Proposed
Law
Legalizes possession
and personal use of small amounts of marijuana for persons age 21 and over;
creates Division of Marijuana Enforcement and licensing structure.
SENATE,
No. 830
Sponsored
by:
Senator NICHOLAS P.
SCUTARI
District 22 (Middlesex,
Somerset and Union)
STATEMENT
This bill would
legalize the possession and personal use of small amounts of marijuana for
persons age 21 and over.
Section 3 of the bill
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; or
· assisting another person who is 21 years of age or older
in any of the acts described above.
Section 4 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 7 and 8
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 9 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 10 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 an escalating tax rate of seven percent in the first year; 10
percent in year two; 15% in year three; 20% in year four; and 25% in year five
and beyond. 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.).
Section 11 provides
for local governmental entity regulations or ordinances. The bill
provides that each local governmental entity shall enact an ordinance or
regulation specifying the entity within the local governmental entity that is
responsible for processing applications submitted for a license to operate a
marijuana establishment within the boundaries of the local governmental entity
and for the issuance of such licenses, should the issuance by the local
governmental entity become necessary because of a failure by the division to
adopt regulations or to process and issue licenses.
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
procedures for the issuance, suspension, and revocation of a license issued by
the local governmental entity;
-- establishing a
schedule of annual operating, licensing, and application fees for marijuana
establishments, provided, the application fee shall only be due if an
application is submitted to a local governmental entity in accordance with the
provisions of the bill and a licensing fee shall only be due if a license is
issued by a local governmental entity; 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 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 12
establishes the application process. Under the bill, each application for
an annual 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.
Sections 13 through
18 establish the different classes of licenses and the requirements to obtain
licensure.
A marijuana producer
must have a Class 1 Marijuana Cultivation Facility license issued by the
division for the premises at which the marijuana is produced.
A marijuana processer
must have a Class 1 Marijuana Product Manufacturing Facility license issued by
the division for the premises at which the marijuana is processed.
A marijuana
wholesaler must have a Class 2 Marijuana Wholesaler license issued by the
division for the premises at which the marijuana is warehoused.
A marijuana retailer
must have a Class 3 Marijuana Retailer license issued by the division for the
premises at which the marijuana is retailed.
A marijuana
transporter must have a Class 4 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 22 provides
that a currently operating medical marijuana facility 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.
Section 23 permits a
person convicted of marijuana possession to present an application for
expungement to the Superior Court.
Sections 25 through
33 update existing sections of law to reflect the decriminalization of
marijuana under the bill.
Section 38
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 39
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 40 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.
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.
