
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: July 6, 2017
Partner
201-896-7115 dmckillop@sh-law.comNew Jersey Senator Nicholas Scutari recently introduced Senate Bill 3195 to decriminalize the recreational use of cannabis and legalize its manufacture, distribution, and sale in New Jersey.
Senate Bill 3195 would legalize the possession and personal use of small amounts of cannabis for individuals age 21 and over. Individuals would be allowed to possess up to 1 ounce of cannabis, 16 ounces of infused solid products, or 72 ounces in liquid form. Notably, New Jersey residents could not grow cannabis at home, which most other recreational cannabis laws allow.
Under the proposed legislation, a tax will be levied upon cannabis sold or otherwise transferred by a cannabis cultivation facility to a cannabis product manufacturing facility or to a retail cannabis store. The tax rate would start low and increase over time in an effort to foster early adoption and cut out the black market. It would start at 7 percent in the first year and increase to 10 percent in the second year; 15 percent in the third; 20 percent in the fourth and 25 percent in the fifth.
The bill also retains local oversight over cannabis businesses. Under SB 3195, local governments would be authorized to enact ordinances dictating the time, place, manner and number of cannabis establishment operations within their borders.
A local governmental entity may also expressly prohibit the operation of cannabis cultivation facilities, cannabis product manufacturing facilities, cannabis testing facilities, or retail cannabis stores through the enactment of an ordinance. However, the failure to enact an ordinance prohibiting the operation of a cannabis establishment will permit the operation of a cannabis retail establishment within the local governmental entity for five years. At the end of the five-year period, the municipality again is permitted to prohibit the operation of a cannabis establishment.
SB 3195 creates the Division of Marijuana Enforcement within the state Department of Law and Public Safety, which would be tasked with adopting rules and regulations to implement the bill. It also establishes several different classes of licenses. Below is a brief summary:
All prospective licensees must complete application requirements, meet residency requirements, and undergo a criminal history record background check. While the Division of Marijuana Enforcement is authorized to establish criteria for licensure, the bill provides that licenses may not be issued to:
In good news for existing businesses, the bill provides that a currently operating medical cannabis facility operating in good standing can immediately apply for a license to operate to distribute cannabis to a person who is not a medical cannabis patient. Under the proposed bill, the Division of Marijuana Enforcement must approve or deny any fully completed application for licensure within 90 days. Following approval of an application, a license must be issued within 30 days.
Sen. Scutari has stated that his goal is to have SB 3195 approved and ready for the next governor’s signature within the first 100 days of the new administration. Democratic candidate Phil Murphy favors the full legislation, while Republican Kim Guadagno has stated that she would support some level of decriminalization.
We will closely monitor developments regarding SB 3195 in the coming months and will post updates as they become available. For more information about the proposed marijuana bill or the legal issues involved, we encourage you to contact a member of Scarinci Hollenbeck’s Government Law Group.
For more information about SB 3195 and related legal issues, please contact Dan McKillop.
This article is a part of a series pertaining to cannabis legalization in New Jersey and the United States at large. Prior articles in this series are below.
Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.
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