can lead to mental health issues and serve as a gateway to more dangerous substances.

The anti-legalization group, Don’t Let NJ Go to Pot, mounted a subdued campaign due to limited funds, in contrast to the well-funded pro-legalization efforts.

The Cannabis Regulatory Commission faces the challenge of addressing demands from social justice groups to ensure equitable access to dispensary licenses for communities disproportionately affected by uneven marijuana law enforcement.

“The success of this amendment hinges on whether it advances our fight against the drug war or perpetuates a status quo that oppresses communities of color,” remarked Rev. Charles F. Boyer, founder of Salvation and Social Justice, a nonpartisan faith-based organization.

“The responsibility now rests with us.”

New York’s legislation reserves some licenses for large corporations, using generated fees to establish a start-up fund for small entrepreneurs. However, financing for many ventures is expected to come from private equity or personal loans, as banks remain hesitant to lend to marijuana businesses while the drug remains federally illegal.

Even obtaining a business checking account presents a challenge for most marijuana entrepreneurs, forcing many to rely on cash transactions, according to Nathaniel Gurien, CEO of Fincann, a company facilitating bank-cannabis seller relationships.

Details concerning authorized marijuana product testing, frequency of testing, and tested components also require finalization.

“As acceptance grows, so does education, allowing people to understand the benefits of this plant,” remarked Kristen Goedde, founder of Trichome Analytical, a hemp testing company in Mount Laurel, N.J.

Transporting marijuana across state lines remains illegal, but the proximity of dispensaries to New York City offers undeniable advantages, given its large population.

“If New Jersey beats us to the punch, the busiest marijuana retail stores in New Jersey will likely be right across the Lincoln Tunnel and in Fort Lee, near the George Washington Bridge,” observed Ms. Krueger, the Manhattan state senator.

“If our neighboring states move forward,” she added, “it will undoubtedly impact our market.”

Tracey Tully covers New Jersey for The Times, joining in 2018 as a senior editor. She previously reported on city and state government for The Daily News, the Albany Times Union, and the Jersey Journal. More about Tracey Tully.