Marijuana Legalization Would Force Tough Choice For New Jersey Towns

Ron Strider

Well-Known Member
Now that a bill to legalize recreational marijuana in New Jersey is likely to become law, leaders in the state's 565 municipalities could soon face a choice.

Do they allow businesses to produce and sell cannabis in their towns, potentially reaping the benefits of a new industry and millions of dollars in tax revenue?

Or do they restrict pot sales, missing out on the money but possibly avoiding some of the collateral problems that may come with the sale of recreational marijuana?

The bill, introduced by New Jersey Sen. Nicholas Scutari, D-Linden, would legalize the possession and personal use of small amounts of recreational marijuana across the state. The bill allows individual towns to decide if they will allow pot sales, but says the towns that don't won't receive their share of the estimated $300 million in annual tax revenue marijuana is expected to generate.

With Phil Murphy now the governor-elect of New Jersey, towns could face these decisions in the coming months. Murphy has said he'd sign the bill within his first 100 days in office.

As N.J. municipalities start to mull the pros and cons of pot sales, they can look at towns in other states that have already made the move.

Colorado was the first state to allow recreational pot sales within its borders and, along with the revenue, the state has faced a host of issues, some expected, some not.

Of Colorado's 272 municipalities, 176 don't allow marijuana sales, according to the Colorado Municipal League. Colorado has had recreational marijuana since 2014.

Fort Morgan is among the Colorado towns that does not allow marijuana sales. While residents who are at least 21 years old are free to possess and use marijuana -- per state law -- they can't buy it in Fort Morgan.

The town placed a moratorium on marijuana production and sales, based on feedback from the community.

"They really, really wanted to keep it out of Fort Morgan," said Mayor Ron Shaver. "They felt the problems it would bring would outweigh the revenue."

Shaver says residents may have been right. Even though Fort Morgan doesn't allow pot sales, a neighboring town does. Shaver said since marijuana became legal in 2014, Fort Morgan has seen an increase in pot possession by middle school and high school students, which the mayor says is likely because it's sold in the next town.

Kevin Bommer, deputy director of the Colorado Municipal League, said towns in the state have incurred a lot of unforeseen enforcement expenses, including trying to prevent people from participating in what he calls the "grey market," in which people grow more marijuana than allowed and sell it in surrounding states.

"I don't think it's an everything-has-gone-to-hell type of situation," Bommer said. "But it's not just revenue, it's on the enforcement."

Bommer said since it's now legal to grow a small number of marijuana plants in Colorado, it's hard for police to monitor people who may be growing more than allowed. He also brought up a common concern about law enforcement not being able to easily test to determine if someone is driving while high, like how a Breathalyzer detects alcohol. A blood test is usually required to determine a person's level of marijuana intoxication.

The Denver Post reported a 40 percent increase in the number of people who died in car crashes since marijuana was legalized, but the numbers couldn't be definitively linked to legalized pot. The number of drivers who tested positive for marijuana also jumped 145 percent between 2013 and 2016.

Other towns say they have found the additional revenue from pot sales well worth some potential risks.

Log Lane Village, the town adjacent to Fort Morgan, now gets more than a quarter of its sales tax revenue from marijuana, according to a story in the Post last year. The town has used the money to fix streets.

"There were pot holes you could fall into," Log Lane Village Trustee Robin Mastin told the paper. "We told people
The New Jersey bill would eventually give municipalities that allow pot sales 3 percent of the tax revenue generated in those towns.

"We think it's just a smarter economic move for municipalities to allow it," said Dianna Houenou of New Jersey United for Marijuana Reform, a group that supports legalization. "That would come along with jobs. That would come along with tax revenues."

But that view is far from universal. Potential law enforcement costs are among the issues raised by New Jersey officials since the legalization bill was introduced.

Jon Moran, senior legislative analyst at the New Jersey League of Municipalities, said the organization is putting together a task force to study the bill. So far, the group has made no recommendations about legalized pot.

"There's a lot of concern about enforcing impairment laws," Moran said. "There's no equivalent of a breathalyzer test to provide evidence of impairment."

Moran said the task force will work with stakeholders and legislators on tweaking the bill to address concerns, something advocates say they welcome.

Houenou, of New Jersey United for Marijuana Reform, acknowledged that the bill "certainly needs improvements."

Should pot become legal, it's unclear if it would be sold in municipalities all over New Jersey or if many would opt out, like has happened in Colorado.

John McCormac, mayor of Woodbridge, home to one of New Jersey's few medical marijuana dispensaries, declined comment. NJ Advance Media reached out to mayors in all five towns that have medical dispensaries: Bellmawr, Cranbury, Egg Harbor, Montclair and Woodbridge.

Cranbury's mayor said just because the town has a medical dispensary doesn't mean officials would open the doors to recreational pot sales.

"Cranbury is on the fence about it until we see how some of the other states fare with it," Mayor David Cook said, adding that he's concerned about pot getting into the hands of children. "I would not be happy to have it on a retail basis until some of those social concerns get figured out."

Maplewood Mayor Victor DeLuca said he supports legalization, but has yet to speak with local officials about recreational pot sales in his town.

"If it's legalized and it's a business, I think we should consider it," DeLuca said about allowing pot sales. "People are going to use it, we might as well legalize it, regulate it and tax it."

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