Accordingly, plan B, they have said, is to significantly expand the current medical cannabis system and push through a separate bill (S-3205) for expunging the records of individuals with arrests or convictions for low-level marijuana crimes.
“Adult use marijuana will be legalized in New Jersey, but it won’t happen now,” said Sweeney (D-Gloucester) in a statement. “It would have been best to move the adult use and medical expansion bills at the same time, but it is wrong to hold the medical and expungements bills hostage. We want to move forward to help transform the state’s medical marijuana program and to achieve the progressive reforms for social justice.”
$60-million hole in the budget
The death of the bill to legalize adult use of marijuana has created confusion over expungements and business plans, and has left a $60-million budget hole that was to have been filled by anticipated revenue from recreational legalization.
The proposed medical marijuana expansion bill (S-10) could include the regulatory oversight commission laid out in the adult-legalization bill, according to Sen. Nick Scutari (D-Union), its sponsor. He told reporters it would offer more licenses for medical dispensaries and make the licensing process easier to navigate by breaking up the permitting system which had been prohibitive for those seeking to get involved.
To become a licensed medical dispensary under the current medical marijuana law, businesses had to be vertically integrated — meaning they had to be permitted to cultivate, manufacture and dispense cannabis products, an incredibly expensive demand. S-10 would allow more licenses to be made available, (there are 12 licenses currently) and the six dispensaries now operating would be allowed to convert their practices from nonprofit to for-profit businesses. That move would allow them to diversify their funding mechanisms by gaining access to more affordable loans and investment funds. And, New Jersey Cannabusiness president Scott Rudder said, more functioning dispensaries would create a flourishing ancillary market of security firms, marketing firms, and attorneys looking to get into the cannabis space. Murphy addressed some of this through regulations the Department of Health put in place this week.