Legalizes possession and personal use of small amounts of marijuana for persons age 21 and over; creates Division of Marijuana Enforcement and licensing structure.

An Act concerning marijuana, 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) Findings.

The Legislature finds and declares that:

a. It is the intent of the people of New Jersey to adopt a new approach to our marijuana policies by taxing, controlling and legalizing marijuana like alcohol for adults;

b. It is the intent of the people of New Jersey that the provisions of this act will prevent the sale or distribution of marijuana to persons under 21 years of age;

c. This act is designed to eliminate the problems caused by the unregulated manufacture, distribution, and use of marijuana within New Jersey;

d. This act will divert funds from marijuana sales from going to illegal enterprises, gangs, and cartels;

e. New Jersey law enforcement officers made over 24,000 arrests for marijuana possession in 2012, more than in the previous 20 years;

f. In 2012, a person was arrested for marijuana possession in New Jersey approximately every 22 minutes;

g. Black New Jerseyans are nearly three times more likely to be arrested for marijuana possession than white New Jerseyans, despite similar usage rates;

h. Marijuana possession arrests constituted three out of every five drug arrests in New Jersey in 2012;

i. New Jersey spends approximately $127 million per year on marijuana possession enforcement costs;

j. Taxing, controlling, and legalizing marijuana for adults like alcohol will free up precious resources to allow our criminal justice system to focus on serious crime and public safety issues;

k. Taxing, controlling, and legalizing marijuana for adults like alcohol will strike a blow at the illegal enterprises that profit from New Jersey’s current, unregulated marijuana illegal market;

l. New Jersey must strengthen our support for evidence-based, drug prevention programs that work to educate New Jerseyans, particularly young New Jerseyans, about the harms of drug abuse;

m. New Jersey must enhance State-supported programming that provides appropriate, evidence-based treatment for those who suffer from the illness of drug addiction;

n. Controlling and regulating the manufacture, distribution, and sale of marijuana will strengthen our ability to keep marijuana away from minors;

o. A controlled system of marijuana manufacturing, distribution, and sale must be designed in a way that enhances public health and minimizes harms to New Jersey communities and families;

p. The regulated marijuana system in New Jersey must be regulated so as to prevent persons younger than 21 years of age from accessing or purchasing marijuana;

q. A marijuana arrest in New Jersey can have a debilitating impact on a person’s future, including consequences for one’s job prospects, housing access, financial health, familial integrity, immigration status, and educational opportunities;

r. The tax revenue generated from a controlled marijuana manufacture, distribution, and retail sales system in New Jersey will generate hundreds of millions of dollars to bolster effective, evidence-based drug treatment and education, and to reinvest in New Jersey communities;

s. New Jersey cannot afford to sacrifice its public safety and civil rights by continuing its ineffective and wasteful marijuana enforcement policies.

2. (New section) Definitions.

As used in P.L , c. (C. ) (pending before the Legislature as this bill), unless the context otherwise requires:

"Consumer" means a person 21 years of age or older who purchases, acquires, owns, holds or uses marijuana or marijuana products for personal use by a person 21 years of age or older, but not for resale to others.

“Consumption” means the act of ingesting, inhaling, or otherwise introducing marijuana into the human body.

"Director" means the Director of the Division of Marijuana Enforcement.

“Division” means the Division of Marijuana Enforcement in the Department of Law and Public Safety.

“Financial consideration,” means value that is given or received either directly or indirectly through sales, barter, trade, fees, charges, dues, contributions or donations; but does not include: homegrown marijuana that is given or received when nothing is given or received in return; or homegrown marijuana products that are given or received when nothing is given or received in return.

“Hashish” means the resin extracted from any part of the plant Genus Cannabis L. and any compound, manufacture, salt, derivative, mixture, or preparation of such resin.

“Household” means a housing unit and any place in or around a housing unit at which the occupants of the housing unit are producing, processing or storing homegrown marijuana or homemade marijuana products.

“Housing unit” means a house, an apartment, a mobile home, a group of rooms, or a single room that is occupied as separate living quarters, in which the occupants live and eat separately from any other persons in the building and which have direct access from the outside of the building or through a common hall.

“Immature marijuana plant” means a marijuana plant that is not flowering.

“Industrial hemp" means the plant of the genus cannabis and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration that does not exceed three-tenths percent on a dry weight basis.

“Licensee” means a person who holds a license issued under this act that is designated as either a Class 1 Marijuana Cultivation Facility license, herein also referred to as a Marijuana Producer license, or a Class 1 Marijuana Product Manufacturing Facility license; herein also referred to as a Marijuana Processor license, a Class 2 Marijuana Wholesaler license; a Class 3 Marijuana Retailer license; or a Class 4 Marijuana Transportation license.

“Licensee representative” means an owner, director, officer, manager, employee, agent or other representative of a licensee, to the extent that the person acts in a representative capacity.

“Local governmental entity" means a municipality.

“Marijuana" means all parts of the plant Genus Cannabis L., whether growing or not; the seeds thereof, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds, except those containing resin extracted from the plant; but shall not include the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other product.

"Marijuana Cultivation Facility" means an entity licensed to cultivate marijuana and sell marijuana to marijuana producers, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. This entity shall hold a Class 1 Marijuana Cultivation Facility license.

“Marijuana establishment" means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a marijuana retailer.

“Marijuana extract” means a substance obtained by separating resins from marijuana by: (i) a chemical extraction process using a hydrocarbon-based solvent, such as butane, hexane or propane; (ii) a chemical extraction process using the hydrocarbon-based solvent carbon dioxide, if the process uses high heat or pressure; or (ii) Any other process identified by the division by rule.

“Marijuana flowers” means the flowers of the plant genus Cannabis within the plant family Cannabaceae.

“Marijuana items” means marijuana, marijuana products, and marijuana extracts.

“Marijuana leaves” means the leaves of the plant genus Cannabis within the plant family Cannabaceae.

“Marijuana paraphernalia" means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body.

“Marijuana processor” means a person who processes marijuana items in this State.

“Marijuana producer” means a person who produces marijuana in this State.

“Marijuana product manufacturing facility" means an entity licensed to purchase marijuana; manufacture, prepare, and package marijuana items; and sell items to other marijuana product manufacturing facilities and to marijuana retailers, but not to consumers. This entity shall hold a Class 1 Marijuana Product Manufacturing Facility license.

“Marijuana products" means a product containing marijuana or marijuana extracts and other ingredients intended for human consumption or use, including a product intended to be applied to the skin or hair, edible products, ointments, and tinctures. Marijuana products do not include: (i) marijuana by itself; or (ii) marijuana extract by itself.

“Marijuana retailer" means an entity licensed to purchase marijuana from marijuana cultivation facilities and marijuana items from marijuana product manufacturing facilities or marijuana wholesalers and to sell marijuana and marijuana products to consumers. This entity shall hold a Class 3 Marijuana Retailer license.

“Marijuana testing facility" means an independent, third-party entity meeting accreditation requirements established by the Division that is licensed to analyze and certify the safety and potency of marijuana items.

Marijuana transporter” means an entity licensed to transport marijuana through and within the State of New Jersey and to maintain a warehouse. This entity shall hold a Class 4 Marijuana Transportation license.

“Marijuana wholesaler” means any licensed person or entity who sells marijuana items or marijuana paraphernalia for the purpose of resale either to a licensed marijuana wholesaler or to a licensed marijuana retailer. This entity shall hold a Class 2 Marijuana Wholesaler license.

“Mature marijuana plant” means a marijuana plant that is not an immature marijuana plant.

“Medical marijuana center" means an entity permitted by a State agency to sell marijuana and marijuana products pursuant to the "New Jersey Compassionate Use Medical Marijuana Act” P.L.2009, c.307 (C.24:6I-1 et seq.).

“Noncommercial” means not dependent or conditioned upon the provision or receipt of financial consideration.

“Premises” or “licensed premises” includes the following areas of a location licensed under this act: all public and private enclosed areas at the location that are used in the business operated at the location, including offices, kitchens, rest rooms and storerooms; all areas outside a building that the division has specifically licensed for the production, processing, wholesale sale, or retail sale of marijuana items; and, for a location that the division has specifically licensed for the production of marijuana outside a building, the entire lot or parcel that the licensee owns, leases or has a right to occupy.

“Processes” means the processing, compounding, or conversion of marijuana into marijuana products or marijuana extracts; “Processes” does not include packaging or labeling.

“Produces” means the manufacture, planting, cultivation, growing or harvesting of marijuana. “Produces” does not include the drying of marijuana by a marijuana processor, if the marijuana processor is not otherwise producing marijuana; or the cultivation and growing of an immature marijuana plant by a marijuana processor, marijuana wholesaler or marijuana retailer if the marijuana processor, marijuana wholesaler, or marijuana retailer purchased or otherwise received the plant from a licensed marijuana producer.

“Public place” means any place to which the public has access that is not privately owned; or any place to which the public has access where alcohol consumption is not allowed, including but not limited to a public street, road, thoroughfare, sidewalk, bridge, alley, plaza, park, playground, swimming pool, or shopping area, public transportation facility, vehicle used for public transportation, parking lot, public library, or any other public building, structure, or area.

“Radio” means a system for transmitting sound without visual images, and includes broadcast, cable, on-demand, satellite, or internet programming. Radio includes any audio programming downloaded or streamed via the internet.

“Television” means a system for transmitting visual images and sound that are reproduced on screens, and includes broadcast, cable, on-demand, satellite, or internet programming. Television includes any video programming downloaded or streamed via the internet.

“THC” means Delta-9-tetrahydrocannabinol, the main psychoactive chemical contained in the cannabis plant.

“Unreasonably impracticable" means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson.

3. (New section) Personal use of marijuana.

Notwithstanding any other provision of law, the following acts are not unlawful and shall not be a criminal 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:

a. Possessing, using, purchasing, or transporting: marijuana paraphernalia; one ounce or less of marijuana; 16 ounces or less of marijuana infused product in solid form; 72 ounces or less in liquid form; 7 grams or less of marijuana concentrate; and up to 6 immature marijuana plants subject to the provisions of subsection b. of this this section.

b. Transfer of one ounce or less of marijuana; 16 ounces or less of marijuana infused product in solid form; 72 ounces or less in liquid form; 7 grams or less of marijuana concentrate; and up to 6 immature plants, without marijuana cultivation facility to a person who is of or over the legal age for purchasing marijuana items, provided that such transfer is for non-promotional, non-business purposes.

c. Consumption of marijuana items, provided that nothing in this section shall permit a person to smoke or otherwise consume marijuana items openly in a public place.

d. Assisting another person who is of or over the legal age for purchasing marijuana items in any of the acts described in subsections a. through c. of this section.

4. (New section) Lawful operation of marijuana establishments.

Notwithstanding any other provision of law, the following acts are not unlawful and shall not be a criminal 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:

a. manufacture, possession, or purchase of marijuana paraphernalia or the sale of marijuana paraphernalia to a person who is 21 years of age or older.

b. possessing, displaying, or transporting marijuana items; purchase of marijuana from a marijuana cultivation facility; purchase of marijuana items from a marijuana product manufacturing facility; or sale of marijuana items to consumers, if the person conducting the activities described in this subsection has obtained a current, valid license to operate as a marijuana retailer or is acting in his capacity as an owner, employee, or agent of a licensed marijuana retailer.

c. cultivating, harvesting, processing, packaging, transporting, displaying, or possessing marijuana; delivery or transfer of marijuana to a marijuana testing facility; selling marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a marijuana retailer; or the purchase of marijuana from a marijuana cultivation facility, if the person conducting the activities described in this subsection has obtained a current, valid license to operate a marijuana cultivation facility or is acting in his capacity as an owner, employee, or agent of a licensed marijuana cultivation facility.

d. packaging, processing, transporting, manufacturing, displaying, or possessing marijuana items; delivery or transfer of marijuana items to a marijuana testing facility; selling marijuana items to a marijuana retailer or a marijuana product manufacturing facility; the purchase of marijuana from a marijuana cultivation facility; or the purchase of marijuana items from a marijuana product manufacturing facility, if the person conducting the activities described in this subsection has obtained a current, valid license to operate a marijuana product manufacturing facility or is acting in his capacity as an owner, employee, or agent of a licensed marijuana product manufacturing facility.

e. possessing, cultivating, processing, repackaging, storing, transporting, displaying, transferring, or delivering marijuana items if the person has obtained a current, valid license to operate a marijuana testing facility or is acting in his capacity as an owner, employee, or agent of a licensed marijuana testing facility.

f. leasing or otherwise allowing the use of property owned, occupied, or controlled by any person, corporation or other entity for any of the activities conducted lawfully in accordance with subsections a. through e. of this section.

5. (New section) Prohibition of Persons Under the Legal Age Purchasing Marijuana.

a. No person, either directly or indirectly by an agent or employee, shall sell, offer for sale, distribute for commercial purpose at no cost or minimal cost, give, or furnish, to a person under 21 years of age, any marijuana items.

b. Any licensee or employee or agent of a licensee who allows a person under the age of 21 to procure marijuana items is guilty of a disorderly persons offense and subject to a civil penalty of not less than $250 for the first violation; $500 for the second violation; and $1,000 for the third and each subsequent violation; in addition, subject to a hearing, a licensee’s license may be revoked;

c. The establishment of all of the following facts by a licensee, employee, or agent, allowing any such person under the age of 21 to procure marijuana items shall constitute a defense to any prosecution pursuant to the provisions of subsections a. and b. of this section:

(1) That the purchaser of the marijuana or marijuana product falsely represented, by producing either a United States passport; driver’s license or non-driver identification card issued by the New Jersey Motor Vehicle Commission; a similar card issued pursuant to the laws of another state; United States military identification card; or a photographic identification card issued by a county clerk, that he was of legal age to make the purchase;

(2) That the appearance of the purchaser was such that an ordinary prudent person would believe him to be 21 years of age or older, of legal age to make the purchase; and

(3) That the sale or distribution was made in good faith, relying upon the production of the identification in paragraph (1) of this subsection, the minor’s appearance, and in the reasonable belief that the purchaser or recipient was actually of legal age to make the purchase.

d. It shall be unlawful for a person under the age of 21 to attempt to purchase, or acquire a marijuana item, even if such marijuana items may be legally purchased by persons at or above the legal age for purchasing marijuana items.

For purposes of this subsection, purchasing a marijuana item includes accepting a marijuana item, and acquiring a marijuana item incudes consuming a marijuana item.

e. It shall be unlawful for a person under the age of 21 to present or offer to a marijuana establishment or the marijuana establishment’s agent or employee any written or oral evidence of age that is false, fraudulent, or not actually the person’s own, for the purpose of:

(1) Purchasing, attempting to purchase, or otherwise procuring or attempting to procure marijuana or marijuana products; or

(2) Gaining access to a marijuana establishment.

f. Except as permitted by the division by rule or regulation, or as necessary on an emergency basis, a person under legal age for purchasing marijuana items may not enter or attempt to enter any portion of a licensed premises that is posted or otherwise identified as being prohibited to the use of persons under legal age for purchasing marijuana items, unless accompanied by and supervised by a parent or legal guardian.

g. Any person who shall violate any of the provisions of subsections d., e., or f. of this section shall be deemed and adjudged to be a disorderly person, and upon conviction thereof, shall be punished by a fine of not less than $500.

h. The prohibitions of this section do not apply to a person under the legal age for purchasing marijuana items who is acting under the direction of the division or under the direction of State or local law enforcement agencies for the purpose of investigating possible violations of the laws prohibiting sale of marijuana items to persons who are under the legal age for purchasing marijuana items.

i. The prohibitions of this section do not apply to a person under the legal age for purchasing marijuana items who is acting under the direction of a licensee for the purpose of investigating possible violations by employees of the licensee of laws prohibiting sales of marijuana items to persons who are under the legal age for purchasing marijuana items.

j. A person under the legal age for purchasing marijuana items is not in violation of this section, and is immune from prosecution under this section if:

(1) The person contacted emergency medical services or a law enforcement agency in order to obtain medical assistance for another person who was in need of medical assistance because that person consumed a marijuana item and the evidence of the violation of this section was obtained as a result of the person’s having contacted emergency medical services or a law enforcement agency; or

(2) The person was in need of medical assistance because the person consumed a marijuana item and the evidence of the violation of this section was obtained as a result of the person’s having sought or obtained the medical assistance.

(3) Paragraph (1) of this subsection does not exclude the use of evidence obtained as a result of a person’s having sought medical assistance in proceedings for crimes or offenses other than a violation of this section.

6. Section 3 of P.L.1948, c.439 (C.52:17B-3) is amended to read as follows:

There is hereby established in the Department of Law and Public Safety a Division of Law, a Division of State Police, a Division of Alcoholic Beverage Control, [a Division of Motor Vehicles,] a Division of Weights and Measures , a Division of Marijuana Enforcement and a Division of Professional Boards.

The Attorney General shall have the authority to organize and maintain in his offices an Administrative Division and to assign to employment therein such secretarial, clerical and other assistants in the department as his office and the internal operations of the department shall require.

(cf: P.L.1948, c.439, s.3)

7. (New section) Powers and duties of the division.

a. The Division of Marijuana Enforcement shall have all powers necessary or proper to enable it to carry out the division’s duties, functions, and powers under this act. The jurisdiction, supervision, duties, functions, and powers of the division extend to any person who buys, sells, produces, processes, transports, or delivers any marijuana items within this State. The division may sue and be sued.

b. The duties, functions and powers of the division include the following:

(1) To regulate the purchase, sale, production, processing, transportation and delivery of marijuana items in accordance with the provisions of this act.

(2) To grant, refuse, suspend or cancel licenses for the sale, processing, or production of marijuana items, or other licenses in regard to marijuana items, and to permit, in the division’s discretion, the transfer of a license between persons.

(3) To investigate and aid in the prosecution of every violation of the statutory laws of this State relating to marijuana items and to cooperate in the prosecution of offenders before any State court of competent jurisdiction.

(4) To adopt, amend, or repeal regulations as necessary to carry out the intent and provisions of this act.

(5) To exercise all powers incidental, convenient, or necessary to enable the division to administer or carry out the provisions of this act, or any other law of this State that charges the division with a duty, function, or power related to marijuana. Powers described in this paragraph include, but are not limited to:

(a) Issuing subpoenas;

(b) Compelling attendance of witnesses;

(c) Administering oaths;

(d) Certifying official acts;

(e) Taking depositions as provided by law;

(f) Compelling the production of books, payrolls, accounts, papers, records, documents and testimony; and

(g) Establishing fees in addition to the application, licensing, and renewal fees, provided that any fee established by the division is reasonably calculated not to exceed the cost of the activity for which the fee is charged.

(6) To adopt rules regulating and prohibiting marijuana producers, marijuana processors, marijuana wholesalers, and marijuana retailers from advertising marijuana items in a manner that is appealing to minors; that promotes excessive use; that promotes illegal activity; or that otherwise presents a significant risk to public health and safety.

(7) To regulate the use of marijuana items for scientific, pharmaceutical, manufacturing, mechanical, industrial, and other purposes.

c. The powers of the division further include the power to purchase, seize, possess, and dispose of marijuana items.

(1) The division may purchase, possess, seize, or dispose of marijuana items as is necessary to ensure compliance with and enforcement of the provisions of this act, and any rule adopted pursuant thereto.

(2) Any State officer, board, commission, corporation, institution, department, or other State body, and any local officer, board, commission, institution, department, or other local government body, that is permitted by the statutory laws of this State to perform a duty, function, or power with respect to a marijuana item, may purchase, possess, seize, or dispose of the marijuana item as the State officer, board, commission, corporation, institution, department or other State body, or the local officer, board, commission, institution, department or other local government body, considers necessary to ensure compliance with and enforce the applicable statutory law or any rule adopted under the applicable statutory law.

d. The division shall be under the immediate supervision of a director. The director of the division shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve during the term of office of the Governor appointing him and until the director's successor is appointed and has qualified.

8. (New section) Regulation of marijuana.

a. Not later than one year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the division shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary for implementation of P.L. c. (C. ) (pending before the Legislature as this bill), which shall be consistent with the intent of this act. Such regulations shall not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. The division may create an expert task force to make recommendations to the Division about the content of such regulations. Such regulations shall include:

(1) Procedures for the application, issuance, denial, renewal, suspension, and revocation of a license to operate a marijuana establishment. Such procedures shall include a period of no longer than 90 days by which the division must provide the applicant with notice of the division’s approval or denial of any fully completed application for licensure or renewal and a period not to exceed 30 days in which a license shall be issued following approval of an application.

(2) License application and renewal fees shall be established by the division. The division shall establish licensing goals for New Jersey residents. The division shall make good faith efforts to meet these goals.

(3) The division shall establish licensing goals for New Jersey residents. The division shall make good faith efforts to meet these goals. Qualifications for licensure shall be directly and demonstrably related to the operation of a marijuana establishment, provided that the division shall make licenses available to as diverse a group as possible, including, but not limited to, requirements that no license of any kind shall be issued to:

(a) A person under the legal age to purchase marijuana items;

(b) A person doing business as a sole proprietor who has not lawfully resided in the State for at least two years prior to applying to receive a license;

(c) A partnership, employee cooperative, association, nonprofit corporation, or corporation unless formed under the laws of this State, and unless all of the members thereof are qualified to obtain a license;

(d) A person whose place of business is conducted by a manager or agent, unless the manager or agent possesses the same qualifications required of the licensee;

(e) Should the division choose to establish criteria for licensure related to an applicant’s criminal history, it shall not consider convictions under paragraphs (3) and (4) of subsection a. of N.J.S. 2C:35-10, paragraphs (11) and (12) of subsection b. of N.J.S. 2C:35-5, subparagraph (b) of paragraph (10) of subsection b. of N.J.S.2C:35-5, or similar offenses.

(4) The division shall establish licensing goals for minority owned and female owned business as these terms are defined in section 3 of P.L. 1983, c.482 (C. 52:32-19). The Division shall analyze the number of licenses issued in each county and compare that analysis to the number of qualified minority owned and female owned businesses that applied in each county. The Division shall make good faith efforts to meet the goals it establishes for the licensure of minority owned and female owned businesses;

(5) Security requirements for marijuana establishments;

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

(a) All licensees and licensee representatives, before selling or serving marijuana or marijuana products to any person about whom there is any reasonable doubt of the person’s having reached the legal age to purchase marijuana items, shall require such person to produce one of the following pieces of identification:

(i) The person’s passport.

(ii) The person’s motor vehicle driver’s license, whether issued by New Jersey or by any other state, provided the license displays a picture of the person.

(iii) A New Jersey identification card issued by the New Jersey Motor Vehicle Commission.

(iv) A United States military identification card.

(v) A photographic identification card issued by a New Jersey county clerk.

(vi) Any other identification card issued by a state 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 marijuana establishment shall employ persons under the legal age to purchase marijuana items nor shall any marijuana retailer allow persons under the legal age to purchase marijuana items from entering or remaining on the premises of a marijuana retailer unless accompanied by a parent or legal guardian;

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

(7) Labeling and packaging requirements for marijuana items sold or distributed by a marijuana establishment, including, but not limited to, requirements that:

(a) Packaging and branding rules which prevent marketing of marijuana items and marijuana paraphernalia to people under the legal age to purchase marijuana items, including, but not limited to, rules that prohibit any statement, illustration, or image that:

(i) Includes false statements;

(ii) Promotes over-consumption;

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

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

(b) Ensure marijuana items are packaged in child-resistant containers;

(c) Marijuana items warning labels adequately inform consumers about safe marijuana 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) An ingredient list that includes, but is not limited to, all ingredients used to manufacture the marijuana product 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 or not the cannabis was grown using all-organic materials and a complete list of all nonorganic pesticides, fungicides and herbicides used during the cultivation of the cannabis;

(vii) Serving size, the total number of servings, and a statement regarding the percentage of THC contained in the marijuana 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 marijuana, and the total amount of active THC in this product is X mg.” Serving sizes are recommended to be individually wrapped.

(viii) Warning labels that include, but are not limited to, one or more of the following:

-- “This product contains marijuana.”

-- “This product is infused with marijuana”

-- “This product is intended for use by adults 21 years and 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 marijuana.”

(e) Labeling rules mandate the source of the marijuana items, including, but not limited to, the license number of the marijuana cultivation facility where the marijuana used to produce the marijuana item was grown, the license number of the marijuana product manufacturing facility that produced the marijuana item; and the license number of the marijuana retailer that sold the marijuana item and the production batch and lot numbers of the marijuana items.

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

(a) Establish accreditation and licensure criteria for marijuana testing facilities;

(b) The division issues licenses for a sufficient number of marijuana testing facilities, if those facilities meet the requirements for licensure, in order to ensure testing of marijuana items produced and sold in the State;

(c) Every licensed marijuana cultivation facility and marijuana product manufacturing facility must submit representative samples of marijuana and marijuana products to marijuana testing facilities for inspection and testing to certify compliance with health, safety, and potency standards adopted by the division on a schedule set by the division. Any sample remaining after testing shall be destroyed or returned to the licensee;

(d) Prescribe methods of producing, processing, and packaging marijuana items; conditions of sanitation; safe handling requirements; approved pesticides and pesticide testing requirements; and standards of ingredients, quality, and identity of marijuana items produced, processed, packaged, or sold by marijuana establishments;

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

(f) Provide that no licensed marijuana establishment or employee of a marijuana establishment shall consume, or allow to be consumed, any marijuana items on the establishment’s premises, except as otherwise permitted by the division;

(g) Set appropriate dosage, potency, and serving size limits for marijuana and other marijuana products, provided that a standardized serving of marijuana shall be no more than 10 milligrams of active THC and no individual edible retail product unit for sale shall contain more than 100 milligrams of active THC, and that marijuana and marijuana product packaging prevent children from access;

(h) Require that each single standardized serving of marijuana in a multiple-serving edible marijuana 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 marijuana must be easily separable to allow an average person 21 years of age and over to physically separate, with minimal effort, individual servings of the product;

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

(j) Establish screening, hiring, training and supervising requirements for retail store employees and others who manufacture or handle marijuana items;

(k) Promote general sanitary requirements for the handling, storage, and disposal of marijuana items, and the maintenance of marijuana establishments;

(l) Provide for rigorous auditing, inspection, and monitoring of marijuana establishments for compliance with health and safety rules and regulations;

(m) Require the implementation of security requirements for retail outlets and premises where marijuana items are produced or processed, and safety protocols for marijuana establishments and their employees;

(n) Prescribe reasonable restrictions on the manner, methods, and means by which, licensees shall transport marijuana items within the State; and

(o) Establish procedures for identification, seizure, confiscation, destruction, or donation to law enforcement for training purposes of all marijuana or marijuana products produced, processed, sold, or offered for sale within this State which do not conform in all respects to the standards prescribed by this chapter or the rules adopted to implement and enforce these chapters.

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

(a) Restrict advertising of marijuana items and marijuana paraphernalia in ways that target or are designed to appeal to individuals under the legal age to purchase marijuana items, including, but not limited to depictions of a person under 21 years of age consuming marijuana, 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) Marijuana retailers shall not display any signage in a window, on a door, or on the outside of the premises of a marijuana retailer that is visible to the general public from a public right-of-way, other than a single sign no larger than one thousand six hundred square inches identifying the retail outlet by the licensee’s business trade name;

(c) No licensed marijuana establishment shall advertise any marijuana items or marijuana paraphernalia on television, radio or internet between the hours of 6:00am and 10:00pm.

(d) No licensed marijuana establishment shall engage in advertising unless it has reliable evidence than no more than 20 percent of the audience for the advertisement is reasonably expected to be under the legal age to purchase marijuana items.

(e) No licensed marijuana establishment may engage 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;

(f) No licensed marijuana establishment may sponsor a charitable, sports, musical, artistic, cultural, social, or other similar event or engage in advertising at or in connection with such an event unless it 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 marijuana items;

(g) All advertisements must contain warnings, including but not limited to one or more of the following:

(i) “This product contains marijuana;”

(ii) “Marijuana can impair concentration, coordination, and judgment. Do not operate a vehicle or machinery under the influence of this drug;”

(iii) “There may be health risks associated with the consumption of this product;”

(iv) “For use only by adults 21 years of age and older. Keep out of the reach of children.”

(v) “This product was produced without regulatory oversight for health, safety or efficacy.”

(vi) “The intoxicating effects of this product may be delayed by two or more hours.”

(vii) “There may be health risks associated with the consumption of this product, including for women who are pregnant, breastfeeding, or planning on becoming pregnant.”

(viii) No licensed marijuana establishment shall place or maintain, or cause to be placed or maintained an advertisement of marijuana items or marijuana paraphernalia in any form or through any medium whatsoever within 200 feet of an elementary or secondary school grounds, recreation center or facility, arcade, child care center, public park, playground, public swimming pool or library; on or in a public transit vehicle or public transit shelter; on or in publicly owned or operated property. For the purposes of this section, a noncommercial message shall not be considered an advertisement. This section also shall not apply to advertisements within the premises of a marijuana retailer.

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

(11) Procedures for the division to conduct announced and unannounced visits to marijuana establishments to make, or cause to be made, such investigations as it shall deem proper in the administration of P.L. ,c. (C. )(pending before the Legislature as this bill) and any and all other laws which may hereafter be enacted concerning marijuana, or the manufacture, distribution or sale thereof, or the collection of taxes thereon, including the inspection and search of 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 division shall be authorized, after adequate notice to the owner or the agent of the owner, to make an examination of the books and may at any time make an examination of the premises of any person licensed under P.L. ,c. (C. )(pending before the Legislature as this bill) for the purpose of determining compliance with this act and the rules of the division. The division shall not require the books of any licensee to be maintained on the premises of the licensee.

(b) The division may, at any time, examine the books and records of any marijuana producer, and may appoint auditors, investigators and other employees that the division considers necessary to enforce its powers and perform its duties.

(c) During any inspection of a licensed premises, the division may require proof that a person performing work at the premises is 21 years of age or older. If the person does not provide the division with acceptable proof of age upon request, the division may require the person to immediately cease any activity and leave the premises until the division receives acceptable proof of age.

(d) The division 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) (i) the obligation of every marijuana producer to keep a complete and accurate record of all sales of marijuana flowers, marijuana leaves, and immature marijuana plants, and a complete and accurate record of the number of marijuana flowers produced, the number of ounces of marijuana leaves produced, the number of immature marijuana plants produced, and the dates of production; and

(ii) the obligation of every marijuana establishment to keep a complete and accurate record of all sales of marijuana, and a complete and accurate record of the number of ounces of marijuana items sold, provided that marijuana retailers shall not retain personally identifying information about persons 21 years of age who or older who purchase marijuana or marijuana products in marijuana retailers. Such records shall be kept and maintained for two years. The records shall be in such form and contain such other information as the division may require.

(b) The division may, at any time, but with adequate notice, examine the books and records of any marijuana establishment, and may appoint auditors, investigators, and other employees that the division considers necessary to enforce its powers and duties as described in P.L. , c. (C. ) (pending before the Legislature as this bill).

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

(a) On a schedule determined by the division, every licensed marijuana producer and processor must submit representative samples of marijuana, useable marijuana, or marijuana-infused products produced or processed by the licensee to an independent, third-party testing laboratory meeting the accreditation requirements established by the division, for inspection and testing to certify compliance with standards adopted by the division. Any sample remaining after testing shall be destroyed by the laboratory or returned to the licensee.

(b) Licensees must submit the results of this inspection and testing to the division on a form developed by the division.

(c) If a representative sample inspected and tested under this section does not meet the applicable standards adopted by the division, the entire lot from which the sample was taken must be destroyed.

(14) Establishing the number of marijuana retailers:

(a) Assuming there are sufficient qualified applicants for licensure, there shall be at least one marijuana retail store per county.

(b) A determination of the maximum number of marijuana retailers that may be licensed in each local governmental entity, taking into consideration:

(i) population distribution, provided that the division shall consider seasonal fluctuations in the population of the county and shall ensure that there are adequate licensed premises to serve the market demands of the county during the peak seasons;

(ii) the provision of adequate access to licensed sources of useable marijuana and marijuana products to discourage purchases from the illegal market;

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

b. In order to ensure that individual privacy is protected, the division shall not require a consumer to provide a marijuana retailer with personal information other than government-issued identification to determine the consumer’s age, and a marijuana retailer shall not be required to acquire and record 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 pursuant to subsection a. of this section, but prior to the commencement of the application process, the division shall conduct a series of information sessions in every county in New Jersey to educate New Jerseyans about the responsibilities, opportunities, requirements, obligations, and processes for application for a license to operate a marijuana establishment. The division shall conduct an appropriate number of information sessions in each county considering the population of each county, but no fewer than two information sessions in each county. The division shall publicize the day, time, location, and agenda of these information sessions broadly through television, radio, internet, print, and through local agencies.

d. The division shall:

(i) Examine available research, and may conduct or commission new research or convene an expert task force, to investigate the influence of marijuana on the ability of a person to drive a vehicle and on the concentration of delta-9 tetrahydrocannabinol in a person's blood, in each case taking into account all relevant factors; and

(ii) Present the results of the research to the Legislature and make recommendations to the Legislature regarding whether any amendments to the rules and regulations adopted by the division are appropriate.

9. (New section) Tracking system. a. The division shall develop and maintain a system for tracking the transfer of marijuana items between licensed premises.

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

(1) Preventing the diversion of marijuana items to criminal enterprises, gangs, cartels and other states;

(2) Preventing persons from substituting or tampering with marijuana items;

(3) Ensuring an accurate accounting of the production, processing and sale of marijuana items;

(4) Ensuring that taxes are collected for the purpose of being distributed as described in section 10 of P.L. , c. (C. )(pending before the Legislature as this bill);

(5) Ensuring that laboratory testing results are accurately reported; and

(6) Ensuring compliance with the rules and regulations adopted under the provisions of P.L. , c. (C. )(pending before the Legislature as this bill), and any other law of this State that charges the division with a duty, function or power related to marijuana.

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

(1) The propagation of immature marijuana plants and the production of marijuana by a marijuana producer;

(2) The processing of marijuana by a marijuana processor;

(3) The receiving, storing and delivering of marijuana items by a marijuana wholesaler;

(4) The sale of marijuana items by a marijuana retailer to a consumer;

(5) The purchase and sale of marijuana items between licensees;

(6) The transfer of marijuana items between licensed premises;

(7) The collection of taxes imposed upon the retail sale of marijuana items and

(8) Any other information that the division determines is reasonably necessary to accomplish the duties, functions and powers of the division.

10. (New section) Taxation.

a. There shall be a tax levied upon marijuana or marijuana products sold or otherwise transferred by a marijuana retailer to a person 21 years of age or older at a rate of seven percent. To encourage early participation in and development of marijuana establishments and to undermine the illegal marketplace, the tax shall escalate annually over a three year period: such that in year one following the enactment of P.L. , c. (C. )(pending before the Legislature as this bill), the excise tax shall be seven percent; and in year two, the tax shall be 10 percent; and in year three, the tax rate shall be 15 percent; and in year four the tax rate shall be 20 percent and in year five and beyond, the tax shall be 25 percent.

b. The division shall regularly review the tax levels established under this section and make recommendations to the Legislature as appropriate regarding adjustments that would further the goals of discouraging use, particularly by those under the age of 21; undercutting illegal market prices; and maximizing taxation revenue.

c. Statements as to quantities sold. At such periods to be established by the Department of the Treasury, but no more than once per calendar month, every marijuana producer shall file with the Division of Taxation in the Department of the Treasury a statement of the quantities of marijuana flowers, marijuana leaves, and immature marijuana plants sold by the marijuana producer during the preceding period.

d. Estimate by Division of Taxation when statement not filed or false statement filed. If any marijuana producer fails, neglects, or refuses to file a statement required by subsection c. of this section or files a false statement, the Department of the Treasury shall estimate the quantities of marijuana flowers, marijuana leaves, and immature marijuana plants sold by the marijuana producer and assess the taxes thereon. The marijuana producer shall be estopped from complaining of the quantities so estimated.

e. Lien created by the tax. The tax required to be paid by this section constitutes a lien upon, and has the effect of an execution duly levied against, any and all property of the marijuana retailer, attaching at the time the marijuana flowers, marijuana leaves, and immature marijuana plants subject to the tax were sold, and remaining until the tax is paid. The lien created by this section is paramount to all private liens or encumbrances.

f. The Department of the Treasury shall establish procedures for the collection of all taxes levied.

No tax established by this section shall be levied upon marijuana intended for sale at medical marijuana centers pursuant to the “New Jersey Compassionate Use Medical Marijuana Act,” P.L.2009, c.307 (C.24:6I-1 et seq.).

g. The tax revenue shall be collected by the Director of the Division of Taxation and shall be deposited by the Director of the Division of Taxation into the nonlapsing fund established pursuant to section 38 of P.L., c. (C. ) (pending before the Legislature as this bill), and shall be used to fund the Division of Marijuana Enforcement, except that during the first year the tax is collected one percent shall be allocated to the local governmental entity in which the marijuana establishment is located; during year two, two percent shall be allocated to the local governmental entity in which the marijuana establishment is located; and in year three and each subsequent year thereafter, three percent shall be allocated to the local governmental entity in which the marijuana establishment is located.



11. (New section) Local governmental entity regulation or ordinance.

a. Not later than one year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), each local governmental entity shall enact an ordinance or regulation specifying the entity within the local governmental entity that is responsible for processing applications submitted for a license to operate a marijuana establishment within the boundaries of the local governmental entity and for the issuance of such licenses should the issuance by the local governmental entity become necessary because of a failure by the Division to adopt regulations or because of a failure by the Division to process and issue licenses.

b. A local governmental entity may enact ordinances or regulations, not in conflict with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill):

(1) governing the time, place, manner, and number of marijuana establishment operations;

(2) establishing procedures for the issuance, suspension, and revocation of a license issued by the local governmental entity;

(3) establishing a schedule of annual operating, licensing, and application fees for marijuana establishments, provided, the application fee shall only be due if an application is submitted to a local governmental entity in accordance with the provisions section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill) and a licensing fee shall only be due if a license is issued by a local governmental entity; and

(4) establishing civil penalties for violation of an ordinance or regulation governing the time, place, and manner of a marijuana establishment that may operate in such local governmental entity.

c. A local governmental entity may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or marijuana retailers through the enactment of an ordinance. The failure of a local governmental entity to enact an ordinance prohibiting the operation of a marijuana establishment within one year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall thereby permit the operation of a marijuana retail establishment within the local governmental entity for a period of five years, at the end of which five year period, and every five year period thereafter, the local governmental entity shall again be permitted to prohibit the operation of a marijuana establishment.

12. (New section) Application. a. Each application for an annual license to operate a marijuana establishment shall be submitted to the division. A separate license shall be required for each location at which a marijuana establishment seeks to operate. Renewal applications may be filed up to 90 days prior to the expiration of the establishment’s license. The division shall:

(1) begin accepting and processing applications one year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) immediately forward a copy of each application to the local governmental entity in which the applicant desires to operate the marijuana establishment;

(3) upon the approval of a license application and collection of the annual license fee, issue an annual license to the applicant between 45 and 90 days after receipt of an application unless the division finds the applicant is not in compliance with regulations enacted pursuant to the provisions of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) or the division is notified by the relevant local governmental entity that the applicant is not in compliance with ordinances and regulations made pursuant to the provisions of section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill) and in effect at the time of application, provided, where a local governmental entity has enacted a numerical limit on the number of marijuana establishments and a greater number of applicants seek licenses, the division shall solicit and consider input from the local governmental entity as to the local governmental entity’s preference or preferences for licensure; and

(4) upon denial of an application, notify the applicant in writing of the specific reason for its denial.

b. If the division does not issue a license to an applicant within 90 days of receipt of the completed application filed pursuant to subsection a. of this section, and does not notify the applicant of the specific reason for its denial, in writing and within such time period; or, if the division has adopted regulations pursuant to subsection a. of section 8 of P.L. ,c. , (C. ) (pending before the Legislature as this bill) and has accepted applications pursuant to subsection a. of this section but has not issued any licenses 90 days after one year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the applicant may resubmit its application directly to the local governmental entity, and the local governmental entity may issue an annual license to the applicant unless the local governmental entity has enacted an ordinance prohibiting the operation of a marijuana establishment. A local governmental entity issuing a license to an applicant shall do so within 90 days of receipt of the resubmitted application unless the local governmental entity finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations in effect at the time the application is resubmitted. The local governmental entity shall notify the division if an annual license has been issued to the applicant. If an application is submitted to a local governmental entity under this subsection, the division shall forward to the local governmental entity the application fee paid by the applicant to the division upon request by the local governmental entity. A license issued by a local governmental entity in accordance with this subsection shall have the same force and effect as a license issued by the division and the holder of such license shall not be subject to regulation or enforcement by the division during the term of that license. A subsequent or renewed license may be issued under this subsection on an annual basis only upon resubmission to the local governmental entity of a new application submitted to the division.

c. If the division does not adopt regulations required by subsection a. of section 8 of P.L. ,c. , (C. ) (pending before the Legislature as this bill), an applicant may submit an application directly to a local governmental entity one year following the effective date of P.L. , c. , (C. ) (pending before the Legislature as this bill), and the local governmental entity may issue an annual license to the applicant. A local governmental entity issuing a license to an applicant shall do so within 90 days of receipt of the application unless it finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations in effect at the time of application and shall notify the division if an annual license has been issued to the applicant. A license issued by a local governmental entity in accordance with this subsection shall have the same force and effect as a license issued by the division and the holder of such license shall not be subject to regulation or enforcement by the division during the term of that license. A subsequent or renewed license may be issued under this subsection on an annual basis if the division has not adopted regulations required by section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) at least 90 days prior to the date upon which such subsequent or renewed license would be effective.

d. No employee of the division shall have any interest, directly or indirectly, in the producing, processing, or sale of marijuana, marijuana products, or marijuana paraphernalia, or derive any profit or remuneration from the sale of marijuana, marijuana products, or marijuana paraphernalia, other than the salary or wages payable to him or her in respect of his or her position, or receive any gratuity from any person in connection with the application for a license or the sale of marijuana, marijuana products, or marijuana paraphernalia.

13. (New section) A marijuana producer must have a Class 1 Marijuana Cultivation Facility license (Marijuana Producers license) issued by the division for the premises at which the marijuana is produced. The division shall determine the maximum number of licenses but, providing there exist qualified applicants, shall issue a sufficient number of licenses to meet the production demands that implementation of P.L. , c. (C. ) (pending before the Legislature as this bill) requires.

A person who has been convicted of a crime involving any controlled dangerous substance or controlled substance analog as set forth in chapter 35 of Title 2C of the New Jersey Statutes except paragraph (4) of subsection a. of N.J.S.2C:35-10, or any similar law of the United States or any other state shall not be issued a Class 1 Marijuana Cultivation Facility license, unless such conviction occurred after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and was for a violation of federal law relating to possession or sale of marijuana for conduct that is authorized under P.L. , c. (C. ) (pending before the Legislature as this bill).

a. To hold a production license under this section, a marijuana producer:

(1) Must apply for a license in the manner described in section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) Must provide proof that an applicant listed on an application submitted under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), has been a resident of this State for two or more years, and must provide proof that the applicant is 21 years of age or older;

(3) Must meet the requirements of any rule or regulation adopted by the Division under subsection b. of this section; and

(4) Must undergo a criminal history record background check.

(a) Pursuant to this provision, the director is authorized to exchange fingerprint data with and receive criminal history record background information from the Division of State Police and the Federal Bureau of Investigation consistent with the provisions of applicable federal and State laws, rules, and regulations. The Division of State Police shall forward criminal history record background information to the director in a timely manner when requested pursuant to the provisions of this section.

(b) An applicant shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations. No check of criminal history record background information shall be performed pursuant to this section unless the applicant has furnished his written consent to that check. An applicant who refuses to consent to, or cooperate in, the securing of a check of criminal history record background information shall not be considered for a production license. An applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check.

(c) The director shall not approve an applicant for a Class 1 Marijuana Cultivation facility license (Marijuana Producers license) if the criminal history record background information of the applicant reveals any disqualifying conviction.

(d) Upon receipt of the criminal history record background information from the Division of State Police and the Federal Bureau of Investigation, the director shall provide written notification to the applicant of his qualification for or disqualification for a Class 1 Marijuana Cultivation Facility license.

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

(e) The Division of State Police shall promptly notify the director in the event that an individual who was the subject of a criminal history record background check conducted pursuant to this section is convicted of a crime or offense in this State after the date the background check was performed. Upon receipt of that notification, the director shall make a determination regarding the continued eligibility to hold a Class 1 Marijuana Cultivation Facility license (Marijuana Producers license).

b. The division shall adopt rules that:

(1) Require a marijuana producer to annually renew a license issued under this section;

(2) Establish application, licensure, and renewal of licensure fees for marijuana producers;

(3) Require marijuana produced by marijuana producers to be tested in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(4) Require marijuana producers to submit, at the time of applying for or renewing a license under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), a report describing the applicant’s or licensee’s electrical and water usage; and

(5) Require a marijuana producer to meet any public health and safety standards, industry best practices, and all applicable regulations established by the division by rule or regulation related to the production of marijuana; or the propagation of immature marijuana plants and the seeds of the plant Cannabis family Cannabaceae. The division may not limit the number of immature marijuana plants that may be possessed by a marijuana producer licensed under this section; the size of the grow canopy a marijuana producer licensed under this section uses to grow immature marijuana plants; or the weight or size of shipments of immature marijuana plants made by a marijuana producer licensed under this section.

c. Fees adopted under subsection b. of this section:

(1) Shall be in the form of a schedule that imposes a greater fee for premises with more square footage or on which more mature marijuana plants are grown; and

(2) Shall be deposited in the Marijuana Control and Regulation Fund established under section 38 of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. The director shall issue a Class 1 Marijuana Cultivation Facility license if it finds that issuing such a license would be consistent with the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill) and the requirements of this section are met and the information contained in the application has been verified. The director shall approve or deny an application within 60 days after receipt of a completed application. The denial of an application shall be considered a final agency decision, subject to review by the Appellate Division of the Superior Court. The director may suspend or revoke a license to operate as a Class 1 Marijuana Cultivation Facility for cause, which shall be subject to review by the Appellate Division of the Superior Court.

e. A person who has been issued a license pursuant to this section shall display the license at the premises at all times when marijuana is being produced.

f. A licensee shall report any change in information to the Director not later than 10 days after such change, or the license shall be deemed null and void.

14. (New section) a. Subject to subsection b. of this section, the division shall adopt rules or regulations restricting the size of mature marijuana plant grow canopies at premises for which a license has been issued under section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. In adopting rules under this subsection, the division shall:

(1) Limit the size of mature marijuana plant grow canopies for premises where marijuana is grown outdoors and for premises where marijuana is grown indoors in a manner calculated to result in premises that produce the same amount of harvested marijuana leaves and harvested marijuana flowers, regardless of whether the marijuana is grown outdoors or indoors.

(2) Adopt a tiered system under which the permitted size of a marijuana producer’s mature marijuana plant grow canopy increases at the time of licensure renewal, except that the permitted size of a marijuana producer’s mature marijuana plant grow canopy may not increase following any year during which the division disciplined the marijuana producer for violating a provision of or a rule adopted under a provision of P.L. , c. (C. ) (pending before the Legislature as this bill).

(3) Take into consideration the market demand for marijuana items in this state, the number of persons applying for a license under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), and to whom a license has been issued under section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill), and whether the availability of marijuana items in this State is commensurate with the market demand.

c. This section shall not apply to a premises for which a license has been issued under section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill), if the premises is used only to propagate immature marijuana plants.

15. (New section) A marijuana processer must have a Class 1 Marijuana Product Manufacturing Facility license (Marijuana Processor license) issued by the division for the premises at which the marijuana is produced. The division shall determine the maximum number of licenses but, providing there exist qualified applicants, shall issue a sufficient number of licenses to meet the production demands that implementation of P.L. , c. (C. ) (pending before the Legislature as this bill) requires.

A person who has been convicted of a crime involving any controlled dangerous substance or controlled substance analog as set forth in chapter 35 of Title 2C of the New Jersey Statutes except paragraph (4) of subsection a. of N.J.S.2C:35-10, or any similar law of the United States or any other state shall not be issued a Class 1 Marijuana Product Manufacturing Facility license, unless such conviction occurred after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and was for a violation of federal law relating to possession or sale of marijuana for conduct that is authorized under P.L. , c. (C. ) (pending before the Legislature as this bill).

a. To hold a processing license under this section, a marijuana processer:

(1) Must apply for a license in the manner described in section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) Must provide proof that an applicant listed on an application submitted under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), has been a resident of this State for two or more years, and must provide proof that the applicant is 21 years of age or older;

(3) Must meet the requirements of any rule or regulation adopted by the division under subsection b. of this section; and

(4) Must undergo a criminal history record background check.

(a) Pursuant to this provision, the Director is authorized to exchange fingerprint data with and receive criminal history record background information from the Division of State Police and the Federal Bureau of Investigation consistent with the provisions of applicable federal and State laws, rules, and regulations. The Division of State Police shall forward criminal history record background information to the commissioner in a timely manner when requested pursuant to the provisions of this section.

(b) An applicant shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations. No check of criminal history record background information shall be performed pursuant to this section unless the applicant has furnished his written consent to that check. An applicant who refuses to consent to, or cooperate in, the securing of a check of criminal history record background information shall not be considered for a processing license. An applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check.

(c) The director shall not approve an applicant for a Class 1 Marijuana Product Manufacturing Facility license if the criminal history record background information of the applicant reveals any disqualifying conviction.

(d) Upon receipt of the criminal history record background information from the Division of State Police and the Federal Bureau of Investigation, the director shall provide written notification to the applicant of his qualification for or disqualification for a Class 1 Marijuana Product Manufacturing Facility license.

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

(e) The Division of State Police shall promptly notify the director in the event that an individual who was the subject of a criminal history record background check conducted pursuant to this section is convicted of a crime or offense in this State after the date the background check was performed. Upon receipt of that notification, the director shall make a determination regarding the continued eligibility to hold a Class 1 Marijuana Product Manufacturing Facility license (Marijuana Processers license).

b. The division shall adopt rules that:

(1) Require a marijuana processer to annually renew a license issued under this section;

(2) Establish application, licensure, and renewal of licensure fees for marijuana processers;

(3) Require marijuana produced by marijuana processers to be tested in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(4) Require marijuana processers to submit, at the time of applying for or renewing a license under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill) a report describing the applicant’s or licensee’s electrical and water usage; and

(5) Require a marijuana processer to meet any public health and safety standards, industry best practices, and all applicable regulations established by the division by rule or regulation related to the processing of marijuana.

c. Fees adopted under subsection b. of this section:

(1) Shall be in the form of a schedule that imposes a greater fee for premises with more square footage; and

(2) Shall be deposited in the Marijuana Control and Regulation Fund established under section 38 of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. The Director shall issue a Class 1 Marijuana Product Manufacturing Facility license if it finds that issuing such a license would be consistent with the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill) and the requirements of this section are met and the information contained in the application has been verified. The director shall approve or deny an application within 60 days after receipt of a completed application. The denial of an application shall be considered a final agency decision, subject to review by the Appellate Division of the Superior Court. The director may suspend or revoke a license to operate as marijuana production facility for cause, which shall be subject to review by the Appellate Division of the Superior Court.

e. A person who has been issued a license pursuant to this section shall display the license at the premises at all times when marijuana is being produced.

f. A licensee shall report any change in information to the director not later than 10 days after such change, or the license shall be deemed null and void.

16. (New section) A marijuana wholesaler must have a Class 2 Marijuana Wholesaler license issued by the division for the premises at which the marijuana is warehoused. The division shall determine the maximum number of licenses but, providing there exist qualified applicants, shall issue a sufficient number of licenses to meet the wholesaler demands that implementation of this act requires.

A person who has been convicted of a crime involving any controlled dangerous substance or controlled substance analog as set forth in chapter 35 of Title 2C of the New Jersey Statutes except paragraph (4) of subsection a. of N.J.S.2C:35-10, or any similar law of the United States or any other state shall not be issued a Class 2 Marijuana Wholesaler license, unless such conviction occurred after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and was for a violation of federal law relating to possession or sale of marijuana for conduct that is authorized under P.L. , c. (C. ) (pending before the Legislature as this bill).

a. To hold a Marijuana Wholesaler license under this section, a marijuana wholesaler:

(1) Must apply for a license in the manner described in section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) Must provide proof that an applicant listed on an application submitted under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), has been a resident of this State for two or more years, and must provide proof that the applicant is 21 years of age or older;

(3) Must meet the requirements of any rule or regulation adopted by the Division under subsection b. of this section; and

(4) Must undergo a criminal history record background check.

(a) Pursuant to this provision, the director is authorized to exchange fingerprint data with and receive criminal history record background information from the Division of State Police and the Federal Bureau of Investigation consistent with the provisions of applicable federal and State laws, rules, and regulations. The Division of State Police shall forward criminal history record background information to the director in a timely manner when requested pursuant to the provisions of this section.

(b) An applicant shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations. No check of criminal history record background information shall be performed pursuant to this section unless the applicant has furnished his written consent to that check. An applicant who refuses to consent to, or cooperate in, the securing of a check of criminal history record background information shall not be considered for a wholesalers license. An applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check.

(c) The director shall not approve an applicant for a Class 2 Marijuana Wholesaler license if the criminal history record background information of the applicant reveals any disqualifying conviction.

(d) Upon receipt of the criminal history record background information from the Division of State Police and the Federal Bureau of Investigation, the director shall provide written notification to the applicant of his qualification for or disqualification for a Class 2 Marijuana Wholesaler license.

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

(e) The Division of State Police shall promptly notify the director in the event that an individual who was the subject of a criminal history record background check conducted pursuant to this section is convicted of a crime or offense in this State after the date the background check was performed. Upon receipt of that notification, the Director shall make a determination regarding the continued eligibility to hold a Marijuana Wholesaler license.

b. The division shall adopt rules that:

(1) Require a marijuana wholesaler to annually renew a license issued under this section;

(2) Establish application, licensure, and renewal of licensure fees for marijuana wholesalers;

(3) Require marijuana warehoused by marijuana wholesalers to be tested in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(4) Require marijuana wholesalers to submit, at the time of applying for or renewing a license under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), a report describing the applicant’s or licensee’s electrical and water usage; and

(5) Require a marijuana wholesaler to meet any public health and safety standards, industry best practices, and all applicable regulations established by the division by rule or regulation related to the warehousing of marijuana.

c. Fees adopted under subsection b. of this section:

(1) Shall be in the form of a schedule that imposes a greater fee for premises with more square footage; and

(2) Shall be deposited in the Marijuana Control and Regulation Fund established under section 38 of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. The director shall issue a Class 2 Marijuana Wholesaler license if it finds that issuing such a license would be consistent with the purposes of this act and the requirements of this section are met and the information contained in the application has been verified. The director shall approve or deny an application within 60 days after receipt of a completed application. The denial of an application shall be considered a final agency decision, subject to review by the Appellate Division of the Superior Court. The Director may suspend or revoke a Marijuana Wholesaler license for cause, which shall be subject to review by the Appellate Division of the Superior Court.

e. A person who has been issued a license pursuant to this section shall display the license at the premises at all times when marijuana is being warehoused.

f. A licensee shall report any change in information to the director not later than 10 days after such change, or the license shall be deemed null and void.

17. (New section) A marijuana retailer must have a Class 3 Marijuana Retailer license issued by the division for the premises at which the marijuana is retailed. The division shall determine the maximum number of licenses but, providing there exist qualified applicants, shall issue a sufficient number of licenses to meet the wholesaler demands that implementation of P.L. , c. (C. ) (pending before the Legislature as this bill) requires.

A person who has been convicted of a crime involving any controlled dangerous substance or controlled substance analog as set forth in chapter 35 of Title 2C of the New Jersey Statutes except paragraph (4) of subsection a. of N.J.S.2C:35-10, or any similar law of the United States or any other state shall not be issued a Class 3 Marijuana Retailer license, unless such conviction occurred after the effective date of this act and was for a violation of federal law relating to possession or sale of marijuana for conduct that is authorized under P.L. , c. (C. ) (pending before the Legislature as this bill).

a. To hold a retailers license under this section, a marijuana retailer:

(1) Must apply for a license in the manner described in section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) Must provide proof that an applicant listed on an application submitted under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), has been a resident of this State for two or more years, and must provide proof that the applicant is 21 years of age or older;

(3) Must meet the requirements of any rule adopted by the Division under subsection b. of this section; and

(4) Must undergo a criminal history record background check.

(a) Pursuant to this provision, the director is authorized to exchange fingerprint data with and receive criminal history record background information from the Division of State Police and the Federal Bureau of Investigation consistent with the provisions of applicable federal and State laws, rules, and regulations. The Division of State Police shall forward criminal history record background information to the director in a timely manner when requested pursuant to the provisions of this section.

(b) An applicant shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations. No check of criminal history record background information shall be performed pursuant to this section unless the applicant has furnished his written consent to that check. An applicant who refuses to consent to, or cooperate in, the securing of a check of criminal history record background information shall not be considered for a retailers license. An applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check.

(c) The director shall not approve an applicant for a Class 3 Marijuana Retailer license if the criminal history record background information of the applicant reveals any disqualifying conviction.

(d) Upon receipt of the criminal history record background information from the Division of State Police and the Federal Bureau of Investigation, the director shall provide written notification to the applicant of his qualification for or disqualification for a Class 3 Marijuana Retailers license.

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

(e) The Division of State Police shall promptly notify the director in the event that an individual who was the subject of a criminal history record background check conducted pursuant to this section is convicted of a crime or offense in this State after the date the background check was performed. Upon receipt of that notification, the director shall make a determination regarding the continued eligibility to hold a Marijuana Retailers license.

b. The division shall adopt rules that:

(1) Require a marijuana retailers to annually renew a license issued under this section;

(2) Establish application, licensure, and renewal of licensure fees for marijuana retailers;

(3) Require marijuana sold by marijuana retailer to be tested in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(4) Require marijuana retailers to submit, at the time of applying for or renewing a license under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), a report describing the applicant’s or licensee’s electrical and water usage; and

(5) Require a marijuana retailer to meet any public health and safety standards, industry best practices, and all applicable regulations established by the division by rule related to the sale of marijuana.

c. Fees adopted under subsection b. of this section:

(1) Shall be in the form of a schedule that imposes a greater fee for premises with more square footage; and

(2) Shall be deposited in the Marijuana Control and Regulation Fund established under section 38 of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. The director shall issue a Class 3 Marijuana Retailer license if it finds that issuing such a license would be consistent with the purposes of this act and the requirements of this section are met and the information contained in the application has been verified. The director shall approve or deny an application within 60 days after receipt of a completed application. The denial of an application shall be considered a final agency decision, subject to review by the Appellate Division of the Superior Court. The director may suspend or revoke a Marijuana Retailer license for cause, which shall be subject to review by the Appellate Division of the Superior Court.

e. A person who has been issued a license pursuant to this section shall display the license at the premises at all times when marijuana is being warehoused.

f. A licensee shall report any change in information to the director not later than 10 days after such change, or the license shall be deemed null and void.

18. (New section) A marijuana transporter must have a Class 4 Marijuana Transportation license issued by the division. The division shall determine the maximum number of licenses but, providing there exist qualified applicants, shall issue a sufficient number of licenses to meet the transportation demands that implementation of P.L. , c. (C. ) (pending before the Legislature as this bill) requires.

A person who has been convicted of a crime involving any controlled dangerous substance or controlled substance analog as set forth in chapter 35 of Title 2C of the New Jersey Statutes except paragraph (4) of subsection a. of N.J.S.2C:35-10, or any similar law of the United States or any other state shall not be issued a Class 4 Marijuana Transportation license, unless such conviction occurred after the effective date of this act and was for a violation of federal law relating to possession or sale of marijuana for conduct that is authorized under P.L. c. , (C. ) (pending before the Legislature as this bill).

a. To hold a transportation license under this section, a marijuana transporter:

(1) Must apply for a license in the manner described in section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) Must provide proof that an applicant listed on an application submitted under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), has been a resident of this State for two or more years, and must provide proof that the applicant is 21 years of age or older;

(3) Must meet the requirements of any rule adopted by the division under subsection b. of this section; and

(4) Must undergo a criminal history record background check.

(a) Pursuant to this provision, the director is authorized to exchange fingerprint data with and receive criminal history record background information from the Division of State Police and the Federal Bureau of Investigation consistent with the provisions of applicable federal and State laws, rules, and regulations. The Division of State Police shall forward criminal history record background information to the director in a timely manner when requested pursuant to the provisions of this section.

(b) An applicant shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations. No check of criminal history record background information shall be performed pursuant to this section unless the applicant has furnished his written consent to that check. An applicant who refuses to consent to, or cooperate in, the securing of a check of criminal history record background information shall not be considered for a transportation license. An applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check.

(c) The director shall not approve an applicant for a Class 4 Marijuana Transportation license if the criminal history record background information of the applicant reveals any disqualifying conviction.

(d) Upon receipt of the criminal history record background information from the Division of State Police and the Federal Bureau of Investigation, the director shall provide written notification to the applicant of his qualification for or disqualification for a Class 4 Marijuana Transportation license.

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

(e) The Division of State Police shall promptly notify the director in the event that an individual who was the subject of a criminal history record background check conducted pursuant to this section is convicted of a crime or offense in this State after the date the background check was performed. Upon receipt of that notification, the director shall make a determination regarding the continued eligibility to hold a Marijuana Transportation license.

b. The division shall adopt rules that:

(1) Require a marijuana transporter to annually renew a license issued under this section;

(2) Establish application, licensure, and renewal of licensure fees for marijuana transporters;

(3) Require marijuana that is transported by a Marijuana Transportation licensee to be tested in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(4) Require marijuana transporter to submit, at the time of applying for or renewing a license under section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), a report describing the applicant’s or licensee’s electrical and water usage; and

(5) Require a marijuana transporter to meet any public health and safety standards, industry best practices, and all applicable regulations established by the division by rule related to the transporting of marijuana.

c. Fees adopted under subsection b. of this section:

(1) Shall be in the form of a schedule that imposes a greater fee for premises with more square footage; and

(2) Shall be deposited in the Marijuana Control and Regulation Fund established under section 38 of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. The director shall issue a Class 4 Marijuana Transportation license if it finds that issuing such a license would be consistent with the purposes of this act and the requirements of this section are met and the information contained in the application has been verified. The director shall approve or deny an application within 60 days after receipt of a completed application. The denial of an application shall be considered a final agency decision, subject to review by the Appellate Division of the Superior Court. The director may suspend or revoke a Marijuana Transportation license for cause, which shall be subject to review by the Appellate Division of the Superior Court.

e. A person who has been issued a license pursuant to this section shall display the license at the premises at all times when marijuana is being warehoused.

f. A licensee shall report any change in information to the director not later than 10 days after such change, or the license shall be deemed null and void.

19. (New section) Marijuana handlers. a. An individual who performs work for or on behalf of a person who holds a license under P.L. , c. (C. ) (pending before the Legislature as this bill) shall have a valid permit issued by the division under this section if the individual participates in:

(1) the possession, securing, or selling of marijuana items at the premises for which the license has been issued; or

(2) the recording of the possession, securing, or selling of marijuana items at the premises for which the license has been issued.

b. A person who holds a license under P.L. , c. (C. ) (pending before the Legislature as this bill) shall verify that an individual has a valid permit issued under this section before allowing the individual to perform any work described in subsection a. of this section at the premises for which the license has been issued.

c. The division shall issue permits to qualified applicants to perform work described in this section. The division shall adopt rules and regulations establishing the qualifications for performing work described in this section, the terms of a permit issued under this section; procedures for applying for and renewing a permit issued under this section; and reasonable application, issuance and renewal fees for a permit issued under this section.

d. The division may require an individual applying for a permit under this section to successfully complete a course, made available by or through the division, in which the individual receives training on checking identification; detecting intoxication; handling marijuana items; statutory an