Bill > A3581

Introduced Session

This bill would legalize the possession and personal use of small amounts of marijuana for persons age 21 and over. Section 1 of the bill contains the title, "New Jersey Adult Use Marijuana Law." Section 2 of the bill contains findings and declarations including reversal of the existing state policy which criminalizes distribution and possession of marijuana. The bill declares the adoption of a new approach to the marijuana policy for New Jersey which includes the taxing, controlling and legalization of marijuana for adults and the intention to prevent the sale or distribution of the substance to persons under 21 years of age. Section 3 of the bill contains key definitions to aid in the implementation of the policy change, including the newly created Division of Marijuana Enforcement in the Department of Law and Public Safety, and defining the categories of persons who will be licensed under the act. Section 4 specifies that the following acts are not unlawful and would not be an offense or a basis for seizure or forfeiture of assets under N.J.S.2C:64-1 et seq. or other applicable law for persons 21 years of age or older: · possessing, using, displaying, purchasing, or transporting marijuana accessories or one ounce or less of marijuana and certain other related products; · transfer of one ounce or less of marijuana or other related products to a person who is 21 years of age or older; · consumption of marijuana, provided that nothing in the bill would permit consumption that is conducted openly and publicly; · assisting another person who is 21 years of age or older in any of the acts described above; or · home grow of marijuana - possessing, growing or processing no more than six marijuana plants in house or rental unit; local government may prohibit home grow. Section 5 of the bill provides that the following acts would also not be unlawful or a basis for seizure or forfeiture of assets for persons 21 years of age or older: · manufacture, possession, or purchase of marijuana accessories or the sale of marijuana accessories to a person who is 21 years of age or older; · possessing, displaying, or transporting marijuana or marijuana products; purchase of marijuana from a marijuana cultivation facility; purchase of marijuana or marijuana products from a marijuana product manufacturing facility; or sale of marijuana or marijuana products to consumers, if the person conducting the activities has obtained a current, valid license to operate a retail marijuana store or is acting in his capacity as an owner, employee or agent of a licensed retail marijuana store; · cultivating, harvesting, processing, packaging, transporting, displaying, or possessing marijuana; delivery or transfer of marijuana to a marijuana testing facility; selling marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store; or the purchase of marijuana from a marijuana cultivation facility, if the person conducting the activities has obtained a current, valid license to operate a marijuana cultivation facility or is acting in his capacity as an owner, employee, or agent of a licensed marijuana cultivation facility; · packaging, processing, transporting, manufacturing, displaying, or possessing marijuana or marijuana products; delivery or transfer of marijuana or marijuana products to a marijuana testing facility; selling marijuana or marijuana products to a retail marijuana store or a marijuana product manufacturing facility; the purchase of marijuana from a marijuana cultivation facility; or the purchase of marijuana or marijuana products from a marijuana product manufacturing facility, if the person conducting the activities has obtained a current, valid license to operate a marijuana product manufacturing facility or is acting in his capacity as an owner, employee, or agent of a licensed marijuana product manufacturing facility; · possessing, cultivating, processing, repackaging, storing, transporting, displaying, transferring or delivering marijuana or marijuana products if the person has obtained a current, valid license to operate a marijuana testing facility or is acting in his capacity as an owner, employee, or agent of a licensed marijuana testing facility; · leasing or otherwise allowing the use of property owned, occupied or controlled by any person, corporation or other entity for any of the activities conducted lawfully. Sections 6 establishes the penalties for a person to "sell, offer for sale, distribute for commercial purpose at no cost or minimal cost, give, or furnish, to a person under 21 years of age." Further, the section establishes penalties for a person under 21 to attempt to purchase, or acquire a marijuana item, offer "written or oral evidence of age that is false, fraudulent, or not actually the person's own," or to enter or attempt to enter any portion of a licensed marijuana premises. The prohibited act, in each instance, constitutes a disorderly persons offense. Additionally, a fine or a civil penalty may be imposed. A disorderly persons offense is punishable by up to six months imprisonment, a fine of up to $1,000, or both. Section 7 establishes in the Department of Law and Public Safety a Division of Marijuana Enforcement. Sections 8 and 9 describe the powers and duties of the newly created Division of Marijuana Enforcement and the regulation of marijuana generally. The bill provides for the division to adopt rules and regulations necessary for implementation of the bill. The regulations could not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. The bill would require regulations to include the following: procedures for the application, issuance, denial, renewal, suspension, and revocation of a license to operate a marijuana establishment; the establishment by the division of license application fees. Additional required regulations must include licensing goals for minority owned and female owned businesses under the act; security requirements for marijuana establishments; requirements to prevent the sale or diversion of marijuana and marijuana products to underage persons; labeling and packaging requirements; health and safety regulations and standards for the manufacture and sale of marijuana products; advertisement restrictions; procedures for the division to conduct unannounced visits to marijuana establishments; a requirement that only marijuana, marijuana based products and paraphernalia be available for sale at a marijuana establishment; and civil penalties for the failure to comply with established regulations. Section 10 mandates that the division develop a system for tracking the transfer of marijuana items between licensed premises capable, at a minimum, of tracking among other categories, the propagation of immature marijuana plants, the processing of marijuana by a processor, the receiving, storing and delivering of marijuana items by a wholesaler, the sale of marijuana items by a marijuana retailer to a consumer; the purchase and sale of marijuana items between licensees, the transfer of marijuana items between licensed premises; and the collection of taxes imposed upon the retail sale of marijuana items. Section 11 of the bill establishes a tax levied upon marijuana sold or otherwise transferred by a marijuana cultivation facility to a marijuana product manufacturing facility or to a retail marijuana store. To encourage early participation in and development of marijuana establishments and to undermine the illegal market, the bill proposes the tax shall escalate over a five year period such that in year one following the excise tax shall be seven percent; and in year three, the tax shall be 10 percent; and in year five and beyond, the tax rate shall be 15 percent. The Department of the Treasury would establish procedures for the collection of all taxes levied. The bill specifies that no tax would be levied upon marijuana intended for sale at medical marijuana centers pursuant to the "New Jersey Compassionate Use Medical Marijuana Act," P.L. 2009, c.307 (C.24:6I-1 et seq.). Under the bill, tax revenue shall be collected by the Director of the Division of Taxation and shall be deposited by the Director of the Division of Taxation into the nonlapsing fund established pursuant to section 37 of P.L., c. (C. ) (pending before the Legislature as this bill), and shall be used to fund the Division of Marijuana Enforcement, except that during the first and second year the tax is collected one percent shall be allocated to the local governmental entity in which the marijuana establishment is located; during year three and four, two percent shall be allocated to the local governmental entity in which the marijuana establishment is located; and in year five and each subsequent year thereafter, three percent shall be allocated to the local governmental entity in which the marijuana establishment is located. Section 12 provides for local governmental entity regulations or ordinances. The local governmental entity may enact ordinances or regulations, not in conflict with the provisions of the bill, that address the following: -- governing the time, place, manner and number of marijuana establishment operations; -- establishing local government registration fees for marijuana establishments not to exceed $10,000; and -- establishing civil penalties for violation of an ordinance or regulation governing the time, place, and manner of a marijuana establishment that may operate in such local governmental entity. The bill provides that a local governmental entity may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance. Under the bill, the failure of a local governmental entity to enact an ordinance prohibiting the operation of a marijuana establishment within one year of the effective date shall thereby permit the operation of a marijuana retail establishment within the local governmental entity for a period of five years, at the end of which five year period, and every five year period thereafter, the local governmental entity shall again be permitted to prohibit the operation of a marijuana establishment. Section 13 establishes the application process. Under the bill, each application for an initial three year license and each subsequent two year renewal license to operate a marijuana establishment would be submitted to the division. A separate license shall be required for each location at which a marijuana establishment seeks to operate. Renewal applications may be filed up to 90 days prior to the expiration of the establishment's license. The initial license application only shall be based upon a 100 point scale. The Division shall begin processing applications 18 months following enactment. Sections 14 through 18 establish the different classes of licenses and the requirements to obtain licensure. A marijuana producer or processor must have a Class 1 Marijuana Producer-Processor license issued by the division for the premises at which the marijuana is produced or processed. A marijuana retailer must have a Class 2 Marijuana Retailer license issued by the division for the premises at which the marijuana is retailed. A marijuana transporter must have a Class 3 Marijuana Transportation license issued by the division. All prospective licensees must complete application requirements, meet residency requirements, and undergo a criminal history record background check. Section 19 concerns the permitting of marijuana handlers, a person who performs work for a licensee. Section 20, concerning marketplace regulation, bars producer-processor from conducting or owning retail marijuana establishment; bars retail marijuana from conducting or owning a producer-processor marijuana establishment and places limits on number of licenses which can be held per license class. Section 21 regulates employment policies related to marijuana. Section 22 concerning a currently operating medical marijuana facility, known as an alternative treatment center, operating in good standing can immediately apply for a license to operate to distribute marijuana to a person who is not a medical marijuana patient, as long as the owners incorporate the marijuana business established pursuant to this act as a legally distinct entity from the medical marijuana business, and the two share common. Section 23 provides that an existing medical marijuana alternative treatment center, or an entity with common ownership or control with an alternative treatment center, shall be automatically eligible to receive a Class 1 Marijuana Producer-Processor License, and a Class 2 Marijuana Retail License, and the prohibition on vertical integration shall not apply Section 24 permits a person with a previous conviction for marijuana possession to present an application for expungement to the Superior Court. Sections 25 concerns limitations as relates to federal law. Sections 26, and 28 through 34 update existing sections of law to reflect the decriminalization of marijuana under the bill. Section 27 concerns personal use of cannabis resin. Section 35 establishes consumer protections barring medical marijuana arrest, prosecution, or penalty for conduct permitted under the act. Section 36 provides that New Jersey law enforcement agencies "shall not cooperate with or provide assistance to the government of the United States or any agency thereof in enforcing the Controlled Substance Act, 21 U.S.C. 801 et seq., solely for actions consistent with" conduct legalized by S-3195, "except pursuant to a valid court order." Nor shall an agency refuse to renew a license, or, to perform any duty under the bill on the basis that manufacturing, distributing, dispensing, possessing, or using marijuana is prohibited by federal law. Section 37 concerns contract enforcement and bars unenforceability on the grounds that conduct is prohibited by federal law. Section 38 concerns criminal investigations and establishes that certain conduct shall not constitute "articulable suspicion," including the odor of marijuana or burnt marijuana, the possession of or the suspicion of possession of marijuana without evidence of quantity in excess of one ounce, and the possession of marijuana without evidence of quantity in excess of one ounce in proximity to any amount of cash or currency. Section 39 establishes that all fees and penalties collected by the Director of the Division of Marijuana Enforcement shall be forwarded to the State Treasurer for deposit in a special nonlapsing fund which shall be known as the "Marijuana Control and Regulation Fund." Monies in the fund shall be used exclusively for the operation of the Division of Marijuana Enforcement and for reimbursement of all additional costs of enforcement Section 40 establishes a Marijuana Regulation Review Commission which shall be responsible to review and approve regulations developed by the division. The commission shall consist of three members as follows: one member appointed by the Governor, who shall be the presiding officer, one member appointed by the President of the Senate, who shall be a member of the Senate, and one member appointed by the Speaker of the General Assembly, who shall be a member of the General Assembly. The concurrence of two of the members of the commission shall be necessary to validate all acts of the commission. Section 41 provides that following enactment of the legislation but prior to the effective date, established as one year following enactment, the possession of up to 50 grams of marijuana shall constitute a civil violation not subject to arrest, and limited to a fine of up to $100. Section 42 provides that the bill shall take effect on the 360th day following enactment, but the director may take such anticipatory action as may be necessary to effectuate the provisions.

AI Summary

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Timothy Eustace (D)*,  Reed Gusciora (D)*, 

Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee (on 03/12/2018)