Payton Guion | NJ Advance Media for NJ.com

With the election of Phil Murphy as New Jersey's next governor, legislators and advocates are working to get a bill legalizing marijuana on his desk within his first 100 days.

State Sen. Nicholas Scutari, D-Union, introduced the bill earlier this year, but with Chris Christie in office until January, the bill has stayed in committee, as has its twin in the Assembly.

Murphy has said he would legalize weed in New Jersey, but the bill that lands on his desk could look quite a bit different than the one sitting in committee at the moment. Advocates and legislators agree than some changes are necessary for the bill to pass the Legislature.

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What the bill says now

Scutari's bill would legalize the possession and personal use of up to an ounce of marijuana for adults over the age of 21. It also establishes an enforcement agency, along with a licensing system for growers and retailers.

Towns that allow weed sales would be able to collect a portion of tax revenues generated in the state, while those that don't allow sales wouldn't be able to collect the revenues.

Under the bill, people in New Jersey who have been convicted of marijuana-related crimes would be eligible to have their records expunged.

Below are some of the changes to the bill that advocates and legislators are considering.

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Would people be able to grow weed at home?

In other states that have legalized marijuana, people are allowed to grow a small number of cannabis plants at home. The bill that was introduced in the state Senate this year does not permit home-grow.

Kate Bell, legislative counsel for the Marijuana Policy Project, said her organization will advocate for home-grow to be added to the bill. She said, if the bill passes, New Jersey would be the only state to not allow people to grow at home.

Scutari said he'd be open to discussing home-grow, but said he probably wouldn't support it at first.

"Right now it’s too much," Scutari said. "I’m not fundamentally against it, but I’m aware of the problems. I’m a realist.”

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Would marijuana offenses be expunged?

Murphy has said that his support for legalizing cannabis comes down to the potential criminal justice benefits that would accompany such a move. Murphy is among those who believes law enforcement is wasting precious resources by arresting people on low-level marijuana crimes.

Data shows that blacks are more than three times more likely to be arrested for marijuana possession than whites, despite the two groups using weed at about the same rate.

Scutari's bill would make people charged with low-level pot offenses eligible to have their records cleared, but advocates say they'd like to see more.

“We’re calling for automatic expungements," said Dianna Houenou, of New Jersey United for Marijuana Reform, an advocacy group. "People should not continue bearing the consequences of something we say is now legal.”

As the bill is written, people would have to apply to have their record cleared. NJUMR and other groups say that if the bill is passed, anyone convicted of low-level marijuana offenses should have their record automatically scrubbed.

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How about diversity in ownership?

Marijuana legalization would do more than just allow people to smoke weed or eat edibles. It would create a brand new industry in New Jersey; one that some estimate could eventually generate billions of dollars every year.

Advocates are pressing to ensure that a variety of people get a cut of that money.

Scutari's bill requires the enforcement division to set goals for women- and minority-owned businesses, but is vague on what those goals should be. Dan McKillop, a New Jersey attorney already advising clients on cannabis questions, said the goal should be to get a diverse group of owners.

"Your goals to that end are going to be frustrated if one person with $100 million can come in and dominate,” McKillop said.

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Where would tax revenue go?

Scutari's bill is clear about the amount of tax that would be imposed on marijuana sales. In the first year, weed sales would be taxed at 7 percent. It would increase incrementally each year until the tax rate reaches 25 percent in year five, where it would stay.

The bill also says the municipalities that allow cannabis production and sales would receive a small percentage of the tax revenue generated in the towns. In the first year, towns would get 1 percent of tax revenue generated. The next year, they'd get 2 percent. In year three and beyond, towns would get 3 percent of tax revenue they generate.

It remains unclear exactly how the remaining tax revenue would be spent. The bill is vague, saying that it will be used to fund drug education programs and to pay for the Division of Marijuana Enforcement. Several people interviewed said they'd like to see more about what would happen to the money, which could reach into the hundreds of millions of dollars.

"Scutari's bill kind of left that out," said Houenou of NJUMR. "We want to ensure the tax revenue is reinvested in communities that have been affected by marijuana laws."

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How many businesses would be licensed?

The only limit on the number of licensed cannabis retailers listed in the bill is that there has to be at least one in each of New Jersey's 21 counties. The bill doesn't mention a maximum, but says there should be "adequate licensed premises to serve the market demands of the county during the peak seasons."

Scott Rudder, president of the New Jersey CannaBusiness Association, said making sure the market is big enough is crucial for the industry.

“We want to make sure we’re right-sized, that we have the right amount of stores in the right places,” Rudder said. Other advocates have said they'd like to see specifics on how many licensed businesses could operate in New Jersey.

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How much pot can businesses grow?

On top of how many pot shops will be licensed, Rudder is also concerned about how much weed growers could produce in New Jersey.

“It needs to clarify what the canopy will look like,” Rudder said about the bill. The canopy is industry-speak for the amount of space dedicated to marijuana growth. "Will it be 5 million square feet? 3 million square feet?"

Rudder warned that if the bill isn't clear about the amount of space, it could alter the price of pot. If the canopy is too large, prices will plummet. If not enough marijuana is grown, they will spike.

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Would the bill fix N.J.'s medical marijuana program?

Before New Jersey starts making millions off recreational pot sales, advocates and legislators agree that the state's medical marijuana program needs to be improved.

“It’s been stifled and it’s been incredibly arduous,” Rudder said. “We need to strengthen access to medical cannabis for people.

“We only have 5 locations in New Jersey for 9 million residents. That is unacceptable.”

Bill Caruso, an attorney who is advocating for pot legalization, called New Jersey's existing medical marijuana program "broken."

Scutari said one of the mistakes made in legalizing medical marijuana was leaving too much up to the regulators, rather than addressing issues in a bill. The senator said it was a mistake that wouldn't be repeated.

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Patti Sapone

Who would start selling weed first?

Scutari has said that he doesn't want to waste time in giving people access to recreational marijuana, if the bill passes. He favors allowing the five existing medical marijuana dispensaries to sell weed while regulators set up the full industry.

“People have been waiting for this moment for years,” the senator said. "Legislation (should) happen immediately through temporary licensure.”

Others have pushed back on this proposal, saying the dispensaries would be overwhelmed and demand could threaten access to medical pot for patients.

“It’s going to be tough in New Jersey because the medical program is so restrictive and so small,” said Bell of the Marijuana Policy Project. "You don’t want to be in a situation where patients can’t get medication."

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Where could people use pot?

While the purchase and possession of marijuana would be legalized in New Jersey under Scutari's bill, actually using pot is less straightforward. The bill doesn't allow public use of any kind, either by smoking or ingesting.

People would be permitted to use cannabis in a private home, but not if it violates a lease. Also, those who live in federally subsidized housing likely would not be able to use marijuana at home, since marijuana possession and use remains illegal on the federal level.

Bell of the Marijuana Policy Project advocates creating social use spaces, areas that adults are allowed to consume marijuana, similar to a bar.

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What's the timeline?

Scutari introduced the bill in May of 2017. It's now sitting in the Senate Judiciary Committee.

Murphy has said he plans to sign the bill in his first 100 days in office. Advocates and legislators say they will have a bill in front of him by then.

Within a year of the bill being signed, regulations have to be established.

Within a year of regulations being established, the state has to start issuing licenses.

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What are opponents saying?

While the bill has plenty of momentum, Murphy's election also has brought out lawmakers questioning if legalization is the right move.

“Our first priority as legislators must be to protect the people we were elected to serve,” said state Sen. Joe Pennacchio, R-Morris. “Crime rates in Colorado are rising faster than almost anywhere else in the country. That’s not a coincidence. We cannot allow this to happen in New Jersey. Governor-elect Murphy – don’t pay for legal pot with people’s lives. It’s not worth it.”

Pennachhio cited a story in the Denver Post about crime rates in Colorado rising faster than the rest of the country. The story does not say that legalized pot is the reason crime has risen.

State Sen. Ronald Rice, D-Essex, has called for hearings about pot legalization.

"We know there are negative factors that we will need to safeguard against, from children's access to marijuana-infused edibles to motor vehicle accidents caused by impaired driving to the effect of marijuana on babies and the impact of legalization on communities of color," according to Rice's statement.

Newly-appointed state Assembly Speaker Craig Coughlin, D-Middlesex, has also cautioned against rushing the bill through the Legislature.

"I want to make sure it makes sense," Coughlin said. "As with any bill -- particularly any bill that would create something new -- I think the devil is really in the details. And I think we need to understand it in its totality."

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Links

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Payton Guion may be reached at PGuion@njadvancemedia.com. Follow him on Twitter @PaytonGuion. Find NJ.com on Facebook.

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