TRENTON, N.J. (Jan 15, 2024) – Bills introduced in the New Jersey Senate would expand the state’s marijuana laws despite ongoing federal cannabis prohibition.
A coalition of six senators led by Sen. Vin Gopal introduced Senate Bill 1985 (S1985) on Jan. 9. New Jersey voters legalized marijuana by a 67 percent to 33 percent margin on Nov. 3, 2020. In February 2021, Gov. Phil Murphy signed enacting legislation to create regulatory and tax structures for the state’s marijuana cultivation and retail businesses. However, the current law prohibits home cultivation. S1985 would legalize growing or possessing up to six marijuana plants for personal recreational use, and up to 10 plants for personal medical use.
Rep. John McKeon introduced Senate Bill 1126 (S1126). One of the biggest hurdles in legalization at the state level is the Federal Reserve and its control over the banking system.
Because marijuana remains illegal under federal law, cannabis businesses in states that have legalized marijuana remain effectively locked out of the banking system. If a federally chartered or insured financial institution touches marijuana money, it takes on significant legal risk. The federal government insures or charters virtually every bank in the U.S. As a result, cannabis businesses have been forced to transact almost exclusively in cash. The passage of S1126 would work around this by establishing a New Jersey state bank specifically for the handling of funds associated with marijuana commerce.
Passage of either of these bills would help expand the marijuana market in New Jersey, further nullifying federal cannabis prohibition in practice and effect.
EFFECT ON FEDERAL PROHIBITION
Under the federal Controlled Substances Act (CSA) passed in 1970, the federal government maintains complete prohibition of marijuana. Of course, the federal government lacks any constitutional authority to ban or regulate cannabis within the borders of a state, despite the opinion of the politically connected lawyers on the Supreme Court. If you doubt this, ask yourself why it took a constitutional amendment to institute federal alcohol prohibition.
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New Jersey Bills Would Expand the State’s Marijuana Laws Despite Ongoing Federal Prohibition
