Makes certain changes related to application and licensing for sale of cannabis, Cannabis Regulatory Commission activity, municipal ordinances, and alternative treatment centers.

A2115

ASSEMBLY, No. 2115

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman LINDA S. CARTER

District 22 (Somerset and Union)

Assemblywoman VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Makes certain changes related to application and
licensing for sale of cannabis, Cannabis Regulatory Commission activity,
municipal ordinances, and alternative treatment centers.

CURRENT VERSION OF TEXT

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

��

An Act
concerning cannabis regulation, amending P.L.2019,
c.153 and P.L.2021, c.16 and supplementing Title 24 of the Revised Statutes.

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

���� 1.��� Section 11 of P.L.2019,
c.153 (C.24:6I-7.1) is amended to read as follows:

���� 11. a. The commission shall,
no later than 90 days after the effective date of P.L.2019, c.153 (C.24:6I-5.1
et al.) or upon adoption of rules and regulations as provided in subsection c.
of section 18 of P.L.2009, c.307 (C.24:6I-16), whichever occurs later, begin
accepting and processing applications for new medical cannabis cultivator,
medical cannabis manufacturer, and medical cannabis dispensary permits.�
Notwithstanding the provisions of subsubparagraph (i) of subparagraph (a) of
paragraph (2) of subsection a. of section 7 of P.L.2009, c.307 (C.24:6I-7), the
first three alternative treatment center permits issued by the commission
pursuant to an application submitted on or after the effective date of
P.L.2019, c.153 (C.24:6I-5.1 et al.) and up to four alternative treatment
centers permits issued by the commission 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.) shall be deemed to concurrently
hold a medical cannabis cultivator permit, a medical cannabis manufacturer
permit, and a medical cannabis dispensary permit; of these permits, one permit
shall be issued to an applicant located in the northern region of the State,
one permit shall be issued to an applicant located in the central region of the
State, and one permit shall be issued to an applicant located in the southern
region of the State.� Any permits issued by the commission thereafter shall be
subject to the provisions of subsubparagraph (i) of subparagraph (a) of
paragraph (2) of subsection a. of section 7 of P.L.2009, c.307 (C.24:6I-7), and
the requirements of subsection d. of this section concerning conditional
permits.

���� b.��� The commission may
establish nonrefundable application fees for permit applications and
conditional permit applications, and permit and conditional permit fees for
successful applicants.

���� c.���� (1) The commission
shall make a determination as to any permit application, other than an
application for a conditional permit submitted pursuant to subsection d. of
this section, no later than 90 days after receiving the application, which may
include a determination that the commission reasonably requires more time to
adequately review the application.�
If the commission determines that more
time is required to adequately review an application, the commission shall, not
more than 30 days after a determination for more time for review, make a
determination as to whether the application is approved or denied.
�

���� (2)�� The commission shall
issue a permit, other than a conditional permit, to an approved applicant at
such time as the commission completes the application review process and any
mandatory inspections, and determines that the applicant is in compliance with and
is implementing the plans, procedures, protocols, actions, or other measures
set forth in the applicant's permit application submitted pursuant to section
12 of P.L.2019, c.153 (C.24:6I-7.2), did maintain compliance with the terms,
conditions, or restrictions of a conditional permit issued to the applicant, if
applicable, and is otherwise in compliance with the requirements of P.L.2009,
c.307 (C.24:6I-1 et al.).

���� d. (1) The commission shall
ensure that at least one third of the total permits issued for each type of
medical cannabis permit are conditional permits, which one-third figure shall
include any conditional permit issued to an applicant which is subsequently
converted by the commission into a full permit pursuant to paragraph (4) of
this subsection and any conditional permit, including a converted permit,
issued to a microbusiness pursuant to subsection e. of this section.� The
requirements of this subsection shall not apply to permits issued to clinical
registrants or to permits issued to the three alternative treatment centers
issued a permit pursuant to subsection a. of this section that are expressly
exempt from the provisions of subsubparagraph (i) of subparagraph (a) of
paragraph (2) of subsection a. of section 7 of P.L.2009, c.307 (C.24:6I-7).

���� (2)�� An application for a
conditional permit shall include:

���� (a)�� documentation that the
applicant entity includes at least one significantly involved person who has
resided in this State for at least two years as of the date of the application;

���� (b)�� a list of all owners,
officers, directors, and employees of, and significantly involved persons in,
the proposed medical cannabis entity, including their names, addresses, dates
of birth, resumes, and a photocopy of their driver's licenses or other government-issued
form of identification;

���� (c)�� a criminal history
record background check completed pursuant to subsection d. of section 7 of
P.L.2009, c.307 (C.24:6I-7) for each owner, officer, director, and employee of,
and each significantly involved person in, the proposed medical cannabis entity,
provided that a conditional permit may be issued pending the results of a
criminal history record background check;

���� (d)�� documentation that each
significantly involved person in the proposed medical cannabis entity has, for
the immediately preceding taxable year, an adjusted gross income of no more
than $200,000 or no more than $400,000 if filing jointly with another;

���� (e)�� a certification that
each significantly involved person in the proposed medical cannabis entity does
not have any financial interest in an entity applying for any other medical
cannabis permit, or in an entity that currently holds a permit issued pursuant
to section 7 of P.L.2009, c.307 (C.24:6I-7);

���� (f)�� the federal and State
tax identification numbers for the proposed medical cannabis entity, and proof
of business registration with the Division of Revenue in the Department of the
Treasury;

���� (g)�� information about the
proposed medical cannabis entity, including its legal name, any registered
alternate name under which it may conduct business, and a copy of its articles
of organization and bylaws;

���� (h)�� the business plan and
management operation profile for the proposed medical cannabis entity;

���� (i)��� the plan by which the
applicant intends to obtain appropriate liability insurance coverage for the
proposed medical cannabis entity; and

���� (j)��� any other requirements
established by the commission pursuant to regulation.

���� (3)�� The commission shall
make a determination on an application for a conditional permit within 30 days
after the date the application is received.� A determination made pursuant to
this paragraph may include a determination that the commission requires more
time to adequately review the application.�
If the commission determines
that more time is required to adequately review an application, the commission
shall, not more than 30 days after a determination for more time for review,
make a determination as to whether the application is approved or denied.
�
The commission shall approve a permit application that meets the requirements
of this subsection unless the commission finds by clear and convincing evidence
that the applicant would be manifestly unsuitable to perform the activities
authorized for the permit sought by the applicant.� The commission shall deny a
conditional permit to any applicant who fails to provide information,
documentation, and assurances as required by this subsection; who fails to
reveal any fact material to qualification; or who supplies information that is
untrue or misleading as to a material fact pertaining to the qualification
criteria for issuance of a conditional permit.� If the application is denied,
the commission shall notify the applicant in writing of the specific reason for
its denial and provide the applicant with the opportunity for a hearing in
accordance with the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.).

���� (4)�� The commission shall
furnish to each entity issued a conditional permit a list of the requirements
that the entity will be required to comply with within 120 days after issuance
of the conditional permit.� If the commission subsequently determines that, during
the 120-day period, the conditional permit holder is in compliance with all
applicable conditions and is implementing the plans, procedures, protocols,
actions, or other measures set forth in its application, the commission shall
convert the conditional permit into a full permit, which will expire one year
from its date of issuance and be subject to annual renewal; if the commission
determines that the conditional permit holder is not in compliance with all
applicable conditions or not implementing the plans, procedures, protocols,
actions, or other measures set forth in its application, the conditional permit
shall automatically expire at the end of the 120-day period, or, at the
discretion of the commission, may be revoked prior to the end of the 120-day
period.

���� (5)�� A conditional permit
issued pursuant this subsection may not be sold or transferred.

���� e.���� (1) The commission
shall ensure that at least 10 percent of the total permits issued for each
medical cannabis permit type, other than a clinical registrant permit, are
designated for and only issued to microbusinesses, and that at least 25 percent
of the total permits issued be issued to microbusinesses.� A microbusiness may
be issued a full annual permit pursuant to section 7 of P.L.2009, c.307
(C.24:6I-7) or a conditional permit pursuant to subsection d. of this section.�
The maximum fee assessed by the commission for issuance or renewal of a permit
issued to a microbusiness shall be no more than half the fee applicable to a
permit of the same type issued to a person or entity that is not a
microbusiness.� A permit issued to a microbusiness shall be valid for one year
and may be renewed annually.

���� (2)�� A microbusiness shall
meet the following requirements:

���� (a)�� 100 percent of the
ownership interest in the microbusiness shall be held by current New Jersey
residents who have resided in the State for at least the past two consecutive
years;

���� (b)�� at least 51 percent of
the owners, directors, officers, and employees of the microbusiness shall be
residents of the municipality in which the microbusiness is or will be located,
or a municipality bordering the municipality in which the microbusiness is or
will be located;

���� (c)�� the microbusiness shall
employ no more than 10 employees at one time, inclusive of any owners,
officers, and directors of the microbusiness;

���� (d)�� the microbusiness shall
not exceed the following size and capacity restrictions:

���� (i)��� the entire
microbusiness facility shall occupy an area of no more than 2,500 square feet;

���� (ii)�� in the case of a
microbusiness that is a medical cannabis cultivator, the total medical cannabis
grow area shall not exceed 2,500 square feet, measured on a horizontal plane,
shall grow no higher than 24 feet above that plane, and shall possess a total of
no more than 1,000 plants, including mature and immature medical cannabis
plants, but not including seedlings;

���� (iii) in the case of a
microbusiness that is a medical cannabis manufacturer, the manufacturer shall
acquire and process no more than 1,000 pounds of medical cannabis in dried form
each month; and

���� (iv)� in the case of a
microbusiness that is a medical cannabis dispensary, the dispensary shall
acquire no more than 1,000 pounds of medical cannabis in dried form, or the
equivalent amount in any other form, or any combination thereof, for dispensing
to or on behalf of registered qualifying patients each month; and

���� (e)�� the microbusiness shall
comply with such other requirements as may be established by the commission by
regulation.

���� (3)�� The requirements of this
subsection shall not apply to permits issued 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.).

���� f.���� The commission shall
have the authority to review any services agreement submitted pursuant to
subsection l. of section 12 of P.L.2019, c.153 (C.24:6I-7.2), and any agreement
established under subsubparagraph (ii) of subparagraph (d) of paragraph (2) of subsection
a. of section 7 of P.L.2009, c.307 (C.24:6I-7) to provide significant financial
or technical assistance or the significant use of intellectual property to an
applicant, to determine whether the terms of the agreement, including interest
rates, returns, and fees, are commercially reasonable and consistent with the
fair market value for the terms generally applicable to agreements of a
comparable nature.� In the event the commission determines the terms of an
agreement are not commercially reasonable or consistent with the fair market
value generally applicable to the services to be provided under the agreement,
the commission shall have the authority to withhold approval of the permit
application until the parties renegotiate a new agreement that, as determined
by the commission, is commercially reasonable and consistent with the fair
market value for the terms generally applicable to agreements of a comparable
nature.� The parties to the agreement may request that the commission provide
guidance as to what terms it would find to be commercially reasonable and
consistent with the fair market value generally applicable to agreements of a
comparable nature.� Nothing in this subsection shall be construed to require
the commission to award a permit to an applicant if the commission determines
the applicant does not otherwise meet the requirements for issuance of the
permit.

(cf: P.L.2021, c.252, s.2)

���� 2.��� Section 13 of P.L.2019,
c.153 (C.24:6I-7.3) is amended to read as follows:

���� 13. a. The commission shall
issue clinical registrant permits to qualified applicants that meet the
requirements of this section.� In addition to any other requirements as the
commission establishes by regulation regarding application for and issuance of
a clinical registrant permit, each clinical registrant applicant shall:

���� (1)�� complete a criminal
history record background check that meets the requirements of subsection d. of
section 7 of P.L.2009, c.307 (C.24:6I-7);

���� (2)�� submit to the commission
any required application and permit fees;

���� (3)�� submit to the commission
written documentation of an existing contract with an academic medical center
that meets the requirements of subsection c. of this section; and

���� (4)�� submit to the commission
documentation that the applicant has a minimum of $15 million in capital.

���� b.��� The commission shall, no
later than 90 days after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et
al.) or upon adoption of rules and regulations as provided in subsection c. of
section 18 of P.L.2009, c.307 (C.24:6I-16), whichever occurs first, begin
accepting and processing applications for five clinical registrant permits.
Thereafter, the commission shall accept applications for and issue such
additional clinical registrant permits as it determines to be necessary and
consistent with the provisions of P.L.2009, c.307 (C.24:6I-1 et al.).� The
commission shall make a determination as to a clinical registrant permit
application no later than 90 days after receiving the application, which may
include a determination that the commission reasonably requires more time to
adequately review the application.�
If the commission determines that more
time is required to adequately review an application, the commission shall, not
more than 30 days after a determination for more time for review, make a
determination as to whether the application is approved or denied.

���� In reviewing and approving
applications for clinical registrant permits, the commission shall seek to
incorporate the policies, practices, protocols, standards, and criteria
developed by the Office of Minority, Disabled Veterans, and Women Cannabis
Business Development pursuant to section 32 of P.L.2019, c.153 (C.24:6I-25) to
promote participation in the medical cannabis industry by persons from socially
and economically disadvantaged communities.� In no case shall the commission
accept, process, or approve an application submitted by an applicant that has
contracted with an academic medical center that is part of a health care system
that includes another academic medical center that has contracted with an
applicant for, or a holder of, a clinical registrant permit.�

���� c.���� A contract between a
clinical registrant and an academic medical center shall include a commitment
by the academic medical center, or its affiliate, to engage in or oversee
clinical research related to the use or adverse effects of cannabis in order to
advise the clinical registrant concerning patient health and safety, medical
applications, dispensing and management of controlled substances, and ways to
mitigate adverse health or societal effects of adult, personal use
legalization, among other areas.� A clinical registrant issued a permit
pursuant to this section shall have a written contractual relationship with no
more than one academic medical center.

���� d.��� A clinical registrant
issued a permit pursuant to this section shall be authorized to engage in all
conduct involving the cultivation, manufacturing, and dispensing of medical
cannabis as is authorized for an entity holding medical cannabis cultivator, medical
cannabis manufacturer, and medical cannabis dispensary permits pursuant to
P.L.2009, c.307 (C.24:6I-1 et al.), including dispensing medical cannabis and
medical cannabis products to qualifying patients and designated and
institutional caregivers.� The clinical registrant shall additionally be
authorized to engage in clinical research involving medical cannabis using
qualifying patients who consent to being part of such research, subject to any
restrictions established by the commission.

���� e. (1) A clinical registrant
issued a permit pursuant to this section may conduct authorized activities
related to medical cannabis at more than one physical location, provided that
each location is approved by the commission and is in the same region in which
the academic medical center with which the clinical registrant has a contract
is located.

���� (2)�� A clinical registrant
may apply to the commission for approval to relocate an approved facility to
another location in the same region, which application shall be approved unless
the commission makes a specific determination that the proposed relocation would
be inconsistent with the purposes of P.L.2009, c.307 (C.24:6I-1 et al.).� The
denial of an application for relocation submitted pursuant to this paragraph
shall be considered a final agency decision, subject to review by the Appellate
Division of the Superior Court.

���� (3)�� The commission may
authorize a clinical registrant to dispense medical cannabis and medical
cannabis products from more than one physical location if the commission
determines that authorizing additional dispensing locations is necessary for
the clinical registrant to best serve and treat qualifying patients and
clinical trial participants.

���� (4)�� In no case shall a
clinical registrant 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.).�

���� f.���� A clinical registrant
permit shall not be sold or transferred to any other entity.

���� g.��� Clinical registrant
permits shall be valid for the term of the contractual relationship between the
academic medical center and the clinical registrant.� The commission may renew
a clinical registrant permit to correspond to any renewal of the contractual
relationship between the academic medical center and the clinical registrant.

���� h.��� Each clinical registrant
shall submit the results of the clinical research obtained through an approved
clinical registrant permit to the commission no later than one year following
the conclusion of the research study or publication of the research study in a
peer-reviewed medical journal.� Nothing in this subsection shall be deemed to
require the disclosure of any clinical research that would infringe on the
intellectual property of the clinical registrant or on the confidentiality of
patient information.

���� i.���� Application materials
submitted to the commission pursuant to this section shall not be considered a
public record pursuant to P.L.1963, c.73 (C.47:1A-1 et seq.), P.L.2001, c.404
(C.47:1A-5 et al.), or the common law concerning access to records.

(cf: P.L.2021, c.16, s.17)

���� 3.��� Section 19 of P.L.2021,
c.16 (C.24:6I-36) is amended to read as follows:

���� 19.� Application For License
or Conditional License.

���� a.���� Each application for an
annual license to operate a cannabis establishment, distributor, or delivery
service, or conditional license for a proposed cannabis establishment,
distributor, or delivery service, shall be submitted to the commission.� A
separate license or conditional license shall be required for each location at
which a cannabis establishment seeks to operate, or for the location of each
premises from which a cannabis distributor or delivery service seeks to
operate. Renewal applications for another annual license shall be filed no
later than 90 days prior to the expiration of the establishment's,
distributor's, or delivery service's license. A conditional license shall not
be renewed, but replaced with an annual license upon the commission's determination
of qualification for the annual license, or otherwise expire, as set forth in
paragraph (2) of subsection b. of this section.

���� b. (1) Regarding the
application for and issuance of annual licenses, the commission shall:

���� (a)�� begin accepting and
processing applications within 30 days after the commission's initial rules and
regulations have been adopted pursuant to subparagraph (a) of paragraph (1) of
subsection d. of section 6 of P.L.2021, c.16 (C.24:6I-34);

���� (b)�� forward, within 14 days
of receipt, a copy of each application to the municipality in which the
applicant desires to operate the cannabis establishment, distributor, or
delivery service; and

���� (c)�� verify the information
contained in the application and review the qualifications for the applicable
license class, set forth in section 20, 22, 23, 24, 25, or 26 of P.L.2021, c.16
(C.24:6I-37, C.24:6I-39, C.24:6I-40, C.24:6I-41, C.24:6I-42, or C.24:6I-43),
and regulations concerning qualifications for licensure promulgated by the
commission for which the applicant seeks licensure, and not more than 90 days
after the receipt of an application, make a determination as to whether the
application is approved or denied, or that the commission requires more time to
adequately review the application.�
If the commission determines that more
time is required to adequately review an application, the commission shall, not
more than 30 days after a determination for more time for review, make a
determination as to whether the application is approved or denied.

���� The commission shall deny a
license application to any applicant who fails to provide information,
documentation and assurances as required by P.L.2021, c.16 (C.24:6I-31 et al.)
or as requested by the commission, or who fails to reveal any material fact to
qualification, or who supplies information which is untrue or misleading as to
a material fact pertaining to the qualification criteria for licensure.� The
commission shall approve a license application that meets the requirements of
this section unless the commission finds by clear and convincing evidence that
the applicant would be manifestly unsuitable to perform the activities for the
applicable license class for which licensure is sought.

���� (i)��� If the application is
approved, upon collection of the license fee, the commission shall issue an
annual license to the applicant no later than 30 days after giving notice of
approval of the application unless the commission finds the applicant is not in
compliance with regulations for annual licenses enacted pursuant to the
provisions of paragraph (1) of subsection d. of section 6 of P.L.2021, c.16
(C.24:6I-34) or the commission is notified by the relevant municipality that
the applicant is not in compliance with ordinances and regulations made
pursuant to the provisions of section 31 of P.L.2021, c.16 (C.24:6I-45) and in
effect at the time of application, provided, if a municipality has enacted a
numerical limit on the number of cannabis establishments, distributors, or
delivery services and a greater number of applicants seek licenses, the
commission shall solicit and consider input from the municipality as to the
municipality's preference or preferences for licensure.

���� (ii)�� If the application is
denied, the commission shall notify the applicant in writing of the specific
reason for its denial, and provide the applicant with the opportunity for a
hearing in accordance with the "Administrative Procedure Act, P.L.1968, c.410
(C.52:14B-1 et seq.).

���� (2)�� Regarding the
application for and issuance of conditional licenses, the commission shall:

���� (a)�� begin accepting and
processing applications from applicants within 30 days after the commission's
initial rules and regulations have been adopted pursuant to subparagraph (a) of
paragraph (1) of subsection d. of section 6 of P.L.2021, c.16 (C.24:6I-34), and
ensure that at least 35 percent of the total licenses issued for each class of
cannabis establishment, and for cannabis distributors and delivery services,
are conditional licenses, which 35 percent figure shall also include any
conditional license issued to an applicant which is subsequently replaced by
the commission with an annual license due to that applicant's compliance for
the annual license pursuant to subsubparagraph (i) of subparagraph (d) of this
paragraph;

���� (b)�� forward, within 14 days
of receipt, a copy of each application to the municipality in which the
applicant desires to operate a proposed cannabis establishment, or to the
municipality in which the premises is located from which the applicant desires
to operate a proposed cannabis distributor or delivery service; and

���� (c)�� verify the information
contained in the application and review the following qualifications for a
conditional license:

���� (i)��� that the application
include at least one significantly involved person who has resided in this
State for at least two years as of the date of the application;

���� (ii)�� a listing included with
the application, showing all persons with a financial interest who also have
decision making authority for the proposed cannabis establishment, distributor,
or delivery service detailed in the application;

���� (iii) proof that the
significantly involved person and any other person with a financial interest
who also has decision making authority for the proposed cannabis establishment,
distributor, or delivery service is 21 years of age or older;

���� (iv)� the name, address, date
of birth, and resumes of each executive officer, all significantly involved
persons, and persons with a financial interest who also have decision making
authority for the proposed cannabis establishment, distributor, or delivery service,
as well as a photocopy of their driver's licenses or other government-issued
form of identification, plus background check information in a form and manner
determined by the commission in consultation with the Superintendent of State
Police; concerning the background check, an application shall be denied if any
person has any disqualifying conviction pursuant to subparagraph (c) of
paragraph (4) of subsection a. of section 20, 22, 23, 24, 25 or 26 of P.L.2021,
c.16 (C.24:6I-37, C.24:6I-39, C.24:6I-40, C.24:6I-41, C.24:6I-42, or
C.24:6I-43), based upon the applicable class of cannabis establishment for
which the application was submitted, or based upon the application being for a
cannabis distributor or delivery service, unless the commission determines
pursuant to subsubparagraph (ii) of those subparagraphs that the conviction
should not disqualify the application;

���� (v)�� proof that each person
with a financial interest who also has decision making authority for the
proposed cannabis establishment, distributor, or delivery service has, for the
immediately preceding taxable year, an adjusted gross income of no more than $200,000
or no more than $400,000 if filing jointly with another;

���� (vi)� a certification that
each person with a financial interest who also has decision making authority
for the proposed cannabis establishment, distributor, or delivery service does
not have any financial interest in an application for an annual license under
review before the commission or a cannabis establishment, distributor, or
delivery service that is currently operating with an annual license;

���� (vii) the federal and State
tax identification numbers for the proposed cannabis establishment,
distributor, or delivery service, and proof of business registration with the
Division of Revenue in the Department of the Treasury;

���� (viii) information about the
proposed cannabis establishment, distributor, or delivery service including its
legal name, any registered alternate name under which it may conduct business,
and a copy of its articles of organization and bylaws;
and

����
[
(ix)����������� the business plan
and management operation profile for the proposed cannabis establishment,
distributor, or delivery service;
]

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

����
[
(x) the plan by which the
applicant intends to obtain appropriate liability insurance coverage for the
proposed cannabis establishment, distributor, or delivery service; and
]

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

���� (xi)� any other requirements
established by the commission pursuant to regulation; and

���� (d)�� not more than 30 days
after the receipt of an application, make a determination as to whether the
application is approved or denied, or that the commission requires more time to
adequately review the application.�
If the commission determines that more
time is required to adequately review an application, the commission shall, not
more than 30 days after a determination for more time for review, make a
determination as to whether the application is approved or denied.

���� The commission shall deny a
conditional license application to any applicant who fails to provide
information, documentation and assurances as required by P.L.2021, c.16
(C.24:6I-31 et al.) or as requested by the commission, or who fails to reveal
any material fact to qualification, or who supplies information which is untrue
or misleading as to a material fact pertaining to the qualification criteria
for licensure.� The commission shall approve a license application that meets
the requirements of this section unless the commission finds by clear and
convincing evidence that the applicant would be manifestly unsuitable to
perform the activities for the applicable license class for which conditional
licensure is sought.

���� (i)��� If the application is
approved, upon collection of the conditional license fee, the commission shall
issue a conditional license to the applicant, which is non-transferable for its
duration, no later than 30 days after giving notice of approval of the application,
unless the commission finds the applicant is not in compliance with regulations
for conditional licenses enacted pursuant to the provisions of paragraph (1) of
subsection d. of section 6 of P.L.2021, c.16 (C.24:6I-34) or the commission is
notified by the relevant municipality that the applicant is not in compliance
with ordinances and regulations made pursuant to the provisions of section 31
of P.L.2021, c.16 (C.24:6I-45) and in effect at the time of application,
provided, if a municipality has enacted a numerical limit on the number of
marijuana cannabis establishments, distributors, or delivery services and a
greater number of applicants seek licenses, the commission shall solicit and
consider input from the municipality as to the municipality's preference or
preferences for licensure.� For each license issued, the commission shall also
provide the approved licensee with documentation setting forth the remaining
conditions to be satisfied under section 20, 22, 23, 24, 25, or 26 of P.L.2021,
c.16 (C.24:6I-37, C.24:6I-39, C.24:6I-40, C.24:6I-41, C.24:6I-42, or
C.24:6I-43), or relevant regulations, based upon the applicable class of
cannabis establishment for which the conditional license was issued, or based
upon the conditional license issued for a cannabis distributor or delivery
service, and which were not already required for the issuance of that license,
to be completed within 120 days of issuance of the conditional license, which
period may be extended upon request to the commission for
[
an
]
additional
[
period
]

periods

[
of up
to 45 days
]

at the discretion of the commission.� If the commission subsequently determines
during that 120-day period, or during any additional period granted, that the
conditional licensee is in compliance with all applicable conditions and is
implementing the plans, procedures, protocols, actions, or other measures set
forth in its application, the commission shall replace the conditional license
by issuing an annual license, which will expire one year from its date of issuance;
if the conditional licensee is not in compliance with all applicable conditions
or not implementing the plans, procedures, protocols, actions, or other
measures set forth in its application, the conditional license shall
automatically expire at the end of the 120-day period, or at the end of any
additional period granted by the commission;

���� (ii)�� If the application is
denied, the commission shall notify the applicant in writing of the specific
reason for its denial, provide with this written notice a refund of 80 percent
of the application fee submitted with the application, and provide the applicant
with the opportunity for a hearing in accordance with the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.);

���� c.���� The commission shall
require all applicants for cannabis licenses, other than applicants for a
conditional license for any class of cannabis establishment, or for a cannabis
distributor or delivery service, or for either a conditional or annual license
for an establishment, distributor, or delivery service that is a microbusiness
pursuant to subsection f. of this section, to submit an attestation signed by a
bona fide labor organization stating that the applicant has entered into a
labor peace agreement with such bona fide labor organization.� The maintenance
of a labor peace agreement with a bona fide labor organization by a licensed
cannabis establishment, distributor, or delivery service, other than an
establishment that is a microbusiness, shall be an ongoing material condition
of the establishment's, distributor's, or delivery service's license.� The
submission of an attestation and maintenance of a labor peace agreement with a
bona fide labor organization by an applicant issued a conditional license for a
cannabis establishment, distributor, or delivery service, other than an
establishment that is a microbusiness, shall be a requirement for final
approval for an annual license.� Failure to enter, or to make a good faith
effort to enter, into a collective bargaining agreement within 200 days of the
opening of a licensed cannabis establishment, distributor, or delivery service,
other than an establishment that is a microbusiness, shall result in the
suspension or revocation of the establishment's, distributor's, or delivery
service's license.

���� As used in this subsection,
"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.

���� d. (1)
[
Each license
application shall be scored and reviewed based upon a point scale with the
commission determining the amount of points, the point categories, and the
system of point distribution by regulation.� The commission shall assign points
and rank applicants according to the point system.� The commission may,
pursuant to a process set forth in regulation and consistent with this
subsection, adjust the point system or utilize a separate point system and
rankings with respect to the review of an application for which a conditional
license is sought, or for which a microbusiness license is sought. If two or
more eligible applicants have the same number of points, those applicants shall
be grouped together and, if there are more eligible applicants in this group
than the remaining number of licenses available, the commission shall utilize a
public lottery to determine which applicants receive a license or conditional
license, as the case may be.
]

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

���� (a)�� An initial application
for licensure shall be evaluated according to criteria to be developed by the
commission.�
[
There
shall be included bonus points for applicants who are residents of New Jersey.
]

���� (b)�� The criteria to be
developed by the commission pursuant to subparagraph (a) of this paragraph
[
shall
]

may

include, in addition to the criteria set forth in subparagraphs (c) and (d) of
this paragraph and any other criteria developed by the commission, an analysis
of the applicant's operating plan, excluding safety and security criteria,
which
[
shall
]

may

include the following:

���� (i)��� In the case of an
applicant for a cannabis cultivator license, the operating plan summary shall
include a written description concerning the applicant's qualifications for,
experience in, and knowledge of each of the following topics:

���� - cultivation of cannabis;

���� - conventional horticulture or
agriculture, familiarity with good agricultural practices, and any relevant
certifications or degrees;

���� - quality control and quality
assurance;

���� - recall plans;

���� - packaging and labeling;

���� - inventory control and
tracking software or systems for the production of personal use cannabis;

���� - analytical chemistry and
testing of cannabis;

���� - water management practices;

���� - odor mitigation practices;

���� - onsite and offsite
recordkeeping;

���� - strain variety and plant
genetics;

���� - pest control and disease
management practices, including plans for the use of pesticides, nutrients, and
additives;

���� - waste disposal plans; and

���� - compliance with applicable
laws and regulations.

���� (ii)�� In the case of an
applicant for a cannabis manufacturer license, or, as applicable, a cannabis
wholesaler license, cannabis distributor license, or cannabis delivery service
license,
the commission may require that
the operating plan summary
[
shall
]
include a
written description concerning the applicant's qualifications for, experience
in, and knowledge of each of the following topics:

���� - manufacture and creation of
cannabis products using appropriate extraction methods, including intended use
and sourcing of extraction equipment and associated solvents or intended
methods and equipment for non-solvent extraction;

���� - quality control and quality
assurance;

���� - recall plans;

���� - packaging and labeling;

���� - inventory control and
tracking software or systems for the manufacturing, warehousing,
transportation, or delivery of cannabis and cannabis items;

���� - analytical chemistry and
testing of cannabis items;

���� - water management practices;

���� - odor mitigation practices;

���� - onsite and offsite
recordkeeping;

���� - a list of product
formulations or products proposed to be manufactured with estimated cannabinoid
profiles, if known, including varieties with high cannabidiol content;

���� - intended use and sourcing of
all non-cannabis ingredients used in the manufacture and creation of cannabis
products, including methods to verify or ensure the safety and integrity of
those ingredients and their potential to be or contain allergens;

���� - waste disposal plans; and

���� - compliance with applicable
laws and regulations.

���� (iii)� In the case of an
applicant for a cannabis retailer license, the
commission may require that
the
operating plan summary
[
shall
]
include a
written description concerning the applicant's qualifications for, experience
in, and knowledge of each of the following topics:

���� - sales of cannabis items to
consumers;

���� - cannabis product evaluation
procedures;

���� - recall plans;

���� - packaging and labeling;

���� - inventory control and
point-of-sale software or systems for the sale of cannabis items;

���� - the routes of
administration, strains, varieties, and cannabinoid profiles of cannabis and
cannabis items;

���� - odor mitigation practices;

���� - onsite and offsite
recordkeeping;

���� - waste disposal plans; and

���� - compliance with applicable
laws and regulations.

���� (c)�� The criteria to be
developed by the commission pursuant to subparagraph (a) of this paragraph
[
shall
]

may

include, in addition to the criteria set forth in subparagraphs (b) and (d) of
this paragraph and any other criteria developed by the commission, an analysis
of the following factors, if applicable:

���� (i)��� The applicant's
environmental impact plan.

���� (ii)�� A summary of the
applicant's safety and security plans and procedures, which shall include
descriptions of the following:

���� - plans for the use of
security personnel, including contractors;

���� - the experience or
qualifications of security personnel and proposed contractors;

���� - security and surveillance
features, including descriptions of any alarm systems, video surveillance
systems, and access and visitor management systems, along with drawings
identifying the proposed locations for surveillance cameras and other security
features;

���� - plans for the storage of
cannabis and cannabis items, including any safes, vaults, and climate control
systems that will be utilized for this purpose;

���� - a diversion prevention plan;

���� - an emergency management
plan;

���� - procedures for screening,
monitoring, and performing criminal history record background checks of
employees;

���� - cybersecurity procedures;

���� - workplace safety plans and
the applicant's familiarity with federal Occupational Safety and Health
Administration regulations;

���� - the applicant's history of
workers' compensation claims and safety assessments;

���� - procedures for reporting
adverse events; and

���� - a sanitation practices plan.

���� (iii)� A summary of the
applicant's business experience, including the following, if applicable:

���� - the applicant's experience
operating businesses in highly-regulated industries;

���� - the applicant's experience
in operating cannabis establishments or alternative treatment centers and
related cannabis production, manufacturing, warehousing, or retail entities, or
experience in operating cannabis distributors or delivery services, under the
laws of New Jersey or any other state or jurisdiction within the United States;
and

���� - the applicant's plan to
comply with and mitigate the effects of 26 U.S.C. s.280E on cannabis
businesses, and for evidence that the applicant is not in arrears with respect
to any tax obligation to the State.

����
[
In evaluating the experience
described under this subsubparagraph, the commission shall afford the greatest
weight to the experience of the applicant itself, controlling owners, and
entities with common ownership or control with the applicant; followed by the
experience of those with a 15 percent or greater ownership interest in the
applicant's organization; followed by significantly involved persons in the
applicant's organization; followed by other officers, directors, and current
and prospective employees of the applicant who have a bona fide relationship
with the applicant's organization as of the date of the application.
]

���� (iv)� A description of the
proposed location for the applicant's site, including the following, if
applicable:

���� - the proposed location, the
surrounding area, and the suitability or advantages of the proposed location,
along with a floor plan and optional renderings or architectural or engineering
plans;

���� - the submission of zoning
approvals for the proposed location, which shall consist of a letter or
affidavit from appropriate officials of the municipality that the location will
conform to local zoning requirements allowing for activities related to the
operations of the proposed cannabis cultivator, cannabis manufacturer, cannabis
wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery
service as will be conducted at the proposed facility; and

���� - the submission of proof of
local support for the suitability of the location, which may be demonstrated by
a resolution adopted by the municipality's governing body indicating that the
intended location is appropriately located or otherwise suitable for activities
related to the operations of the proposed cannabis cultivator, cannabis
manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or
cannabis delivery service.

���� An application for a cannabis
retailer shall not include in that application a proposed site that would place
the retailer's premises in or upon any premises in which operates a grocery
store, delicatessen, indoor food market, or other store engaging in retail
sales of food, or in or upon any premises in which operates a store that
engages in licensed retail sales of alcoholic beverages, as defined by
subsection b. of R.S.33:1-1; any application presented to the commission shall
be denied if it includes that form of proposed site.

���� Notwithstanding any other
provision of this subsubparagraph, an application shall be disqualified from
consideration unless it includes documentation demonstrating that the applicant
will have final control of the premises upon approval of the application,
including, but not limited to, a lease agreement, contract for sale, title,
deed, or similar documentation.� In addition, if the applicant will lease the
premises, the application will be disqualified from consideration unless it
includes certification from the landlord that the landlord is aware that the
tenant's use of the premises will involve activities associated with operations
as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis
distributor, cannabis retailer, or cannabis delivery service.�

���� (v)�� A community impact,
social responsibility, and research statement, which may include, but shall not
be limited to, the following:

���� - a community impact plan
summarizing how the applicant intends to have a positive impact on the
community in which the proposed cannabis establishment, distributor, or
delivery service is to be located, which shall include an economic impact plan
and a description of outreach activities;

���� - a written description of the
applicant's record of social responsibility, philanthropy, and ties to the
proposed host community;

���� - a written description of any
research the applicant has conducted on the adverse effects of the use of
cannabis items, substance use disorder, and the applicant's participation in or
support of cannabis-related research and educational activities; and

���� - a written plan describing
any research and development regarding the adverse effects of cannabis, and any
cannabis-related educational and outreach activities, which the applicant
intends to conduct if issued a license by the commission.

����
[
In evaluating the information
submitted pursuant to this subsubparagraph, the commission shall afford the
greatest weight to responses pertaining to the applicant itself, controlling
owners, and entities with common ownership or control with the applicant;
followed by those with a 15 percent or greater ownership interest in the
applicant's organization; followed by significantly involved persons in the
applicant's organization; followed by other officers, directors, and current
and prospective employees of the applicant who have a bona fide relationship
with the applicant's organization as of the date of the application.
]

���� (vi)� A workforce development
and job creation plan, which may include information on the applicant's history
of job creation and planned job creation at the proposed cannabis
establishment, distributor, or delivery service; education, training, and
resources to be made available for employees; any relevant certifications; and
an optional diversity plan.

���� (vii) A business and financial
plan, which may include, but shall not be limited to, the following:

���� - an executive summary of the
applicant's business plan;

���� - a demonstration of the
applicant's financial ability to implement its business plan, which may
include, but shall not be limited to, bank statements, business and individual
financial statements, net worth statements, and debt and equity financing statements;
and

���� - a description of the
applicant's plan to comply with guidance pertaining to cannabis issued by the
Financial Crimes Enforcement Network under 31 U.S.C. s.5311 et seq., the
federal "Bank Secrecy Act," which may be demonstrated by submitting
letters regarding the applicant's banking history from banks or credit unions
that certify they are aware of the business activities of the applicant, or
entities with common ownership or control with the applicant, in any state
where the applicant has operated a business related to personal use or medical
cannabis.� For the purposes of this subsubparagraph, the commission shall
consider only bank references involving accounts in the name of the applicant
or of an entity with common ownership or control with the applicant.� An
applicant who does not submit the information about a plan of compliance with
the federal "Bank Secrecy Act" shall not be disqualified from
consideration.

���� (viii) Whether any of the
applicant's majority or controlling owners were previously approved by the
commission to serve as an officer, director, principal, or key employee of an
alternative treatment center or personal use cannabis establishment, distributor,
or delivery service, provided any such individual served in that capacity for
six or more months;

���� (ix)� Any other information
the commission deems relevant in determining whether to grant a license to the
applicant.

���� (2)�� In ranking applications,

[
in
addition to the awarding of points as set forth in paragraph (1) of this
subsection,
]

the commission shall give priority to the following, regardless of whether
there is any competition among applications for a particular class of license:

���� (a)�� Applicants that include
a significantly involved person or persons lawfully residing in New Jersey for
at least five years as of the date of the application.

���� (b)�� Applicants that are
party to a collective bargaining agreement with a bona fide labor organization
that currently represents, or is actively seeking to represent cannabis workers
in New Jersey.

���� (c)�� Applicants that are
party to a collective bargaining agreement with a bona fide labor organization
that currently represents cannabis workers in another state.

���� (d)�� Applicants that submit a
signed project labor agreement with a bona fide building trades labor
organization, which is a form of pre-hire collective bargaining agreement
covering terms and conditions of a specific project, including labor issues and
worker grievances associated with that project, for the construction or
retrofit of the facilities associated with the licensed entity.

���� (e)�� Applicants that submit a
signed project labor agreement with a bona fide labor organization for any
other applicable project associated with the licensed entity.

���� As used in this paragraph,
"bona fide labor organization" means "bona fide labor
organization" as defined in subsection c. of this section, and includes a
bona fide building trades labor organization.

���� (3)��
[
In reviewing
an initial license application, unless the information is otherwise solicited
by the commission in a specific application question, the commission's
evaluation of the application shall be limited to the experience and
qualifications of the applicant's organization, including controlling owners,
any entities with common ownership or control with the applicant, those with a
15 percent or greater ownership interest in the applicant's organization,
significantly involved persons in the applicant's organization, the other
officers, directors, and current or prospective employees of the applicant who
have a bona fide relationship with the applicant's organization as of the date
of the application, and consultants and independent contractors who have a bona
fide relationship with the applicant as of the date of the application.
Responses pertaining to applicants who are exempt from the criminal history
record background check requirements of P.L.2021, c.16 (C.24:6I-31 et al.)
shall not be considered.� Each applicant shall certify as to the status of the
individuals and entities included in the application.
]

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

���� (4)��
[
The commission
shall give special consideration to any applicant that has entered into an
agreement with an institution of higher education to create an integrated
curriculum involving the cultivation, manufacturing, wholesaling, distributing,
retail sales, or delivery of personal use cannabis or cannabis items, provided
that the curriculum is approved by both the commission and the Office of the
Secretary of Higher Education and the applicant agrees to maintain the
integrated curriculum in perpetuity.� An integrated curriculum license shall be
subject to revocation if the license holder fails to maintain or continue the
integrated curriculum. In the event that, because of circumstances outside a
license holder's control, the license holder will no longer be able to continue
an integrated curriculum, the license holder shall notify the commission and
shall make reasonable efforts to establish a new integrated curriculum with an
institution of higher education, subject to approval by the commission and the
Office of the Secretary of Higher Education.� If the license holder is unable
to establish a new integrated curriculum within six months after the date the
current integrated curriculum arrangement ends, the commission shall revoke the
entity's license, unless the commission finds there are extraordinary
circumstances that justify allowing the license holder to retain the license
without an integrated curriculum and the commission finds that allowing the
license holder to retain the license would be consistent with the purposes of
P.L.2021, c.16 (C.24:6I-31 et al.).� The commission may revise the application
and license fees or other conditions for a license pursuant to this paragraph
as may be necessary to encourage applications for licensure which involves an
integrated curriculum.
]

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

���� (5)�� Application materials
submitted to the commission pursuant to this section shall not be considered a
public record pursuant to P.L.1963, c.73 (C.47:1A-1 et seq.), P.L.2001, c.404
(C.47:1A-5 et al.), or the common law concerning access to government records.

���� (6)�� If the commission
notifies an applicant that it has performed sufficiently well on multiple
applications to be awarded more than one license, the applicant shall notify
the commission, within seven business days after receiving such notice, as to
which class of license it will accept.�
[
For
any license award that is declined by an applicant pursuant to this paragraph,
the commission shall, upon receiving notice from the applicant of the
declination, award the license to the applicant for that license class who, in
the determination of the commission, best satisfies the commission's criteria
while meeting the commission's determination of Statewide marketplace need.
]
� If an
applicant fails to notify the commission as to which license it will accept,
the commission shall have the discretion to determine which license it will
award to the applicant, based on the commission's determination of Statewide
marketplace need and other applications submitted for cannabis establishments,
distributors, or delivery services to be located in the affected regions.

���� e. (1) The commission shall
also prioritize applications on the basis of impact zones, for which past
criminal marijuana enterprises contributed to higher concentrations of law
enforcement activity, unemployment, and poverty, or any combination thereof, within
parts of or throughout these zones, regardless of whether there is any
competition among applications for a particular class of license.� An
"impact zone" means any municipality that:

���� (a)�� has a population of
120,000 or more according to the most recently compiled federal decennial
census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.);

���� (b)�� based upon data for
calendar year 2019:

���� (i)��� ranks in the top 40
percent of municipalities in the State for marijuana- or hashish-related
arrests for violation of paragraph (4) of subsection a. of N.J.S.2C:35-10;

���� (ii)�� has a crime index total
of 825 or higher based upon the indexes listed in the annual Uniform Crime
Report by the Division of State Police; and

���� (iii)� has a local average
annual unemployment rate that ranks in the top 15 percent of all municipalities
in the State, based upon average annual unemployment rates estimated for the
relevant calendar year by the Office of Research and Information in the Department
of Labor and Workforce Development;

���� (c)�� is a municipality
located in a county of the third class, based upon the county's population
according to the most recently compiled federal decennial census as of the
effective date of P.L.2021, c.16 (C.24:6I-31 et al.), that meets all of the
criteria set forth in subparagraph (b) other than having a crime index total of
825 or higher; or

���� (d)�� is a municipality
located in a county of the second class, based upon the county's population
according to the most recently compiled federal decennial census as of the
effective date of P.L.2021, c.16 (C.24:6I-31 et al.):

���� (i) with a population of less
than 60,000 according to the most recently compiled federal decennial census,
that for calendar year 2019 ranks in the top 40 percent of municipalities in
the State for marijuana- or hashish-related arrests for violation of paragraph
(4) of subsection a. of N.J.S.2C:35-10; has a crime index total of 1,000 or
higher based upon the indexes listed in the 2019 annual Uniform Crime Report by
the Division of State Police; but for calendar year 2019 does not have a local
average annual unemployment rate that ranks in the top 15 percent of all
municipalities, based upon average annual unemployment rates estimated for the
relevant calendar year by the Office of Research and Information in the
Department of Labor and Workforce Development; or

���� (ii) with a population of not
less than 60,000 or more than 80,000 according to the most recently compiled
federal decennial census; has a crime index total of 650 or higher based upon
the indexes listed in the 2019 annual Uniform Crime Report; and for calendar
year 2019 has a local average annual unemployment rate of 3.0 percent or higher
using the same estimated annual unemployment rates.

���� (2)�� In ranking applications
with respect to impact zones, the commission shall give priority to the
following:

���� (a) � An application for a
cannabis establishment, distributor, or delivery service that is located, or is
intended to be located, within an impact zone, and that impact zone has less
than two licensees, so that there will be a prioritized distribution of licenses
to at least two licensees within each impact zone.

���� (b)�� An applicant who is a
current resident of an impact zone and has resided therein for three or more
consecutive years at the time of making the application.� To the extent
reasonably practicable, at least 25 percent of the total licenses issued to
applicants for a cannabis establishment, distributor, or delivery service
license shall be awarded to applicants who have resided in an impact zone for
three or more consecutive years at the time of making the application,
regardless of where the cannabis establishment, distributor, or delivery
service is, or is intended to be, located.

���� (c)�� An applicant who
presents a plan, attested to, to employ at least 25 percent of employees who
reside in an impact zone, of whom at least 25 percent shall reside in the
impact zone nearest to the location, or intended location, of the cannabis
establishment, distributor, or delivery service; failure to meet the requisite
percentages of employees from an impact zone within 90 days of the opening of a
licensed cannabis establishment, distributor, or delivery service shall result
in the suspension or revocation of a license or conditional license, as
applicable, issued based on an application with an impact zone employment plan.

���� f. (1) The commission shall
ensure that at least 10 percent of the total licenses issued for each class of
cannabis establishment, or for cannabis distributors and cannabis delivery
services, are designated for and only issued to microbusinesses, and that at
least 25 percent of the total licenses issued be issued to microbusinesses.�
The determination of the percentage for each class of license issued to
microbusinesses shall include the number of conditional licenses issued to
microbusinesses for each class, as the percentage of conditional licenses
issued for each class pursuant to subparagraph (a) of paragraph (2) of
subsection b. of this section shall not be mutually exclusive of the percentage
of licenses issued to microbusinesses pursuant to this subsection.� There shall
not be any cap or other numerical restriction on the number of licenses issued
to microbusinesses pursuant to P.L.2021, c.16 (C.24:6I-31 et al.), and this
prohibition on a cap or other numerical restriction shall apply to every class
of license issued.� The maximum fee assessed by the commission for issuance or
renewal of a license designated and issued to a microbusiness shall be no more
than half the fee applicable to a license of the same class issued to a person
or entity that is not a microbusiness.

���� (2)�� A microbusiness shall
meet the following requirements:

���� (a)�� 100 percent of the
ownership interest in the microbusiness shall be held by current New Jersey
residents who have resided in the State for at least the past two consecutive
years;

���� (b)�� at least 51 percent of
the owners, directors, officers, or employees of the microbusiness shall be
residents of the municipality in which the microbusiness is located, or to be
located, or a municipality bordering the municipality in which the microbusiness
is located, or to be located;

���� (c)�� concerning business
operations, and capacity and quantity restrictions:

���� (i)��� employ no more than 10
employees;

���� (ii)�� operate a cannabis
establishment occupying an area of no more than 2,500 square feet, and in the
case of a cannabis cultivator, grow cannabis on an area no more than 2,500
square feet measured on a horizontal plane and grow above that plane not higher
than 24 feet; provided, that a cannabis cultivator's grow space may, if
approved by the commission, be part of a larger premises that is owned or
operated by a cannabis cultivator that is not a licensed microbusiness,
allowing for the sharing of a physical premises and certain business
operations, but only the microbusiness cannabis cultivator shall grow cannabis
on and above the cultivator's grow space;

���� (iii) possess no more than
1,000 cannabis plants each month, except that a cannabis distributor's
possession of cannabis plants for transportation shall not be subject to this
limit;

���� (iv)� in the case of a
cannabis manufacturer, acquire no more than 1,000 pounds of usable cannabis
each month;

���� (v)�� in the case of a
cannabis wholesaler, acquire for resale no more than 1,000 pounds of usable
cannabis, or the equivalent amount in any form of manufactured cannabis product
or cannabis resin, or any combination thereof, each month; and

���� (vi)� in the case of a
cannabis retailer, acquire for retail sale no more than 1,000 pounds of usable
cannabis, or the equivalent amount in any form of manufactured cannabis product
or cannabis resin, or any combination thereof, each month;

���� (d)�� no owner, director,
officer, or other person with a financial interest who also has decision making
authority for the microbusiness shall hold any financial interest in any other
licensed cannabis establishment, distributor, or delivery service, whether or
not a microbusiness;

���� (e)�� no owner, director,
officer, or other person with a financial interest who also has decision making
authority for a licensed cannabis establishment, distributor, or delivery
service, whether or not a microbusiness, shall hold any financial interest in a
microbusiness;

���� (f)�� the microbusiness shall
not sell or transfer the license issued to it; and

���� (g)�� the microbusiness shall
comply with such other requirements as may be established by the commission by
regulation.

���� (3)�� A license designated and
issued to a microbusiness shall be valid for one year and may be renewed
annually, or alternatively replaced, while still valid, with an annual license
allowing the microbusiness to convert and continue its operations as a licensed
person or entity that is not a microbusiness subject to the provisions of this
subsection, based upon a process and criteria established by the commission in
regulation for the conversion.

���� (a)�� Any microbusiness that
meets the criteria established by the commission for conversion may submit an
application to convert its operations.� Upon review of the application to
confirm the commission's criteria have been met, the commission shall issue a new
annual license to the person or entity, and the previously issued license for
the microbusiness shall be deemed expired as of the date of issuance of the new
annual license.� If the commission determines that the criteria have not been
met, the conversion application shall be denied, and the commission shall
notify the microbusiness applicant of the specific reason for its denial, and
provide the applicant with the opportunity for a hearing in accordance with the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

���� (b)�� Any new annual license
issued pursuant to this paragraph allowing a microbusiness to convert and
continue its operations as a licensed person or entity that is not a
microbusiness subject to the provisions of this subsection shall be counted
towards the percentages of licenses that are designated for and only issued to
microbusinesses as set forth in paragraph (1) of this subsection,
notwithstanding the microbusiness' converted operations.

���� g.��� In addition to any other
information required to be submitted to the commission pursuant to this
section, the commission shall require all license applicants to submit a copy
of any services agreement entered into by the applicant with a third-party entity,
which agreement shall be subject to review as provided in subsection h. of this
section.

���� h.��� The commission shall
have the authority to review any services agreement submitted pursuant to
subsection g. of this section and any agreement to provide significant
financial or technical assistance or the significant use of intellectual
property to an applicant, to determine whether the terms of the agreement,
including interest rates, returns, and fees, are commercially reasonable and
consistent with the fair market value for the terms generally applicable to
agreements of a comparable nature.� In the event the commission determines the
terms of an agreement are not commercially reasonable or consistent with the
fair market value generally applicable to the services to be provided under the
agreement, the commission shall have the authority to withhold approval of the
license application until the parties renegotiate a new agreement that, as
determined by the commission, is commercially reasonable and consistent with
the fair market value for the terms generally applicable to agreements of a
comparable nature.� The parties to the agreement may request that the
commission provide guidance as to what terms it would find to be commercially
reasonable and consistent with the fair market value generally applicable to
agreements of a comparable nature.� Nothing in this subsection shall be
construed to require the commission to award a license to an applicant if the
commission determines the applicant does not otherwise meet the requirements
for issuance of the license.

(cf: P.L.2023, c.177, s.55)

���� 4.��� Section 31 of P.L.2021,
c.16 (C.24:6I-45) is amended to read as follows:

���� 31.� Municipal Regulations or
Ordinances.�

���� a.���� A municipality may
enact ordinances or regulations, not in conflict with the provisions of
P.L.2021, c.16 (C.24:6I-31 et al.):

���� (1)�� governing the number of
cannabis establishments, distributors, or delivery services, as well as the
location, manner, and times of operation of establishments and distributors,
but the time of operation of delivery services shall be subject only to regulation
by the commission; and

���� (2)�� establishing civil
penalties for violation of an ordinance or regulation governing the number of
cannabis establishments, distributors, or delivery services that may operate in
such municipality, or their location, manner, or the times of operations.

���� b.���
[
A
]

Except as
provided in paragraph (2) of subsection e. of this section, a
municipality
may prohibit the operation of any one or more classes of cannabis
establishment, or cannabis distributors or cannabis delivery services, but not
the delivery of cannabis items and related supplies by a delivery service,
within the jurisdiction of the municipality through the enactment of an
ordinance, and this prohibiting ordinance shall apply throughout the
municipality, even if that municipality or parts thereof fall within any
district, area, or other geographical jurisdiction for which land use planning,
site planning, zoning requirements or other development authority is exercised
by an independent State authority, commission, instrumentality, or agency
pursuant to the enabling legislation that governs its duties, functions, and
powers, even if this development authority is expressly stated or interpreted
to be exclusive thereunder; the local prohibiting ordinance applies,
notwithstanding the provisions of any independent State authority law to the
contrary.� Only an ordinance to prohibit one or more classes of cannabis
establishment, or cannabis distributors or cannabis delivery services enacted
pursuant to the specific authority to do so by this section shall be valid and
enforceable; any ordinance enacted by a municipality prior to the effective
date of this section addressing the issue of prohibiting one or more types of
cannabis-related activities within the jurisdiction of the municipality is null
and void, and that entity may only prohibit the operation of one or more
classes of cannabis establishment, or cannabis distributors or cannabis
delivery services by enactment of a new ordinance based upon the specific
authority to do so by this section.� The failure of a municipality to enact an
ordinance prohibiting the operation of one or more classes of cannabis
establishment, or cannabis distributors or cannabis delivery services within
180 days after the effective date of P.L.2021, c.16 (C.24:6I-31 et al.), shall
result in any class of cannabis establishment, or a cannabis distributor or
cannabis delivery service that is not prohibited from operating within the
municipality as being permitted to operate therein as follows: the growing,
cultivating, manufacturing, and selling and reselling of� cannabis and cannabis
items, and operations to transport in bulk cannabis items by a cannabis
cultivator, cannabis manufacturer, cannabis wholesaler, or as a cannabis
distributor or cannabis delivery service shall be permitted uses in all
industrial zones of the municipality; and the selling of cannabis items to
consumers from a retail store by a cannabis retailer shall be a conditional use
in all commercial zones or retail zones, subject to meeting the conditions set
forth in any applicable zoning ordinance or receiving a variance from one or
more of those conditions in accordance with the "Municipal Land Use
Law," P.L.1975, c.291 (C.40:55D-1 et seq.).� At the end of a five-year
period following the initial failure of a municipality to enact an ordinance
prohibiting the operation of one or more classes of cannabis establishment, or
cannabis distributors or cannabis delivery services, and every five-year period
thereafter following a failure to enact a prohibiting ordinance, the municipality
shall again be permitted to prohibit the future operation of any one or more
classes of cannabis establishment, or cannabis distributors or cannabis
delivery services through the enactment of an ordinance during a new 180-day
period, but this ordinance shall be prospective only and not apply to any
cannabis establishment, distributor or delivery service operating in the
municipality prior to the enactment of the ordinance.
To the extent a
municipality prohibits: (1) the operation of any one or more classes of
cannabis establishments, distributors, or delivery services; or (2)
redesignation of cannabis or cannabis products between medical and personal
use, as permitted pursuant to this section, such prohibition or prohibitions
shall have no force and effect beyond the municipality enacting the prohibition
or limit, bind, or impair, in any way, the activities of cannabis
establishments, distributors, or delivery services lawfully operating in any
other municipality in the State.

���� c. (1) When the commission
receives an application for initial licensing or renewal of an existing license
for any cannabis establishment, distributor, or delivery service pursuant to
section 19 of P.L.2021, c.16 (C.24:6I-36), or endorsement for a cannabis
consumption area pursuant to section 28 of P.L.2019, c.153 (C.24:6I-21), the
commission shall provide, within 14 days, a copy of the application to the
municipality in which the establishment, distributor, delivery service, or
consumption area is to be located, unless the municipality has prohibited the
operation of the particular class of business for which licensure is sought
pursuant to subsection b. of this section, or in the case of an application
seeking a consumption area endorsement, prohibited the operation of cannabis
retailers.� The municipality shall determine whether the application complies
with its local restrictions on the number of cannabis establishments,
distributors, or delivery services, or their location, manner, or times of
operation, and the municipality shall inform the commission whether the
application complies with its local restrictions.

���� (2)��
[
A
]

Except as
provided in paragraph (3) of subsection e. of this section, a
municipality
may impose a separate local licensing or endorsement requirement as a part of
its restrictions on the number of cannabis establishments, distributors, or
delivery services, or their location, manner, or times of operation.� A
municipality may decline to impose any local licensing or endorsement
requirements, but a local jurisdiction shall notify the commission that it
either approves or denies each application forwarded to it.

����
d.��� A municipality that
has adopted an ordinance or regulation, or any change thereto, as described in
this section shall submit such ordinance, regulation, or change to such
ordinance or regulation to the commission for purposes of being included in the
online portal created pursuant to section 5 of P.L.��� , c.���� (C.������� )
(pending before the Legislature as this bill).� The commission�s failure to
establish the portal pursuant to section 5 of P.L.��� , c.���� (C.������� )
(pending before the Legislature as this bill) shall not negate a municipality�s
obligation to submit any such ordinance, regulation, or change to such
ordinance or regulation to the commission pursuant to this section.

����
e.���� (1) Notwithstanding
any provision of law to the contrary, in the case of a medical cannabis
dispensary issued a permit pursuant to the �Jake Honig Compassionate Use
Medical Cannabis Act,� P.L.2009, c.307 (C.24:6I-1 et al.), which is applying
for approval or renewal of a Class 5 Cannabis Retailer license pursuant to
P.L.2021, c.16 (C.24:6I-31 et al.) and which is proposed to be co-located on
the premises of an existing medical cannabis dispensary in a municipality that
permits the retail sale of medical cannabis, but not the retail sale of
adult-use cannabis items, the Commission shall not require municipal review,
consent, or approval as a condition of issuing a Class 5 Retailer License for
such location.� Any prior municipal approval authorizing the medical cannabis
dispensary to lawfully operate on the premises shall be deemed to authorize the
operation of the Class 5 Cannabis Retailer at the location.

����
(2)�� A municipality shall not
prohibit the retail sale of cannabis items by any medical cannabis dispensary
issued a permit pursuant to the �Jake Honig Compassionate Use Medical Cannabis
Act,� P.L.2009, c.307 (C.24:6I-1 et al.) that has been open and lawfully
operating in such municipality without any violation, or notice thereof, for a
period of not less than 180 days prior.

����
(3)�� Any medical cannabis
retailer operating as of the effective date of P.L.2021, c.16 shall not be
subject to any municipal restriction on the number of cannabis dispensaries or
locations.

(cf: P.L.2021, c.16, s.31)

���� 5.��� (New section) a. Within
240 days of the effective date of P.L.��� , c.���� (C.������� ) (pending before
the Legislature as this bill), the commission shall create, maintain, and
update, as appropriate, an online portal, in the form of an Internet website,
to maintain adopted municipal ordinances and regulations related to cannabis.

���� b.��� The online portal shall
provide a centralized information webpage that maintains ordinances and
regulations related to the medical or adult-use cannabis market that a
municipality in the State has adopted pursuant to the authority prescribed in
P.L.2009, c.307 (C.24:6I-1 et al.) or P.L.2021, c.16 (C.24:6I-31 et al.).� This
information shall be publicly accessible and shall be submitted to the
commission by a municipality in accordance with section 31 of P.L.2021, c.16
(C.24:6I-45).

���� c.���� The online portal,
created pursuant to subsection a. of this section shall include a link to the
municipal ordinances or regulations adopted by a municipality in accordance
with the authority prescribed in P.L.2009, c.307 (C.24:6I-1 et al.) or
P.L.2021, c.16 (C.24:6I-31 et al.).

���� 6.��� Section 18 of P.L.2021,
c.16 (C.24:6I-35) is amended to read as follows:

���� 18.� Regulation of Cannabis.

���� a.���� The commission shall
adopt rules and regulations, pursuant to subsection d. of section 6 of
P.L.2021, c.16 (C.24:6I-34), which shall be consistent with the intent of
P.L.2021, c.16 (C.24:6I-31 et al.).� The commission may create an expert task
force to make recommendations to the commission about the content of such
regulations. Such regulations shall include:

���� (1)�� Procedures for the
application, issuance, denial, renewal, suspension, and revocation of a license
or conditional license to operate as a cannabis establishment, distributor, or
delivery service.� Such procedures shall include a periodic evaluation of whether
the number of each class of cannabis establishment, or cannabis distributors or
cannabis delivery services, is sufficient to meet the market demands of the
State, a result of which is the commission's authority to accept new
applications and issue additional licenses as it deems necessary to meet those
demands, except as otherwise provided in section 33 of P.L.2021, c.16
(C.24:6I-46) regarding an initial period during which the number of Class 1
Cannabis Cultivator licenses is capped, which limit shall not apply to cannabis
cultivator licenses issued to microbusinesses as set forth in that section
[
;
]
.� The
commission shall not prohibit any family member, other than a spouse, of
license applicant or license holder from also becoming a license applicant or
license holder;�

���� (2)�� Application, licensure,
and renewal of licensure fees;

���� (3)�� Incorporation of the
licensing goals for applicants for licensure who are New Jersey residents
established in P.L.2021, c.16 (C.24:6I-31 et al.).� The commission shall make
good faith efforts to meet these goals.� Qualifications for licensure shall be
directly and demonstrably related to the operation of a cannabis establishment,
distributor, or delivery service, provided that the commission shall make
licenses available to as diverse a group as reasonably practicable, however no
license of any kind shall be issued to a person under the legal age to purchase
cannabis items;

���� (4) (a) Incorporation of the
licensing measures established by the Office of Minority, Disabled Veterans,
and Women Cannabis Business Development pursuant to subparagraph (b) of
paragraph (1) of subsection c. of section 32 of P.L.2019, c.153 (C.24:6I-25) to
promote the licensing of persons from socially and economically disadvantaged
communities, and minority businesses and women's businesses, as these terms are
defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18), and disabled
veterans' businesses as defined in section 2 of P.L.2015, c.116
(C.52:32-31.2).� The commission shall coordinate with the office with respect
to the incorporation of these licensing measures;

���� (b)�� Procedures, to monitor
the incorporated licensing measures established by the Office of Minority,
Disabled Veterans, and Women Cannabis Business Development, which shall include
a verification, as part of the application process for licensure or license renewal,
of a minority, women's, or disabled veterans' business certification provided
to that business by the office pursuant to paragraph (1) of subsection b. of
section 32 of P.L.2019, c.153 (C.24:6I-25), or verification of an application
for certification under review by the office pursuant to that paragraph, which
review is occurring simultaneous to the application for licensure or license
renewal;

���� (5)�� Security requirements
for cannabis establishments and transportation of cannabis and cannabis items;

���� (6)�� Requirements to prevent
the sale or diversion of cannabis items to persons under the legal age to
purchase cannabis items, including, but not limited to, requirements that:

���� (a)�� All licensees and
licensee representatives, before permitting entrance to a cannabis
establishment and selling or serving cannabis items to any person, shall
require such person to produce one of the following pieces of identification:

���� (i)��� The person's United
States passport, or other country's passport or proper government-issued
documentation for international travel if a citizen or other lawfully
recognized resident of that country, who is lawfully permitted to possess and
use that country's passport or government-issued documentation for purposes of
identification in the United States;

���� (ii)�� The person's motor
vehicle driver's license, whether issued by New Jersey or by any other state,
territory, or possession of the United States, or the District of Columbia,
provided the license displays a picture of the person;

���� (iii)� A New Jersey
identification card issued by the New Jersey Motor Vehicle Commission; or

���� (iv)� Any other identification
card issued by a state, territory, or possession of the United States, the
District of Columbia, or the United States that bears a picture of the person,
the name of the person, the person's date of birth, and a physical description
of the person;

���� (b)�� No cannabis
establishment, distributor, or delivery service shall employ persons under 18
years of age nor shall any cannabis retailer allow persons under the legal age
to purchase cannabis items, other than a person employed by the retailer, to
enter or remain on the premises of a cannabis retailer unless accompanied by a
parent or legal guardian;

���� (c)�� Packaging and branding
regulations to prevent the marketing of cannabis items and cannabis
paraphernalia to people under the legal age to purchase cannabis items;

���� (d) No edible cannabis
products shall be manufactured, marketed, or sold that are in the shape of, or
a shape bearing the likeness or containing characteristics of, a realistic or
fictional human, animal, or fruit, or part thereof, including artistic, caricature,
or cartoon renderings;

���� (7)�� Labeling and packaging
requirements for cannabis items sold or distributed by a cannabis
establishment, including, but not limited to, the affixing of a tracking stamp
to containers or packaging as set forth in section 29 of P.L.2019, c.153
(C.24:6I-22) and requirements that:

���� (a)�� Cannabis items and
cannabis paraphernalia are not packaged, branded, or marketed using any
statement, illustration, or image that:

���� (i)��� Includes false,
deceptive, or misleading statements;

���� (ii)�� Promotes
over-consumption;

���� (iii)� Depicts a child or
other person under legal age consuming cannabis items; or

���� (iv)� Includes objects, such
as toys, characters, or cartoon characters suggesting the presence of a person
under the legal age to purchase cannabis items, or any other depiction designed
in any manner to be especially appealing to persons under the legal age to
purchase cannabis items;

���� (b)�� Ensure cannabis items
are packaged in opaque, child-resistant special packaging, or if applicable to
a particular cannabis item, child resistant special packaging for liquid
nicotine containers, in accordance with the "Poison Prevention Packaging
Act of 1970," 15 U.S.C. s.1471 et seq., and the associated regulations
promulgated thereunder, except that these child-resistant packaging
requirements shall not apply to any cannabis item obtained from a cannabis
retailer or alternative treatment center for immediate, on-premises consumption
at that retailer's or center's cannabis consumption area as permitted pursuant
to section 28 of P.L.2019, c.153 (C.24:6I-21);

���� (c)�� Cannabis items warning
labels adequately inform consumers about safe cannabis use and warn of the
consequences of misuse or overuse;

���� (d)�� Labeling rules that
mandate clear identification of health and safety information, including, but
not limited to:

���� (i)��� Net weight;

���� (ii)�� Production date and
expiration date;

���� (iii)� For a cannabis product,
cannabis extract, or other cannabis resin, an ingredient list that includes,
but is not limited to, all ingredients used to manufacture the cannabis
product, any other inactive or excipient ingredients besides cannabis, and a
list of all potential allergens contained within the product;

���� (iv)� Strain or type of
cannabis, listed by scientific terms, if available, and generic or
"slang" names;

���� (v)�� Whether the product
requires refrigeration;

���� (vi)� Growth method, whether
dirt grown, hydroponic, or otherwise, and an indication whether the cannabis
was grown using all-organic materials, and a complete list of any nonorganic
pesticides, fungicides and herbicides used during the cultivation of the cannabis;

���� (vii) For a cannabis product,
serving size, the total number of servings, and a statement regarding the
percentage of THC contained in the cannabis product and in each serving. For
example: "The serving size of active THC in this product is X mg. This
product contains X servings of cannabis, and the total amount of active THC in
this product is X mg.";

���� (viii) Warning labels that
include the nationwide toll-free telephone number used to access poison control
centers that is maintained in accordance with 42 U.S.C. s.300d-71, as well as
include, but are not limited to, one or more of the following statements, if
applicable to a particular cannabis item:

���� -- "This product contains
cannabis";

���� -- "This product is
infused with cannabis";

���� -- "This product is
intended for use by adults 21 years of age or older. Keep out of the reach of
children";

���� -- "The intoxicating
effects of this product may be delayed by two or more hours";

���� -- "There may be health
risks associated with the consumption of this product, including for women who
are pregnant, breastfeeding, or planning on becoming pregnant";

���� -- "Do not drive a motor
vehicle or operate heavy machinery while using this product ";

���� (e)�� Labeling rules that
mandate the source of a cannabis item, including, but not limited to, the
license number of the cannabis cultivator where the usable cannabis used for
the cannabis item was grown, the license number of the cannabis manufacturer
that manufactured the cannabis item, and the license number of the cannabis
retailer that sold the cannabis item and the production batch and lot number of
the cannabis item;

���� (8)�� Health and safety
regulations and standards for the cultivation of cannabis, and the manufacture
and sale of cannabis items, including, but not limited to, requirements that:

���� (a)�� Establish accreditation
and licensure criteria for cannabis testing facilities, which shall include, as
a condition for licensure, the maintenance of a labor peace agreement and
entrance into, or good faith effort to enter into, a collective bargaining agreement
in accordance with subsection c. of section 19 of P.L.2021, c.16 (C.24:6I-36).�
The commission shall also incorporate the licensing measures established by the
Office of Minority, Disabled Veterans, and Women Cannabis Business Development,
and the assessment of their effectiveness, pursuant to subparagraph (b) of
paragraph (1) of subsection c. of section 32 of P.L.2019, c.153 (C.24:6I-25),
and apply them to the licensing of cannabis testing facilities in order to
promote the licensing of persons from socially and economically disadvantaged
communities, and minority businesses and women's businesses, as these terms are
defined in section 2 of P.L.1986, c.195 (C.52:27H-21.18), and disabled
veterans' businesses as defined in section 2 of P.L.2015, c.116
(C.52:32-31.2).� The license shall permit a cannabis testing facility to test
cannabis items in accordance with the provisions set forth in P.L.2021, c.16
(C.24:6I-31 et al.), as well as test medical cannabis and medical cannabis
products in accordance with the provisions of the "Jake Honig
Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et
al.);

���� (b)�� The commission issue
licenses for a sufficient number of cannabis testing facilities, if those
facilities:

���� (i)��� Meet the requirements
for licensure, in order to ensure that the testing of representative samples of
cannabis items in accordance with the procedures set forth in paragraph (13) of
this subsection can be completed in not more than 14 days following their
submission to any facility.� Other factors that may be considered by the
commission in determining whether a sufficient number of cannabis testing
facilities are currently licensed include the current licensees' experience or
expertise in testing highly regulated products, demonstrated testing efficiency
and effectiveness, existing research partnerships or capability to form and
maintain research partnerships focusing on cannabis or cannabis items, and any
other factors established in regulation by the commission; and

���� (ii)�� Permit the commission
to inspect any licensed cannabis testing facility to determine the condition
and calibration of any equipment used for testing, and to ensure that a
facility's testing procedures are performed in accordance with the commission's
accreditation requirements for licensure;

���� (c)�� Every licensed cannabis
cultivator and cannabis manufacturer shall permit representatives of cannabis
testing facilities to make scheduled and unscheduled visits to their premises
in order to obtain random samples of cannabis items, in a quantity established
by the commission, to be transported to cannabis testing facilities for
inspection and testing to certify compliance with health, safety, and potency
standards adopted by the commission;

���� (d)�� Prescribe methods of
producing cannabis, and manufacturing and packaging cannabis items; conditions
of sanitation; safe handling requirements; approved pesticides and pesticide
testing requirements, to the extent not inconsistent with approved pesticides
and requirements otherwise established under federal and State law; and
standards of ingredients, quality, and identity of cannabis items manufactured,
packaged, or sold by cannabis establishments;

���� (e)�� Establish accreditation
criteria for responsible cannabis server and seller training and certification
programs for cannabis retailer employees;

���� (f)�� Provide that no licensed
cannabis establishment, distributor, or delivery service, or employee of a
cannabis establishment, distributor, or delivery service, shall consume, or
allow to be consumed, any cannabis items on the establishment's, distributor's,
or delivery service's premises, except as permitted in a cannabis consumption
area or premises' private area for employees as set forth in section 28 of
P.L.2019, c.153 (C.24:6I-21);

���� (g) (i) Set appropriate
dosage, potency, and serving size limits for cannabis items, provided that a
standardized serving of a cannabis product shall be no more than 10 milligrams
of active THC and no individual edible cannabis product for sale shall contain
more than 100 milligrams of active THC;

���� (ii)�� Require that each
single standardized serving of a cannabis product in a multiple-serving edible
product is physically demarked in a way that enables a reasonable person to
determine how much of the product constitutes a single serving of active THC,
and that each standardized serving of the cannabis product shall be easily
separable to allow an average person 21 years of age or older to physically
separate, with minimal effort, individual servings of the product;

���� (iii)� Require that, if it is
impracticable to clearly demark every standardized serving of cannabis product
or to make each standardized serving easily separable in an edible cannabis
product, the product shall contain no more than 10 milligrams of active THC per
unit of sale;

���� (h) Establish a universal
symbol to indicate that a cannabis item contains cannabis, which shall be
marked, stamped, or imprinted directly on an edible retail cannabis product, or
on each single standardized serving in a multiple-serving edible cannabis product,
unless the item is a loose bulk good such as granola or cereal, a powder, a
liquid-infused item, or another form too impractical to be marked, stamped, or
imprinted;

���� (i)��� Prohibit the use of a
commercially manufactured or trademarked food product as an edible retail
cannabis product, provided that a commercially manufactured or trademarked food
product may be used as a component of an edible retail cannabis product or part
of a product's recipe so long as the commercially manufactured or trademarked
food product is used in a way that renders it unrecognizable in the final
edible cannabis product and the product is not advertised as containing the
commercially manufactured or trademarked food product;

���� (j)��� Establish screening,
hiring, training, and supervising requirements for cannabis retailer employees
and others who manufacture or handle cannabis items;

���� (k)�� Promote general sanitary
requirements for the handling, storage, and disposal of cannabis items, and the
maintenance of cannabis establishments, and cannabis distribution and cannabis
delivery service premises;

���� (l)��� Provide for rigorous
auditing, inspection, and monitoring of cannabis establishments, distributors,
and delivery services for compliance with health and safety rules and
regulations;

���� (m)� Require the
implementation of security requirements for cannabis retailers and premises
where cannabis items are manufactured, and safety protocols for cannabis
establishments, distributors, and delivery services, and their employees;

���� (n)�� Prescribe reasonable
restrictions on the manner, methods, and means by which cannabis cultivators
and cannabis distributors shall transport cannabis within the State, and all
licensees shall transport cannabis items within the State; and

���� (o)�� Establish procedures for
identification, seizure, confiscation, destruction, or donation to law
enforcement for training purposes of cannabis or cannabis items produced,
manufactured, sold, or offered for sale within this State which do not conform
in all respects to the standards prescribed by P.L.2021, c.16 (C.24:6I-31 et
al.);

���� (9)�� Restrictions on the
advertising and display of cannabis items and cannabis paraphernalia,
including, but not limited to, requirements that:

���� (a)�� Restrict advertising of
cannabis items and cannabis paraphernalia in ways that target or are designed
to appeal to individuals under the legal age to purchase cannabis items,
including, but not limited to depictions of a person under 21 years of age consuming
cannabis items, or, includes objects, such as toys, characters, or cartoon
characters suggesting the presence of a person under 21 years of age, or any
other depiction designed in any manner to be especially appealing to a person
under 21 years of age;

���� (b)�� Prohibit advertising of
any cannabis items or cannabis paraphernalia on television, or on radio between
the hours of 6:00 a.m. and 10:00 p.m.;

���� (c)�� Prohibit engaging in
advertising unless the advertiser has reliable evidence that at least 71.6
percent of the audience for the advertisement is reasonably expected to be 21
years of age or older;

���� (d)�� Prohibit engaging in
advertising or marketing directed towards location-based devices, including but
not limited to cellular phones, unless the marketing is a mobile device
application installed on the device by the owner of the device who is 21 years
of age or older and includes a permanent and easy opt-out feature and warnings
that the use of cannabis items is restricted to persons 21 years of age or
older;

���� (e)�� Prohibit the sponsoring
of a charitable, sports, musical, artistic, cultural, social, or other similar
event or advertising at or in connection with such an event unless the sponsor
or advertiser has reliable evidence that no more than 20 percent of the audience
at the event is reasonably expected to be under the legal age to purchase
cannabis items;

���� (f)�� Require all
advertisements to contain the following warning: "This product contains
cannabis.� For use only by adults 21 years of age or older.� Keep out of the
reach of children.";

���� (g)�� Prohibit the advertising
of cannabis items or cannabis paraphernalia in any form or through any medium
whatsoever within 200 feet of any elementary or secondary school grounds.� This
subparagraph shall not apply to advertisements within the premises of a
cannabis retailer.

���� For the purposes of this
section, a noncommercial message shall not be considered an advertisement.�

���� (10) A requirement that only
cannabis items and cannabis paraphernalia are available for sale at a cannabis
establishment;

���� (11) Procedures for the
commission to conduct announced and unannounced visits to cannabis
establishments, distributors, and delivery services, to make, or cause to be
made, such investigations as it shall deem proper in the administration of
P.L.2021, c.16 (C.24:6I-31 et al.) and any other laws which may hereafter be
enacted concerning cannabis, or the production, manufacture, distribution,
sale, or delivery thereof, including the inspection and search of any premises
for which the license is sought or has been issued, of any building containing
the same, of licensed buildings, examination of the books, records, accounts,
documents and papers of the licensees or on the licensed premises;

���� (a)�� The commission shall be
authorized and may at any time make an examination of the premises of any
person or entity licensed under P.L.2021, c.16 (C.24:6I-31 et al.) for the
purpose of determining compliance with P.L.2021, c.16 (C.24:6I-31 et al.) and
the rules of the commission;

���� (b)�� The commission may
require licensee compliance with P.L.2021, c.16 (C.24:6I-31 et al.), and may
appoint auditors, investigators and other employees that the commission
considers necessary to enforce its powers and perform its duties;

���� (c)�� During any inspection of
a licensed premises, the commission may require proof that a person performing
work at the premises is 18 years of age or older. If the person does not
provide the commission with acceptable proof of age upon request, the commission
may require the person to immediately cease any activity and leave the premises
until the commission receives acceptable proof of age; and

���� (d)�� The commission shall not
be required to obtain a search warrant to conduct an investigation or search of
licensed premises;

���� (12) Record keeping
requirements, including, but not limited to, the following:

���� (a)�� The obligation of every
cannabis cultivator to keep a complete and accurate record of all sales of
cannabis flowers, cannabis leaves, and immature cannabis plants, and a complete
and accurate record of the number of cannabis flowers produced, the number of
ounces of cannabis leaves produced, the number of immature cannabis plants
produced, and the dates of production; the obligation of every cannabis
establishment to keep a complete and accurate record of all sales of cannabis
items, and a complete and accurate record of the number of ounces of usable
cannabis sold; the obligation of every cannabis distributor to keep a complete
and accurate record of all cannabis and cannabis items transported in bulk, and
the sending and receiving cannabis establishments involved in each
transportation of the cannabis or cannabis items; and the obligation of every
cannabis delivery service to keep a complete and accurate record of all
cannabis item deliveries made to consumers based on orders fulfilled by of
cannabis retailers;

���� (b)�� Such records shall be
kept and maintained for four years, however there shall not be a requirement
that the records be maintained on the premises of a licensee, and the records
shall be in such form and contain such other information as the commission may
require; and

���� (c)�� The commission may, at
any time, with adequate notice, examine the books and records of any cannabis
establishment, distributor, or delivery service, and may appoint auditors,
investigators, and other employees that the commission considers necessary to enforce
its powers and its duties;

���� (13) Procedures for inspecting
samples of cannabis items, including:

���� (a)�� On a schedule determined
by the commission, every licensed cannabis cultivator and manufacturer shall
submit representative samples of cannabis items produced or manufactured by the
licensee to an independent, third-party licensed testing facility meeting the
accreditation requirements established by the commission, or random samples may
be obtained by representatives of the facility making a scheduled or
unscheduled visit to the licensee's premises, for inspection and testing to
certify compliance with standards adopted by the commission. Any sample
remaining after testing shall be destroyed by the facility or returned to the
licensee, unless that sample does not meet the applicable standards adopted by
the commission, in which case it may be retained for purposes of retesting upon
request of a licensee in accordance with subparagraph (c) of this paragraph;

���� (b)�� Licensees shall submit
the results of this cannabis item inspection and testing to the commission on a
form developed by the commission; and

���� (c)�� If a sample inspected
and tested under this section does not meet the applicable standards adopted by
the commission, the sample may, upon notice to the commission, be retested at
the request of a licensee in a manner prescribed by the commission, and in
addition to a retest, or as an alternative thereto, the licensee may also be
permitted an opportunity to remediate, upon notice to the commission, the batch
or lot from which the failed sample was taken, which batch or lot shall be
subject to a subsequent test of a new representative sample in a manner
prescribed by the commission.� Any request for a retest of a sample, and any
retest and reporting of results, as well as any batch or lot remediation
process undertaken and subsequent testing of that batch or lot, shall be
completed within a time period established by the commission.� The commission
shall also provide a process by which samples, batches, and lots that failed
retesting or remediation, as applicable, shall be destroyed;

���� (14) Establishing the number
of cannabis retailers, and permissible business arrangements with respect to
other types of retailing businesses:

���� (a) (i) Assuming there are
sufficient qualified applicants for licensure, the commission shall, subject to
periodic evaluation as described in paragraph (1) of this subsection, issue a
sufficient number of Class 5 Retailer licenses to meet the market demands of
the State, giving regard to geographical and population distribution throughout
the State; and

���� (ii)�� the provision of
adequate access to licensed sources of cannabis items to discourage purchases
from the illegal market; and

���� (b) A cannabis retailer's
premises shall not be located in or upon any premises in which operates a
grocery store, delicatessen, indoor food market, or other store engaging in
retail sales of food, or in or upon any premises in which operates a store that
engages in licensed retail sales of alcoholic beverages, as defined by
subsection b. of R.S.33:1-1; and

���� (15) Civil penalties for the
failure to comply with regulations adopted pursuant to this section.

���� b.��� In order to ensure that
individual privacy is protected, the commission shall not require a consumer to
provide a cannabis retailer with personal information other than
government-issued identification as set forth in subparagraph (a) of paragraph
(6) of subsection a. of this section in order to determine the consumer's
identity and age, and a cannabis retailer shall not collect and retain any
personal information about consumers other than information typically acquired
in a financial transaction conducted by the holder of a Class C retail license
concerning alcoholic beverages as set forth in R.S.33:1-12.

���� c.���� Once regulations are
adopted by the commission pursuant to subsection a. of this section, but prior
to the commencement of the application process, the commission shall conduct a
series of information sessions in every county in New Jersey to educate residents
of New Jersey about the responsibilities, opportunities, requirements,
obligations, and processes for application for a license to operate a cannabis
establishment, distributor, or delivery service. The commission shall conduct
an appropriate number of information sessions in each county considering the
population of each county, but no fewer than one information session in each
county. The commission shall publicize the day, time, location, and agenda of
each information session broadly through television, radio, Internet, print,
and local agencies.

���� d.��� The commission shall:

���� (1)�� Examine available
research, and may conduct or commission new research or convene an expert task
force, to investigate the influence of cannabis and marijuana on the ability of
a person to drive a vehicle, on methods for determining whether a person is under
the influence of cannabis or marijuana, and on the concentration of active THC,
as defined in section 3 of P.L.2021, c.16 (C.24:6I-33), in a person's blood, in
each case taking into account all relevant factors; and

���� (2)�� Report the results of
the research to the Governor and, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), the Legislature and make recommendations regarding both
administrative and legislative action as the commission deems necessary.

(cf: P.L.2021, c.16, s.18)

���� 7.��� Section 33 of P.L.2021,
c.16 (C.24:6I-46) is amended to read as follows:

���� 33.� Marketplace Regulation.

���� a. (1) (a) For a period of 24
months after the effective date of P.L.2021, c.16 (C.24:6I-31 et al.), it shall
be unlawful for any owner, part owner, stockholder, officer, or director of any
corporation, or any other person interested in any cannabis cultivator,
cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis
delivery service, or cannabis testing facility to engage in the retailing of
any cannabis items in this State, or to own, either in whole or in part, or be
directly or indirectly interested in a cannabis retailer, and such interest
shall include any payments or delivery of money or property by way of loan or
otherwise accompanied by an agreement to sell the product of said cannabis
cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor,
or cannabis testing facility, but does not include any arrangement between a
cannabis delivery service and a cannabis retailer for making deliveries of
cannabis items to consumers. During this 24-month period, the holder of a Class
1 Cannabis Cultivator license to operate as a cannabis cultivator or a Class 2
Cannabis Manufacturer license to operate as a cannabis manufacturer may hold
one other license to operate another cannabis establishment, other than a Class
3 Cannabis Wholesaler license to operate as a cannabis wholesaler or a Class 5
Cannabis Retailer license to operate as a cannabis retailer; and the holder of
a Class 3 Cannabis Wholesaler license to operate as a cannabis wholesaler may
hold one other Class 4 Cannabis Distributor license to operate as a cannabis
distributor.

���� (b)�� Throughout the 24-month
period set forth in subparagraph (a) of this paragraph, the commission, except
as authorized by paragraph (2) of subsection b. of this section, shall not
allow, providing there exist qualified applicants, more than 37 cannabis cultivators
to be simultaneously licensed and engaging in cannabis production, which number
shall include any alternative treatment centers deemed to be licensed as
cannabis cultivators who are issued licenses by the commission pursuant to
paragraph (3) of this subsection; provided that cannabis cultivator licenses
issued to microbusinesses pursuant to subsection f. of section 19 of P.L.2021,
c.16 (C.24:6I-36) shall not count towards this limit.

���� (2)�� For a period of 24
months after the effective date of P.L.2021, c.16 (C.24:6I-31 et al.), it shall
be unlawful for any owner, part owner, stockholder, officer, or director of any
corporation, or any other person engaged in any retailing of any cannabis items
to engage in the growing of, testing of, manufacturing of, wholesaling of, or
transporting in bulk any cannabis items, or to own either whole or in part, or
to be a shareholder, officer or director of a corporation or association,
directly or indirectly, interested in any cannabis� cultivator, cannabis
manufacturer, cannabis wholesaler, cannabis distributor, cannabis delivery
service, or cannabis testing facility.

���� (3)� (a)� (i)� Except with
respect to the cap on the number of cannabis cultivator licenses set forth in
subparagraph (b) of paragraph (1) of this subsection, the provisions of
paragraphs (1) and (2) of this subsection 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.), or to any alternative treatment center that was issued a
permit subsequent to that effective date pursuant to an application submitted
prior to that effective date,

���� to the one alternative
treatment center, out of four, 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 that effective date, that is expressly exempt, pursuant to subsection
a. of section 11 of P.L.2019, c.153 (C.24:6I-7.1), from the provisions of
subsubparagraph (i) of subparagraph (a) of paragraph (2) of subsection a. of
section 7 of P.L.2009, c.307 (C.24:6I-7), which exemption permits the
alternative treatment center to concurrently hold more than one medical
cannabis permit, and that one alternative treatment center is deemed pursuant
to that section 7 (C.24:6I-7) to concurrently hold more than one permit, and

���� to the one alternative
treatment center, out of three, issued a permit pursuant to an application
submitted on or after the effective date of P.L.2019, c.153 (C.24:6I-5.1 et
al.), that is expressly exempt, pursuant to subsection a. of section 11 of
P.L.2019, c.153 (C.24:6I-7.1), from the provisions of subsubparagraph (i) of
subparagraph (a) of paragraph (2) of subsection a. of section 7 of P.L.2009,
c.307 (C.24:6I-7), which exemption permits the alternative treatment center to
concurrently hold more than one medical cannabis permit, and that one
alternative treatment center is deemed pursuant to that section 7 (C.24:6I-7)
to concurrently hold more than one permit,����

���� and which alternative
treatment center is also deemed, pursuant to subsubparagraph (ii) of
subparagraph (c) of paragraph (2) of section 7 of P.L.2009, c.307 (C.24:6I-7),
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 an alternative treatment center pursuant to
subparagraph (d) of paragraph (2) of subsection a. of section 7 of P.L.2009,
c.307 (C.24:6I-7), and a Class 6 Cannabis Delivery license, or alternatively to
hold a Class 3 Cannabis Wholesaler license, and may also be deemed to hold a
Class 4 Cannabis Distributor license.

���� (ii)�� For each alternative
treatment center deemed to have licenses pursuant to subsubparagraph (i) of
this subparagraph, the commission shall not require the submission of an
application for licensure, as the application requirement is deemed satisfied
by the alternative treatment center's previously approved permit application
that was submitted to the Department of Health or to the commission pursuant to
section 7 of P.L.2009, c.307 (C.24:6I-7), but the alternative treatment center
shall not begin to operate as any class of cannabis establishment distributor,
or delivery service until the alternative treatment center has submitted a
written approval for a proposed cannabis establishment distributor, or delivery
service from the municipality in which the proposed establishment distributor,
or delivery service is to be located, which approval is based on a
determination that the proposed establishment distributor, or delivery service
complies with the municipality's restrictions on the number of establishments
distributor, or delivery services, as well as the location, manner, and times
of operation of establishments or distributors enacted pursuant to section 31
of P.L.2021, c.16 (C.24:6I-45). The commission shall thereafter only issue the
initial license to the alternative treatment center for a cannabis
establishment of the appropriate class, or for a cannabis distributor or
delivery service, once the commission certifies that it has sufficient
quantities of medical cannabis and medical cannabis products available to meet
the reasonably anticipated needs of registered qualifying patients in
accordance with subsubparagraph (iii) of this subparagraph.� The commission
shall begin accepting municipal approvals from alternative treatment centers
beginning on the date of adoption of the commission's initial rules and
regulations pursuant to subparagraph (a) of paragraph (1) of subsection d. of
section 6 of P.L.2021, c.16 (C.24:6I-34).

���� (iii) An alternative treatment
center with approval from a municipality pursuant to subsubparagraph (ii) of
this subparagraph shall not engage in activities related to the growing,
manufacturing, wholesaling, transporting or delivering of cannabis or cannabis
items until it has certified to the commission that that it has sufficient
quantities of medical cannabis and medical cannabis products available to meet
the reasonably anticipated needs of registered qualifying patients, and the
commission has accepted the alternative treatment center's certification, which
acceptance is conditioned on the commission's review of the alternative
treatment center as set forth in subsubparagraph (iv) of this subparagraph.
Upon acceptance of the certification, the commission shall issue the initial
license to the alternative treatment center for a cannabis establishment of the
appropriate class or for a cannabis distributor or delivery service.�
Nothing
herein shall be construed to prohibit or limit the ability of an alternative
treatment center to redesignate medical cannabis or medical cannabis products
to personal use cannabis or cannabis items at the alternative treatment
center�s licensed cannabis establishment for the appropriate class, including,
but not limited to, redesignation between any satellite cannabis cultivator or
manufacturer locations.

���� Notwithstanding the date
determined by the commission pursuant to paragraph (2) of subsection d. of
section 6 of P.L.2021, c.16 (C.24:6I-34) to be the first date on which cannabis
retailers issued licenses and conditional licenses begin retail sales of personal
use cannabis items, an alternate treatment center, if approved by the
commission to operate as a cannabis retailer, may begin to engage in the retail
sale of cannabis items on any date after the date that the commission adopts
its initial rules and regulations pursuant to subparagraph (a) of paragraph (1)
of subsection d. of section 6 of that act P.L.2021, c.16 (C.24:6I-34), so long
as it has certified to the commission that it has sufficient quantities of
medical cannabis and, if applicable, medical cannabis products available to
meet the reasonably anticipated needs of registered qualifying patients, and
the commission has accepted the alternative treatment center's certification,
which acceptance is conditioned on the commission's review of the alternative
treatment center as set forth in subsubparagraph (iv) of this subparagraph.�
Upon acceptance of the certification, the commission shall issue the initial
cannabis retailer license to the alternative treatment center for engaging in
the retail sale of cannabis items.

���� (iv)� An alternative treatment
center issued a license for a cannabis establishment or delivery service shall
be authorized to use the same premises for all activities authorized under
P.L.2021, c.16 (C.24:6I-31 et al.) and the "Jake Honig Compassionate Use
Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.), without being
required to establish or maintain any physical barriers or separations between
operations related to the medical use of cannabis and operations related to
personal use of cannabis items, provided that the alternative treatment center
shall be required to certify that it hassufficient quantities of medical
cannabis and, if applicable, medical cannabis products available to meet the
reasonably anticipated needs of registered qualifying patients, as set forth in
subsubparagraph (ii) or (iii) of this subparagraph, and only if accepted by the
commission, which is a condition for licensure as a cannabis establishment of
the appropriate class or as a cannabis delivery service.

���� In determining whether to
accept, pursuant to this subparagraph, an alternative treatment center's
certification that it has sufficient quantities of medical cannabis or medical
cannabis products available to meet the reasonably anticipated needs of registered
qualifying patients, the commission shall assess patient enrollment, inventory,
sales of medical cannabis and medical cannabis products, and any other factors
determined by the commission through regulation.

���� As a condition of licensure
following acceptance of a certification, an alternative treatment center shall
meet the anticipated treatment needs of registered qualifying patients before
meeting the retail requests of cannabis consumers, and the alternative
treatment center shall not make operational changes that reduce access to
medical cannabis for registered qualifying patients in order to operate a
cannabis establishment or delivery service.� If an alternative treatment center
is found by the commission to not have sufficient quantities of medical
cannabis or medical cannabis products available to meet the reasonably
anticipated needs of qualified patients, the commission may issue fines, limit
retail or other sales, temporarily suspend the alternative treatment center's
cannabis establishment, distributor, or delivery service license, or issue any
other penalties determined by the commission through regulation.

���� (b)�� Beginning on a date
determined by the commission, to be not later than one year from the date
determined by the commission pursuant to paragraph (2) of subsection d. of
section 6 of P.L.2021, c.16 (C.24:6I-34) to be the first date on which cannabis
retailers issued licenses and conditional licenses begin retail sales of
personal use cannabis items, an alternative treatment center deemed to have
licenses and issued initial licenses pursuant to subparagraph (a) of this
paragraph shall certify to the commission, within a period of time, as
determined by the commission, prior to the date on which a license issued to
the alternative treatment center is set to expire, the continued material
accuracy of the alternative treatment center's previously approved permit
application to the Department of Health or to the commission pursuant to
section 7 of P.L.2009, c.307 (C.24:6I-7), and its compliance with the
provisions of P.L.2021, c.16 (C.24:6I-31 et al.)as required by the commission
for its operations concerning cannabis or cannabis items, and this
certification shall be supplemented with a new written approval from the
municipality in which the alternative treatment center is operating as a
cannabis establishment or delivery service for which the initial license was
issued, approving the continued operations as a cannabis establishment
distributor, or delivery service.� The commission shall renew the license of
the alternative treatment center based upon a review of the certification and
supporting municipality's continued approval.� This license renewal process
shall thereafter be followed for each expiring license issued to the
alternative treatment center.�

���� b.��� Following the 24-month
period set forth in subparagraph (a) of paragraph (1) of subsection a. of this
section, a cannabis license holder shall be authorized to hold:

���� (1)� (a)� a Class 1 Cannabis�
Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 5 Cannabis
Retailer license, and a Class 6 Cannabis Delivery license concurrently,
provided that no license holder shall be authorized to concurrently hold more
than one license of each class, except for an alternative treatment center that
was deemed, during the 24-month period, to have an additional Class 5 Cannabis
Retailer license for each satellite dispensary that was authorized and
established by the alternative treatment center pursuant to subparagraph (d) of
paragraph (2) of subsection a. of section 7 of P.L.2009, c.307 (C.24:6I-7).�
These additional retailer licenses only permit the retail operation of each
satellite dispensary, and shall not be replaced by any other class of cannabis
establishment distributor, or delivery service license; or

���� (b)�� a Class 3 Cannabis
Wholesaler license and a Class 4 Cannabis Distributor license.� In no case may
a holder of a Class 3 Cannabis Wholesaler license concurrently hold a license
of any other class of cannabis establishment, or concurrently hold a license as
a cannabis delivery service.

���� (2)�� The commission, pursuant
to its authority under paragraph (1) of subsection a. of section 18 of
P.L.2021, c.16 (C.24:6I-35) for making periodic evaluations of whether the
number of each class of cannabis establishment, or number of cannabis
distributors or delivery services, is sufficient to meet the market demands of
the State, shall review the limit on the number of cannabis cultivator licenses
set forth in subparagraph (b) of paragraph (1) of subsection a. of this
section, and providing there exist qualified applicants, accept new
applications for additional licenses as it deems necessary.

���� (3)�� A license holder may
submit an application for a license of any type that the license holder does
not currently hold prior to the expiration of the 24-month period set forth in
subparagraph (a) of paragraph (1) of subsection a. of this section, or thereafter,
does not currently hold pursuant to paragraph (1) of this subsection, provided
that no license shall be awarded to the license holder during the 24-month
period, or thereafter, if issuance of the license would violate the
restrictions set forth in subsection a. of this section concerning the classes
of licenses that may be concurrently held during that 24-month period, or the
restrictions set forth in paragraph (1) of this subsection.

���� c.���� Notwithstanding the
provisions of this section, 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 Class 5
cannabis retailer license, 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 Class 5 cannabis retailer license, provided that each
such retailer 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 Class 5 cannabis retailer license that
has or will receive significant financial or technical assistance or the
significant use of intellectual property under this subsection shall include
with the license 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 Class 5
cannabis retailer license that receives significant financial or technical
assistance or the significant use of intellectual property under this
subsection 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 Class 5
cannabis retailer license as authorized under this subsection 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 Class 5 cannabis retailer license in which
an investor, investor group, or fund owns an interest as authorized pursuant to
this subsection 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 Class 1
cannabis cultivator license, Class 2 cannabis manufacturer license, or Class 5
cannabis retailer license, or an alternative treatment center, or an individual
associated with the ownership or management of such entity, may invest or
participate in an investor group or a fund that meets the requirements of this
subsection with respect to a Class 5 cannabis retailer license or an
alternative treatment center permit.

(cf: P.L.2023, c.162, s.2)

���� 8.��� Section 29 of P.L.2019,
c.153 (C.24:6I-22) is amended to read as follows:

���� 29. a. (1) The commission
shall develop and maintain a system for tracking:

���� (a)�� the cultivation of
medical cannabis, the manufacturing of medical cannabis products, the transfer
of medical cannabis and medical cannabis products between medical cannabis
cultivators, medical cannabis manufacturers, medical cannabis dispensaries,
clinical registrants, testing laboratories as authorized pursuant to paragraph
(5) of subsection a. of section 7 of P.L.2009, c.307 (C.24:6I-7), subsection h.
of section 27 of P.L.2019, c.153 (C.24:6I-20), and cannabis testing facilities
pursuant to section 18 of P.L.2021, c.16 (C.24:6I-35), and the dispensing or
delivery of medical cannabis to registered qualifying patients, designated
caregivers, and institutional caregivers; and

���� (b)�� the production of
personal use cannabis, the manufacturing of cannabis items, the transportation
by cannabis distributors or other transfer of cannabis items between the
premises of cannabis cultivators, cannabis manufacturers, cannabis wholesalers,
cannabis retailers, and authorized laboratories and testing facilities, the
retail sale of cannabis items to persons 21 years of age or older, and the
delivery of cannabis items to persons 21 years of age or older through cannabis
delivery services or by personal use cannabis handlers as authorized pursuant
to P.L.2021, c.16 (C.24:6I-31 et al.).

���� (2)�� The tracking system
shall, among other features as determined by the commission, utilize a stamp
affixed to a container or package for medical cannabis or personal use cannabis
items to assist in the collection of the information required to be tracked pursuant
to subsection c. of this section.

���� (a)�� The commission, in
consultation with the Director of the Division of Taxation, shall secure stamps
based on the designs, specifications, and denominations prescribed by the
commission in regulation, and which incorporate encryption, security, and
counterfeit-resistant features to prevent the unauthorized duplication or
counterfeiting of any stamp.� The stamp shall be readable by a scanner or
similar device that may be used by the commission, the Director of the Division
of Taxation, medical cannabis cultivators, medical cannabis manufacturers,
medical cannabis dispensaries, and clinical registrants, and personal use
cannabis cultivators, cannabis manufacturers, cannabis wholesalers, cannabis
distributors, cannabis retailers, and cannabis delivery services.

���� (b)�� The commission, and the
Director of the Division of Taxation if authorized by the commission, shall
make stamps available for purchase by medical cannabis cultivators, medical
cannabis manufacturers, and clinical registrants, and personal use cannabis cultivators,
cannabis manufacturers, cannabis wholesalers, cannabis distributors, cannabis
retailers, and cannabis delivery services, which shall be the only entities
authorized to affix a stamp to a container or package for medical cannabis or
personal use cannabis items in accordance with applicable regulations
promulgated by the commission in consultation with the Director of the Division
of Taxation.� The price charged by the commission for a stamp shall be
reasonable and commensurate with the cost of producing the stamp.

���� (c)�� A medical cannabis
cultivator, medical cannabis manufacturer, medical cannabis dispensary,
clinical registrant, or certified medical cannabis handler, or a personal use
cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis
distributor, cannabis retailer, cannabis delivery service, or certified
personal use cannabis handler, shall not purchase, sell, offer for sale,
transfer, transport, or deliver any medical cannabis or personal use cannabis
item unless a stamp is properly affixed to the container or package for the
medical cannabis or personal use cannabis item.

���� b.��� The purposes of the
system developed and maintained under this section include, but are not limited
to:

���� (1)�� preventing the diversion
of medical cannabis and personal use cannabis items to criminal enterprises,
gangs, cartels, persons not authorized to possess medical cannabis or personal
use cannabis items, and other states;

���� (2)�� preventing persons from
substituting or tampering with medical cannabis and personal use cannabis
items;

���� (3)�� ensuring an accurate
accounting of the cultivation, manufacturing, transferring, dispensing, and
delivery of medical cannabis, and the production, manufacturing, transporting,
transferring, sale, and delivery of personal use cannabis items;

���� (4)�� ensuring that the
testing results from licensed testing laboratories and facilities are
accurately reported; and

���� (5)�� ensuring compliance with
the rules and regulations adopted by the commission and any other law of this
State that charges the commission with a duty, function, or power related to
medical cannabis or personal use cannabis items.

���� c.���� The system developed
and maintained under this section shall be capable of tracking, at a minimum:

���� (1)�� the propagation of
immature medical cannabis plants and personal use cannabis plants, the
production of medical cannabis by a medical cannabis cultivator, and the
production of personal use cannabis by a cannabis cultivator;

���� (2)�� the utilization of
medical cannabis in the manufacture and creation of medical cannabis products
by a medical cannabis manufacturer, the manufacturing of personal use cannabis
items by a cannabis manufacturer, the receiving, storing, and sending of personal
use cannabis items by a cannabis wholesaler, and the transporting in bulk
cannabis items by a cannabis distributor;

���� (3)�� the transfer of medical
cannabis and medical cannabis products, and personal use cannabis items, to and
from licensed testing laboratories and facilities for testing purposes;

���� (4)�� the dispensing of
medical cannabis by a medical cannabis dispensary or clinical registrant, and
the selling of personal use cannabis items by a cannabis retailer;

���� (5)�� the furnishing of
medical cannabis by a medical cannabis dispensary or clinical registrant to a
medical cannabis handler for delivery, and the furnishing of personal use
cannabis items by a cannabis retailer to a personal use cannabis handler for
delivery;

���� (6)�� the delivery of medical
cannabis by a medical cannabis handler, and the delivery of personal use
cannabis items by a personal use cannabis handler;

���� (7)�� the purchase, sale, or
other transfer of medical cannabis and medical cannabis products between
medical cannabis cultivators, medical cannabis manufacturers, medical cannabis
dispensaries, and clinical registrants as authorized pursuant to paragraph (5) of
subsection a. of section 7 of P.L.2009, c.307 (C.24:6I-7) and subsection h. of
section 27 of P.L.2019, c.153 (C.24:6I-20), and the purchase, sale,
transporting, or other transfer of personal use cannabis and cannabis items by
or between cannabis cultivators, cannabis manufacturers, cannabis wholesalers,
cannabis distributors, cannabis retailers, and cannabis delivery services as
authorized pursuant to P.L.2021, c.16 (C.24:6I-31 et al.);
[
and
]

���� (8)��
The redesignation of
medical cannabis or medical cannabis products to personal use cannabis or
cannabis items at the alternative treatment center�s licensed cannabis
establish for the appropriate class, including, but not limited to,
redesignation between any satellite cannabis cultivator or manufacturer
locations, provided that such alternative treatment center has sufficient
quantities of medical cannabis and medical cannabis products available to meet
the reasonably anticipated needs of registered qualifying patients; and

���� (9)�� any other information
that the commission determines is reasonably necessary to accomplish its
duties, functions, and powers.

(cf: P.L.2021, c.16, s.38)

���� 9.��� (New section)�
Notwithstanding any provision of the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the Cannabis Regulatory
Commission, in accordance with the authority granted pursuant to P.L.2021, c.16
(C.24:6I-31 et al.) and section 31 of P.L.2019, c.153 (C.24:6I-24), is
authorized to adopt immediately upon filing with the Office of Administrative
Law rules and regulations necessary to implement P.L.��� , c.���� (C.������� )
(pending before the Legislature as this bill). The rules and regulations
adopted pursuant to this section shall be effective for a period not to exceed
18 months following the date of filing and may thereafter be amended, adopted,
or readopted by the director in accordance with the requirements of P.L.1968,
c.410 (C.52:14B-1 et seq.).

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

STATEMENT

���� This bill makes various
changes to the �Cannabis Regulatory, Enforcement Assistance, and Marketplace
Modernization Act� (CREAMMA) and the �Jake Honig Compassionate Use Medical
Cannabis Act� (Medical Cannabis Act).

Municipal
Medical Cannabis Limitations

���� Under the bill, a municipality
may not prohibit the operation of a retailer of cannabis items by any medical
cannabis dispensary issued a permit pursuant to the Medical Cannabis Act that
has been opened and operating without any violation, or notice thereof, for a
period of not less than 180 days.

���� Under current law, a
municipality may impose separate local licensing or endorsement requirements as
a part of its restrictions on the number of operations of cannabis licensees,
or their location, manner, or times of operation.� Under the bill, a restriction
on the number or location of cannabis licensees operating in a municipality
does not apply to any medicinal cannabis retailer operating as of the effective
date of the CREAMMA.

���� The bill also prohibits the
Cannabis Regulatory Commission (commission) from requiring municipal review,
consent, or approval as a condition of issuing a Class 5 Retailer License to a medical
cannabis dispensary issued a permit pursuant to the Medical Cannabis Act, which
is also applying for approval or renewal of a Class 5 Retailer License pursuant
to CREAMMA that is proposed to be co-located on the premises of an existing
medical cannabis dispensary in a municipality that permits the retail sale of
medical cannabis, but not the retail sale of adult-use cannabis items.� Any
prior approval authorizing the medical cannabis dispensary to lawfully operate
on the premises shall be deemed to authorize the Class 5 Cannabis Retailer use
at the same location for all purposes.

Commission
Application Determinations

���� Under current law and
commission regulations, the commission has 30 days to make a determination on a
completed conditional license, and 90 days to make a determination on a
completed annual license application.� Before the expiration of these periods,
the commission may make a determination that it requires more time to
adequately review the application.

���� Under the bill, if the commission
determines that it requires more time to adequately review an application, the
commission is required to, not more than 30 days after a determination for more
time to review, make a determination as to whether the application is approved
or denied, effectively establishing a cap on the total amount of time the
commission has to make a decision on an application.

Commission
Application Review

���� Under the bill, the commission
will no longer establish a point scale and rank applicants based on that
score.� The bill also removes the requirement that certain documents be
submitted for commission review, and establishes that the commission
may

require such documents be included for review.

���� The bill establishes that the
commission is no longer required to verify that the following information be
contained in an application: (1) a business plan and management operation
profile for the proposed cannabis establishment, distributor, or delivery
service; or (2) the plan by which the applicant intends to obtain appropriate
liability insurance coverage for the cannabis establishment, distributor, or
delivery service.�

���� The bill removes the
requirement that the commission give greater weight to certain applicants when
evaluating the experience of an applicant.� The bill also removes the
requirement that the commission give special consideration to any applicant
that has entered into an agreement with an institute of higher education to
create an integrated curriculum.

���� Further, the bill permits the
commission to give an applicant a certain amount of time, determined by the
commission, to comply with additional conditions, outside of those which were
required for licensure, rather than limiting that period to 45 days.

Municipal
Ordinance Portal

���� The bill requires the
commission to create and maintain an online portal.� The online portal is
required to maintain a centralized municipal portal that includes any ordinance
or regulation related to the medical or adult-use cannabis markets that a
municipality has adopted in this State.� Any municipality that passes a
regulation, ordinance, or any change to a regulation or ordinance is required
to submit the regulation or ordinance to the commission for purposes of
maintaining this information.� The centralized municipal portal will be
accessible to the public.�

Family
Applicants or License Holder

���� This bill prohibits the
commission from prohibiting a family member, other than a spouse, of a license
applicant or license holder from also becoming a license applicant or license
holder.� This is intended to invalidate N.J.A.C.17:30-6.8, which prohibits
family members of a license applicant or license holder from also becoming
such.

Alternative
Treatment Centers (ATC)

���� The bill permits ATCs to
redesignate products as either medical or adult-use cannabis at any point in
its supply chain, provided that the ATC holds the appropriate license at the
point of redesignation.