Criminalizes certain sales of marijuana and vapor products.

S4287

SENATE, No. 4287

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 14, 2026

Sponsored by:

Senator� NICHOLAS P. SCUTARI

District 22 (Somerset and Union)

SYNOPSIS

���� Criminalizes certain sales of marijuana and vapor
products.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the sale of marijuana and vapor
products and amending and supplementing various parts of the statutory law.

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

���� 1.� (New section) a.� (1) Any
person, who owns, operates, controls, manages or maintains a business concern
that sells, offers for sale, or distributes for commercial purpose marijuana to
any person shall be guilty of a crime of the third degree and, notwithstanding
the provisions of N.J.S.2C:43-3, shall be subject to a fine of not less than
$10,000 nor more than $50,000 and in the case of a partnership, joint venture,
association, corporation, or any other legal entity, to a fine of not less than
$100,000 nor more than $250,000 and any other appropriate disposition
authorized by subsection b. of N.J.S.2C:43-2.

���� (2) Any person, except for a
licensed vapor business or a licensed limited vapor product retailer authorized
pursuant to P.L.2019, c.147 (C.54:40B-3.3 et al.) or an employee or agent of
any such licensee acting within the scope of that licensee�s authorization, who
owns, operates, controls, manages or maintains a business concern that at
retail sells, offers for sale, or distributes for commercial purpose, to any
other person any vapor product shall be guilty of a crime of the third degree,
and notwithstanding the provisions of N.J.S.2C:43-3 to the contrary, shall be
subject to a fine of not less than $10,000 nor more than $50,000; in the case
of a partnership, joint venture, association, corporation, or any other legal
entity, to a fine of not less than $100,000 nor more than $250,000; and any
other appropriate disposition authorized by subsection b. of N.J.S.2C:43-2.

���� b.��� Any marijuana or vapor
product possessed by or under the control of a person in violation of
subsection a. of this section or which is located at a business concern that
violates subsection a. of this section shall be declared to be prima facie
contraband goods and shall be subject to forfeiture pursuant to the provisions
of N.J.S.2C:64-1 et seq.

���� c.���� In addition to the
criminal penalty authorized under subsection a. of this section, a business
concern found to have committed more than two violations of subsection a. of
this section within a two-year period shall be deemed a public nuisance.�
Notwithstanding any other provision of law to the contrary, a municipality
shall have the power to impose restrictions on the operation, including
closure, of any business concern determined to constitute a public nuisance
pursuant to this subsection, which power shall be in addition to the authority
provided under N.J.S.2C:33-12 and N.J.S.2C:33-12.1.

���� d.��� As used in this section:

���� �Business concern� means any
corporation, association, firm, partnership, sole proprietorship, trust, or
other form of commercial organization or enterprise.

���� �Marijuana� means the same as
that term is defined in N.J.S.2C:35-2.

���� �Vapor product� means any
device that may be used to deliver any aerosolized or vaporized substance to
the person inhaling from the device, including, but not limited to, an
e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. �Vapor product� includes
any component, part, or accessory of the device, and also includes any
substance that may be aerosolized or vaporized by such device, regardless of
whether the substance contains nicotine. �Vapor product� does not include any
drug, device, or combination product approved by the federal Food and Drug
Administration pursuant to the �Federal Food, Drug, and Cosmetic Act,� 21
U.S.C. s.301 et seq.

���� 2. (New section) a. Any person
who knowingly sells, offers for sale, distributes for commercial purpose at no
cost or minimal cost or with coupons or rebate offers, gives or furnishes, to
another person any vapor product that has a characterizing flavor or which is
represented in any manner, by word or deed, including but not limited to
labeling, as having a characterizing flavor, shall be guilty of a criminal
offense.

���� b. (1) A violation of
subsection a. of this section which involves a quantity of less than five
packages or units of vapor products shall be a petty disorderly persons
offense.��

���� (2)�� A violation of
subsection a. of this section which involves a quantity of five or more but
less than 10 packages or units of vapor products shall be a disorderly persons
offense.��

���� (3)�� A violation of
subsection a. of this section which involves a quantity of 10 or more but less
than 100 packages or units of vapor products shall be a crime of the fourth
degree, and notwithstanding the provisions of N.J.S.2C:43-3, shall be subject
to a fine of not less than $1,000; in the case of a partnership, joint venture,
association, corporation, or any other legal entity, to a fine of not less than
$10,000; and any other appropriate disposition authorized by subsection b. of
N.J.S.2C:43-2.

���� (4)�� A violation of
subsection a. of this section which involves a quantity of 100 or more but less
than 500 packages or units of vapor products shall be a crime of the third
degree, and notwithstanding the provisions of N.J.S.2C:43-3 shall be subject to
a fine of not less than $10,000; in the case of a partnership, joint venture,
association, corporation, or any other legal entity, to a fine of not less than
$100,000; and any other appropriate disposition authorized by subsection b. of
N.J.S.2C:43-2.

���� (5)�� A violation of
subsection a. of this section which involves a quantity of 500 or more packages
or units of vapor products shall be a crime of the second degree, and
notwithstanding the provisions of N.J.S.2C:43-3 shall be subject to a fine of
not less than $50,000; in the case of a partnership, joint venture,
association, corporation, or any other legal entity, to a fine of not less than
$250,000; and any other appropriate disposition authorized by subsection b. of
N.J.S.2C:43-2.

���� c.���� Any vapor product
possessed by a person in violation of subsection a. of this section shall be
declared to be prima facie contraband goods and shall be subject to forfeiture
pursuant to the provisions of N.J.S.2C:64-1 et seq.

���� d.��� In addition to the
criminal penalty authorized under subsection a. of this section, a business
concern found to have committed more than two violations of subsection a. of
this section within a two-year period shall be deemed a public nuisance.�
Notwithstanding any other provision of law to the contrary, a municipality
shall have the power to impose restrictions on the operation, including
closure, of any business determined to constitute a public nuisance pursuant to
this subsection, which power shall be in addition to the authority provided
under N.J.S.2C:33-12 and N.J.S.2C:33-12.1.�����

���� e.� As used in this act:

���� �Business concern� means any
corporation, association, firm, partnership, sole proprietorship, trust or
other form of commercial organization or enterprise.

���� �Characterizing flavor� means
a distinguishable flavor, taste, or aroma other than tobacco, including, but
not limited to, any fruit, chocolate, vanilla, honey, candy, cocoa, dessert,
alcoholic beverage, herb, mint, menthol, wintergreen, or spice flavoring, that
is imparted, prior to or during consumption, by a vapor product, including any
smoke or vapor emanating from that product. �A vapor product shall be deemed to
have a characterizing flavor if the product is advertised or marketed as having
or producing any such distinguishable flavor, taste, or aroma.

���� �Label� means a display of
written, printed, or graphic matter upon the immediate container, wrapper, or
packaging of any vapor product.

���� �Labeling� means all labels
and other written, printed or graphic matter (1) upon a vapor product or any of
its containers, wrappers, or packaging, or (2) accompanying such vapor product.

���� �Vapor product� means any
device that may be used to deliver any aerosolized or vaporized substance to
the person inhaling from the device, including, but not limited to, an
e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. ��Vapor product� includes
any component, part, or accessory of the device, and also includes any
substance that may be aerosolized or vaporized by such device, regardless of
whether the substance contains nicotine. �Vapor product� does not include any
drug, device, or combination product approved by the federal Food and Drug
Administration pursuant to the �Federal Food, Drug, and Cosmetic Act,� 21
U.S.C. s.301 et seq.

���� 3. N.J.S.2C:41-1 is amended to
read as follows:

���� 2C:41-1. For purposes of this
section and N.J.S.2C:41-2 through N.J.S.2C:41-6:

���� a.���� "Racketeering
activity" means (1) any of the following crimes which are crimes under the
laws of New Jersey or are equivalent crimes under the laws of any other
jurisdiction:

���� (a)�� murder

���� (b)�� kidnapping

���� (c)�� gambling

���� (d)�� promoting prostitution

���� (e)�� obscenity

���� (f)�� robbery

���� (g)�� bribery

���� (h)�� extortion

���� (i)��� criminal usury

���� (j)��� violations of Title 33
of the Revised Statutes

���� (k)�� violations of Title 54A
of the New Jersey Statutes and Title 54 of the Revised Statutes

���� (l)��� arson

���� (m)� burglary

���� (n)�� theft and all crimes
defined in chapter 20 of Title 2C of the New Jersey Statutes

���� (o)�� forgery and fraudulent
practices and all crimes defined in chapter 21 of Title 2C of the New Jersey
Statutes

���� (p)�� fraud in the offering,
sale or purchase of securities

���� (q)�� alteration of motor
vehicle identification numbers

���� (r)��� unlawful manufacture,
purchase, use or transfer of firearms

���� (s)�� unlawful possession or
use of destructive devices or explosives

���� (t)��� violation of sections
112 through 116 inclusive of the "Casino Control Act," P.L.1977,
c.110 (C.5:12-112 through 5:12-116)

���� (u)�� violation of
N.J.S.2C:35-4, N.J.S.2C:35-5 or N.J.S.2C:35-6 and all crimes involving illegal
distribution of a controlled dangerous substance or controlled substance
analog, except possession of less than one ounce of marijuana

���� (v)�� violation of subsection
b. of N.J.S.2C:24-4 except for subparagraph (b) of paragraph (5) of subsection
b.

���� (w)� violation of section 1 of
P.L.1995, c.405 (C.2C:39-16), leader of firearms trafficking network

���� (x)�� violation of section 1
of P.L.1983, c.229 (C.2C:39-14), weapons training for illegal activities

���� (y)�� violation of section 2
of P.L.2002, c.26 (C.2C:38-2), terrorism

���� (z)�� violation of section 1
of P.L.2005, c.77 (C.2C:13-8), human trafficking

���� (aa) violation of
N.J.S.2C:12-1 requiring purposeful or knowing conduct

���� (bb) violation of
N.J.S.2C:12-3, terroristic threats

���� (cc) violation of section 1 of
P.L.2015, c.85 (C.2C:33-31), dog fighting

����
(dd) violation of section 1
of P.L.��� , c.��� (C.�������� ) (pending before the Legislature as this bill),
unlicensed marijuana or vapor product retail sales business

����
(ee) second degree
violation of section 2 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill), unlawful sale of flavored vapor products
.

���� (2)�� any conduct defined as
"racketeering activity" under Title 18, U.S.C.s.1961(1)(A), (B) and
(D).

���� b.��� "Person"
includes any individual or entity or enterprise as defined herein holding or
capable of holding a legal or beneficial interest in property.

���� c.���� "Enterprise"
includes any individual, sole proprietorship, partnership, corporation,
business or charitable trust, association, or other legal entity, any union or
group of individuals associated in fact although not a legal entity, and it
includes illicit as well as licit enterprises and governmental as well as other
entities.

���� d.��� "Pattern of
racketeering activity" requires:

���� (1)�� Engaging in at least two
incidents of racketeering conduct one of which shall have occurred after the
effective date of this act and the last of which shall have occurred within 10
years (excluding any period of imprisonment) after a prior incident of racketeering
activity; and

���� (2)�� A showing that the
incidents of racketeering activity embrace criminal conduct that has either the
same or similar purposes, results, participants or victims or methods of
commission or are otherwise interrelated by distinguishing characteristics and
are not isolated incidents.

���� e.���� "Unlawful
debt" means a debt:

���� (1)�� Which was incurred or
contracted in gambling activity which was in violation of the law of the United
States, a state or political subdivision thereof; or

���� (2)�� Which is unenforceable
under state or federal law in whole or in part as to principal or interest
because of the laws relating to usury.

���� f.���� "Documentary
material" includes any book, paper, document, writing, drawing, graph,
chart, photograph, phonorecord, magnetic or recording or video tape, computer
printout, other data compilation from which information can be obtained or from
which information can be translated into useable form or other tangible item.

���� g.��� "Attorney
General" includes the Attorney General of New Jersey, his assistants and
deputies.� The term shall also include a county prosecutor or his designated
assistant prosecutor if a county prosecutor is expressly authorized in writing
by the Attorney General to carry out the powers conferred on the Attorney
General by this chapter.

���� h.��� "Trade or
commerce" shall include all economic activity involving or relating to any
commodity or service.

(cf: P.L.2015, c.85, s.3.

���� 4. N.J.S.2C:64-1 is amended to
read as follows:

���� 2C:64-1.���� Property Subject
to Forfeiture.

���� a.���� Any interest in the
following shall be subject to forfeiture and no property right shall exist in
them:

���� (1)�� Controlled dangerous
substances; firearms which are unlawfully possessed, carried, acquired or used;
illegally possessed gambling devices; untaxed or otherwise contraband
cigarettes or tobacco products; unlawfully possessed container e-liquid
or
vapor product
; untaxed special fuel; unlawful sound recordings and
audiovisual works; and items bearing a counterfeit mark.� These shall be
designated prima facie contraband.

���� (2)�� All property which has
been, or is intended to be, utilized in furtherance of an unlawful activity,
including, but not limited to, conveyances intended to facilitate the
perpetration of illegal acts, or buildings or premises maintained for the
purpose of committing offenses against the State.

���� (3)�� Property which has
become or is intended to become an integral part of illegal activity,
including, but not limited to, money which is earmarked for use as financing
for an illegal gambling enterprise.

���� (4)�� Proceeds of illegal
activities, including, but not limited to, property or money obtained as a
result of the sale of prima facie contraband as defined by subsection a. (1),
proceeds of illegal gambling, prostitution, bribery and extortion.

���� (5)� An all-terrain vehicle or
dirt bike which has been operated on a public street, highway, or right-of-way
in violation of section 17 of P.L.1973, c.307 (C.39:3C-17) in a municipality
that has passed an ordinance declaring that such all-terrain vehicles or dirt
bikes so operated pose an immediate threat to the public health, safety, or
welfare and designating such vehicles as contraband as authorized by subsection
e. of section 1 of P.L.2019, c.505 (C.39:3C-35).

���� b.��� Any article subject to
forfeiture under this chapter may be seized by the State or any law enforcement
officer as evidence pending a criminal prosecution pursuant to N.J.S.2C:64-4
or, when no criminal proceeding is instituted, upon process issued by any court
of competent jurisdiction over the property, except that seizure without such
process may be made when not inconsistent with the Constitution of this State
or the United States, and when

���� (1)�� The article is prima
facie contraband; or

���� (2)�� The property subject to
seizure poses an immediate threat to the public health, safety or welfare.

���� c.���� For the purposes of
this section:

���� "Items bearing a
counterfeit mark" means items bearing a counterfeit mark as defined in
section 1 of P.L.1997, c.57 (C.2C:21-32).

���� "Unlawful sound
recordings and audiovisual works" means sound recordings and audiovisual
works as those terms are defined in section 1 of P.L.1991, c.125 (C.2C:21-21)
which were produced in violation of section 1 of P.L.1991, c.125 (C.2C:21-21).

���� "Unlawfully possessed
container e-liquid" means container e-liquid as defined in section 2 of
P.L.1990, c.39 (C.54:40B-2) that is possessed for retail sale by a person that
is not licensed as a vapor business pursuant to section 4 of P.L.2019, c.147
(C.54:40B-3.3).

���� "Untaxed special
fuel" means diesel fuel, No. 2 fuel oil and kerosene on which the motor
fuel tax imposed pursuant to R.S.54:39-1 et seq. is not paid that is delivered,
possessed, sold or transferred in this State in a manner not authorized pursuant
to R.S.54:39-1 et seq. or P.L.1938, c.163 (C.56:6-1 et seq.).

����
�Vapor product� means any device
that may be used to deliver any

aerosolized or vaporized substance to
the person inhaling from the

device, including, but not limited to, an
e-cigarette, e-cigar, e-pipe,

vape pen, or e-hookah. �Vapor product�
includes any component,

part, or accessory of the device, and also
includes any substance that

may be aerosolized or vaporized by such
device, regardless of

whether the substance contains nicotine. �Vapor
product� does not

include any drug, device, or combination product
approved by the

federal Food and Drug Administration pursuant to the
�Federal Food,

Drug, and Cosmetic Act,� 21 U.S.C. s.301 et seq.
�

(cf: P.L.2021, c.353, s.2)

���� 5. Section 2 of P.L.1990, c.39
(C.54:40B-2) is amended to read as follows:

���� 2.��� As used in sections 2
through 14 and section 20 of P.L.1990, c.39 (C.54:40B-1 et seq.):

���� "Consumer" means a
person except a distributor, manufacturer, or wholesaler who acquires a tobacco
product for consumption, storage, or use in this State;

���� "Container e-liquid"
means a container of liquid nicotine or other liquid where the liquid is
marketed, sold, or intended for use in an electronic smoking device, but does
not include a prefilled cartridge or other container where the cartridge or
container is marketed, sold, or intended for use as, or as a part of, an
electronic smoking device;

���� "Director" means the
Director of the Division of Taxation in the Department of the Treasury;

���� "Distributor" means:

���� a person engaged in the
business of selling tobacco products in this State who brings, or causes to be
brought into this State from without the State a tobacco product for sale
within this State,

���� a person who makes or
manufactures tobacco products in this State for sale in the State,

���� a person engaged in the
business of selling tobacco products without this State who ships or transports
tobacco products to a person in this State to be sold to a retail dealer, or

���� a person who receives tobacco
products without receiving proof that the tax has been or will be paid by
another distributor;

���� "Dry snuff" means
any finely cut, ground, or powdered smokeless tobacco that is intended to be
sniffed through the nasal cavity, but does not include moist snuff;

���� "Electronic smoking
device" means a nonlighted, noncombustible device that may be used to
simulate smoking and that employs a mechanical heating element, battery, or
circuit, regardless of shape or size, to produce aerosolized or vaporized nicotine
or other substance for inhalation into the body of a person, including but not
limited to a device that is manufactured, distributed, marketed, or sold as an
e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or any other similar product
with any other product name or descriptor;

����
�Limited vapor product
retailer� means a retail business engaged in this State in the business of
selling any vapor product at retail but does not include a retail business that
sells container e-liquid;�����

���� "Liquid nicotine"
means any solution containing nicotine that is designed or sold for use with an
electronic smoking device;

���� "Manufacturer" means
a person, wherever resident or located, who manufactures or produces, or causes
to be manufactured or produced, a tobacco product and sells, uses, stores, or
distributes the product regardless of whether it is intended for sale, use, or
distribution within or without this State;

���� "Moist snuff" means
any finely cut, ground, or powdered smokeless tobacco that is intended to be
placed or dipped in the oral cavity, but does not include dry snuff;

���� "Person" means an
individual, firm, corporation, copartnership, joint venture, association,
receiver, trustee, guardian, executor, administrator, or any other person
acting in a fiduciary capacity, or an estate, trust, or group or combination acting
as a unit, the State Government and any political subdivision thereof, and the
plural as well as the singular, unless the intention to give a more limited
meaning is disclosed by the context;

���� "Place of business"
means a place where a tobacco product is sold or where a tobacco product is
brought or kept for the purpose of sale or consumption, including so far as may
be applicable a vessel, vehicle, airplane, train or vending machine;

���� "Retail dealer"
means a person who is engaged in this State in the business of selling any
tobacco product at retail.� A person placing a tobacco product vending machine
at, or on any premises shall be deemed to be a retail dealer for each vending
machine;

���� "Sale" means any
sale, transfer, exchange, barter, or gift, in any manner or by any means
whatsoever;

���� "Tobacco product"
means any product containing, made, or derived from any tobacco, nicotine, or
other chemicals or substances for consumption by a person, including, but not
limited to, cigars, little cigars, cigarillos, chewing tobacco, pipe tobacco,
smoking tobacco and their substitutes, dry and moist snuff, and liquid
nicotine, but does not include cigarette as defined in section 102 of the
"Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.);

���� "Treasurer" means
the State Treasurer;

���� "Use" means the
exercise of any right or power incidental to the ownership of a tobacco
product, including a sale at retail;

���� "Vapor business"
means a retail business where more than 50 percent of its retail sales are
derived from electronic smoking devices, related accessories, and liquid
nicotine, but does not include a retail business that does not sell container e-liquid;

����
�Vapor product� means any
electronic smoking device or any other device that may be used to deliver any
aerosolized or vaporized substance to the person inhaling from the device,
including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or
e-hookah. �Vapor product� includes any component, part, or accessory of the
device, and also includes any substance that may be aerosolized or vaporized by
such device, regardless of whether the substance contains nicotine.� �Vapor
product� does not include container e-liquid or any drug, device, or
combination product approved by the federal Food and Drug Administration
pursuant to the �Federal Food, Drug, and Cosmetic Act,� 21 U.S.C. s.301 et seq.

���� "Wholesale price"
means the actual price for which a manufacturer sells tobacco products to a
distributor; and

���� "Wholesaler" means a
person, wherever resident or located, other than a distributor as defined
herein, who:

���� a.���� purchases tobacco
products from any other person who purchases from the manufacturer and who
acquires tobacco products solely for the purpose of bona fide resale to retail
dealers or to other persons for the purposes of resale only; or

���� b.��� services retail outlets
by the maintenance of an established place of business for the purchase of
tobacco products including, but not limited to, the maintenance of warehousing
facilities for the storage and distribution of tobacco products.

(cf: P.L.2019, c.147, s.2)

���� 6. Section 4 of P.L.2019,
c.147 (C.54:40B-3.3) is amended to read as follows:�

���� 4. a.
(1)
After the
effective date of P.L.2019, c.147 (C.54:40B-3.3 et al.), container e-liquid
shall not be sold at retail in the State except by a licensed vapor business.

����
(2) After the effective
date of P.L.��� , c.��� (C. �������)(pending before the Legislature as this
bill), vapor products shall not be sold at retail in the State except by a
licensed vapor business or a licensed limited vapor product retailer. �A
licensed vapor product business shall not be required to be licensed as a
limited vapor product retailer in order to sell vapor products at retail in the
State.

���� b.��� Vapor business licenses
and
limited vapor product retailer

licenses
shall be issued by the
director, who shall make rules and regulations respecting application and
issuance. Each such license shall lapse on March 31 of the period for which it
is issued, and each such license shall be continued annually upon the conditions
that the licensee shall have paid the required fee and complied with the
provisions of P.L.2019, c.147 (C.54:40B-3.3 et al.) and the rules and
regulations of the director made pursuant thereto.

���� If a vapor business sells or
intends to sell container e-liquid
, vapor

products, or both, or if a
limited vapor product retailer sells or intends to
sell vapor products,

at two or more places of business, whether established or temporary, or whether
in the same building or not, a separate license shall be required for each
place of business. Each license, or certificate thereof, and such other
evidence of license shall be exhibited in the place of business for which it is
issued and in such manner as may be prescribed by the director.

���� No license shall be issued to
any person except upon the payment of a $50 fee. No license shall be assignable
or transferable, but in the case of death, bankruptcy, receivership, or
incompetency of the licensee, or if, for any other reason whatsoever, the
business of the licensee shall devolve upon another by operation of law, the
director may, in the director's discretion, extend said license for a limited
time to the executor, administrator, trustee, receiver, or person upon whom the
same has devolved.

���� The director shall require an
applicant for a vapor business license
[
,
]

or a
limited vapor product retailer license
to include on the application the
address of the place of business where the container e-liquid
or vapor

products,
or both,
�will be sold. If the place of business is moved to a different
address than that provided on the license application, the licensee shall
notify the director within 30 days of the change of address.

���� c.���� The director may, upon
notice and after hearing, suspend or revoke the license or all licenses under
this section issued to any person who violates any of the provisions of
P.L.2019, c.147 (C.54:40B-3.3 et al.), or who, after being issued a license
becomes disqualified for licensure pursuant to P.L.2019, c.147 (C.54:40B-3.3 et
al.) or of any rule or regulation of the director made pursuant thereto or if
the licensee has ceased to act in the capacity for which the license was issued
or for other good cause. No person whose license has been suspended or revoked
shall sell container e-liquid
or vapor products
or permit container
e-liquid
or vapor products
to be sold during the period of such
suspension or revocation on the premises occupied by that person or upon other
premises controlled by that person or others, or in any other manner or form
whatever. No disciplinary proceeding or action shall be barred or abated by the
expiration, transfer, surrender, continuance, renewal, or extension of a
license issued under the provisions of P.L.2019, c.147 (C.54:40B-3.3 et al.).

(cf: P.L.2019, c.147, s.4)

���� 7. Section 9 of P.L.2019,
c.147 (C.54:40B-3.8) is amended to read as follows:�

���� 9. a. All container e-liquid
or
vapor products
possessed for retail sale by a person that is not licensed
as a vapor business
or a limited vapor
product retailer
pursuant
to section 4 of P.L.2019, c.147 (C.54:40B-3.3) are declared to be prima facie
contraband goods and may be seized by the director, the director's agents or
employees, or by any peace officer of this State, when so ordered by the
director, without a warrant.

���� b.��� The director may direct
the return of any unlawfully possessed container e-liquid
or vapor product

upon reasonable belief that the owner has not willfully or intentionally evaded
any licensing requirement imposed by P.L.2019, c.147 (C.54:40B-3.3 et al.).

���� c.���� The director may
authorize the use for law enforcement purposes the use of any container
e-liquid
or vapor product
forfeited in accordance with this section.

���� d.��� The seizure of any
unlawfully possessed container e-liquid
or vapor product
shall not
relieve any person from a fine, imprisonment or other penalty for violation of
any of the provisions of P.L.2019, c.147 (C.54:40B-3.3 et al.). The director,
the director's agents, employees, and any peace officer of this State, when
directed so to do, shall not in any way be responsible in any court for the
seizure or the confiscation of any unlawfully possessed container e-liquid
or
vapor product
.

(cf: P.L.2019, c.147, s.9)

���� 8. Section 11 of P.L.2019,
c.147 (C.54:40B-3.9) is amended to read as follows:�

���� 11.� In addition to the
license required by section 4 of P.L.2019, c.147 (C.54:40B-3.3), a municipality
may adopt an ordinance concerning the licensure and regulation of a vapor
business
or limited

vapor product retailer
. �Nothing in P.L.2019,
c.147 (C.54:40B-3.3 et al.) shall be construed to preempt the provisions of any
existing or new municipal ordinance concerning the licensure and regulation of
a vapor business
or limited vapor product retailer
.

(cf: P.L.2019, c.147, s.11)

���� 9. This act shall take effect
immediately, except that paragraph (2) of subsection a. of section 1 and
sections 5 through 7 shall be inoperative until 180 days thereafter, except the
Director of the Division of Taxation may take anticipatory administrative
action necessary to implement this act.

STATEMENT

���� This bill criminalizes certain
sales of marijuana and vapor products.

���� Under the bill, any person,
who owns, operates, controls, manages or maintains a business concern that
sells, offers for sale, or distributes for commercial purpose marijuana to any
person without a license is to be guilty of a crime of the third degree and subject
to a fine of not less than $10,000 nor more than $50,000 and in the case of a partnership,
joint venture, association, corporation, or any other legal entity, to a fine
of not less than $100,000 nor more than $250,000. ��The bill defines �business
concern� to mean any corporation, association, firm, partnership, sole
proprietorship, trust, or other form of commercial organization or enterprise.

���� The bill provides that any
person, except for a licensed vapor business or a licensed limited vapor
product retailer authorized pursuant or an employee or agent of any such
licensee acting within the scope of that licensee�s authorization, who owns,
operates, controls, manages or maintains a business concern that at retail
sells, offers for sale, or distributes for commercial purpose, to any other
person any vapor product is to be guilty of a crime of the third degree, and
subject to a fine of not less than $10,000 nor more than $50,000; and in the
case of a partnership, joint venture, association, corporation, or any other
legal entity, to a fine of not less than $100,000 nor more than $250,000.

���� The bill provides that any
person who knowingly sells, offers for sale, distributes for commercial purpose
at no cost or minimal cost or with coupons or rebate offers, gives or
furnishes, to another person any vapor product that has a characterizing flavor,
or which is represented in any manner, by word or deed, including but not
limited to labeling, as having a characterizing flavor is to be guilty of a
criminal offense according to the schedule provided for in the bill, which
ranges from a petty disorderly persons offense for a violation involving a
quantity of less than five packages or units of vapor products, to a crime of
the second degree for a violation involving a quantity of 500 or more packages
or units of vapor products.

���� The bill defines �characterizing
flavor� to mean a distinguishable flavor, taste, or aroma other than tobacco,
including, but not limited to, any fruit, chocolate, vanilla, honey, candy,
cocoa, dessert, alcoholic beverage, herb, mint, menthol, wintergreen, or spice
flavoring, that is imparted, prior to or during consumption, by a vapor
product, including any smoke or vapor emanating from that product.� A vapor
product is to be deemed to have a characterizing flavor if the product is
advertised or marketed as having or producing any such distinguishable flavor,
taste, or aroma.

���� Products sold in violation of
the bill�s provisions are to be declared to be prima facie contraband goods and
may be seized without a warrant. �In addition to the criminal penalties
authorized under the bill, a business concern found to have committed more than
two violations of sections 1 or 2 of the bill within a two-year period is to be
deemed a public nuisance, which is to provide the municipality in which the
business concern is located the power to impose restrictions on the operation,
including closure, of the business.