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After months of private negotiations, Democratic leaders of the state Legislature on Wednesday released the most recent version of a blueprint to create a multi-billion-dollar legal marijuana industry in New Jersey and allow low-level criminal arrests and convictions to be expunged.
Hearings are scheduled Monday morning at the Statehouse in Trenton for the 147-page "New Jersey Cannabis Regulatory and Expungement Aid Modernization Act."
Broadly, the bill would legalize the possession and personal use of one ounce or less of marijuana for people at least 21 years old, and create, regulate and impose a 12 percent tax a commercial marijuana industry in the state. An extra 2 percent excise tax would be raised for towns which host cannabis businesses.
The legislation also creates a framework for an "expedited expungement" process for people who have prior arrests and convictions for possession or distributing up to an ounce of marijuana. Within six months of the law's enactment, the Administrative Office of the Courts must create an electronic filing system for expedited expungements.
A separate bill will offer more details on the expungement process, the sponsors have said.
The legislation is not dramatically different than the latest proposal obtained by NJ Advance Media in September. But some key details have been clarified.
According to the latest version of (S2703):
* Cannabis delivery services would be permitted.
* Dispensaries would be permitted to create "consumption" areas -- public lounges separate from the retail operation, where people could get high. The dispensary would need the local governing body to pass an ordinance permitting the consumption area first, however.
* A Cannabis Regulatory Commission, led by five members appointed between the governor and the Legislature, would oversee nearly every aspect of the industry. The commission would be affiliated with the Department of Treasury but independent. The commission's executive director would be appointed by the governor and approved by the Senate.
* The commission would oversee the new Office of Minority, Disabled Veterans, and Women Cannabis Business Development to promote entrepreneurship from these three communities. The bill sets a goal of 30 percent participation from these "socially and economically disadvantaged communities."
* In addition to licenses for cultivators, processors, wholesalers and retailers, the commission would set aside 10 percent of licenses for "micro-businesses" to give smaller operators an easier chance to enter the market.
* Applicants who apply to be licensed cannabis businesses by the state must sign an agreement they will hire workers represented by labor unions. Exceptions are made for micro-business owners.
* The commission will give preference to applicants whose businesses are located in impact zones, "for which past criminal marijuana enterprises contributed to higher concentrations of law enforcement activity, unemployment, and poverty," according to the bill.
The zone must have a population of 120,000 or more, or it must have a high crime index as measured by the State Police, an annual average unemployment rate of 15 percent and rank in the top 33 percent for marijuana- or hashish-related arrests, the bill said.
On the population criteria alone, only Newark, Jersey City, Paterson and Elizabeth would qualify as an impact zone, according to Census data.
The bill also strikes any reference to the word "marijuana" and replaces it with the scientific name of "cannabis" when referencing products sold and regulated on the legal market.
The state Senate and Assembly budget committees are scheduled to meet as one body 10 a.m. Monday to debate and vote on the legalization bill.
In addition, the Senate Health, Human Services and Senior Citizens Committee is scheduled to meet at the same time down the hall to approve two bills (S10) and (S2426) that promise to make the medicinal marijuana law more consumer-friendly and expand the economic reach of the medical market.
The health committee will immediately send the medical legislation to the budget committees, which are expected to approve them.
The next public step is a vote by the full Senate and Assembly in mid-December. Both houses are controlled by Democrats.
But in the weeks between, negotiations will continue in earnest as Gov. Phil Murphy, a Democrat, and legislative leaders must try to come to an agreement on the final language.
On early Thursday morning, Murphy's spokeswoman Alyana Alfaro said the governor "remains committed to legalizing adult-use marijuana, a critical step in eliminating racial disparities in our criminal justice system.
"The Governor is committed to working with the Legislature to legalize adult-use marijuana the right way, one that makes the state fairer, prioritizes the safety of New Jersey residents, and ensures that some of the economic benefits go the communities hardest hit by the war on drugs," Alfaro said.
Murphy and Democrats remain far apart on two major issues in the legislation: the tax rate, and the how much power a new commission created by the legislation will exercise over the new industry.
State Senate President Stephen Sweeney, D-Gloucester; Assembly Speaker Craig Coughlin, D-Middlesex; and the bill's prime sponsor, Sen. Nicholas Scutari, D-Union, are adamant about giving the proposed Cannabis Regulatory Commission most of the authority to control the new cannabis market, including the medicinal program. Murphy wants most of the decision-making to remain in the hands of the administration.
Sweeney has also said he will not support a tax rate higher than 12 percent, plus 2 percent for towns willing to host cannabis businesses. Any higher, he said, and people may continue to buy from the illegal market.
But earlier drafts of the bill called for a staggered increasing over five years maxing out at 25 percent, and the governor privately has said 12 percent is too low.
Liza Acevedo, Coughlin's spokeswoman struck an optimistic tone Wednesday about the chances for a compromise.
"Discussions with the governor are ongoing," she said. "The Speaker and Senate President are working together to forge agreement with the administration. The Speaker is confident the bill will pass when it is posted for a vote in the full Assembly."
If the two sides can't agree, legislative leaders could pass the bill and send it to Murphy, allowing him to rewrite portions under a conditional veto.
NJ Advance Media staff writer Payton Guion contributed to this report.
Susan K. Livio may be reached at slivio@njadvancemedia.com. Follow her on Twitter @SusanKLivio. Find NJ.com Politics on Facebook.