One possible compromise would scrap the sales tax, which fluctuates based on price point, and instead tax cannabis by weight. That way Murphy and Sweeney save face, and New Jersey avoids what befell Oregon, where nosediving cannabis prices crashed revenue projections.
State leaders are also squabbling over the commission that’ll regulate legal cannabis sales.
Instead of an excise tax that could be anywhere from 12 percent (Senate President Stephen Sweeney’s stated cap) up to 25 percent (Murphy’s initial offer), there would be a consistent rate based on the amount of the sale no matter what the price is.
Also seen as a positive: Murphy naming George Helmy to be his new chief of staff.
However, another industry insider did not share the rosy outlook.
State leaders are now considering a proposal that would tax marijuana by weight, rather than an excise tax on the sale, according to multiple sources close to the discussions, who didn’t want their names used out of concern it could disrupt negotiations.
Details on the proposal are scant, but the new proposal could serve two purposes. Initially, it could help bridge the gap between the governor and legislative leaders on marijuana. Taxes and regulation are the two main issues separating the two sides and debate has largely stalled in January.
New Jersey’s lead is slipping
In New Jersey, Senate and Assembly panels approved identical legislation in December and sent the bills to the full Legislature for a vote.
Gov. Phil Murphy, a Democrat who expanded the state’s medical marijuana industry in his first year in office, wants to legalize recreational MJ. That has attracted the attention of cannabis entrepreneurs interested in expanding into the Garden State market.
But progress stalled toward the end of 2018 – particularly over the cannabis sales tax rate, which was set at 12% in the bill.
“We are pleased to announce that, as of today, opioid use disorder is a condition for which physicians can recommend medical marijuana to patients,” Dr. Shereef Elnahal, the state health commissioner, said in a press release. “We are also taking steps to ensure that these patients will be on MAT for their addiction, in addition to marijuana.”
Previously, individuals addicted to opioids could only qualify for medical cannabis if they became dependent while attempting to treat chronic pain caused by a musculoskeletal disorder.
Gov. Phil Murphy says his administration is adding opioid addiction to the list of eligible illnesses in New Jersey's medical marijuana program.
Murphy announced the change Wednesday at Cooper University Hospital along with other steps aimed at fighting the state's opioid epidemic.
Murphy also said the state would be removing a requirement that makes it harder for opioid addicts on Medicaid to get treatments involving medication.
Meanwhile, across the mighty Hudson in New Jersey, Governor Phil Murphy, who made marijuana legalization a big part of his gubernatorial campaign in 2017 (New Jersey governors are elected in odd numbered years), renewed his call for legalization in his State of the State speech.
“By legalizing adult-use marijuana — first and foremost — we can reverse the inequality and unfairness left from years of failed drug policies and shift public safety resources to where they can do the most good,” he said.
Murphy told The Hill in December that the “biggest driver” for him in terms of marijuana legalization was social justice.
“We have to remind folks that we're not inventing marijuana, that it exists. What we're trying to do is trying to undo the social injustices, take the business out of the hand of the bad guys, protect our kids, regulate it, tax it. It's not going away,” he said at the time.
The governor echoed Tuesday during his address that the state should attempt to change the law to help those trying to move on from past convictions.
As Gov. Phil Murphy delivered his first State of the State speech Tuesday, listing marijuana legalization as a top priority for 2019, New York Gov. Andrew Cuomo laid out his vision for legalizing the drug in his own state.
Cuomo unveiled long-awaited details of his legalization proposal during a simultaneous State of the State address in Albany, calling on lawmakers to send him legislation by April. That timeline that could put New York on track to clear the way for retail marijuana sales ahead of New Jersey, where a similar effort has been stalled for months.
Another week has come and gone and once again there is no news to report on the status of legislation to legalize adult-use cannabis and expand the medicinal marijuana program.
The scheduled Jan. 10 meeting between Governor Phil Murphy, Senate President Stephen Sweeney and Assembly Speaker Craig Coughlin did not happen – apparently a casualty of the the special legislative committee investigating how Murphy’s team responded to Katie Brennan’s rape allegations.
The trio may reschedule the meeting for later this month, according to multiple reports.