Clarifies that unlawful gifting of marijuana or cannabis is prohibited under "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act."

A4653

ASSEMBLY, No. 4653

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Sponsored by:

Assemblywoman� AURA K. DUNN

District 25 (Morris and Passaic)

SYNOPSIS

���� Clarifies that unlawful gifting of marijuana or
cannabis is prohibited under �New Jersey Cannabis Regulatory, Enforcement
Assistance, and Marketplace Modernization Act.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning marijuana and amending P.L.2021, c.16 and
N.J.S.2C:35-5.

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

���� 1.��� Section 46 of P.L.2021,
c.16 (C.2C:35-10a) is amended to read as follows:

���� 46.� Personal Use of Cannabis
Items.

���� Notwithstanding any other
provision of law, the following acts are not unlawful and shall not be an
offense or a basis for seizure or forfeiture of assets under N.J.S.2C:64-1 et
seq. or other applicable law for persons 21 years of age or older, provided the
acts are consistent with the relevant definitions set forth in section 3 of
P.L.2021, c.16 (C.24:6I-33), and when an act involves a cannabis item, it was
first obtained directly from a licensed cannabis retailer or delivered by a
licensed cannabis delivery service making delivery of a purchase order
fulfilled by that licensed cannabis retailer for off-premises delivery,
evidenced by it being in its original packaging or by a sales slip, invoice,
receipt, or other statement or memorandum:

���� a.���� Possessing, displaying,
purchasing, or transporting: cannabis paraphernalia; one ounce (28.35 grams) or
less of useable cannabis; the equivalent of one ounce (28.35 grams) or less of
usable cannabis as a cannabis product in solid, liquid, or concentrate form,
based upon an equivalency calculation for different product forms set by the
Cannabis Regulatory Commission, established pursuant to section 31 of P.L.2019,
c.153 (C.24:6I-24), in its regulations, and for which the commission may
utilize research conducted in other states on the issue of product equivalency
calculations when setting this equivalency; or 5 grams (0.176 ounce) or less of
cannabis resin.� Possessing, displaying, purchasing, or transporting at any one
time any amount of any cannabis items described herein in an amount greater
than as permitted pursuant to this subsection shall be considered a violation
of the "Comprehensive Drug Reform Act of 1987," P.L.1987, c.106
(N.J.S.2C:35-1 et al.), and subject the person to prosecution as if the person
possessed, displayed, purchased, or transported marijuana or hashish in
violation of that act;�

���� b.��� Transferring without
remuneration: one ounce (28.35 grams) or less of usable cannabis; the
equivalent of one ounce (28.35 grams) or less of usable cannabis as a cannabis
product in solid, liquid, or concentrate form, based upon the equivalency
calculation for different product forms set by the commission pursuant to
subsection a. of this section; or five grams (0.176 ounce) or less of cannabis
resin to a person who is of legal age for purchasing cannabis items, provided
that such transfer is for non-promotional, non-business purposes.� Transferring
at any one time any amount of any cannabis items described herein in an amount
greater than as permitted pursuant to this subsection
, �gifting,� or
transferring for promotional or business purposes as a gift, when in fact it is
a central part of the sales transaction
shall be considered a violation of
the "Comprehensive Drug Reform Act of 1987," P.L.1987, c.106
(N.J.S.2C:35-1 et al.), and subject the person to prosecution as if the person
distributed marijuana or hashish in violation of that act.�
As used in this
subsection �gifting� or �gift� means transferring cannabis for promotional or
business purposes occurring outside of a cannabis sales transaction in a Class
5 retail license facility.

���� Transferring to a person who
is not of legal age that was done by a cannabis establishment, distributor, or
delivery service licensed pursuant to P.L.2021, c.16 (C.24:6I-31 et al.), or an
employee or agent thereof, or by any other person, is subject to a civil
penalty or other legal consequences as set forth in subsection b. of section 64
of P.L.2021, c.16 (C.2C:35-10d) or section 6 of P.L.2021, c.25
(C.2A:170-51.11), as applicable, and a fine as set forth in section 3 of
P.L.1999, c.90 (C.2C:33-13.1);

���� c.���� Taking delivery of or
consuming a lawfully possessed cannabis item, provided that nothing in this
section shall permit a person to smoke, vape, or aerosolize any cannabis item
in a public place. This prohibition includes the smoking, vaping, or aerosolizing
of a cannabis item in any public place pursuant to law that prohibits the
smoking of tobacco, including N.J.S.2C:33-13 and the "New Jersey
Smoke-Free Air Act," P.L.2005, c.383 (C.26:3D-55 et seq.), and any indoor
public place, as that term is defined in section 3 of P.L.2005, c.383
(C.26:3D-57), or portion thereof, even if the smoking of tobacco is otherwise
permitted in that place or portion thereof pursuant to the "New Jersey
Smoke-Free Air Act"; except that the smoking, vaping, or aerosolizing of a
cannabis item shall be permitted in a cannabis consumption area as set forth in
section 28 of P.L.2019, c.153 (C.24:6I-21), and may be permitted by the person
or entity that owns or controls a hotel, motel, or other lodging establishment
as defined in section 1 of P.L.1967, c.95 (C.29:4-5) in up to 20 percent of its
guest rooms.� The smoking, vaping, or aerosolizing of a cannabis item may also
be prohibited or otherwise regulated in multifamily housing that is a multiple
dwelling as defined in section 3 of P.L.1967, c.76 (C.55:13A-3), as decided by
the person or entity that owns or controls the multifamily housing, or
prohibited or otherwise regulated in the structure or specific units of the
structure of a cooperative as defined in section 3 of P.L.1987, c.381
(C.46:8D-3) by the corporation or other legal entity that owns the structure,
or prohibited or otherwise regulated in the units of a condominium, as those
terms are defined by section 3 of P.L.1969, c.257 (C.46:8B-3), if approved by
the association for the condominium and a majority of all of the condominium's
unit owners, as those terms are defined in that section.� Except as otherwise
provided by P.L.2021, c.16 (C.24:6I-31 et al.), any penalties that may be
assessed for the smoking of tobacco where prohibited under the "New Jersey
Smoke-Free Air Act" shall be applicable to the smoking, vaping, or
aerosolizing of cannabis items where prohibited.� Concerning the consumption of
any cannabis item, other than by smoking, vaping, or aerosolizing: a person or
entity that owns or controls a property, other than multifamily housing that is
a multiple dwelling as defined in section 3 of P.L.1967, c.76 (C.55:13A-3), the
structure or specific units of the structure of a cooperative as defined in
section 3 of P.L.1987, c.381 (C.46:8D-3), a unit of a condominium, as those
terms are defined by section 3 of P.L.1969, c.257 (C.46:8B-3), or a site in a
mobile home park as defined in section 3 of P.L.1983, c.386 (C.40:55D-102),
which site is leased to the owner of a manufactured home, as defined in that
section, that is installed thereon, may prohibit or otherwise regulate the
consumption of cannabis items on or in that property, including a casino hotel
facility as defined in section 19 of P.L.1977, c.110 (C.5:12-19) with respect
to a hotel property, a casino as defined in section 6 of P.L.1977, c.110
(C.5:12-6), or casino simulcasting facility authorized pursuant to the
"Casino Simulcasting Act," P.L.1992, c.19 (C.5:12-191 et al.); and

���� d.��� Assisting another person
to engage in any of the acts described in subsections a. through c. of this
section, provided that the person being assisted is of legal age to purchase
cannabis items and the assistance being provided is without remuneration.

(cf: P.L.2021, c.25, s.11)

���� 2.��� N.J.S.2C:35-5 is amended
to read as follows:

���� 2C:35-5.���� Manufacturing,
Distributing or Dispensing. a.� Except as authorized by P.L.1970, c.226
(C.24:21-1 et seq.), it shall be unlawful for any person knowingly or
purposely:

���� (1)�� To manufacture,
distribute or dispense, or to possess or have under his control with intent to
manufacture, distribute or dispense, a controlled dangerous substance or
controlled substance analog; or

���� (2)�� To create, distribute,
or possess or have under his control with intent to distribute, a counterfeit
controlled dangerous substance.

���� b.��� Any person who violates
subsection a. with respect to:

���� (1)�� Heroin, or its analog,
or coca leaves and any salt, compound, derivative, or preparation of coca
leaves, and any salt, compound, derivative, or preparation thereof which is
chemically equivalent or identical with any of these substances, or analogs,
except that the substances shall not include decocainized coca leaves or
extractions which do not contain cocaine or ecogine, or
3,4-methylenedioxymethamphetamine or 3,4

methylenedioxyamphetamine, in a
quantity of five ounces or more including any adulterants or dilutants is
guilty of a crime of the first degree.� The defendant shall, except as provided
in N.J.S.2C:35-12, be sentenced to a term of imprisonment by the court.� The
term of imprisonment shall include the imposition of a minimum term which shall
be fixed at, or between, one-third and one-half of the sentence imposed, during
which the defendant shall be ineligible for parole.� Notwithstanding the
provisions of subsection a. of N.J.S.2C:43-3, a fine of up to $500,000 may be
imposed;

���� (2)�� A substance referred to
in paragraph (1) of this subsection, in a quantity of one-half ounce or more
but less than five ounces, including any adulterants or dilutants is guilty of
a crime of the second degree;

���� (3)�� A substance referred to
in paragraph (1) of this subsection in a quantity less than one-half ounce
including any adulterants or dilutants is guilty of a crime of the third degree
except that, notwithstanding the provisions of subsection b. of N.J.S.2C:43-3,
a fine of up to $75,000 may be imposed;

���� (4)�� A substance classified
as a narcotic drug in Schedule I or II other than those specifically covered in
this section, or the analog of any such substance, in a quantity of one ounce
or more including any adulterants or dilutants is guilty of a crime of the
second degree;

���� (5)�� A substance classified
as a narcotic drug in Schedule I or II other than those specifically covered in
this section, or the analog of any such substance, in a quantity of less than
one ounce including any adulterants or dilutants is guilty of a crime of the
third degree except that, notwithstanding the provisions of subsection b. of
N.J.S.2C:43-3, a fine of up to $75,000 may be imposed;

���� (6)�� Lysergic acid
diethylamide, or its analog, in a quantity of 100 milligrams or more including
any adulterants or dilutants, or phencyclidine, or its analog, in a quantity of
10 grams or more including any adulterants or dilutants, is guilty of a crime
of the first degree. Except as provided in N.J.S.2C:35-12, the court shall
impose a term of imprisonment which shall include the imposition of a minimum
term, fixed at, or between, one-third and one-half of the sentence imposed by
the court, during which the defendant shall be ineligible for parole.
Notwithstanding the provisions of subsection a. of N.J.S.2C:43-3, a fine of up
to $500,000 may be imposed;

���� (7)�� Lysergic acid
diethylamide, or its analog, in a quantity of less than 100 milligrams
including any adulterants or dilutants, or where the amount is undetermined, or
phencyclidine, or its analog, in a quantity of less than 10 grams including any
adulterants or dilutants, or where the amount is undetermined, is guilty of a
crime of the second degree;

���� (8)�� Methamphetamine, or its
analog, or phenyl-2-propanone (P2P), in a quantity of five ounces or more
including any adulterants or dilutants is guilty of a crime of the first
degree. Notwithstanding the provisions of subsection a. of N.J.S.2C:43-3, a
fine of up to $300,000 may be imposed;

���� (9) (a) Methamphetamine, or
its analog, or phenyl-2-propanone (P2P), in a quantity of one-half ounce or
more but less than five ounces including any adulterants or dilutants is guilty
of a crime of the second degree;

���� (b)�� Methamphetamine, or its
analog, or phenyl-2-propanone (P2P), in a quantity of less than one-half ounce
including any adulterants or dilutants is guilty of a crime of the third degree
except that notwithstanding the provisions of subsection b. of N.J.S.2C:43-3, a
fine of up to $75,000 may be imposed;

���� (10) (a) Marijuana in a
quantity of 25 pounds or more including any adulterants or dilutants, or 50 or
more marijuana plants, regardless of weight, or hashish in a quantity of five
pounds or more including any adulterants or dilutants, is guilty of a crime of
the first degree.� Notwithstanding the provisions of subsection a. of
N.J.S.2C:43-3, a fine of up to $300,000 may be imposed;

���� (b)�� Marijuana in a quantity
of five pounds or more but less than 25 pounds including any adulterants or
dilutants, or 10 or more but fewer than 50 marijuana plants, regardless of
weight, or hashish in a quantity of one pound or more but less than five pounds,
including any adulterants and dilutants, is guilty of a crime of the second
degree;

���� (11)� (a)� Prior to the
effective date of P.L.2021, c.19 (C.2C:35-23.1 et al.), marijuana in a quantity
of one ounce or more but less than five pounds including any adulterants or
dilutants, or hashish in a quantity of five grams or more but less than one
pound including any adulterants or dilutants, is guilty of a crime of the third
degree except that, notwithstanding the provisions of subsection b. of
N.J.S.2C:43-3, a fine of up to $25,000 may be imposed;

���� (b)�� On and after the
effective date of P.L.2021, c.19 (C.2C:35-23.1 et al.), marijuana in a quantity
of more than one ounce but less than five pounds including any adulterants or
dilutants, or hashish in a quantity of more than five grams but less than one pound
including any adulterants or dilutants, is guilty of a crime of the third
degree except that, notwithstanding the provisions of subsection b. of
N.J.S.2C:43-3, a fine of up to $25,000 may be imposed;

���� (12)� (a)� Prior to the
effective date of P.L.2021, c.19 (C.2C:35-23.1 et al.), marijuana in a quantity
of less than one ounce including any adulterants or dilutants, or hashish in a
quantity of less than five grams including any adulterants or dilutants, is
guilty of a crime of the fourth degree;

���� (b)�� On and after the
effective date of P.L.2021, c.19 (C.2C:35-23.1 et al.), marijuana in a quantity
of one ounce or less including any adulterants or dilutants, or hashish in a
quantity of five grams or less including any adulterants or dilutants, is, for
a first offense, subject to a written warning, which also indicates that any
subsequent violation is a crime punishable by a term of imprisonment, a fine,
or both, and for a second or subsequent offense, is guilty of a crime of the
fourth degree;

���� (i)��� The odor of marijuana
or hashish, or burnt marijuana or hashish, shall not constitute reasonable
articulable suspicion to initiate a search of a person to determine a violation
of subparagraph (b) of paragraph (12) of this subsection.� A person who violates
this subparagraph shall not be subject to arrest, detention, or otherwise be
taken into custody, unless the person is being arrested, detained, or otherwise
taken into custody for also committing another violation of law for which that
action is legally permitted or required;

���� (ii)�� A person shall not be
deprived of any legal or civil right, privilege, benefit, or opportunity
provided pursuant to any law solely by reason of committing a violation of
subparagraph (b) of paragraph (12) of this subsection, nor shall committing one
or more violations modify any legal or civil right, privilege, benefit, or
opportunity provided pursuant to any law, including, but not limited to, the
granting, renewal, forfeiture, or denial of a license, permit, or
certification, qualification for and the receipt, alteration, continuation, or
denial of any form of financial assistance, housing assistance, or other social
services, rights of or custody by a biological parent, or adoptive or foster
parent, or other legal guardian of a child or newborn infant, or pregnant
woman, in any action or proceeding by the Division of Child Protection and
Permanency in the Department of Children and Families, or qualification,
approval, or disapproval to serve as a foster parent or other legal guardian;

���� (iii) All local and county law
enforcement authorities shall, following the submission process used for the
uniform crime reporting system established by P.L.1966, c.37 (C.52:17B-5.1 et
seq.), submit a quarterly report to the Uniform Crime Reporting Unit, within
the Division of State Police in the Department of Law and Public Safety, or to
another designated recipient determined by the Attorney General, containing the
number of violations of subparagraph (b) of paragraph (12) of this subsection
committed within their respective jurisdictions, plus the race, ethnicity,
gender, and age of each person committing a violation, and the disposition of
each person's violation.� These violations and associated information, along
with a quarterly summary of violations investigated, and associated information
collected, by the Division of State Police for the same period shall be
summarized by county and municipality in an annual report, and both quarterly
summaries and annual reports shall be made available at no cost to the public
on the Division of State Police's Internet website;

����
(c)� Cannabis offered for
promotional or business purposes in excess of one ounce (28.35 grams) in
violation of subsection b. of section 46 of P.L.2021, c.16 (C.2C:35-10a), or as
a gift when in fact it is a central part of the sales transaction is guilty of
a disorderly persons offense.�

����
As used in this paragraph
�gifting� or �gift� means transferring cannabis for promotional or business
purposes occurring outside of a cannabis sales transaction in a Class 5 retail
license facility.

���� (13)� Any other controlled
dangerous substance classified in Schedule I, II, III or IV, or its analog, is
guilty of a crime of the third degree, except that, notwithstanding the
provisions of subsection b. of N.J.S.2C:43-3, a fine of up to $25,000 may be
imposed; or

���� (14)� Any Schedule V
substance, or its analog, is guilty of a crime of the fourth degree except
that, notwithstanding the provisions of subsection b. of N.J.S.2C:43-3, a fine
of up to $25,000 may be imposed.

���� c.���� Where the degree of the
offense for violation of this section depends on the quantity of the substance,
the quantity involved shall be determined by the trier of fact, other than with
respect to a first violation of subparagraph (b) of paragraph (12) of subsection
b. of this section which is subject to a written warning as set forth in that
subparagraph.� Where the indictment or accusation so provides, the quantity
involved in individual acts of manufacturing, distribution, dispensing or
possessing with intent to distribute may be aggregated in determining the grade
of the offense, whether distribution or dispensing is to the same person or
several persons, provided that each individual act of manufacturing,
distribution, dispensing or possession with intent to distribute was committed
within the applicable statute of limitations.

(cf: P.L.2021, c.19, s.1)

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

STATEMENT

���� This bill amends the �New
Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace
Modernization Act,� concerning personal use of cannabis items, to clarify what
constitutes unlawful gifting of marijuana or cannabis.�

���� Section 46 of P.L.2021, c.16
(C.2C:35-10a) establishes that certain acts, formerly unlawful, are not
unlawful and are not an offense for persons 21 years of age or older, provided
cannabis was first obtained directly from a licensed cannabis retailer or delivered
by a licensed cannabis delivery service.� The lawful acts include possessing,
displaying, purchasing, or transporting: cannabis paraphernalia; one ounce
(28.35 grams) or less of useable cannabis; the equivalent of one ounce (28.35
grams) or less of usable cannabis as a cannabis product in solid, liquid, or
concentrate form.�

���� Additionally, the lawful acts
include transferring without remuneration: one ounce (28.35 grams) or less of
usable cannabis; the equivalent of one ounce (28.35 grams) or less of usable
cannabis as a cannabis product in solid, liquid, or concentrate form, based
upon the equivalency calculation for different product forms set by the
commission; or five grams (0.176 ounce) or less of cannabis resin to a person
who is of legal age for purchasing cannabis items, provided that such transfer
is for non-promotional, non-business purposes.� Transferring amounts greater
than the amounts specified at any one time is still considered a violation of
the "Comprehensive Drug Reform Act of 1987," P.L.1987, c.106
(N.J.S.2C:35-1 et al.), and can subject the person to prosecution as if the
person distributed unlawful marijuana or hashish in violation of that act.�

���� The bill clarifies that
�gifting� or transferring cannabis for promotional or business purposes as a
gift when in fact the transfer is a central part of a cannabis sales
transaction is also a violation of the "Comprehensive Drug Reform Act of
1987," P.L.1987, c.106 (N.J.S.2C:35-1 et al.), and subjects the person to
prosecution as if the person distributed marijuana or hashish in violation of
that act.�

���� In addition, the bill amends
N.J.S.2C:35-5, concerning manufacture, distribution or dispensing a controlled
substance.� Presently, it is unlawful for any person knowingly or purposely to
manufacture, distribute or dispense, or to possess or have under his control
with intent to manufacture, distribute or dispense, a controlled dangerous
substance or controlled substance analog. Subparagraph (12) of subsection b.
concerns violations involving marijuana.� A violation of subsection b. with
respect to marijuana in a quantity of one ounce or less is, for a first
offense, subject to a written warning, which also indicates that any subsequent
violation is a crime punishable by a term of imprisonment, a fine, or both, and
for a second or subsequent offense, is a crime of the fourth degree.�

���� Subparagraph (12) is amended
to further provide that transferring cannabis for promotional or business
purposes as a gift when in fact the transfer is a central part of a cannabis
sales transaction is a violation of the "Comprehensive Drug Reform Act of
1987," P.L.1987, c.106 (N.J.S.2C:35-1 et al.), and subjects the person to
prosecution as a disorderly person.�

���� Under the bill, �gifting� or �gift�
means transferring cannabis for promotional or business purposes occurring
outside of a cannabis sales transaction in a Class 5 retail license facility.

���� It is the sponsor�s intent to
stress that while gifting is lawful between adults 21 and older under New Jersey�s
adult-use cannabis law, entities attempting to preempt the regulatory process
are in violation of the law.