Authorizes cannabis cultivation on land receiving farmland assessment.

A1131

ASSEMBLY, No. 1131

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman JOE DANIELSEN

District 17 (Middlesex and Somerset)

SYNOPSIS

���� Authorizes cannabis cultivation on land receiving
farmland assessment.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning cannabis cultivation and amending
P.L.2009, c.307 and
P.L.2021, c.16.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 7 of P.L.2009,
c.307 (C.24:6I-7) is amended to read as follows:

���� 7. a. (1) The commission shall
accept applications from entities for permits to operate as medical cannabis
cultivators, medical cannabis manufacturers, and medical cannabis
dispensaries.� For the purposes of this section, the term "permit"
shall be deemed to include a conditional permit issued pursuant to subsection
d. of section 11 of P.L.2019, c.153 (C.24:6I-7.1) and any permit issued to a
microbusiness pursuant to subsection e. of section 11 of P.L.2019, c.153
(C.24:6I-7.1).

���� (2) (a) For a period of 18
months after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.):

���� (i)��� no applicant may
concurrently hold more than one permit issued by the commission pursuant to
this section, regardless of type; and

���� (ii)�� there shall be no more
than 28 active medical cannabis cultivator permits, including medical cannabis
cultivator permits deemed to be held by alternative treatment centers issued a
permit prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) and
medical cannabis cultivator permits deemed to be held by alternative treatment
centers issued a permit subsequent to the effective date of P.L.2019, c.153
(C.24:6I-5.1 et al.) pursuant to an application submitted prior to the
effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.); provided that medical
cannabis cultivator permits issued to microbusinesses pursuant to subsection e.
of section 11 of P.L.2019, c.153 (C.24:6I-7.1) shall not count toward this
limit.

���� (b)�� Commencing 18 months
after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), a permit
holder shall be authorized to concurrently hold a medical cannabis cultivator
permit, a medical cannabis manufacturer permit, and a medical cannabis
dispensary permit, provided that no permit holder shall be authorized to
concurrently hold more than one permit of each type.� The permit holder may
submit an application for a permit of any type that the permit holder does not
currently hold prior to the expiration of the 18-month period described in
subparagraph (a) of this paragraph, provided that no additional permit shall be
awarded to the permit holder during the 18-month period.

���� (c) (i) The provisions of
subparagraph (a) of this paragraph shall not apply to any alternative treatment
center that was issued a permit prior to the effective date of P.L.2019, c.153
(C.24:6I-5.1 et al.), to any alternative treatment center that was issued a
permit after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.)
pursuant to an application submitted prior to the effective date of P.L.2019,
c.153 (C.24:6I-5.1 et al.), to one of the four alternative treatment centers
issued a permit pursuant to an application submitted after the effective date
of P.L.2019, c.153 (C.24:6I-5.1 et al.) pursuant to a request for applications
published in the New Jersey Register prior to the effective date of P.L.2019,
c.153 (C.24:6I-5.1 et al.) that are expressly exempt from the provisions of
subsubparagraph (i) of subparagraph (a) of this paragraph, or to one of the
three alternative treatment centers issued a permit pursuant to section 11 of
P.L.2019, c.153 (C.24:6I-7.1) that are expressly exempt from the provisions of
subsubparagraph (i) of subparagraph (a) of this paragraph, which alternative
treatment centers shall be deemed to concurrently hold a medical cannabis
cultivator permit, a medical cannabis manufacturer permit, and a medical
cannabis dispensary permit, and shall be authorized to engage in any conduct
authorized pursuant to those permits in relation to the cultivation,
manufacturing, and dispensing of medical cannabis.�

���� (ii)�� In addition, each of
the alternative treatment centers described in subsubparagraph (i) of this
subparagraph, to which the provisions of subparagraph (a) of this paragraph
shall not apply, shall, upon the adoption of the initial rules and regulations
by the commission pursuant to subparagraph (a) of paragraph (1) of subsection
d. of section 6 of P.L.2021, c.16 (C.24:6I-34), be deemed to either
concurrently hold a Class 1 Cannabis Cultivator license, a Class 2 Cannabis
Manufacturer License, a Class 5 Cannabis Retailer license, plus an additional
Class 5 Cannabis Retailer license for each satellite dispensary authorized and
established by the alternative treatment center pursuant to subparagraph (d) of
this paragraph, and a Class 6 Cannabis Delivery license, or hold a Class 3
Cannabis Wholesaler license, and may also be deemed to hold a Class 4 Cannabis
Distributor license.� Any alternative treatment center deemed to hold one or
more licenses as described in this subsubparagraph may begin to operate as any
authorized class of cannabis establishment, or establishment and delivery
service, or as a cannabis wholesaler and distributor, upon receipt of written
approval from the municipality in which the proposed establishment or delivery
service, or distributor is to be located and obtaining an initial license or
licenses, as applicable, issued by the commission pursuant to paragraph (3) of
subsection a. of section 33 of P.L.2021, c.16 (C.24:6I-46).

���� (d) (i)� No entity may be
issued or concurrently hold more than one medical cannabis cultivator permit,
one medical cannabis manufacturer permit, or one medical cannabis dispensary
permit at one time, and no medical cannabis dispensary shall be authorized to
establish a satellite location on or after the effective date of P.L.2019,
c.153 (C.24:6I-5.1 et al.), except that an alternative treatment center that
was issued a permit prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1
et al.) or that was issued a permit after the effective date of P.L.2019, c.153
(C.24:6I-5.1 et al.) pursuant to an application submitted prior to the
effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) shall be authorized to
maintain up to two satellite dispensaries, including any satellite dispensary
that was approved pursuant to an application submitted prior to or within 18
months after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.).� The
three alternative treatment centers issued permits pursuant to section 11 of
P.L.2019, c.153 (C.24:6I-7.1) that are expressly exempt from the provisions of
subsubparagraph (i) of subparagraph (a) of this paragraph shall be authorized
to establish and maintain up to one satellite dispensary location, provided
that the satellite dispensary was approved pursuant to an application submitted
within 18 months after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et
al.).

���� (ii)�� Notwithstanding the
provisions of subsubparagraph (i) of this subparagraph, an investor, investor
group, or fund that provides significant financial or technical assistance or
the significant use of intellectual property, or a combination thereof, to an applicant
for a medical cannabis dispensary permit, which applicant has been certified as
a minority business pursuant to P.L.1986, c.195 (C.52:27H-21.18 et seq.), a
women's business pursuant to P.L.1986, c.195 (C.52:27H-21.18 et seq.), or is a
disabled-veterans' business, as defined in section 2 of P.L.2015, c.116
(C.52:32-31.2), may own up to a 35 percent interest in up to seven entities
that have been issued a medical cannabis dispensary permit, provided that each
such medical cannabis dispensary is a certified minority or women's business or
a disabled-veterans' business, and the terms of the agreement to provide
significant financial or technical assistance or the significant use of
intellectual property, or a combination thereof, whether provided in the form
of equity, a loan, or otherwise, including interest rates, returns, and fees,
are commercially reasonable based on the terms generally provided to comparable
businesses.� The terms of the agreement for the provision of significant
financial or technical assistance or the significant use of intellectual
property, or a combination thereof, may include performance, quality, and other
requirements as a condition of providing the financial or technical assistance
or use of intellectual property.� An applicant for a medical cannabis
dispensary permit that has or will receive significant financial or technical
assistance or the significant use of intellectual property under this
subsubparagraph shall include with the permit application materials submitted to
the commission a copy of the agreement to provide significant financial or
technical assistance or significant use of intellectual property, or a
combination thereof, which agreement shall be subject to review by the
commission as provided in subsection f. of section 11 of P.L.2019, c.153
(C.24:6I-7.1).

���� An applicant for a medical
cannabis dispensary permit that receives significant financial or technical
assistance or the significant use of intellectual property under this
subsubparagraph shall pay back to the investor, investor group, or fund the
full value of the financial or technical assistance or intellectual property
provided under the agreement, plus any applicable interest and fees, in a
period not less than five years after the date of the agreement if the full
value of the assistance or property is less than $100,000, in a period not less
than seven years after the date of the agreement if the full value of the
assistance or property is between $100,001 and $250,000, in a period not less
than 10 years after the date of agreement if the full value of the assistance
or property is between $250,001 and $500,000, and, subject to any terms and
conditions imposed by a lender, in a period not less than 10 years after the
date of the agreement if the full value of the assistance or property is
greater than $500,000.� An investor, investor group, or fund that has acquired
an ownership interest in one or more entities that have been issued a medical
cannabis dispensary permit as authorized under this subsubparagraph may
maintain the ownership interest after the date the full value of the financial
or technical assistance or use of intellectual property provided under the
agreement, plus interest and fees, has been repaid by the applicant that
received the assistance or use of intellectual property.

���� In no case may the controlling
interest in the entity that holds a medical cannabis dispensary permit in which
an investor, investor group, or fund owns an interest as authorized under this
subsubparagraph revert to the investor, investor group, or fund in the event of
a default or failure by the certified minority or women's business or
disabled-veterans' business, as applicable, and any such controlling interest
may only be transferred to a certified minority or women's business or a
disabled-veterans' business.

���� An entity issued a medical
cannabis cultivator, medical cannabis manufacturer, or medical cannabis
dispensary permit, or an individual associated with the ownership or management
of the entity, may participate in an investor group or a fund that meets the
requirements of this subsubparagraph.

���� (e)�� No entity issued a
medical cannabis cultivator, medical cannabis manufacturer, or medical cannabis
dispensary permit may concurrently hold a clinical registrant permit issued
pursuant to section 13 of P.L.2019, c.153 (C.24:6I-7.3), and no entity issued a
clinical registrant permit pursuant to section 13 of P.L.2019, c.153
(C.24:6I-7.3) may concurrently hold a medical cannabis cultivator permit, a
medical cannabis manufacturer permit, or a medical cannabis dispensary permit.

���� (f)�� Any medical cannabis
dispensary permit holder may be approved by the commission to operate a
cannabis consumption area, provided that the permit holder otherwise meets the
requirements of section 28 of P.L.2019, c.153 (C.24:6I-21).

���� (g)�� An alternative treatment
center that was issued a permit prior to the effective date of P.L.2019, c.153
(C.24:6I-5.1 et al.), that was issued a permit after the effective date of
P.L.2019, c.153 (C.24:6I-5.1 et al.) pursuant to an application submitted pursuant
to a request for applications published in the New Jersey Register prior to the
effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), or that was issued a
permit after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.)
pursuant to an application submitted prior to the effective date of P.L.2019,
c.153 (C.24:6I-5.1 et al.), shall be required to submit an attestation signed
by a bona fide labor organization stating that the alternative treatment center
has entered into a labor peace agreement with such bona fide labor organization
no later than 100 days after the effective date of P.L.2019, c.153 (C.24:6I-5.1
et al.) or no later than 100 days after the date the alternative treatment
center first opens, whichever date is later.� The maintenance of a labor peace
agreement with a bona fide labor organization shall be an ongoing material
condition of maintaining the alternative treatment center's permit.� The
failure to submit an attestation as required pursuant to this subparagraph
within 100 days after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et
al.) or within 100 days after the alternative treatment center first opens, as
applicable, shall result in the suspension or revocation of the alternative
treatment center's permit, provided that the commission may grant an extension
to this deadline to the alternative treatment center based upon extenuating
circumstances or for good cause shown.

���� As used in this subparagraph,
"bona fide labor organization" means a labor organization of any kind
or employee representation committee, group, or association, in which employees
participate and which exists and is constituted for the purpose, in whole or in
part, of collective bargaining or otherwise dealing with medical or personal
use cannabis employers concerning grievances, labor disputes, terms or
conditions of employment, including wages and rates of pay, or other mutual aid
or protection in connection with employment, and may be characterized by: it
being a party to one or more executed collective bargaining agreements with
medical or personal use cannabis employers, in this State or another state; it
having a written constitution or bylaws in the three immediately preceding
years; it filing the annual financial report required of labor organizations
pursuant to subsection (b) of 29 U.S.C. s.431, or it having at least one
audited financial report in the three immediately preceding years; it being affiliated
with any regional or national association of unions, including but not limited
to state and federal labor councils; or it being a member of a national labor
organization that has at least 500 general members in a majority of the 50
states of the United States.

���� (h) An alternative treatment
center that was issued a permit prior to the effective date of P.L.2019, c.153
(C.24:6I-5.1 et al.), that was issued a permit after the effective date of
P.L.2019, c.153 (C.24:6I-5.1 et al.) pursuant to an application submitted
pursuant to a request for applications published in the New Jersey Register
prior to the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.), or that
was issued a permit after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et
al.) pursuant to an application submitted prior to the effective date of
P.L.2019, c.153 (C.24:6I-5.1 et al.), shall be permitted to cultivate from up
to two physical locations, provided that the alternative treatment center's
combined mature cannabis plant grow canopy between both locations shall not
exceed 150,000 square feet of bloom space or the square footage of canopy
permitted under the largest tier in the tiered system adopted by the commission
pursuant to paragraph (2) of subsection b. of section 21 of P.L.2021, c.16 (C.24:6I-38).

���� (3)�� The commission shall
seek to ensure the availability of a sufficient number of medical cannabis
cultivators, medical cannabis manufacturers, and medical cannabis dispensaries
throughout the State, pursuant to need, including at least two each in the northern,
central, and southern regions of the State. Medical cannabis cultivators,
medical cannabis manufacturers, and medical cannabis dispensaries issued
permits pursuant to this section may be nonprofit or for-profit entities.�

���� (4)�� The commission shall
periodically evaluate whether the number of medical cannabis cultivator,
medical cannabis manufacturer, and medical cannabis dispensary permits issued
are sufficient to meet the needs of qualifying patients in the State, and shall
accept new applications and issue such additional permits as shall be necessary
to meet those needs.� The types of permits requested and issued, and the
locations of any additional permits that are authorized, shall be in the
discretion of the commission based on the needs of qualifying patients in the
State.

���� (5)�� (a) A medical cannabis
cultivator shall be authorized to: acquire a reasonable initial and ongoing
inventory, as determined by the commission, of cannabis seeds or seedlings and
paraphernalia; possess, cultivate, plant, grow, harvest, and package medical
cannabis, including prerolled forms, for any authorized purpose, including, but
not limited to, research purposes; and deliver, transfer, transport,
distribute, supply, or sell medical cannabis and related supplies to any
medical cannabis cultivator, medical cannabis manufacturer, medical cannabis
dispensary, or clinical registrant in the State.�
[
In no case shall a medical
cannabis cultivator operate or be located on land that is valued, assessed or
taxed as an agricultural or horticultural use pursuant to the "Farmland
Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.)
]
.

���� (b)�� A medical cannabis
manufacturer shall be authorized to: purchase or acquire medical cannabis from
any medical cannabis cultivator, medical cannabis manufacturer, or clinical
registrant in the State; possess and utilize medical cannabis in the
manufacture and creation of medical cannabis products; and deliver, transfer,
transport, supply, or sell medical cannabis products and related supplies to
any medical cannabis manufacturer, medical cannabis dispensary, or clinical
registrant in the State.

���� (c)�� A medical cannabis
dispensary shall be authorized to: purchase or acquire medical cannabis from
any medical cannabis cultivator, medical cannabis dispensary, or clinical
registrant in the State and medical cannabis products and related supplies from
any medical cannabis manufacturer, medical cannabis dispensary, or clinical
registrant in the State; purchase or acquire paraphernalia from any legal
source; and distribute, supply, sell, or dispense medical cannabis, medical
cannabis products, paraphernalia, and related supplies to qualifying patients
or their designated or institutional caregivers who are registered with the
commission pursuant to section 4 of P.L.2009, c.307 (C.24:6I-4).� A medical
cannabis dispensary may furnish medical cannabis, medical cannabis products,
paraphernalia, and related supplies to a medical cannabis handler for delivery
to a registered qualifying patient, designated caregiver, or institutional
caregiver consistent with the requirements of subsection i. of section 27 of
P.L.2019, c.153 (C.24:6I-20).

���� (6)�� A medical cannabis
cultivator shall not be limited in the number of strains of medical cannabis
cultivated, and a medical cannabis manufacturer shall not be limited in the
number or type of medical cannabis products manufactured or created.� A medical
cannabis manufacturer may package, and a medical cannabis dispensary may
directly dispense medical cannabis and medical cannabis products to qualifying
patients and their designated and institutional caregivers in any authorized
form.� Authorized forms shall include dried form, oral lozenges, topical
formulations, transdermal form, sublingual form, tincture form, or edible form,
or any other form as authorized by the commission.� Edible form shall include
pills, tablets, capsules, drops or syrups, oils, chewable forms, and any other
form as authorized by the commission, except that the edible forms made
available to minor patients shall be limited to forms that are medically
appropriate for children, including pills, tablets, capsules, chewable forms,
and drops, oils, syrups, and other liquids.�

���� (7)�� Nonprofit medical
cannabis cultivators, medical cannabis manufacturers, and medical cannabis
dispensaries need not be recognized as a 501(c)(3) organization by the federal
Internal Revenue Service.

���� b.��� The commission shall
require that an applicant provide such information as the commission determines
to be necessary pursuant to regulations adopted pursuant to P.L.2009, c.307
(C.24:6I-1 et al.).

���� c.���� A person who has been
convicted of a crime of the first, second, or third degree under New Jersey law
or of a crime involving any controlled dangerous substance or controlled
substance analog as set forth in chapter 35 of Title 2C of the New Jersey Statutes
except paragraph (11) or (12) of subsection b. of N.J.S.2C:35-5, or paragraph
(3) or (4) of subsection a. of N.J.S.2C:35-10, or any similar law of the United
States or any other state shall not be issued a permit to operate as a medical
cannabis cultivator, medical cannabis manufacturer, medical cannabis
dispensary, or clinical registrant or be a director, officer, or employee of a
medical cannabis cultivator, medical cannabis manufacturer, medical cannabis
dispensary, or clinical registrant, unless such conviction occurred after the
effective date of P.L.2009, c.307 (C.24:6I-1 et al.) and was for a violation of
federal law relating to possession or sale of cannabis for conduct that is
authorized under P.L.2009, c.307 (C.24:6I-1 et al.) or P.L.2015, c.158
(C.18A:40-12.22 et al.).

���� d. (1) The commission shall
require each applicant seeking a permit to operate as, to be a director,
officer, or employee of, or to be a significantly involved person in, a medical
cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary,
or clinical registrant to undergo a criminal history record background check.

���� Any individual seeking to
become a director, officer, or employee of a medical cannabis cultivator,
medical cannabis manufacturer, medical cannabis dispensary, or clinical
registrant, after issuance of an initial permit shall notify the commission and
shall complete a criminal history record background check and provide all
information as may be required by the commission as a condition of assuming a
position as director, officer, or employee of the permitted entity.� An
individual who secures an investment interest or gains the authority to make
controlling decisions in a permitted entity that makes the individual a
significantly involved person shall notify the commission, complete a criminal
history record background check, and provide all information as may be required
by the commission no later than 30 days after the date the individual becomes a
significantly involved person, or any permit issued to the individual or group
of which the significantly involved person is a member shall be revoked and the
individual or group shall be deemed ineligible to hold any ownership or
investment interest in a medical cannabis cultivator, medical cannabis
manufacturer, medical cannabis dispensary, or clinical registrant for a period
of at least two years, commencing from the date of revocation, and for such
additional period of time as the commission deems appropriate, based on the
duration of the nondisclosure, the size of the individual's or group's
investment interest in the permitted entity, the amount of profits, revenue, or
income realized by the individual or group from the permitted entity during the
period of nondisclosure, and whether the individual had a disqualifying
conviction or would otherwise have been deemed ineligible to be a significantly
involved person in a medical cannabis cultivator, medical cannabis
manufacturer, medical cannabis dispensary, or clinical registrant.

���� For purposes of this section,
the term "applicant" shall include any owner, director, officer, or
employee of, and any significantly involved person in, a medical cannabis
cultivator, medical cannabis manufacturer, medical cannabis dispensary, or
clinical registrant.� The commission is authorized to exchange fingerprint data
with and receive criminal history record background information from the
Division of State Police and the Federal Bureau of Investigation consistent
with the provisions of applicable State and federal laws, rules, and
regulations.� The Division of State Police shall forward criminal history
record background information to the commission in a timely manner when
requested pursuant to the provisions of this section.

���� An applicant who is required
to undergo a criminal history record background check pursuant to this section
shall submit to being fingerprinted in accordance with applicable State and
federal laws, rules, and regulations.� No check of criminal history record
background information shall be performed pursuant to this section unless the
applicant has furnished the applicant's written consent to that check.� An
applicant who is required to undergo a criminal history record background check
pursuant to this section who refuses to consent to, or cooperate in, the
securing of a check of criminal history record background information shall not
be considered for a permit to operate, or authorization to be employed at or to
be a significantly involved person in, a medical cannabis cultivator, medical
cannabis manufacturer, medical cannabis dispensary, or clinical registrant.� An
applicant shall bear the cost for the criminal history record background check,
including all costs of administering and processing the check.

���� (2)�� The commission shall not
approve an applicant for a permit to operate, or authorization to be employed
at or to be a significantly involved person in, a medical cannabis cultivator,
medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant
if the criminal history record background information of the applicant reveals
a disqualifying conviction as set forth in subsection c. of this section.

���� (3)�� Upon receipt of the
criminal history record background information from the Division of State
Police and the Federal Bureau of Investigation, the commission shall provide
written notification to the applicant of the applicant's qualification or
disqualification for a permit to operate or be a director, officer, or employee
of, or a significantly involved person in, a medical cannabis cultivator,
medical cannabis manufacturer, medical cannabis dispensary, or clinical
registrant.

���� If the applicant is
disqualified because of a disqualifying conviction pursuant to the provisions
of this section, the conviction that constitutes the basis for the
disqualification shall be identified in the written notice.

���� (4)�� The Division of State
Police shall promptly notify the commission in the event that an individual who
was the subject of a criminal history record background check conducted
pursuant to this section is convicted of a crime or offense in this State after
the date the background check was performed.� Upon receipt of that
notification, the commission shall make a determination regarding the continued
eligibility to operate or be a director, officer, or employee of, or a
significantly involved person in, a medical cannabis cultivator, medical
cannabis manufacturer, medical cannabis dispensary, or clinical registrant.

���� (5)�� Notwithstanding the
provisions of subsection c. of this section to the contrary, the commission may
offer provisional authority for an applicant to be an owner, director, officer,
or employee of, or a significantly involved person in, a medical cannabis cultivator,
medical cannabis manufacturer, medical cannabis dispensary, or clinical
registrant for a period not to exceed three months if the applicant submits to
the commission a sworn statement attesting that the person has not been
convicted of any disqualifying conviction pursuant to this section.

���� (6)�� Notwithstanding the
provisions of subsection c. of this section to the contrary, no applicant to be
an owner, director, officer, or employee of, or a significantly involved person
in, a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis
dispensary, or clinical registrant shall be disqualified on the basis of any
conviction disclosed by a criminal history record background check conducted
pursuant to this section if the individual has affirmatively demonstrated to
the commission clear and convincing evidence of rehabilitation.� In determining
whether clear and convincing evidence of rehabilitation has been demonstrated,
the following factors shall be considered:

���� (a)�� the nature and
responsibility of the position which the convicted individual would hold, has
held, or currently holds;

���� (b)�� the nature and
seriousness of the crime or offense;

���� (c)�� the circumstances under
which the crime or offense occurred;

���� (d)�� the date of the crime or
offense;

���� (e)�� the age of the
individual when the crime or offense was committed;

���� (f)�� whether the crime or
offense was an isolated or repeated incident;

���� (g)�� any social conditions
which may have contributed to the commission of the crime or offense; and

���� (h)�� any evidence of
rehabilitation, including good conduct in prison or in the community,
counseling or psychiatric treatment received, acquisition of additional
academic or vocational schooling, successful participation in correctional
work-release programs, or the recommendation of those who have had the
individual under their supervision.

���� e.���� The commission shall
issue a permit to operate or be an owner, director, officer, or employee of, or
a significantly involved person in, a medical cannabis cultivator, medical
cannabis manufacturer, or medical cannabis dispensary if the commission finds that
issuing such a permit would be consistent with the purposes of P.L.2009, c.307
(C.24:6I-1 et al.) and the requirements of this section and section 11 of
P.L.2019, c.153 (C.24:6I-7.1) are met.� The denial of an application shall be
considered a final agency decision, subject to review by the Appellate Division
of the Superior Court.� A permit to operate a medical cannabis cultivator,
medical cannabis manufacturer, or medical cannabis dispensary issued on or
after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.) shall be valid
for one year and shall be renewable annually.

���� f.���� A person who has been
issued a permit pursuant to this section or a clinical registrant permit
pursuant to section 13 of P.L.2019, c.153 (C.24:6I-7.3) shall display the
permit at the front entrance to the premises of the permitted facility at all
times when the facility is engaged in conduct authorized pursuant to P.L.2009,
c.307 (C.24:6I-1 et al.) involving medical cannabis, including, but not limited
to, the cultivating, manufacturing, or dispensing of medical cannabis.

���� g.��� A medical cannabis
cultivator, medical cannabis manufacturer, medical cannabis dispensary, or
clinical registrant shall report any change in information to the commission
not later than 10 days after such change, or the permit shall be deemed null
and void.

���� h.��� Each medical cannabis
dispensary and clinical registrant shall maintain and make available on its
Internet website, if any, a standard price list that shall apply to all medical
cannabis, medical cannabis products, and related supplies and paraphernalia sold
or dispensed by the medical cannabis dispensary or clinical registrant, which
prices shall be reasonable and consistent with the actual costs incurred by the
medical cannabis dispensary or clinical registrant in connection with acquiring
and selling, transferring, or dispensing the medical cannabis or medical
cannabis product and related supplies and paraphernalia.� The prices charged by
the medical cannabis dispensary or clinical registrant shall not deviate from
the prices indicated on the entity's current price list, provided that a price
list maintained by a medical cannabis dispensary or clinical registrant may
allow for medical cannabis to be made available at a reduced price or without
charge to qualifying patients who have a demonstrated financial hardship, as
that term shall be defined by the commission by regulation.� A price list
required pursuant to this subsection may be revised no more than once per
month, and each medical cannabis dispensary and clinical registrant shall be
responsible for ensuring that the commission has a copy of the facility's
current price list.� A medical cannabis dispensary or clinical registrant shall
be liable to a civil penalty of $1,000 for each sale that occurs at a price
that deviates from the entity's current price list, and to a civil penalty of
$10,000 for each week during which the entity's current price list is not on
file with the commission.� Any civil penalties collected by the commission
pursuant to this section shall be deposited in the "Cannabis Regulatory,
Enforcement Assistance, and Marketplace Modernization Fund" established
under section 41 of P.L.2021, c.16 (C.24:6I-50), and used by the commission for
the purposes of administering the State medical cannabis program.

���� i.���� The commission shall
adopt regulations to:

���� (1)�� require such written
documentation of each delivery or dispensation of cannabis to, and pickup of
cannabis for, a registered qualifying patient, including the date and amount
dispensed, and, in the case of delivery, the date and times the delivery commenced
and was completed, the address where the medical cannabis was delivered, the
name of the patient or caregiver to whom the medical cannabis was delivered,
and the name, handler certification number, and delivery certification number
of the medical cannabis handler who performed the delivery, to be maintained in
the records of the medical cannabis dispensary or clinical registrant, as the
commission determines necessary to ensure effective documentation of the
operations of each medical cannabis dispensary or clinical registrant;

���� (2)�� monitor, oversee, and
investigate all activities performed by medical cannabis cultivators, medical
cannabis manufacturers, medical cannabis dispensaries, and clinical
registrants;

���� (3)�� ensure adequate security
of all facilities 24 hours per day and security of all delivery methods to
registered qualifying patients; and

���� (4)�� establish thresholds for
administrative action to be taken against a medical cannabis cultivator,
medical cannabis manufacturer, medical cannabis dispensary, or clinical
registrant and its employees, officers, investors, directors, or governing
board pursuant to subsection m. of this section, including, but not limited to,
specific penalties or disciplinary actions that may be imposed in a summary
proceeding.

���� j.���� (1) Each medical
cannabis cultivator, medical cannabis manufacturer, medical cannabis
dispensary, and clinical registrant shall require the owners, directors,
officers, and employees at the permitted facility to complete at least eight
hours of ongoing training each calendar year.� The training shall be tailored
to the roles and responsibilities of the individual's job function, and shall
include training on confidentiality and such other topics as shall be required
by the commission.

���� (2)�� Each medical cannabis
dispensary and clinical registrant shall consider whether to make interpreter
services available to the population served, including for individuals with a
visual or hearing impairment.� The commission shall provide assistance to any
medical cannabis dispensary or clinical registrant that seeks to provide such
services in locating appropriate interpreter resources.� A medical cannabis
dispensary or clinical registrant shall assume the cost of providing
interpreter services pursuant to this subsection.

���� k. (1) The first six
alternative treatment centers issued permits following the effective date of
P.L.2009, c.307 (C.24:6I-1 et al.) shall be authorized to sell or transfer such
permit and other assets to a for-profit entity, provided that:� the sale or transfer
is approved by the commission; each owner, director, officer, and employee of,
and significantly involved person in, the entity seeking to purchase or receive
the transfer of the permit, undergoes a criminal history record background
check pursuant to subsection d. of this section, provided that nothing in this
subsection shall be construed to require any individual to undergo a criminal
history record background check if the individual would otherwise be exempt
from undergoing a criminal history record background check pursuant to
subsection d. of this section; the commission finds that the sale or transfer
of the permit would be consistent with the purposes of P.L.2009, c.307
(C.24:6I-1 et al.); and no such sale or transfer shall be authorized more than
one year after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et al.).� The
sale or transfer of a permit pursuant to this subsection shall not be subject
to the requirements of the "New Jersey Nonprofit Corporation Act,"
N.J.S.15A:1-1 et seq., provided that, prior to or at the time of the sale or
transfer, all debts and obligations of the nonprofit entity are either paid in
full or assumed by the for-profit entity purchasing or acquiring the permit, or
a reserve fund is established for the purpose of paying in full the debts and
obligations of the nonprofit entity, and the for-profit entity pays the full
value of all assets held by the nonprofit entity, as reflected on the nonprofit
entity's balance sheet, in addition to the agreed-upon price for the sale or
transfer of the entity's alternative treatment center permit.� Until such time
as the members of the Cannabis Regulatory Commission are appointed and the
commission first organizes, the Department of Health shall have full authority
to approve a sale or transfer pursuant to this paragraph.

���� (2)�� The sale or transfer of
any interest of five percent or more in a medical cannabis cultivator, medical
cannabis manufacturer, medical cannabis dispensary, or clinical registrant
permit shall be subject to approval by the commission and conditioned on the
entity that is purchasing or receiving transfer of the interest in the medical
cannabis cultivator, medical cannabis manufacturer, medical cannabis
dispensary, or clinical registrant permit completing a criminal history record
background check pursuant to the requirements of subsection d. of this section.

���� l.���� No employee of any
department, division, agency, board, or other State, county, or local
government entity involved in the process of reviewing, processing, or making
determinations with regard to medical cannabis cultivator, medical cannabis
manufacturer, medical cannabis dispensary, or clinical registrant permit
applications shall have any direct or indirect financial interest in the
cultivating, manufacturing, or dispensing of medical cannabis or related
paraphernalia, or otherwise receive anything of value from an applicant for a
medical cannabis cultivator, medical cannabis manufacturer, medical cannabis
dispensary, or clinical registrant permit in exchange for reviewing,
processing, or making any recommendations with respect to a permit application.

���� m.�� In the event that a
medical cannabis cultivator, medical cannabis manufacturer, medical cannabis
dispensary, or clinical registrant fails to comply with any requirements set
forth in P.L.2009, c.307 (C.24:6I-1 et al.) or any related law or regulation,
the commission may invoke penalties or take administrative action against the
medical cannabis cultivator, medical cannabis manufacturer, medical cannabis
dispensary, or clinical registrant and its employees, officers, investors,
directors, or governing board, including, but not limited to, assessing fines,
referring matters to another State agency, and suspending or terminating any
permit held by the medical cannabis cultivator, medical cannabis manufacturer,
medical cannabis dispensary, or clinical registrant.� Any penalties imposed or
administrative actions taken by the commission pursuant to this subsection may
be imposed in a summary proceeding.

(cf: P.L.2021, c.252, s.1)

���� 2.� Section 37 of P.L.2021,
c.16 (C.24:6I-49) is amended to read as follows:

���� 37.� Business Treatment of
Cannabis Establishments, Distributors, and Delivery Services.

���� With respect to the business
treatment of cannabis establishments, distributors, and delivery services:

���� a.���� A financial
institution, as defined by section 2 of P.L.1983, c.466 (C.17:16K-2), shall
not, subject to the suspension or revocation of a charter or other available
enforcement action by the Commissioner of Banking and Insurance, engage in any
discriminatory activities with respect to the banking activities of a cannabis
establishment, distributor, or delivery service, or the banking activities of a
person associated with a cannabis establishment, distributor, or delivery
service.

���� b. (1)
[
In no case
shall a cannabis cultivator operate or be located on land that is valued,
assessed or taxed as an agricultural or horticultural use pursuant to the
"Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et
seq.).
]

(Deleted by amendment, P.L.��� , c.�� ) (pending before the Legislature as
this bill)

���� (2) (a) (i) A person or entity
issued a license to operate as a cannabis cultivator, cannabis manufacturer,
cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis
delivery service, or that employs a certified personal use cannabis handler to
perform work for or on behalf of a cannabis establishment, distributor, or
delivery service shall not be eligible for a State or local economic incentive.

���� (ii)�� The issuance of a
license to operate as a cannabis cultivator, cannabis manufacturer, cannabis
wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery
service, or the issuance of a certification to perform work for or on behalf of
a cannabis establishment, distributor, or delivery service to a person or
entity that has been awarded a State or local economic incentive shall
invalidate the right of the person or entity to benefit from the economic
incentive as of the date of issuance of the license or certification.

���� (b) (i) A property owner,
developer, or operator of a project to be used, in whole or in part, by or to
benefit a cannabis cultivator, cannabis manufacturer, cannabis wholesaler,
cannabis distributor, cannabis retailer, or cannabis delivery service, or to
employ a certified personal use cannabis handler to perform work for or on
behalf of a cannabis establishment, distributor, or delivery service, shall not
be eligible for a State or local economic incentive during the period of time
that the economic incentive is in effect.

���� (ii)�� The issuance of a
license to operate as a cannabis cultivator, cannabis manufacturer, cannabis
wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery
service, or issuance of a certification to perform work for or on behalf of a
cannabis establishment, distributor, or delivery service at a location that is
the subject of a State or local economic incentive shall invalidate the right
of a property owner, developer, or operator to benefit from the economic
incentive as of the date of issuance of the license or certification.

���� c.���� As used in this
section:

���� (1) "Small business"
means any business which has its principal place of business in this State, is
independently owned and operated, and employs the equivalent of fewer than 250
full-time employees.

���� (2) "State or local
economic incentive" means a financial incentive awarded by the State
pursuant to the "New Jersey Economic Recovery Act of 2020," P.L.2020,
c.156 (C.34:1B-269 et al.), any political subdivision of the State, or any agency
or instrumentality of a political subdivision of the State, to any
non-governmental person, association, for-profit or non-profit corporation,
joint venture, limited liability company, partnership, sole proprietorship, or
other form of business organization or entity agreed to between the government
and non-governmental parties, for the purpose of stimulating economic
development or redevelopment in New Jersey including, but not limited to, a
bond, grant, loan, loan guarantee, matching fund, tax credit, or other tax expenditure.�
"State or local economic incentive" shall not include:

���� (a) financial incentives
awarded pursuant to a program created by the New Jersey Economic Development
Authority for the purpose of providing financial or technical assistance to a
prospective or licensed cannabis cultivator, cannabis manufacturer, cannabis
wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery
service that qualifies as a small business if the program created by the
authority:

���� (i) requires a portion of any
funds made available under the program to be reserved for businesses operating
within an impact zone as defined in paragraph (1) of subsection e. of section
19 of P.L.2021, c.16 (C.24:6I-36); or

���� (ii) is funded in whole or in
part through an appropriation of monies derived from the Social Equity Excise
Fee pursuant to section 39 of P.L.2021, c.16 (C.54:47F-1) and provides that the
monies appropriated from the Social Equity Excise Fee shall be restricted to
businesses operating within an impact zone as defined in paragraph (1) of
subsection e. of section 19 of P.L.2021, c.16 (C.24:6I-36); and

���� (b) funding made available by
the Department of Labor and Workforce Development for on-the-job training.

(cf: P.L.2022, c.48)

���� 3.��� This act shall take
effect immediately.

STATEMENT

���� This bill permits cannabis to
be cultivated on land receiving a farmland assessment.

���� Current law prohibits medical
and recreational cannabis from being cultivated on land that is valued,
assessed, or taxed as an agricultural or horticultural use pursuant to the
Farmland Assessment Act of 1964.� This bill eliminates this prohibition.