
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: July 10, 2018
Partner
201-896-7115 dmckillop@sh-law.comProponents of legalizing adult-use marijuana in New Jersey are hopeful that two recently introduced cannabis bills will help reignite momentum. Senate Bill 2702, proposed by Senator Nicholas Scutari and Senate President Stephen Sweeney, combines the expansion of the state’s medical marijuana program with the legalization and establishment of an adult-use market. Meanwhile, Senate Bill 2703 would legalize the possession and personal use of up to an ounce of marijuana for individuals 21 and over.
SB2703 legalizes possession and personal use of marijuana for persons age 21 and over. Specifically, a person may possess, use, purchase, or transport: marijuana paraphernalia; one ounce or less of marijuana; 16 ounces or less of marijuana-infused product in solid form; 72 ounces or less in liquid form; 7 grams or less of marijuana concentrate; and up to 6 immature marijuana plants.
The proposed legislation also establishes a new Division of Marijuana Enforcement (Division) to oversee the legal industry. Notably, the Division would be located in the Department of Treasury rather than the Department of the Attorney General. The new Division would be tasked with drafting cannabis regulations, which would include the following: procedures for the application, issuance, denial, renewal, suspension, and revocation of a license to operate a marijuana establishment; license application fees; licensing goals; 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; recordkeeping requirements; and civil penalties for the failure to comply with the regulations.
Below are several other key provisions of the bill:
Senate Bill 2702 contains all of the provisions of Senate Bill 2703 and also includes measures to expand the State’s existing medical marijuana program. Below are several proposed changes:
The bill establishes specific requirements for DOH to review and score initial permit applications for new medical marijuana cultivators, medical marijuana processors, and medical marijuana dispensaries based on a 100-point scale, which includes evaluations of the applicant’s operational plan, environmental impact plan, safety and security plan, business experience, proposed location, record of social responsibility, philanthropy, involvement in research concerning the medical efficacy and adverse effects of medical marijuana, workforce development and job creation plan, and business and financial plan. The maximum fee for initial issuance or renewal of an ATC permit will be $50,000 for a medical marijuana cultivator, $25,000 for a medical marijuana processor, and $10,000 for a medical marijuana dispensary. Additionally, the maximum fee for relocation of an ATC will be $20,000 and the maximum fee to sell or transfer an ATC permit will be $150,000.
If an employer has a drug testing policy and an employee or job applicant tests positive for marijuana, the employee or job applicant is to be offered an opportunity to present a legitimate medical explanation for the positive test result, such as a practitioner’s recommendation for medical marijuana, a registry identification card, or both, or request a retest of the original sample at the employee’s or job applicant’s own expense. Nothing in the bill will restrict an employer’s ability to prohibit or take adverse employment action for the possession or use of intoxicating substances during work hours, require an employer to commit any act that would cause the employer to be in violation of federal law, or require the employer to take any action that would result in the loss of a federal contract or federal funding.
Given that the proposed bills are extremely complex, this article provides only a brief overview of several key provisions. We encourage cannabis businesses and those that are seeking to enter the emerging cannabis industry to contact an experienced attorney to discuss how the proposed measures may impact you. If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, at 201-806-3364.
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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